Detroit Lakes, Minnesota
February 17, 2009
The special meeting of the City Council was called to order in the Council Chambers of the City Administration Building at 5:00 P.M., Tuesday, February 17, 2009, all members of the City Council having been duly notified of the meeting and the business to be transacted.
Present: Mayor Matt Brenk; City
Administrator Robert Louiseau; Finance Officer Louis Guzek; Community
Development Director Larry Remmen; Public Utilities Superintendent
Curt Punt; Public Works Director Bradley Green; Police Chief Kelvin Keena;
Building Official Calvin Mayfield and Fire Chief Jeffrey Swanson.
Aldermen: Anderson, Heltemes, Imholte, Sukke, Tollefson
Absent: Aune, Marks Erickson, Tucker and Zeman.
Mayor Brenk opened the meeting noting that the special Council meeting discussion would be limited only to the topics on the agenda. The purpose of the meeting was to discuss and take public comments regarding the proposed amendments to the City’s 2009 Budget. He also noted that the City Council would consider a request for a variance from the City’s noise ordinance submitted by Zorbaz.
Mayor Brenk then asked City Administrator Louiseau to review the City’s budget process. Louiseau noted that the city budget process starts in July and August of the preceding year and the city’s budget and tax levy is generally completed by the middle of September. Louiseau noted that in 2008 there was a dramatic change in the economic conditions from when the Council set the original budget in September to the end of the year. As an example, the inflation rate in late August was being predicted at 4% to 5% annually and, and gas costs were in the $3.50 to $4.00 price range per gallon. By the end of the year the inflation rate had dropped to nearly zero, and the price of gas had come down to less than $2.00 per gallon.
These factors were affecting the City’s budget which would require the City to reduce overall expenditures by approximately $250,000. Based on the State Budget for 2010 and 2011, presented by Governor Tim Pawlenty, The Detroit Lakes City will loose approximately $187,000 in Local Government Aid in 2009. In addition the City expects interest on its investments to drop by approximately $35,000 and revenues from building permit fees to be off by a similar amount of $35,000.
Mayor Brenk noted that the Council had approved four actions to reduce the budget at the regular Council Meeting held February 10, 2009.
1. Using $4,000 from the enrollment fees generated through drug enforcement activities
to cover the City’s membership cost in the regional drug task force. Saving $4000.
2. Providing single only health insurance coverage to City Council and Public Utilities
Commission Members, saving an estimated $30,000 for 2009.
3. Reducing the capital equipment budget by 15%, saving an
estimated $61,500 for
2009.
4. Reducing garbage and solid waste hauling fees, saving approximately $10,000 for
2009.
Mayor Brenk called on Alderman Imholte, Chairman of the Finance Committee to review the budget revision recommendations.
1. First recommendation was to consider instituting a street lighting fee of $1.00 per month per utility customer to cover the increase cost of electricity for operating the City street light system. Alderman Imholte noted that the cost of electricity had increased from approximately 4 ˝ cents to approximately 6 ˝ cents in recent years. The cost of electricity is expected to increase as demand grows. The proposed fee would raise approximately $27,000 in 2009 and $36,000 annually thereafter.
Dan Olds, 1136 Jackson Avenue, noted his concern about the street light fee. Mr. Olds indicated there is a street light in front of his house that has been there for approximately 32 years; sometimes the light works and sometimes it does not. Mr. Olds does not feel it is right to be raising the street light fee under those circumstances.
2. Second proposed change would be to reduce the budget for partime staff in the Public Works Department by $32,000. Results would be reduced litter and trash pickup in parks, raking of the beach less frequently and seeding to return some areas back to natural vegetation requiring less mowing. This would also affect the watering of flower gardens, hanging pots on Washington Avenue, and support for staging community events.
Harry Johnston, 1316 Loring Avenue, addressed the Council and recommended a senior volunteer program to assist with some of the duties in the parks that a smaller staff may not be able to accomplish. He noted that volunteers could help with trash pickup, racking of the beach, maintenance of softball diamonds, assistance with the warming house and related matters. Tom Reiffenberger, member of the Becker County Master Gardeners noted that reduced watering could affect the plants in the flowerbeds and condition of the flower pots hanging along Washington Avenue. He noted that it would be important to know how these cuts would impact the flower gardens, so that the Master Gardeners could plan their activities for 2009 appropriately. Paul Renner, 1373 Burroughs Road, addressed the City Council noting that they should consider sending out contracts to see if a private contractor could do the work at a lower cost than the City doing it directly.
3. Alderman Imholte noted that the third recommendation would be to consider eliminating the lifeguards at the City Beach and consolidating swimming lessons under the Detroit Lakes Community and Cultural Center. Estimated annual savings for the proposal would be $27,500. Swimming lessons would still be available to residents of the community through the Detroit Lakes Community and Cultural Center. The safety equipment like buoys would remain in place, but the slide, docks and log may not be installed. In discussions with The Community Education and Recreation Director, it was noted that it had been difficult getting qualified life guards and other necessary staff to work the hours and properly supervise the public beach area. Eliminating the swimming lessons could make this problem even more difficult.
Scott Mehlhaff, representing The Lodge on Detroit Lake and The Best Western Motel indicated that he felt that lifeguards where an important service that helped to distinguish Detroit Lakes from other tourism communities in the area. Bob Merritt, 1241 Minnesota Avenue, noted that lifeguards helped promote a family orientated recreational use of the public beach area and helped to control a lot of the mischief that otherwise may go on. This would result in reduce safety especially for younger users of the beach. He suggested the City contract with the Detroit Lakes Community and Cultural Center to provide lifeguards for the beach.
4. Fourth recommendation was to eliminate warming house staff. This was estimated to save approximately $2,200 in 2009 and $7,000 annually. It had been necessary to close the skating rinks for several weeks in February due to the warm conditions and deteriation of the ice. When the rinks have been open benches and other facilities were available for use, but the warming house was not open. Alderman Imholte noted the long range plan for the Park Board was to try and look at relocating the skating facilities to People’s Park for a number of reasons. If this is done the arena staff could help with maintenance and supervision in the future. Kathy Carter, 608 Granger Road, addressed the Council noting her children had used the outdoor rinks extensively especially when they had dropped out of the youth hockey program. She indicated that her children would spend three to four hours a day down at the rink and that it was important that a warming facility be available for their use. She also expressed concern that the attendants at the warming house provided some control and supervision of the users of the facilities especially the children. Jodi Wimmer, 1125 West Avenue, also addressed the Council that the warming house facility was important to provide outdoor skating opportunities for the community and attendants were needed for supervision.
Alderman Imholte indicated that Mark Greening, Community Recreation Director would be retiring. As a result the City was considering contracting with the Detroit Lakes Community and Cultural Center to provide the coordination and supervision of the Summer Recreation Program. It was estimated, coordinating with DLCCC, could save the City approximately $10,000 in 2009 and thereafter. No agreements had been reached but the City was in discussions with DLCCC to provide the same programs as had been provided through the Community Education Recreation Program in the past.
Several residents raised concern that the Recreational Facility not be closed and that the opportunities are available for children to check out games, equipment and other things or participate in activities sponsored at the City’s Washington Park Recreation Facility through the Summer Recreation Program. Stu Omberg, representing the DLCCC, noted they were intending to maintain and hopefully enhance the quality of the programs that are currently offered through the Summer Recreation Program. Stu noted that the DLCCC and City will work together to effectively serve the people in the community. It also was noted that it may be necessary to increase some of the fees associated with the Summer Recreation Program, but this would be primarily due to a loss of other sources of support for the program. For example, the VFW sponsored the VFW Baseball League for several years. In recent years this support has been reduced and will not be available for 2009. As a result the DLCCC will either need to raise the fee for youth baseball or find other sponsors for this program. These issues where being discussed between the City and DLCCC as part of an overall agreement for operation of the summer recreational program.
Scott Mehlhaff suggested that perhaps the DLCCC should consider offering water safety instruction (WSI) classes in order to broaden the pool of lifeguards available to help address some of the issues finding qualified reliable lifeguards to serve at the beach. Mr. Mehlhaff emphasized his concern that lifeguards at the beach remain part of the Summer Recreational Program.
5. Alderman Imholte noted the fifth recommendation is to reduce the cost of building code enforcements to the amount equal to 80% of the permit fee revenues plus 100% of the fees for plan review. He noted that this would save an estimated $38,000 in 2009 and $53,000 annually. This reduction was primarily due to an overall reduction of building permits being taken out in comparison to recent years. It was noted that in recent years building permit fees had been sufficient to cover the cost of the Building Official and Assistant Building Inspector. Based on recent activity it does not appear that these revenues will be sufficient to cover both of these positions.
Paul Renner said he wanted to make sure there is not an increase in building permit fees in order to fund this department. Mr. Renner noted that it would be better to adjust staffing to match the building permits. It was also noted that the code enforcement department would continue to perform inspections related to storm water runoff, zoning and related matters.
6. Alderman Imholte noted that the sixth recommendation under consideration would be a reduction of $8,000 in the Capital Improvement Budget for the Detroit Lakes Becker County Airport. He noted that the City contributes about 2 ˝ cents for each dollar spent on eligible items, the federal government contributes about 95 cents and Becker County matches the City’s 2 ˝ cents for each dollar spent for capital improvements at the Airport. It was noted that if these funds are cut, it may not be possible for the County and City to reinstate these funds in the future which may reduce the amount of improvements that can be carried out at the Airport. The Airport does have approximately one half million dollars capital reserve but is working on a major runway expansion project.
There were no further comments regarding the proposed budget cuts. Mayor Brenk asked anyone with further ideas to contact the City staff or Council Members.
One member of the audience suggested that the City should consider combining services with the County and other state agencies located in the immediate service area of the City such as MNDOT and Department of Natural Resources. It was also suggested that the Council should consider eliminating health insurance for Aldermen and Public Utilities Commission Members; as such benefits are not provided to similar positions in Moorhead, Alexandria and Fergus Falls.
The Council was also asked to look at the parking situation along Jackson Avenue because there are some areas that parking should be limited to one side of the street for safety reasons.
Mayor Brenk thanked everyone for attending the meeting and noted that the Finance Committee will meet at 4:00 p.m., Tuesday, February 24, to consider which recommendations to recommend to the Council. The Council would meet at 5:00 p.m., Tuesday, February 24 to make additional decisions regarding adjustments to the 2009 budget.
Mayor Brenk then noted that an application had been received from Zorbaz to consider a variance from the strict requirements of the City’s noise ordinance for June 26, 27, 28; July 3, 4, 5 and July 24, 25, 26.
Tom Hanson, 402 West Lake Drive, addressed the Council and noted that Zorbaz would be inviting several bands to play at their location and there would be extra costs due to the type of bands being there. This is being done in conjunction with Zorbaz’s 40th Anniversary Celebration.
Bob Merritt addressed the Council noting that he lives within 1000 feet of Zorbaz and was opposed to the noise variance and stressed that the noise spreads well beyond the 500 feet permitted under the ordinance. Judy Sanders, 1241 Minnesota Avenue, also addressed the Council noting that it seemed like a loud party going on when variances from the ordinance where given. She indicated that it was difficult for her to sleep in her home when the variances are approved. Police Chief Kel Keena clarified the ordinance; noting that the ordinance allowed an exception for licensed liquor establishment to have noise levels that would be detectable up to 500 feet away. Under the ordinance the noise exceptions would have to be curtailed at midnight. The normal standards in the noise ordinance where 50 feet away and curtailed at 10:00 p.m.
After further discussion a motion was made by Alderman Anderson, seconded by Alderman Sukke and carried, on a four to one vote, with Alderman Heltemes dissenting, approving the application for a noise variance permit for Zorbaz.
There being no further business to conduct, by general consent, Mayor Brenk adjourned the meeting.
Respectfully submitted,
Robert Louiseau
City Administrator