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HomeMy WebLinkAboutCC 08-26-1976 { . MINUTES OF SPECIAL COUNCiL MEETING Village of Arden HI lis Thursday,. August 26, 197' - 7:30 p.m. Shoreview Vi I lage Hall . CAll TO ORDER Pursuant to due call and notice ~e.P.t...~spe I ~);..me.W.' nS..9.f.d;#..d the Village Council. Of~ HI s$i~ a ~rftffe~l was called to order by r V" ' 1,'KII t the ~norevlew Village Hal I, 4665 North Victoria Street, Shoreview, Minnesota, on Thursday, August 26, 1976 at 7:40 p.m. RO II CALL Present from Arden Hi I Is: Mayor Crepeau, Councilmen Crichton, Woodburn and Wingert. Present from North Oaks: Councilmen Bjorklund, Bondus and lauder. Present from Shorevlew: Councl Imembers Weyandt, Wedell, Newbold and McGraw. DISCUSSION Councl Imember Weyandt gave a statement of purpose saying that we would be hearing from community representatives and staff so that we wil I have a common base of Information. He also pointed out that this is a public meeting ~nd not a public hearing. The purpose of the meeting Is also to discuss the economic situation. The quality or competency of the Fire Department Is not In question. Counci Imember Wedell updated the other Councllmembers as to what has transpired In the past and currently with the Lake Johanna Fire Department. Mr. Wedel I also pointed out that we are pleased with the service of the Fire Department. Our difference is not that of service but rather one of a philosophical dl fference as to the future development of the lake Johanna Fire Department --- baSically the ownership of Capital Equipment. It was pointed out that the Lake Johanna Fire Department has been a volunteer fire department for approximately 35 year-s. .Unlike other volunteew.QE1P.ll!r:ml1'1t?, It Is owned by ., ."t~ fire departmen~ the community it serves. They are unpaid ----they do not receive any reimbursement for going to a fire. Councllmember Wedell pointed out that there Is a retirement program after 20 years of servl ceo The retl rement was raised recently to $120 per month. Three communities contribute to the Fire Department according to their assessed valuation. This amounts to approximately one-half for Shoreview, one-thtrd for Arden Hi lis and one-sixth for North Oaks. Contract for service is for one year. . In 1967 and 1968 the total Fire Department Budget was $26,000. In 1969 It was $29,000. These amounts were probably not high enough. In 1975 the budget was up to $60,000, currently the budget Is $79,618. The proposed budget for 1977 is $94,123. Councllmember Wedell reviewed the proposed budget. He said he agreed with the Increase in General 0verhead; Bui tding Expansion was reduced by $15,OGO,because the final payment had been made for the expansion of Station 2; and EquJpment Expansion was down $3,000. The big issue Is Equipment Depreciation. There was an 16' Increase In the budget. We are paying for e~ulpment in advance when we have a one-year contract and equipment might not be purchased for several years. We do not gJs~~ree with th~ need, but there is an expansion plan for Station I~a~ is also involved. .. Councl !member Wedell mentioned that 3 or 4 years ago the FI re Department wanted a "squirt", a ~mal I scale snorkei. Because the three communities were Involved. an outside consultant was called in -1- Ml nutes of Specl a I Counc! I ~leeti.nq Page two to give a r.gport. The reslltts of the report showed that a ladder truck would be a more appropriate purchase. Augu:',t 26, 1976 Again it was pointed out that the concern was about expense and ownership; should this equipment be given to the lak.~ Johanna Fire Department. It was felt that we should lease it to them so we could retain an equity since we had to pay for it. We have a one-year contract, but we would be financing It over several years. Over the years we rave actually made payments to Lake Johanna Fire Departmen"t and should own the equipment. The Fire Department does not fe.!1 WEe should have equity tn the equipment. . Councl Imember Wedell presented a list of options as follows: (I) come up with the 18% ar.d go along with the contr3ct; (2) buy out the fire department; (3) individually contract with other fire departments; or (4) start our own fire department either individually or co I I ect I ve I y . Councllmember Crichton said that he is very satisfied with the present service, however, they are a monopoly since there are no other options available. The Impact of $94,000 for this year was great and It could be an even greater amount next year. They are estimating $263,000 for purchasing future equipment at a $28,000 a year charge. Another $10,000 wi II be Included next year for replacement of the ladder truck. Another $6,000 wi II be Included next year for a $100,000 vehicle that will ,"e bought this year. That Is over $44,000 yearly acc~ual for futur$ purchases. On this basis, by next year the Fire Department wi II own some- where in the neighborhood of $513,000 worth of equipment. it was pointed out that two items In General Malntenance amount to $3,500 which werp~~JJY first payments of an accrual for. future buildings. The~.-iiF9' for $31,000. This will be another amouni. for future use. If we pay, we are giving our approval to new buildings. The department knows its business, but t~ey are not under any pressure to keep the cost down. I f we hav" to spend th I s much money, let us keep the tltle to the equipment. Councllmember Bjorklund said that North Oaks has bee" very happy with -their relationship wli"h the department. haole no arguments with performance, but It is getting to be big business because the communities are growing. North Oaks does not want to put money Into Capital Equipment and not have anything mora than a one-year contract. He felt the financial structure should be changed. . It was pointed out by Councl Imember Bondus that we do not have the rl ght to spend taxpayers m<lOey In tn I sway. We shoul d pay for the service rendered, but not In advance for equipment. Councllmember McGraw concurred with the feelings of the other Councllmembers In regard to paying In advance, but not having any equity. He suggested the possibility of leasing the equipment f{.r $1.00 per year to the Fi re Departmeni'. There I s the poss i b I II ty that the Fire Department will go out of busIness. The ladder truck will be bought by a Joint Powers Agreement and will ,-emaln an asset of the. Joint Pc.wers Agreement. The Fire Department has agraed on that one item but not on all future equipment. Councllmember Wedell made 11 few comments regarding dlspatchlng. There are four dls~atchers and they are paid to be 0' duty. The Ramsey County Sheriff's Office receives call.s for ot,e,- fire departments and dispatches equipment. He felt that we could Increase efficiency by using Ramsey County. The cost to change the equipment would be $12,000 to $15,000. Shorevlew City Manager, Gal'y Dickson, pointed out that the 911 Program has been studied by elected and appointed officials and Northweste rn Be I I an d hEl updated Its present status. -2- , 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- . Minutes of Special Council Meeting Page four Mike McKinney of the Fire Department, polnted out that the charge from another fire department would als.p include a depreciation schedule. Councllmember Weyandt pointed out that anot~ler fire department would be accountable to a Counci I. August 2f, 1976 . Chief Koch said that the mcney Is put In savings certificates which are Federally insured. Councllmember Wedell suggested that the Councils tako this back to their individual Councils to consider the options. He was not comfortable with a member missing. Councllmember Wedell pointed out that although the Joint Powers Agreement has been drawn up, It has not been signed by the three villages. Dr. Woodburn suggested the creation of an authority consisting of the Cities and the Fire Department with bonding power. It was then suggested that the attorneys advise us of the legality of this arrangement. Or. Wooaburn suggested that Uave Koch aSK tne membership how they feel about this suggestlon~ Karen Torgerson, 498 West Highway 96, stated that safety comes first. She wants fire protection for her family. Councl Imember Weyandt mentioned that a few years ago said do not Increase spending more than 6% per year. Limitation law of 6% Is hard to keep. the legislature The Levy u..uJJ wi.d Coune I I ~ . , , r d I rE,cte d that the Arden H II Is Attorne/--..c- the Shorevlew Attorney and possibly Dr. Woodburn _ . ,. to Investigate the authority suggestion made by Dr. W06d)urn. .~ Council d~<;V~'9Jthe il," ~ . ~ Cler!<,"'to ~~adJacent ~~llaga~ rA..;~~d~.~~;,/__~-~ ..,...~ "'~e The City Manager of Shorevlew will report on establlshi~g a Trl-Clty Fire Department at the next meeting. Due to the urgency of the matter, It was felt that another meetIng date be set for a joint meatlng. The next meeting~; II be Wednesday, September 8, 1976 at 7:30 p.m. In Shorevl,~w. Adjournment ~. I '~e meetln~Journad at 9:45 " p.m. azA/A~~~_L Charlotte McNiesh Clerk Administrator . Notice of Meeting The next Special Council Meeting will be held on Wednesday, September 6, 1976 at 1:30 p.m. at the Shoreview Village Hall. -4-