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02-10-86 Council as WholeCouncil Workshop February 10, 1986 The meeting was called to order by Mayor Kennedy. Others attending were 49 council members Palmer, Manning, Ruiz, Hafferman, Saverud, Nystul, and later, Schindler, City Attorney Neier, D.P.W. Hammer, Clerk/Treasurer Halver, City Accountant Robertson, Ardie Granrud, Tom Flynn and. Roger Hopkins. 1. Water and Sewer Report Tom Flynn stated he was not ready to put the report into book form yet. He he had great difficulty in preparing his report and it would still not be done if it hadnft been for the work of the City Accountant in assisting him. The City has not been maintaining accurate reports on water and sewer assets and inventories. He reported that a 12% rate increase in the sewer fund would provide $85,000 a year towards a revenue bond issue. This would support a $600,000 bond issue. It would take at least 60 days to accomplish a rate increase. Councilman Nystul stated there were two things we needed to determine, whether our present rates adequately covered our required reserves and depreciation and how much additional revenue we need to generate to cover any bond issue. He suggested Tom Flynn and the City Accountant further refine the data to see what we can do. Both Gary Nystul and Tom Flynn felt our records were not adequate to support a P. S. C. approved rate increase request. • Councilman Nystul recommended we determine if a 12% rate increase will generate enough to cover the necessary bond issue. Tom Flynn reminded the council that any E.P.A. or other mandated projects could be paid for with a rate increase which is exempt from public hearing requirements. He also referred to other sources of revenue such as increased hook-up fees and charging for the use of lift stations. He and Councilman Schindler suggested the water and sewer budgets be looked at to determine if costs were being paid that could be paid from other funds. Tom Flynn suggested we attempt to clear up some of the questions on the 83-84 annual report. He recommended we sell a bond issue if we are going to award a contract. Councilman Nystul requested Tom work up information on options including 12% rate increase, increased hook-up fees, and a full PSC hearing with changes that may be acheived through the PSC approved increases. Councilman Palmer summarized the things the council needs to determine: How can we pay for the projects, how much can we pay, how long will it take to sell the bonds, and Tom and Amy will research and redo the 84 figures to the best of their ability. - 1 - Council Workshop - -..- Councilman Nystul said Phase I would be usable without Phase II. Ken Hammer said First Alley West absolutely must be done. First Alley West is dependent on Phase I and II being done. 2. PUBLIC SAFETY COMMITTEE Pornography Ordinance Councilman Schindler reported on the meeting he and the Police Chief had just held with the County Attorney concerning the County Pornography Ordinance. The County ordinance specifically excludes the city from the jurisdiction of the ordinance. County Attorney Lympus also told them the county cannot write ordinances with authority within cities. He can prosecute violation of state law within the city. Councilman Schindler recommended the council request the C.A.P. group prove to us that the ordinance they want us to adopt has been successfully defended. Mayor Kennedy stated the council should adopt a moral attitude and evaluate any ordinance changes based upon what is good for the city. Councilman Schindler stated State Law is the most defensible. We cannot relinquish our right to the county. Also any ordinance with an age limitation so it only prohibits access for minors would be defensible. Councilman Ruiz stated the one we have on the books now is the one voted upon • and should be retained. • It was the consensus that City Attorney Neier try to find record of an enforceable ordinance. He stated be didn't think he could present a recommendation by the February 18 meeting. We should also ask Don Nelson if his group has any evidence of successful defense of the proposed ordinance. Fredenberg letter. Sgt. Fredenberg requested be continue to be picked up at his home which is about 1000 feet outside the city limits. He stated he had been given permission in Feb. 1976 by Mayor Happ and Police Chief McDowell. The council felt the policy should stay as is. They also recommended Sgt. Fredenberg provide evidence to his receiving permission. 3. POST OFFICE SITE. Mayor Kennedy read a letter from Rep. Pat Williams which included a statement that the decision on the new Post Office site is final. Williams also reported he had been assured that Postal Services would continue to be available at the present site after the new Post Office was opened. 4. STREET DEPARTMENT BUDGET Mayor Kennedy reviewed DPW Hammer's report on the status of the Street Department budgets. - 2 - Council Workshop February 10, 1986 • The Mayor felt the solution was to lay off three street department personnel. Councilman Ruiz agreed that was a solution but he would like to find some alternative. Clerk Halver reported there weren't any other sources which could be transferred to the street budgets. Councilman Ruiz asked if people could be laid off one day a week. It was concluded with the cost of fringe benefits and call back problems there probably would not be enough savings. Ken Hammer suggested the street department might do some of the work on Phase II. Councilman Saverud and Ken Hammer discussed the Fifth Avenue West North reconstruction project to determine if City crews could do this work. Councilman Palmer suggested the money set aside in Tax Increment for a loan to the Haarr Building be reassigned to the street department for projects in the district. Ken Hammer suggested the city crews might be able to able to rebuild Fifth Avenue West North and 3 or 4 blocks on West Montana from the $150,000 budgeted for Fifth Avenue- ?last North. Councilman Ruiz stated we have a lot of work that has to be done by the street department and we need to fund this work. 1-0 Councilman Saverud requested the Tax Increment Fund not be used as a "slush -- fund" and the district only pay for the items that are proper to the district. Councilman Palmer requested the council address future plans for layoffs in both the Street and Garbage Departments. Councilman Palmer recommended we use street crews to do the Fifth Avenue West Project and then make layoffs in the fall after this project is done. He also recommended we order the East Side garbage cans and lay off three garbage crew when the east side is converted. City Attorney Neier stated the opinion he wrote concerning layoffs did not address laying off the Garbage people. There was considerable discussion as to whether we are laying off or terminating employees. Councilman Palmer recapped the recommendations: 1. Keep the present street crew and work on Fifth Ave. W.N. 2. Notify the "last" 2 street employees that their positions may be terminated in the fall. - 3 - V Council Workshop February 10, 1986 3. Proceed with getting cans for the Sidearm Loader system for the East Side, and when the system is installed, teminate three positions. 4. If we see we need additional summer help for these projects hire more people. City Attorney Neier will review the ramifications of terminating these positions. Councilman Ruiz will make a Public Works committee report at the February 18, 1986 regular council meeting which incorporates the summary presented above by Councilman Palmer. Councilman Ruiz will also move we proceed to sell the surplus garbage trucks. Councilman Palmer recommended we consider in future budgets attempting to get a used side arm loader truck for a backup. 5. MISCELLANEOUS Main Street Tracks Councilman Ruiz asked what we could do the get the tracks removed from Main Street. Olen Neier said we wrote a letter to the Railroad asking them to tell us when they were going to remove the tracks and we haven't received any response. • 6. ANNEXATION The commitee will be acting on Scotty's Bar at their next meeting. FRDO is working on Buffalo Head. 7. PARKS Councilman Palmer reported the Friends of Lawrence Park were holding a meeting with the Audobon Society. Councilman Manning reported we need to address how much gravel we will be taking out of the gravel pit. We also need to look into the status of dumping in Lawrence Park. Hammer said he only knows of snow being dumped there. He will check further. Councilman Manning asked if the 40 acres south of town owned by city could be used for a gravel pit. It was also suggested there may be a portion of Conrad Cemetery that may be used as a gravel pit. Meeting adjourned at 8:00 pm. 0 - 4 -