City Council Minutes 01-23-2013 SpecialMINUTES
SPECIAL MEETING — MONTICELLO CITY COUNCIL
Wednesday, January 23, 2013 - 4:30 p.m.
Public Works Meeting Room — 909 Golf Course Rd, Monticello, MN
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf
Absent: None
Other: Jeff O'Neill, Bob Paschke, Tom Moores, Matt Theisen, Tom Pawelk, Ron
Hackenmueller, Wayne Oberg
1. Call to Order
Mayor Herbst called the Special Meeting to order at 4:33 p.m.
2. Purpose of Workshop: Capital Equipment Items, Maintenance, and Financing
Jeff O'Neill introduced the workshop and indicated this would include discussion about
capital equipment and possible financing via a bond as well as maintenance of vehicles
performed by the Public Works shop.
3. Consideration of identifying Capital Equipment items for purchase and authorize
issuance of a Capital Equipment Note for financing of these items
Bob Paschke explained that they had put together a list of capital equipment items based
on pricing on the state bid list. Brian Stumpf asked about the price listed for a brush
clipper (chipper); Tom Pawelk verified that $35,000 was the full price on the state bid
list. Brian Stumpf talked about the 2 -ton truck and felt that it was advisable to go with a
2 -ton to meet needs for heavy duty hauling. Clint Herbst asked if it was possible to get a
larger truck that could also be used for snowplowing. Tom Moores explained that would
really be too large for their needs and the cost is quite a bit greater.
There was discussion about the other truck listed for replacement. Tom Pawelk said that
one would be for the Parks Department and the price includes trade -in credit, box to put
on the back, and a tommy -lift. Brian Stumpf suggested perhaps they could keep the old
box and sell the old chassis on auction. Tom Pawelk noted that the box is quite rusted on
the existing truck and would advise a new box be purchased for the new chassis. Clint
Herbst felt the old truck would be worth more on auction if the old box were left on it.
Tom Moores talked about the proposed tractor /loader for $75,000. He explained that
they had brought this before Council previously but were asked to wait to replace the old
one. The current loader is a 1987 model and they would anticipate it could be traded or
sold at auction. Tom Moores noted it may be possible to find a used loader that would
work as well as purchasing off the state contract. Glen Posusta asked which size they
were looking at. Tom Moores stated they are looking at a 5000 series, which is smaller
than what they had proposed previously. This would provide multiple uses for the City
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and could be used in different departments. Public Works also has a New Holland tractor
that provides year -round uses and would be good to keep.
Torn Moores talked about replacing the proposed paint striping sprayer which was
purchased in 1990. Public Works takes care of most of the striping and painting in the
City. They have rebuilt it twice and propose to replace it with a slightly larger model.
Tom Moores stated the desire to replace the 1 -ton truck with a 2 -ton so as to meet the
heavy duty needs of Public Works. The 1 -ton truck does not have the braking power for
the heavy loads they have. He feels the 1 -ton would bring a good price on trade -in or by
selling it outright.
Tom Moores next talked about the tack trailer, which would carry a water tank. The
$30,000 cost includes a new tank plus the conversion needed to mount it on the trailer.
The old tank would be converted for use by the Parks Department.
Bob Paschke described the sign -lab system that Public Works would like to purchase.
The cost of $35,000 would include color plastic in addition to a variety of other sign
cutting and uses. Bob Paschke noted that he has checked and there are used systems for
around $21,000. Tom Moores mentioned this would include street signs, directional
signs, warning signs, and banners. Public Works would make the signs in house and
could provide this service for all departments. Bob Paschke noted that an optional cutter
could be purchased with the system and generally costs around $6500. In 2012, Public
Works spent about $26,000 for signs and posts. Bob Paschke itemized a list that would
comprise the entire system including a cutter. He explained some of the advantages for
having a sign -lab system in house. Lloyd Hilgart stated that he would like to know what
it would cost for Public Works to make their own signs versus purchasing the signs. He
feels that it would be good to know the payback for making signs in house. Jeff O'Neill
spoke about some of the benefits it could mean to the City for directional signage.
Council suggested that Public Works staff put together more numbers related to a sign -
lab system. Torn Perrault asked how long the City could expect that system to run
without any upgrades. Bob Paschke stated that Blaine has had theirs in use for about 7 or
8 years.
Tom Pawelk described the current brush chipper used by Parks and Streets to chip brush
and branches around town for both residents and for the city. Tom Pawelk would suggest
that they trade in the old chipper and has talked to the vendor about the possibility of a
trade -in.
Ron Hackenmueller asked about the possibility of replacing one of the building vans in
this purchasing cycle. During the tour, they will take a look at the van and the pricing
that Ron Hackenmueller secured. Ron Hackenmueller provided some information that
the Building Department compiled on various vehicles and the amounts that they might
cost. A van is preferred because it can be used for multiple purposes.
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Cathy Shuman explained what the Laserfiche system would include and some of the
benefits for the public and for city staff. Approximately $62,000 will cover the cost of all
the additional software and some equipment that is needed. There would continue to be
an annual maintenance agreement in the budget which includes online training and
technical support.
Wayne Oberg talked about the bonding process and how that would work with the
purchase of capital equipment. Wayne Oberg explained that the assets have to last at
least as long as the bonding period. The items that are selected to be included in the bond
can be adjusted before or after the bond resolution is approved. However, the City does
have to purchase capital items for the total amount that is bonded.
Wayne Oberg mentioned his plan to set up an internal service fiord to handle the
equipment allocation which will then charge back the costs to various departmental users
and, in turn, help repay the bond costs.
4. Discussion of maintenance of city fleet vehicles
Jeff O'Neill mentioned that there were questions regarding the ability of Public Works
staff to take care of city vehicles other than those at public works. Bob Paschke noted
that Al Gapinski runs the shop and generally takes care of most of the minor maintenance
for DMV and City Hall. He is usually pretty busy and doesn't have a lot of extra time.
Tom Moores mentioned that Public Works sometimes takes their vehicles to local service
stations for repairs. He indicated that they do take care of most oil changes for Public
Works and also DMV and sometimes Building Department. Brian Stumpf stated that he
would like to see the City utilize local merchants for some of the routine work.
5. Tour of Public Works shop to view equipment
A tour of the public works vehicles and equipment took place starting at 5:40 pm. The
group toured the Public Works and Parks Building reviewing equipment condition along
the way. It was determined that the power transmission utilized for the brush attachment
should be converted from mechanical to hydraulic. Council members commented on the
variety of equipment that is utilized by the Public Works Department in completing its
mission. It was noted that Public Works is highly versatile and creative with efforts to
repair or fabricate equipment needed for a special purpose, to complete a job or improve
efficiency.
6. Review of 5 -year Capital Improvement Plan 2013 -2017
The proposed Capital Improvement Plan was not reviewed in its entirety as part of this
meeting. Specific items proposed for purchase with a capital equipment note were
discussed.
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7. Adiournment
Mayor Herbst adjourned the special meeting at 6:55 p.m.
Recorder: Catherine M. Shuman OW)
Approved: February 11, 2013
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