CC 08-26-1976 - Laserfiche WebLink

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, Minutes of Special Council Meeting Page th ree August 26, 1976 Councllmember McGarw said it seemed that we were unanimous In our feelings and that we should decide on alternatives. Mayor pro tern Weyandt called on the City Finance Director, Jim Carufel, to review the normal accounting practices. He pointed out that depreciation, when utilized, Is normally based on existing equipment and original cost. The idea of depreciation on future equipment or replacement costs results In a geometric Increase over time. Mr. Carufel revieWed some examples of these accounting policies. Counci Imember Woodburn queried how you can depreciate something that was obtained free. . Councl Imember Wedel I felt that multiple bids are necessary In equipment purchases. In regard to the legal aspect, It was suggested that we refer questions to the Shorevlew City Attorney. Questions such as: Are we paying for goods or services not received? Dave Koch, Chief of the lake Johanna Fire Department, corrected Councl Imember Wedel l's statement that pension was $120 per month. It Is actually SIOO per month. He pointed out that the department is caught In the Increase on equipment. They are trying to prepare. for these I n creases, an d they have been tota II y honest. I fit Is a matter of signing a contract for 10 years, that would be acceptable, however, they could not put a dollar. amount on It. They do want to keep the business of the three communities. Chief Koch pointed out that their original bid for a ladder truck was $126,000, then the cities said they needed 3 bids and.helted the proceedings and now the cost will probably be $175,000 to S190,000 and we aren't any closer to making a purchase. Councllmember McGraw felt that the time had come for the cities to worry about financing and buying the equipment. This way the Fire Department will not have to accumulate funds. According to Chief Koch that plan does not work. With the ladder truck as an example, he pointed out that the department Is waiting for the truck and they owe it to the people to have adequate equipment. They have also been heating a bay these past three winters for the truck that Is not there. Councllmember Wedell said the original plan was for a "squirt" then It was changed to a ladder truck, then there was the question of operation. We all learned through that process, and we have probably attained a better program as a result of looking Into the purchase a little further. Councllmember Weyandt thought It unique that we contract for a service, but we are not really In control of the taxpayers money through a representative. Councl Imember Bjorklund suggested that we agree with this years contract and then shop for a better deal. . Dave Carlson, a fireman, pointed out that the fact that the 3 villages had gotten together was a great start. He said that S30,000 seems to be the hang-up. Is there a way of setting up an escrow account? And, would it be better If they published thei r rate. Reverend Beltz, of Trinity Lutheran Church, said the problem seems to be separating depreciation from budget. He mentioned that for Instance, If your air-conditioning goes out you'call a person and do not get:5 bids. Included In the repalrmans bill Is a charge for depreciation. Councilmember Wedell pointed out that with air-conditioning you have a choice of who to call In the first place, but that Is not true with the Fire Department. Councllmember Bjorklund felt that It should be conducted In a more business-like manner and that we need more control. -3-