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12/11/2012 - City Council SpecialSPECIAL CITY COUNCIL MEETING TUESDAY DECEMBER 11, 2012 5:30 P.M. EAGAN ROOM - EAGAN MUNICIPAL CENTER AGENDA I. ROLL CALL AND ADOPTION OF THE AGENDA II. VISITORS TO BE HEARD a III. REVIEW 2013 LEGISLATIVE PRIORITIES P� rl IV. 2013 FIBER INFRASTRUCTURE FUND BUDGET �t . W V. PRIVATE FIRE HYDRANT MAINTENANCE VI. UTILITIES JOINT PURCHASING AGREEMENT VII. OTHER BUSINESS VIII. ADJOURNMENT Special City Council Workshop December 11, 2012 III. REVIEW 2013 LEGISLATIVE PRIORITIES ACTION TO BE CONSIDERED: No formal action is needed. The City Council is asked to review and provide feedback on the proposed 2013 Legislative Priorities in advance of the joint meeting with the Legislative delegation on January 8, 2013. FACTS: The enclosed list of Eagan's 2013 legislative priorities and positions has been established to serve as a discussion guide for the Council and delegation. The list purposely does not duplicate the policy positions supported by the City through the League of Minnesota Cities (LMC), Municipal Legislative Commission (MLC), and Metro Cities. The City's priorities and positions are not intended to be comprehensive of every legislative issue important to the City; however, the list does represent the more critical issues facing the City. The enclosed legislative priorities are for the Council's review. Any changes or additions can be made in advance of the joint meeting with Eagan's Legislative delegation on January 8, 2013. Letters have been mailed and emails to the members of the delegation, inviting them to the January 8, 2013 Special City Council meeting. • In keeping with past practice, the priorities typically are sent to the Legislative delegation in writing in mid - December in order that they have the opportunity to review them in advance of the joint meeting with the City Council. ATTACHMENTS: • Enclosed on pages 3 through 5 are the City of Eagan's 2013 Legislative Priorities and Positions handout, intended to assist the Council as a discussion tool with the legislators. Enclosed on page G is a copy of the letter sent to each member of the Legislative delegation, inviting them to attend the January 8, 2013 City Council workshop. 0 City of 8apn CITY OF EAGAN 2013 LEGISLATIVE PRIORITIES AND POSITIONS The following requests and positions represent the Legislative priorities for the City of Eagan during the 2013 Legislative Session. In order not to duplicate what has already been provided to our Legislators, this list does not include every position on the issues that have already been addressed through policy documents set forth by the League of Minnesota Cities (LMC), Metro Cities, or the Municipal Legislative Commission (MLC). The City of Eagan respectfully requests the support of our Legislative delegation on the following initiatives: STATE BUDGET AND IMPACT ON THE CITY OF EAGAN • Eagan has maintained low property taxes and has been fiscally prudent for decades, and therefore strongly opposes any measure that would look to address continuing State deficits by taking money from cities' cash flow account for operations. • Eagan maintains its long -held opposition to State imposed levy limits or property tax freezes, as levies are an issue of local control, best addressed by the elected City Council. TRANSPORTATION Secure Funding for the Continued Phased Improvements for the Cedar Avenue Bus Rapid Transit (BRT) Improvements. • Priority Access improvements are needed to /from the recently completed Cedar Grove Transit Station and the TH 77 expressway. As the only current freeway station on the Cedar BRT Corridor, the Cedar Grove Station will require differently configured access improvements than the curbside access available on other portions of the Corridor. The City is working with Dakota County and MNDOT to move forward with design, but they will not receive priority for installation without adequate funding specific to that purpose. IWe\►U11M0 Consider Modifications for TIF Redevelopment Districts to Offset Effects of the Current Development Economy The League of Minnesota Cities has adopted a number of Legislative Policies related to modifications of tax increment financing, which the City supports. In particular, the City of Eagan would support reinstatement of provision for the use of TIF economic development districts through July 1, 2014 to create construction jobs by permitting the tool to be applied to uses that are not traditionally eligible under such districts, including office, retail and housing projects. 3 2013 City of Eagan Legislative Priorities and Positions Page 2 • The Cedar Grove Redevelopment District faces many of the same development market challenges as other redevelopment districts in the state. The City is currently exploring whether to submit a request for special legislation for the Cedar Grove District during this session. However, if there are bills proposed for other districts that address issues similar to those at Cedar Grove, the City may request that the Cedar Grove District be added to the legislation. Support TIF for Businesses Producing IT Products • Current TIF law limits the establishment of Economic Development Districts to those situations that support the expansion of businesses and creation of jobs that manufacture a physical product. • An increasing number of businesses in Minnesota are creating software and on -line publications. The ability of Minnesota cities to support the location and expansion of such businesses will be vital to the state's competitiveness in current and future economies. Eagan's past experience with Thomson West's (now Thomson Reuters) proposed expansion illustrated the point. While it was clear that the firm's expansion project would create substantial property tax base and a large number of head of household jobs, current TIF law did not recognize it as being the equivalent of manufacturing, which would have permitted the City to consider the formation of an economic development TIF district to support the project. • Instead, the City needed to pursue special legislation to request permission to apply the statute to Thomson. While not all information businesses create products comparable to manufactured goods, state law should be amended to create criteria under which production of information technology products may be defined as manufacturing for TIF purposes. Oppose Industry Efforts to Oversee Building Codes • The Minnesota Department of Commerce uses an effective system to consider the implementation of international building codes and amendments of codes specific to the Minnesota environment and economy. The Code adoption process provides ample opportunity for input from interested parties including the construction industry, building officials and the general public. • Past legislative efforts by the industry to create "code councils" made up of industry representatives and intended to control the Code adoption process would tilt the process away from the public interest and toward industry interests rather than balancing those interests as the current system does. In the past, industry representatives have also proposed authorizing private inspectors, hired by property owners or contractors to take the place of the unbiased inspections by municipal inspectors. The City opposes these efforts. Provide Additional Tools to Minimize Impacts of Foreclosures Like all cities in Minnesota and around the country, the City of Eagan is focusing efforts on monitoring vacant and foreclosed properties and taking steps to minimize the impacts of vacancies on the properties themselves and their neighborhoods. L1 2013 City of Eagan Legislative Priorities and Positions Page 3 • Cities will continue to need to use traditional and innovative tools to address this issue. In 2008, Legislation was enacted that requires private utility companies to share information regarding gas and electric shut offs with local units of government to aid in efforts to identify vacant or uninhabitable properties. Cities use this information as part of their database for and monitoring those properties for maintenance issues and to minimize vandalism and theft. • To build on the value of the utility shut off notice requirement, the City would also support legislation that would authorize water shut offs to properties whenever cities receive information from other utility companies that would suggest that the home is not heated. Currently cities may not shut off water service to unheated or vacant homes unless the City utility account is delinquent or the owner of record requests /consents to it. This is despite the fact that an unheated home is not safe for occupancy under the building code. In addition, the City would support similar legislation that would obligate the owner of a property that is in foreclosure or vacant for any reason to provide contact information to the City that would permit prompt attention to matters that arise through property monitoring programs, including the need to secure buildings, the need to keep them in good repair during vacancies, the need to remove trash and maintain yards, etc. COMMUNICATIONS The Minnesota Legislature successfully amended tax code in 2011 to make it more attractive for Minnesota to compete with other states in landing large data centers, a currently expanding area of the economy. However, the legislation effectively limits those incentives to large single user facilities, even though multi- tenant data centers (such as the one proposed for Eagan) would not be eligible, despite achieving the same size and scale in aggregate. Modifications are needed to the new statute, given that that multi- tenant centers will attract an estimated $5 billion worth of investment in North America. Other states, like Virginia's tax code, recognize the growing trend of shared -use facilities. Phone companies, like Century Link want to extend video service to MN customers and compete with cable companies like Comcast. They are willing to sign a video franchise. Minnesota law was changed to allow phone companies to build out only to their footprint, and not require build out to portions of a city beyond their service territory. Even then, entire build out is very expensive and requires more capital than financial markets are typically willing to finance. The current global trend where fiber optics are being built directly to the home, is to require build out whenever 50% of a neighborhood says they would like the service. This is a financeable model that would grow jobs and services, at a much lower capital investment. ENVIRONMENTAL • The City of Eagan supports a statewide approach to eliminate /ban the use of coal tar sealer. December 7, 2012 State Senator Jim Carlson 75 Rev. Dr. Martin Luther King Jr. Blvd. St. Paul, MN 55155 Re: Save the Date — January 8, 2013, 5:30 p.m.—Legislative Priority Discussion with the Eagan City Council Dear State Senator Carlson: On behalf of the Eagan City Council, you are cordially invited to attend the January 8, 2013 City Council workshop, at which the Council would like to dialogue with you and your fellow Eagan legislative delegation members about the City's priorities for the 2013 legislative session. In keeping with past practice, you are invited to the Council's first workshop of the year on January 8, 2013 at 5:30 p.m. in the Eagan Room at Eagan City Hall. The City's 2013 legislative priorities will be shared with you in writing in advance of the workshop. The City Council looks forward to seeing you at the January 8 workshop to dialogue about the City's priorities and the issues you anticipate addressing in the coming legislative session. Please RSVP to Cheryl Stevenson, Executive Assistant, at (651) 675- 5005 or cstevenson@cityofeajzan.com. Sincerely, Thomas L. Hedges City Administrator N Agenda Information Memo December 11, 2012 Special City Council Meeting IV. 2013 FIBER INFRASTRUCTURE FUND BUDGET ACTION TO BE CONSIDERED: To review, provide direction and direct placement of the 2013 Fiber Infrastructure Fund Budget on the December 18, 2012 Consent Agenda for ratification. FACTS: • For a number of years the City has been installing fiber and conduit primarily for use by the City. The installation has on occasion been completed singularly by the City and in a number of cases in conjunction with other governmental agencies. • More recently the City has undertaken the AccessEagan project and connection of customers can now take place. • Expenditure appropriations for consultants and construction have been addressed on an as needed basis by the City Council. Revenues have consisted primarily of transfers from other City funds. • To more formalize these activities and to allow for better financial controls and strategic planning staff has been working to develop a formal business plan around AccessEagan while incorporating all City fiber infrastructure assets and operations. • The first step in creation of a more robust business plan has been the development of an operating budget for consideration by the Council. • The proposed budget as presented is a first step and clearly lacks the sophistication that will be incorporated as more variables are eliminated and operating experience is gained. It shows more detail than ordinarily would be presented to provide better context and does not include certain items that will need to be considered going forward. • Director of Communications Garrison and Assistant City Administrators Miller and VanOverbeke have been part of the City's staff Fiber Team and will be at the meeting to further clarify the proposed budget as well as to answer questions of the Council. ATTACHMENTS: • Enclosed on page is a copy of the proposed 2013 Fiber Infrastructure Fund Budget. • Enclosed on page C� is a copy of notes providing additional background on how the proposed budget has been prepared. 9 Proposed 2013 Fiber Infrastructure Fund Budget 5- Dec -12 SOURCES Revenues: _ Expenditure Reimbursements: State of Minnesota 2,594 AccessEagan User Fees Service Providers (Year One - Proforma) 44,237 Other Leases: MVTA 600 Highway 149 Conduit/Fiber: Arvig /ACS 1,660 TW Telcom 3,000 Windstream 2,810 Total Revenues 54,901 Transfers In: Total Revenues and Transfers 54,901 USES Expenditures: Personnel (FT Position Starting 7 -1 -2013) 53,100 Personnel Related (Office equipment, training, etc.) 6,180 Legal: I Dougherty ($1,300 /month for 12 months) 15,600.00 _ David Shaw 5,000.00 20,600 Auditing 1,500 Engineering: Elert & Associates 15,000 LOGIS Services: _ After Hours Support 16,500 Setting up Pod Switch "'7-5010 Consulting: Design Nine 10,000 Marketing _ Technology Management Corporation (19,800 for Feb -Dec 2013 22,800 -Plus 3,000 from 2012 for January) _ Materials 1,000 MP Nexlevel LLC Maintenance: _ State /County /CDA/City Fiber 8,623 Fire Stations 3 & 4 1,128 Phase I 15,719 Phase II _ 13,201 MP Nexlevel LLC Locates 7,128 ISD 196 MP Nexlevel Maintenance 3,685 ISD 196 MP Nexlevel Locates 1,184 Equipment: Inventory for New Customers 8,500 OTDR Device 9,000 Construction: Pod and Slab 60000 Generator 20;000' Fire Suppression _ 20,000 Switch _ 185`,000 Complete Phase 1 28,149 Complete Phase 11 32,938 Subtotal Expenditures Without Depreciation 568,436 Depreciation Expense: 2012+50% _ 1 154,949 Total Expenditures Including Depreciation 723,385 12/5/12 Cash Balance (516,379) _ Lease Revenues (Balance of CC Authorization 6 -21 -2011) 1,000,000 _Antenna F_ _ Additional 2012 Disbursements (15,000) 2013_ Revenues, Reimbursements & Transfers 54,901 _ 2013 Expenditures w/o Depreciation (568,436) 12/31/13 Cash Balance (44,914 $`292;500 00' fee bud et note;numbetv6' r 12 -05 -2012 Proposed 2013 Fiber Infrastructure Fund Budget Notes: 1. This proposed budget combines all City fiber investment and operations including AccessEagan, ISD 196 and other cooperative arrangements into one fund. Due to overlapping assets /operations, future budgets and financial reporting for the City fiber investment will be on a combined basis. 2. The proposed budget assumes the approved transfer of $1,000,000 from the Antennae Lease Revenues in 2012 — Balance of capitalization amount approved by CC on 6 -21- 2011. 3. The proposed budget does not include any appropriations or reserve allocations for future relocation costs required by public improvements in the right of way. Private utilities are required to pay to relocate their assets, if a public improvement project requires such relocation. 4. The proposed budget does not include the appropriation of any dollars beyond the balance of Phase II for any fiber /conduit expansion, including the Cedar Grove Redevelopment area. 5. An extension in Northeast Eagan at approximately $140,000 and a crossing of 35E on Lone Oak at a cost of approximately $100,000 should be given consideration in the future as utilization of AccessEagan assets materializes. 6. $292,500 is included in the proposed budget related to enhancing the redundancy of existing fiber. That potential expenditure should be reviewed and evaluated in light of the status of a colocation facility before any actual expenditures are made. 7. A full time position, IT Infrastructure Specialist, for'/ the year (7 -1 -2013 start) is included in the budget. Before filling that position it should be evaluated and contingent upon having added AccessEagan customers. 8. A proposed full time position, Communications Specialist, for 1/ the year (7 -1 -2013 start) within the Communications Department in the General Fund may impact the marketing appropriation in this fund and this budget at some point in the future. 9. The public policy question about either funding a renewal and replacement reserve or depreciation is not addressed in this proposed budget and neither is funded at this time. 10. Further discussion will also be required on how to respond to unplanned opportunities especially in light of an environment requiring a rapid turnaround. 0 Agenda Information Memo December 11, 2012 Special Council Workshop V. PRIVATE FIRE HYDRANT MAINTENANCE DIRECTION FOR CONSIDERATION: APPROVE STAFF PREPARATION OF A PROPOSED CHANGE IN THE SERVICE DELIVERY PROGRAM WITH THE POSSIBLE IMPLEMENTATION OF A FEE FOR THE INSPECTION OF PRIVATE FIRE HYDRANTS AND INSTALLATION OF STORZ NOZZLES. DIRECT THE CITY ATTORNEY, FIRE CHIEF AND PUBLIC WORKS DIRECTOR TO PREPARE AN ORDINANCE AMENDMENT FOR FORMAL CONSIDERATION ON A FUTURE COUNCIL AGENDA. FACTS: • Currently, there is a total of 4,058 fire hydrants in the City of Eagan. 3,522 (87 %) of these are 'public' fire hydrants that are City owned and maintained by the Utilities Division of the Public Works Department. The remaining 528 (13 %) are 'private' fire hydrants and are not maintained by City staff. These 'private' fire hydrants are divided into the following groups: 434 - Private Property (e.g. apartment complex, commercial /industrial property, schools) 84 - Inver Grove Heights (Eagan water system, not in Eagan — IGH maintains) 8 - Burnsville (Burnsville water system, in Eagan — Burnsville does not maintain) 2 - County (Eagan water system, in Eagan, County property — County does not maintain) • Section 508 of the State Fire Code requires the annual inspection, testing and maintenance of fire protection water supplies, which include water lines and fire hydrant systems. Regardless of this code requirement, in a fire emergency, all fire hydrants are critical to the protection of life and property. Section 101 of the State Fire Code authorizes the City to adopt rules to implement the Fire Code. • On October 2, 2012, the Burnsville City Council adopted a resolution requiring private water lines and fire hydrants, directly or indirectly connected to the municipal water system, to be inspected and tested annually by qualified personnel and repaired and maintained in good working order to protect life and property. A study conducted by the City of Burnsville prior to the adoption of this resolution indicated that 10 -20 percent of the private hydrants within Burnsville may not be functional. Burnsville has about 1,079 private fire hydrants out of a total of 3,593 fire hydrants. • Random communication with Eagan business and property representatives has found that most of the private hydrants have never been maintained or operated. Typically the property owners didn't know they were private and assumed the City was addressing the hydrant operations. • The recent ISO 9000 Fire Insurance Inspection revealed that the favorable insurance rating that the City of Eagan has been able to maintain is significantly impacted by the number of fire hydrant inspections each year. The expectations for a favorable rating are that all fire hydrants would be inspected twice each year. The Utilities Division currently inspects all 'public' fire hydrants once per year. • An average qualified person should be able to inspect 50 fire hydrants per day. \D • A new policy could require owners of private hydrants to provide annual documentation of inspection, testing and maintenance. The city could help owners find contractors to do the work. If an owner failed to do the work, the city could do it and charge it to the owner's utility bill. • The cost of the private fire hydrant inspections and any needed repairs could be financed by the individual owners. A hydrant inspection fee could be charged for each hydrant inspected as part of the quarterly utility bill. Repair costs could include staff time and materials plus overhead, as well as a contractor option, with an opportunity to assess this cost to the property owner if not repaired by the owner. • Comparable annual private fire hydrant inspections costs for one yearly inspection: • Burnsville $42 (initial fee, believe it will go up once program is under way) • Shakopee $50 • Bloomington $58.32 • LaCrosse, WI $130 -150 (based upon Eagan staff & equipment rates) • Communication with the private property owners that would be impacted by the implementation of a private fire hydrant inspection program is critical. An invitation to an Informational Meeting to solicit input from property owners regarding the Council's consideration of such a program and the available options would be recommended. • An important component of inspecting the private fire hydrants is the identification of such hydrants in the field. The following are suggested options to mark these hydrants; paint hydrant caps, replace marker /shaft, add mini -flag, install nozzle ring, or reflective tape on hydrant marker. • If identification of the private fire hydrants is to occur, it would also be desirable to identify 'dead -end' fire hydrants, both private and public. Dead -end fire hydrants provide limited fire service /flow capabilities, so proper planning of their use is critical to the protection of life and property. There are 1151 dead -end fire hydrants, both public and private, within Eagan. • The following is the total cost estimates for the five suggested hydrant identification options for all private and dead -end, both public and private, fire hydrants. o Paint Caps ....... ............................... $52,900 o Replace Marker /Shaft (in red, orange, green, or blue) ■ Utilities install ............. $33,400 ■ Fire install ................... $22,500 • Add Mini -Flag (in red, orange, green, or yellow) ■ Utilities install ............. $17,400 ■ Fire install ..................... $6,500 • Insert Nozzle Rings ......................... $10,200 • Reflective Tape on Marker Utilities install ............... $6,400 Fire install ........................ $900 If identification of the private fire hydrants is to occur, it would also be desirable to upgrade the steamer (main) nozzles of the existing private fire hydrants with Storz nozzles. All of the existing fire hoses utilized by Eagan and the mutual aid fire departments have Storz fittings. Currently, the installation of an adapter is required whenever a connection to a fire hydrant is made. The lack of Storz fittings on the hydrants adds 30 to 60 seconds to the connection to the water at fire scenes. Studies indicate fires double in size every 30 to 60 seconds. \k • Older private fire hydrants could get Storz adapters attached to the steamer nozzles, estimated to cost $315 each, while newer hydrants could get the steamer nozzles replaced with Storz nozzles, estimated to cost $600 each. It would be suggested to have a contractor do the work, so additional costs would be incurred dependent upon the type of revision made. The City of Eagan standard plate for fire hydrants has been updated to require the Storz connection on the large steamer nozzle for all new fire hydrants. • The cost of the private fire hydrant identification and Storz nozzle retrofits could be financed by the individual owners. The minimal identification cost could easily be added to a hydrant inspection fee charged for each hydrant inspected as part of the quarterly utility bill. The more significant Storz nozzle costs could be assessed similar to any repair costs for the private fire hydrants. • Another option could include a City -wide upgrade of all fire hydrants, public and private, to Storz nozzles that would be financed by the Combined Utility Trunk Fund. Utility rates could correspondingly be increased so that property owners could pay an extra 5 cents per 1,000 gallons, or $34 a year on a typical home water bill. ACTION TO BE CONSIDERED • Staff would like to have the Council consider whether it would be appropriate to implement a private fire hydrant maintenance program and direct staff to proceed accordingly. Staff could provide a draft ordinance amendment, options for program compliance and potential associated fees to private property owners for formal consideration at a future council meeting. • In addition, staff would like to have Council provide direction on the identification of private and dead -end fire hydrants. • Staff would also like to have Council provide direction on the implementation of Storz nozzles, either for private fire hydrants as part of a private fire hydrant maintenance program or a City -wide effort for all fire hydrants. • In order to provide for adequate communication, it is recommended that education of the impacted property and business owners occur prior to the approval of an ordinance amendment and new program. An informal public meeting is suggested to allow the opportunity to have comments received and all questions addressed. ATTACHMENTS: • Draft Private Fire Hydrant Maintenance Policy, pages and 0- POLICY NUMBER 2-.-041 FIRE PROTECTION WATER SUPPLIES I. PURPOSE AND NEED FOR POLICY Section 508 of the State Fire Code requires inspection testing and maintenance of fire protection water supplies, which include water lines and fire hydrant systems. Fire hydrant systems shall be subject to periodic tests, maintained in an operative condition at all times and shall be repaired where defective. Additions, repairs, alterations and servicing shall comply with approved standards. Section 101 of the Code authorizes the City to adopt rules to implement the Fire Code. II. POLICY It is in the public interest that said private water lines and hydrants be inspected and tested by qualified personnel and repaired and maintained in good working order to protect life and property. III. PROCEDURES 1. INSPECTION: At least annually, the City, City's Agent or a certified fire protection contractor shall inspect all fire hydrants directly or indirectly connected to the municipal water system. This inspection shall include testing of the operation and flow of the hydrants. a. Annual Submission Requirement: Annually, by February 1St the owner of a private hydrant shall submit documentation to the Fire Department that the hydrant has been inspected and deemed in good working during the previous calendar year. This documentation shall be submitted by a company licensed in the State of Minnesota to complete fire protection inspections. If documentation is not submitted to the City by February 1St, the Fire Department shall direct the Public Works Department to have the hydrant inspected. b. City Inspection: Annually, the Public Works Department shall coordinate the inspection of all private hydrants that have not been certified as operational and in good working condition by certified inspector. c. Fees for Inspection: A hydrant inspection fee shall be charged for each hydrant inspected by the City or City's Agent and 1/12 of the fee shall be billed on a monthly basis to the owner of the private hydrant as part of the water bill. The City Council shall have the authority to prescribe by resolution the rates to be charged for hydrant inspection to the customer from time to time and may prescribe the date of billing, a discount for payment within a prescribed period and /or penalty for failure to pay within such period. 2. PRIVATE WATER LINE AND HYDRANT REPAIRS: In the event the inspection indicates that repairs are required, the City shall notify the owner of the hydrant or water line, with a copy to the Fire Department, setting forth the repairs required. If repairs are not made within the time period set forth by the Fire Department in the notification, the necessary repairs shall be made by the City and the cost billed to the owner. Bills that remain unpaid may be certified for collection with taxes similar to other unpaid water utility charges. k9 Policy No. 2.010. Page 2 The property owner may sign a waiver and petition the City for the repairs. The City will contract for the repairs and assess the property in accordance with the City's Assessment Policy. IV. RESPONSIBILITY AND AUTHORITY The requirements of the City Code and this policy shall be jointly implemented and administered by the Public Works and Fire Department. Annual fire hydrant inspections, assessments and fees shall be coordinated and administered by the Public Works Department. Verification of annual inspections and repair orders shall be coordinated and administered by the Fire Department. Reference: City Code, Title 5, Chapter 53, Section 3.20 Section 508 of State Fire Code N Agenda Information Memo December 11, 2012 Special Council Workshop V. UTILITIES JOINT PURCHASING AGREEMENT DIRECTION FOR CONSIDERATION: APPROVE STAFF PREPARATION OF A JOINT POWERS AGREEMENT WITH VARIOUS OTHER LOCAL AGENCIES FOR THE JOINT PURCHASING OF SERVICES AND MATERIALS. DIRECT THE CITY ATTORNEY AND PUBLIC WORKS DIRECTOR TO PREPARE AN AGREEMENT FOR FORMAL CONSIDERATION ON A FUTURE COUNCIL AGENDA. FACTS: • For the past 27 years (1985), the City of Eagan has participated in a Joint Powers Agreement (JPA) with various other local agencies primarily south of the river to solicit competitive prices for pavement traffic marking, street sweeping, crack sealing and seal coating contractual services. • The consolidation of the administrative services and subsequent economy of scale from multiple similar types of suburban communities pooling their resources further promotes competitive bidding resulting in significant savings to the City of Eagan and resulted in a Certificate of Commendation from the Governor in 1995. • There are a number of other similar services and materials that local agencies such as Eagan need throughout the year for typical operation and maintenance of the public utility infrastructure. • Implementation of the aforementioned private fire hydrant maintenance program and Storz nozzle retrofits currently being considered by numerous cities has created a potential need for services not currently provided by city staff. • The existing JPA format utilized for street maintenance services could easily accommodate a new JPA for utility services and material. • The city of Burnsville administers the existing JPA for street services. Due to the difference in the type of services and materials that would be requested, another administer is being sought for the utilities JPA. Staff is suggesting that the Utility Superintendent would administer this JPA. A percentage (0.5 -1.5 %) of all actual service and material costs would be collected by the City of Eagan to compensate for the administrative efforts. ACTION TO BE CONSIDERED • Staff would like to have the Council consider its interest in participating in a joint powers agreement for the purchasing of utility services and materials and direct staff to proceed accordingly. Staff could provide a draft agreement for formal consideration at a future council meeting. • In addition, staff would like to have Council provide direction on the suggestion to have the Utility Superintendent administer said JPA. ATTACHMENTS: • Utility JPA Summary of Services /Materials, page t6 Utility JPA Summary 9/19/2012 Service Interested Communities Estimated Contract Value Manhole /Wetwell Services 7 $90,000 Fire Hydrant Painting 8 $100,000 Private Hyrdrant Inspection /Operation 3 $70,000 Castings/ Fittings Purchase 7 $70,000 Watermaln Leak Detection 7 $30,000 Meter Testing 5 $30,000 Chlorine 8 $70,000 Sodium & Potassium Permanganate 6 $190,000 Fluoride 9 $180,000 Phosphate 4 $140,000 Polymer 5 $30,000 Sanitary Sewer Cleaning /Jetting 4 $102,000 CIPP Sewer Lining 9 $680,000 Sanitary Sewer Televising 5 $170,000 Industrial Electrical Services 5 $95,000 Estimated total JPA Value $2,047,000 Assumptions - Based on survey responses from 11 interested communities - Minimum of 3 interested communities and total value of $10,000 for service area to be considered ��O