ITEM 1 8.22.2016 Work SessiontsTF o
MINNESOTAe
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: August 18, 2016
SUBJECT: August 22, 2016, Budget Work Session
Monday's budget work session will include discussion of the Public Safety and Public Works budgets. Ir
addition to the budget comments in the previous budget memo regarding these departments, there are
several new items to note. Those items are listed below along with a follow-up response to carry over
items from the last budget meeting.
August 8 Meeting Follow -Up:
Tax Levy —Additional Debt and Reserve Fund levy information will be presented at the August
29 budget meeting.
Refunds and Reimbursements —The majority of the revenue in this account is from
development related GIS fees. In the future, this will be reclassified as a charge for service.
Public Safety:
The majority of the 2017 General Fund budget increase is in the public safety department. The
contracts for police and fire services are all increasing, and in fact, fire contracts will increase more than
originally stated in the draft budget as noted below.
• Fire — The draft fire budget was developed using various assumptions including estimated parcel
counts and property values. All contracts have recently been updated with current information
causing the three contracts to increase a total of $11,605 more than the amount in the draft
budget.
One fire item not included in the draft budget is funding for a fire station location study. The
Council has discussed fire station location in general but has not taken the next step to explore
or authorize a study; thus, no funding is included in the draft budget. If the Council wants to
begin the study in 2017, it could be funded from the Fire Reserve Fund or added to the 2017 fire
budget. Keep in mind that it takes at least two years from the time a location is selected until a
station would be completed and operational.
Below is an excerpt from my July 11, 2016, Albertville Otsego joint powers agreement memo
regarding station location:
':.. the (joint Albertville Otsego Fire) Committee also discussed at length future
Otsego fire station locations and timing. The Committee agreed that it is
important to determine answers to the timing and location questions soon. The
siting of a station is dependent upon several factors, as we have previously
discussed. Therefore, a consultant specializing in emergency service response is
often called upon to assist in siting the station(s). The consultant gathers data
from the city planner, responding fire chiefs, the city engineers, and other staff
for analysis to determine potential locations. The cost for a consultant services to
identify potential locations ranges from $15,000 for basic services to $30,000 for
a comprehensive study. Selecting the correct long-term locations is a major
decision. Engaging an expert to assist in identifying the correct locations, along
with input from the city planner and other staff, is a method to ensure that the
Council has the information needed to make the best decision for the entire City
in the long-term. Funding is available in the fire reserve fund for a study now or
whenever the Council is ready to proceed."
• Public Safety Commission —The CERT program cost of approximately $1,000 was not included
separately in the draft budget. If the Council agrees to fund this program, funding could come
from the education, training, and conferences line item or through an addition to the budget.
Public Works:
• Engineering — Ron Wagner, Hakanson Anderson Associates, submitted a request for a fee
increase. His request is attached.
2
MEMORANDUM
TO: Lori Johnson, City Administrator
CC: Lisa Broughton, HAA Finance
FROM: Ronald J. Wagner, PE
City Engineer
DATE: August 10, 2016
RE: Engineering Rates
We respectfully request that as of January 1, 2017, our maximum billing rate be:
$112.5/hour City Budget Items & Public Works Projects
$135/hour Developer Projects, CUP and PUD Reviews and
Similar work paid by outside sources
All other rates for City budget and public works projects remain per the Contract at 2.75 times
the actual hourly rate of the employee. For developer projects, CUP and PUD reviews and
similar work paid by outside sources, we propose a 3.00 multiplier on the actual hourly rate of
the employee. The $5 increase equates to approximately a 1.5% increase per year since our last
increase and currently only applies to the principals who may work on Otsego public projects.
A recent history of our maximum hourly rate is:
City Development
2009 & 2010 $95.00 $120.00
2011 & 2012 & 2013 $100.00 $125.00
2014 & 2015 & 2016 $107.50 $135.00
We feel the new rates coincide with our mission statement "to meet the client needs and
expectations by providing the finest professional service for a fair and reasonable cost."
C:\Users\Tami.OTSEGO\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\1HD3FVW1\ot901-2013 mrotsegofees (2).doc