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HomeMy WebLinkAboutCity Council Packet 09-03-2002 SpecialAgenda City of Plymouth Budget Study Session Tuesday, September 3, 2002 7:00 p.m. Public Safety Training Room 1. Call to Order 2. Discuss 2003 Proposed Budget Issue 1. Report on HRA meeting Issue 2. Report on Water Resources Fund Issue 3. Bonding of Street Reconstruction Issue 4. Fire Department Equipment Issue 5. Figure skating revenue 3. Set future study sessions 4. Adjourn DATE: August 29, 2002 TO: Dwight Johnson, City Manager FROM: Jim Barnes, Housing Manager, through Anne Hurlburt, Community Development Director SUBJECT: Housing and Redevelopment Authority (HRA) Tax Levy Discussion At their Wednesday August 28`h meeting, the HRA Board of Commissioners reviewed their preliminary 2003 budgets including the proposed HRA tax levy, which the City Council must approve. As suggested by the City Council on at their first budget study session on August 26, Council member Harstad attended and addressed the HRA Board regarding a possible increase in the HRA's Levy. In addition to Council member Harstad, Mayor Tierney attended the meeting. Council member Hewitt, a member of the HRA, was also present. Several local members of MICAH were also in attendance. Council member Harstad asked the HRA to consider increasing their tax levy to address the un- met need for the HRA's current programs. The proposed HRA budgets would require a tax levy of $552,050 compared to the limit of $932,833, leaving unused levy authority of $380,783. Council member Harstad indicated he would like to use the additional levy proceeds to cover the debt service on a bond issue to fund housing rehabilitation activities. The option of using the additional levy funds to directly increase the operating budget for existing programs was also discussed. The HRA Board voted unanimously to recommend that the City Council approve a tax levy of 552,050, as indicated in the draft budget. The Board had two primary concerns regarding an increase in the levy. First, they were concerned that there was no specific plan for the use of the additional funds. They felt that there should be a well-developed strategy in place that was in line with the HRA mission and goals. The second concern was the overall impact on taxpayers given the increase already anticipated by the City's general fund needs and the current economic conditions at the state and local level. The Board did make a commitment to have further discussions on updating its strategic plan and to consider what additional programs or projects they may want to include in the 2004 budget. Attached is a copy of a memo prepared by staff for the HRA summarizing the issue of the tax levy, the impact of possible levy increases and the history of the HRA tax levy. A copy of the draft minutes from the meeting is also attached. DATE: August 27, 2002 TO: HRA Board of Commissioners FROM: lrn-B es, Housing Manger, through Anne Hurlburt, Executive Director SUBJECT: 2003 HRA Tax Levy On Monday August 26`', the City Council held the first of three budget study sessions. Council member Harstad brought up the idea of increasing the HRA's tax levy to the maximum allowed by law and using the additional tax revenues to cover the debt service on a bond issue to be used for affordable housing activities. Specifically, Council member Harstad would like to use the funds to address the "un -met" need of the HRA's current programs (see memo to council included in your packet). In the proposed HRA General Fund budget, Staff has requested a HRA tax levy of $552,050 out of an available 932,833, which leaves unused levy authority of $380,783. Increasing the tax levy would give the HRA Board a couple of options. The first option is to add cash flow to the existing programs and the second is to use the additional tax collected to cover debt service on a bond issue or other financing mechanism. Staff has reviewed the possibility of issuing bonds with the City's Finance department and our financial advisor, Springsted. There are basically two type's of bonds that could be issued to address housing activities. Essential Function bonds are the most common type of issue. These bonds would not require voter approval; however, they could not be used to augment our existing programs. Rather, they need to be used'for a specific project i.e. Plymouth Towne Square, that is owned and operated by the HRA. The second type of bond issue would be a General Obligation bond. This type of bond is much more flexible, but it would require the HRA and the City to hold a referendum. The tables below illustrate examples of the effect on taxpayers in Plymouth if the HRA were to increase their levy to either directly support existing programs or use the additional revenue to cover debt service on a bond issue and a historical overview of the HRA levy. Effects on Levy Increase Property Value Annual tax increase per For every $10,000 increase 366,700 household, using in the tax levy, taxes 1995 maximum tax levy increase b 150,000 8.10 0.20 284,000 (average) 15.34 0.40 Historical Review of HRA Tax Levv Year Amount 1993 366,700 1994 377,000 1995 383,200 1996 383,789 1997 390,997 1998 409,959 1999 446,214 2000 464,344 2001 483,178 2002 538,423 DRAFT MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY August 28, 2002 PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, Leon Michlitsch, Tim Bildsoe, and Sandy Hewitt ABSENT: None STAFF PRESENT: Executive Director Anne Hurlburt, Housing Program Manager Jim Barnes, Support Services Manager Denise Hutt, HRA Specialist Tracy Jones, HRA Specialist Kristine Aritt, Office Support Representative Barb Peterson OTHERS PRESENT: Mayor Joy Tierney, Council Member Scott Harstad, Grace Management Representative Jodi Boedigheimer, Cookie Kulas, Barbara Brooks, Vivian Greeninger, Ed Goldsmith, Sandy Dockter and Ken Wendinger 1. CALL TO ORDER Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order August 28, 2002 at 7:03 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Bildsoe, seconded by Commissioner Hewitt, recommending approval of the July 18, 2002 minutes. Vote. 5 Ayes. Motion approved unanimously. Housing Manager Barnes stated that two items will be added to the agenda; tax-exempt bonds for West Lutheran High School and Commissioner Hewitt requested a discussion regarding Plymouth Towne Square. 3. CONSENT AGENDA A. Plymouth Towne Square — Accept monthly housing reports. B. Stone Creek Village — Approve Cooperation Agreement and Initial Agreement to accept 13 MHDP" units. C. 2001 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER) and Annual Citizens' Participation Meeting. MOTION by Commissioner Bildsoe, seconded by Commissioner Hewitt, approving the Consent Agenda items. Vote. 5 Ayes. Motion adopted unanimously. Plymouth Housing and Redevelopment Authority DRAFTAugust28, 2002 Page 2 4. NEW BUSINESS 4A. Plymouth Towne Square Commissioner Hewitt stated that she had met with six residents from Plymouth Towne Square and they had concerns regarding the rent increase. She said they didn't seem to understand the rent recertification process. Commissioner Hewitt said these six residents represented the resident council. Housing Manager Barnes said the rent recertification process did not change from previous years. Grace Management Representative Boedigheimer clarified that the 'six residents were not representing the council or the other residents. She said a few tenants are disgruntled because they received considerable rent increases due to a large amount of assets. Housing Manager Barnes said he and Director Hurlburt attended the resident meeting at Plymouth Towne Square and one item the residents brought up was Section 8. Housing Manager Barnes said the residents seemed to understand the process, but that staff would rather wait until we know if the vouchers are received before explaining the process in more depth. Director Hurlburt said some residents were worried that Section 8 would bring a bad element into Plymouth Towne Square. Director Hurlburt told the tenants that if Section 8 vouchers will be beneficial then they will use them at Plymouth Towne Square. Commissioner Hewitt felt the people she met with did not make negative comments regarding people who use Section 8 vouchers. She thinks they do need more explanation and Director Hurlburt stated that Grace Management Representative Boedigheimer has offered to sit down one on one with them to explain the program. Commissioner Hewitt said her preference would be to meet with them herself. Commissioner Hewitt said another concern of the residents was regarding the new management company. The residents felt that the staff does not spend enough time on site. Commissioner Hewitt said she felt the residents were led to believe that the owners would be on site more often. Director Hurlburt explained that they are going through an extensive process to transfer management from Walker to Grace and she feels Grace Management is meeting the expectations set for them. Chair Henderson said the first priority was expenses for the building and the services will be addressed at a later time. Commissioner Hewitt feels that they are missing out on services at this time. Housing Manager Barnes said that all services provided prior to Grace taking over are being done now. Commissioner Bildsoe asked if their concern was social things to do or social services, which could be provided by other sources. Commissioner Bildsoe suggested doing a survey to find out what these residents really want. Discussion was held regarding the services that could be provided. Mayor Joy Tierney said she feels one of the problems is the aging process of the residents and that we need to keep in mind it is an independent facility. Commissioner Bildsoe feels we should go the extra step and find out what the residents need is. Director Hurlburt said the residents should also be furnished information about the City and what it offers, especially at Plymouth Creek Center. Commissioner Bildsoe suggested taking a bus tour to Plymouth Creek Plymouth Housing and Redevelopment Authority August 28, 2002 Page 3 D FIZ A F T Center. Grace Management Representative Boedigheimer said that finances are not available for a lot of extra services. Chair Henderson suggested providing information in the Plymouth Towne Square newsletter regarding services, having a bus tour to Plymouth Creek Center and do a survey to find out what the residents want. A video was presented about Plymouth Towne Square, which was produced by Northwest Cable, and promoted the two bedroom openings. Commissioner Hewitt voiced another concern regarding caretakers being on site. Grace Management Representative Boedigheimer said a problem occurred during a power outage when the residents were trying to contact the caretaker. She said the policy is that the caretakers are contacted by cell phone after hours and one of three caretakers is always on call. Grace Management Representative Boedigheimer said the procedure for emergencies is in the resident handbook. Housing Manager Barnes said there are plans to update the resident handbook in the future. 4B. 2003 HRA PRELIMINARY BUDGET Housing Manager Barnes stated that the 2003 budget is being prepared at this time. The City Council has the overall authority to adopt the HRA's tax levy with the recommendation of the HRA. A budget study session was held last Monday, August 26`h and another will be held on Sept. 3`d. He explained that the HRA budget includes three separate program budgets: Community Development Block Grant (CDBG); Section 8, which is funded entirely by federal dollars; and the HRA General Fund. CDBG is primarily funded by federal funds except for approximately $17,000 from the tax levy. The proposed 2003 tax levy is a total of $552,050. Additional revenues in the 2002 General Fund Budget included the Fox Forest annual payment of $30,000, $25,000 interest earnings and $40,000 from retained earnings for PTS. Housing Manager Barnes explained the main focus was to maintain a "status quo" for this year. In the CDBG budget, the main change reflects the expected income and expenditures from federal funds including repayment and carry-overs from previous years allocations. The large carry-over amount is due to a commitment the HRA made to the Stone Creek Village project. The property tax support for this budget includes a modest $176 increase in the tax levy. The employee training line item has been increased to $3,500 to send two new Housing Specialists to a training program offered through the National Development Council. Support Services Manager Denise Hutt explained the proposed changes to the Section 8 program. Staff proposes to increase the 24-hour per week Housing Eligibility Specialist position to 40 hours per week. She said 50 additional vouchers have been applied for from HUD and the proposed budget is presuming that we will be awarded at least 25 new vouchers. The cost to make this position full time will be approximately $17,122. Director Hurlburt said that even if we do not receive the extra vouchers we may still propose to make this change, as current federal revenues will cover the additional cost. Plymouth Housing and Redevelopment Authority August 28, 2002 Page 4 Dil w IAAF In the HRA General Fund the increase is $13,451 or about 2.5%, which is primarily to cover cost of living increases. Housing Manager Barnes said we are budgeting $40,000 from the Plymouth Towne Square Reserve accounts to compensate for any shortfall we may have as a result of the rent structure change. Two handouts were passed out regarding the 2003 HRA Tax Levy and a summary on the impact of the City's tax levy that was provided to the Council on Monday evening. Director Hurlburt reviewed the two documents with the HRA Board. She indicated that the 2.5% increase in the City's budget was the lowest in over 10 years. In regard to the HRA tax levy, Director Hiirlburt explained the calculation and impact on a home valued at $284,000 and $150,000. Housing Manager Barnes explained that Council Member Harstad is proposing to increase the HRA's tax levy to the maximum allowed by law and use the additional tax revenues to cover the un -met need of the HRA's current programs. Housing Manager Barnes explained the memo included in the packet regarding information on the HRA program waiting lists. He cautioned that we have not marketed these programs on any large scale and waiting lists for the Section 8 program and Plymouth Towne Square are not opened very often because we don't have the funds to cover them at this time. Only recently has Plymouth Towne Square opened its two- bedroom waiting list. Commissioner Hewitt asked what list the 27 persons for 2 -bedroom units came from. Housing Manager Barnes replied they are from both the old list and recent applications. Chair Henderson asked what the $12 million potential funds required referred to and Housing Manager Barnes said it would be the cost to build a comparable facility such as Plymouth Towne Square at this time. Housing Manager Barnes introduced Council Member Scott Harstad. Council Member Harstad stated that he is very involved in transit and that the Met Council is linking affordable housing with transit. He stated that his presentation would focus on dollars. He asked Director Hurlburt to explain the rental housing replacement credit aid. Director Hurlburt explained that the legislature enacted a very complicated tax reform last year and explained the rental housing replacement aid. Plymouth gets no money for that aid compared to other Cities because our tax rate is lower. She explained that a low tax rate has many benefits but not for this aid calculation. Commissioner Ludovissie asked if the funding should be changed at this time. Director Hurlburt replied there is not anything we can do at this time to affect the 2003 calculation. The Mayor explained that the formula the State uses to distribute funds is very hard to understand. She said the good news is that some reforms were passed and hopefully we will be able to budget better next year. She said we just want to get out of state control and manage our own funds and not deal with the state. Director Hurlburt stated it is a very tough year for budgeting. Council Member Harstad continued his presentation on un -met needs. The Rehab Program shows 21 families are on the program and the funds needed are $420,000. He questioned how many requests would be received if we were to advertise for this program. He used examples from the City's Comprehensive Plan showing 17.4% (4,439) of homes in the city are 30 years old plus based on 1990 information. He also said that 15% or 2,897 units of owner occupied homes in 1999 were valued at $100,000 or less by assessor's data. Director Hurlburt said the Plymouth Housing and Redevelopment Authority August 28, 2002 Page 6 coming up also. Chair Henderson said she is uncomfortable at looking at increasing the levy this year. The most important factor is that we don't have a plan in place at this time. Council Member Harstad repeated his desire to raise the HRA levy. MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie, recommending that the City Council adopt the 2002 HRA preliminary budget of $552,050. Commissioner Hewitt said she would like to raise the amount. Commissioner Bildsoe felt .that we couldn't do it without a plan. Chair Henderson said that the Board needs to update its strategic plan and it should be done in the Spring. Vote. 5 Ayes. Motion adopted unanimously. Chair Henderson asked that we revisit the CAPER report at a future date. 5C. REQUEST TO CHANGE HRA MEETING DATE IN OCTOBER MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch to reschedule the October meeting from October 17, 2002 to October 10, 2002. Vote. 5 Ayes. Motion adopted unanimously. 5D. TAX EXEMPT BONDS FOR WEST LUTHERAN HIGH SCHOOL Housing Manager Barnes explained the purpose for the request is to refinance existing debt. Housing Manager Barnes asked if this is something the Board feels staff should pursue. At this time there are no formal bond policies and staff is recommending that the HRA adopt the City bond policy. West Lutheran High School asked that the $2,000 fee be waived. The consensus of the HRA Board was not to do that. Director Hurlburt said the HRA will let them apply but will follow the Cities policy. Chair Henderson suggested getting the a policy in place for the HRA. MOTION by Commissioner Hewitt, seconded by Commissioner Bildsoe, that the HRA adopt the Cities bond policy for West Lutheran High School. Vote. 5 Ayes. Motion adopted unanimously. 5. ADJOURNMENT Meeting adjourned at 9:45. HRA/Minutes/082802 T,SSue Water Resources Fund Street Cleaning — Drainage Maintenance — Water Resources Tech — Incentive Program — Pond Cleaning Option The attached option includes the following items, which are additions to the 2002 Budget: Street Cleaning Division 203,660 Drainage Maintenance Division 283,866 Water Resources Tech 40,000 Incentive Program 25,000 Pond Cleaning Option 509,780 All these items with the exception of the pond cleaning are found in the current budget proposal. In order to afford the pond cleaning, in addition to the other items, a rate increase to 4.20 per month would be required. The current rate is $3.25 per month. In addition, the rate would have to increase an additional 5% every 2 years for inflation. Note: The $509,780 for pond cleaning is the total package number. Approximately 28,672 would have to be supported by the General Fund in the first year to pay for time spent snow plowing. In succeeding years the General Fund share would be about 51,425. Bassett Ck Wshed Fees 0.05 139,170 166,734 177,171 186,029 195,331 205,097 215,352 226,120 237,426 249,297 261,762 Misc Contractual 0.03 135.000 19,()81 19,653 20,243 20,850 21,476 22,120 22,784 23,467 24,171 24,896 Capital In'lanvom<ni, Lake Water C1P Other Capital 32,471 7,700 7,700 7,700 7,700 7,700 7,700 7,700 7,700 7,700 Allocations 0.07 18,517 19,416 20,775 22,229 23,785 25,450 27,232 29,138 31,178 33,360 35,696 Transfers 0.03 15,000 20,450 21,064 21,695 22,346 23,017 23,707 24,418 25,151 25,905 26,683 Strcet Cleaning 0.05 203,650 213,833 224,524 235,750 247,538 259,915 272,910 286,556 . 300,884 315,928 Drainage Maintenance 0.05 283,866 298,059 312,962 328,610 345,041 362,293 380,408 399,428 419,3" 440,369 Total Expenses====> 1,275,541 2,904,700 2,376,296 2,561,966 2,601,925 2,056,329 2,240,339 2,442,127 2,313,872 2,407,762 2,505,994 Ending Rat ance =_> 2,115,109 1,260,272 934,558 536,835 110,992 368,427 485,518 558,315 804,489 1,135,402- 1,423,553 Water Resources Ease Projections (w -tech and pond cleaning).As 812812002 11:39 AM Water Resources Fund, 505-1750 10 Year Financial Analysis Cashllow Projection Base Plus: Street Cleaning - Drainage Maintenance - Water Resources Tech - incentive - Pond Cleaning Investment Return 5.00% Inflators 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 ileeinnine Oalancc 1,795,275 2,115,109 1,260,272 934,558 536,835 110,992 368,427 485,518 558,315 804,489 1,135402 Itevenucs tIn, 1, 0015 161.st8 168461 175488 482,620 489,860 497,208 504,666 512,236 519,919 527,718 535,634 Ice 3.25 110 4.20 .1. 11 441 4.63 4.63 4.86 4.86 5.10 5.10 Stonnwmcr Utility Fces 0015 1,500,000 1967,536 1,997,050 2,128,356 2,160,281 2,302,071 2,336,602 2,489,465 2,526,807 2,691,361 2,731,732 Interest Earnings 95,375 82,326 53,532 35,888 15,801 11,693 20,828 25,459 33,239 47,314 62,414 Total Rcvenuc > 1,595,375 2,049,863 2,050,582 2,164,243 2,176,082 2,313,764 2,357,430 2,514,924 2,560,046 2,738,676 2,794,145 lanenses Oi0.Taling Personal Services 0.05 171,257 184,204 193,414 203,085 213,239 223,901 235,096 246,851 259,194 272,153 285,761 I ech Position 0.05 40,000 50,000 52,500 55,125 57,881 60,775 63,814 67,005 70,355 73,873 Materials & Supplies 0.03 36,250 36,250 37,338 38,458 39,611 40,800 42,024 43,284 44,583 45,920 47,298 Pond Cleaning 0.04 509,780 391,057 406,699 422,967 439,886 457,481 475,781 494,812 514,604 535,189 Incentive Program 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Contractual Services Bassett Ck Wshed Fees 0.05 139,170 166,734 177,171 186,029 195,331 205,097 215,352 226,120 237,426 249,297 261,762 Misc Contractual 0.03 135.000 19,()81 19,653 20,243 20,850 21,476 22,120 22,784 23,467 24,171 24,896 Capital In'lanvom<ni, Lake Water C1P Other Capital 32,471 7,700 7,700 7,700 7,700 7,700 7,700 7,700 7,700 7,700 Allocations 0.07 18,517 19,416 20,775 22,229 23,785 25,450 27,232 29,138 31,178 33,360 35,696 Transfers 0.03 15,000 20,450 21,064 21,695 22,346 23,017 23,707 24,418 25,151 25,905 26,683 Strcet Cleaning 0.05 203,650 213,833 224,524 235,750 247,538 259,915 272,910 286,556 . 300,884 315,928 Drainage Maintenance 0.05 283,866 298,059 312,962 328,610 345,041 362,293 380,408 399,428 419,3" 440,369 Total Expenses====> 1,275,541 2,904,700 2,376,296 2,561,966 2,601,925 2,056,329 2,240,339 2,442,127 2,313,872 2,407,762 2,505,994 Ending Rat ance =_> 2,115,109 1,260,272 934,558 536,835 110,992 368,427 485,518 558,315 804,489 1,135,402- 1,423,553 Water Resources Ease Projections (w -tech and pond cleaning).As 812812002 11:39 AM Issuance of bonds or Certificates of Indebtedness to cover loss of State Aid Attached is a schedule showing the cost of issuance of bonds or certificates of indebtedness to cover the loss of State Aid. The schedule shows the additional tax on the average home of $284,000 with issuance of $300,000, 500,000, and $900,000. The additional cost as shown will be the total additional cost over the estimated 10 year life of the issue. Bonds or Certificates of Indebtedness Options for loss of State Aid Net Add'I Add'I Tax on cost to City Averaae General Fund: Proposed budgeted revenue $20,386,968 Estimated State Aid loss -300,000 Transfer from street Reconstr. Levy 300,000 General Fund revenue after transfer $20,386,968 Street Reconstruction Fund: Proposed levy $1,283,400 Transfer to General Fund -300,000 Sale of bonds or certificates 300,000 Street Reconstruction Fund Balance $1,283,400 General Fund: Proposed budgeted revenue $20,386,968 Estimated State Aid loss -500,000 Transfer from street Reconstr. Levy 500,000 General Fund revenue after transfer $20,386,968 Street Reconstruction Fund: Proposed levy $1,283,400 Transfer to General Fund -500,000 Sale of bonds or certificates 500,000 Street Reconstruction Fund Balance General Fund: Proposed budgeted revenue $20,386,968 Estimated State Aid loss -900,000 Transfer from street Reconstr. Levy 900,000 General Fund revenue after transfer $20,386,968 Street Reconstruction Fund: Proposed levy $1,283,400 Transfer to General Fund -900,000 Sale of bonds or certificates 900,000 Street Reconstruction Fund Balance 1.42 Y 84,873 2.56 $136,4551 4.54 $234,6191 1SSu e DATE: August 27, 2002 TO: Dwight Johnson, City Manager FROM: Richard C. Kline, Fire ChieL/' SUBJECT: 2003 Fire Department Budget During the City Council study session on August 26th several questions were raised concerning the proposed 2003 Fire Department budget. Many of the questions centered around line item requests contained in the original fire department request that had not been authorized in the revised "manager's" budget proposal. Listed are the line items discussed during the study session, a brief explanation of the need" or reason for the request and the impact of not funding these line items. The line items are listed in order offunding priority, in the event they are again authorized. Fire Operations Machinery/Equipment ($17,820) Funding was requested to equip Fire Station II with a vehicle emission exhaust system. This is a continuation of a 1998 project to install vehicle exhaust systems in all three City fire stations. Fire Station I was equipped with a PlymoVent vehicle exhaust system in 1998. All three fire stations currently rely on "general dilution" mechanical exhaust systems to remove exhaust emissions. This type of system has proven to be ineffective and inefficient in the removal of vehicle exhaust from our apparatus bays. The most effective means to exhaust vehicle emissions is through a source capture exhaust/direct ventilation system. A source capture system significantly reduces employee exposure to the fumes and particulate matter produced by diesel engines. Additionally, diesel exhaust emissions are absorbed into firefighter clothing, station furniture, and also discolor walls and ceilings. The Plymouth Fire Department Safety Committee has issued a report relative to vehicle emissions in our fire stations, reinforcing the need for a source -capture system. In an effort to reduce employee exposure to the products of combustion, the Department currently employs a combination of administrative controls (established policy and procedure for limiting exhaust emissions within the station), operational controls (opening bay doors and moving apparatus out of the station) and engineering controls (activating the station general dilution ventilation system) when performing operational apparatus inspections and responding to incidents. These "controls" are performed year-round. When prioritizing this request, staff also considered the impact that exhaust particulate and fumes has upon the morale of the firefighters. When the City is perceived as un- caring of the needs of its employees, the issue of employee retention may be raised. Concerns of employee health, the frequent laundering of personal clothing and an atmosphere not conducive to a productive work environment have been mentioned by fire personnel assigned to stations not equipped with source capture exhaust systems. Attached are pricing options for installing the requested equipment. Fire Duty Crew Safety Equipment/Clothing ($6,200) An increase in this account was for the purchase of new and replacement turn -out clothing worn by firefighters who serve on the Duty Crew Program. This is a new line item designed to better track the true expenditures of the Program. Turn -out clothing is issued based upon the following criteria: Can the firefighter be properly fitted with in-service gear? If not, the firefighter is measured for a set of gear and the set is ordered. On average, it takes four months to receive the new set of gear. Until the new gear arrives, we fit the firefighter as best we can, often limiting their duties on the fireground. We do not expose members to situations in which they are not properly equipped/protected to handle. The age and condition of the turn -out gear is considered. We have embarked upon a project to replace older gear that is on average, six to ten years old. Depending upon frequency of use, exposure, and the physical characteristics of the user, the useful life of turn -out clothing can be three to eight years. Funding in this account would provide for the purchase and replacement of turn -out clothing. Not funding this account would not jeopardize the safety of the firefighter. Fire Operations Safety Equipment/Clothing ($5,000) An increase in this account is driven by two issues: 1) The increased cost of a set of turn -out clothing has risen to 1,200; and 2) The accelerated replacement of turn -out clothing of members participating in the Duty Crew program (increased frequency of use). The Department has a positive history of promptly replacing or purchasing new turn -out clothing as needed. In my opinion, the loss of this requested funding would not endanger the safety of fire personnel. Firefighting Tools/Supplies ($16,000) Our current in-service HURST equipment Jaws of Life) consists of rescue equipment that is technologically out -dated, very heavy and awkward to use, consumes too much valuable compartment space, and is becoming difficult to maintain. HURST rescue equipment is utilized in many different fire/rescue scenarios that include the removal of victims from vehicle and industrial accidents and in firefighter rescue. The weight, profile and available power of the rescue tool play an integral part in our ability to use the tool safely and effectively to effect a rescue. As an example, our current rescue equipment weights 70 pounds and takes two firefighters to operate. New technology has allowed for lighter weight (55 pound) tools and lower profile equipment, while increasing hydraulic power. The safe use of the current HURST equipment has also been in question. Over the past decade, several firefighters have experienced lower back strains while removing, operating, and replacing our HURST rescue equipment. Lighter and lower profile equipment would help reduce the potential for injury. Our current HURST rescue equipment is approximately 15 years old. Our current HURST equipment is operational and is in-service. Not funding this request would not impact services offered to our community. Fire Operations Uniforms ($1,500) The Department is currently replacing our winter issued coat. The requested funding would accelerate the replacement of these coats. This is not a safety issue, but one of appearance. Alternative Funding Options A few alternative funding options may be considered or may impact this discussion. The Department has recently applied for a Federal FIRE grant for the replacement of our Self Contained Breathing Apparatus. The grant request is for $247,540. If awarded, this matching grant (70% federal/30% local) would be available in late 2002. In the third quarter of 2002, the Department will be applying for a grant authorized through the Minnesota Occupational Safety and Health Administration (MN -OSHA). The request for $10,000 would be utilized for a vehicle exhaust removal system for Fire Station II. This is a matching grant (50% state/50% local). If awarded, funding would be available in late 2002. We are also investigating the possibility of applying for second grant through MN- OSHA to assist with funding for an additional vehicle exhaust system. The current and proposed fire department budget(s) reflect funding for "Professional Services". In Duty Crew account (101-1532-7013), a funding amount of $5,700 is included in both budgets. Fire Department staff believes this money may be transferred for better use in other areas of the budget. Hopefully, I have provided some clarity and given a sense of priority and background for this discussion. ss r S MEMO CITY OF PLYMOUTH 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447 DATE: August 27, 2002 TO: Dwight Johnson, City Manager ( ?:,S FROM: Eric Blank, Director of Parks & Recreation SUBJECT: 2003 Ice Center Budget At the first budget study session, the question came up regarding the drop in revenue in the figure skating classes. Effective September 1, 2002, the Panda Figure Skating Club will officially take over the operation of all pro's ice throughout the year. Previously, the City registered pro's ice skaters on an individual basis and collected all of the revenue. In the future, the new Plymouth parent -run organization will purchase ice time from us for $140 per hour, and they will collect the revenue from the skaters to pay for the ice rental. The line item for ice rental charges shows a $45,000 increase in ice rental, which is additional revenue that we anticipate making from selling more ice time to the figure skating club. We think the net effect is that we will actually make more revenue by having the club buy ice time from us rather than selling indivdual hours to individual skaters. EB/ds