Minutes - Council Work Session - 02/12/2008

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COUNCIL TOPICS FOR DISCUSSION 1) Consider Purchase of a Sewer- V ac Truck Public Works Director Olson stated the purchase of a sewer-vac truck has been approved in the Capital Improvement Program (CIP). Staff is bringing this purchase back before Council to reaffirm that direction. He stated the City currently contracts with a private vendor for the cleaning of the City's sewers at a cost of approximately $15,000 per year to clean 32,200 feet of sanitary sewer. Included in the staff report is the sewer cleaning recommendation of the City's insurer, the Minnesota League of Municipalities. Also included is a model Sanitary Sewer Maintenance Policy developed by the League. At the City's current rate of annual cleaning, the City would realize a cleaning interval of 7.9 years which is less than half the recommended rate of cleaning for a system of Ramsey's type. Mr. Olson stated in order to increase sewer cleaning to a three year interval; the annual cost of contracted cleaning would be $42,800. Public Works Director Olson stated the City has budgeted $300,000 in 2008 for the purchase of a jet vac truck with $255,000 coming from the Sanitary Sewer Utility and $45,000 coming from the Storm Water Utility. With an estimated service life of 15 years, the annual cost of cleaning would be $20,000 per year for the equipment and $8,100 in personnel time. The cost of fuel and unit maintenance and repairs is estimated to be $5,000 annually. Under this analysis, the City would save $9,700 or 23% of the contracted cost of sewer maintenance annually. Mr. Olson stated, in addition to this cost comparison, City ownership of the jet vac truck would provide the advantage of having the equipment readily available to respond quickly to emergency situations. The equipment would also be available to schedule sewer cleaning during slow or rainy periods of the public works schedule. In addition, the jet vac truck has significant auxiliary uses for the Public Works and Utility Departments, such as the removal of sand and sediment from catch basins and water valves. It can also be used to excavate loose sand material and hydro-excavate for locates when utilities may be present. Public Works Director stated the model of the League states that sewers should be televised every ten years. Contracted televising would require an annual expenditure estimated at $12,700. A camera can be purchased for an additional $30,000. This equipment is anticipated to have a service life of ten years or an annual cost of $3,000. The labor costs for the City utility is estimated at $2,000 per year. Under this analysis the City would save $7,700, or 60% of the contracted cost of sewer maintenance annually. Mr. Olson advised staff recommends that Council authorize the purchase of a jet vac truck and television equipment in an amount not to exceed $330,000 with funding of $280,500 from the Sewer Utility and $49,500 from the Storm Water Utility. Finance Officer Lund provided an overview of the projected balance of the Sewer Utility Fund and the Storm Water Utility Fund. She advised the Sewer Utility Fund balance after the purchase of the jet vac truck would be approximately $6 million. The Storm Water Utility fund after the purchase would be approximately $100,000. She noted this balance also takes into consideration the Public Works land purchase that will be discussed in closed session tonight. City Council Work Session / February 12,2008 Page 2 of 4