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2012-12-03 CC Minutes WorkshopNbertville Samil T ALBERTVILLE CITY COUNCIL WORKSHOP Monday, December 3, 2012 APPROVED MINUTES ALBERTVILLE CITY HALL 1. CALL TO ORDER/ROLL CALL Acting Mayor Vetsch called the meeting to order at 6:42 p.m. 6:42 P.M. Present: Council members Jillian Hendrickson, Larry Sorensen, John Vetsch and Dan Wagner Mayor Mark Meehan and Absent: None Others Present: Interim City Administrator Robert Thistle, City Engineer/Public Works Director Adam Nafstad, City Attorney Michael Couri, City Planner Alan Brixius, and City Clerk Kimberly Olson 2. PURCHASING PROCEDURES Thistle reported that he has reviewed policies from other cities and has put together a set of procedures for purchasing, essentially documenting what the City is currently doing. It sets limits for staff purchases. Department heads may purchase up $1,000 and anything must get permission from the Finance Director for anything between $1,000 and $2,500. Since the Administrator is the purchasing agent for the City, the Administrator may make purchases up to $5,000 without City Council approval. Council could change that limit if they wish to do so. Thistle stated this is really a guide for City staff while making purchases. Thistle discussed the different types of purchasing such as price agreements, emergency purchasing, disaster purchasing and use of credit cards. Meehan asked if there was a limit set on credit cards and what they are used for. Nafstad stated that it is a low limit amount on the cards and they are generally used for small purchases that cannot be paid by check or signing up for conferences. MAPublic Data\City Council\Council Minutes\2012 Minutes\City Council\M 12 03 2012 Workshop.doc City of Albertville Page 2 of 3 City Council Workshop Minutes December 3, 2012 Nafstad stated there is a purchasing section in the City Code and they would need some minor updates to move forward. 3. EVALUATION FORMAT AND PROCESS FOR CITY ADMINISTRATOR Thistle presented the format to the Council. He stated the previous evaluation format for both employees and the City Administrator were cumbersome, difficult to work with and had questionable meaningful outcomes. He reported that he looked at a different number of resources in both the private and public sector. He felt the evaluation should be understandable and easy to utilize. Thistle reviewed the major areas of the City Administrator evaluation which included individual characteristics, professional skills, relations with City Council, policy execution, reporting and communications, citizen relations, staffing, community, supervision, fiscal management and community development/redevelopment knowledge. Each of these major areas includes four to five key components. The evaluation can be used by the City Administrator as a self evaluation as well as used by the Council and others. 4. WATER AND SEWER BUDGETS AND FEES Nafstad reported on the projected revenue and expenses for the enterprise funds. He explained the shortages in the water and sewer funds and stated these would be annual. He explained that to make the funds whole, they would need to increase rates. Both the stormwater and recycling funds are funding themselves and are essentially whole. Nafstad stated the water and sewer accounts are not being funded for depreciation and to make those funds whole they are pulling money out of capital reserves. Nafstad also reported that in approximately ten years the City would need to make improvements to the wastewater treatment plant and funds for that are not in the budget. Hendrickson thought fees were set by the Joint Powers Water Board. Nafstad replied the bulk of the water fees are set by the Board and Albertville has its own portion in addition to that. He showed a sample water bill that identified the fees for the Joint Powers Water Board and City of Albertville. Hendrickson asked how long the funds have not been covered by the fees. Nafstad stated they began funding depreciation about four or five years ago and it is much needed. Staff is recommending a phased approach over about five years. It would add $1.00 each to the base fee for water and sewer per month. This would happen each year for five years. Couri stated that rather than coming back each year to set the fees, they could set the fees for the following years at one time. A future Council would be held to those fees unless they were changed. Nafstad stated that making it up what is needed in one year would be too much for the M:\Public Data\City Council\Council Minutes\2012 Minutes\City Council\M 12 03 2012 Workshop.doc City of Albertville Page 3 of 3 City Council Workshop Minutes December 3, 2012 residents, so they are proposing the five year plan. The increase per household would be $24.00 annually. He stated that in one year they could make up about $58,000. Meehan spoke about the deadline to get phosphorous levels reduced. Nafstad stated these fees do not address the costs for future improvements to meet the requirements. Sorensen asked about putting the increase on the tiered rates. Nafstad replied that applying it to the base fee is equitable to all residents. Vetsch inquired about the administration costs increasing in the funds. Nafstad explained that ten percent goes to the general fund to cover operation costs and it shows as an expense. It is almost a line item transfer to the general fund to cover costs. He stated it is a generic number as they don't have the time keeping software that identifies the exact time spent working in each department. Thistle stated that analysis is done to determine the percentages. Sorensen noticed that there were some administration costs under recycling. He thought when the contract was approved, there was a motion that a separate fund be set up just for recycling. He asked staff to follow up Couri stated that depreciation is a cash item in the future and if it is not funded it will result in higher rates and bond issues. He stated the wastewater expansion is not a capacity necessitated expansion which most likely will be funded by rates. If the funds are in poor shape going into the expansion, it will be difficult. He felt they are on the right path to get the funds in shape prior to the expansion. 5. ADJOURNMENT Motioned by Vetsch, seconded by Sorensen, to adjourn the meeting at 8:25 p.m. Ayes: Meehan, Hendrickson, Sorensen, Vetsch and Wagner. Nays: None. Absent. None. MOTION DECLARED CARRIED. Respectfully submitted, r, Kimberly A. Olson, City Clerk M:\Public DataTity Council\Council Minutes\2012 Minutes\City Council\M 12 03 2012 Workshop.doc