2018-10-16 Budget PacketPLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS.
1. Open Meeting
2. Approve agenda, with any amendments.
Page
3. Fire Chief Greg Pederson with update on the impact of Minnetonka Beach moving -
to Long Lake Fire
4. Discussion on the 2019 budget/5 year Capital Improvement Plan (CIP) update 1 - 14
(Pausche, Hoversten & Matt Bauman from Bolton & Menk)
5. John Colotti, Liquor Store Manager, discussing Municipal Liquor Operations 15-21
strategic goals and key performance indicators for 2019
6. Catherine Pausche, Director of Finance and Administration, discussing 22-28
proposed changes to the Docks & Commons Program for 2019
7. Catherine Pausche, Director of Finance and Administration, discussing 29-31
the elections budget for 2019
8. Council direction to Staff on how to proceed with preparing the final
budget, including the levy and utility rates, for consideration
at the December I 1 th final meeting of the year.
9. Adjourn
-e -
CITY OF MOUND
2415 WILSHIRE BOULEVARD • MOUND, MN 55364-1668 a PH: 952-472-0600 • FAX: 952-472-0620 • WWW.CITYOFMOUND.COM
DATE: October 11, 2018
TO: Mayor Wegscheid and Council Members
FROM: Catherine Pausche, Director of Finance & Admin Services
SUBJECT: 2019 Budget and Capital Improvement Plan (CIP) Update
Discussions on the Long Term Financial Plan (LTFP) took place at the October 17, 2017 and
April 17, 2018 Special Meeting Workshops that produced the following assumptions and
provided direction on financing future capital improvements:
Assume 2% increase to the total levy per year so that as general obligation bonds mature,
additional resources can be allocated to newly established capital reserve funds.
Create the following governmental capital reserve funds to provide for level funding as
capital investment needs are identified and prioritized and to reduce the need for future
bonding and/or special assessments:
o Fund 401 — Infrastructure Replacement Reserve Fund
o Fund 427 — Road Maintenance Fund
o Fund 403 — Capital Replacement Fund — Vehicles & Equip
o Fund 404 — Community Investment Fund (Parks & Open Spaces)
o Fund 405 — Capital Replacement Fund — City Buildings
Reduced streetlight and storm water fees for 2018, increase sewer fund fees 3% and
keeping rest flat for the next 5+ years. This will create deficits in the funds and the need
for additional bonds or interfund loans, but this is expected to be manageable as the level
of investment declines and the existing bonds mature.
Capital asset inventories continue to be worked on for vehicles, equipment, buildings, parks and
open spaces (working versions are included). As these needs are identified, further discussion
should take place on the funding sources, including liquor proceeds and dock funds. The
infrastructure improvement plans were provided through 2039 back in April and will continue to
be periodically updated for shifting needs and priorities and/or to bundle projects differently, if it
makes sense, and to adjust for inflation.
Interim discussions on infrastructure projects will focus on the next 5 years to ensure adequate
scrutiny takes place compared to the 10,000 foot level approach that comes with strategic
planning/LTFP.
Included in the packet is the Capital Improvement Plan (CIP) updated for 2019 — 2023 and its
corresponding impact on rates and fund balances. The assumptions continue to be a 2% total
levy increase and only the sewer rates will increase 3% for 2019. The final budget and levy will
be acted upon at the December 11, 2018 final meeting of the year.
OPERATING BUDGETS HAVE NOT BEEN INCLUDED IN THIS PACKET - PLEASE REFER TO THE
PACKET FROM THE SEPTEMBER 11, 2018 PRELIMINARY BUDGET DISCUSSION AND LET STAFF
KNOW IF YOU NEED ANY FURTHER INFORMATION AT THIS TIME.
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Parks and Open Spaces Commission Budget Plan Priorities
Caatial Budget Plan Priorities
Add 3 grills and picnic areas, enhance 2 existing at Surfside
Replace wooden play structure at Surfside
JayCees sunshade at Surfside (by others)
Create formal separation between launch area and beach at Surfside
Expand edibles activities at Three Points
Interpretation signs for edibles at Three Points
Priority
Funded 2018
Funded 2018
18 Ret Wall Pi
Ongoing
Ongoing
Complete
Complete
Steel fire ring at end of Crescent Park Trail
Improve screening at Lift Station, add back -screen for port -a -let at Philbrook Park
Picnic/bbq area at Philbrook
Sun Shade Structure at Philbrook Park
led w/ playgr<
Replace wooden play structure at Dundee Park
Replace wood perimeter edging at Dundee Play Structure
Replace wood play structure at Chester Park
Replace Repair Tennis Court at Swenson Park Pending MCE!
Shoreline Restoration at Bluffs Beach
Shoreline Restoration at Lost Lake
Replace wood play structure at Avon Park
Estimated Cost
17,500.00
30,000.00
5,000.00
8,000.00
75,000.00
(35000) 2019
5,000.00
3,000.00
500.00
TBD, O&M Effort
O&M Repair
200.00
500.00
2,500.00
7,000.00
8;888:88
30,000.00
2,000.00
30,000.00
14,000.00 19 O&M
5,000.00
TBD
30,000.00
Tree Sale
mj3;eted iR 2Q18
10,000.00
Surfside Interior Wall Repairs and Painting (Carpeted wall treatment removal)
6,000.00
1
Surfside Depot Kitchen/service Area Renewal
5,000.00
4
Surfside Depot Flooring Replacement with Vinyl Plank
10,000.00
2
Surfside Bathroom furnish/fixture renewal
4,000.00
3
Surfside mechanical Systems Replacement
5,000.00
8
Harbor District Greenway Improvements (dedication +) Study/Survey work
2019
15,000.00
P&I Bud
Forthcoming Construction Restoration:
..leted iA 70.10
Post -construction restoration at Swenson Park; leveling, topsoil, turf, b -ball ct,
r.leted iR 7017
tennis ct prep
2018
7010
140,000.00
NA
Relocate lift station at Avalon Park; leveling, topsoil, turf, Lakeshore restoration
r.leted iR
companion work
Purchases from Operations and Maintenance Budget
Priority
Estimated Cost
Trash Bin upgrades for more prominent locations with present barrel bins (collet
8 in 2019
500 ea x 8
5
Dog Ordinance Signage
2018/2019
30 ea x 100
6
Dog stations at high -use parks (Highland, Sorbo, Three Points, Swenson, Weiland)
350 ea x 16
7
NP—M
Ball Field Lime Amendments, 3 -yr cycle (Swenson, Philbrook, Tyrone, Three Points)
Play Ground Pad Mulch Amendments (2 -yr cycle)
Replace dead t.en at AlwiH D-.4 pleted G„�o
Re. lace .dead +ren at GFeceeRt Dart mpinm +., 220 -
Replace plantings and ground cover at C.R. 15 entry
Shade tree canopy at play areas
500 each
1500 each
New Community Amenities to Consider - locations TBD: Priority Estimated Cost
Dog Park??? Single or distributed locations? Doone wooded hill, fetch pen, agili 2019? 10,000.00 defered
Frisbee Golf Goals at various locations 200 ea, 1500 9 -pc
Canoe or kayak racks at park locations (through Dock Program)
Garden Plot areas
Activity amenities at Bluffs Park (Undeveloped) 5,000 - 30,000
Capital Equipment Needs:
Priority
Estimated Cost
Plug Aerator
1
2,000.00
Spike Aerator/rotary hoe
4
1,000.00
Thatch/heavy tine Rake
2
800.00
Drop Spreader
5
700.00
Broadcast Spreader
3
3,500.00
Tank Sprayer
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2415 WILSHIRE BOULEVARD a MOUND, MN 55364-1668 ° PH: 452-472-0600 ° FAX: 452-472-0620 • WWW.CITYOFMOUND.COM
DATE: October 11, 2018
TO: Mayor Wegscheid and Council Members
FROM: Eric Hoversten, City Manager
SUBJECT: Municipal Liquor Operations
Staff has been evaluating additional options on how to approach our municipal liquor
operations in light of changing environmental forces, including increased competition,
increases to minimum wage and other environmental factors, like the legislatures'
approval of Sunday sales.
A key resource in developing a new strategy has been the Minnesota Municipal
Beverage Association (MMBA/website http://municir)albev.com/). Members of the board
form a committee to meet with City Hall and Liquor Operations management to provide
feedback on liquor operations, both the retail side and back office. Attached is a list of
areas we identified in need of review with the ultimate objective to create a more
systematic approach to the business including a quantitative analysis of performance
(sales/gross profit by month and category, effectiveness of promotions and discounts,
optimal product mix, etc). In the past, too much emphasis was placed on sales growth
and customer counts, without enough emphasis on how productive those sales were
(profitability), whether we were holding on to inventory that was obsolete or just too
voluminous to be efficient. Increased competition will affect profit margins and therefore
operating costs as well, which are also under review.
In addition to the scope of the strategic review with MMBA, Liquor Store Manager John
Colotti has provided his first pass at a plan for 2019. The Long Term Financial Plan
developed in 2018 assumes the liquor operations will provide a minimum of $200K in
tax relief from 2019 onward. If you take non-cash depreciation out of the financials, the
2019 budget meets that goal and the objective will be to maintain and improve upon the
$200K going forward.
-15-
2415 WILSHIRE BOULEVARD • MOUND, MN 55364-1668 o PH: 952-472-0600 • FAX: 952-472-0620 a WWW.CITYOFMOUND.COM
DATE: October 11, 2018
TO: Mayor Wegscheid and Council Members
FROM: John Colotti, Liquor Store Manager
SUBJECT: 2019 Budget Discussion
The best place to start is forecasting 2019 gross sales. Currently we are basing our gross sales
predictions on the 2018 year-end. As we are all aware, 2018 sales will be falling short of our 2017
results, for various reasons, and falling short of our current budget forecasts. I am under the belief that
year- end gross sales for 2019 will fall somewhere between 2017 and 2018, so somewhere around
$3,000,000, realistically.
I will be basing the 2019 forecasts using a gross profit percentage of 26.00%. One of the most important
factors moving forward is to use that 26% gross profit as the absolute minimum expectation. A 26.24%
(from year-end 2017) will be the standard to target and surpass in 2019 and beyond.
Using our current sales forecast for 2019, the following would be the most likely scenarios:
Using the $3M sales forecast, with a gross profit of 26%, it would play out as follows: Gross profit of
$780,000 with operating costs of $607,922, resulting in a net profit of $187,078. However, if we are
able to work that gross profit % up by half a percent point, the net will increase by $15,000.
If our sales remain flat, let's say $2.9 million hypothetically, that extra half percentage point (or whole),
becomes all the more critical. Example: A 26% gross will net out at $146,078, and a 26.5% would bring
the net up to $160,578, up $14,500.
On the other side of this equation, the operating costs are where we can focus a little more attention,
specifically part-time payroll. If we were able to keep that expense below the budgeted $105,000, say
for example using last year's actual of $102,770, the $3.0 million forecast with a 26% gross would net
out at $174,308 rather than $172,078.
Now the question is: how do we raise that gross profit percentage? There are several ways to
accomplish this. Going forward, we have the ability to split deals with other municipal operations, so in
effect, we'll be getting the larger deals without the larger case commitment. Currently, the MMBA is
working on "chain pricing" which will be spread out among the 240 + municipals. Basically, we'll be
receiving deal pricing on case one. Secondly, our main in-store promotions have been discount driven.
Adjusting or eliminating events that are just basically discounting products that are going to be
purchased by our customers anyway. Third, we have been working closely with our P.O.S. vendor to
help assist us in creating reports that will take any guess -work regarding purchasing out of the picture.
We are currently in the early stages of utilizing these newly created reports, but are confident their
impact will be noticed soon.
I look forward to further discussion and input.
Liquor Store
Liquor For Resale
609-49750-36210
Interest Earnings
609-49750-36240
Refunds and Reimbursements
609-49750-37811
Liquor Sales -Off Sale
609-49750-37812
Beer Sales -Off Sale
609.49750-37813
Wine Sales -Off Sale
609-49750-37814
Taxable Mix& Misc.
609139750-37815
i':Other Wrchandise/Misc
TOTAL SALES
609-49750-251
Liquor For Resale
609-49750-252
Beer For Resale
609-49750-253
Wine For Resale
609-49750-254
Soft Drinks/Mix For Resale
509-49750-255
Misc Merchandise For Resale
609-49750-265
TOTAL COST OF SALES
GROSS PROFIT
GROSS PROFIT -%
'Liquor Store
156,861
609-49750-101
FT Empl Regular
609139750-103
Part -Time Employees
609-49750-113
Vacation Pay
609-49750-114
Holiday Pay
609-49750-115
Sick Pay
609-49750-121
'PERA
609-49750-122
FICA
609139750-131
Employer Paid Health
609-49750-133
Employer Paid Dental
609-49750-134
Employer Paid Life
609-49750-135
Emp Health Care Saving Plan
609-49750-137
LTD
609-49750-140
Unemployment Comp
609-49750-151
Workers Comp Insurance
24
Total Payroll Related
609-49750-200
Office Supplies
509-49750-202
Duplicating and copying supply
267 6 583 - 1,595 -$
N. 317 7,260 - 900964,081 1,003,399 998,250 1,077,966 1,033,501 950,000
1,131, 805 1, 144,5751 1,149, 500 1,180,135 1,178, 912 1,170, 000
_
804,354 821,345 $ 816,750 822,851 k 845,985 800,000
40,814 46,801, 60,500 46,994 79,508 80,000
23,697 i 30,391 - 30,938 : -
2,965,335a 3, 054, 3541 3,025,000 1 3,161, 379 € 3,137, 906 1 3,000,000 � -4.39%
722,576 743,750 754,723 76111221 775,126 712,500
851,796 885,136 871,311 933 473 907,762 877,500
554,293 580,122 570,563t 569,868F 600,650 560,000
24,134 26,850 32,037
9,793 12,0201 50,978 11,998 63 118 70 000
t_111__1-_1___ y�.-.., m. m
21,532 W ,. 221410 -� 21,423 4 -
2,184,124 2, 270, 2881 2,247,575 2, 329, 9211 2,346,656s 2,220,000g -5.40%
781,211 7_76,22_3 777,425
26.34%-25.48%k` 25.70%
130,361 124,034 151,798
84,988 100,814f 100,000
7,652 _12,093
7,067 5,015
4,1731 1 931-
17,415
17415 18 820 18,135
15,944 ep 17,179 _ 18,498
24,000 25,200 26,400
1,018 1,058 1,048
12 24 25
m
2,400 2 400 2,400
772 807 .. 25
184 887 2,00(
7,242-...6,690 7,70(
303,228 _ 316,952 328,021
1,804 2,120 2,00(
559 - 17340, 60(
828,9631 791, 2501 780,
26.24%r 25.22%1 26.(
133,123
156,861
160,774
102,770
105,000
105,000
13,455
7232
_
-2,477-,--
19,229 €
19,640
19,933
17,708
20,032
20,332
25,200
-25,800
~27,000
1,058
1,048
1,051
24
25
25
2,400
2,400
2,400
725
25
844
129
2,000
2,000
8, 057
8,100
8,100
333,587
340, 931
347,459
2,3261
2,200
2,200
187
6001
600
3.111%
1,911/1
;Liquor Store
609-49750-328Employment Advertising 2, 820 383 2,000 1,559 2,000 2,000
_.
609-49750-331 Use of personal auto 552 251 500 222 500 500
609149750-340 Advertising/Marketing 20,336 29,912 20,000 22,868 _ 20,000 20,000
`609-49750-351 Legal Notices Publishing 123 - 200 108 200 200
609-49750-361 General Liability Ins 27,2043 27,344 28,500 27,267 21,500 21,500
609-49750-381 ;Electric Utilities 18,682 19,914 17,000 19,869 17,000 20,000
!60949750-382 Water Utilities 636 697 600 759 600 800
609-49750-383 Gas Utilities 2,137 1, 933 _ 4,000 1,885 4,000 2, 500
gRepairs/Maintenance
ep ._ 00 . � mm _ 00
609-49750-400 Building Re airs/Mamtenance 10,273 4 271 8,000 13,244 8,000 8,000
609-49750-405 Depreciation Expense 36 320 36,992 36,992 36,992' 36,992 36,992
609.49750-412 Building Rentals 5 367 8,304 14,000 8,290 14,0001 12,000
6091497501430 `Miscellaneous (404) 110 125125 125
_«_..
609-49750-431 Meeting Expense (6) 54 300 131a 300 E, 300
609-497501433
fr
Dues and Subscriptions
1 650
1,825
2,000
1,780{
2.00
2,000
609-49750-434
Conference &Training
6K526
1,200
895j
1,2
1,20C
6091497501140
Other Contractual Services
4 888
10 799
9,000
7,173
11,0001
11 00C
1
t
609-49750-460
Janitorial Se v ces
5 692
6 289
3,500
3,042
3.5
3 50(
609-49750-485
Credit Card Charges
48,201 51 656
50 000
56,524
50,000
56 OOC
609-49750-500
Capital Outlay FA
p
2,799
428
609-49750-611
Bond Interest
5,266
_3_0_72
_ 696
509-49750-700
Transfers
59 493
57 405
125000
130 266
125 000
175 000
.............................. ......................... .............................. ............................................{.. ................... ...................... ...................... y, ............... .+1...�..:.y., ..w«....,.
jTOTAL EXP BEFORE TRANSFER: 548,257 € 577,722: 590,662E 593,161 { 596,570 € 604,922 1.40
................................................................................... ..................... .........
]CHANGE IN NET POSITION i 173,461 141,096 61,763 ; 105,536 69,680: 78 s
.................................E................................,..... _
AFTER TRANSFERS
:BEGINNING NET POSITION 863,055 1, 036, 516 1,177, 612 1,185, 455 1,290,991, 1,360,672
......................... €....................................................
i
:INCREASE ((DECREASE)INNET POSITION 173,461 141,096 61,763 1 105,536 69,680 78
f.......................................
t
................................ 5............. .,............................. . ...................................t................, ....,«.,.«.
:ENDING NET POSITION ? 1,036,516 r 1,177,612 1,239,375 1,290,991 4 1,360,672 1,360,750
............................... _
.................................. .................... ...........................fi...........................................,...,.......,.. . i........ ...,....
;UNRESTRICTED { E 266,530 411.555 K
IFA
.__.: it *.' 1. !
2415 WILSHIRE BOULEVARD • MOUND, MN 55364-1668 - PH: 952-472-0600 a FAX: 952-472-0620 - WWW.CITYOFMOUND.COM
Recognizing the many environmental challenges to the municipal liquor business,
including increases to minimum wage, Sunday sales, and competition from big box
vendors like Total Wine, we believe changes are necessary to the way we operate.
The City has requested an MMBA "Outreach" to give feedback on the following
areas:
SALES & MARKETING
HWS benefits from our proximity to Jubilee Foods and not being near major retail
corridors (ie. Convenience!). The store enjoyed stable growth in revenues and
healthy gross profit percentages for many years, but starting in 4Q17, there has
been a slight decline in sales, perhaps due to customers becoming more price
sensitive as big box discount vendors enter the market.
The store's discount and promotional programs have been in place for many years
and are highlighted in the attached annual report to the City Council. We believe
the average ticket during some of these events is declining and that they may be
losing appeal. The City is looking for fresh ideas for a marketing strategy
including (1) how to make promotions and discount programs more effective, (2)
what new programs to consider (exp. frequent buyer clubs and/or delivery), (3)
use of advertising and social media, and (4) how to measure the effectiveness of
these initiatives.
Another component is maintaining the store's upscale image for quality and
service. The `new' store is 15 years old and a refresh is probably in order to ensure
we are maximizing customer experience via an intuitive and efficient store layout,
pleasing aesthetics, prominently displaying the high performing products and not
hanging on to the obsolete/stale inventory.
PAYROLL MANAGEMENT
The store is staffed by a full-time manager and assistant manager and
approximately 7 part-time liquor store clerks (some key holders/leads). Part-time
wages increased 35% from $78K in 2013 to $105K budgeted for 2018. City is
looking for options with staffing models for full and part-time staff and for
measurements that demonstrate (1) staffing correlates more closely with customer
counts/industry benchmarks, and (2) multi -tasking is taking place/operational
efficiencies are increased.
sUIIN
INVENTORY MANAGEMENT
We are looking for best management practices and key operating indicators for
inventory and product management. We implemented Keystroke point of sale in
2016 hoping that it would make ordering and inventory management more efficient
and reduce our financial risk. We would like a better understanding on how to
maximize the potential of the POS system, specifically when it comes to the
reporting, including:
A. Are there "exception reports" that identify stagnant/obsolete inventory or
product that have low inventory turnover (ie. haven't sold in any significant volume
in awhile, yet we have QTY on hand). Not just a complete dump of data, but
showing items that have not sold in XX months or low turnover
B. Are there reports that can help us identify our staples/must have (things
that we buy and sell almost on autopilot) vs the seasonal, promotional, trending,
necessary to show selection, but all of which carry a bit more risk and need to be
managed more closely. How can we determine the `do or die' timeline for
trending/seasonal products in order to reduce the financial risk?
C. What information is available in the POS to help determine buy -points
based on sales volume and how to evaluate volume discounts offered by the
distributors and the corresponding trade-offs on gross profit?
D. Innovative inventory disposal options that increase visibility of
stale/slow moving product and pricing strategies that minimize impact on G.P.
E. We need to define targets for inventory: total inventory on hand and
reduction progress targets considering vendor re -supply rates, store set up, etc.
John will be looking into joint purchasing with Delano muni in order to
reduce the impacts on Gross Profit from purchasing less. Can MMBA assist... i.e.
buying bulletin board?
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2415 WILSHIRE BOULEVARD • MOUND, MN 55364-1668 ° PH: 952-472-0600 • FAX: 952-472-0620 ^ WWW.CITYOFMOUND.COM
DATE: October 11, 2018
TO: Mayor Wegscheid and Council Members
FROM: Catherine Pausche, Director of Finance and Administrative Services
SUBJECT: Discussion on Potential Changes to the Docks & Commons Program
The Docks and Commons Commission has discussed a variety of issues pertaining to Chapter 78
of the Mound City Code. The Commission will meet again in November to review a draft memo
it will recommend to the Council (for approval at the Nov 27 regular meeting) to be sent with the
annual license renewal application to inform participants of proposed changes to be discussed by
the Commission at its January 17, 2019 meeting.
Because these changes have financial implications and the workshop format provides for more
informal discussion before formal language is developed, Staff is looking for preliminary
feedback on the following issues:
A. Discussion on managing BSU count
The City of Mound is licensed for a maximum of 590 Boat Storage Units (BSUs) from the
LMCD which is based on the total amount of City owned shoreline. Some of that shoreline is
wetlands, so dock sites are concentrated in the usable shoreline, with the majority of dock
locations having 30 — 35 feet of width. The LMCD leaves it to the City to regulate how the
BSUs are allocated among the sites, but it should be noted the LMCD allows only two watercraft
for mostrp ivate dock sites and up to a maximum of 4 based on total shoreline. The City Code is
silent on the guaranteed number of BSUs available to each dock type, and Staff believes the code
should designate maximum guaranteed watercraft in order to equitably manage increasing
demand going forward with the popularity of jet skis, increased affluence, etc.
Below is the current allocation of BSUs and the goal will be to determine how to allocate the
BSUs between abutting sites, non -abutting sites and multiple -slip sites in order to set a
"guaranteed" allocation by type (example is provided assuming 2 per abutting and 1 per non-
abutting/slip sites). Once that is determined, work will continue to determine how to
allocate/manage `surplus' BSUs in any given year:
-22-
Actual - 2028
Guaranteed Example
Description
Total
Abutter -Non
Abutter
Total Abutter
\on Abutter
Sites per Nlap
305
167
138
First Boat
285
152
133
167
138'
Second Boat - SI-LARE
20
2
18
Second Boat - SELF
80
62
18
167
Third Boat
24
204
Fourth Boat
4
4
0
Fifth Boat
1
1
0
xftAtiple Slip
106
0
106
106
TOTAL BSUs
520
241
2713
578 334
244
-22-
As you may recall, starting in 2018, non -abutters are required to moor a watercraft at their dock
site to optimize utilization of the program. Some participants moored an unmotorized canoe or
rowboat to meet the requirement. Discussion continues with the LMCD on which of these
vessels actually count against the BSUs, which is based generally on the length and where they
are stored. An option to keep dock sites for motorized watercraft would be for the City to offer
kayak/canoe/paddle board storage racks in designated parks and commons. Staff suggests a pilot
program for the 2019 season at Carlson Park which would involve a simple storage rack (cost to
be determined — see picture in Exhibit A) with renters paying a suggested $50 for the season and
also being responsible for securing the vessel.
B. Discussion on Dock Use Area including winter storage & maintenance
The introduction of aquatic invasive species is driving the demand for boat and jet-ski lifts.
Dock structures have also increased in size as the popularity of U shaped docks and use of dock
canopies/boat covers has increased. The LMCD Dock Use Area regulations for private
shoreline include 10' side setbacks for docks with 0 — 50 feet of linear frontage (5' for dock sites
in existence before 1970), and 20' side set -backs if a dock canopy is used. The LMCD only
enforces side set -backs where the commons meets private shoreline and not within the commons
themselves.
The Docks and Commons commission has discussed whether the rules for Dock Use Area
should be different for Abutting and Non -Abutting sites and whether it should differ based on the
type of commons (steet-ends, bluff, flat shoreline, etc). Staff invites initial feedback on the
following items under review:
• Require all lifts to be store on private property over the winter, not commons for both
abutter and non -abutters — may require a service to transport
• Grandfather/restrict use of dock canopies and only allow lift canopies (see exhibit A) for
non -abutters (and possibly abutters?) — should this depend on type of commons?
• Should non -abutting docks be straight only or when should L or U shape docks be
allowed — should some kind of side set -back be enforced? — should any of this also apply
to abutting sites?
• Winter storage of dock materials on commons is dependent on maintaining ROW/winter
access to lake — some abutters complain about site -lines and traversability. Should a
maximum area per site for storage be established or will the no lifts on commons resolve?
• Lifts currently not allowed at multiple slips because no where to store, concerns about
enforcing getting them out in time for slip removal in fall — solutions may arise from the
requirement to store lifts on private property for dock sites as well.
C. Discussion on fees and long-term capital plan
A list of the current fee structure is attached in Exhibit B. The fees were increased essentially
$25 across the board in 2014 and nothing since. The Docks and Commons commission has
questioned if the fee structure makes sense and if things like additional watercraft or shares
should be discounted to the extent that they are. Additional work needs to be done on the long-
term capital plan including the cost of dredging and shoreline and multiple slip maintenance, but
Staff would also like to explore if the fees can be used to support a broader scope of
improvements, possibly related to parks. That answer will drive future needs of the program and
what corresponding changes to the fees are necessary.
Please let me know if you have any questions or need any other information in advance of
Tuesday's discussion.
-23-
EXHIBIT A: PICTURES
Tonka Bay Canoe/Kayak/Paddle Board Storage Rack - $50 per season
Dock Cover/Boat House vs. Lift Canopy
-24-
=145,111011 10, 1 0
L L
DOCKS:
U-101 Non-refundable processing fee for wait lisi
78-102
Application
$20.00/yr
78-101
Processing fee for full dock refunds
$50-00
78-101
Late dock license application fee on or after
$175-00/yr
March 13t (abutters only)
$50-00/mo-
78-101
Late dock license application fee for applications received
78-104
Te6een March 1st and March 313t (non -abutters only)
$100
78-101
dock fee that includes primary watercraft (1 boat)
$325.00/yr
78-101
Each secondary watercraft
$1 00.00/yr.
78-101
Sailboat mooring
$325-00/yr
78-101
Appurtenances on public lands benefiffin.q specific
$375.00/yr
78-101
license holders - special assessment for a portion of the
$15.00
78-101
cost;;s_ determined by the City Council
$100.00/yr
78-103
Shared dock application —filed on or after
$1,148.00/yr
78-101
March 1st
$25-00
78-102
Temporary Visiting Dockage Permit — up to
21 days
$50°00
78-103
Shared dock (Secondary Site Holder Fee)
$175-00/yr
LMCD charge (based on boat length)
Set by LMCD
LMCD charge (no boat) Minimum as set by LMCD
78-104
Penalty fee for undeclared boat at dock (license holder)
$100.00
78-104
Penalty for undeclared boat at a slip (license holder)
$100-00
78-104
Penalty for illegally mooring boat to dock or slip
$100.00
78-101
Multiple Slip Fee
$375.00/yr
78-101
Multiple Slip LMCD Fee
$15.00
78-101
Small watercraft slip fee
$100.00/yr
78-101
Lost Lake Slips Multiple (Villas on Lost Lake Residents)
$1,148.00/yr
78-101
Lost Lake Slips Multiple (to Mound residents who are not
Lost Lake residents)
$1,950.00/yr-
78-101
Lost Lake Slips Multiple (to Non -Mound residents)
$2,050.00/yr
78-101
Lost Lake Slips Multiple (After August V of the year)
$1,0001yr
78-101
Lost Lake Slips LMCD
$18.75
78-101
Multiple Slip Refundable Key Deposit
$50.00
78-101
Processing fee for full slip refund
$50.00
78-101
Processing fee for voluntary suspension of license
$50.00
78-101
Penalty for boat at slip after October 15t" deadline
$100.00
-25-
The following is a Synopsis of the LMCD dock and boat storage rules for residential
0 s properties.
For a full cop Z of the rules please see Chapter 2 of the LMCD Code or call the LMCD office,
No person shall use any area of the lake outside an authorized "dock use area (DUA)", for
docks, moorings, watercraft, storage, swimming floats, ski jump storage, or diving towers unless
specifically permitted.
DUA pert c
ith (measured from the 929.4 NGVD)
The length of a dock use area is equal to the property shoreline frontage width, with a
maximum of 100 foot dock length.
Sites in existence on February 5, 1970 with a lake frontage of 40-60 feet may have a
dock extending up to 60 feet into the lake.
Sites in existence on February 5, 1970 with lake frontage of 40 feet or less may extend to
reach a water depth of 4 feet (not to extend beyond 60 feet).
DUA Width portion within setbacks measured from extended side property lines into the lake.
For that portion of the length or authorized dock use area which extends from the shore:
0 - 50 feet 110 foot setback
50 - 100 feet J 15 foot setback
ICanopies require a 20 -foot setback from the extended property line]
❖ Side opening slip (Boat parked parallel to shore) setback shall be at least equal to the slip
depth (not less than20 feet).
❖ Lots with 50 feet or less of shoreline in existence on February 2, 1970, qualify for a 5 foot
setback, providing it in no way impairs access to neighboring docks.
Dock Structure
4- May exceed 8 feet, excluding posts, in either is length or width, but not both.
-.t, Permanent docks require a permit from the LMCD.
Page 1 of 3
-26-
No person shall use any area of the lake outside of an authorized dock use area for docks,
moorings, watercraft, storage, swimming floats, ski jump storage, or diving towers unless
specifically permitted.
Restricted Watercraft Definition - any boat or vessel for use on or stored on the public waters
of the Lake, except for unrestricted watercraft as defined below.
Number of Restricted Watercraft Allowed:
2 restricted watercraft may be moored or docked within a dock use area for most lots.
4 restricted watercraft may be moored or docked within a dock use area provided all the
following conditions are met:
➢ single family residential structure on the lot
> All restricted watercraft moored or docked at any dock or mooring facility
must be owned by and registered to persons who live in the residential
structure.
5 or more may be docked or moored provided there is 50' of shoreline at the lot for each
restricted watercraft. A lot with 5 or more restricted watercraft must have a multiple dock
license with the LIVICID.
Unrestricted Watercraft Definition - any boat or vessel for use on, or stored on the public
waters of the lake which is:
16 feet or less in length and non -motorized; or
16 feet or less in length and which uses a motor of 10 horsepower or less; or
20 feet or less in length, non -motorized, and which is propelled solely by human power.
Number of Unrestricted Watercraft Allowed:
Residents can have any number of unrestricted watercraft within the dock use
area.
4.'- Residents should check with their city for any additional restrictions to the above.
Page 3 of 3
mum
2415 WILSHIRE BOULEVARD • MOUND, MN 55364-1668 . PH: 952-472-0600 • FAX: 952-472-0620 • WWW.CITYOFMOUND.COM
DATE: October 11, 2018
TO: Mayor Wegscheid and Council Members
FROM: Catherine Pausche, City Manager
SUBJECT: Elections Budget for 2019 & Discussion on Council Vacancies
Due to the fact that Council Member Ray Salazar is running unopposed for the Mayor's office
and his term does not expire until 12-31-2020, the City anticipates the need to fill a vacancy for
the remaining two years of his term. In 2013, Council Member David Osmek was elected to the
Minnesota State Senate during the middle of his term on the Council, and a replacement was
appointed to fill the vacancy instead of holding a special election. The 2013 process was as
follows:
A notice was published in the Laker requesting candidates to fill the vacant seat and requiring
them to submit a brief written application. A Special Meeting was held to conduct the first
round of interviews of the 7 candidates and each one was brought in one at a time for 20
minutes each (with the City Manager giving a two minute warning when the twenty minutes
were up). Council Members took turns asking questions of their choosing (they were
instructed that questions were wide open and that they did not have to ask the exact same
questions of each candidate). Council Members rated them from 1-3 with 3 being their
favorite choice on a tally sheet. The City Manager tallied the votes and announced the three
finalists who were then considered equal once again and invited to interview at the next
regular Council meeting when the same process was conducted with the top vote getter being
appointed to fill the remainder of the term.
The City currently has 5 candidates running for two open seats on the Council. One candidate
published in The Lakeshore Weekly News that they no longer intend to run for the Council due to
time constraints. If that individual is one of the top two vote getters and they do not take office,
the City will have a second vacancy for a four-year term. In that event, the City can also appoint
a replacement to fill the vacancy until the next General Election in 2020, which will be a
"Special Election" for the remaining two years of the term. This is similar to Tina Smith's
appointment to the US Senate after AI Frankin's resignation and now is on the 2018 ballot for
the remaining two years of the four-year term.
The alternative to appointing people to fill the vacancy is to hold a special election sometime in
2019, which requires additional resources and cost. The attachment describes what that process
entails. The key to note with this option is that the Council still has to appoint people to fill the
vacancies until the special election is held, so the aforementioned process, or some version
thereof, would still need to be followed. Staff is looking for direction on what options the
Council would like to consider and will amend the budget accordingly.
-29-
2415 WILSHIRE BOULEVARD • MOUND, MN 55364-1668 ^ PH: 952-472-0600 a FAX: 952-472-0620 a WWW.CITYOFMOUND.COM
Special Election Costs and Procedures
MN statute (205.10) allows for Special Elections to be held on only five prescribed dates a year. Those
dates are, the second Tuesday in February, the second Tuesday in April, the second Tuesday in May, the
second Tuesday in August, or the first Tuesday after the first Monday in November.
MN Statute (412.02) states; "a vacancy in an office shall be filled by council appointment until an
election is held as provided in this subdivision. If the vacancy occurs before the first day to file affidavits
of candidacy for the next regular city election and more than two years remain in the unexpired term, a
special election shall be held at or before the next regular city election and the appointed person shall
serve until the qualification of a successor elected at a special election to fill the unexpired portion of the
term."
A special election held concurrently with the 2020 General Election would need no additional planning or
staffing than would typically happen during a city -run election. If the Council calls for a special election
prior to the next General Election in 2020, the following procedures and costs will need to be addressed:
• As with any City election, the City will need to post and publish the particulars of the election.
• Staff time will be devoted to organize and supervise election activities (Admin & Parks)
o Parks delivery of equipment to the polling places
o Absentee voting at City hall
o Voting Equipment Testing
o Coordination with Hennepin County Elections
• The City will need to staff volunteer election judges at each of the four precincts.
o Minimum of four election judges per precinct is required by statute
o Five judges would provide the minimum amount of staffing sufficient to run a precinct
o $663.04 in 2019 for four head judges estimated 64 hours of polling place supervision
o $2,366.40 for 20 election judges estimated 240 working hours at the polls
• There will be cost associated with the printing of ballots and other supplies at each precinct.
o $80041,000 for printing costs of 4,000 to 5,000 ballots at $0.195/ballot
The City could hold the special election in one combined polling place such as the Council Chambers. In
this scenario, the Council would need to issue a Resolution to establish polling places for 2019 which
names the Council Chambers as the sole polling place. The City would reduce Election Judge expenses
with a combined polling place as only seven judges would need to staff the election at around $1,200.00.
If there were to be another special in 2019 for another office (such as State Rep), either on the City's
chosen date or not, that election would also have to held at the combined polling place as the City can
only set polling places once per year.
Other considerations:
• Possible confusion regarding polling places for the 2020 election as the Council is required to
issue a resolution to re-establish the four current precincts at the end of 2019
• The combined polling place would still need four ballot counters; one for each precinct
• The City is required to send postcards to every registered voter in Mound notifying voters of the
polling place changes:
0 2019 cost for postcards - $2,000.00
0 2020 cost for postcards - $2,000.00
Incremental out of pocket cost to City for Special Election (excludes regular Staff time/opportunity cost):
If held at four precincts (24 Judges, no mailing): $5,000.00 plus
If held at combined polling place (7 Judges + 2 mailings): $6,000.00 plus
-30-
101111410-102
F T Empl Overtime
10141410-103
;Part -Time Employees
101111410-121
PERA
101111410-122
�FICA
101-41410-131
Employer Paid Health
10141410-133
Employer Paid Dental
101-41410-135
'Employer Health Care Saving PI
101.41410-137
LTD
101-41410-200
`Office Supplies
101-41410-202
Duplicating and copying supply
101-41410-210
Operating Supplies
10141410-300
Professional Sivs
101-41410-322
Postage`
101-41410-331
Use of personal auto
101-41410-351
Legal Notices Publishing
101-41410-404
`Machinery/Equip Repairs/Maint
101111410430
Miscellaneous
101-41410-431
Meeting Expense
Total
490
37
37
90
5
12
50
50
100
185
200§
.. .- . .a ..._.
94 `>
. _ .
300„
772,
1,000.
8,314,
9,000`
2; 411 50
545 400 60C
8; 101 —�
100
289 —
. M
300;
2,23Z 3,890 2,500:
1,896 2,5M 2,500
190
200
57
100
2,242, 14,977, 2,550 :; 2,441 14,800: 3,100 -79.05%1
-31 -