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HomeMy WebLinkAbout05-28-2013 CCWCALLED TO ORDER 6:00PM present: pearson, bloyer, nelson, and park Also present: Zuleger, bendel, and bell NELSON/PARK APPROVE AGENDA PASSED 5-0 Dean gave overview of agenda items. A. ADDITIONAL DISCUSSION ON 2013-2018 CIP PRESENTED ON MAY 14, 2013 Bendel gave overview of Debt service levies based on CIP and activity to date. There was a discussion of crossover bonds and previous bonding. Previously, all payments were being made solely to interest. Now principal payments are due and are part of the cost. Pearson questioned if the City can get by without the diesel exhaust filters in both fire stations. He also asked about warning sirens and which are needed. Zuleger stated that the central siren was needed for sure. He also noted the benefits of the proposed exhaust systems. Key factor is the transferability. OSHA inspections are also a consideration. They could force us to install a system. Zuleger noted that it was more likely that the dry hydrants would be closer to 6-8 instead of 12. Question of the placement of the dry hydrants. Council was ok with removing the public works sprinkler system. Discussion of the single-axle truck. It is a new truck for new staff, so that the city can do all the work itself instead of using contractor. Pointed out that truck is out of vehicle fund, not bonding. Discussion of using the vehicle funds for the diesel exhaust filters. Discussion of equipment replacement schedules. Discussion of “sinking fund” for future equipment needs. The potential contingencies were discussed. Nelson asked that the city adopt a replacement schedule as part of the budget process. He and park stated that they were in favor of the sinking fund concept. Bendel said she can get him the Zuleger proposed that if the sinking fund is adopted, it should not be touched. Should not just move the money around where the city needs it. Zuleger asked for direction on the new fire engine. Pearson asked for more clarification on what was wrong with current engine. Zuleger stated that the technology is not current. Expensive to repair, in part due to unavailability of parts. Some of the new houses being built make it more difficult to fight. Repairs were about $50,000 for the fire fleet last year. Discussion of the actual need. A discussion of the neighboring forces resources. Durapatch was going to come in lower- it is actually going to be $28,000. State contract for the bldg inspector vehicle would be lower- $20,000 Discussion about the park funds and what was a proper expense for those funds. Maintenance is a proper expense. Nelson has issue with maintenance equipment. From developer perspective. Discussion of the missing Keats figures. Keats is already underway. Now the City just needs to determine the bonding portion. The property tax increase will be $75 per $100,00. 2015 will be big year for LE. It was noted that Washington County is planning on moving up Lake Elmo Ave to 2015. Discussion about 5th street costs, needs, and what level is desired. Developer portion was also discussed. Nelson believes the parkway has additional benefits to the developer. The added benefits may justify a higher developer portion. Area-wide assessment and the street utility districts were discussed. Discussion about who should bear the larger portion of the new development roads, e.g. over-sizing, theming, etc. It was generally agreed that most of the realized benefit is experienced by the local residents. It was agreed that the theming cost should be much lower. It was proposed by Zuleger that it be a 70/30 split with developers. Council wants to see the figures and breakdowns before deciding. Nelson asked about the hwy 5 corridor mgmt & safety improvements. Zuleger said it should actually be about $15 for the beacon, but it is being kept there in case WashCo cannot obtain grants. MnDOT is doing the striping and resurfacing. WashCo is doing the median and turn lanes. LE could split the beacon cost with the schools. Discussion of the fact that 2015 LE will not be bank qualified (at the mercy of the markets) due to over $10 Mil. City will try to get that down below $10 Mil. Discussion of storm water factoring in. Village storm water was discussed. It was proposed that developers pay up-charge if they have zero lot lines. Retention and metering out will be key aspects. It was noted that Park funds were further discussed. Sanctuary park is planned. Will leave about $750,000 in fund. Discussion of what happened to Sanctuary developer. …. Water improvements were discussed. The poor state of the water system was discussed. The burden will be paid mainly by those who use the system. Discussion of how to reach cash flow. If the $6,000,000 in other revenue is not met, it will have to be found elsewhere and additional bonding may needed. If it is obtained, it will be tight, but cash flow will be sooner. Water rates are already high and cannot be increased. Sewer is much better. This utility cash flows. Water fund does not because of the debt. Surface water- majority of that spending is in the village. City may be asked to pay for portion of study - $50,000. County will have other portion. All new developments are 100% developer funded. Nelson asked about engineering costs. Is there some of the rudimentary work that can be done by an in- house engineer. Zuleger stated that the institutional knowledge because we are so behind is really invaluable. As the city grows, it may change. Perhaps at 15,000 the City could hire an in-house engineer. The majority of staff increases will be in the field (public works, utilities, etc.). Nelson asked if a fully built out city would need the engineering we have. Zuleger stated that at some point, a city would only need a streets superintendant and a utility superintendent. Pearson asked if some department heads could wear more than one hat. He noted that the Hudson fire chief is also the water person. Pearson asked Zuleger to look into the option. B. INITIAL DISCUSSION ON 2014 GENERAL FUND OPERATING BUDGET. Asking for 3% non-personnel budget cuts. Benefits will be kept the same. Zero percent wage increase. C. DISPOSITION OF CITY SURPLUS LANDS & BUILDINGS Looking at non-park city owned land. Parks bldg and Arts Center are potential places that can be placed back on the rolls. Lot on DeMontreville that is being used by residents as lake access could be sold to residents. There are several 201 sewer systems that cannot be sold. Question of if the city is willing to pay for appraisals for the properties. The properties would be put on the market and sold. It was the council’s consensus that an official appraisal should be done for the parks bldg. Deliverables: Fleet replacement Keats cost Each issue cost on levy Fixed assest schedule Truck inspection Better 5th street Job sharing responsibilities Adjourned at 8:54