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HomeMy WebLinkAbout02.13.12 Work Session Packet City of Farmington Mission Statement 430 Third Street Through teamwork and cooperation, Farmington,MN 55024 the City of Farmington provides quality services that preserve our proud past and foster a promising future. AGENDA CITY COUNCIL WORKSHOP February 13, 2012 6:30 p.m. 1. CALL TO ORDER 2. APPROVE AGENDA 3. FIRE TRUCK DISCUSSION 4. FAIRHILL PROPERTY 5. CITY ADMINISTRATOR UPDATE 6. ADJOURN PUBLIC INFORMATION STATEMENT Council workshops are conducted as an informal work session,all discussions shall be considered fact-finding,hypothetical and unofficial critical thinking exercises,which do not reflect an official public position. Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of a formal City policy position. Only official Council action normally taken at a regularly scheduled Council meeting should be considered as a formal expression of the City's position on any given matter. Committee Members • Justin Elvestad(co-chair) • Jason Greiner(co-chair) • Matt Donnelly(secretary) • Tim Pietsch • Jim Schmitz • Adam Fischer • Luke Fischer • John Powers nRer's?ue/Engine Agenda ❑ Introductions ❑ Apparatus ❑ Needs ❑ Questions 1 Apparatus D Chief Staff Vehicles • Chief officers and Fire Marshal take vehicles home and respond directly to scene. • Chiefs arrive and size up an incident,take command,and decide what types of apparatus are needed and how quickly they are needed. • Type of vehicle is important due to equipment each Chief must carry(four wheel drive) • Reduce liabilities and increased safety • Currently two short in the fleet,and two are past replacement Chief Staff Vehicles (8-10 year cycle) 2002 t.ord Expedition 2,11 d(rown it WI ia -. ..rolrl ',ill (lc Hip replaremr■l 1'192) _.- Apparatus i Fire Engine • Responds to all fire related incidents. • Carries firefighters to all incidents. • Hooks up to fire hydrant or static water source(Drop Tank). • Truck carries thermal imaging camera,multi-gas monitor, SCBA and spare bottles,ventilation fans,forcible entry tools,medical equip.,AED,RIT,apartment packs, standpipe connections,mobile data computer. This is our big tool box for putting out fires. (a 7 year replacement rotation cost is less than one FTE.7,14,21.) 2 Fire Engine (20 year cycle)I Station 1 Engine 1 (412 N 4`4111i''° • 20Df Pierce ,. ���'..° r Apparatus o Heavy Rescue • Responds to Rescue/Medical and Fire • Carries firefighters • No water • Truck carries:multi-gas monitor,SCBA and spare bottles, ventilation fans,forcible entry tools,medical equip., AED,mobile data computer,haz-mat,auto extrication equip.,vehicle and building stabilization,water rescue, ice rescue,rope rescue,rolling In aid kit • 20 Year Life Cycle X111∎ Heavy Rescue(20 year cycle) EMI R t'14 X77 1 J Apparatus ❑ Tender • Responds to fires in rural areas with no hydrants • Carries firefighter to incidents • Water(1500 to 3500 Gals.) • Carries Drop tanks • Tender 1 capable of drafting water from static source(Dry hydrant,pond,pool or lake.) Tender(20 year cycle) Apparatus ❑ Brush Trucks • Responds to brush and grass fires where bigger trucks will not fit. • Carries firefighters to all types of calls • Water(200 to 300 Gals.) • Carries hose • 4 x 4 for off road use • Police use during inclement weather 4 Maio Brush Trucks (10 year cycle) b( Apparatus o Aerial Ladder(future need) • Respond to Fire and Rescue • Carries firefighters to incidents • Limited water,hose,pump • Ladder for 75'to 134' • Functions similar to Heavy Rescue • Trending towards replacing Rescue 1 with Ladder (replacement in 2025) Aerial Ladder (future need) `1 4 A'',iNIMNAO d4'✓ASRYW f'";'r 4y spy ... - ,i, =-1.'‘''''"..--.... ro ' '.'" — " 44 ,, 5 Tools for Planning Truck Replacement ❑ National Incident Management System ❑ Insurance Services Office(ISO) ❑ NFPA(1901, 1720, 1026, 1500) ❑ Truck Mfg. ❑ National Transportation Safety Board Goal of Rescue/Engine Committee ❑ The goal of the Rescue/Engine Truck Committee is:Purchase a Vehicle that is cost effective to operate and maintain through its useful life!! Rescue/Engine Specifications ❑ Custom Chassis(5/6 firefighters,adequate storage) ❑ 2000 GPM pump(ISO) ❑ CAFS(reduces water needs,reduces water damage) ❑ Engine size(min 425HP to run pump) ❑ Independent front suspension(safety during driving) ❑ Light Tower(scene safety) ❑ Onboard Generator(used to run lights,power tools) ❑ Extrication tools(car accidents,forcible entry) ❑ Hose,Nozzles,Ground Ladders and Tools ❑ Bid vs.Consortium purchasing(HGACbuy.org) 6 Reasons for a Rescue/Engine ❑ Cost effective way to meet two needs for the City of Farmington and surrounding area (replaces 25+yr old Rescue 2 and add additional engine) ❑ Multi-purpose vehicle used for Fire and Medical calls ❑ Reduce the number of vehicles needed at car accidents(medical and fire suppression) a Have equipment to participate in Auto-Aid New vs. Demo vs. Used ❑ New purchase • Warranty • Built to City's needs • Layout of truck designed for efficient use • Possibly the highest initial cost • Faster delivery vs.Demo New vs. Demo vs. Used ❑ Demo Purchase • May not exactly fit needs of the City • Delayed delivery time • Vehicle Color? • Life expectancy slightly less • Higher maintenance cost • Possibly more affordable 7 New vs. Demo vs. Used o Used Purchase • Buying someone else's problems • Highest maintenance costs • Shortest operational life span • Limited availability • Least likely to meet the needs of Farmington • Large cost in adapting vehicle to meet needs • Lowest initial cost Vehicle Replacement Time Frame o Today • Engine to replace Rescue 2(1986) • Four Chief's vehicles • Tender to replace Tender 2(1989) • Three Brush trucks to replace Brush 1(1992), Brush 12(1991),Brush 2(1997) O 2013 • Engine to replace Engine 2(1993) -MI Questions 8 Overview of the Insurance Services Office(ISO), The ISO is a private organization that is subscribed to by some insurance companies. These companies use the data collected by ISO as part of a determination for insurance rates they charge their customers (mostly commercial policies). The ISO audits local fire departments every ten years or as requested by a department. Farmington Fire requested an adjustment(mini audit) in 2006 when we opened Fire Station 2. This earned some credit for us because we put a fire engine within a developed area where there was substandard coverage prior to 2006. This maintained our hydrant coverage area as a 5 rating. ISO ratings are a measurement of a fire departments capability. There are two main areas they look at when determining the rating, water supply and fire department operations. Each area gets assigned a rating number then averages of the two numbers become the city's rating. A scale of 1 thni 10 is used with one being the best. In Farmington our water supply is rated a 3 and fire operations is rated a 7. That makes our rating a 5. On the fire operations side they examine several things to determine our rating. Here is an overview in order of importance for the ISO rating schedule: • Pumping Capacity. We currently do not meet the required 3500 gallons per min for our buildings in the response area. • Engines, Ladder Trucks, Support Vehicles. This includes all the equipment and tools on the trucks. • Mutual Aid and Automatic Aid Agreements. More credit is given to auto-aid agreements. We currently have some in place and working on more. • Training. All of our training hours need to be documented to prove that we remain proficient at structure firefighting. • Pump, Ladder, Hose Testing. To assure our equipment is in good repair. • Inspection and Prevention. This is proven to lower the frequency and severity of incidents. • Communication. We share communication services through the Dakota Communications Center. • Preplan and On Site Tours. Site familiarization for firefighters on complicated buildings. The ISO can be a tool that we can look at when planning for the future of the department. There are several other tools that we use such as National Fire Protection Association Standards,National Preparedness Guidelines and best practices in the industry. ISO data can help us identify risks in our community and give us information on hazard analysis. Their data is a useful tool in planning and budget justifications for fire expenditures. When ISO changes a rating it translates into a cost savings or cost increase to policy holders that have property in the jurisdiction. This cost can be hard to determine as there are so many other variables that different insurance providers use. It is also a sliding scale for some insurers. For those insurance companies,the step between 3 and 4 makes less financial difference then is moving from a 6 to a 7. It is hard to determine actual dollar savings across the board. �o�FARMiyCity of Farmington Ni'z 430 Third Street , 1 Farmington, Minnesota %-4W4111,c4s 651.280.6800•Fax 651.280.6899 4sr•a rxov0 www.ci.farmington.mn.us TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman,P.E., City Engineer SUBJECT: Developer Assessments for 195th Street DATE: February 13, 2012 INTRODUCTION Based on the original PUD agreement for the Fairhill development,the developer's assessment for their portion of the project costs is scheduled to begin in 2013. In 2011,the developer sold the northern half of the subject property, and Council approved the new owners becoming a party to the PUD agreement. The developer retained development rights over the entire property. As part of that sale,the developer is also responsible for the entire amount of the assessment for the 195th Street Project. Because of this fact,the developer has approached the City and asked that the entire assessment be placed over the southern property that they still own, rather than spreading it across both the northern and southern properties since they are responsible for the entire assessment either way. HISTORY • June 2, 2008: The City and Astra Genstar Partnership enter into the original PUD contract for the development of the Fairhill site in northeast Farmington. Part of this agreement detailed the developer's contribution to the 195th Street Project. • June 2, 2008: The City awards the contract for the 195th Street Project. • Fall of 2009: The 195th Street project is open to traffic. • May 2, 2011: An amendment was approved that incorporated a new owner of the north half of the subject property into the PUD contract. PROJECT FINANCING Based on agreements with the developer and Dakota County, the City sold bonds to finance the initial construction of the project, and the developer and the County agreed to reimburse the City for their portion of the project costs over time. The County was to pay first, and then the developer was to have their portion of the costs assessed against the property beginning in 2013 for a period of 11 years. As additional security to ensure that the assessments are paid, the PUD agreement provides a mechanism for the City to take possession of the land and dispose of it to satisfy obligations should the developer not pay the assessments. Developer Assessments for 195`h Street February 13, 2012 Page 2 of 3 The County has fully satisfied their obligations for reimbursement. It is now time to put the assessments in place to satisfy the developer's financial obligations for the project. To that end, the developer has requested that the entire amount of the $4,632,010 assessment be levied against the southern portion of the subject property that is still owned by the developer. Staff has reviewed this proposal and believes that there is adequate security in place to allow the assessment of the entire amount across the southern portion of the subject property. In late fall of 2011, the City enlisted the services of an independent appraiser to determine the value of the land should the City have to take possession of it and dispose of it to satisfy the developer's financial obligations to the project. The appraisal was a "blind" appraisal as no information was shared with the appraiser as to the magnitude of the assessment, or the amount of money needed to secure the assessment. The developer reimbursed the City for the cost of the appraisal, but had no interaction with the appraiser during the appraisal process. Because of the nature of this "blind" appraisal, staff feels confident that the results of the appraisal are a very conservative estimate of the value of the property. The independent "blind" appraisal values the property at $5,700,000. FACTS TO CONSIDER • The developer's outstanding obligation to the City related to the 195th Street Project costs is $4,632,010. • The"blind" appraisal valued the land at $5,700,000. • An appraisal conducted by CB Richard Ellis on behalf of Wells Fargo in June of 2011, valued the property at $10,000,000 • The land provides an excess security for the assessment of over$1,000,000. • The developer has paid all bills presented in association with this project and the roundabout project. • The developer has already deeded the parkland for the development to the City. • The developer has a history of completing successful developments within the City of Farmington. • The developer gave (for no compensation) the City the necessary easements for the Pilot Knob Trail project. Developer Assessments for 195th Street February 13, 2012 Page 3 of 3 RECOMMENDATION The following recommendation will have the net effect of increasing the $1 million excess security listed above to $1.5 million. Based on the above-mentioned facts, staff recommends that Council consider the following arrangement for the assessment of project costs related to the 195th Street Project: • The developer be required to pay the City $441,144 from the assessment escrow being held from the sale of the northern property within 45 days of approval of the assessment(anticipated to happen at the March 19, 2012, City Council meeting). • The City assess the remaining $4,190,866 against the southern property still owned by the developer beginning in 2014 for a period of 10 years at an interest rate of 3.786%