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HomeMy WebLinkAbout04/06/1989 Council Minutes0 3 9 COUNCIL WORK SESSION APRIL 6, 1989 A work session of the Lino Lakes City Council was called to order by Mayor Benson, Thursday, April 6, 1989 at 4:00 P.M. Council Members present: Neal, Bohjanen, Reinert. Mr. Bisel arrived later in the meeting. City Engineer, Ron Stahlberg, Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson were also Present. WEST CENTRAL TRUNK IMPROVEMENT Mr. Stahlberg displayed two tag boards with maps referring to the above referenced improvement. One board contained a map showing the original route of the main trunk lines through the rear lots of five Rustic Lane landowners. The second tag board contained a map indicating a revised route for the main water trunk line running north on Sunrise Avenue to Rustic Lane then on Rustic Lane to Glenview Drive then east approximately 400 feet then north. The forced main sewer trunk main would start at the lift station on North Road then go north on Sunrise Drive to Gladstone Drive, then east to Antelope Drive to a lift station at this point. He noted that the'd•ifference in construction costs for the alternate route would eventually be less than the cost for the original plan. The alternate route would generate more hook ups, would be sized to service the shopping center area, would mean that there would be no utilities in wetland, would not require a DNR permit except for dewatering, there would be no right -of -way costs and would also avoid traffic concerns. The disadvantages would be a moderate increase in power costs, $50,000 additional construction costs, and would mean that the lift station planned for sometime between 1991 and 1995 would be moved up to 1989. Mr. Stahlberg recommended that the Council amend the improvement project to include the alternate route rather than the route through the wetlands. Mr. Bohjanen asked what would happen to the lift station located across the street from My Place on the Lake. Mr. Stahlberg explained that it would continue to service the Rice Lake Estates area and eventually the area on either side of Lake Drive to the north. Mayor Benson noted that the bottom line is that the alternate route is cheaper and in the best interest of the City. He asked Mr. Stahlberg if the shopping center plans changed the thinking regarding this improvement. Mr. Stahlberg said yes along with the fact that recently several preliminary plats have been submitted to the City Planner that were not anticipated during the planning of the original route. In addition there is a proposal to continue the trunk main lines all the way to Main Street. Mayor Benson noted that he has talked to several of the - Rustic Lane residents but none have contacted city hall to Set another negotiations session. He felt that it would COUNCIL WORK SESSION APRIL 6, 1989 probably be a moot issue and suggested that the Council make a decision on this matter on Monday, April 10, 1989. FIRE DISTRICT STEERING COMMITTEE RECOMMENDATIONS Mr. Schumacher handed out a memorandum dated April 5, 1989 outlining the status of major issued discussed by the Steering Committee to date. The major issues include Fire District formula, voting /budget and the purchase of equipment. The position of the Steering Committee with regard to the Fire District formula is to have the value of each home reflected in the formula, ie.: $80,000 Home = $32.46 for fire protection in Lino Lakes = $29.32 for fire protection in Circle Pines = $33.61 for fire protection in Centerville When the dollar difference between the cities exceeds a certain percentage, the low community will have to pay the higher community the difference. The question is at what level does this kick in? If it exceeds 59, 109 or 159? In addition this formula would be re- evaluated each year to see that it is working as the Steering Committee had envisioned. Mayor Benson explained that the whole idea behind this formula is equal fire cost for all homes thoughout the Centennial Fire District. The budget for the Fire District will be established two or three years in advance and this will help equalize the cost. Mr. Bohjanen asked if the renegotiated contract will cost Lino Lakes less than operation of its own fire department? Mr. Schumacher explained that this would be hard to calculate and that is one reason that the Lino Lakes Steering Committee members are trying to negotiate a shorter Fire District contract. Mr. Reinert expressed concern about using an average $80,000.00 home. He noted that in Lino Lakes the average value of a home will steadily increase and asked what this would do to the new formula. Mr. Schumacher said in theory nothing. Every resident in the Fire District would pay the same fire cost on an average priced home no matter what the average price may be. Mr. Reinert asked Mr. Schumacher to provide the Council with fire costs on a $90,000.00 and a $100,000.00 home in all three cities of the Fire District. He explained that he was concerned that the formula might be over simplified and not be what the Council understood. Mayor Benson asked each Council Member for their opinion of the proposed funding formula. All Council Members agreed to COUNCIL WORK SESSION' APRIL 6, 1989 pursue this direction. Mayor Benson said it does guarantee that all homeowners pay the same dollar amount for fire coverage if they have the same home value. Mayor Benson explained that an independent Lino Lakes Fire Department has been'considered. The "start up" cost would be approximately $500,000.00. The concern would be where would we get enough trained fire fighters. He noted that if Lino Lakes can negotiate a five or ten year contract with the Fire District, then after that period of time there will be trained fire fighters in Lino Lakes and this City will be in a better position to start a Lino Lakes Fire Department. We will have trained men and equipment and be in a much stronger negotiating position in the Fire District. As for now, he felt that Lino Lakes should stay in the Fire District, help establish a budget two or three years in advance and put caps on the budget similar to other City operating departments. Mayor Benson addressed voting strength in the Fire District. He suggested that if a decision in the Fire District is not unanimous, Lino Lakes should have a 50% or higher valued vote since Lino Lakes is paying a larger share of the cost of the District. This would refer to budget considerations only. Capital equipment and buildings would be a different matter. Mr. Schumacher explained the second most important issue is the operating budget. He suggested that the budget be put back in the hands of each city council in the Fire District. It should relate to levy limits or the cost of living factor. If there is a reason to exceed the agreed upon limits, the decision should be the concensus of all three Councils. He suggested that the same formula be used when purchasing major equipment. The third issue is the purchase of equipment. Currently the purchase of equipment is a part of the budget submitted to the three Councils. He suggested that the new Fire District contract contain minimum level funding for equipment. This would be a previously agreed upon dollar amount to be set aside in a "sinking fund ". The Fire Department can then make its own determination as to what equipment to purchase each year. If the purchase is significant, then the three Councils should make the decision by unanimous vote. If the Fire Department decides not to purchase equipment in a given year, the amount will remain in the "sinking fund" and be added to the following years deposit. The control of the "sinking fund" remains in the control of the three Councils at all times. Mayor Benson noted that he felt the Steering Committee should become a permanent committee. It should meet two to four times a year and address concerns as they arise and not allow a situat -ion similar to this one again. 04, COUNCIL WORK SESSION APRIL 6, 1989 Mayor Benson referred to a list of fire equipment prepared by the Fire Chief that may be needed by the Fire Department within the next ten years. The total cost is $1,672,000. This list includes an aerial ladder. It was suggested that this piece of equipment be deleted from the list and looked at in the future by'all three Councils. It was noted that for 1989, there is $92,000 in the Fire District budget for Lino Lakes. Mayor Benson suggested that possibly the amount budgeted for the "sinking fund" for each of the next ten years should be $80,000. There was discussion regarding how Lino Lakes would finance their portion of the $80,000. Mr. Schumacher explained that normally this type of equipment is purchased with equipment certificates. He suggested that this method be continued. There was additional discussion regarding whether or not $80,000 was sufficient to cover replacement equipment and additional equipment needed to equip the new fire stations. It was suggested that the Lino Lakes Steering Committee members propose $100,000 per year for this fund. Mayor Benson also noted that whatever Lino Lakes puts into this fund, Lino Lakes will be able to draw it out if the Fire District is dissolved. Therefore, if at some point Lino Lakes decides to establish a Lino Lakes Fire Department, there will be funds or equipment already set aside for Lino Lakes. Mr. Schumacher said that at this point it is important that a plan for purchasing equipment not financing equipment be drawn. Mr. Bisel noted that it would cost about $500,000 to start a Lino Lakes Fire Department.' Suppose Lino Lakes costs in the Fire Distist are 60% or 70 %. At what point would it be more feasible to start a Lino Lakes Fire Department. Mr. Schumacher explained that it would be difficult to determine. It is certain that there would not be the same level of service and it would cost slightly more to operate our own department in year #1. It would be difficult to answer this question regarding five or ten years in the future. Mr. Bisel asked what effect commercial growth would have on a fire department. Mayor Benson said he personally felt a Lino Lakes Fire Department would not be able to operate as efficiently as the Fire District. Mr. Bisel asked what effect would contracting the east side of Lino Lakes to Hugo or White Bear Lake have on the cost of a Lino Lakes Fire Department. Mr. Schumacher noted that the response time would be the same as the Centennial Fire District and he could not tell if there would be an appreciable difference in costs. Mr. Reinert said that he would rather pay 60% or 70% of an above average Fire District than something well below average. He suggested that the City wait until fire fighters are better trained and new equipment and buildings are in place before we seriously look at a Lino Lakes Fire Department. Mr. Bisel noted that the "out" clause of the Joint Powers 1 COUNCIL WORK SESSION APRIL 6, 1989 o43 Agreement was really bad. Everyone agreed and Mayor Benson said that this is an item that will be brought forward for review at one of the Steering Committee meetings. There was discussion regarding the change in mood within the Joint Steering Committee. Mr. Reinert noted that the level of respect has risen and everyone is more amiable. There was discussion regarding the length on the renegotiated Joint Powers Agreement. It was agreed to keep the time period as short as possible, possibly five years. A permanent Steering Committee was discussed. It was suggested that this committee be elected officials and not firemen or Fire Commission members. A concensus of opinion is needed on the following topics: 1) capital outlay for equipment and should individual cities retain ownership of the equipment; 2) fire stations, where they will be located and who will pay for them; and 3) operating budget, should it increase either on a cost of living or levy limit basis annually? Mr. Schumacher asked if the formula were to be determined based on inflation, should there be a cap on inflation? Mr. Bisel said he was concerned about costs getting out of hand and he did not want to tie Lino Lakes into a long term contract. Mr. Neal said he would like to get away from the Chairman Bruen situation. Mayor Benson said he felt he had a good indication on how this Council is thinking regarding the remaining points to be negotiated. Mr. Bohjanen moved to adjourn at 5:35 P.M. Mr. Bisel seconded the motion. Motion carried unanimously. 04 COUNCIL WORK SESSION APRIL 6, 1989 These minutes were considered, corrected and approved at the Council meeting on April 24 , 1989. arilyn G • Anderson, Clerk- Treasurer Amp* amin Benson, Mayor 1