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Home My WebLink About05.01.89 Council Packet AGENDA COUNCIL MEETING REGULAR MAY 1, 1989 1. CALL TO ORDER 2. APPROVE AGENDA 3. APPROVE MINUTES a. April 12, 1989 Special Meeting b. April 17, 1989 Regular Meeting 4. CITIZENS COMMENTS a. Presentation of Plaques/Commendations 5. PUBLIC HEARINGS a. 7:30 P.M. - T.H. 50 Industrial Park Sanitary Sewer 6. PETITIONS, REQUESTS, COMMUNICATIONS 7. ORDINANCES AND RESOLUTIONS a. Solid Waste Ordinance 8. UNFINISHED BUSINESS a. Complaint Policy b. Demolition - 109 4th Street c. MPCA Revolving Loan Fund d. Review Plans and Specifications - Tanker Truck 9. NEW BUSINESS a. Approve 1990 ALF Budget b. Stormwater Management 10. MISCELLANEOUS a. Easement Over Ponding Area - Dakota County Estates 2nd 11. CONSENT AGENDA a. Blanket Approval - LMC Annual Conference Attendance b. Refund of Towing Charges c. School/Conference Request - Solid Waste Coordinator d. Approve Hiring of Permanent Part Time Clerk e. School/Conference Request - Liquor Store Manager f. Approval of Sexual Harassment Policy g. Approve Payment #1 to MacQueen Equipment - 90 Gallon Containers h. Approve Payment of the Bills 12. ADJOURN 13. ADD ON a. Appoint Kay Inouye to Fill Senior Center Advisory Council Vacancy b. Low Income Tax Credit Application THE AGENDA IS CLOSED OUT AT NOON ON THE TUESDAY PRECEDING THE MEETING. AGENDA REQUEST FORM • ITEM NO. C3VL NAME: Larry Thompson 1 DEPARTMENT: Administration �( A try---1- DATE: April 21, 1989 MEETING DATE: May 1, 1989 CATEGORY: Unfinished Business SUBJECT: Complaint Policy E%PLANATION• Tabled from April 17, 1989 meeting. REFERENCE MATERIAL/RESPONSIBILITY: Sent Previously REFERRED TO: (NAME) DEPARTMENT: Larry Thompson Administration Department Heads i SIGNA ": AGENDA REQUEST FORM �/. �.. 401/111111 rAiii ITEM NO. NAME: Larry Thompson DEPARTMENT: Administration DATE: "April 7, IV9 ,0)/0 MEETING DATE: .AREginc4;m0.41489404 s/! /f7 CATEGORY: Unfinished Business SUBJECT: Complaint Policy EXPLANATION: ettxc' e. �1-d % /7,//;4 REFERENCE MATERIAL/RESPONSIBILITY: Mem s REFERRED TO: (NAME) DEPARTMENT: Larry Thompson Administration Department Heads SIGNA'� MEMO TO: MAYOR AND COUNCIL SUBJECT: COMPLAINT POLICY DATE: APRIL 11, 1989. It is my understanding that the Council has directed staff to review the City's complaint policy and recommend any changes accordingly. I have enclosed the two existing policies (information and action requests) for your review. It should be noted that while the Action Request policy sets out various guidelines, it basically leaves it to the Department Heads discretion which complaints are logged. Because of the large number of requests that the City receives on a daily basis, it would not be feasible to record each one. It is my practice to keep all notes for future reference. It is also my understanding that the Council also discussed the possibility of requiring persons to sign a complaint form when initiating a complaint. I see this as being a problem from a practical as well as a legal standpoint. First, the City receives several calls a day ranging from potholes, noisy dogs, messy yards, weeds, snow removal, code violations etc. Many times the individual just wants to point out a problem, and doesn't want to get fully involved. The City staff relies heavily on the residents to be our eyes and ears for recognizing problems so that we may respond to them. I am concerned that a policy requiring signatures may discourage residents from filing complaints, concerns and so on. Second, the enforcement of the Code has generally been given to staff. Normally, when a complaint of a code violation is received, it is used as "information only", and the proper staff person is sent to investigate. If it is determined that a violation exists, the staff person becomes the person filing the complaint on behalf of the City. This is most common with police, building code, weed, nuisance and zoning violations. I am concerned that once the City was made aware of a problem, our legal obligation or liability to enforce would cease because the individual who initiated the complaint refused to sign a complaint form. In summary, while staff reacts to code violations, a majority of the citations are based on citizens complaints. I feel that requiring residents to sign complaints would result in a reluctance from phoning in complaints, and the City would lose a valuable tool in enforcing the ordinances. The system we utilize appears to be working well, as noted by the limited amount of complaints of non-response by City staff which reach the Council table. The Council could require staff to request the name of the individual issuing the complaint, but if the individual refuses to give their name, I feel staff should still react to it. Larry Thompson City Administrator cc: Department Heads file CITY OF FARMINGTON INFORMATION POLICY I. Purpose: It shall be the purpose of this policy to establish uniform rules and procedures regarding the reporting of information from City staff to the City Council. II. Type of Information: A. The following types of information shall be reported to the City Council, in writing, within 24 hours of receipt of such information: 1. Lost time employee injuries. 2. Property damage exceeding $1,000.\_ 3. Threatened or pending litigation. 4. Employee disciplinary action involving suspension, demotion or termination. 5. Complaints, recommendations, suggestions and so on, directed specifically to the Council. B. The following types of information shall be reported to the Council on a monthly basis: 1. Number and type of building permits. 2. Status of claims for damages against the City. 3. Updated Budget summaries. III. Responsible Authority: Department Heads shall be responsible for all information directly related to his/her department. IV. Data Practices Act: Information classified as private or non-public data under the pro- visions of the Minnesota Data Practices Act shall be clearly labeled and shall not be disseminated in any manner to any person unless indicated so. V. Method of Notification: Information shall be placed in the Council members' mail boxes at City Hall. This policy ratified by the City Council on the day of 1987. MEMO TO: DEPARTMENT HEADS SUBJECT: ACTION REQUEST FORMS DATE: DECEMBER 29, 1983 The following policy will be effective as of January 1, 1984: ACTION REQUEST POLICY 1. This policy will apply to the following types of communications: A. Citizen Complaints/Requests B. Council Requests C. Council Directives D. Councilmember Requests E. Interdepartmental Suggestions/Recommendations 2. The ensuing procedure shall be followed by any City Employee upon receiving any of the aforementioned types of communications: A. The following information shall be recorded in writing on a standard form provided by the Clerk's office: 1. Date, type and method of communication. 2. Name, address and telephone number of the person the communication is received from. 3. Explanation of the communication. B. The form shall be submitted to the Clerk's office, who shall file the original in a permanent record book, and distribute copies to appro- priate Department Heads. C. The Department Heads shall take expedient action and submit a written explanation along with reference materials as to the disposition of the communication to the Clerk's office. D. The completed form shall be substituted for the original form in the permanent record book. 3. This policy is not intended to apply to trivial or inconsequential types of com- munications. It should be noted, however, that any employee receiving any of the types of communication covered under this policy will be held accountable for its disposition if not recorded by the aforementioned procedure. Larry o pson City dministrato LT/mh A. ACTION REQUEST FORM lA COMMUNICATION RECEIVED: DATE TYPE: COMPLAINT DIRECTIVE SUGGESTION OTHER METHOD: IN PERSON PHONE LETTER MEMO OTHER RECEIVED FROM: ADDRESS: PHONE: EXPLANATION: "1.-vs)voc,„v REFERRED TO: DATE: THE FOLLOWING ACTION WAS TAKEN ON THE ABOVE COMMUNICATION: ATTACHMENTS: SIGNATURE I r • AGENDA REQUEST FORM ITEM NO. NAME: Larry Thompson � > DEPARTMENT: Administration „>.4—+ -ft DATE: April 21, 1989 MEETING DATE: May 1, 1989 CATEGORY: New Business SUBJECT: Approve 1990 ALF Budget EXPLANATION: Per ALF Joint Powers Agreement REFERENCE MATERIAL/RESPONSIBILITY: Budget/Memo - Larry Thompson REFERRED TO: (NAME) DEPARTMENT: Dan Siebenaler Police Wayne Henneke Finance Larry Thompson Administration //1 SIGMA A L AMBULANCE } F REQUEST FOR BOARD ACTION Meeting Date: Origin: Agenda Item: March 23, 1989 Kevin Raun 5-A 1. Board Action/Request: To set the 1990 ALF Ambulance Budget. 2. Background/Summary Information: Due to the ,new "Truth in Taxation" laws I am hereby presenting the budget earlier this year. This should allow the (3) member cities enough time to incorporate this budget in a timely manner for prepara- tion and presentation of their own city budgets to their individual city councils. - Please See Attached Budget - 3. Budget Implications: 4. Staff Recommendation: I am presenting only one budget proposal this year. The proposal is to maintain the status quo with regard to staffing and hours of oper- ation. A I M 0115 (C 14200 Cedar Avenue South Apple Valley, Minnesota 55124 Phone — 612-432-5664 MEMORANDUM TO: ALF Ambulance Operations Board FROM: Kevin J. Raun, Ambulance Director DATE: March 9, 1989 SUBJECT: ALF Ambulance 1990 Proposed Budget Attached to this memo is the proposed budget for ALF Ambulance for the 1990 fiscal year. After just completing a little over two months of oper- ations in 1989, it makes it a little difficult to accurately predict all the needs of the ambulance service for the 1990 fiscal year. Taking this into consideration, I believe the proposed budget will very closely cover the needs of the ambulance service in its delivery of emergency medical care to the citizens of our service area. The hardest area to predict was do we need to increase the hours of opera- tion for our second unit. This year has already started out fairly busy. Each year of our three years of operational history we have expanded our coverage level . There is certainly justification from our data to operate the second unit sixteen hour days, but quite frankly we have not exper- ienced enough call load between 11:00 p.m. to 7:0 a.m. to justify expanding the second unit to twenty-four hour shifts. This also coincides with our Five Year Plan which calls for operating the second unit sixteen hour days in 1990. Therefore my 1990 proposed budget to you calls for maintaining the status quo for fiscal year 1990 with regard to staffing and operational hours of the units. The budget does take into account increased call load for 1990 as it certainly appears that our numbers are not shrinking. It continues to be my goal to ensure appropriate emergency medical services coverage and response times to the citizens of our communities while main- taining a fiscal responsibility to the overall operations of the ambulance service. I have some good news to report this budget year. At the close of 1989 ALF Ambulance will retire its bond debt. This debt was incurred in 1985 to purchase our first two ambulances and all equipment to get the service started. The annual amount for this debt was $47,500.00. Because of our equipment reserve (escrow) account the Board should never have to issue any debt in the future. • . 1110 Another high note is the current cash reserves in the general fund. This amount is just over $230,000.00. The interest on this cash reserve should net the Board an additional $20,000.00 to $25,000.00 this year. I believe the Board should look at capping the reserve cash at a predetermined level and any future excesses could be rebated to the three member cities in the form of lower operating subsidies. I present this item to the Board for your discussion and action. The Board may want to look at using the interest on investments as the escrow for the capital equipment reserve account. The following is a short synopsis of the proposed budget: Salaries: I have budgeted 5% for cost of living/salary adjustments. Due to a new pay plan for the Ambulance Supervisor this increase has also been reflected. Motor Fuels: Has an additional $750.00 added to cover an anticipated increase in call volume for 1990 as well as the fact that some economists are predicting higher prices for fuel . Equipment/ Has an additional $500.00 added. This line item covers the Parts: purchase of all vehicle parts (i .e., batteries, tires, etc.) Audit: The audit for 1987 cost us $2,000.00 and this has been adjusted to reflect true audit costs. Collection Has an additional $2,900.00 budgeted. This item covers our Services: billing services. We have a three year contract with fixed billing rates, 1990 will be the start of our second contract year. The increase reflects anticipated call volume. This contract appears to be working quite well and if we had remained with our prior billing contract conservative estimates would have placed that at $5,000.00 more than budgeted for 1990. Insurance: Current fiscal year 1989 has our premium at $13,345 and we were budgeted for $16, .000.00 The Board switched insurance companies to the League of Minnesota Cities last year after learning that our then current insurance company was asking for a $10,000.00 increase for a total premium of over $21,00.00. I have added only $500.00 this year over last years budgeted amount as I feel we should be experiencing some stability under the Leagues insurance coverage. Contract Has an additional $1,000.00 added. This line item covers Vehicle all contractual maintenance on the ambulances. Repair: Our vehicle maintenance policy is designed to be liberal . Due to the critical service demand on these vehicles worn or failing parts are replaced on an expedited service schedule. We also have in place a time/mileage preventative maintenance schedule. 2 406 • Additions to This is our capital equipment budget. Monies to finance Fixed Assets: these purchases come from our equipment reserve account. There are two items I have listed for 1990: 1. Repower/Refurbish Medic Unit #11 - This unit had 76,000 miles on it at the end of fiscal year 1988. At the rate of miles we are currently putting on this unit a month. It is projected it will have approximately 110,000 miles on it by the end of 1989. Per our Five Year Plan this unit is scheduled for a major overhaul in 1990. I have budgeted $10,500.00 for this overhaul which would consist of a brand new engine, rebuilt transmission, new shocks, drive train and rear-end overhaul , reupholster any torn or damaged seats and squad benches, repaint exterior from belt line down, and reletter the unit. Obviously with a major overhaul of this type there may be other miscellaneous items unforseen at this time. At the units 75,000 mile tune-up and inspection the mechanic advised the unit is in extremely good condi- tion and the engine was very sound at that time. Even though monies would be budgeted for 1990 the overhaul would not occur until the condition of the unit made it necessary. The mechanic advised that given the units present condition its entirely possible that the powertrain could give us 125,000 to 150,00 miles of service. I would not allow the unit to be run into the ground but, as long as its mechanically sound we would continue to run it. I believe this repower to be a viable and economically prudent course for this unit. The other alternative would be to rechassis the unit (Remount the module on a new chassis) current prices for new chassis and remounting are about $35,000.00 to $40,000.00. The new engine would be warranted for two years or 24,000 miles from Ford and the mechanic advises that the unit should be able to obtain another 80,000 to 100,000 miles of service. 3 2. Office Furniture - The City of Apple Valley will be constructing an addition to Fire Station #1 (our pre- sent base of operations) and it appears ALF will be occupying a major portion of the new space. It appears the new quarters will need some furnishings that we presently don't have. I have budgeted $2,000 to cover the purchase of any necessary furniture for the new quarters. Per the Five Year Plan we were scheduled to purchase a computer, typewriter and office furniture in the amount of $9,700.00. This was due to the fact that we were anticipating going to an in-house billing system, but as has been noted previously, billing has been con- tracted outside for the next three years. The following is a list of facts and figures used in compiling the 1990 proposed budget: 1986 1987 1988 1989 1990 Projected Runs: 1158* 1356* 1558* 1476** 1570** $ Rate Per Run: $ 241.32* $ 267.10* $ 268.86* $ 280.00** $ 280.00** 3 City Population: 48,970* 50,473* 57,523* 58,367** 60,059** Proj. Svc. Billing: $273,381* $362,190* $417,334* $413,000** $439,600** Township Revenue: $ 4,820* $ 5,100* $ 6,600* $ 6,000** $ 6,800** Misc. Billings: $ 1,630* $ 10,432* $ 11,836* $ 7,500** $ 8,500** * Actual Numbers ** Projected Numbers . 4 ALF AMBULANCE 1 9 8 9 & 1 9 9 0 BUDGET ALF AMBULANCE BALANCE SHEET 1987 1988 1989 1S90 ACTUAL ACTUAL ESTIMATE ESTIMATE ASSETS Current assets Cash 197.561 236,489 206, 145 215,279 Accounts receivable, net 84,537 119,949 131 ,944 145,138 Prepaid expenses 13,846 7,997 8,797 9,676 Total current assets $295,944 $364,435 $346,885 $370,093 Property, plant and equipment Machinery + equipment $157,454 $241 ,554 $244,654 $257, 154 Less: accumulated depreciation (35,539) (53,839) (86,569) ( 120,069) Net equipment $121 ,915 $187,715 $158,085 $137,085 Total assets $417,859 $552, 150 $504,970 $507,178 LIABILITIES AND RETAINED EARNINGS Current liabilities Accrued salaries $12,014 $10,395 $11 ,435 $12,578 Accounts Payable 10,866 9, 143 9,143 9,143 Accrued interest payable 1 ,013 1 ,341 Bonds payable-current 47,500 47,500 Total current liabilities $71 ,393 $68,379 $20,578 $21 ,721 Long-term liabilities Bonds Payable $.7.500 Retained earnings Designated 28,301 61 ,688 94,728 129,896 Undesignated 270,665 422,084 389,665 355,562 Total retained earnings $298,966 $483,771 $484,393 $485,457 Total $411 ,859 $552, 150 $504,970 $507. 178 ALF AMBULANCE STATEMENT OF REVENUES AND EXPENSE 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Revenues City support $189,787 $170,433 $160,509 $150, 148 Township support 5, 100 6,600 6,000 6,800 Service billings 362,784 417,334 413,000 439,600 Less Medicare/Medicaid ( 18,837) ( 15,488) (16,485) Miscellaneous 12,373 11 ,836 7,500 8,500 Interest 4,608 12,942 2,875 23,500 Total revenues $574,652 $600,308 $574,396 $612,063 Expense Salaries full-time $215, 189 $236,089 $323,482 $356,837 PERA 8,637 10,055 13,748 15, 166 FICA 14,914 17,767 24,488 26,798 Hospitalization 12,540 13,959 29,700 29,700 Workmans Comp 13,814 14,293 26,202 16,097 Office supplies 553 357 1 ,000 1 ,000 Operating Supplies 1 , 181 1 ,690 1,000 1 ,500 Motor fuels 5,741 6,652 8,750 9,500 Lubricants 0 64 500 500 Clothing 1,311 2,765 3,000 3,500 Oxygen 385 357 445 575 Equipment parts 1,648 1,613 2,500 3,000 Medical supplies 3,915 5, 158 6,600 7, 100 Audit 0 0 600 1 ,200 Collection services 15,707 18,560 17,000 19,900 Professional services 2,571 2,294 1 ,600 1 ,100 Use of personal auto 553 552 500 650 Print public information 136 35 220 220 Promotions 1,244 97 685 700 Insurance 11 , 185 12,050 16,000 16,500 Postage 0 0 100 100 Telephone 1 ,310 1 ,504 • 2,400 2,600 Contract equip repair 53 401 500 700 Contract radio repair 705 588 1 ,400 1 ,500 Contract vehicle repair 3,024 4,421 5,500 6,500 Contract linen 567 378 750 800 Data processing 308 485 250 600 Schools + conferences 1,074 947 2,200 2,400 Dues + subscriptions 317 851 500 950 Licenses and taxes 192 75 350 350 Uncollectible accounts 39.795 37.428 46.462 49.455 Interest expense 8,357 5,718 2,613 0 Depreciation 17,790 18,300 32,730 33,500 Total expense $384,721 $415,503 $573,775 $610,998 Net increase/(dec. ) $189,931 $184,805 $622 $1 ,064 ALF AMBULANCE WORKING CAPITAL 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Current assets Cash $197,561 $236,489 $206, 145 $215,279 Accounts receivable, net 84,537 119,949 131 ,944 145, 138 Prepaid expenses 13,846 7,997 8,797 9,676 Total current assets $295,944 $364,435 $346,885 $370,093 Current liabilities Accrued salaries $12,014 $10,395 $11 ,435 $12,578 Accounts payable 10,866 9,143 9,143 9, 143 Accrued interest payable 1 ,013 1 ,341 0 0 Bonds payable-current 47,500 47,500 0 0 Total current liabilities $71,393 $68,379 $20,578 $21 ,721 Total working capital $224,551 $296,056 $326,308 $348,372 CHANGES IN WORKING CAPITAL 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Funds provided Net income $189,931 $184,805 $622 $1 ,064 Depreciation 17,790 18,300 32,730 33,500 Total funds prcvidea $207,721 $203, 105 $33,352 $34,564 Funds applied Additions to fixed assets $3,201 $84,100 $3, 100 $12,500 Debt retirement 47,500 47,500 Total funds applied $50,701 $131 ,600 $3, 1C0 $12 .500 Net increase/(decrease) in working capital $157,020 $71,505 $30,252 $22,064 Working capital , January 1 67,531 224,551 296,056 326,308 Working capital , December 31 $224,551 $296,056 $326,308 $348,372 BUDGET ASSUMPTIONS - 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE POPULATION Apple Valley 28,538 29,109 32,309 33,278 Lakeville 17,865 18,222 20,783 21 ,406 Farmington 5,010 5, 110 5,275 5,375 Total population 51 ,413 52,441 58,367 60,059 PER CAPITA COST $3.69 $3.25 $2.75 $2.50 COST PER CITY Apple Valley $105,346 $94,604 $88,850 $83, 195 Lakeville 65,947 59,222 57,153 53,515 Farmington 18,494 16,608 14,506 13,438 $189,787 $170,433 $160,509 $150,148 SERVICE BILLINGS Total transports 1 ,357 1 ,356 1 ,475 1 ,570 Average revenue per call $269 $275 $280 $280 Total service billings $365,033 $372,900 $413,000 $439,600 SERVICE BILLINGS For operations 334,005 341 ,204 379,960 404,432 Designated for future equipment replacement 31 ,028 31 ,697 33,040 35, 168 $365,033 $372,900 $413,000 $439,600 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE New Ambulance Chassis $22,000 Module 40,000 Telecommunications equipment Radios/telephone 6,500 Portable radios (2) 2,400 Pagers (2) 700 Defibrillation/monitor Life Pak 5 8,500 Refurbish/Repower Medic #11 10,500 New engine, rebuilt frame Interior/exterior refurbish Miscellaneous equipment for new ambulance Equipment 7,100 Office Furniture Misc. furniture for new quarters 2,000 TOTAL ACQUISITION OF EQUIPMENT $0 $84,100 $3,100 $12,500 A • • A.L.F. AMBULANCE OPERATING BOARD CITIES OF APPLE VALLEY, LAKEVILLE AND FARMINGTON MINUTES February 23, 1989 PRESENT: Chair Holton, Boardmembers Sindt and McKnight, Assistant Administrator Lawell , Personnel Director Boland, Supervisor McCauley, and Ambulance Director Raun. ABSENT: None. Chairman Holton called the meeting to order at 6:00 o'clock p.m. MOTION: of Sindt, seconded by Holton, to approve the MINUTES OF minutes of December 15, 1988. McKnight's DEC. 15, 1988 vote withheld due to no prior meeting as a Boardmember. Ayes - 2 - Nays - 0. MOTION: of Sindt, seconded by McKnight to amend the agenda AGENDA by adding new items 8-B, Star of the North Games, and removing from the Consent Calendar Item 5-E, 1989/1990 Township Agreements and Item 6-C, December P & L Statement allowing for discussion. Ayes - 3 - Nays - 0. MOTION: of Sindt, seconded by McKnight to approve Consent CONSENT Calendar: CALENDAR 1. Review Township Invoices. 2. Resolution #89-01, Acceptance of Donation. 3. Accept Resignation of Part-time Paramedic. 4. Removal of Employee's from Probationary Status. 5. December/January Data Reports. 6. December/January A/R Reports. 7. Fourth Quarter Vehicle Reports. Ayes - 3 - Nays - 0. Boland offered union update to McKnight. Labor agreements were LABOR handed out as proposed by ALF and union. UNION - ALF proposal reviewed per Boland. Per Raun, delete Section 14-12. Difficulty with having personnel out on comp time. Per Raun, salary survey is completed. Per Lawell , our employees are non-essential employees but they do have the right to strike. ALF Ambulance Operating Board Minutes of February 23, 1989 Page 2 - Union proposal reviewed. Per Raun, discussed viability of shift lead position. Cost-out sheet handed out by Boland. Per Holton, salary request not a reality at a 50% increase. Holton requests meeting with Raun and Boland the week before March 21st. Holton will then advise the rest of the boardmembers'. Next negotiation meeting between ALF and union is scheduled for March 21, 1989. Per Boland, this meeting will consist of contract language only. Supervisor pay scale cost-out offered by Boland and Raun. Per SUPERVISOR Raun, supervisor salary increase was slated for January 1, 1989 SALARY but delayed due to union activity. Per Raun, McCauley would be at 2 year level . MOTION: of Sindt, seconded by McKnight to move McCauley to proposed 1989 2 year supervisor salary level , retroactive to January 1, 1989. Ayes - 3 - Nays - 0. Per Lawell , background offered .on Ambulance Director's comp time. Resolu- tion reviewed. Per Sindt, delete a.,b. ,c. of resolution and use statements 1 and 2. Per Raun, if at the end of calendar year the amount of comp time exceeded 80 hours, the amount over 80 hours would be deleted. Per Lawell buyout of hours would occur the first year only. Per Holton, request for paragraph for action for current hours. As of January 1, 1990 comp time hours earned in excess of 80 hours would be deleted. MOTION: By Sindt, seconded by McKnight to approve DIRECTOR'S Ambulance Director's Comp Time proposal with COMP TIME above amendments. Ayes - 3 - Nays - 0. Per Raun, agreements for the provision of ambulance service for 1989/1990 the Townships of Castle Rock, Eureka and Empire are ready to be TOWNSHIP signed and sent. Castle Rock has not made payment as of yet. AGREEMENTS Per Raun, requests board members to take home and review 1988 ALF 1988 Annual Report. Forwarding comments to Raun. Per Sindt, on Board- ANNUAL members letter, no mention of second rig going to 16 hour shifts REPORT in 1989. Per Raun, discussion of ALF Comparative Balance Sheet. Per DECEMBER Raun, $235,000.00 in general fund. $200,000 in 4M gaining in- P & L terest at 9 1/2%. Per Raun auditors request documentation on STATEMENT write-offs for Medicare and Medicaid patients. Per Raun, will have report in the annual report. . ti • ALF Ambulance Operating Board Minutes of February 23, 1989 Page 3 Raun discussed with the Board that our collection 1988 COLLECTION service now utilizes optional collection letters to ANALYSIS - clients. We are currently experimenting with (5) ALLIED INTERSTATE free account letters to see if this program would be viable. There is a charge for this service. Raun will report back. Tammi doing well with billing procedures. Few bugs with software but easily corrected. 31% with Allied Collection. Per Raun, attorneys checking into difficulty of ALF AND APPLE VALLEY reimbursements from Medicare/Medicaid. Will advise CLINIC MEDICARE/ of possibilities for reimbursement. MEDICAID REIMBURSEMENTS Per Raun, reviewed Blood Alcohol Draw program. Request BLOOD ALCOHOL for purchase of in-house VCR with monies collected. DRAWS MOTION: of Sindt, seconded by McKnight to purchase VCR. Ayes - 3 - Nays 0. Per Raun, brief synopsis of Star of the North Games offered. STAR OF Schedule of events handed out with highlights of games in our NORTH GAMES area. Request to staff 3 ambulances during weekends due to possibility of increased call volume. MOTION: By Sindt, seconded by McKnight to staff 3 ambulances during Star of North Games in our area. Ayes - 3 - Nays - 0. MOTION: of Sindt, seconded by McKnight to adjourn ADJOURN 7:40 o'clock p.m. Ayes - 3 - Nays - 0. • A fflguLthi . 14200 Cedar Avenue South Apple Valley, Minnesota 55124 Phone — 612-432-5664 MEMORANDA TO: ALF Ambulance Operations Board FROM: Kevin J. Raun, Ambulance Director DATE: March 9, 1989 SUBJECT: ALF Ambulance 1990 Proposed Budget Attached to this memo is the proposed budget for ALF Ambulance for the 1990 fiscal year. After just completing a little over two months of oper- ations in 1989, it makes it a little difficult to accurately predict all the needs of the ambulance service for the 1990 fiscal year. Taking this into consideration, I believe the proposed budget will very closely cover the needs of the ambulance service in its delivery of emergency medical care to the citizens of our service area. The hardest area to predict was do we need to increase the hours of opera- tion for our second unit. This year has already started out fairly busy. Each year of our three years of operational history we have expanded our coverage level . There is certainly justification from our data to operate the second unit sixteen hour days, but quite frankly we have not exper- ienced enough call load between 11:00 p.m. to 7:0 a.m. to justify expanding the second unit to twenty-four hour shifts. This also coincides with our Five Year Plan which calls for operating the second unit sixteen hour days in 1990. Therefore my 1990 proposed budget to you calls for maintaining the status quo for fiscal year 1990 with regard to staffing and operational hours of the units. The budget does take into account increased call load for 1990 as it certainly appears that our numbers are not shrinking. It continues to be my goal to ensure appropriate emergency medical services coverage and response times to the citizens of our communities while main- taining a fiscal responsibility to the overall operations of the ambulance service. I have some good news to report this budget year. At the close of 1989 ALF Ambulance will retire its bond debt. This debt was incurred in 1985 to purchase our first two ambulances and all equipment to get the service started. The annual amount for this debt was $47,500.00. Because of our equipment reserve (escrow) account the Board should never have to issue any debt in the future. Another high note is the current cash reserves in the general fund. This amount is just over $230,000.00. The interest on this cash reserve should net the Board an additional $20,000.00 to $25,000.00 this year. I believe the Board should look at capping the reserve cash at a predetermined level and any future excesses could be rebated to the three member cities in the form of lower operating subsidies. I present this item to the Board for your discussion and action. The Board may want to look at using the interest on investments as the escrow for the capital equipment reserve account. The following is a short synopsis of the proposed budget: Salaries: I have budgeted 5% for cost of living/salary adjustments. Due to a new pay plan for the Ambulance Supervisor this increase has also been reflected. Motor Fuels: Has an additional $750.00 added to cover an anticipated increase in call volume for 1990 as well as the fact that some economists are predicting higher prices for fuel . Equipment/ Has an additional $500.00 added. This line item covers the Parts: purchase of all vehicle parts (i .e. , batteries, tires, etc.) Audit: The audit for 1987 cost us $2,000.00 and this has been adjusted to reflect true audit costs. Collection Has an additional $2,900.00 budgeted. This item covers our Services: billing services. We have a three year contract with fixed billing rates, 1990 will be the start of our second contract year. The increase reflects anticipated call volume. This contract appears to be working quite well and if we had remained with our prior billing contract conservative estimates would have placed that at $5,000.00 more than budgeted for 1990. Insurance: Current fiscal year 1989 has our premium at $13,345 and we were budgeted for $16, .000.00 The Board switched insurance companies to the League of Minnesota Cities last year after learning that our then current insurance company was asking for a $10,000.00 increase for a total premium of over $21,00.00. I have added only $500.00 this year over last years budgeted amount as I feel we should be experiencing some stability under the Leagues insurance coverage. Contract Has an additional $1,000.00 added. This line item covers Vehicle all contractual maintenance on the ambulances. Repair: Our vehicle maintenance policy is designed to be liberal . Due to the critical service demand on these vehicles worn or failing parts are replaced on an expedited service schedule. We also have in place a time/mileage preventative maintenance schedule. 2 Additions to This is our capital equipment budget. Monies to finance Fixed Assets: these purchases come from our equipment reserve account. There are two items I have listed for 1990: 1. Repower/Refurbish Medic Unit #11 - This unit had 76,000 miles on it at the end of fiscal year 1988. At the rate of miles we are currently putting on this unit a month. It is projected it will have approximately 110,000 miles on it by the end of 1989. Per our Five Year Plan this unit is scheduled for a major overhaul in 1990. I have budgeted $10,500.00 for this overhaul which would consist of a brand new engine, rebuilt transmission, new shocks, drive train and rear-end overhaul , reupholster any torn or damaged seats and squad benches, repaint exterior from belt line down, and reletter the unit. Obviously with a major overhaul of this type there may be other miscellaneous items unforseen at this time. At the units 75,000 mile tune-up and inspection the mechanic advised the unit is in extremely good condi- tion and the engine was very sound at that time. Even though monies would be budgeted for 1990 the overhaul would not occur until the condition of the unit made it necessary. The mechanic advised that given the units present condition its entirely possible that the powertrain could give us 125,000 to 150,00 miles of service. I would not allow the unit to be run into the ground but, as long as its mechanically sound we would continue to run it. I believe this repower to be a viable and economically prudent course for this unit. The other alternative would be to rechassis the unit (Remount the module on a new chassis) current prices for new chassis and remounting are about $35,000.00 to $40,000.00. The new engine would be warranted for two years or 24,000 miles from Ford and the mechanic advises that the unit should be able to obtain another 80,000 to 100,000 miles of service. 3 - w r 2. Office Furniture - The City of Apple Valley will be constructing an addition to Fire Station #1 (our pre- sent base of operations) and it appears ALF will be occupying a major portion of the new space. It appears the new quarters will need some furnishings that we presently don't have. I have budgeted $2,000 to cover the purchase of any necessary furniture for the new quarters. Per the Five Year Plan we were scheduled to purchase a computer, typewriter and office furniture in the amount of $9,700.00. This was due to the fact that we were anticipating going to an in-house billing system, but as has been noted previously, billing has been con- tracted outside for the next three years. The following is a list of facts and figures used in compiling the 1990 proposed budget: 1986 1987 1988 1989 1990 Projected Runs: 1158* 1356* 1558* 1476** 1570** $ Rate Per Run: $ 241.32* $ 267.10* $ 268.86* $ 280.00** $ 280.00** 3 City Population: 48,970* 50,473* 57,523* 58,367** 60,059** Proj . Svc. Billing: $273,381* $362,190* $417,334* $413,000** $439,600** is Township Revenue: $ 4,820* $ 5,100* $ 6,600* $ 6,000** $ 6,800** Misc. Billings: $ 1,630* $ 10,432* $ 11,836* $ 7,500** $ 8,500** * Actual Numbers ** Projected Numbers . 4 ALF AMBULANCE 1 9 8 9 & 1 9 9 0 BUDGET ALF AMBULANCE BALANCE SHEET 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE ASSETS Current assets Cash 197.561 236,489 206, 145 215,279 Accounts receivable, net 84,537 119,949 131 ,944 145,138 Prepaid expenses 13,846 7,997 8,797 9.676 Total current assets $295,944 $364,435 $346,885 $370,093 Property, plant and equipment Machinery + equipment $157,454 $241,554 $244,654 $257, 154 Less: accumulated depreciation (35,539) (53,839) (86,569) (120,069) Net equipment $121,915 $187,715 $158,085 $137,085 Total assets $417,859 $552, 150 $504,970 $507, 178 LIABILITIES AND RETAINED EARNINGS Current liabilities Accrued salaries $12,014 $10,395 $11 ,435 $12,578 Accounts Payable 10,866 9, 143 9,143 9,143 Accrued interest payable 1,013 1 ,341 Bonds payable-current 47,500 47,500 Total current liabilities $71 ,393 $68,379 $20,578 $21 ,721 Long-term liabilities Bonds Payable $,17,500 Retained earnings Designated 28,301 61 ,688 94,728 129,896 Undesignated 270,665 422,084 389,665 355,562 Total retained earnings $298,966 $483,771 $484,393 $485.457 Total $417,859 $552, 150 $504,970 $507. 178 • r ALF AMBULANCE STATEMENT OF REVENUES AND EXPENSE 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Revenues City support $189,787 $170,433 $160,509 $150, 148 Township support 5, 100 6,600 6,000 6,800 Service billings 362,784 417,334 413,000 439,600 Less Medicare/Medicaid ( 18,837) ( 15,488) (16,485) Miscellaneous 12,373 11 ,836 7,500 8,500 Interest 4,608 12,942 2,875 23,500 Total revenues $574,652 $600,308 $574,396 $612,063 Expense Salaries full-time $215, 189 $236,089 $323,482 $356,837 PERA 8,637 10,055 13,748 15, 166 FICA 14,914 17,767 24,488 26,798 Hospitalization 12,540 13,959 29,700 29,700 Workmans Comp 13,814 14,293 26,202 16,097 Office supplies 553 357 1 ,000 1 ,000 Operating Supplies 1, 181 1 ,690 1 ,000 1 ,500 Motor fuels 5,741 6,652 8,750 9,500 Lubricants 0 64 500 500 Clothing 1 ,311 2,765 3,000 3,500 Oxygen 385 357 445 575 Equipment parts 1 ,648 1 ,613 2,500 3,000 Medical supplies 3,915 5, 158 6,600 7, 100 Audit 0 0 600 1 ,200 Collection services 15,707 18,560 17,000 19,900 Professional services 2,571 2,294 1 ,600 1 ,100 Use of personal auto 553 552 500 650 Print public information 136 35 220 220 Promotions 1 ,244 97 685 700 Insurance 11 ,185 12,050 16,000 16,500 Postage 0 0 100 100 Telephone 1 ,310 1 ,504 2,400 2,600 Contract equip repair 58 401 500 700 Contract radio repair 705 588 1 ,400 1 ,500 Contract vehicle repair 3,024 4,421 5,500 6,500 Contract linen 567 378 750 800 Data processing 308 485 250 600 Schools + conferences 1 ,074 947 2,200 2,400 Dues + subscriptions 317 851 500 950 Licenses and taxes 192 75 3E0 350 Uncollectible accounts 39.795 37.428 48.42 49.455 Interest expense 8,357 5,718 2,613 0 Depreciation 17,790 18,300 32,730 33,500 Total expense $384,721 $415,503 $573,775 $610,998 Net increase/(dec. ) $189,931 $184,805 $622 $1 ,064 , ALF AMBULANCE WORKING CAPITAL 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Current assets Cash $197,561 $236,489 $206, 145 $215,279 Accounts receivable, net 84,537 119,949 131 ,944 145, 138 Prepaid expenses 13,846 7,997 8,797 9,676 Total current assets $295,944 $364,435 $346,885 $370,093 Current liabilities Accrued salaries $12,014 $10,395 $11 ,435 $12,578 Accounts payable 10,866 9,143 9,143 9, 143 Accrued interest payable 1 ,013 1 ,341 0 0 Bonds payable-current 47,500 47,500 0 0 Total current liabilities $71 ,393 $68,379 $20,578 $21 ,721 Total working capital $224,551 $296,056 $326,308 $348,372 CHANGES IN WORKING CAPITAL 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Funds provided Net income $189,931 $184,805 $622 $1 ,064 Depreciation 17,790 18,300 32,730 33,500 Total funds provided $207,721 $203, 105 $33,352 $34,564 Funds applied Additions to fixed assets $3,201 $84, 100 $3,100 $12,500 Debt retirement 47,500 47,500 Total funds applied $50,701 $131 ,600 $3. 160 $12.500 Net increase/(decrease) in working capital $157,020 $71 ,505 $30,252 $22,064 Working capital , January 1 67,531 224,551 296,056 326,308 Working capital , December 31 $224,551 $296,056 $326,308 $348,372 . 4 BUDGET ASSUMPTIONS - 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE POPULATION Apple Valley 28,538 29,109 32,309 33,278 Lakeville 17,865 18,222 20,783 21 ,406 Farmington 5,010 5, 110 5,275 5,375 Total population 51 ,413 52,441 58,367 60,059 PER CAPITA COST $3.69 $3.25 $2.75 $2.50 COST PER CITY Apple Valley $105,346 $94,604 $88,850 $83, 195 Lakeville 65,947 59,222 57,153 53,515 Farmington 18,494 16,608 14,506 13,438 $189,787 $170,433 $160,509 $150, 148 SERVICE BILLINGS Total transports 1 ,357 1,356 1 ,475 1 ,570 Average revenue per call $269 $275 $280 $280 Total service billings $365,033 $372,900 $413,000 $439,600 SERVICE BILLINGS For operations 334,005 341 ,204 379,960 404,432 Designated for future equipment replacement 31 ,028 31 ,697 33,040 35, 168 $365,033 $372,900 $413,000 $4. 9,600 £ i 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE New Ambulance Chassis $22,000 Module 40,000 Telecommunications equipment Radios/telephone 6,500 Portable radios (2) 2,400 Pagers (2) 700 Defibrillation/monitor Life Pak 5 8,500 Refurbish/Repower Medic #11 10,500 New engine, rebuilt frame Interior/exterior refurbish Miscellaneous equipment for new ambulance Equipment 7,100 Office Furniture Misc. furniture for new quarters 2,000 TOTAL ACQUISITION OF EQUIPMENT $0 $84,100 $3,100 $12,500 • A A A. C E BP 14200 Cedar Avenue South Apple Valley, Minnesota 55124 Phone — 612-432-5664 ALF AMBULANCE 1990 PROPOSED BUDGET To the Honorable Mayor and City Council Members: Attached to this letter is the proposed budget for ALF Ambulance for the 1990 fiscal year. Per the three City Ambulance Joint Powers Agreement the ALF Ambulance Board has reviewed, and are hereby recommending for approval by the three City Councils the attached budget proposal . It is the Boards goal for fiscal year 1990 to see ALF Ambulance con- tinue to deliver high quality emergency medical services to the citizens in the ambulance service area. We will strive to improve our service where ever and when ever it is possible. The following is a short synopsis of the budget proposal : The Board has opted to maintain the same coverage level for fiscal year 1990 as the current year 1989. That coverage consists of one unit being operated twenty-four hours, with the other unit being operated sixteen hour days (0700-2300 hours). This is proving to adequately cover our service area as the call volume during the hours of 2300 - 0700 is just not that busy. The budget does reflect a heavier call load for 1990 as the numbers appear as though they will continue to increase. Salaries: I have budgeted 5% for cost of living/salary, adjustments. Due to a new pay plan for the Ambulance Supervisor this increase has also been reflected. Motor Fuels: Has an additional $750.00 added to cover an anticipated increase in call volume for 1990 as well as the fact that some economists are predicting higher prices for fuel . Equipment/ Has an additional $500.00 added. This line item covers the Parts: purchase of all vehicle parts (i .e. , batteries, tires, etc.) Audit: The audit for 1987 cost us $2,000.00 and this has been adjusted to reflect true audit costs. Collection Has an additional $2,900.00 budgeted. This item covers our Services: billing services. We have a three year contract with fixed billing rates, 1990 will be the start of our second contract year. The increase reflects anticipated call volume. This contract appears to be working quite well and if we had remained estiwith u mateswouldhavr � eplacedor lthacontract tat $5,000.00emore�than budgeted for 1990. Page 2 Insurance: Current fiscal year 1989 has our premium at $13,345 and we were budgeted for $16,000.00. The Board switched insurance companies to the League of Minnesota Cities lastY ear after learning that our then current insurance company was asking for a $10,000.00 increase for a total premium of over $21,000.00. I have added only $500.00 this year over last years budgeted amount as I feel we should be experiencing some stability under the Leagues insurance coverage. Contract Has an additional $2,000 budgeted. This line item covers Vehicle all contractual maintenance of the ambulances. Repair: Our vehicle maintenance policy is designed to be liberal . Due to the critical service demand placed on these vehicles worn or failing parts are replaced on an expedited service schedule. We also have in place a time/mileage preventative maintenance schedule. Additions to This is our capital equipment budget. Monies to finance Fixed Assets: these purchases come from our equipment reserve account. There are two items I have listed for 1990: 1. Repower/Refurbish Medic Unit #11 - THis unit had 76,000 miles on it at the end of fiscal year 1988. At the rate of miles we are currently putting on this unit a A month. It is projected it will have approximately 110,000 miles on it by the end of 1989. Per our Five Year Plan this unit is scheduled for a major overhaul in 1990. I have budgeted $10,500.00 for this overhaul which would consist of a brand new engine, rebuilt transmission, new shocks, drive train and rear-end overhaul , reupholster any torn or damaged seats and squad benches, repaint exterior from belt line down, and reletter the unit. Obviously with a major overhaul of this type there may be other miscellaneous items unforseen at this time. At the units 75,000 mile tune-up and inspection the mechanic advised the unit is in extremely good condi- tion and the engine was very sound at that time. Even though monies would be budgeted for 1990 the overhaul would not occur until the condition of the unit made it necessary. The mechanic advised that given the units present condition its entirely possible that the powertrain could give us 125,000 to 150,000 miles of service. I would not allow the unit to be run into the ground but, as long as its mechanically sound we would continue to run it. I believe this repower to be a viable and economically prudent course for this unit. • • • Page 3 The other alternative would be to rechassis the unit (Remount the module on a new chassis) current prices for new chassis and remounting are about $35,000.00 to $40,000.00. The new engine would be warranted for two years or 24,000 miles from Ford and the mechanic advises that the unit should be able to obtain another 80,000 to 100,000 miles of service. 2. Office Furniture - The City of Apple Valley will be constructing an addition to Fire Station #1 (our pre- sent base of operations) and it appears ALF will be occupying a major portion of the new space. It appears the new quarters will need some furnishings that we presently don't have. I have budgeted $2,000 to cover the purchase of any necessary furniture for the new quarters. Per the Five Year Plan we were scheduled to purchase a computer, typewriter and office furniture in the amount of $9,700.00. This was due to the fact that we were anticipating going to an in-house billing system, but as has been noted previously, billing has been con- tracted outside for the next three years. This basically sums up the 1990 budget. If any Council member should have any questions or require more information please feel free to contact me. Respectfully submitted, Kevin J. Rau Ambulance Director KJR/eh Attachment: 1990 proposed budget • At 17E 74, NcE • 14200 Cedar Avenue South Apple Valley, Minnesota 55124 Phone — 612-432-5664 ALF AMBULANCE 1990 PROPOSED BUDGET To the Honorable Mayor and City Council Members: Attached to this letter is the proposed budget for ALF Ambulance for the 1990 fiscal year. Per the three City Ambulance Joint Powers Agreement the ALF Ambulance Board has reviewed, and are hereby recommending for approval by the three City Councils the attached budget proposal . It is the Boards goal for fiscal year 1990 to see ALF Ambulance con- tinue to deliver high quality emergency medical services to the citizens in the ambulance service area. We will strive to improve our service where ever and when ever it is possible. The following is a short synopsis of the budget proposal : The Board has opted to maintain the same coverage level for fiscal year 1990 as the current year 1989. That coverage consists of one unit being operated twenty-four hours, with the other unit being operated sixteen hour days (0700-2300 hours) . This is proving to adequately cover our service area as the call volume during the hours of 2300 - 0700 is just not that busy. The budget does reflect a heavier call load for 1990 as the numbers appear as though they will continue to increase. Salaries: I have budgeted 5% for cost of living/salary adjustments. Due to a new pay plan for the Ambulance Supervisor this increase has also been reflected. Motor Fuels: Has an additional $750.00 added to cover an anticipated increase in call volume for 1990 as well as the fact that some economists are predicting higher prices for fuel . Equipment/ Has an additional $500.00 added. This line item covers the Parts: purchase of all vehicle parts (i .e. , batteries, tires, etc. ) Audit: The audit for 1987 cost us $2,000.00 and this has been adjusted to reflect true audit costs. Collection Has an additional $2,900.00 budgeted. This item covers our Services: _ billing services. We have a three year contract with fixed billing rates, 1990 will be the start of our second contract year. The increase reflects anticipated call volume. This contract appears to be working quite well and if we had remained with our prior billing contract conservative estimates would have placed that at $5,000.00 more than budgeted for 1990. . , . Page 2 Insurance: Current fiscal year 1989 has our premium at $13,345 and we were budgeted for $16,000.00. The Board switched insurance companies to the League of Minnesota Cities last year after learning that our then current insurance company was asking for a $10,000.00 increase for a total premium of over $21,000.00. I have added only $500.00 this year over last years budgeted amount as I feel we should be experiencing some stability under the Leagues insurance coverage. Contract Has an additional $2,000 budgeted. This line item covers Vehicle all contractual maintenance of the ambulances. Repair: Our vehicle maintenance policy is designed to be liberal . Due to the critical service demand placed on these vehicles worn or failing parts are replaced on an expedited service schedule. We also have in place a time/mileage preventative maintenance schedule. Additions to This is our capital equipment budget. Monies to finance Fixed Assets:• these purchases come from our equipment reserve account. There are two items I have listed for 1990: 1. Repower/Refurbish Medic Unit #11 - THis unit had 76,000 miles on it at the end of fiscal year 1988. At the rate of miles we are currently putting on this unit a month. It is projected it will have approximately 110,000 miles on it by the end of 1989. Per our Five Year Plan this unit is scheduled for a major overhaul in 1990. I have budgeted $10,500.00 for this overhaul which would consist of a brand new engine, rebuilt transmission, new shocks, drive train and rear-end overhaul , reupholster any torn or damaged seats and squad benches, repaint exterior from belt line down, and reletter the unit. Obviously with a major overhaul of this type there may be other miscellaneous items unforseen at this time. At the units 75,000 mile tune-up and inspection the mechanic advised the unit is in extremely good condi- tion and the engine was very sound at that time. Even though monies would be budgeted for 1990 the overhaul would not occur until the condition of the unit made it necessary. The mechanic advised that given the units present condition its entirely possible that the powertrain could give us 125,000 to 150,000 miles of service. I would not allow the unit to be run into the ground but, as long as its mechanically sound we would continue to run it. I believe this repower to be a viable and economically prudent course for this unit. -+46 ..4. ' • Page 3 The other alternative would be to rechassis the unit • (Remount the module on a new chassis) current prices for new chassis and remounting are about $35,000.00 to $40,000.00. The new engine would be warranted for two years or 24,000 miles from Ford and the mechanic advises that the unit should be able to obtain another 80,000 to 100,000 miles of service. 2. Office Furniture - The City of Apple Valley will be constructing an addition to Fire Station #1 (our pre- sent base of operations) and it appears ALF will be occupying a major portion of the new space. It appears the new quarters will need some furnishings that we presently don't have. I have budgeted $2,000 to cover the purchase of any necessary furniture for the new quarters. Per the Five Year Plan we were scheduled to purchase a computer, typewriter and office furniture in the amount of $9,700.00. This was due to the fact that we were anticipating going to an in-house billing system, but as has been noted previously, billing has been con- tracted outside for the next three years. This basically sums up the 1990 budget. If any Council member should have any questions or require more information please feel free to contact me. Respectfully submitted, Kevin J. Raiun Ambulance Director KJR/eh Attachment: 1990 proposed budget F - • ALF AMBULANCE 1 9 8 9 & 1 9 9 0 BUDGET 0 ALF AMBULANCE BALANCE SHEET 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE ASSETS Current assets Cash 197.561 236,489 206,145 215.279 Accounts receivable, net 84,537 119,949 131,944 145, 138 Prepaid expenses 13,846 7,997 8,797 9.676 Total current assets $295,944 $364,435 $346,885 $370,093 Property, plant and equipment Machinery + equipment $157,454 $241,554 $244,654 $257, 154 Less: accumulated depreciation (35,539) (53,839) (86,569) (120,069) Net equipment $121,915 $187,715 $158,085 $137,085 Total assets $417,859 $552,150 $504,970 $507,178 00 LIABILITIES AND RETAINED EARNINGS Current liabilities Accrued salaries $12,014 $10,395 $11,435 $12,578 Accounts Payable 10,866 9, 143 9,143 9,143 Accrued interest payable 1,013 1,341 Bonds payable-current 47,500 47,500 Total current liabilities $71,393 $68,379 $20,578 $21 ,721 Long-tern liabilities Bonds Payable $47,500 Retained earnings Designated 28,301 61,688 94,728 129,896 Undesignated 270,665 422,084 389,665 355,562 Total retained earnings $298,966 $483,771 $484,393 $485,457 Total $417,859 $552, 150 $504,970$,,04,9ru $ 07, 178 • . ALF AMBULANCE S T A TEME N T OF REVENUES AND EXPENSE 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Revenues • City support $189,787 $170,433 $160,509 $150, 148 Township support 5,100 6,600 6,000 6,800 Service billings 362,784 417,334 413.000 439,600 Less Medicare/Medicaid (18,837) (15,488) (16,485) Miscellaneous 12,373 11,836 7,500 8,500 Interest 4,608 12,942 2,875 23,500 Total revenues $574,652 $600,308 $574,396 $612,063 Expense Salaries full-time $215,189 $236,089 $323,482 $356,837 PERA 8,637 10,055 13,748 15,166 FICA 14,914 17,767 24,488 26,798 Hospitalization 12,540 13,959 29,700 29,700 Workmans Comp 13,814 14,293 26,202 16,097 Office supplies 553 357 1,000 1,000 Operating Supplies 1,181 1,690 1,000 1,500 Motor fuels 5,741 6,652 8,750 9,500 Lubricants 0 64 500 500 Clothing 1,311 2,765 3,000 3,500 Oxygen 385 357 445 575 Equipment parts 1,648 1,613 2,500 3,000 Medical supplies3,915 5,158 6,600 7,100 Audit 0 0 600 1,200 Collection services 15,707 18,560 17,000 19,900 Professional services 2,571 2,294 1,600 1,100 Use of personal auto 553 552 500 650 Print public information 136 35 220 220 Promotions 1,244 97 685 700 Insurance 11,185 12,050 16,000 16,500 Postage 0 0 . 100 100 Telephone 1,310 1,504 2,400 2,600 Contract equip repair 58 401 500 700 Contract radio repair 705 588 1,400 1,500 Contract vehicle repair 3,024 4,421 5,500 6,500 Contract linen 567 378 750 800 Data processing 308 485 250 600 Schools + conferences 1,074 947 2,200 2,400 Dues + subscriptions 317 851 500 950 Licenses and taxes 192 75 350 350 Uncollectible accounts 39.795 37.428 46.462 49.455 Interest expense 8,357 5,718 2,613 0 Depreciation 17,790 18,300 32,730 33,500 Total expense $384,721 $415,503 $573,775 $610,998 Net increase/(dec. ) $189,931 $184,805 $622 $1,064 ALF AMBULANCE WORKING CAPITAL • 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Current assets Cash $197,561 $236,489 $206,145 $215,279 Accounts receivable, net 84,537 119,949 131,944 145,138 Prepaid expenses 13,846 7,997 8,797 9,676 Total current assets $295,944 $364,435 $346,885 $370,093 Current liabilities Accrued salaries $12,014 $10,395 $11,435 $12,578 Accounts payable 10,866 9,143 9,143 9,143 Accrued interest payable 1,013 1,341 0 0 Bonds payable-current 47,500 47,500 0 0 Total current liabilities $71,393 $68,379 $20,578 $21,721 Total working capital $224,551 $296,056 $326,308 $348,372 ,' CHANGES IN WORKING CAPITAL 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Funds provided Net income $189,931 $184,805 $622 $1,064 Depreciation - 17,790 18,300 32,730 33,500 *Total funds provided $207,721 $203, 105 $33,352 $34,564 Funds applied Additions to fixed assets $3,201 $84, 100 $3,100 $12,500 Debt retirement 47,500 47,500 Total funds applied $50,701 $131 ,600 $3.100 $12,500 Net increase/(decrease) in working capital $157,020 $71,505 $30,252 $22,064 Working capital, January 1 67,531 224,551 296,056 326,308 Working capital, December 31 $224,551 $296,056 $326,308 $348,372 B U D GET A S S U M P T IONS - • 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE POPULATION Apple Valley 28,538 29,109 32,309 33,278 Lakeville 17,865 18,222 20,783 21 ,406 Farmington 5,010 5,110 5,275 5,375 Total population 51,413 52,441 58,367 60,059 PER CAPITA COST $3.69 $3.25 $2.75 $2.50 COST PER CITY Apple Valley $105,346 $94,604 $88,850 $83,195 Lakeville 65,947 59,222 57,153 53,515 Farmington 18,494 16,608 14,506 13,438 $189,787 $170,433 $160,509 $150,148 SERVICE BILLINGS Total transports 1,357 1,356 1,475 1,570 Average revenue per call $269 $275 $280 $280 Total service billings $365,033 $372,900 $413,000 $439,600 SERVICE BILLINGS For operations 334,005 341,204 379,960 404,432 Designated for future equipment replacement 31,028 31,697 33,040 35, 168 $365,033 $372,900 $413,000 $439,600 ti • 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE New Ambulance Chassis $22,000 Module 40,000 Telecommunications equipment Radios/telephone 6,500 Portable radios (2) 2,400 Pagers (2) 700 Defibrillation/monitor Life Pak 5 8,500 Refurbish/Repower Medic #11 10,500 New engine, rebuilt frame Interior/exterior refurbish Miscellaneous equipment for new ambulance Equipment 7,100 Office Furniture • Misc. furniture for new quarters 2,000 TOTAL ACQUISITION OF EQUIPMENT $0 $84,100 • $3,100 $12,500 • \ . , ALF AMBULANCE 1 9 8 9 & 1 9 9 0 BUDGET ALF AMBULANCE BALANCE SHEET 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE ASSETS Current assets Cash 197.561 236,489 206,145 215,279 Accounts receivable, net 84,537 119,949 131,944 145,138 Prepaid expenses 13,846 7,997 8,797 9.676 Total current assets $295,944 $364,435 $346,885 $370,093 Property, plant and equipment Machinery + equipment $157,454 $241,554 $244,654 $257,154 Less: accumulated depreciation (35,539) (53,839) (86,569) (120,069) Net equipment $121,915 $187,715 $158,085 $137,085 Total assets $417,859 $552,150 $504,970 $507,178 #4 LIABILITIES AND RETAINED EARNINGS Current liabilities Accrued salaries $12,014 $10,395 $11,435 $12,578 Accounts Payable 10,866 9,143 9,143 9,143 Accrued interest payable 1,013 1,341 Bonds payable-current 47,500 47,500 Total current liabilities $71,393 $68,379 $20,578 $21 ,721 Long-term liabilities Bonds Payable $47,500 Retained earnings Designated 28,301 61,688 94,728 129,896 Undesignated 270,665 422,084 389,665 355,562 Total retained earnings $298,966 $483,771 $484,393 $485,457 Total $417,859 $552, 150 $504,970 $507.178 ALF AMBULANCE S T A T EMENT OF REVENUESANA) EXPENSE 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Revenues City support $189,787 $170,433 $160,509 $150, 148 Township support 5,100 6,600 6,000 6,800 Service billings 362,784 417,334 413,000 439,600 Less Medicare/Medicaid ( 18,837) (15,488) (16,485) Miscellaneous 12,373 11 ,836 7,500 8,500 Interest 4,608 12,942 2,875 23,500 Total revenues $574,652 $600,308 $574,396 $612,063 Expense Salaries full-time $215,189 $236,089 $323,482 $356,837 PERA 8,637 10,055 13,748 15,166 FICA 14,914 17,767 24,488 26,798 Hospitalization 12,540 13,959 29,700 29,700 Workmans Comp 13,814 14,293 26,202 16,097 Office supplies 553 357 1,000 1,000 Operating Supplies 1,181 1,690 1,000 1,500 Motor fuels 5,741 6,652 8,750 9,500 Lubricants 0 64 500 500 Clothing 1,311 2,765 3,000 3,500 Oxygen 385 357 445 575 Equipment parts 1,648 1,613 2,500 3,000 7 Medical supplies 3,915 5,158 6,600 7,100 Audit 0 0 600 1,200 Collection services 15,707 18,560 17,000 19,900 Professional services 2,571 2,294 1,600 1,100 Use of personal auto 553 552 500 650 Print public information 136 35 220 220 Promotions 1,244 97 685 700 Insurance 11,185 12,050 16,000 16,500 Postage 0 0 100 100 Telephone 1,310 1,504 2,400 2,600 Contract equip repair 58 401 500 700 Contract radio repair 705 588 1 ,400 1 ,500 Contract vehicle repair 3,024 4,421 5,500 6,500 Contract linen 567 378 750 800 Data processing 308 485 250 600 Schools+ conferences 1,074 947 2,200 2,400 Dues + subscriptions 317 851 500 950 Licenses and taxes 192 75 350 350 Uncollectible accounts . 39,795 37,428 46.462 49.455 Interest expense8,357 5,718 2,613 0 Depreciation 17,790 18,300 32,730 33,500 Total expense $384,721 $415,503 $573,775 $610,998 Net increase/(dec. ) $189,931 $184,805 $622 $1,064 ALF AMBULANCE WORKING CAPITAL 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Current assets Cash $197,561 $236,489 $206,145 $215,279 Accounts receivable, net 84,537 119,949 131,944 145,138 Prepaid expenses 13,846 7,997 8,797 9,676 Total current assets $295,944 $364,435 $346,885 $370,093 Current liabilities Accrued salaries $12,014 $10,395 $11,435 $12,578 Accounts payable 10,866 9,143 9,143 9,143 Accrued interest payable 1,013 1,341 0 0 Bonds payable-current 47,500 47,500 0 0 Total current liabilities $71,393. $68,379 $20,578 $21,721 Total working capital $224,551 $296,056 $326,308 $348,372 JO CHANGES IN WORKING CAPITAL 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE Funds provided ' Net income $189,931 $184,805 $622 $1,064 Depreciation 17,790 18,300 32,730 33,500 Total funds provided $207,721 $203,105 $33,352 $34,564 Funds applied Additions to fixed assets $3,201 $84, 100 $3,100 $12,500 Debt retirement 47,500 47,500 Total funds applied $50,701 $131,600 $3,100 $12,500 Net increase/(decrease) in working capital $157,020 $71,505 $30,252 $22,064 Working capital , January 1 67,531 224,551 296,056 326,308 Working capital , December 31 $224,551 $296,056 $326,308 $348,372 BUDGET ASSUMPTIONS • 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE POPULATION Apple Valley 28,538 29,109 32,309 33,278 Lakeville 17,865 18,222 20,783 21 ,406 Farmington 5,010 5,110 5,275 5,375 Total population 51,413 52,441 58,367 60,059 PER CAPITA COST $3.69 $3.25 $2.75 $2.50 COST PER CITY Apple Valley $105,346 $94,604 $88,850 $83, 195 Lakeville 65,947 59,222 57,153 53,515 Farmington 18,494 16,608 14,506 13,438 $189,787 $170,433 $160,509 $150, 148 SERVICE BILLINGS Total transports 1,357 1,356 1,475 1,570 101 Average revenue per call $269 $275 $280 $280 Total service billings $365,033 $372,900 $413,000 $439,600 SERVICE BILLINGS For operations 334,005 341,204 379,960 404,432 Designated for future equipment replacement 31,028 31,697 33,040 35, 168 $365,033 $372,900 $413,000 $439,600 1987 1988 1989 1990 ACTUAL ACTUAL ESTIMATE ESTIMATE New Ambulance Chassis $22,000 Module 40,000 Telecommunications equipment Radios/telephone 6,500 Portable radios (2) 2,400 Pagers (2) 700 Defibrillation/monitor Life Pak 5 8,500 Refurbish/Repower Medic #11 10,500 New engine, rebuilt frame • Interior/exterior refurbish Miscellaneous equipment for new ambulance Equipment 7,100 Office Furniture • Misc. furniture for new quarters 2,000 f TOTAL ACQUISITION OF EQUIPMENT $0 $84,100 • $3,100 $12,500 AGENDA REQUEST FORM ITEM NO. 2c7)6____ NAME: Tom Kaldunski est— DEPARTMENT: General Services DATE: April 25, 1989 MEETING DATE: May 1, 1989 ✓J� CATEGORY: New Business (� SUBJECT: Storm Water Management EXPLANATION: Staff will be presenting a storm water management plan based upon a "utility" fee. REFERENCE MATERIAL/RESPONSIBILITY: REFERRED TO: (NAME) DEPARTMENT: .1.4041/14/4411 SIGNATURE MEMO TO: MAYOR AND COUNCIL SUBJECT: STORMWATER MANAGEMENT DATE: APRIL 28, 1989 The City of Farmington has adopted a Stormwater Management Plan which provides funding via development charges for the installation of ponds and storm sewer trunks. These fees are collected from all new developments. The funds are used to install stormwater management improvements in the developing areas of the community. This plan does not address the developed portions of town. There are a number of problem areas in the developed community which have been discussed by the City Council (i.e. Southeast Area Storm Sewer, 2nd Street Storm Sewer Trunk, Hill Dee area, etc.) . The proposed storm sewer improvements for these areas must have a funding mechanism in order for the projects to be completed. Several funding options include MSA Funding, assessments to benefitted properties, Ad Valorem taxes, storm water utility fees, etc. It is very important to develop a funding proposal which will allow the City the• flexibility to solve the stormwater management problems. The memo, dated April 25, from Wayne Henneke, Finance Director outlines several of these options. I strongly favor the creation of a stormwater utility, similar to the one in Apple Valley, to fund projects in the developed portion of the community. A utility based upon the land area and runoff coefficients is the most equitable because it is based upon the Engineering Design Criteria for sizing the storm sewer trunks and ponding areas. This method would ensure that all properties will be charged an equitable fee based upon the actual stormwater runoff from each property. In order to set up a utility, it is necessary to identify proposed improvement projects and establish a priority list. A capital improvement plan can be developed from the priority list. I have prepared a map outlining various projects which the Council has been discussing recently as the preliminary priority list. It will be presented at the meeting. The Council will ultimately establish the final priority list when a capital improvement plan is approved. The top priority should be given to the trunk storm sewer proposed along the west side of the railroad tracks from the river to Walnut Street, continuing along Walnut Street to 4th and 5th Streets. I would place this project at the top of the list because it has direct ties to the Council approved Municipal State Aid 5 Year Capital Improvement Plan. Without the storm sewer trunk to the river, it may not be feasible to proceed with the 1989 MSA project on 1st Street and Walnut Street without the storm sewer funding. This project consists of 2 distinct phases. Phase I consists of a 66" RCP along the west side of the railroad from the river to Walnut Street. The estimated storm sewer project cost of this Phase I is $617,000. MnDOT has established that $239,000 of this outfall line will be funded through the City's MSA Funding as after the fact needs. The remaining $378,000 must be funded through other options (i.e. utility fee, assessments, etc.) The second phase consists of a 48" RCP on Walnut Street from the railroad tracks to 5th street as part of the 1989 MSA Street Improvement Project. The estimated storm sewer trunk costs of Phase II is $130,000. It is estimated that MSA funds will cover $35,000 and the remaining $95,000 must be funded through other options as discussed previously. The 2nd priority for storm sewer improvements in the developed portions of the community should be given to the Southeast Storm Sewer Project. This project has received a lot of attention from the City Council in the last 3-5 years and a high priority has been assigned to it. In fact, the Vermillion River Watershed Management Board has recently authorized a study of the project following the City's feasibility study and Council resolutions asking for project implementation. The project is tentatively scheduled for 1991-1992. This project consists of a series of storm sewer trunks and ponding improvements as outlined in the feasibility study and shown in the City's Stormwater Management Plan. The project should be constructed with an alignment which carries the stormwater north to the Vermillion River as directly as possible. The estimated project cost is $1.5 million. I cannot determine the amount which needs to be funded by the City at this time due to the complex nature of the project and the number of potential users of the system (i.e. , City, Empire, Castle Rock, MnDOT, County, etc.) . I hope that the study being conducted by the Watershed Management Board will address this. I would assume that the City will be responsible for at least 1/2 of the cost ($750,000) . The projects identified on the map for the 10 year CIP are for information only and they should be discussed as the Council establishes the priority list. In summary, the City has to come up with financing for the following projects over the next 5 Year CIP at a minimum: Storm Sewer Improvemetns Est. City Funding 2nd Street Trunk $378,000 Walnut Street Trunk 95,000 S.E. Area Trunk and Ponds 750,000 Total $1,223.000 In order to fund these storm sewer improvements, I would recommend that the City establish a storm sewer utility and determine what share of the City's costs can be assessed as lateral benefits. -7,:4r,44)/ Thomas J. Kaldunski P.E. City Engineer cc: file Wayne Henneke TJK ! S d g ' c c r.,‘ r, L ., WWle,,t, 11', 2e,'S 3 3 nil M F 6000 E 5000 p .000 ja l t 1'- 22 h, _... ' ,& \ ._r_r, f� • 11 li �_-... _ ,\\\\ .. 20 n. \— - _ _——__ _ — II I : 1,1111iIli i [lift / :1". _ � 1 �' :9 ,;_p___,.....:;_-___,------- 27 26 - 23 d JO r .. — - log — h. J � � , ✓ r....,p.� ��A1iar"i 1 m T1NON - 1' 1 MI MN ,B EH NE TN IN N r 1O. Witial` H Hlr r°;NO 1uNNWIS a 32 34 ..---- - 33_ 36 I 1 u, 1 11 1111114113111; 1 1311 M I .ao — —, 1 �" .I ,'0 rn® '. — (AEC. -- d--/L--1- - , ,..‘ •:1.;.8. r-, -L ' I ova ••• r•41, I1 `f' l[IIfTTil�1I..,L.1 j u.,. 3- 6 4u 1 61161 _.T' y • ✓ 5 1 / ------"---- --------------------------- \ .... _____, .,.. r gggg , , ,, .,-..,, i' i i., i I, .1, mi. , i,„ ,,,- t. i ; i ! E t !it ,.1.1 .7; i CITY OF FARMINGTON e. =: -= ��,, RJP05e4 ST-004 Se„i ee 7iu,,is o. °�iN D iekped /eeq S --_ �. ARTERIAL syr C.I r?- /'t 9- /YY'/ /urr L,1-P - /YY..- ZUCO rromm Memo to: Mayor & Council Date April 25, 1989 Re Storm Water Management During 1988, the City Council directed staff to continue researching the establishment of a special taxing district to raise Funds to help Fund capital costs of storm sewers . After that meeting, the City Attorney recommended to put the project on hold due to continuing court cases that would effect the City 's establishment of the special taxing district . The court cases that were monitored have been resolved and it is time to implement a Storm Water Management Program For the City . Since there are new members on the Council the possible Financing tools for the Funding of the construction of storm sewer systems will be explained . The Following is a listing of four funding alternatives and comments regarding each: Funding Options 1) AdValorem - M .S . Chapter '1'1'1 allows the City to establish a special taxing district without proving benefit to the property . The tax is within the City 's levy limits and would take away From the ability to Fund the daily operations of the City . Currently , the City must use the total provided by levy limits to fund the operations of the City . Any reduction in available Funds would result in the reduction of services . To levy a special levy under Chapter '1'1'1 the City would need to hold a public hearing which would include sending notices of the public hearing to all residents along with the same publishing requirements required under Chapter '129 . This procedure would need to be done each year the levy is to be made . The use of advalorem taxes to fund the construction of storm sewers would also create a situation where SO% of the users pay For 100% of the project . 50% of the property in Farmington is tax exempt . The residents and businesses would pay For the storm sewers but the FAA, Railroad, School District, Churches, Telephone Company , H .R .A . , and City Property which would benefit From the project would not have to share the costs because they are tax exempt . Also, certain properties which have paid a stormwater trunk Fee would now be required to contribute additional Funds . This is not a fair, equitable way to Finance this type of project because all benefited properties do not pay their Fair share. 2) AdValorem - M .S . q73 Chapter 't73 allows the City to establish a special taxing district For benefitted areas within a watershed district . The entire City could not be taxed to pay for stormwater improvements . To use this option the City would need to have the Vermillion River Watershed Plan approved by the State . There would be more than one watershed area within the City because each taxing district is configured in a manner consistent with the drainage of surface water within the area . The tax under Chapter X73 is outside of the City 's levy limit . Even though the levy is outside levy limits the same facts are true regarding tax exempt property as explained above . To levy a tax under Chapter T73 the individual notices to property owners are not required on an annual basis as they are under Chapter L/Liq . 3) Special Assessments - M .S . X29 The projects could be funded under M .S . L129 . The problem is proving benefit . A property may contribute to the storm sewer problem but it would be difficult to prove benefit . Benefit have been defined as the increase in property value resulting from the project . Because it is extremely difficult to prove that all contributing properties increased in value from a project this is really not an option. LI) Storm Water Utility The establishment of a storm water utility seems to be the best alternative available . The charges are based on run-off from the property . Each type of property is given a utility rate . The Cities of Roseville, Richfield, and Apple Valley have storm water utility fees . Roseville has been used a a model by cities interested in establishing such a fee . In talking to Roseville 's City Engineer, the storm water utility fee has been received well by the property owners and is generating the revenue they need to construct ponding areas, storm sewer maintenance , and minor capital improvements . The City Engineer stressed the necessity to sell the Storm Water Management Program to the citizens . The City is looking at two major projects . The S .E. Area Storm Sewer Project with a total cost of $1 .5 million and the 2nd Street Storm Sewer Project with a total cost of $1 . 1 million . These projects will be funded by State Aid Street Funds, and local funding . The storm sewer laterals will be funded through special assessments . If the City plans to correct its storm sewer problems we must begin raising local revenues immediately to help fund these projects . The Storm Water Utility can generate approximately $55, 000 per year with a rate for single family resident of $5 .00 per quarter . Farmington 's newly developed areas are being taken care of at the time of development . It is time that storm water problems are taken care of in the older parts of the City . This is a way in which these improvements can be funded by the property owners that use the service . It is important that Council makes a decision on this matter . Projects scheduled For this year depend on what is to be decided tonight . The 1989 construction season is beginning . It is recommended to give staff firm direction as to how the Storm Water Management Plan is to be funded and to direct staff to prepare the necessary documents and policies . (A*16/41"e- 6.-42___ Wayne E . Henneke Finance Director c .c . Larry Thompson, City Administrator Tom Kaldunski , City Engineer file AGENDA REQUEST FORM ITEM NO. 3 6 • NAME: Gerald Henricks DEPARTMENT: HRA DATE: April 28, 1989 MEETING DATE: May 1, 1989 CATEGORY: Add On SUBJECT: Low Income Tax Credit Application EXPLANATION: REFERENCE MATERIAL/RESPONSIBILITY: Memo/Application - Gerald Henricks REFERRED TO: (NAME) DEPARTMENT: Gerald Henricks HRA Larry Thompson Administration HRA Members SIGNATURE MEMO TO: MAYOR AND COUNCIL SUBJECT: LOW INCOME TAX CREDIT APPLICATION DATE: APRIL 28, 1989 The HRA has been working with EMC Development in an effort to secure Senior Housing in Farmington. These efforts have provided results with EMC Development interested in building a 42 unit apartment complex on the 3i vacant lots on Oak Street south of Hardee's, and the building of a 24 unit townhouse complex located north of Elm Street and south of Main Street. A study was performed by Health Planning and Management Resources, Inc. for the Dakota County HRA in September, 1988, that indicated that the City of Farmington was in need of Senior Housing units. Based on this study, and the waiting list for Senior Housing at Spruce Place and Red Oak Manor, the Farmington HRA felt this was one of the housing areas the City should pursue. The new HUD Law, 100-430, restricts the designation of Tax Credits for housing to Low Income Housing preventing the designation of Senior Housing on the Tax Credit application. The first paragraph of the letter from EMC Development, dated April 28, 1989, indicates that they will direct their efforts toward senior housing needs. Therefore, I request that the Council consider these "best efforts" of EMC Development when acting upon the Tax Credit application. Included for your consideration is: Letter from EMC Development Table 11 and 17 of Housing Study Tax Credit Application These 2 projects will require a zoning change for the townhouses and a conditional use permit in the future. As the projects progress to the signing of a developers agreement, this concern will be addressed by the Planning Commission and the Council. If you have any questions, please feel free to contact me. 'l• / / �L1. 4 / Gerald A. Henricks HRA Director cc: file Larry Thompson HRA Members Ernie Darflinger Charles Tooker Karen Finstuen GAH DEVELOPMENT 370 summit avenue saint out,mn smog 28 April 1909 et2.22e-0106 Gerald A. Henricks HRA Director City of Farmington 325 Oak Street Farmington, MN 55024 Dear Oerry: It is EFIC Development's intent that best efforts will be used to rent a minimum of 60% of our total 66 units (40 units) to seniors. However, we honestly believe that the actual percent rented to seniors will be much higher because of the follows g reasons: 1 . Architectural design. The design of the units as well as the project as a whardill focus on neeUs and amenities appropriate to people age 62 and older. a. Units will be slightly smaller in size. A 1-bedroom unit will be approximately 550 square feet; a 2-bedroom unit will be approxi- mately 850 square feet. According to statutary code the City can limit the number of people who, for safety reasons, can live in units of these sizes. b. Outside the units there will be areas designed for seniors, i .e. horseshoe and/or shuffleboard courts; picnic tables; walking paths. (No children's play equipment will be provided. ) c. The HUD requirement that a certain percent will be handicap acces- sible will be met. d. An attempt will be made to design kitchens appropriate for people with limited arm reach and flexibility. e. A "card" room, or "activity" room will be included in the apartment building for residents of the entire project. This will supplement the City's senior center during inclement weather. 2. Marketing. Our marketing team which is experienced in marketing to seniors (and is a1l ker Methodist trained) will begin to publicize our project to seniors after May 1 . In fact, on May 12 we will be making our first pres- entation to the seniors at the Senior Citizen Center following their noon meal. Also, the dav_ after receiving final City Council approval for our project, M ,,,.a+•hvVSrrg plan iso aoni•ar •111 ba imp1r.m+.ntoA Thera willFRYhR t)lATI to mar e o non-seniors. cz 3. Management. The management company for the project will have a reputation in the7ield for being a "senior" management company. Included in the management plan will be: iPR- 2S- r39 PRI 8 : 01 'EYL4ORI3 � P 8 Page Two a. An "I 'm okay" check where each day by 9:04 AM each senior will place a card in his/her window or on the doorknob. A "buddy" will check that the card is there. If it isn't, the caretaker or mana- ger will be notified at once. This person will then have the right to enter the premise to check on the senior. b. In case of an emergency, i.e. a person breaks a leg, the management company will make the necessary arrangements with the Meals-On-Wheels program, county nurse, and county or City transportation service to provide assistance as is needed. c. Activities such as card parties, pot luck meals, easy exercise/aero- bics classes, etc. will be organized in the "card" room located in the apartment building. The room will also be available for family parties. Special outings will also be coordinated. With attention to specific details as outlined above in the areas of design, marketing and management we believe our project will attract and will be rented by people in the upper age bracket and therefore will meet the goals of both of us---the City and the developer. In addition, the project's name can influence who will live in it. We would be open to name suggestions from the City. If possible, the name should in- clude the word "Village" since we feel that it invokes an essence of what we are attempting to accomplish. We sincerely hope the above information will provide to you and your City's representatives the comfort level needed to allow us to continue to work through the City process so that construction can begin on both sites some- time in August of this year. Sincerely yours, BEVELOPl9ENT 4A4/ arl) AA beedei„,-4 - Carol 3. lavick '-_4 Mark Clemens APR — 8 - 89 FR I 8 : 04- :BYWORDS P _ 0 -=, DIRK YOUNG,tNG ' • LANDSCAPE AROVTECTUPS • • 0- t4.44/1-%'` i5a5HE PIN ME&,�fi#319 r• -.^-� :,..._ Ill.. 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'.••••• .• t>443 t• 4.;6•61. ..4'.....:•..,":•••?$..86., NiLak7., 7:103. ,:;.:1'S%•\.,:i !,... illitt.r... ...jyt• ....41:4.4?..V.... h.,...i..N....4. .,..t N*4 Ns,.. ;•,,t., 7../..z,..,,,,,,p, . , .7.%.'4E -• ..„.5,k.}.....;\55,,...5. ri, "-: . 41' It • '41:4 ib '. '- 6 .444..:. 77‘.. - •*-•-• ''k -'444,-, , .•4. •• W. --.. . 1,.. .,,,.'i•'•Az'A.A. 4. -.-V-4,. •l''.. • . .. ) - -- ... • .... 4 ......I ..k ...-%.44... 1, . .4.... .....,,.:7-44.4.... ..4...r.:544-2.'....- .••:.1....., sl. ..---•-4,..ic--: -:-......- • .:, . ,._;.- -... ,,,, ....4:-.4.1". ,.- - • 441.v ...-4 ' .....Z....4 ir • . • MEMO TO: GERALD HENRICKS SUBJECT: DOWNTOWN HOUSING DATE: DECEMBER 15, 1989 At its last regular meeting, the Planning Commission discussed a request from LaDonna Riste to add two efficiency apartments to the second floor of the business building she owns together with her husband on Oak Street. The ordi- nance is written in a manner that will allow densities of 20 units per acre if private resources are involved, but 60 units per acre if the housing will be utilized by the elderly or handicapped. It came about when regulations were modified to accommodate the construction of Spruce Place. The discrepancy has not come up before since high density market rate housing has not been proposed as a new use in the business district. The property owned by the Ristes will accommodate 1.7 units of market rate housing and 5 units of elderly or handicapped housing. Because a major emphasis of the downtown plan was to encourage an increase in residential density around the business district to support new business investment, the Planning Commission is seriously considering an amendment to the zoning ordinance which would place the density of all down- town housing at 60 units per acre. Recognizing that some accommodation will need to be made for parking, and that the HRA will be immediately involved in any potential change in standards, the Commission would like a response from the HRA before forwarding any recommended changes to the City Council. Thank you for your consideration. (91L4;17.4 Charles Tooker * Planner cc: Development Committee HRA ZI ! MINUTES PLANNING COMMISSION REGULAR DECEMBER 12, 1989 1. The meeting was called to order at 7:00 P.M. by Chairman Hanson. Members Present: Dau, Hanson, Rotty, Schlawin. Members Absent: Strelow Also Present: Planner Tooker. 2. Chairman Hanson asked William Uhlir about his understanding of the sign pro- blem at his residence on Highway 50. Mr. Uhlir indicated that he sharpened saws as a retirement project, but that the revenues generated did not justify paying for a public hearing. It was explained to him that all home occupations require a conditional use public hearing. The Commission members said that such a hearing likely would prove to be favorable regarding the home occupation but they said that the sign he has is too large and likely would be limited to a 1'x 2' name- plate. Mr. Uhlir said he would remove the existing sign and think bout asking for a home occupation in the future. r 3. Chairman Hanson then recognized LaDonna Riste who would like to add two efficiency apartments on the second floor of the business building she owns with her husband on Oak Street. Planner Tooker indicated that the request could not be handled through the current ordinance since apartment densities in the downtown are limited to 20 units per acre. On the other hand, housing for elderly and handicapped could be built at 60 units per acre. In essence, market rate housing, such as the units proposed by Ms. Riste, could only include 1.7 units on this lot, whereas subsidized housing could include 5 units. The Chairman suggested that the staff review the ordinance with an eye toward eliminating this discrepancy and to ask for comments from the HRA. 4. Member Strelow arrived at 7:30 P.M. 5. Chairman Hanson next moved to Dr. Falkowski, who has a sign problem (too large) at his office on Highway 3. Dr. Falkowski suggested that since his office is lo- cated on a frontage road across from the shopping center and down the street from a used car lot, it is more like a business district than a residential district and the sign is a valuable part of the service he provides. The sign is 4x6 rather than 3x4 and he would like to seek a variance in order to retain the existing sign. Members of the Commission indicated their support for such a variance and encouraged him to apply for the variance. 6. Planner Tooker said that Paster Enterprises has found a prospective tenant who would move to the Farmington Mall on Highway 3 if the Zoning Ordinance were to be amended. Currently day care is listed as a conditional use in the R-3 High Density district but not in the B-1 Limited Business District. Most large franchise day care facilities are found in business districts because of the traffic and most are situated in buildings designed for that purpose. Farmington Mall is somewhat different in that it is an existing strip center. However, by listing Day Care in the conditional use column, the Planning Commission will be able to assure a proper relationship between the interior space and open play areas. Good land use rela- tionships would not include a division of areas requiring clients to mix with other pedestrians in walking from indoor to outdoor areas of the day care facility. 2127.1 MOTION by Rotty, second by Dau to recommend that the City Council amend the Zoning Ordinance by adding Day Care Center to the B-1 Limited Business District as a conditional use. APIF, MOTION CARRIED. 7. The Commission then discussed the proposed revision to the Sign Ordinance in Sections 4-3-2 and 4-3-3. It has been reviewed several times by the Commission and it recognizes the need of some business and industrial operations to have both wall and pylon signs. The ordinance will be restrictive regarding pylon signs particularly in the B-2 District since the size of sign relates to traffic speed. They have been taken from a similar set of standards established for Burnsville which includes higher speed limits adjoining the business. It was generally agreed that the standards drafted should be tried and revised again if it becomes apparent that they are too restrictive. MOTION by Dau, second by Strelow to forward the proposed revision to the sign ordinance to the City Council with the recommendation that it should be approved. APIF, MOTION CARRIED. 8. Planner Tooker introduced a letter from Thomas K. Larson regarding the com- pletion of work agreed to in the Conditional Use granted to Willys Minneapolis. He pointed out that the items identified in the letter were acceptable to staff but that in addition the ragged edge along the east driveway would have to be straightened. Staff is prepared to release the $18,500 surety less $2,000 which will be returned when all of the work has been completed. It was the consensus of the Commission that the direction taken by the staff was within their under- standing of the terms of this Conditional Use. 9. Chairman Hanson discussed the minutes of the meeting of November 14, 1989 and suggested that the implementation of City Policy by the staff appeared to be at times uneven, and that recent enforcement of the sign ordinance was making a number of business establishments unhappy. He asked for further comments on the minutes of Novembef 14, 1989. MOTION by Dau, second by Schlawin to approve the minutes of November 14, 1989 as distributed. APIF, MOTION CARRIED. 10. There being no further business, it was agreed that the meeting shall be adjourned at 8:30 P.M. Submitted by, da,cez„a7PLed Charles Tooker Planner Approved