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Home My WebLink About01.21.85 Council Packet AGENDA COUNCIL MEETING REGULAR JANUARY 21, 1985 1. CALL TO ORDER 2. APPROVE AGENDA 3. APPROVE MINUTES a. January 3, 1985 b. January 7, 1985 4. CITIZENS COMMENST 5. PUBLIC HEARINGS 6. PETITIONS, REQUESTS AND COMMUNICATIONS a. Discuss LMC Legislative Policy 7. ORDINANCES AND RESOLUTIONS a. Awarding Bids for $500,000 G.O. Fire Station Bonds and $520,000 G.O. Ice Arena Refunding Bonds. 8. UNFINISHED BUSINESS a. Discuss Dakota County Estates, 3rd Addition P.U.D. Preliminary Proposal b. Discuss Amendment to Fire Contract - 1) Rescue Squad 2) Fire Station Costs c. City contribution to Employee Group Insurance 9. NEW BUSINESS a. Personnel Policy Amendment b. Consider Pre-platting Agreement - Scarborough and Associates c. Retirement, Bill B. Hince, General Services 10. MISCELLANEOUS a. Appointments to Various Boards and Commissions b. Conferences and Seminars 1) Newly Elected Officials - LMC 2) Elected Officials - LMC 3) State of the Region - Met Council c. Appoint Members to Rescue Squad Review Committee 11. CONSENT AGENDA a. Approve Contract No. 62574 with MnDOT Relating to Signal at TH50 and CSAH31 b. Approve Membership to International Conference of Building Officials c. Designate Administrator as City's Representative to LMC 1985 Legislative Action Conference d. Approve Request to Attend Schools - Park and Recreation e. Approve Repair of Tanker Truck - Fire Department f. Approve List of Bills 12. ADJOURN 13. ADD ONS a. Sewer Rehab Project Update b. Approve Payment #3 - National Power Rodding - Sewer Rehab THE AGENDA IS CLOSED OUT AT NOON ON THE TUESDAY PRECEDING THE MEETING. MEMO TO: MAYOR AND COUNCILMEMBERS SUBJECT: AGENDA ITEMS DATE: JANUARY 18, 1985 6a. Memo enclosed. 7a. Memo enclosed. 8a. As you will note in the PARAC minutes, the Commission recommended that the developer dedicate a bikeway path, and contribute the balance in cash. bl. Memo enclosed. 2. Memo enclosed. c. Memo enclosed. 9a. Memo enclosed. b. Memo enclosed. c. Memo enclosed. It would be my recommendation that the Council should also briefly discuss the recruitment procedure for Bill 's successor. 10a. Memo enclosed. b. I have enclosed copies of the notices for items 10b1 and 10b2. The State of the Region notice would not copy. A copy is available at the Clerk's office for review. c. A condition of the establishment of the Rescue Squad was that a Review Board be appointed consisting of the Rescue Captain, Police Chief, City Administrator, Councilmember, and two citizens at large. Dan Nicolai and Dr. Ailabouni have expressed interest in serving on the Review Board. 11a. Memo enclosed. b. Membership enclosed. c. Memo enclosed. d. Request enclosed. e. Request enclosed. f. List enclosed. 13a. Memo enclosed. b. Request enclosed. Larr ompson City dministrator LT/mh AGENDA REQUEST FORM ITEM NO. h) (a) NAME: Larry Thompson DEPARTMENT: Administration DATE: January 8, 1985 MEETING DATE: January 21, 1985 CATEGORY: Unfinished Business SUBJECT: Amendment to Fire Service Contract - Fire Station Costs EXPLANATION: Discuss estimated impact of Fire Station on service contracts. REFERENCE MATERIALS/RESPONSIBILITY: Explanation/Recommendation - Larry Thompson REFERRED TO: (NAME) DEPARTMENT: Larry Thompson Administration Wayne Henneke Finance Dave Pietsch Fire / • (4ir---*-1/ S I GNATU"j. •' MEMO TO: MAYOR AND COUNCILMEMBERS SUBJECT: FIRE CONTRACT FORMULA - FIRE STATION COSTS DATE: JANUARY 14, 1985 As per Council directive, I have analyzed the estimated impact of the new Fire Station on the contract costs. Attached is an analysis estimating the impact given the following six options: 1. 25 year straight line depreciation on the land and building. Actual interest payments made by the City. 2. Same as option #1, except with a 40 year straight line depreciation. 3. Same as option #1, except with a 50 year straight line depreciation. 4. 25 year straight line depreciation on the land and building. Total interest costs spread over 25 equal annual installments. _ 5. Same as option #4, except with 40 year depreciation and interest payments spread over 40 years. 6. Same as option #4, except with 50 year depreciation and interest payments spread over 50 years . RECOMMENDATION As you will note, each option has an impact on the contract costs which inversely affects the City's annual payment (i .e. , Lower contract costs translates to increases in overall City costs. ) The estimated increases range from 118% (option 1) to 31% (option 6) . Based upon my analysis of the estimated impact, I would recommend the City Council adopt Option #5. Option #1 would reflect the contract formula as it exists today. I am reluctant to recommend this option for two reasons. First, I feel the 25 year straight line depreciation on a new building is too short a period. Forty year straight line depreciation is a standard used by accountants when establishing depreciation tables. Second, in terms of equitability, the actual interest costs would be the fairest method. I am reluctant to recommend this method, however, because of the dramatic impact on the overall township budgets. Fire service comprises a larger portion of a Township's budget than the City's. Therefore, the City is able to absorb increases in the Fire Department budget more readily than the Townships. The City will eventually recoup the total interest payments, but there will be a loss to the City due to lost investment opportunity and in- flation (i .e. , 1985 costs being paid in 1995 dollars). I have not calculated that loss at this time. ` l As you may recall , this matter was briefly discussed during the City/Township meeting in December, 1984, at which time it was indicated that staff would notify the Townships of the estimated impact. I am notifying the Townships of pending action on this matter by copy of this memo. This item will be placed on the January 21, 1985 agenda for discussion. 4ompLarry son :;;°11------ City Administrator LT/mh cc: Paul Irrthum, Castle Rock Township Clerk Floyd Henry, Empire Township Clerk Hilman Leine, Eureka Township Clerk Dave Pietsch Wayne Henneke • ' SCHEDULE A I CITY OF FARMINGTON, MINNESOTA PREPARED DECEMBER 11, 1984 $500,000 GENERAL OBLIGATION BY SPRINGSTED INCORPORATED FIRE HALL BONDS, SERIES 1985 DATED: 2/ 1/1985 MATURE: 2/ 1 9.500% ANNUAL LEVY LEVY MATURE PRINCIPAL INTEREST TOTAL (105%) (1) (2) (3) (4) (5) (6) 1984 1986 0 47,500 47,500 49,875 1985 1987 20,000 47,500 67,500 70,875 1986 1988 20 ,000 45,600 65,600 68,880 1987 1989 20,000 43,700 63,700 66,885 1988 1990 25,000 41,800 66,800 70,140 1989 1991 25,000 39,425 64,425 67,646 1990 1992 30,000 37,050 67,050 70,403 1991 1993 30,000 34,200 64,200 67,410 1992 1994 35,000 31,350 66,350 69,668 1993 1995 40,000 28,025 68,025 71,426 1994 . 1996 45,000 24,225 69,225 72,686 1995 1997 45,000 19,950 64 ,950 68,198 1996 1998 50,000 15,675 65,675 68,959 1997 1999 55,000 10,925 65,925 69,221 1998 2-000 60,000 5,700 65,700 68,985 TOTALS: $500,000 $472,625 $972,625 $1 ,021,257 BOND YEARS: 4,975 ANNUAL INTEREST COST: $472,625 AVERAGE MATURITY: 9.95 DISCOUNT (PREMIUM) : 9,800 AVG. ANNUAL RATE: 9.697% TOTAL INTEREST COST: $482,425 AVERAGE ANNUAL LEVY REQUIRED $65,994 (COLUMN 5 , LEVY YEARS 1986 THRU 1997) AVERAGE WITH 5% OVERLEVY $69,293 (COLUMN 6 , LEVY YEARS 1986 THRU 1997)