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110501 CC WS Min , . . . CITY OF SHOREWOOD CITY COUNCIL WORK SESSION MEETING MONDAY, NOVEMBER 5, 2001 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 8:30 P.M. or immediately following Regular meeting MINUTES 1. CONVENE CITY COUNCIL WORK SESSION MEETING Mayor Love called the meeting to order at 8:54 P.M. A. Roll Call Present: Mayor Love, Councilmembers Zerby, Turgeon, and Garfunkel; City Administrator Dawson; Engineer Brown; Finance Director Burton, and Liquor Operations Manager Swandby Absent: Councilmember Lizee B. Review Agenda The Agenda was accepted without objection. 2. DICUSSION ON ENTERPRISE BUDGETS Director Burton reported on the Year 2002 budget drafts for the City's Enterprise Funds, which include the Liquor Operations, Water Operations and Water Debt Service, Sanitary Sewer Fund, Stormwater Management, and Recycling Funds. Liquor Operations - Burton reported that the Liquor Operations budgets assume that business will be conducted as usual and sales and expenditures will be maintained at current 2001 levels. Due to the uncertainty with each location, the budgets had been developed very conservatively. It was brought up that the Tonka Bay store would have to be relocated when the County Road 19 constmction commences. The Liquor Committee will be meeting soon to discuss future liquor locations, whether it is in the strip mall or across the street temporarily at the Total Gas location. Swandby warned that a stoppage in any business, even for a short time, can be detrimental and the temporary location may offer a better alternative. Burton pointed out that, while we have a good working relationship with Tonka Bay and would hate to lose it; the question remains whether they want to be in the liquor store business at all. Brown stated that he hopes to meet with Mr. Mason, the mall owner, to discuss the major changes that the intersection will cause. Swandby reported that the Waterford Plaza lease is subject to renewal for the first time in 7 years and staff is negotiating to reduce either the amount of rent paid or the size of the space leased. Burton added that a reduced space is reflected in the budget. Because the store has consistently operated at a loss, the City's Auditor has advised that the City consider closing the location altogether if expenditures cannot be reduced. Mayor Love questioned whether we could run two locations better than three. Burton maintained that since the Waterford store has been a drain on the liquor funds, we'd be better off without it. Swandby added that it is difficult to recruit and keep part-time help; thus, by eliminating the third store, he could use his fulltime assistant managers more effectively. Water Budget- Burton reported that if one does not include depreciation, the City is cash-flowing just fine. She continued by . CITY COUNCIL WORK SESSION MEETING Monday, November 5, 2001 Page 2 of2 . explaining what effect the loss of the City of Victoria Tower Revenue had on the budget. In essence, she explained that in order for the Water Funds to be self-supporting, it will be important to find alternate sources of revenue to offset the loss of the Tower revenue. She pointed out that a water rate increase might be necessary by 2003 in order to assure the system is self-supporting, and that it can provide for improvements and enhancements. She encouraged staff to monitor the rates every year to ensure that we are charging enough to make necessary improvements. Brown added that radio drive by meter readers may be available soon and would be very useful. Brown indicated that since September 11th, the City has also received numerous FBI bulletins urging it to monitor and alarm many of its water facilities. Brown stated that, while the City has budgeted to alarm the two water towers, larger locks would be installed on the remaining facilities. Sanitary Sewer - Burton reported that the Sanitary Sewer Fund is in a good position. Budgeted capital improvement projects will be taking place in 2002. Brown indicated that a share in the vacuum jetter truck will be purchased jointly with other cities and that repair work of certain lift systems will take place. Stormwater Management and Recycling Budgets - Burton pointed out that the budgets are stable and balanced with Hennepin County Grant Funds. She noted that the average number of households participating in recycling had declined and discussion ensued of how to advertise, increase awareness, and encourage greater participation. Brown was surprised by the numbers and believed that the recent commingling of recyclables would boost participation. . Burton reported that they might want to keep their eye on the stormwater management fees. Brown noted that most cities charge roughly $15 per quarter for the service. Mayor Love suggested that this fund might offer a way to pay for acquiring existing or future wetland projects. Mayor Love asked about other sources of funding, including vending. Brown indicated that the vending monies totaled approximately $300, nowhere near the estimated $3,000 that had been hoped to be generated. Although rental revenues are encouraging, it is preferred the City get a concessionaire into Eddy Station in order to see greater results. 3. ADJOURN Turgeon moved, Zerby seconded, adjourning the City Council Work Session of November 5, 2001, at 9:45 P.M. Motion passed 4/0. Kristi B. Anderson Recording Secretary RESPECTFULLY SUBMITTED. Woody Love, Mayor .