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DRAFT DRAFT DRAFT <br /> own then stabilizes at about $2400 per year until about year five when repair costs <br /> push the number even higher. The one -ton dump truck has a cost of ownership at <br /> about $3500 per year which increases after about five years with repairs. Consensus <br /> was that staff should review the equipment schedule and submit a plan to annually <br /> budget the depreciation expense in order that the trade -in cash is available when the <br /> replacement is most appropriate. Since the one -ton dump truck would require $30,000 <br /> cash with the trade, council was not inclined to replace it in 2013. <br /> It was reported that the savings in insurance premium by increasing the deductible <br /> from $500 to $1000 is about $2000 per year. Consensus was that the change should <br /> be made to a higher deductible and this action will be put on the next agenda. <br /> Council discussed the idea of sharing staff with Lexington, particularly the city <br /> administrator. The administrator in both cities will likely retire within the next few <br /> years, so a transition to sharing may be feasible. Advantages and disadvantages were <br /> discussed. While somewhat skeptical that it could actually work, the consensus was to <br /> continue discussions with Lexington. <br /> Council member Fehrenbacher pointed out that the draft budget includes $7000 for <br /> irrigation for Hidden Spring Park. He questioned whether the council might support <br /> allowing this number to be instead used to fund the shortfall in building one new <br /> volleyball court. The council was open to the idea, if Park and Rec would make such <br /> a request. <br /> 3. Redevelopment of 7087 20 Avenue. Administrator Larson reported on discussion <br /> with a potential business that would like to build a new building on the old public <br /> works site. In order for the project to work, the old building would need to be <br /> removed and the site filled to raise the elevation one to two feet. They would <br /> purchase the site, but it is proposed to use tax increment financing or tax abatement to <br /> prepare the property. The city would retain the southerly part of the site allowing <br /> another smaller site to be sold off and the city would keep a parcel under the water <br /> tower. The value of the new building is anticipated to be $800,000 to $1 million <br /> value. The site preparation costs were estimated to be about $150,000 and would take <br /> about ten years to recover through TIF. Consensus was that the project is a good one <br /> and should be aggressively pursued. <br /> 4. Consider acquisition of Knabe parcel in Block 8, downtown. Staff reported that <br /> Robert Knabe has expressed a willingness to sell his parcel downtown to the city for <br /> $20,000. Council felt that his price was way too high as compared to the assessor's <br /> market value and that the city would still need to pay the cost to remove the building. <br /> Consensus was that the city would not be interested unless the price were much <br /> lower. <br /> 5. Utility Rates and structure. Administrator Larson reviewed the list of residential <br /> utility customers showing the amounts paid compared to the city's costs including <br /> wastewater treatment charges by MCES. Using the average winter quarter to estimate <br /> 3 <br />