Minutes - Public Works Committee - 07/19/2016

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amended finance policy presented by the Finance Department that would split and redistribute unused revenue funds. Chairperson Riley stated he had asked about this engineering fee. He felt it made sense if it involves an outside project but it does not make sense to add a 12% fee to a City project, such as a sealcoat project where staff time is not involved other than to look over the project road maps. City Engineer Westby stated when projects are brought forward to the Council, there are indirect costs (City staff to complete plans, financing, legal, and administrative). Those costs will always be included as they are an expense for the City. He stated the 12% fee is beyond the indirect costs and it is also added to City projects. Chairperson Riley stated this practice ends up inflating the City's project cost, creating `revenue' that is then redistributed. Councilmember Johns asked if staff's time (payroll) is actually charged to the project and how those funds are transferred. City Engineer Westby stated Engineering staff does track its time on projects but he is not sure how funds are transferred internally. The Committee discussed its preference to use the budget towards the actual sealcoating/paving project rather than creating Engineering department `revenue' that is then redistributed. Chairperson Riley stated support to reconsider the policy of charging 12% for internal City projects. Councilmember Johns stated an interest in receiving more information noting that with professional services, maybe Finance has to track it in a different way due to tax impacts. Councilmember Shryock also supported receiving an additional explanation of this policy in laymen's terms for discussion by the entire Council. The Public Works Committee agreed with the suggestion of Chairperson Riley to address this issue with the full Council during budget discussions. 6.03: Staff Updates on Improvement Projects and Items of Interest City Engineer Westby provided an update on active and proposed improvement projects including Mn/DOT, Anoka County, and City projects as detailed in the staff report. The consensus of the Public Works Committee was to cancel its August meeting as it falls on the same day as the Ramsey EDA Business Appreciation Golf Tournament. 6.04: Review Future Topics Calendar Councilmember Shryock supported a discussion with Anoka County about the need for additional directional signage or striping on Sunfish Boulevard heading northward to address vehicle conflicts. Public Works Committee/July 19, 2016 Page 7 of 8