5.a)3) 08-30-2011 Special Meeting . j � � 3 .
August 30, 2011
A special meeting of the Scandia City Council was held on the above date for the purpose of
discussing the draft 2012 budget. Mayor Randall Simonson called the meeting to order at 6:33
p.m. The following were present: Council members Connie Amos, Chris Ness, and Jim
Schneider and Mayor Randall Simonson. Sally Swanson amved at 6:55 p.m. Staffpresent:
Administrator Anne Hurlburt, Treasurer Colleen Firkus and City Attorney David Hebert.
Draft Position Descrintions
Administrator Hurlburt reviewed the FT Maintenance Superintendent job description. Council
member Schneider asked if FT is necessary for the Maintenance Superintendent. Hurlburt
indicated the job duties would need to be significantly reduced if the position were part-time.
Mayor Simonson and Council members Ness and Amos agreed the position needed to be full-
time. The Minimum Qualifications were discussed. Hurlburt stressed the importance of having
supervisory experience and Council agreed. Council agreed to change the language on Item 6,
Water Operator's certificate, to add"or ability to obtain certification within 6 months."
The PT Building and Code Enforcement Official description was reviewed. It is the essentially
the same job description created four years ago when Thorp was hired, except to add Item 9, a
new ordinance concerning dogs which went into effect last year. Text highlighted in red are
items that could be covered by a part-time employee,but would not be done if the position was
contracted. PERA is the only fringe benefit.
An estimate of impacts to the budget showed it was more cost-effective to hire a part-time
employee,but it is based on some assumptions. For example, it assumes keeping the current
employee and avoiding unemployment compensation. It also assumes the reduction of staff
hours will increase the need for contractual services with Legal & Planning services. These
expenses may be less with a knowledgeable staff. The Council agreed on a PT position,but Ness
asked the budget to be prepared assuming Thorp will leave. Hurlburt suggested we budget some
unemployment to cover either contingency. Schneider asked about the pay rate for the PT
position. The$33.65 rate is what the city is currently paying Thorp, if he were paid hourly.
Hurlburt estimated that a contractual person hired on an hourly basis would cost $50 to $60 per
hour because there would be no employer contributions for FICA, etc. Hurlburt expressed her
desire to keep'Thorp as his experience makes him a valuable employee. Simonson also expressed
his desire to keep Thorp in the part-time position. Council agreed the position would take effect
January l, 2012, and it would be offered to Thorp first. Council directed staffto start the hiring
process for the FT Maintenance Superintendent position and set a salary range of$55,000 to
$70,000.
Schneider asked what the Building Official would do in the winter months for 20 hours per
week. Hurlburt stated the 20 hours per week is an average and the position may work less time in
the winter and more in the other months. All the text in red indicates the additional work the
employee can do when building permit activity slows down. Ness stated that these are the jobs
that won't get done it if you don't have someone in the position.
August 30,2011
Scandia City Council
Page 2 of 3
Simonson, seconded by Amos, made a motion to adopt the PT Building and Code
Enforcement posiNon description effective January 1,2012, at$33.65 per hour and to offer
the position to Thorp before advertising for the position.The motion passed 5 -0.
Simonson, seconded by Ness, made a motion to adopt the FT Maintenance Superintendent
position description, and to start advertising with a goal to fill the position by January.
The motion passed 5—0.
Health Insurance
The draft budget assumed a 10%increase in health insurance. Last year the increase was 20%
due to the city's poor experience, and would have been much higher without the pool. It was
assumed the city could avoid a high increase like those experienced in the last several years by
seeking quotes outside the SW/WC Service Cooperative pool. Staff has received the 2012 rate
quote and it is better than expected at 7.5%. The pool's experience was better than expected
which mitigated Scandia's increase. Since the staff does not know if better rates could be
obtained by shopping outside the pool because of its experience, the carrier wants a decision as
soon as possible, and it would be helpful to know what kind of benefits would be offered when
hiring a new FT employee, Council agreed to keep the current coverage and the same city
contributions. Hurlburt will prepare a resolution for the September 20 meeting.
Ness, seconded by Simonson, made a motion to stay with the SW/WC Service Cooperative
pool and accept the 7.5% increase, and keep city contributions to premiums and health
savings accounts the same. The motion passed 5—0.
Other Staffmg Issues
Budget assumptions include step increases for the two Public Works employees,no cost-of-
living adjustments, increased the Deputy Clerk's hours from 30 to 40 hours per week, adding a
seasonal Public Works employee and keeping the seasonal parks position. The step increases will
require Council action after a performance review. Swanson asked when performance reviews
were done. Hurlburt stated it is one of the things not getting done. Hurlburt also noted pay rates
have not been increased in 3 years and inflation has been about 7% since then.
Amos, seconded by Ness, made a motion to give a 2% increase to staff.The motion passed 5
—0. Hurlburt will calculate the impact of a 2% increase on the budget for review at the next
meeting. She will prepare a resolution for a future meeting to implement the pay changes.
Sewer Svstems Operations and Permitting
A recent meeting of staff with County officials revealed a new permitting process that will affect
the 201 and Uptown Sewer Systems. The County will issue permits for mid-size systems, which
will include the Anderson/Erickson (A/E)part of the 201 System and the Uptown System. The
County will no longer be able to provide contractual maintenance for that part of the 201 System.
The city has been treating the 201 as one system,but it is divided into two parts for regulatory
purposes. Staff will request that the MnPCA treat this as one system under their permit, which
would be acceptable to the County. Then the city could continue to use the County for
contractual maintenance. If the MnPCA turns down that request, then the city will have to hire a
contractor as there is no one on staff with the proper licensure.
August 30,2011
Scandia City Council
Page 3 of 3
The County is also asking for a permit application for the Uptown System by the end of
September. The Bolton & Menk report on the Uptown System was given to the County and staff
believes that the report recommendations will be required as a condition of the permit, including
having a qualified operator. The application process is complicated and staff is hoping to work
on it with Bolton &Menk.
Capital Proiects
Discussion ensued as to how to pay for the upgrades to the Uptown System. Council suggested
cutting the sidewalk project($35,000 PR-015) from the Capital Improvement Fund budget,
thereby increasing the projected fund balance to approximately$329,000 by the end of 2012.
This would allow the city to borrow internally for the cost of the improvements,which will then
be charged back to the users without the extra cost of issuing debt. Bolton&Menk will be
finalizing their report including budget numbers based on contracting for a qualified operator.
Staff hopes to have data ready by the end of September or early October so the Council can meet
with the system users to discuss the rate structure and payment plan. Hurlburt also suggested that
the city may be able to complete the recommended upgrades on city property(access risers and
septic tank covers, abandoning a holding tank and replacing controls for the warming house
pump tank) this year if there is extra money in the current year's budget.
Mayor Simonson expressed his desire not to increase the levy for 2012. Swanson stated it was
not unreasonable to have a 1% increase. Staff referred Council to page 4 of the budget which
shows the history of tax levy increases. The increase last year was 4.95% and in 2010 the
increase was 3.10%.
The next meeting is Tuesday, September 13, a Regular Work Session meeting. Staff will have
the updated budget numbers showing the impact of the changes discussed. Council will need to
set the maximum property tax levy at this meeting, and set the date for a public meeting on the
levy and budget.
Simonson, seconded by Ness,moved to adjourn. The meeting adjourned at 8:46 p.m.
Respectfully submitted,
Colleen Firkus
Treasurer