5.a)2) Minutes 10-22-13 October 22, 2013
A special meeting of the City Council for the purpose of discussing the 2014 Budget and
Employee Health Insurance Plan was held on the above date. Mayor Simonson called the
meeting to order at 6:30 p.m. The following were present: Mayor Randall Simonson, Council
members Dan Lee, Jim Schneider, Sally Swanson, and Chris Ness. Staff present: City
Administrator Kristina Handt, Treasurer Colleen Firkus and Public Works Director Tim Kieffer.
APPROVAL OF THE AGENDA
Ness, seconded by Lee, moved to approve the Agenda as presented. The motion carried 5-0.
2014 BUDGET DISCUSSION
Public Works
Administrator Handt summarized the issues and unfinished business from previous budget
meetings. Two quotes for trimming trees along three miles of road were reviewed: Hugo Tree
Service for$37,500, and Helke Tree Service for$27,000. The estimated cost of a full-time
maintenance worker($67,585 wages &benefits) was compared to the contractual costs of tree
trimming and sewer maintenance. Staff projects two-thirds of the cost of a new staff inember
would be recouped in these two services, along with the benefit of having help in snow removal,
patching, ditching, building maintenance and equipment repairs. Staff reiterated the City's
Public Works staffing levels are significantly less per miles of road than other cities. Mayor
Simonson asked why only two bids were received. Director Kieffer said no one else was
interested in bidding the work and as they felt there were too many unknowns and wouldn't be
able to cover their costs, even though Kieffer drove each project area with interested bidders.
Kieffer indicated they had all the eyuipment they needed, except for a chipper, which could be
rented. Clear cutting will for the most part will eliminate the need for a bucket truck. Mayor
Simonson said not hiring another worker will leave the City at status quo and not allow the City
to move forward with the necessary work with an adequate crew, and that it was about more than
tree trimming. Council member Ness said there is a lot of catch up work and does not feel even
four guys is enough to finish the work by spring, but can see the benefit of another employee.
Schneider repeated his position against any further hiring as he doesn't see enough work to keep
them busy. Swanson was undecided. Swanson asked if staff was ready to take over the sewers.
Handt said Anderson is licensed and Kieffer took his test last week. Lee indicated he didn't think
the staff would be asking for another person if they did not need it and that he needed the
expertise ofthe staffto guide him in decisions on the city's needs. Lee also stated he thought
Kieffer would be able to keep all the guys busy all winter with either plowing or tree trimming.
Kieffer added that emergency calls are always pulling him away which makes it difficult to do
big projects. Swanson offered a compromise of hiring someone halfway through the year and
using the tree trimmers this winter to help catch up on the tree clearing. However, no significant
cost savings were seen in this measure. Mayor Simonson, seconded by Lee, moved that the
City hire another full-time maintenance worker and not hire a tree service until the work
needed is more defined. The motion passed 4- 1 with Simonson, Lee, Swanson and Ness
voting yes, and Schneider voting no.
October 2,2013
Scandia City Council
Page 2 of 2
Fire Deqartment
The Mayor reviewed the AV needs for the training room at the fire hall. The same projector
currently in use at the Council chambers should be purchased for the fire department along with
some other miscellaneous supplies. The Mayor recommended lowering the budget from $8,000
to $2,000 and the Council agreed.
Audit Costs
Council agreed with lowering auditing costs in the 2014 budget from $22,500 to $16,300 based
on the significant savings realized by switching auditors.
Health Insurance
Council agreed to switch the health insurance plan to Health Partners for coverage beginning
December 1, 2013. The plan is similar to the current plan. Keeping contribution levels the same,
the City would realize a $16,000 savings. Prices will go up next year under Obamacare when the
City's rating will go from .75 to a 1.
Codi�cation
Handt suggested some of the budget savings be used to codify the non-development ordinances
to get them organized by subject, indexed, numbered in a logical order and allow updates to
occur easier. It would also make it easier for both the staff and the public to search ordinances.
Handt obtained one yuote for $9,000, but would like to check with a couple other codification
companies. Swanson,seconded by Simonson, moved to include$9,000 in the Administration
budget for codifcation of non-developrnent ordinances. The motion failed with Swanson
and Simonson voting yes, Ness and Schneider voting no,and Lee abstaining.
Fiscal Impact
A summary of changes to the budget revealed $27,704 that could be re-allocated. Ness,
seconded by Schneider,moved to put the extra money in the new Local Road Improvement
Fund. The motion passed 5-0.
EMPLOYEE HEALTH INSURANCE PLAN RESOLUTION
Ness, seconded by Lee, moved to pass Resolution 10-22-13-01 to switch health insurance
plans to Health Partners for the period of 12/O1/13 to 11/30/14 and to continue the current
contribution costs. Motion passed 5-0.
ADJOURNMENT
Lee,seconded by Ness, moved to adjourn the meeting. The motion carried 5-0.
The meeting adjourned at 7:45 p.m.
Respectfully submitted,
Colleen Firkus
Treasurer