HomeMy WebLinkAboutCCMinutes_2006_04_25 120
Brookings City Council
Apri125, 200G
The Brookings City Council held a meeting on Tuesday,Apri125, 2006 at 4:00 p.m.,at Ciry Hall
with Mayor Scott Munsterman, Council Members Tom Bezdichek (arrived at 5:00 p.m.),Michael
Bardey,Julie Whaley, Ginger Thomson,Tim Reed, and Michael Reitz,City Manager Alan Lanning,
City Attorney Steve Britzman,and City Clerk Shari Thornes present.
Executive Session. A motion was made by Reitz, seconded by Reed, to enter into Executive
Session at 4:08 p.m. for personnel xeasons with the Council. All present voted yes;motion caxried.
A motion was made by Reitz, seconded by Whaley,to exit Executive Session at 4:50 p.m. All
present voted yes;motion carried.
5:00 P.M. WORK SESSION
Performance Tool for City Manager.
Council members Reitz and Reed dxafted a new city manager pexformance evaluation tool for the
Council to review and discuss. Reitz explained that the tool would make it easier to grade the
manager's performance on an annual basis. It was noted that the scores refer to both raise and
bonus potential. City Manager Alan Lanning reviewed each objective and provided the following
responses:
Raise Potential: 100-90�oints 5%, 89-80 4%,79-70 3%. Lanning questioned if there was nothing
he could ever do that would persuade the Council to give him more than a 5%raise. Even if he
developed retail that added$8 million to the city's budget would he be limited to a 5%raise. He felt
that was unrealistic. It certainly kills the incentive for someone to pexform at an extraordinary level.
A 5%raise is mediocre and dictates mediocrity.
1: To�Line Sales Taa�Growth (1 �t for every$50,0001. Lanning said this is out of his control and
is a largex part of the economic pictute. Student enrollment,lay-offs by manufacturers,interest rate
increases, etc. are all out of his control,but could effect sales tax collection. Also,if the Council
does not approve his retail expansion plans,is he then still held accountable?
Reed asked in regards to the Council's goal of expanded retail development,if there was a
measurement for the manager. Lanning said no, not on the amount of sale tax generated. The city's
major revenue producers of sales tax and utility transfers are both out of his control and to give this
objective a 10%weight in factoring his performance pay or raise for something he can't control is
unworkable.
Reitz noted that none of the goals or attributed values are finalized. Lanning said the goals must be
measurable.
Munsterman asked if any economic measurement could be used. Lanning said a balanced budget,
which is required by state law. His objective and financial goal is to meet all needs and unexpected
surprises and still have a balanced budget or surplus at the end of the year. Beyond that,most things
axe unpredictable and out of his control. All revenue predictors on the draft tool are impossible to
predict. He can't control any of these tivngs. One example he cited was that he could be held
accountable if the economy dipped and the sales tax only raised half a percent. In Brookings recent
history, the economy dipped, and the city's budget faced a$800,000 cut. That is not the city
managex's fault and is nothing that can be controlled.
2• Budgeted Ex�enditures Match Actual (ex�ense onl�no Ca�ital or Council Rec�uestsl.
Lanning asked if this was relative to every single expenditure line item,with no ability to adjust for
emergencies and unforeseen problems. This xequires perfection and he is not a perfectionist. He
views a budget as a guide and a living document that is adjusted many times during the course of a
year. To pin him to a numbex is a poor budgeting philosophy. What we're curxently doing is
working well,as evidenced by the $1.1 million increase. Is there a perceived pxoblem here? He
noted that each budget adjustment comes to the city council fox approval.
Reed said he doesn't think it's a problem and this objective is a reward for what has been done. He
cited the same reasoning for the first objective. He didn't think the Council was talking about
individual lines,but rather the bottom line/total budget. Shifting funds between depaxtments for
emergencies is okay. Reed said that Lanning could have ta.ken the under budgeting approach to
.
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make it look good,which he hasn't. Reed said the manager is doing the best job possible to
accurately forecast expenses.
Reed said the Council is trying to develop a tool to help lay people evaluate the manager's
performance,but to also be a tool that is fair to the manager.
Lann.ing said he is not hexe to produce funds surpluses,but to deliver services. On xare occasions
for reasonable requests he can provide additional funds to departments for needs based on the
funds available.
3: Mainta.in no less than a balanced budeet. Lanning said this objective is simply a restatement of
State law. He is bound by State law (SDCL 9-21-2) to pxesent and maintain a balanced budget.
Reitz said that objective was meant to be"easy points." Lanning said he can't do anything other
than maintain a balanced budget.
Reed said this objective would be an issue if the manager needed a special loan during year. That
would be a pxoblem. Lanning said he is bound by fund reserve policies and he fails to see the need
for a penalty because the Council appxoves everything that happens with the budget. The city
manager doesn't vote.
Thomson asked Lanning what type of pexformance measurements he has used before and if he
knew of othex forrriats that more accurately reflects the goa1. Lanning said he has used the same
tool for the last 8-10 years,which has developed over time. The key issues are to rate his
performance and set goals at the end of the yeax. He noted that after his first 8 months as managex
there were no goals set fox 2005. He cited the following as possible 2006 goals: finish the trench on
time, finish the aquatic center,is the airport along far enough to make a decision. He said these axe
goals on a highex poliry level the City Council should be working towards rather than if e�enditures
meet line item for actual. If the Council is worrying about the latter, they axe in the wrong place.
Let's get these things done during the year. One goal for 2007 has already been established;get
Prairieland in a position to close on the DOT property in Octobex 2007. We need to do everything
we can to get them there. That is something he can work for.
4: Increase interest income, City Fees,Misc. Income Revenue. Lanning said he can not control
interest rates and theoretically, the city could do a better job of investing and not make as much
revenue,if intexest rates fall. That isn't within his control. This would also require the Council to
approve the manager's xecommendations for fee incxeases,new fees, etc. (Building Permit fees
served as an example,his recommendation was not approved,but a hybrid-that is clearly out of his
control). If the council doesn't approve those fees (business licenses serve as an example),how can
the manager be held to a 4%growth rate?
Lanning asked the Council to review the extensive Governance and Ends Policies that are already
written. These are used as a guide to prepare the budget. In general, there may be revisions
required for that document as well.
Reed said if the city's revenue doesn't grow at a 3-4%rate per year it won't cover the growth of
expenses. Looking back,he said the manager has done a good job of estimating. Lanning said none
of the miscellaneous fees and rates will cover that growth. That must come from the sales tax,
property tax,and urility transfers. Nine of the$10 million annual budget comes from those three
revenue sources.
Reed saitd if this funding isn't growing at 4%, the city won't be able to keep up with expenses. If
annual fee/rate increases had been in place, there wouldn't have been a need to"jump" the building
permit rates so much in one year. Lanning said he doesn't have a problem with that appxoach but
he does have a pxoblem the first time the Council doesn't say yes to his xate increase
recommendation but he is evaluated for not increasing the revenue. That's when this evaluation
instnunent becomes null and void.
Munstezman said the Council is asking for more creativiry from the manager on xevenue sources and
the Council is prepared to have those discussions. The Council is particularly focused on the
financial area because of whexe the city has been. The City pulled out of a big financial hole and the
Council needs to monitor the ciry's financial pulse for the next 5-10 yeaxs to maintain a good focus.
Lanning didn't disagree but is concerned the Council would use these as tools to evaluate his
performance because of the elusive natuxe and who has control. The Governance and Ends Policy
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is already written. The Council is just tacking on more rules. Every rule that is added makes it more
difficult for the staff to prepare budget and stay on track. To some deg�ee the Governance&Ends
Policy has valid points and good ideas,but it is a tool for micxo-managing the staff. It tells the staff
how to do aci�ninistrative duties and to tell the city manager things he/she is paid to know already.
He cited Objective #3 as micromanaging staff because it is already required by state law.
Bardey said the draft tool is more related to a production mana.gement position where thexe is
control over these factors. A municipality and city manager is not one of those. It should be
restated as more goal oriented rathex than requirements.
De�artmental/Individual/Others
1: Em�lovee Management and Growth Provide Bi-Annual Re�ort to Council. Lanning said each
year during the budget process the Council receives a department by department review,highlighting
goals and objectives,bench maxk compliance, staff requests, etc. Is it necessary to report it again in
mid-year? What does this accomplish in the management of the organization? We currendy operate
the enti�e yeax,at the appxoved levels duxing the budget process.
2: Maintain 5-year CIP for All De�artments. Lanning said we currently do this. Is there something
the Council believes it needs in texms of additional information?
3: Maintain Police Force at Acce�table Levels. Lanning asked if they were prepared to accept the
staff recommendation. If not, can he be held accountable then, for the Council's failure to approve
staffing levels? �
4: Develo� Strateg�to Obtain a Rating of 3 for ISO. Lanning said this issue is stricdy about
money. We can obtain that rating,but it requires facilities,apparatus and pe�haps, additional paid
staff and volunteezs. If the Council does not approve any of the requirements,how can the managet
be held accountable?
Reitz said that was listed for the Mana.ger to develop a sttategy to obtain that xating. Lanning said he
understands this objective perfecdy. He said it is a rare occasion that a Council can come up with
these answers without professional help.
Lanning asked the Council what they want to do. He asked in the 2 years he's been here how many
ideas had he brought forward? Those are goals. Those are things the Council wants to achieve and
what it wants to look like when it gxows up. The ISO rating of 3 could be one of those things. The
equipment and facilities related to that goal are policy related that must generate fxom the Council.
Bardey said the Council hasn't established any goals for 2006/2007. Reitz noted the Maxch Council
Retreat. Bardey said the Council didn't take stock of goals and views of where the Council wants
the City Managet to go. Goals need to be established and done at a public meeting. The Council
needs all input and input from the Manager. Bardey doesn't'see that the Council has established
any goals to this point.
Lanning said it would be helpful to have someone come in to help the Council think its way through
this process to develop a model for the future. It's a pYOCess that a11 participate in. The City
Managex will talk about financial ways to achieve the Council's goals. The City Council members �
will think about citizen needs. Bringing in someone can help the Council get to a point where it can
develop a set of realistic goals fox the next 5-10 yeaxs. Goals that can be continually updated The
Council would also set financial priorities. One goal should be to get city equipment back to where
it needs to be. Each department would have a financial plan and goals. The manager would rate
these needs on a priority level to determine how to finance them and get them to that goal. In any
given yea.r the Council could xeview to see if the Managex had gotten those things accomplished.
Munstertnan said the Council has alteady set goals for 2006 at a planning retreat. At that time they
identified the key qualiry of life issues currendy impacting the community and graded themselves.
From the list the Council selected three areas to focus for 2006: attraction of people,city services,
and promotion.
5: Lead Council to Develo� Stxategy to Define the Roles of the Hos�ital. Event,and BMU Boards.
Lann;ng said he believes he has done this to some degree. He has made suggestions regarding
appointments to those boards, structural issues, etc. Howevex,if the Council does not accept those
recommendations, can he be held accountable? There are also legal issues that are beyond his
conttol, as well as financial issues that would have to be addressed.
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6: Create 5-yr Retail Incentive Fund�lan with Ap�ro�riation Plan. This can be done,but again,
xequires money. If we cannot identify additional revenue sources, or if those identified are not
approved by the Council,can he be held accountable?
7: Parmer with the BEDC and Chamber to come u�with a�lan for work-force develo�ment.
This can be accomplished and he has already identified a general plan,based upon best practices in
other areas. However,much of this is a money issue and much of it would be tied to an affordable
housing component. Again,he can not control much of this unless the Council desires to intrude
further upon the private sector. This might also require zoning code changes,like"Inclusionary
Zoning". Can he be held accountable if the Council chooses not to take these steps.
8: Create Bi-Weekl��rogress xe�orts for the Ma�ox and Cit�Council on off weeks for meetings to
kee� them informed. He said he can accomplish this. Each Council meeting,the City Council
receives an extensive report of the bi-weekly activities. In essence,those are the things that
everyone is woxking on. Does the Council desire reports on administrative issues? What issues in
parricular does the Council require repoxting?
9: Team Meetings to O�timize Efficienc�and Sharing of Resources. Is this among the genexal
government staff? If so,we meet weekly and those are Leadership Team meetings. This is an area
that the Manager specificatly conttols by Cha.rter. To dictate how we operate is not within the
purview of the Council. As a demonstration that we already do this, the Mayor,in his State of the
City Address gave the statis#ic that operating expenses were 3.7%below the 20001eve1. Does the
Council believe there are some unrealized efficiencies? �X/e are operating with a balanced budget,
producing budget surpluses and opexating below 2000 levels in terms of expenditures. Is there a
perceived pxoblem,and if so,what is that problem?
10: Consistent Use&Enforcement of City Policies and Procedures and Ordinances. Are we not
enfoxcing policies/procedures/ordinances consistendy? Lanning offered, that in a perfect world,
that would be ideal. However,when the ciry does embark upon this "strict"path,he often gets calls
from Council members, etc. asking why are things done in the manner they are done. The
investment policy serves as a specific example.
11: Obtain 8%Bottom Line on all Enter�rise Fund D�artments. Lanning said this could be out of
our control, again based upon national and state economic issues. It might also be based upon fee
increases the Council chooses not to approve.
12: Develo� and Maintain Service Oriented De�axttnents. Lanning said this is so subjective that a
rational person could not develop a standard to measure"service oriented". He believes the city is
already doing this.
Reed agreed this issue is administtative but the Council can still measuxe the city manager on the
issue.
Lanning asked how the Council would define a service-oriented department. He cited Siou�t Falls as
an example in where a citizen with a complaint may never get to speak to the pexson in charge,but
would have to leave a message with the receptionist. Complaints to the contrary are genexally
minimal and in 2 yeaxs,he has fielded less than 10 complaints system-wide. He believes all city
depaxtments are already service-oriented and there isn't an accurate measuring instrument to put in
place. It's too subjective. Reed agreed that there axe subjective parts of the city manager's job and
the Council needs to be able to rank those. Lanning said the instrument is too subjective because
the managex can be penalized anytime a Council member doesn't like the manager's proposal or
what he ox she wears. The goals must be objectively measurable and within the manager's control.
Reed said if a manager is not doing the job that a council member thinks he or she should, that
council member needs a voice. This tool is the way;that is why the responses are averaged. Reed
didn't tivnk council members have a voice. Lanning said a council member could negatively
evaluate the manager based on a phone call from a personal friend. This would give members the
ability to measure and evaluate performance based on hearsay or who likes or doesn't like the
manager.That is the problem with that type of ineasuxement.
13: Work with Utilities to guarantee $1,750,000 transfer. Lanning asked how to do this. The City
has almost zero control over the Utilities operations. Lanning could solve this by suggesting that
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any future bonding be tied to the transfer level and if Council chooses not to do that, there are few
to no avenues he can pursue to make this a xeality.
O�ien di,rcussion:
Bartley said Lanning suggested the Council utilize a professional to help the Council develop a tool
and procedure for annual goal setting for the Council and the Manager. If the Council tries to take
on too many things it will do nothing well. The Council needs to narrow its goals and to think of
the bigger picture.
Thomson was not completely supportive of using consultants because sometimes it is an avoidance
technique. She suggested xevising last year's evaluation tool plus adding goals. She said she
wouldn't care for the proposed document either if she were the city manager.
Lanning said the entire evaluation process principle is sound. The city council needs to deterinine if
they axe being effective and if the city manager is being effective. It requixes a different and broader
line of thinking on paxt of the council to develop broadex goals. This should staxt with the Council's
self examination of what do they want to do.
Lanning recommended bringing in a city manager that he knows with 35 yeaxs of experience that
can assist the Council during these processes. It would be extremely beneficial to the Council and
Manager to have assistance from that level of expertise. All successful goal setting sessions he's
been in have been with a professional facilitator. The goals need to be realistic,measurable and
agreed upon.
Munsterman said there needs to be continuity between current policies and goals linking to the
performance measurements. He feels there are currently gaps. Lanning said a facilitated process
would be healthy for the oxganization for many years to come and would provide continuity for
future city managers.
ACTION: A motion was made by Bartley, seconded by Munsterman, to direct the citp managex to
bring back three pxoposals to bring in a consultant to assist the Council in goal setting and in
developing the ciry manager evaluation tool.
Discussion on motion: Reed said the Council needs to brainstorm on the things it needs for
accountability before bringing in anothex city manager. There are subjective pieces to the p�ocess.
That is the li£e as a city manager. He felt every time the Council does a session like this it takes out
the council's voice one more rime. He didn't agree that now was a time to bring in a consultant.
Thomson said there is•a lot of information on evaluation tools available. Brookings isn't the only
city with home rule government and a city manager. She suggested doing more research to get other
tools. Lanning said it isn't the evaluation tool that the council needs help with,it is the person to
guide the Council to its goals and purpose and how to get thete. What is important is how to get
there. It's almost impossible for the City Council as a group,given the differences in positions, to
arrive at a conclusion. Getting help from a professional to achieve the goal is important.
Bardey said the Council could review the proposals and then determine if it would be worth the
money. He said this form of government has e�sted for 7 yeaxs and still isn't opexating the way it
should. Bringing in someone from outside could help the Council evaluate where it is flawed and
put them back on track.
Reitz asked if the council would need to bring in a consultant in every year. Lanning said no,only
every time the Council reaches a juncture where it has lost its way or hasn't re-evaluated where it
wants to go. Every time the Council thinks it is time to refocus.
Reed asked that the manager bring back three proposals. This was added as a friendly amendment.
All present voted yes;except Bezdichek,Thomson, and Reed voted no;motion carried.
Apri125`�Agenda. The City Manager responded to questions pertaining to the action items on the
agenda.
A�enda Btiefing. Shari Thornes,Brookings City Clexk,provided a briefing on the future agenda
items.
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Council Invitations. Thornes reviewed the Ciry Council's upcoming invitarions and obligations.
C� Council Member introduction of topics for future discussion
The Chamber will be invited to the May 9`�meeting to clarify the new contract provisions and further define
the spending authority.
6:00 P.M. CITY COUNCIL MEETING
Consent enda: ,A proclamation was added to the agenda. A motion was made by Reed, seconded by
Whaley,to approve the consent agenda which included:
A. Council Agenda as amended.
B. Action on Resolution No. 37-06, a Resolution Awarding Bids On P3245(00) PCN
HOOQZ22"d Avenue Asphalt Resurfacing and Pavement Marking Project.
RESOLUTION NO.37-06
RESOLUTION AWARDING BIDS ON P3245(00)PCN HOOQZ
22HD AVENUE ASPHALT RESURFACING AND PAVEMENT MARKING PROJECT
WHEREAS,the City of Brookings has received the following bid for Project P3245(00)PCN
HOOQZ 22°a Avenue Resurfacing and Pavement Marking Project:
`Bowes Construction,Inc." $233,014.21
NOW THEREFORE,BE IT RESOLVED that the low bid of Bowes Construction,Inc.of
Brookings,SD in the amount of$233,014.21 be accepted contingent upon the concurrence of the
South Dakota Department of Transportarion in the award of rhe bid.
C. Action on various appointments: Daniel Vos-Park/Rec Board student (5/1/0�,Keith
Rounds-Park/Rec Board (5/1/11),Jessie Kuechenmeister-Disability Committee (5/1/0'�,
and Joel Vaxgas-Human Rights Comtnittee (5/1/07).
D. Action to award bids for automated garbage truck. Bids were opened on April 18,2006
was for an automated truck with one bid received from Sanitation Products,Sioux Falls,SD,
for$154,969 plus trade in of a 1991 rear loadex. Bid was awaxded.
All present voted yes;motion camed.
Ordinance No 10-06—Budg�et Amendment A motion was made by Thomson, seconded by
Reed, to approve Ordinance No. 10-06,Budget Amendment#2. No comments were received. All
present voted yes;motion carried.
Ordinance No. 11-06—DrainaQP- A motion was made by Reed, seconded by Thomson, to
approve first reading of Oxdinance No. 11-06,amendments to the Subdivision Ordinance pertainuig
to drainage plans. Discussion: Dave Bertelson requested the language in the ordinance to change to
state"May"instead of"shall"be designed by a registered soils or civil engineer. Alan Lanning said
if that change were made there wouldn't be any point in passing the oxdinance because it wouldn't
have any teeth. The developers must be required to provide accounta,bility for the drainage.All
present voted yes;motion carried. Public Hearing scheduled for May 9�'.
Ordinance No 12-06-Rezoni � A motion was made by Bardey, seconded by Reed,to approve
first reading of Ordinance No. 12-06,to rezone Lots 9-12,Bla.irH�ll Addition from an Agricultural
A District to a Residence R-1B District(15th Street South and 17th Avenue South). All present
voted yes;motion carried. Public Hearing scheduled for May 9�'.
Ordinance No. 13-06—Rezonin� A motion was made by Reed, seconded bq T'homson,to
approve first xeading of Oxdinance No. 13-06,to xezone the west 165'of the east 650'of the S'/z of
the NW'/a of Section 1-T109N-R50W from an Agricultural A District to a Residence R-2 District;
and the east 485' of the S'/2 of the NW'/4 of Section 1-T109N-R50W from an Agricultural A District
to a Residence R-1B District (24th Street South and 17th Avenue South).All present voted yes;
motion carxied. Public Hearing scheduled for May 9�'.
Ordinance No. 14-06. A motion was made by Reed, seconded by Whaley, to approve first reading
of Ordinance No. 14-06, an ordinance establishing a policy for the first reading of orclinances in the
City of Brookings, South Dakota. All present voted yes;motion caxried. Public Hearing scheduled
� for May 9`�.
Pr clamations: The Mayor proclaimed Apri128`�as Arbox Day and May 1-5 as Municipal City
Clerk's Week.
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A motion was made by Whaley, seconded by Reitz,to adjourn. All pxesent voted yes;motion
carried. Meeting adjourned at 6:23 p.m.
City of Brookings
� c�?Y oFB , unsterman,Mayor
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Shari Thornes,City Clerk