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City Council Minutes 04-13-2009 Special CIPMINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL APRIL 13, 2009 - 5 P.M. Members Present: Clint Herbst, Tom Perrault, Glen Posusta, Brian Stumpf and Susie Wojchouski Members Absent: None 1. Call to Order. Mayor Herbst called the meeting to order at 5:00 p.m. and declared a quorum present. 2. Capital Improvements Program. Jeff O'Neill opened discussion explaining the significance of the capital improvements program. Finance Director Tom Kelly proceeded with the CIP review noting that the reason for the CIP was to help finance projects for the future and aid in financial forecasting. The CIP is a five year program but Tom Kelly would prefer to have a ten year plan especially for major purchases. The CIP is a planning tool and can be adjusted as projects change. 2009 capital improvement items are those that the Council is fairly certain will get done this year. Council and staff reviewed the various items contained in the capital improvement program. Brian Stumpf asked about the amount of reserves that were used for fiber optics and what happens if the reserves are not replenished. Tom Kelly replied if that is the case then staff is prepared to start cutting expenses. Brian Stumpf said the City has been use to having the top of the line in equipment and vehicles but may have to scale back if the economy stays weak. Tom Kelly noted that with state bids and state contracts for equipment the purchase prices are very cheap. This makes it questionable whether the City can maintain old equipment as cheaply as they can buy new. Brian Stumpf asked Tom Moores if the City has a maintenance plan they follow for each piece of equipment. Tom Moores indicated the City does and it is followed. Brian Stumpf said when it comes to equipment there is what you want and then there is what you need. Tom Moores discussed the state bids and the savings the City can realize when purchasing off the state bid. Glen Posusta asked about the $ 100,000 listed for the new bucket truck. It was indicated that staff uses the new price for budget purposes but that does not necessarily mean they would buy the equipment new. Tom Moores explained their in-house replacement policy. Glen Posusta questioned by budgeting at the new price and buying use would staff use the price difference to buy something else. Tom Kelly said he would rather have staff budget high as if they were going to buy the item new. There was discussion on the various pieces of equipment listed in the capital improvements program and the need for each item. Tom Moores noted that some communities utilize abuy-back plan. There was discussion on the merits of buying used -vs- new and also the cost effectiveness of contracting services out. Clint Herbst felt the capital improvements program is just a guideline for staff to follow in planning for equipment purchases.. Bret Weiss, consulting engineer, said if there is a piece of equipment that they know they could buy used they would list the used price otherwise the price listed should be the price for a new model. Bob Paschke, Public Works Director said they look at the life cycle for the various pieces of equipment and there is a point where you pay more for maintenance and upkeep than what it costs to purchase new equipment. Plus there are safety issues that should be taken into consideration. Brian Stumpf asked on Page F3 about the reserve funds and if the figures shown at the end of 2013 is what they expect to have in the reserve fund for the purchase. Brian Stumpf also asked about the bond fund balance. Tom Kelly explained that this amount is what would be assessed against the property. In 2013 there would be reserves of $31,000,000. $17,000,000 of that would be other sources and the rest would new assessments. It was noted that there were funds budgeted for the new Public Works facility ($9,000,000) and the new fire station ($3,000,000). These are items that they want to keep on the list even though they may not be constructed in 2013. Susie Wojchouski asked about the sale of property and where those funds go. Tom Kelly replied if the property was purchased using general fund monies then the sale revenue would go back into the general fund. Glen Posusta asked about the balance of the storm sewer access fund being down. Clint Herbst said the City needs to know what expenditures are out there so they can determine whether the levy needs to be raised. Tom Kelly noted construction projects like well #6 and the 90th Street extension taking place would depend on future development. Clint Herbst said he didn't know if he wanted to pick out the items specifically from the CIP but rather get a general idea of the expenditures for 2009 and the years following. Clint Herbst said he would like to see the department heads have a rating scale for the projects. He felt this add credibility to the projects being proposed. Jeff O'Neill said in coming up with the levy amount the City has a figure that reflects what the City really needs without depleting reserves. Glen Posusta stated that the reserves have been depleted enough. Specific projects were discussed. Glen Posusta questioned the improvements to Cedar Street and School Boulevard for $500,000. It was explained when Wal-Mart was constructed it was thought that another signal would be needed. The idea was that Wal- Mart would pay'/2 the cost of the signal and Shawn Weinand would pay the other'/z. The agreement was that if the signal was not needed by October 2009 the money would be given back. Bret Weiss reported that a traffic study was done and the intersection meets warrants for a signal. On the CIP the signal shows as being funded $250,000 from special assessments and $250,000 from unspecified funds. Brian Stumpf said he didn't want to get in the position where the City is spending money just because it is there. Tom Perrault said he thought the Shawn Weinand property would have developed sooner. Council directed staff to look into the terms of the agreement as far as the traffic signal. Glen Posusta suggested that maybe a roundabout might make more sense in this area than a signal. Glen Posusta asked about the improvements on School Boulevard for $300,000 for a pedestrian crosswalk. He also asked about the street lights in the area. Jeff O'Neill said 2 that decisions on those projects would be determined at a goal setting session. Brian Stumpf asked about the TH 25 improvements/reconstruction in 2013. Brian Stumpf asked if MnDOT was responsible for that cost. Bret Weiss said MnDOT has 250 years of projects that they need to fund. Bret Weiss said a new transportation bill is coming out which will include high priority projects (HPP). If the bill is approved those high priority projects would have to be submitted to the legislature by June. Bret Weiss felt TH 25 would be good project for these funds. Bret Weiss suggested that the Council discuss looking at doing the TH 25 project. Brian Stumpf asked about the scope of the TH 25 project. Bret Weiss thought it would be from the freeway to County Road 11. Brian Stumpf asked why the City should be putting money aside for what is a state roadway. Tom Moores asked if MnDOT is resurfacing TH 25 this year. Bruce Westby thought it was in 2010. Brian Stumpf asked how the state could do just a mill and overlay when the City has reconstructed streets that are in better shape than TH 25. Bret Weiss responded that the state has decided to do maintenance work only and no reconstruction projects. Tom Perrault asked if the bridge replacement is still going to be done. He was told it will start in July. Jeff O'Neill asked if the City goes after HPP funds what level of project detail is needed. Bret Weiss said the City would need a cost estimate and a letter of support from MnDOT. There was some discussion on the funding process used for the HPP funds. Bret Weiss said it would be 20 years or so before the City would get a new bridge in. Glen Posusta asked about expanding the existing bridge. Glen Posusta felt the intersection of TH 25 and CSAH 75 is the bottleneck. Jeff O'Neill said while the City may not have the necessary detail they could submit a general plan. Bret Weiss suggested Bruce Westby contact MnDOT about a letter of support. Bret Weiss feels strongly that TH 25 is one project that several entities could support. The City can show they have studied several options. There was general discussion about roundabouts and whether truck traffic would use them. It was noted that roundabouts are pedestrian friendly. Susie Wojchouski asked about the $500,000 in 2012 for pathway construction (F-50). Tom Kelly responded that was general pathway construction and was not fully defined in the program but that it was pathway and park improvements. Tom Kelly said when the City does these projects they need to look at the impact it will have on operations. Susie Wojchouski asked on page F58 about $250,000 for recreation addition but up to this point nothing has been said about. Tom Kelly responded it is the MCC's former skate park which is proposed to be used in some other fashion. It was also noted there is a band shell proposed for Pioneer Park. Glen Posusta asked about the $30,000 pool toy. Clint Herbst felt the City has to look at different ways of keeping interest up in the MCC. He didn't feel the MCC was big enough to bring in enough people to pay for the cost of operations Jeff O'Neill summarized the discussion. Clint Herbst discussed the expense with Bolton Menk for stimulus funding for the wastewater treatment plan. Jeff O'Neill said when they applied for the stimulus package funding they were under the impression that they would get a higher percentage of funding for the cost. Now they find that no more than 20% would be covered by stimulus funding. It was questioned if the City has to expend 80% of the total funds to get the 20% grant funds was it worthwhile. The Council was initially under the impression that a lot of the project cost would be covered by grant funds. Brian Stumpf said the Council would still be looking at the individual purchases as they come before the Council so it was felt no other review of the CIP was necessary at this time. Tom Kelly said the CIP would be an annual review done at the beginning of the budget cycle. The workshop shop closed at 6:30 p.m. 1'J as~x`~r~ ~J =~_.~.o S Recording Secretary 4