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HomeMy WebLinkAbout2023.11.13 CCM WORK SESSION11/13/23 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION NOVEMBER 13, 2023 CITY HALL – COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Pro Tem Marquita Butler at 8:56 p.m. ROLL CALL Mayor/President Pro Tem Marquita Butler and Councilmembers/Commissioners Kris Lawrence- Anderson, Dan Jerzak, and Teneshia Kragness. Mayor/President April Graves was absent. Also present were City Manager Reggie Edwards, Fire Chief Todd Berg, Fiscal and Support Services Director Angela Holm, Assistant City Manager/City Clerk Barb Suciu. FIRE TRUCK PURCHASE PLAN Dr. Edwards introduced the item and invited Fire Chief Todd Berg to continue the staff presentation. Fire Chief Todd Berg stated fire trucks are the most expensive vehicle in the City’s fleet. The hope is to receive feedback from the City Council/EDA regarding the fire truck replacement plan. Currently, there are four fire engines, all of which need to be replaced in the next few years. Because of emission regulations, the motors of the trucks will be increasing by approximately $80,000 to $100,000 by 2026. Chief Berg explained the current fleet replacement schedule replaces fire engines on a 20-year rotation and aerials on a 25-year rotation. Currently, Engine 2 is 21-years-old, Engine 6 is 16- years-old, Engine 5 is seven-years-old. Ladder 4 is 16 years old and Tower 3 is two years old. The last truck was auctioned after its replacement, but it only fetched $7,900. Chief Berg pointed out that fire engines currently cost $1 to $1.3 million and offer technology and safety improvements. The lead time is 24 to 48 months, depending on the manufacturer. The trucks that are 20 years or older have little to no value. Engine 5 is valued at $100,000 to $150,000. Ladder 4 has a value of $450,000. The costs of new trucks have increased by upwards of 25 percent each year. Chief Berg added the item is being brought before the City Council/EDA to avoid the motor emission increase that will come with the newer fire truck chassis due to huge annual increases. 11/13/23 -2- DRAFT The Central Garage Replacement Funds have not kept up with the increases over the long lives of the fire trucks. Chief Berg stated as the trucks age, there are more and more repair costs while the resale value decreases. For example, one of the heavily used engines has averaged $15,000 a year in wear and tear repair charges in each of the last three years. If the City acts now, the Fire Department can have two similar fire trucks built and delivered within 24 months. The cost of each truck would be $1 to $1.3 million. Chief Berg explained if the replacement plan is reduced from 20 or so years to 12 to 15 years, one truck could be eliminated from the fleet. There would have to be a purchase of an additional pickup truck for the fire fleet in order to have enough seats to get firefighters to the scene. It would be a savings of $1 million or more. The City could bond for three new engines in 2024 and receive two engines in 2026 with the third arriving in 2028. This will impact the General Fund of the Fire Department by an additional $61,000 annually for replacement charges, not including the lower costs for maintenance and increase in resale value after 12 years. Chief Berg stated another option is to bond for two new engines in 2024 to receive them in 2026. This will impact the General Fund of the Fire Department by an additional $89,500 annually for replacement charges, not including the lower costs for maintenance and increase in resale value after 12 years. Ms. Holm stated an option for funding is internal funding. The current replacement funding has not kept up with the increasing prices. Central Garage charges will have to be increased to adequately fund replacement needs. There is a shorter time frame to accumulate the required funds. Internal funding will require increased revenues to cover the costs, and the most likely source is the property tax levy. There would also have to be deferred replacement for other equipment. Ms. Holm noted another option is through external funding. For example, equipment certificates operate like bond issuance and have a term of five or ten years. The total cost is dependent on interest rates and the amount of financing needed. The certificates can be issued separately or in conjunction with other bonds. The City will be bonding in 2024 for a street reconstruction project. The debt levy would be increased to make the payments. Replacement costs would be reset and adjusted to accommodate future purchases. Ms. Holm added Staff plans to follow up the conversation with a long-term proposal for a fire truck replacement strategy with the City Council/EDA in a few months. She explained the documents provided to the City Council/EDA. Councilmember/Commissioner Kragness asked if the trucks were paid for in advance. Chief Berg stated there are discounts for prepayment. Councilmember/Commissioner Kragness stated the certificate option doesn’t seem to fit as it operates for five or ten years whereas the replacement schedule recommended is 12 to 15 years. 11/13/23 -3- DRAFT Ms. Holm stated there is a possibility of alternative certificate schedules, though the City typically bonds on a ten-year schedule. Councilmember/Commissioner Kragness recommended finding the peak spot for a truck value is to save the most money. Councilmember/Commissioner Kragness asked if the $61,000 in savings is per truck or per year. Chief Berg stated the $61,000 mentioned is the yearly cost with the certificate for all three trucks. Councilmember/Commissioner Jerzak noted Staff seems to prefer the first option. He asked how the levy would be impacted. He asked if the fire truck could be delivered sooner than the approximate 24-month timeline. Chief Berg stated the truck could be done sooner, depending on the capacity of the manufacturer. Lowering the replacement years would ultimately save the City money. It allows for stronger cost estimates and planning. Councilmember/Commissioner Kragness noted her agreement with Chief Berg’s assessment that lowering the replacement years would ultimately save the City money as it allows for stronger cost estimates and planning. PENDING LIST FOR FUTURE WORK SESSIONS UPCOMING ITEMS • Memorial Policy • Special Assessment Policy/Franchise Fees (referred to Financial Commission) • Beautification and Public Art Commission • Liquor Store 2 • Organizational Chart-Budget work sessions • New and Repeat Type IV Rental License Review (referred to Housing Commission) • Food Truck Ordinance/License • Emerald Ash Borer Policy Review (referred to Park & Rec Commission November) • Opioid Settlement • ARPA Funds • Grants: Revenues & Expenses • Purchasing Policy • Interveners Impact • Revisit Resolution 2021-73 ADJOURNMENT Councilmember/Commissioner Kragness moved and Councilmember/ Commissioner Lawrence- Anderson seconded adjournment of the City Council/Economic Development Authority Work Session at 9:26 p.m. Motion passed unanimously.