Loading...
HomeMy WebLinkAbout04-14-14-Special WS �-SR�EN HILLS Approved: May 27, 2014 CITY OF ARDEN HILLS, MINNESOTA SPECIAL CITY COUNCIL WORK SESSION APRIL 14, 2014 IMMEDIATELY FOLLOWING THE REGULAR CITY COUNCIL MEETING ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the special City Council work session at 8:16 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden, Fran Holmes, Dave McClung, and Ed Werner Absent: None Also present: Director of Finance and Administrative Services Sue Iverson; and City Clerk Amy Dietl APPROVAL OF AGENDA The Council accepted the agenda as presented. 1. AGENDA ITEMS A. Delinquent Utility Billing Account Director of Finance and Administrative Services Iverson explained that at the March 31, 2014, City Council meeting, the Mayor directed staff to put together information regarding Mr. Khurana's appeal on his delinquent water bill. Staff has done some research of the records and put together a report. Director of Finance and Administrative Services Iverson stated that Mr. Khurana contacted several members of staff, including her; Accounting Clerk, Pang Silseth; and Public Works Director, Terry Maurer; several times over the course of the past few months. Staff has found no reason to believe that there is anything wrong with the City's water meter. Mr. Khurana was informed that staff is not allowed to write off any of his bill without approval of the City Council. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—APRIL 14, 2014 2 Director of Finance and Administrative Services Iverson reported that Mr. Khurana could have a leak in his irrigation lines. She indicated that the water lines have been tested and there are no problems on the City's side. She reported that this testing took place on October 24th. It is staff s opinion that Mr. Khurana used the recorded amounts of water. She requested that the Council provide staff with direction on whether an adjustment should be made to the customer's bill. Councilmember Holden commented that the irrigation company had noted that several heads were leaking, which would also lead to additional water usage. Mayor Grant was in favor of Mr. Khurana paying the entire water bill. He further reviewed the water testing completed by the City on October 24th. He noted that Mr. Khurana was using approximately 65 gallons of water per hour when his irrigation system was turned on. He questioned if the City sent out leak notices. Director of Finance and Administrative Services Iverson explained that the City sent out over 200 leak notices and received a great deal of calls from residents regarding these letters. She reported that these letters assist residents in managing leaking irrigation systems or running toilets. Councilmember Werner stated that based on the letter Mr. Khurana received from Great Northern Irrigation, he believed that the resident used the water and was not in favor of making an adjustment to the bill. The Council directed staff to contact Mr. Khurana and explain that his bill will not be adjusted and to encourage him to investigate the leaks he has in his irrigation system. B. Discuss Purchasing Policy Director of Finance and Administrative Services Iverson explained that the City's Purchasing Policy was last updated in 2004. Since that time, the State Legislature has revised Minnesota Statute 471.345 on Competitive Bidding and Quotes. Director of Finance and Administrative Services Iverson indicated that the Financial Planning and Analysis Committee (FPAC) is doing a review of all of the City's policies and has recommended the following updates: 1. Reflect current Minnesota State Statutes in regards to Competitive Bidding and Quotes. 2. Respond to our Auditor's questions concerning the coding of invoices. They raised concerns regarding our internal controls and the ability of the departments to manage their budgets if they are not coding their own invoices. (We may receive an audit comment in this area for 2013.) 3. New IRS regulations requiring the City to have a completed IRS Form W-9 on file before payments can be processed for vendors. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—APRIL 14, 2014 3 Staff requested that Council provide feedback on the proposed changes recommended by the Financial Planning and Analysis Committee. Councilmember Werner asked if the triangle sign had to be advertised for bid. Director of Finance and Administrative Services Iverson reported that the City followed State Statute word for word on the triangle sign and received several quotes for the project. Councilmember Holmes recommended a language change to the policy to ensure that the City's policy reflected back to Minnesota State Statute. Councilmember McClung suggested that Item 4 read: Other provisions as listed in State Statute. Councilmember Holden requested that the language regarding payment of bills be changed to read"pre-approved bills". Director of Finance and Administrative Services Iverson stated that she would make these changes. Councilmember Holden recommended that the job title listed within the purchasing policy refer only to the Finance Director. Further discussion ensued regarding how invoices should be coded by City staff. Mayor Grant and Councilmember McClung stated that the City did have a fiduciary responsibility to its residents and that Director Iverson was alerting them to proper accounting procedures and responses from the City's auditors. Director of Finance and Administrative Services Iverson stated that each department is allowed to delegate this coding work to a designee. She also commented that the finance department was short-handed at this time. She discussed how duties had to be delegated for auditing purposes. Councilmember Holmes was in favor of letting staff determine how invoices would be coded. Director of Finance and Administrative Services Iverson thanked the Council for their input. She asked if the Council was comfortable with the Purchasing Policy coming back for approval on the Consent Agenda at the next City Council meeting. The Council was in favor of this action. C. Discuss Fund Balance Policy Director of Finance and Administrative Services Iverson explained that the City's Fund Balance Policy was last updated in 2011 when the new GASB Standards took effect. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—APRIL 14, 2014 4 Director of Finance and Administrative Services Iverson reported that the Financial Planning and Analysis Committee (FPAC) is doing a review of all City policies and has recommended the following updates. The recommended updates to the policy are to: 1. Update titles and add in language for the internal service funds which we did not have at that time, and revision dates. 2. Change the language in item 3.a. under Policy Statements to have the Director of Finance and Administrative Services transfer any amount that exceeds 50% of the final fund balance after the audit number is known to the PIR Fund for the year. Staff requested Council feedback on the proposed changes recommended by the Financial Planning and Analysis Committee. Director of Finance and Administrative Services Iverson discussed how staff completed General Fund transfers based on audit deadlines. Further discussion ensued regarding the General Fund balance. Councilmember Holmes recommended that all transfers be made and that the fund balance information be brought to the Council. She was in favor of having the funds transferred to the PIR Fund when the balance was over 50%. Mayor Grant wanted to see PIR Fund transfers approved by the City Council. Councilmember Holmes did not believe that any transfers to the PIR Fund would need to be approved by the Council. Director of Finance and Administrative Services Iverson reported that she would bring the transfer to the City Council for approval after the audit was completed and update the language in the policy and bring the policy forward for approval. 3. COUNCIL COMMENTS AND STAFF UPDATES Councilmember Holden recommended that the Council have a discussion on City SAC and WAC fees and on how the TCAAP SAC credits from Met Council will be disbursed. Director of Finance and Administrative Services Iverson updated the City Council in regard to a previous question on delinquent utility bills and small balances that was brought up at the March 31, 2014, meeting. She explained that according to State Statutes and City Ordinances, letters need to be sent out to all accounts informing them of the upcoming certification of their past due balances and a public hearing. She noted that between the time the notifications were sent out and the hearing/certification date, some customers made payment plans or partial payments and these amounts are what remains of the original amount. Staff would not normally certify small balances, but these are from the original assessment roll and remain there as part of the process. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—APRIL 14, 2014 5 Council was satisfied with this process. ADJOURN Mayor Grant adjourned the special City Council work session at 9:06 p.m. �Qnu I-0� 441JAdd Amy Dietl 0 David Grant City Clerk Mayor