DEEPHAVEN CITY COUNCIL MEETING

MONDAY, NOVEMBER 19, 2007

MINUTES

 

 

1.                  CALL MEETING TO ORDER:  Mayor Paul Skrede called the meeting to order at 7:00 p.m.

 

PRESENT:      Mayor Paul Skrede, Council members Steve Adams, John Wheaton, Keith Kask and Kim Crockett

 

STAFF:           Police Chief Cory Johnson, Zoning Coordinator Gus Karpas and City Administrator Dana Young

 

2.                  PLEDGE OF ALLEGIANCE

 

The Council recited the Pledge of Allegiance.

 

3.                  APPROVE NOVEMBER 5, 2007 MINUTES

 

Motion by Councilmember Crockett to approve the November 5, 2007 Council minutes.  Seconded by Councilmember Adams.  Motion carried 4-0.

 

Councilmember Wheaton enters at 7:02 p.m.

 

4.                  MATTERS FROM THE FLOOR

 

There were no Matters from the Floor this evening.

 

5.                  UNFINISHED BUSINESS

 

A.                Prosecution Rates for 2008 (Steve Tallen)

 

City Prosecutor Steve Tallen was present to discuss his proposed rates for 2008 and to request his reappointment as City Prosecutor for 2008.  Steve Tallen stated that it has generally been a quiet year but there are several long-term trends that are worth noting.  First, courts are pushing costs down to the city level by now requiring that the Prosecuting Attorney maintain all files rather than the courts.  He stated that there would now be additional costs to cities for maintaining the files.

 

Second, the number of judges in suburban courts has been reduced.  He stated that he is not sure if this has had a negative effect as of yet.  Third, the statewide record system has been expanded, which now takes his staff a longer time to access.  And fourth, some fines, such as speeding, have been reduced.

 

In summary, he stated that the overall trend has been an increase in costs while revenues are going down, which is not a positive development for municipalities.  He stated that he has reviewed other client’s bills and noted that the bills have increased 15-20% due to the increased staff time.  However, Mr. Tallen stated that he is reluctant to increase his fee to the City at this time after only a six-month review of bills and doesn’t feel comfortable passing along an increase now without having better information.  He stated that for this reason he is only proposing a 2-½ percent increase in his monthly retainer and hourly rate for 2008.

 

Mayor Skrede asked Police Chief Johnson to comment on Mr. Tallen’s performance as Prosecuting Attorney.  Chief Johnson stated that Steve Tallen is a great asset to the Department and he is very satisfied with his service.

 

Councilmember Adams asked Mr. Tallen what is covered under his monthly retainer?  Mr. Tallen stated that everything is covered under the monthly retainer except for forfeitures and appeals, which are paid at an hourly rate.

 

Motion by Councilmember Wheaton to retain Tallen & Baertschi as City Prosecuting Attorney for 2008 with an increase of 2 ½ percent in the monthly retainer fee and hourly rate.  Seconded by Councilmember Crockett.  Motion carried 5-0.   

 

B.                 Adopt Ordinance No. 04-44, Amending Section 430 of the City Code

 

Administrator Young stated that Ordinance No. 04-44 was presented to the City Council on November 5th with the intent to address Section 430 of the City Code pertaining to the licensing of peddlers.  The ordinance proposed the following amendments to the existing ordinance:

 

1.      Reduce the license period from six months to fourteen consecutive calendar days.

2.      Clarify the hours of operation to 9:00 a.m. to 8:00 p.m.

3.      Limit the peddler’s access to the front door only.

4.      Requires the peddler to promptly depart following the successful or unsuccessful completion of the transaction.

5.      Prohibits any harassment.

 

He stated that the Council requested a further amendment to the ordinance that would include the establishment of a list of residents who do not want anyone to solicit at their residence and requiring peddler’s to adhere to the list.  He stated that this requirement has been added to the proposed ordinance under Section 430.05 Subd. 2 and 3.

 

Motion by Councilmember Adams to adopt Ordinance No. 04-44, An Ordinance Amending Section 430 of the Deephaven City Code creating additional language by limiting the hours a peddler or solicitor may conduct business and expanding the conditions of licensing.  Seconded by Councilmember Kask.  Motion carried 5-0.

 

C.                Review Comprehensive Plan

 

Zoning Coordinator Gus Karpas presented the Comprehensive Plan for Council review.  He stated that the plan had been amended following a number of revisions proposed by the Council at their November 5th meeting.  In addition to these revisions, he stated that three minor changes were added to the plan.  He stated that the question under the Housing Element was changed to a comment and the references to the city providing affordable housing removed.  He stated that a comparison of 1990 and 2000 median value of single family homes has been added and the reference to the average value has been removed.  And finally, he stated that two additional items have been added under the Residential Plan.

 

He recommended that the Council add any further changes to the plan and that a public hearing be held on the Comprehensive Plan on December 17th.

 

Motion by Councilmember Kask to approve the plan as submitted, for staff to prepare a final draft of the plan, and to schedule a public hearing on December 17th to present the plan to the public.  Seconded by Councilmember Adams.  Motion carried 5-0.

 

D.                Approve Firm to Conduct Audit of Financial Statements

 

Administrator Young stated that the Council was informed on October 1st that the audit firm of EideBailly was no longer interested in conducting the annual audit of our financial statements.  He stated that the Council authorized a Request for Proposals for audit services that same evening.

 

Proposals were sent to four auditing firms and two firms responded with the following offer:

 

Firm

Audit of 2007 Financial Statements

Kern Dewenter Viere

$19,850

Abdo Eick & Meyers

$19,889

 

Administrator Young stated that both firms are well qualified and each has extensive experience in conducting municipal audits.  He stated that Kern Dewenter Viere has 57 municipal clients in Minnesota and provides audit services for such area communities as Minnetonka, Medina, Minnetrista and Shakopee.  Their local office is in Brooklyn Park.

 

He added that Abdo Eick & Meyers has 95 municipal clients in Minnesota and provides audit services for such area communities as Woodland, Shorewood, Excelsior and Minnetonka Beach.  They also provide audit services for the Excelsior Fire District.  Their local office is in Apple Valley.

 

He stated that staff is firmly convinced that either firm would provide excellent audit services and both have offered a very comparable price.  However, he added that staff tends to lean towards recommending Kern Dewenter Viere for two reasons.  First, since staff already works with Abdo Eick & Meyers on the Woodland and Excelsior Fire audit, we thought there might be an advantage in going with a separate auditing firm to provide a clear comparison between the two firms.  And second, staff was very impressed with the proposal submitted by Kern Dewenter Viere, especially with the “special first year services” provided to Deephaven that is described on page 16 of their proposal.

 

Councilmember Adams stated that he has talked with several finance directors from the cities of Brooklyn Park, Minnetonka and Shakopee regarding their experiences with Kern Dewenter Viere and all provided a very positive recommendation.  He stated that he was informed that Kern Dewenter Viere was very professional and did a very good job with their management letter.  He added that his contacts also had very positive recommendations on their staff members as well.

 

Motion by Councilmember Adams to authorize Kern Dewenter Viere to conduct the audit of the 2007 Financial Statements in the amount of $19,850.  Seconded by Councilmember Wheaton.  Motion carried 5-0.

 

6.                  NEW BUSINESS

 

A.                Review Five-Year Utility Fund Projections

 

Administrator Young presented Five-Year Utility Fund Projections for Council review.

 

B.                 Internal Control Policy

 

Administrator Young stated that new auditing standards contained in the Statement on Auditing Standards (SAS) 103 and 112 are expected to have a significant impact on the manner in which audits are conducted and on the relationship between the audit firm and the client.  One tangible change resulting from SAS 112 is the need for municipalities to document their internal controls within a written and approved Internal Control Policy.

 

He stated that there are four primary reasons for the adoption of an Internal Control Policy:

 

1.      To clarify the roles and responsibilities of staff through the establishment of an Internal Control Policy.

2.      To enable an auditor to gather enough information to assess the risk relating to the client’s internal controls.

3.      To enable municipalities to undertake their own risk assessment to reduce errors, and limit the possibility of fraud and theft.

4.      To balance the goal of achieving a separation of duties for each internal control with the reality of employing a relatively small administrative staff.

 

Councilmember Adams noted that he would expect Kern Dewenter Viere to provide a review and their recommendations regarding the Internal Control Policy as well.

 

Motion by Councilmember Kask to adopt the Internal Control Policy.  Seconded by Councilmember Adams.  Motion carried 5-0.

 

7.                  REPORTS FROM STANDING COMMITTEES

 

A.                Public Works Committee

 

Administrator Young presented a review of the Public Works Committee meeting held on November 7, 2007 on the following items:

 

·         Traffic control issues on Ridgewood Road

·         Code Red emergency management notification

·         Paddle Tennis Park Improvements

·         Pedestrian / Bike Path to Robinson’s Bay Road & Co. Rd. 101

·         Hockey rink request

 

B.        Park Committee

 

Park Committee Liaison John Wheaton presented a review of the Park Committee meeting held on November 7, 2007 on the following items:

 

·         Paddle Tennis Park

·         Paddle Tennis Court Improvements

·         MCE Community Events

·         Park Committee Chair & Vacancies

·         Cell Tower lease revenues

·         Permit parking on Linwood Road

 

Discussion was held regarding the proposed improvements to the Paddle Tennis Court and clarification of the 2008 Park Improvement Fund Budget to ensure adequate funds were provided for both improvements to the Paddle Tennis Court and Paddle Park.  The Council requested that the Park Committee provide the Council with a recommendation on the expenditures for the platform tennis court and park landscaping improvements for 2008.

 

Park Committee member John Dupont was present to discuss the Committee’s recommendation concerning permit parking on the lake side of Linwood Road.  He stated that at the time of the recommendation, the Committee was unaware of the existing Easement Agreement that prohibits parking on Linwood Road.  He stated that he also now has second thoughts regarding the recommendation due to the curve and narrowness of Linwood Road.  He stated that he would like the Park Committee to reconsider their recommendation for permit parking on Linwood Road at their next meeting.

 

B.                 Boat Committee

 

Boat Committee Liaison Keith Kask presented a review of the Boat Committee meeting held on November 14, 2007 on the following items:

 

·         Welcomed new member Jim Van Bergen

·         Refined their proposed action items

·         Role of Committee in Relation to the City Council

·         Inventory assessment of boats

 

8.                  ADJOURNMENT

 

Motion to adjourn by Councilmember Crockett, seconded by Councilmember Adams.  Motion carried 5-0.  The meeting adjourned at 9:00 p.m.

 

 

Respectfully submitted,

 

Dana H. Young

City Administrator