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Home My WebLink About11-21-2002 Council Work SessionCouncil Worksession 5:30 p.m. Thursday, November 21,2002 Orono City Council Chambers AGENDA 1. Telecommunications Tower Regulations 2. Fire Service Update 3. 2003 Budget A. Capital Expenditures B. Enterprise Funds 4. Update Regarding Stonebay(Dahlstrom) Development { TO: Mayor Peterson and Council Members FROM; Ron Moorse, City Administrator DATE: ’ November 20,2002 ' SUBJECT: Tcleconmunicationt Tower Regulations In response to the Federal Telecommunications Act, and requests from telecommunications vendors to locate telecommunications antennas in Orono, the City made its two water towers available for the placement of antennas. This has accommodated the needs of numerous vendors, as the towers are located such that they enable broad coverage. The City has not received any requests from vendors for additional tower and antenna locations, with the exception of Sprint. Sprint has indicated the need for an antenna in the Crystal Bay area, and has proposed leasing space near the Crystal Bay Post Office for a telecommunications tower. The City did not accept Sprint’s lease proposal, and placed a moratorium on telecommunications towers to enable the City to study how best to respond to requests for additional telecommunications towers. The City Attorney will attend the work session to provide information regarding the requirements placed on cities by the Federal Telecommunications Act. Also, staff will provide information on potential options for responding to Sprint’s expressed need for an additional antenna location. 1 TO: FROM: DATE: Mayor Peterson and Council Members Ron Moorse, City Administrator • November 20,2002 ^ SUBJECT: Fire Service Update The Long Lake City Council has iq>proved the expansion of the I jng Lake Fire Service Area to include the area in Orono currently served by Maple Plain. The next issue we need to resolve is the provision of fire service to the Navarre area. A copy of a letter sent to the Excelsior Fire DisUict Board regarding a proposal to serve the Navarre area is attached. Discussions are also continuing with Long Lake regar^g serving this area. rtAnto im nil in i nn ni'iitwim - GlTYoT NO Municipal Offices Strtsi AMress: 2750 Kellqr Partiwsy Orono, MN 55356 Mailing Addrau: P.O Box 66 Crystal Bay, MN 55323 0066 November 20,2002 Hxcelsior Fire District Board % Mark Ducharme, Fire Chief 339 Third Street lixcelsior, MN 55331 Dear Excelsior Fire District Board; 'I hank you for being open to considering assisting Orono in moving to a new type of organization for the provision of fire service. With the notable exception of the Excelsior Fire District, the lake area cities have been organized for the provision of fire service in the same way for the past thirty to forty plus years. Numerous Fire Departments have provided .service to a number of customer cities or parts of cities. In Orono this has meant four Fire Departments, each providing service to a portion of Orono. Although this method of organizing for fire ser\ ice provision has worked well in the past, it is clearly not adequate to meet the challenges of fire scr\ ice provision that we are beginning to face and will face in the future. I he cost of fire service has begun to increase substantially, and will continue to increase substantially in the coming years, due to capital needs as well as increased operating costs. Orono has been in a unique position to see the trend of substantial cost increases acro.ss its multiple fire service providers. In looking ahead at the needs and costs that are potentially facing the individual fire departments, it is important that the lake area cities make an effort to detennine how to provide high quality fire and rescue scrv ice while limiting the extent of cost increases. 1 his needs to involve a new way of organizing for fire scr\ ice that maximizes cooperation and minimizes duplication. 1 his need was the impetus for the RFP procc.ss initiated by Orono in relation to the Navarre area. The response provided by the Excelsior Fire District to the Orono ’s RFP indicated that, in the short temi, the Fire District was not in a position to respond to the RFP. But with a longer time-frame and the potential for a win/win solution, the Fire District could respond to the RFP. The following is a list of proposed pai ameters or elements of a potential win/w in arrangement between Orono and the Fire District. Orono is hopeiul the Fire District Board will respond positively to this proposed arrangement. Tdtphone (9$2) 24M600 • Fax (fS2) 24M6M wwwxiorooojnn.ai Excelsior Fire District Hoard November 7,2002 Page 2 1. 2. 3. 4. The Excelsior Fire District (KFD) ussuincs the administration of fire protection service for the “Navarre” area of Orono on January 1,2004. A. The EFD provides fire protection service to the Navarre area on a contractual basis for an interim period of two to four years. H. I he IvI D provides volunteer firefighter recruitment and training to staff a neighborhood fire station in Navarre. C. The l•|■D begins providing “consulting services ” to accomplish the above as early ns practical. D. Orono understands that due to the EFD”s own current fire service administration needs ^d demands, it may be most prudent and practical to provide for the fire protection needs of the Navarre urea through response from the new public safety facility for a portion of the interim service period. Orono is prepared to provide a neighborhood fire station in tlie Navarre area and furnish it with adequate equipment and apparatus by January 1,2004, if necessary. During the interim service period, both the i:i D and Orono determine whether it is in their interests ft>r Onuio to join tlie Excelsior Fire District. Ib)th the E:FD and Orono participate in a planning process regarding the future provision of fire .service in the lake urea. We look forward to receiving a fire service proposal from the Excelsior Fire District Respectfully Submill^ Ronald J. Moor.se C'ity Administrator RJM/lsv r TO: FROM: DATE: Mayor Peterson and Council Members Ron Moorse, City Administrator November 20,2002 ' SUBJECT: 2003 Budget The Council has reviewed the General Fund budget, and has set the tax lev>' for 2003. The Council has not reviewed the proposed capital outlay expenditures, or the cash flow budgets of the enterprise funds. Attached are a memo from Greg Gappa outlining the proposed capital expenditures for 2003 in the Public Works area, which includes Streets, Water, Sewer and Storm Water, and in the Golf Course, and a listing of capital expenditures necessary to meet information technology needs. Also attached are cash flow budgets for the enterprise funds-Water, Sewer, and Golf Course. Capital Expenditures The largest capital expenditures in the Public Works area are for the replacement of vehicles that are nearing the end of their useful lives. The information technology expenditures arc necessary to keep up with technology and to increase the security of the City ’s computer network. Enterprise Funds Both the Water and Sewer ftmds arc projected to have a much improved cash position in 2003, due to the final payment of debt service related to the Highway 12 area water and sewer project in 2002. In the Golf Course Fund, the 2001 revenues w-ere substantially lower than projected, due to poor weather. The 2002 revenues are also well below projections. The revenues are expected to rebound if the weather is favorable, particularly in the spring. The revenues will be closely monitored, and expenditures, particularly capital expenditures, may be reduced if revenues are below projections. Road Improvement Projects There are several smaller roadway projects being planned for 2003, which will be funded through the Municipal State Aid(MSA) fund. These include the addition of left turn arrows for northbound traffic at the WilIow/I2 and Old Crystal Bay Road/12 intersections, along with a right tiun lane for north bound traffic at the Old Crystal Bay Road/12 intersection. As the costs of these projects become more clear, they will be provided to the Council. November 18.2002 To: Ron Moorse From: Cireg Gappa 2003 Budget Capital Items Items ore listed in priority order I'or each fund. General Fund Public Works 1. Replacement of 1989 pickup truck for superintendent. Existing trucks will be rotated and the 1984 pickup used for transporting road signs will be auctioned this existing sign truck has 140,000 miles on it and is in poor condition. This item was originally budgeted in the year 2002. but the purchase was delayed because of pneertaintv of the impacts of the state budget deficit on the City budget. Later in the year, when we decided to purchase the vehicle they were out of stock. Cost $30,000 2. Replace 1989 Bobcat, which has 2,200 operational hours, with a new Skid Steer Loader with snow blower, tree grapple and pallet forks. I he existing loader is too small to add attachments and is not large enough to be very eflective. It is also in poor mechanical condition and needs major work on the hydraulic system, 'nre attachments will allow use of this piece of equipment for additional tasks. Cost SSO.OOO Gfueml Fund Parks Purchase two roll in docks to replace existing old wooden docks which ore in piH>r condition over the last several years we have been purchasing new roll in docks and these should be the lost two. Cost $8,000 Page I of 2 Sewer Fund ] .Replace existing 1994 utility truck with 145,000 miles and which is in poor mechanical * condition, 'i'his truck is used on a daily basi.s and also for emergency call outs for items such as liO station alarms. Having a dependable truck is imperative for utility system work. Co.st $55,00: Sewer Fund $35,000, Water Fund $20,000 2. Project to upgrade an 8" sewer to 10" in the TH 12 system. To provide capacity for new development and take advantage of the downstream upgrades to the sewer system as part of the Highway 12 project. Cost $25,000 3. Abandon 1999 TH 12 relief lift station and salvage the components for reuse In upgrading an older lift station. This relief station will not be needed when the new Highway 12 .sewer is completed. C'ost $20,000 4. Remote lu)sc reel for Vuct»)r I'ruck for easier access to manholes where it is not possible to get the truck close to the manhole. We have numerous manholes in luke.shore yards that are not accessible for the Vactor I'ruck Cost $20,000 Water Fund Prorated share of utility truck replacement costs Cost $20,000 Ciulf Course Replacement t>f 1991 (ireensair Model AST, aerator, which is in fair condition. I hc existing ueiaiior drills cores in the soil which results in the core plugs left on the course, tuid this is not desirable especially when it rains. The new uerutitrs u.se u water-ba.scd technology instead of drilling small ct)res in the .soil. The majority of golf courses have already switched to this new lyiK of aerator. Cost $19,000 Page 2 of 2 2003 IT Purchase: Firewall - Required for improved network security. We are behind the LOGIS firewall for the internet. The LOGIS firewall does not protect us from non internet threats (state connection, other LOGIS cities....) PIX 5 15E Firewall & Ext Support $2,900.00 Cisco Router & Est Support $2.500.00 Total Firewall $5,400.00 Switch - Required for Network connections. The Police have 4 open ports on their current switch. City Hall has 12. Cisco 2924 (24 Ports) Cisco 2948 (48 Ports) $1,500.00 or, $3,000.00 PC’s- Dell Optiplex PIV 4 @ $1,400 $5,600.00 Network Operating System Replacement - Our current operating system (Novell 5) is no longer being supported by Novell. We need to either upgrade to Novell 6 or switch to Windows 2000. LOGIS recommends Windows 2000. Either option will cost around $ 10,000. Network Operating System $10,000.00 Printer - The current finance department printer is 8 years old. Changes in accounting software has shifted the printing of checks and utility bills to the laser printer. A new printer would be significantly faster and allow for a dedicated paper supply for preprinted forms. The current printer could be used by the assessors as a local printer. Current color inkjet is slow and picture quality is poor. HP 4100 HP Ink Jet $2,200.00 $ 5S0.00 Software Adobe Web Illustrator Microsoft Publisher Banyon AR Module $1,000.00 $ 300.00 $1,000.00 r I, City of Orono Water Operating Fund Cash Flow Budget 2001 Actual 2002 Budeet Cash Flows From Ooeratin£ Activity: 2003 Budeet Operating Revenue 336,860 290,280 299,970 Operating Expenses, including Depreciation _______^302,260 ______31^,070 ___301,510 Operating Income (Loss) Adjustments to reconcile operating income (loss) to net cash from operating activity - 34,600 (11,790)(1.540) Depreciation 55,780 55,580 55,670 Net Catii From Operating Activity Cash Flows From Caoital. Financing & Investine Activity: ____ 90380 43,790 54,130 Interest Received on InvesOnents 48,025 40,700 32,370 Property Taxes for Revenue Bonds 500 0 0 Special Assessments for Revenue Bonds 36,495 34,050 final 0 Special Assessments for Water Plant Rehab 43,730 40,850 36,460 Antenna Leases Revenue 69,650 72,190 94,620 Connection Fees 4,080 15,000 3,000 Principal Paid on Revenue Bonds (134,060)(141,650) final 0 Interest A Other Charges on Revenue Bonds (7,550)(3,750) final 0 Principal A Interest on Interfund Loan (53,870)(52,120)(50,390) Capital Outlay 0 (93,500)(20.000) Residual Equity from Other Funds 0 0 0 Net Casli From Cap* Fla A Invest Activity ___^7,000 (88330)96,060 Net Increase (Decrease) in Cash From Operating, Capital, Fiaaaciag 4b lamtiag Activity 97380 (44,440)150,190 Cash January 1 894,870 992.250 947,810 Cash. December 31 992,250 947,810 1,098.000 3.2% rate increase % Increase 3.2% -0.2% payment «S in 2003 water plant rehab ptoj Mm City of Orono Sewer Operating Fund Cash Flow Budget Operating Activity 2001 Actual 2002 Budget 2003 Budget Cash Flows From Capital. Financing ft Investing Activity: Gnmts 9l Aids from Other Governments 5,000 —— Interest Received on Investments 91,820 87,840 59,669 Special Assessments for Revenue Ronds 15,830 14,770 final 0 Interest Received on Cenified Accounts 4,020 5,000 5,000 Metro Council Environmental Serv - CVC 46,590 20,630 20,630 Connection Fees 45,360 9,500 9,500 Metro Council Environmental Serv • Def Gain (9,140)(9.530)(9.140) Principal Paid on Revenue Ronds (130,930)(138,350)final 0 Interest 9l Other Charges on Revenue Ronds (9.620)(3,560)final 0 Operating Transfers Out (27,580)(13.110)(12,660) Capital Outlay (225,490)(121,500)(100.000) Net Caaii From Cap, Fin A Invest Activity (194,140)(148310)(27,001) Net Increofe (Decrease) In Cash From Operating, Capital, Financing A Investing Activity (24310)(630)118359 Cash January 1 1,729,590 1,705,280 1,704,650 1.705.280 1.704.650 1.823.209 2.8% rate increase % Increase Operating Revenue 755,700 771,000 792,590 2.8% Operating Expenses, including Depreciation 767,020 803,810 848,140 5.5% Operating Income (Loss)(11.320)(32,810)(55,550) Adjustments to reconcile operating income (loss) to net cash from operating activity - Depreciation 181,150 180,490^201,110 Net Cash From Operating Activity 169,830 147,680 145360 City of Orono Golf Operating Fund Cash Flow Budget 2001 Actual 2002 Budeet 2003 Budeet %Ihcrease Oneratine Activity Operating Revenue 157,720 217,090 223,600 3.0% Operating Expenses, including Depreciation 193,020 206,060 210,700 2.3% Operating Income (Loss)(35,300)11,030 12,900 210700 Adjustments to reconcile operating income (loss) to net cash from operating activity • Net (Increase) Decrease In Inventory A Rcvbis (230)mm •• i Net Increase (Decrease) in Liabilities 4,240 •••• Depreciation 20,550 17,430 18,850 NH Cask From OptraMng AetKUy 28,460 31,750 Cash Flows From Caoital. Financine & Investine Activity: Inlcfcst Received on Investments 18,410 15,300 11,100 Capital Outlay (27,270)(21,000)(19,000) Gain (Loss) on Asset Dispositions 1,070 0 0 Net Cath Pram Cap. Fla A iBveit Activity (7.790)i&m (7,900) Net lacreaac (Dccrtatc) la Caih Froai Operatlagn Capital, FNuiaclag A lavestiag Activity (18330)22,760 23350 i i Cash January 1 312,810 294,280 3|7340 1 [ Cash,Decembef 31 294,280 Tr.-rac-— - -■ _______317,040 _____ 340,890 i .. . NOTICE OF PUBLIC MEETING Notice is hereby given that the Orono City Council will meet in a worksession at 5:30 p.m. on Thursday, November 21,2002. in the Orono City Council Chambers. 2780 Kelley Parkway, Orono, Minnesota. The purpose of the worksession is to discuss issues related to the 2003 budget, telecommunications tower regulations, Kelley Parkway streetscaping, the Dahlstiom residential development project at Willow Drive and Highway 12. fire service, and other issues of current interest. This meeting is open to the public. JUL^ Lin Vee, City Clerk 1 •! \ h ' i .! r«I : 4