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From YouTube: July 28, 2014 Ways & Means Committee Meeting
Description
Minneapolis Ways & Means Committee Meeting
A
Good
afternoon,
how
are
you
all
today's
regularly
scheduled
meeting
of
the
Ways
and
Means
Committee,
which
I'll
call
to
order
now
I'm
John
Quincy,
chair
of
the
committee
joined
by
council
members,
yang,
bender
and
Johnson,
and
we
are
quorum
of
the
committee,
so
we
can
continue
and
do
our
work
there's
a
number
of
items
on
our
rather
brief
agenda.
It's
actually
22
items
all
on
our
consent
agenda,
the
first
item
being
to
legal
settlements.
Then,
from
the
city
coordinators
office
we
have
the
city
of
Minneapolis
charitable
campaign
program
and
from
the
communications
department.
A
There's
the
acceptance
of
donation
of
billboard,
time
and
broadcast
time
from
Clear
Channel
and
comcast
cable.
The
convention
center
continue
continues
its
work
with
the
Target
Center
renovation,
finance
and
property
services
department
is
bringing
forward
three
items:
the
American
Disabilities
facility
compliance
surveys,
a
Dakota,
County
Technical,
College
internship
acceptance
of
a
gift
of
a
three
week:
internship
from
Dakota
County,
Technical,
College
and
nicollet
mall
reconstruction
authorizing
the
release
of
RFPs
for
financing
options
for
nicollet
mall
reconstruction.
The
IT
department
brings
forward
three
items.
A
One
is
on
the
advance,
Public
Safety,
Program
and
information
technology
terms
and
conditions
and
authorizing
to
insert
additional
IT
specific
terms
and
conditions
into
future
rfps
at
I.
T's
discretion
and
work
with
the
city
attorney's
office
to
amend
those
TNCs
from
time
to
time
is
necessary
and
the
final
item
from
IT
is
the
managed
services
contract
increasing
unisys
corporation
managed
services
contract
by
1
million
dollars.
A
See
the
community
development
regulatory
services
committee
is
bringing
forward
two
items.
One
is
the
Minnesota
Department
of
Employment
and
economic
development,
redevelopment
grant
program
applications
and
then
environmental
remediation
grants
series
of
those
awarded
from
deed
as
well.
The
health
environment
and
community
engagement
committee
is
bringing
forward
a
transportation
engagement
efforts
revolving
around
Hennepin
counties.
Second,
7.5
%,
neighborhood
revitalization
program
funds
and
the
minnesota
state
environmental
grant
applications
just
authorizing
execution
of
grant
agreements
with
MPC
a
related
to
applications
for
the
environmental
assistance
grant
program
and
public
safety
and
civil
rights
and
emergency
management
committees.
A
Bringing
forward
two
items.
The
minneapolis
public
housing
authorities
authorizing
a
contract
in
the
amount
of
100
8825
to
support
a
sergeant
investigator
for
one
year
in
relation
to
mph
a
Housing,
Choice,
Program
and,
of
course,
authorizing
the
contract
with
echo
in
the
amount
of
54,000
750
in
support
of
the.
A
If
you
see
something
say
something
public
awareness
campaign,
transportation
of
Public
Works
is
bringing
forward
one
two
three
four
items
all
related
to
bids
and
the
Cedar
Avenue
sidewalk
modification
project
and
disposal
and
hauling
and
exit
of
excavation
spoils
and
the
45th
avenue
north
and
irving
avenue
north
ally
construction
projects.
Are
there
any
questions
or
comments
from
committee
members
on
those
22
items?
A
Seeing
none
move
the
22
items
for
approval,
all
those
in
favor,
please
say:
aye
aye
opposed,
nay
it
they
all
magnificently
pass
namus
way
so
which
gets
us
to
our
exciting
part
of
the
day,
as
sandy
christensen
is
able
to
take
us
through
presentation
on
services,
for
internal
service
fees
and
an
internal
service
funds
and
the
continuing
saga
of.
What's
our
budget
like
this
year,
we
got
to
come
up
with
a
snappy
name
for
that
I.
B
Will
endeavor
for
a
snappy
snappy
title
in
lieu
of
a
snappy
title
I'll
introduce
today's
topic,
as
you
mentioned,
chair
Quincy
are
in
our
ongoing
overview
of
various
factors
that
impact
the
city's
budgeting
process
today,
I'm
here
to
talk
to
you
about
generally
the
city's
charges
for
services
and
fees,
and
specifically
the
internal
service
fund,
charges
that
are
used
to
allocate
costs
internally
within
the
organization
definition
of
charges
for
services
and
fees.
They
sound
very
similar.
B
Typically,
a
fee
is
a
charge
associated
with
a
reimbursement
of
costs
for
of
a
previously
provided
service
or
of
an
anticipated
service,
and
will
generally
see
those
when
we
look
at
business
licensing
fees
or
for
fees
associated
with
the
issuance
of
a
permit,
for
which
there
will
be
additional
work
provided
by
city
staff
in
terms
of
inspections
and
so
on.
Both
of
these
fees
are
calculated
on
a
full
cost
basis.
We
may
not
charge
more
than
the
full
cost
of
the
provision
of
these
services.
However,
policymakers
within
the
organization
may
choose
to
charge
less.
B
B
So
when
I
speak
of
on
a
full
cost
basis,
the
full
cost
basis
actually
incorporates
several
different
types
of
costs
that
we
allocate
to
a
specific
activity.
Direct
costs
are
those
that
can
be
directly,
as
the
name
implies,
can
be
directly
related
to
a
specific
service.
For
example,
if
we
look
at
a
building
inspector
going
out
to
perform
an
inspection,
these
salaries
and
wages
of
that
individual
will
be
considered
a
direct
cost.
B
So
for
indirect
costs,
what
is
our
basis
for
allocating
or
parsing
out
the
cost
for
these
support
services
across
the
individual
direct
service
cost
allocation
is
the
basis
that
we
use
for
determining
how
we
allocate
these
costs
to
the
direct
function.
It
is
the
assignment
of
the
common
cost
to
the
consumer
of
that
function,
which
would
mean,
if
we're
talking
about
the
support
function
within
an
organization
such
as
a
finance
or
a
payroll
type
of
activity,
an
individual
payroll
action
or
entering
of
data
and/or.
B
The
issuance
of
a
subsequent
check,
is
a
little
bit
difficult
to
quantify
individually
as
every
every
participant
in
that
organization
is
utilizing
that
service.
So
we
need
to
come
up
with
an
allocation
methodology
in
order
to
appropriately
spread
those
casts
out
over
the
direct
services.
Why
do
we
do
cost
allocation?
It
helps
us
track
all
the
costs
with
the
ongoing
operation
more
efficiently,
and
what
is
that?
B
B
You
would
see
that
in
the
provision
of
support
through
the
city
coordinators
office,
the
City
Clerk's
office
or
the
mayor's
office,
and
then
there's
also
the
costs
of
the
facilities
to
support
the
employees,
as
well
as
the
supplies
materials
that
they
may
need
so
departments
and
functions
within
the
city
of
Minneapolis.
That
would
qualify
in
that
category
would
be
our
property
services
which
manages
our
building
the
building,
rent
costs
and
depreciation
fleet
management,
services,
finance,
&
payroll
function,
human
resources,
information
technology
and
software,
as
well
as
the
city's
various
property
liability
and
work.
Comp
insurances.
B
So,
as
I
mentioned
earlier,
that's
really
the
basis
for
how
we
use
the
city's
costs
to
determine
what
what
an
individual
unit
of
service
would
be
an
appropriate
charge
to
an
individual
utilizing
that
service
within
the
city.
We
do
have
a
cost
allocation
mechanism
mechanism
to
to
parse
out
the
support
costs
throughout
the
organization,
so
that
we
have
a
better
idea
of
what
does
it
really
take
to
run
the
enterprise?
Not
every
department
has
their
own
payroll.
They
don't
have
their
own
information
technology
area.
B
So
it's
important
that
we're
able
to
utilize
those
larger
departments
and
determine
how
much
of
that
resource
is
being
used
in
on
an
individual
basis.
So
this
slide
is,
despite
being
rather
busy,
does
lay
out
the
internal
service
areas
within
the
city
of
Minneapolis.
The
engineering
materials
and
testing
area
is
an
area
in
which
we
track
the
the
goods
and
supplies
used
for
the
city's
pavement
program.
B
The
intergovernmental
services
area
is
the
area
in
which
we
track
the
city's
information
technology
provision,
telephones,
central
mailing
and
printing
property
services,
as
I
alluded
to
earlier,
pertains
specifically
to
the
overall
maintenance
and
rent
of
the
city's
facilities,
except
for
the
property,
the
City
Hall,
which
is
owned
facility
of
the
Municipal
Building
Commission.
We
also
have
the
equipment
services
fund,
more
often
ly
more
commonly
referred
to.
As
the
fleet
area.
We
do
manage
our
own
fleet.
The
cost
of
managing
the
fleet
are
then
allocated
out
to
the
individual
user
departments.
B
We
do
maintain
an
inventory
and
when
those
items
are
used,
we
do
cost
them
out
to
the
individual
departments
and
the
specific
services
and,
finally,
the
city's
self-insurance
fund.
As
you're
aware,
the
city
is
self-insured
for
work,
comp
and
liability.
We
do
purchase
purchase
policies
for
some
of
our
larger
properties,
but
what
the
self-insurance
fund
does
is.
B
One
other
area
within
this
city
that
is
not
specifically
categorized
as
an
internal
service
fund,
but
is
very
important
in
determining
the
overall
costs
of
providing
services
in
the
city
is
the
general
fund,
overhead
or
the
provision
of
services
by
departments
that
are
funded
in
the
in
the
general
fund.
So
again,
many
of
the
city's
support
functions
are
housed
in
departments
that
are
funded
through
the
general
fund.
In
large
part,
many
of
our
our
regular
non
specific
revenues,
as
well
as
property
taxes
and
those
functions
include
the
cities
for
large
part
to
finance
department.
B
The
coordinator,
Human
Resources,
the
city's
311
function,
the
clerk's
office,
civil
rights
and
inner
government
intergovernmental
relations
on
an
annual
basis.
The
city
goes
through
and
provides
a
calculation
to
parse
out
the
associated
costs
of
these
support
mechanisms
to
the
other
departments.
They
may
also
be
allocating
these
costs
to
other
support
department,
so
sometimes
it
gets
to
be
a
little
intertwined
when
human
resources
is
providing
functions
to
finance
and
property
services.
Who
is
then
providing
further
services
to
other
direct
service
departments.
B
Not
double
paying
ourselves
share
Quincy.
We
do
go
through
the
exercise
for
the
departments
within
the
general
fund
merely
for
the
purpose
of
determining
what
it
takes
to
support
that
function.
We
can
also
use
the
information
we
derive
from
going
through
that
exercise
when
we're
determining
the
fees
that
we
charge
to
outside
entities.
B
For
example,
if
we,
when
we
look
at
our
annual
licensing
business
licensing
fee
schedule
or
in
the
event
that
we
were
to
receive
payment
for
overtime
incurred
by
the
police
department,
when
they're
providing
supplemental
security
for
some
activity
downtown,
so
we
don't
charge
it
to
ourselves.
But
if,
in
the
event
that
we
are
performing
a
service
to
an
outside
entity,
we
would
utilize
that
information
to
fully
cost
the
activity
and.
A
B
Mechanism
of
performing
the
cast
allocations
is
really
one
of
the
first
steps
that
happens
in
the
annual
budgeting
process
because
they're
what
we
would
call
a
non-discretionary
or
largely
non-discretionary
costs
in
order
to
determine
the
current
level
of
services
or
to
maintain
the
same
same
level
of
services.
We
go
through
the
exercise
of
looking
at
what
is
it?
What
does
it
take
to
really
maintain
the
city's
base
function
and
provide
for
funding
for
that?
B
A
department
budget
there
are
several
different
line
items
you
would
likely
not
see
it
in
your
in
the
budget
book
that
the
city
posts
online,
but
in
an
individual,
departmental
budget.
There
are
about
three
different
types
of
activities
that
you
would
see.
A
information
technology
charge
is
reflected
for
those
services
provided
by
the
intergovernmental
services
fund.
B
B
I'm
and
again
just
reiterating
that
we,
the
general
fund
charges,
are
not
charged
out
per
say
to
the
other
general
fund
departments.
It's
mainly
for
a
nativity
activity
based
costing
exercise,
however,
because
there
are
several
other
activities
within
the
city
that
are
funded
through
non-property
taxes
and
other
revenue
sources.
Those
activities
do
reimburse
the
general
fund
for
the
functions
that
happen
in
the
general
fund.
A
B
So
a
little
bit
of
history
about
the
city's
internal
service
funds,
many
of
the
charges
and
budgets
through
the
years
were
determined
by
service
level
agreements
or
agreements
between
the
service
provider
and
the
customer
departments
as
to
what
what
level
of
service
we
want
you
to
provide
for
us
this
year
and
the
corollary,
the
promise
from
the
internal
service
provider
that
they
would
do
X
level
of
service
provision
and
or
so
many
units
of
service.
What
this
did
is
it
allowed
flexibility
to
the
department's
to
purchase
the
services
they
wanted
from
the
service
provider.
B
However,
because
the
there
was
the
opportunity
for
the
department
to
basically
buy
as
much
service
as
they
wanted.
Of
course,
if
they
didn't
want
much
service
than
the
internal
service
provider
received
less
revenue
which,
in
turn
provided
for
higher
per
unit
charges,
because
the
overall
cost
of
that
service
usually
didn't
waver
a
lot.
So
it
led
to
a
higher
cost
per
service,
which
would
then
lead
to
departments
wanting
less
service
because
the
cost
was
higher.
B
However,
when
the
organization
recognized
these
challenges,
they
put
in
place
a
workout
plan
which,
in
large
part
involved
transfers
from
the
general
fund
to
the
internal
service
funds,
to
bring
them
back
into
a
positive
position
and
to
allow
for
them
to
grow
and
maintain
the
appropriate
amount
of
fund
balances.
So
they
could
cover
any
contingencies
that
they
might
have
again.
The
original
workout
plan
was
supposed
to
go
through
the
year
2019.
A
B
So
what
changed?
So
it
changes
in
funding
methodology
now
support
long-term
financial
stability
in
the
internal
service
funds,
beginning
in
the
2014
budget
departments,
were
not
required
to
balance
their
budget
with
with
internal
service
charges
calculated
within
their
base
budget.
So
in
layman's
terms,
what
that
means
is
we
told
them?
Don't
worry
about
your
internal
service
charges?
You
worry
about
the
areas
of
your
budget,
that
you
have
the
control
over
your
materials
and
supplies
and
other
activities
and
the
organization
will
worry
about
taking
care
of
the
support
costs
through
the
internal
service
mechanism.
B
So
we
adapted
full
allocation
principles.
We
didn't
allow
departments
to
say
nan.
We
don't
really
want
to
have
that.
You
get
whether
you
want
it,
but
we'll
help
well,
tell
you
how
to
pay,
for
it
will
give
you
appropriate
to
pay
for
it.
So
don't
worry
about
it.
The
departments
were
provided
with
the
necessary
budget
appropriation
to
fund
these
charges,
and
the
internal
service
levels
were
then
determined
at
the
aggregate.
We
can
look
at
overall.
What
is
what
does
it
take
to
run
an
IT
department?
B
A
B
Going
back
to
a
previous
question,
chair
Quincy,
the
cost
for
the
internal
service
charges
are
one
of
the
first
items
that
are
taken
into
consideration
in
the
annual
budget
process.
We
consider
that
about
the
time
that
we're
looking
at
any
factors
for
salary
and
benefit
changes
due
to
existing
contracts
and
so
on.
So
it
is
one
of
the
first
items
we
consider
and
again.
The
the
new
methodology
for
allocating
internal
services
really
does
provide
for
an
requires
transparency
in
terms
of
ongoing.
B
In
the
long
term,
long
term
costs
of
the
city's
operations
we
have
to
fund
depreciation,
we
see
what
it
costs
to
replace
the
items
that
we
need
to
maintain
our
business.
We
see
equipment
replacements,
particularly
when
we
deal
with
the
information
technology
area,
as
well
as
the
city's
fleet,
software
maintenance
and
contractual
obligations,
particularly
those
costs
associated
with
multi-year
agreements,
in
which
there's
an
inflation
factor
that
once
we
buy
into
that
contractual
agreement,
is
an
obligation
that
we
need
to
take
care
of
right
away.
B
So
if
we
sign
an
agreement
with
a
software
provider
and
the
five-year
agreement
provides
for
a
three
percent
annual
increase,
that's
kind
of
the
first
thing
that
comes
off
at
the
top
of
the
list,
so
that's
in
large
part.
Why
we
do
consider.
It
part,
is
part
of
the
internal
service
charges
and
this
chart
I
think,
go
to
the
point
of
more
transparency
versus
covering
deficits
in
the
internal
service
funds
merely
through
the
transfer
of
resources.
B
The
bottom
line
that
you
see
on
the
chart
before
you
shows
the
transfers
that
were
made
as
part
of
that
workout
plan
to
resolve
deficits
in
the
internal
service
funds.
At
the
same
time,
we
recognize
that
that
a
full
allocation
methodology
will
really
offset
any
need
to
just
do.
Lump
sum
chart
lump
sum
transfers
in
order
to
solve
deficits.
So
you
see
the
blue
line
that
continues.
B
Moving
up
actually
shows
how
we've
implemented
full
allocation
of
the
cost
needed
to
fund
those
internal
services
and,
at
the
same
time,
the
need
for
us
to
transfer
over
lump
sums
to
maintain
financial
stability
have
been
eliminated.
So
you'll
see
those
costs
allocated
throughout
the
budget
within
the
individual
departments
when
they
bring
their
presentations
to
you
later.
This
fall.
C
You
cherry
Quincy,
so
this
is
actually
a
question
related
to
external
services.
So
I
just
wanted
to
ask
about
this,
though,
with
the
charges
for
services
and
fees
I'm,
sure
it's
very
similar
externally
that
we
look
at
the
total
cost
and
indirect
costs
as
well
and
then
factor
that
into
fees.
Now
that's
been
a
topic
with
certainly
the
home
tear
downs
over
in
southwest
Minneapolis
as
well
I'm,
just
thinking
ahead
to
budget
season.
B
Quincy
councilmember
Johnson
it
that's
I,
give
you
multiple
answers
to
that
same
question:
the
the
decision
to
fund
a
particular
activity
or
for
the
city
to
choose
to
do
act.
A
specific
activity
is
typically
not
made
on
the
premise
of
whether
we
can
charge
for
it.
The
activity
is,
is
something
that's
more
policy-driven.
We
can
then
determine
what
the
full
cost
of
providing
that
activity
is,
and
then
the
council
may
choose
to
charge
for
it.
B
That
said,
however,
often
when
there
is
a
policy
discussion
about
the
city
implementing
a
new
activity
or
expanding
an
existing
activity,
if
we
want
to
move
forward
with
a
charge
associated
with
it,
the
individual
departments
are
typically
working
very
closely
with
me
in
my
department,
in
the
budget
area,
to
determine
the
appropriate
amount
and
whether
or
not
they
should
be
making
any
linkage
between
the
two
again
the
Act
he
comes
first
and
the
revenue
may
or
may
not
come
later,
depending
on
subsequent
policy
decisions.
Great.
A
Time
a
report
on
these
and
permits.
Yes,
thank
you
good.
Thank
you.
Any
other
comments,
questions
great.
Thank
you
very
much.
It
is
what's
that
this
is
the
one
two
three
four
six,
that's
the
seventh
of
an
exciting
presentation:
we've
covered
debt
obligation,
City
revenue,
property
taxes,
expenditures
the
budget
process
and
then
the
capital
budget
process
and
what's
neck
comes
next,
is
license
permits
report.
Yes,.
A
An
increment
financing
all
follow-up
questions
from
this
committee,
so
thank
you
for
that.
It's
a
great
presentation,
I'm
sure,
it'll
be
added
to
the
website
which
is
available
for
everybody
to
view
in
the
finance
department
under
Stan.
Ewell
budget
process
is
the
day
with
that
I
think
like
to
receive
move
to
receive
and
file
this
report,
all
those
in
favor,
please
say
aye
opposed,
and
that
is
done,
and
so
is
our
agenda.
So
we
stand
adjourned.
Thank
you
very
much.