2008-07-08MOUND CITY COUNCIL MINUTES
JULY 8, 2008
The City Council of the City of Mound, Minnesota, met in regular session on Tuesday,
July 8, 2008, at 7:30 p.m. in the council chambers of city hall.
Members present: Acting Mayor David Osmek; Councilmembers Mike Specht, John
Beise and Greg Skinner
Members absent: Mayor Mark Hanus
Others present: City Manager Kandis Hanson, City Clerk Bonnie Ritter, Community
Development Director Sarah Smith, Police Chief Jim Kurtz, Fire Chief Greg Pederson,
Finance Director Catherine Pausche, City Engineer Dan Faulkner, Terry Bovee, John
Hubler
Consent agenda: All items listed under the Consent Agenda are considered to be
routine in nature by the Council. There will be no separate discussion on these items
unless a Councilmember or citizen so requests, in which even will be remove from the
Consent Agenda and considered in normal sequence.
1. Open meeting
Acting Mayor Osmek called the meeting to order at 7:30 p.m.
2. Pledge of Allegiance
3. Approve agenda
MOTION by Beise, seconded by Specht to approve the agenda. All voted in favor.
Motion carried.
4. Consent agenda
MOTION by Beise, seconded by Specht to approve the consent agenda. Upon roll call
vote, all voted in favor. Motion carried.
A. Approve minutes of June 24, 2008
B. Approve payment of claims in the amount of $292,463.48
C. RESOLUTION NO. 08-66: RESOLUTON AUTHORIZING THE MOUND
POLICE DEPARTMENT TO ASSIST THE CITY OF ST. PAUL DURING THE
2008 REPUBLICAN NATIONAL CONVENTION
D. Approve Pay Request No. 11 from Graham Penn-Co. in the amount of
$39,427.19 for the Transit Center Parking Facility
E. Approve Pay Request No. 1 from S.M. Hentges & Sons in the amount of
$123,343.42 for the 2008 Street Improvement Project (No. PW-08-01)
F. Approve Pay Request No. 1 from Ramsey Excavating in thea mount of
$104,262.50 for Auditors Road Street Extension (No. PW-08-06)
G. Approve Pay Request No. 2 from G.L. Contracting, inc. in the amount of
$56,634.62 for Auditors Road Utilities Reconstruction (No. PW-05-07)
H. Approve Pay Request No. 4 from Kusske Construction in the amount of
$7,479.35 for 2007 Storm Drainage Improvements (No. PW-07-04)
Mound City Council Minutes -July 8, 2008
I. RESOLUTION NO. 08-67: RESOLUTION ACCEPTING BID FOR THE
WILSHIRE BOULEVARD SANITARY FORCEMAIN AND WATERMAIN
IMPROVEMENTS (PW-08-07)
J. RESOLUTION NO. 08-68: RESOLUTION IDENTIFYING THE NEED FOR
LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT FUNDING AND
AUTHORIZING AN APPLICATION FOR GRANT FUNDS
5. Comments and suggestions from citizens present on anv item not on the
agenda. None were offered.
6. Wellhead Protection Plan Public Information Meeting Re: Approved Part 1.
Plan Request for Council Authorization to Proceed with Part 2.
Terry Bovee from the MN Department of Health, presented an overview of the Wellhead
Protection Plan that covers production wells #8 and #3, with #7 being aback-up. Part
one of the plan is completed and it is now time to proceed with part two.
MOTION by Specht, seconded by Beise to received Part 1 and give authorization to
proceed with Part 2 of the City's Wellhead Protection Plan. All voted in favor. Motion
carried.
7. Discussion on 2009 Budget
Hanson reviewed the budget process that starts in June and goes to final adoption in
December. Pausche reviewed the general fund budget parameters, revenue
assumptions (based on 3.9% levy increase) and expenditure assumptions (based on 5%
growth/year) and what is necessary to maintain a 20% undesignated fund balance.
John Hubler, 5816 Grandview Blvd, approached the Council with a challenge to take a
fresh approach to the budget this year and instead of forecasting expenditures, go to
Department Heads and has them for ideas on how to reduce their budgets by 10%. He
offered ideas for budget reduction i.e., not idling vehicles, outsourcing some services,
and removal of non-productive personnel.
Osmek asked the Council what they would like to see for an undesignated fund balance
and levy increase, along with their opinions on the franchise fees.
Beise stated that he would like to see the fund balance at 20%, the levy increase at 3%,
and keep the franchise fee issue on the table for consideration in the future.
Skinner doesn't want to see the fund balance go below 20%, the levy increase at the cap
of 3.9%, and also keep the franchise fees as are now and look at in the future.
Specht would like to see zero increase but after seeing the forecasted numbers, agreed
with 3.9%. He also stated that the tax capture rate may have to be reduced. He also
wants the fund balance at 20%, and is not opposed to maintaining the franchise fees but
doesn't want the fees to increase.
Osmek stated that Hanus related to him earlier that a levy increase of 1.75% is a good
starting point and wants the fund balance in the 20% range. Osmek agreed with Hanus'
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Mound City Council Minutes -July 8, 2008
figure of 1.75% as a starting point for the levy increase and stated that the franchise fees
should sunset, as intended when they were implemented. He stated that labor is 70% of
the budget and each department should look where they can do labor reductions at the
administrative level. He wants to look at the feasibility of combining assistant duties
without significant reduction in services. He wants at least one position eliminated and
also wants to keep the Gillespie Center allocated funds in the budget.
Hanson noted that Pausche handed out a list of ideas for program reductions and stated
that there has been some brainstorming on staff reductions and requested a meeting
with the Council Personnel Committee to discuss this.
8. Miscellaneous/Correspondence
A. Comments/reports from Councilmembers -Hanson and Beise announced the
upcoming Spirit of the Lakes Festival and events.
B. Reports: Bolton & Menk -Engineering Project Status Report
9. Adiourn
MOTION by Specht, seconded by Beise to adjou
Motion carried. /
Attest: Bonnie Ritter, City Clerk
8:25 p.m. All voted in favor.
Mayor (Dy~iid Osmek