HomeMy WebLinkAboutCity Council Minutes 05-13-1998 SpecialApproved Minutes
Special Council Meeting
May 13,1998
A special meeting of the Plymouth City Council was called to order by Mayor Tierney at
7:00 p.m. in the Public Safety Training Room, 3400 Plymouth Blvd., on May 13, 1998. The
meeting was called by the City Council.
COUNCIL PRESENT: Mayor Tierney; Councilmembers Black, Bildsoe, Johnson, Preus,
and Spigner.
ABSENT: Councilmember Wold.
STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Public Works
Director Moore, Park Director Blank, Finance Director Hahn, Information Technology
Manager Birnbaum, Risk Management Coordinator Pemberton, and City Clerk Ahrens.
Year 2000 Computer Issues
Information Technology Manager Birnbaum presented the staff report on the Year -
2000 project. The project is now entering its second stage. The first phase focused
on analyzing information technology issues, comprising both data and
communication systems. The second phase will analyze all control and electronic
equipment which might be impacted by the year 2000 event. He said that the City
faces much lower risk than many other units of government because of its up-to-date
infrastructure. Many systems have been superseded in recent years by systems that
are year -2000 compliant. For every major system in place that is not year -2000
compliant, the City has a strategy to supersede it with a compliant product. The
City's vulnerability is also reduced by reliance on larger units of government for
many essential services. For example, Hennepin County provides dispatch/9-1-1
service, and all but two traffic signals in Plymouth are operated by either Hennepin
County or the State of Minnesota.
Councilmember Bildsoe asked if the water treatment operations are year -2000
compliant, and if there are any contingency plans in the event of failure of a product
supplied by another agency.
Public Works Director Moore said that no computer system is used to operate the
water treatment plant. Computerized equipment is used for record keeping and the
alarm system.
Assistant Manager Lueckert said that the second phase of the year -2000 project will
check compliance of the lift stations, water treatment plant, audio visual equipment,
election equipment, and other equipment.
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May 13, 1998
Page 2
Information Technology Manager said that the City may need to deal with a year -
2000 failure of a product supplied by another jurisdiction, but it is often not possible
to have an alternative arrangement and the risk must be judged. He believes that the
year -2000 impact on City systems will be of inconvenience and not disruption of
service due to this planning process.
Councilmember Johnson requested that an article be included in the Plymouth News
on how the City is working on the year -2000 computer problem, with a follow-up
article when 2000 approaches.
Finance Director Hahn said that, if needed, the computer reserve fund could be used
to fund any year -2000 unanticipated emergencies.
Overview of City Insurance Programs
Risk Management Coordinator Pemberton presented the 1998 Risk Management
Report. Since 1989, the City has placed its Property/Casualty Insurance Program
with the League of Minnesota Cities Insurance Trust (LMCIT). The City has self-
insured workers' compensation exposure since 1980 and used the savings to fund the
Risk Management Reserve Fund. He summarized the coverages provided by the
LMCIT, as well as all deductibles. He explained that effective January 1, 1998, the
Minnesota Legislature raised the Municipal Tort Liability Statute to $300,000 per
person/$750,000 per occurrence. This has effectively capped the liability of the City
for claims arising out of Minnesota Torts. The Risk Management Fund had a fund
equity of $6,849,500 as of December 31, 1997. These reserves are used to fund the
conventionally insured program and claims falling within the self-insured retention to
include general and automobile liability, workers compensation and excess liability
claims including incurred but not reported claims and claims that have not developed
to their full potential. He said that the City has realized savings by self-insuring
umbrella coverage. This coverage would provide funding for federal actions and
vehicle/personal injury accidents occurring out of state which exceed the Municipal
Tort Liability statute. If the Council decided to purchase a $1 million excess policy,
the City's Municipal Tort Liability Cap would be raised to $1,300,000 per
person/$1,750,000 per accident.
In response to a question by Councilmember Bildsoe, Coordinator Pemberton said
that Brooklyn Park and Eden Prairie purchase an excess policy. He is aware that
Eden Prairie does so because of lack of a reserve fund and potential exposure. He
explained that if the City takes the waiver form, the total amount of insurance
becomes the new tort limit. The premium is less with the non -waiver form, but it
provides very little coverage.
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May 13, 1998
Page 3
Councilmember Bildsoe said that he does not favor the excess policy, but could
envision a large exposure if, for example, a police chase resulted in a serious accident.
The City Council could decide to pay more than the tort limit because it is the right
thing to do.
Mayor Tierney asked if the amount of Plymouth's reserve fund should be larger.
Finance Director Hahn responded that the strategy has been to allow the Risk
Management Reserve Fund to grow at the rate of inflation. It has done better than
that, and the 1999 budget will propose to no longer collect funds from other city
budgets for the reserve fund. He said that Plymouth spends more time, money, and
effort on safety than many other cities and the results show in the excellent record.
Risk Management Coordinator Pemberton said that the St. Peter disaster will result in
a slight reduction in all cities' upcoming dividend payments. In response to a
question by Councilmember Preus, Coordinator Pemberton said that the City bids
insurance every few years to ensure that the LMCIT provides the lowest available
premium rates for the broadest coverage. He noted that special coverage needs such
as open meeting law coverage and police professional liability coverage are generally
not in a standard private policy.
Street Assessment Policies
Public Works Director Moore summarized the staff report on the history of the
Special Assessment Policy. There have been few court challenges to the City's
assessment policies. The policy with respect to single family properties in the Street
Reconstruction Program has remained relatively unchanged for more than 10 years.
The City Council has made periodic adjustments to multi -family properties,
commercial, industrial, school, and institutional properties. He said that it is the
City's policy under the Street Reconstruction Program to assess 30 percent of the
project cost. At least 25 percent of the project cost must be assessed in order to be
eligible to sell bonds.
Finance Director Hahn said that the City issued bonds for the Street Reconstruction
Program about five years ago, and he will investigate it again this year based on the
number of other items proposed for bonding.
Councilmember Bildsoe suggested that the City should consider doing one large
reconstruction project rather than small portions of the City each year. This would
lower the City's cost for doing temporary repairs of roadways.
Councilmember Johnson said that the streets would then all need reconstruction about
the same time.
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May 13, 1998
Page 4
Director Moore said that the Street Reconstruction Program requires a large amount
of time working with affected residents. It would be difficult to adequately meet the
communication demands if the project were greatly expanded.
Skate Park Issues
City Manager Johnson said that one bid was received for operation of the proposed
aggressive skate park. The bid was from Four Down Skate Corporation in the amount
of 30 percent of the total gross receipts. He said the bid contained two exceptions to
the specifications: 1) The bidder wants the City to reimburse the insurance costs, and
2) The bidder does not agree with the $15 per occurrence for customers who do not
wear all of the required protective gear. The City Attorney has advised that since
formal bids were requested, the process should be completed in that fashion. The
recommendation is that the bids should be rejected because to overlook exceptions in
the bid specifications may be unfair to companies who may have bid had the
requirements been different. He said that Councilmembers could negotiate for an
operation management arrangement, but should not do so until the bids have been
rejected. If desired, the Council could authorize the staff to negotiate prior to bid
rejection. The Council could also authorize that the project be rebid. The consortium
skatepark bid was recently awarded to True Ride. The equipment is available from
August 13 -September 13 at the cost of $5,000.
Councilmember Bildsoe favored Option D in the staff report -- to reject all skate park
bids, to award the bid for the concrete parking lot, and to contract for rental of the
skate park from True Ride from August 13 to September 13, 1998, at the cost of
5,0000. This would allow the City to try out a skate park, without a long-term
commitment.
Manager Johnson said that the parking lot surfacing cost at the ice arena would be
paid by Life Time Fitness, whether it is asphalt or concrete. Life Time has agreed to
pay the parking area costs in an agreement which will be packaged with the original
agreement for purposes of levying one special assessment for LifeTime Fitness.
Councilmember Spigner expressed concern that the Four Down group has little
experience in this new business.
Councilmember Johnson questioned whether the City should be in the skate park
business. She explained the history of the consortium and said that she does not favor
an option which puts the City permanently in the skate park business. The City
would avoid insurance and storage costs by contracting with True Ride for the
temporary skate park.
Park Director Blank said that under the True Ride contract arrangement, users would
pay a fee, with a portion of the gate admission going back to the City.
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May 13, 1998
Page 5
Councilmember Preus expressed concern about the City subsidizing a business.
Mayor Tierney said that the City may eventually want to provide a skate park that
serves beginners to moderately experienced users, with a private company serving
more advanced users. The rental from the consortium bid would allow the City to test
the need and use of the equipment.
Park Director Blank said that he does not have high expectations for the level of use
during the one month period the True Ride equipment is available to the City. This
time will conflict with the state fair, Labor Day, and school opening, and the
equipment will have been operated in several other communities earlier in the
summer. He believes that the City should either get into the business completely or
not pursue rental of a skate park for this season.
Councilmember Spigner expressed concern that this timing would not provide the
City with a true test of the equipment use or level of need. She suggested that the
City reject both bids for skate equipment and award the bid for a concrete parking lot.
Councilmember Preus agreed that Plymouth could view the experience of consortium
equipment operation in other companies to decide what to do next year.
Councilmembers were generally in favor of the concrete parking lot at the ice arena
because it would be available for a future skate park or alternative uses.
The meeting was adjourned at 8:45 p.m.
yi
Laurie Ahrens
City Clerk