5.2. SR 06-14-1999 - Laserfiche WebLink

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rei ----'\) ( ); ~l}{ Item #5.2. MEMORANDUM Mayor & City Council DATE: Pat Klaers, City Adm..in.~. i t at r ..-12 June 14, 1999 ~. SUBJECT: Ice Resurfacer Bids Based on a variety of reasons, including the desire to have a new ice resurfacer available this upcoming skating season, the City Council authorized going out for bids for this machine at its May 24, 1999, meeting. Bids will be opened on June 14 and presented to the City Council that evening for its consideration. It is anticipated that the machine will cost approximately $80,000 plus shipping and tax. . At the May 24 meeting, the City Council requested additional information regarding possible funding sources for this piece of equipment. A recommendation that staff has for this acquisition is that the funding come from one source rather than being spread around to a variety of funds. This request is based on the ease of administering this purchase. The preferred source of funds is from the net revenue from the Holt and Jackson land sale. It is unknown whether or not this purchase will take place in 1999, due to the need for a conditional use permit, but nonetheless, it is likely that if this sale doesn't go through another one will in the not too distant future. One half of the net proceeds from this land transaction would be in the $140,000 range. (The other halfis recommended to go into the development reserve.) Another source of funding that is possible is equipment reserves. The audit identified over $500,000 in cash in this reserve. However, the City Council has committed over $200,000 of this fund for expenses, including $190,000 in the 1999 budget. This remaining $300,000 equipment reserve amount is spread around between designated and undesignated funds, but those are simply internal staff labels and can be changed at any time. If equipment reserves become the source of funding, it is suggested that the City Council simply indicate such and staff will take the money out of the undesignated and most appropriately labeled source. On May 24, it was noted that equipment certificates was a possibility for this acquisition, but based on a preliminary review of the upcoming budget, this source is no longer being suggested. The above two sources are listed in priority. A final suggestion would be use of the NSP contribution. In the past this fund has been dedicated toward park and recreation activities and the city hall land purchase. The 1998 NSP contribution was not spent by the City Council. This was done so in an effort to accumulate some funds in this reserve for future needs. The available 1998 and 1999 contributions are over $200,000. . Please call if you need more information regarding this issue prior to the council meeting. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425