HomeMy WebLinkAbout09/05/1995 FINANCE COMMITTEE
September 5, 1995
4 : 30 p.m.
Large Conference Room
Members present : Chairperson Krizek, Anders .
Members absent : Mollenhoff .
Moved by Anders, seconded by Krizek that the Agenda, as amended to
add under New Business Item No. 6 "Authorization to purchase air
conditioning compressor for the Recreation Center Law Court
Theater--Building Maintenance, " and Item No. 7 "Request of MET
Transit Authority to guarantee operating line of credit in the
amount of $500, 000, with additional request to advance $25, 000 to
be paid out of upcoming transit subsidy" , be approved. Ayes : Two.
Absent : Mollenhoff . Motion carried.
The request of Building Maintenance for authorization to purchase
Six boilers was reviewed. On August 28, 1995 the Building &
Grounds and Finance Committees authorized the purchase of five
replacement boilers for fire stations at a cost of $84, 165 . 00 .
After further review of the figures presented, the Building
Maintenance Supervisor found the estimated payback to be grossly
understated and the city rescinded its offer to purchase. The
vendor has proposed a less efficient (85% compared to 950) modular
boiler as an alternative. The contractor will sell six boilers
directly to the city for $32, 000 . 00 if city staff does the
installation work. The $32, 000 . 00 cost is $52, 165 . 00 less than the
previously requested amount and only $2, 900 per year less savings
for all fire stations . Energy Capital Loan Notes in the amount of
$28, 200 . 00 will be used to purchase the six boilers and be
reimbursed with savings identified in the Technical Engineering
Analysis . Any remaining costs will be funded from the Fire Station
Capital Improvements budget . Moved by Krizek, seconded by Anders
that authorization to purchase six boilers at a cost of $32, 000 . 00
be approved. Ayes : Two. Absent : Mollenhoff . Motion carried.
The request of the Superintendent of Water Pollution/Flood Control
to purchase a replacement pump for the Virginia lift station at a
cost of $4, 493 . 00 was reviewed. The city is currently using a 4"
pump with a pumping capacity of 300 GPM, and the replacement is a
4" pump with a pumping capacity of 580 GPM. A quote has been
received to repair the pump at a cost of $5, 796 . 98, plus labor,
which is more than the purchase of a new pump at $4, 493 . 00 . This
item was approved at today' s Public Works Committee meeting. Moved
by Anders, seconded by Krizek that said request be approved. Ayes :
Two. Absent : Mollenhoff . Motion carried.
The request of the Superintendent of Water Pollution/Flood Control
to purchase motor and drive packages to use in upsizing the gas
blowers at the lagoon was reviewed. Two Toshiba 25 HP Inverter
Duty Exp Motor and Drive packages were purchased from the Hupp
Electric Motor Company to use in upsizing the gas blowers at the
lagoon and to maintain compatibility with existing equipment . The
price per unit is $7, 637 . 67, plus freight cost of $177 . 15, for a
total cost of $15, 452 .49 . This item was approved at today' s Public
Works Committee meeting. Moved by Anders, seconded by Krizek that
said request be approved. Ayes : Two. Absent : Mollenhoff .
Motion carried.
The request of the Administrative Director to amend a travel
request to attend Iowa League of Cities Annual Conference in Ames,
Iowa on October 4-6, 1995 was reviewed. Only one night of hotel
expense was included in the original request and this is a three-
day conference so an additional night of lodging needs to be added
at a cost of $63 . 00 . Meals are included in the cost of
registration for October 5 and 6, but not the first day so an
addition $25 . 00 for meals also needs to be added to the original
request . Adding the two items in the amount of $88 . 00 will bring
the total cost to $326 . 00 . Moved by Anders, seconded by Krizek
Finance Committee
September 5, 1995
Page 2
that said request be approved. Ayes : Two. Absent : Mollenhoff .
Motion carried.
Moved by Krizek, seconded by Anders that a garbage refund in the
amount of $67 . 80 for 220 Virden Street be approved. Ayes : Two.
Absent : Mollenhoff. Motion carried.
A draft policy outlining the city fund account structure was
reviewed. Bruce Meisinger, Finance Manager, stated that at the
present time there are no guidelines or direction as to when
revenues can be deposited into the General Fund. The proposed
policy states that all revenues shall be deposited into the General
Fund unless separately designated by the city council, or
restricted by law, bond covenant, trust agreement or separately
categorized by Generally Accepted Accounting Principles . Mr.
Meisinger reported that with the conversion of the new financial
system, 80 fund accounts have been consolidated and we now have
between 20 and 25 funds. The policy will be reviewed by the full
council at tonight' s meeting. Moved by Anders, seconded by Krizek
that the proposed draft policy be approved. Ayes : Two. Absent :
Mollenhoff . Motion carried.
The request of Building Maintenance for authorization to purchase
an air compressor for the Recreation Center Law Court Theater was
reviewed. During a service call at the Recreation Center Law Court
Theater staff located a blown lug on a 20 ton compressor. This was
a thermal overload protection which burned a hole through the
compressor canister leaking all of the refrigerant out of the unit
rendering the compressor inoperable. A replacement compressor has
been located at a cost of $4, 000 . 00 . The purchase will not meet
the requirements of the Energy Conservation Project and will have
to be funded through a Recreation Center line item. Moved by
Anders, seconded by Krizek that said request be approved. Ayes :
Two. Absent : Mollenhoff . Motion carried.
The request of the Metropolitan Transit Authority for authorization
to guarantee an operating loan in the amount of $500, 000, with an
additional request to advance $25, 000 to be paid out of upcoming
transit subsidy was reviewed. Due to the change in the schedule
for sending transit levy funds to MET, said loan is necessary to
keep the system operational . The city pays transit levy funds
monthly as they are received by the city. Also, due to the grant
review cycle of the Federal Transit Administration, MET is unable
to draw federal operating assistance until late January or February
for the fiscal year that began the previous July. Moved by Anders,
seconded by Krizek that said request be approved. Ayes : Two.
Absent : Mollenhoff. Motion carried.
Moved by Anders, seconded by Krizek that the request of the Parks
Superintendent for pre-authorization to expend $7, 794 . 00 to
purchase timbers to place around playgrounds at various parks be
tabled until additional information is presented. Ayes : Two.
Absent : Mollenhoff . Motion carried.
Moved by Anders, seconded by Krizek that the request of the Parks
Superintendent for pre-authorization to expend $1, 507 . 00 for new
gutters for the Byrnes Pro Shop be approved. Ayes : Two. Absent :
Mollenhoff . Motion carried.
Moved by Anders, seconded by Krizek that the request of the
Superintendent of Sign & Traffic for pre-authorization to expend
$1, 120 . 00 for a blade to be used sawing loops at Kimball Avenue and
Brookeridge Road for new traffic signals being installed be
approved. Ayes : Two. Absent : Mollenhoff . Motion carried.
Moved by Anders, seconded by Krizek that the request of the Fire
Chief for pre-authorization to expend $1, 540 . 00 for paramedic
certification course be approved. Ayes : Two. Absent :
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Finance Committee
September 5, 1995
Page 3
Mollenhoff . Motion carried.
Moved by Anders, seconded by Krizek that the request of the
Superintendent of Water Pollution/Flood Control to decrease Line
Item 1513 (Chemicals, Gases & Related Supplies) and increase Line
Item 1351 (Advertising) in the amount of $500 . 00 be approved.
Ayes : Two. Absent : Mollenhoff. Motion carried.
Moved by Krizek, seconded by Anders that Bills Payment, as
contained in Schedule AP640, pp. 1-50, dated September 5, 1995 in
the amount of $1, 384, 315 . 23 , be received, placed on file and
forwarded to the full council for approval . Ayes : Two. Absent :
Mollenhoff . Motion carried.
With no further business before the committee, it was moved by
Anders, seconded by Krizek that the meeting be adjourned at 5 :23
p.m. Ayes : Two. Absent : Mollenhoff . Motion carried.
Susan Fangman
City Clerk