HomeMy WebLinkAbout11-01-99 WSCOUNCIL BUDGET WORK SESSION
MONDAY, NOVEMBER 1, 1999
6:20 P.M.
In attendance: Mayor Duane Zaun, Councilmembers Betty Sindt, Tom Ryan, and Lynette
Mulvihill. Absent: Councilmember David Luick.
Also in attendance: Robert Erickson, City Administrator; Dennis Feller, Finance Director;
Don Volk, Director of Operations and Maintenance; Carl Rice, Street Superintendent; Tom
Spencer, Lead Worker/Service Technician; and Brian Kempa, Senior Accountant.
Discussion:
Dennis Feller began by providing the Council with an overview of the proposed 2000 tax levy
and related tax capacity.
TAXES
(1) Mr. Feller explained that the 2000 tax levy is $6,588,531; which is an increase of $668,475
over the previous year. The tax capacity rate is projected to increase from 19.119% to an
estimated 19.432%. Mr. Feller stated that the tax increase is attributable in part to the
Legislatures inequitable allocation of state aids for property tax relief. The market value tax
. levy for the 1994 Park Referendum Bonds will decrease from .0001456 to an estimated
.0001293 as a result of an increase in the tax base.
(2) Mayor Zaun asked staff to prepare a property tax comparison for 1999 and 2000 based
on a home valued at $140,000.00 assuming a 4% increase in market value. Mayor Zaun
also asked staff to analyze the state aids to school districts.
(3) Mr. Erickson emphasized that if levy limits are not removed by 2001, the City will encounter
serious problems as a growth community.
REVIEW OF EQUIPMENT FUND ISSUES
In response to specific questions raised at the October 19,1999 budget work session, Street
department staff provided the Mayor and Councilmembers with documentation related to
the proposed Street department capital outlay equipment.
Plasma Cutting Unit
(1) Mr. Spencer explained that the plasma cutter would be used for cutting snowplow blade
edges and fabricating heavy pieces of metal. Mr. Spencer has seen demonstrations of how
they work and feels they are excellent for use in metal fabrication. Mr. Spencer said the
department is looking for a better and more efficient way of building things, especially
during late night hours when the cutting unit is needed for snowplow repairs.
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(continued)
Council Budget Work Session
Monday, November 1, 1999
Page 2
Discussion: (continued)
REVIEW OFEQUIPMENT FUND ISSUES (continued)
Plasma Cutting Unit (continued)
(2) Mr. Ryan explained that his company's employees prefer to use a standard cutting torch.
Mr. Ryan gave support to staff for testing one on a trial basis before purchasing.
Automated Lubrication Dispensing system
(1) Mr. Spencer explained the current oil change process uses a wall mounted gravity feed
system which requires service technicians to fill containers. at the dispensing station and
manually carrying the containers to the vehicle.
(2) Councilmember Sindt inquired as to amount of time it takes to change oil in a vehicle. Mr.
Spencer stated it takes approximately 20-30 minutes to change the oil in trucks and
heavy equipment.
(3) Mr. Erickson asked Mr. Spericer to explain how the new system would work. Mr. Spencer
• explained that the technician would dial-up what type and quantity of lubrication they
need and the system would accurately provide the dispensing.
(4) Councilmember Ryan commented that the system was very expensive ($25,687) considering
the annual quantity ($8,000) of oil consumption. Mr. Ryan asked if staff has investigated the
possibility of an agreement with a vendor who would provide a system at no charge if the
City purchased their lubrications. Mr. Spencer responded that the City currently
purchases oil using the State of Minnesota cooperative purchasing agreement and a
vendor agreement would require the City to pay higher oil prices.
(5) Mr. Erickson directed Mr. Feller to evaluate the economic benefit of purchasing a
lubrication system compared to purchasing oil from a vendor who would provide a
similar lubrication system.
Sidewalk Maintainer
(1) Mr. Erickson indicated the City's only sidewalk maintainer is not in very good condition and
new maintainers are available on the State of Minnesota purchasing contract. Mr. Erickson
made reference to a City route map (received earlier by Council) indicating the numerous
miles of sidewalks and park/bicycle trails for which the City is responsible; i.e., plowing in
the winter and sweeping in the summer.
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(continued)
Council Budget Work Session
. Monday, November 1, 1999
Page 3
Discussion: (continued)
REVIEW OF EQUIPMENT FUND ISSUES (continued)
Sidewalk Maintainer (continued)
(2) Mr. Volk explained that this type of tractor is highly specialized yet multifunctional and
works very well on maintaining sidewalks and trails. The City's many 3 and 4 foot wide
trails are much too narrow for a jeep or a pickup truck to safely and effectively maintain.
(3) Mr. Ryan stated the cost to operate this size of maintainer is extremely high due to
repairs and maintenance.. Further, they are not very well built. Mr. Ryan asked staff
to consider outsourcing this particular function.
(4) Mr. Volk indicated that since the City will no longer use the maintainer for mowing, the
operating cost per mile will decrease, and the City can expect the current maintainer's life to
exceed over 2,500 hours of use. Mr. Spencer commented that mowing did cause a great
amount of wear and tear, yet the sweeping function worked very well. Mr. Ryan stated that
the sweeping and mowing attachments were the most costly to operate since those
moving parts had the highest breakdown rate.
• (5) Mr. Spencer noted the proposed maintainer has more horsepower (100 H.P.) than the City's
199E 65 H.P. maintainer. Also, the snowblower attachment has adequate power to clear the
trails after the street snowplows have cast their snow onto the trails.
(6) Mr. Rice emphasized the balloon tires and the total weight of the maintainer will not cause
damage to the single layer trails or abutting boulevards.
This work session adjourned at 6:45 P.M.
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