02/25/1992 - City Council Specialr
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AGENDA
SPECIAL CITY COUNCIL MEETING
Tuesday
February 25, 1992
5:00 p.m.
I. ROLL CALL/ADOPT AGENDA
II. COMMENTS ON RETREAT
III. 1992-1996 CIP
IV. POOL/ICE ARENA PROJECT
V. BILL JONES BUILDING PERMIT
VI. OTHER BUSINESS
VII. ADJOURNMENT
MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: FEBRUARY 24, 1992
SUBJECT: SPECIAL CITY COUNCIL MEETING/TUESDAY, FEBRUARY 25, 1992
The special City Council meeting which is scheduled for tomorrow, Tuesday, February 25
at 5:00 p.m. will address several topics including a brief reflection on the City Council/Staff
Retreat, further discussion and direction regarding the 1992-1996 CIP, the outdoor
swimming pool/ice arena project and a request by Community Development to process a
building permit for Bill Jones.
Comments on Retreat
Since the City Council/Department Head Retreat is fresh in everyone's mind, it might be
advantageous to spend a few "brief' minutes reflecting on the process and product of this
year's facilitation. Input and direction is helpful as we plan for further workshops to build
on the information and also plan for future retreats.
1992-1996 CIP
Attached is a memo entitled "Capital Improvements Program (1992-1996)" that summarizes
the five (5)year CIP in addition to detailed analysis on each of the three (3) Parts, including
Public Facilities (Part I), Equipment (Part II) and Public Enterprise & Parks (Part III). The
City Administrator is suggesting that all three (3) Parts be finalized and given consideration
as an action item at the March 2, 1992 City Council meeting. Realizing that a CIP is a
working document and a "guideline" for capital expenditures, a formal adoption of this
document at the March 2 City Council meeting provides for direction to the community on
how the City Council intends to finance other public facility improvements if an ice arena/
outdoor pool project is to proceed as a priority this spring. Consensus on the Part I, Public
Facilities capital improvements is also necessary if the City Council is to adopt a budget for
the ice arena facility and outdoor swimming pool project at the March 2 City Council
meeting.
Pool/Ice Arena Project
The Design Review Committee has been meeting each Monday evening including Monday,
February 24, with representatives of the architectural firm of Ankenny Kell Richter &
Associates for the purpose of refining concept design for the ice arena and outdoor
swimming pool project. In addition to the design of both an ice arena and outdoor
swimming pool, the architects have completed a site analysis that allows for expansion of
the complex in future years if a second sheet of ice is to be added and additional facilities
or outdoor uses adjacent to the swimming pool complex. In addition, parking, traffic flows
and overall development of the site as it relates to City Hall and Law Enforcement Complex
has been reviewed and studied. Another part of the Design Committee's review is the
overall project cost which includes actual construction and related fees such as architectural
and engineering. The Director of Parks and Recreation, members of the Design Review
Committee and representatives of AKR will present the design concept, site analysis and
estimated project cost, including fees, at the meeting on Tuesday.
Another item to consider is operational cost which, based on certain operating assumptions,
has been developed and reviewed by the Director of Parks and Recreation and City
Administrator and presented to the Design Review Committee for their input. This
information is based on extensive research with other cities who operate similar outdoor
swimming pool facilities and ice arenas.
Having reviewed the project and estimated operational costs, it will be necessary to consider
a referendum date, ballot question and review a format to provide information to the
community on the proposed referendum.
In summary, the following topics will be presented for City Council discussion, input and
direction:
• Project Design including site analysis and project cost and fees
• Operational cost (based on certain assumptions)
• Determine a referendum date (April 7 is the date for the Presidential Primary
election)
• Discuss a format for the ballot question
• Newsletter/informational
Again, the discussion at Tuesday's work session is informational with the understanding that
a final ratification to the project budget, bond referendum amount, ballot question and
selection of referendum date will all be acted on by the City Council at the Monday, March
2 City Council meeting.
Building Permit/Bill .Tones
Director of Community Development Runkle is requesting special consideration by the City
Council to process a building permit for Bill Jones on an unplatted lot adjacent to the
Wuthering Heights Subdivision. Mr. Jones is scheduled this week to erect a manufactured
home on his lot and would not be able to meet all the platting requirements without a
substantial delay that would be expensive and cause an inconvenience to the future owner.
Mr.Jones is agreeable to platting the property and will make the proper application and pay
all fees associated with platting in advance to a building permit.
In order for Protective Inspections to proceed with the building permit, a special action is
required by the City Council. Director of Community Development Runkle will provide
more information and a specific location at the meeting on Tuesday.
/S/ Thomas L. Hedges
City Administrator
TLH/vmd
MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
F
FROM: CITY ADMINISTRATOR HEDGES
DATE: FEBRUARY 13, 1992
SUBJECT: CAPITAL IMPROVEMENTS PROGRAM (1992-1996)
The draft Capital Improvements Program budget has been revised and
is in order for consideration by the City Council. There were
numerous meetings during 1991 in which the City Council reviewed
issues ranging from establishing a manageable level of capital
expenditures to a designation category of revenue appropriate for
financing projects identified in the five (5) year CIP. As the
City Council approaches capital projects decisions, i.e. swimming
pool/ice arena, the value of the five (5) year CIP to provide
information and direction to the community becomes more important.
During the decade of the 1980's, demand for services and the cost
of providing them both increased rapidly. Currently, financial and
development activities are complex and must be carefully analyzed.
In order to evaluate projects, the methodology or prioritization
was devised to determine which projects are most appropriate for a
specific calendar year. The CIP includes the scheduling of public
improvements within the community over a five (5) year period.
This program takes into consideration the community's financial
capabilities as well as its goals and priorities.
For the purpose of this report, the capital improvement could be
defined as a major non-recurring expenditure for any expenditure
for physical facilities of government. Typical expenditures are
the cost of land acquisition or interest in land, construction of
buildings or other structures, construction of roads, utilities,
parks, vehicles and equipment. The CIP is directly linked to goals
from policies, land use and community facilities, sections of the
comprehensive plan, redevelopment and the maintenance of the
community. The primary objective of the CIP is to integrate
special goals, policies and recommendations contained in the City's
plan and its capability to pay for and maintain capital
improvements.
The City's ability to finance the necessary improvements has been
discussed at length by City Council and staff to date. The demand
for improvements generated by the rapid growth of the community
outstrips the City's ability to finance the improvements,
particularly within the constraints of rising debt service costs.
Due to further analysis addressing both timing and scope of certain
projects as directed by the City Council, several projects have
been delayed indefinitely as the Council/staff reexamines
"rightsizing" of its City operations and further determines the
level of service delivery.
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Again, the CIP is presented in three (3) parts: Part I is the � .
anticipated cost for public facilities; Part II is the anticipated
cost for equipment; and Part III is titled "Public Enterprise",
which includes streets, storm water, sanitary water, water main,
water quality and streetlighting. Also included in Part III is
that park development that will be financed from the Park Site
Acquisition and Development Fund.
The draft 1992-1996 CIP is proposed at $39, 149,063 . Comparatively
speaking, the City of Eagan has approved, financed and authorized
approximately $45,000, 000 in public projects and facilities during
the past five (5) years. Examples of public improvements during
the past several years range from water treatment plants, utility
and street infrastructure and public works maintenance facility
expansions to parkland acquisition and two (2) new fire stations.
In order to keep pace with a growing community, the scope of the
five (5) year CIP will remain ambitious and continue to present a
challenge for funding and implementation. It should also be noted
that the CIP is a guide for consideration of capital projects.
Attached and referenced as pages 5- through VA are copies of
the CIP summary pages for Parts I, II and III categories. Each
project has an identified revenue source.
The City Administrator is seeking direction on the draft five (5)
year CIP (1992-1996) and would recommend that all three (3) Parts
be finalized and given consideration as an action item at the March
2, 1992 City Council meeting. It is recommended that the City
Council adopt the CIP prior to its action to adopt a budget for the
ice arena/outdoor pool project which proposes infusion of capital
from the CIP combined with a proposed bond referendum.
(----\\,p
City Administrator
Attachment
TLH/vmd
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PART I
Public Facilities
Attached and referenced as page g is a detailed cost analysis of
the Part I Public Facilities portion of the CIP. There are four
(4) revenue sources including:
'Community Investment Fund
•Single Family Bond Fund
'GO Bond Referendum
'Public Enterprise Capital Fund
The total interest available in the Community Investment Fund is
approximately $5,000, 000. That interest is calculated based on
amounts available in calendar 1990 and 1991 in addition to interest
to be accrued 1992 through 1996. The Single Family Bond Fund is a
source of revenue resulting from a City Council action to defease
the $20, 000, 000 single family bonds resulting in the availability
of $850, 000 to be used for a capital project. The GO Bond
Referendum revenue source is available to the City for any and all
capital projects as determined by the City Council. The last
revenue source under Part I Public Facilities is Public Enterprise
Funds which traditionally were used as a major revenue source for
expansion to the public works maintenance facility additions.
The following is a specific review of each category:
Community Investment Fund
As stated, there is approximately $5, 000, 000 available in the
Community Investment Fund. Those revenues (as shown in the five
(5) year CIP) are dedicated for capital projects proposed in 1992
and 1993 . The total cost breakdown is as follows: Public safety/
municipal center expansion is 80 percent or $4, 000,000. A
breakdown is $1, 500, 000 for Fire and $2,500, 000 for a law
enforcement/municipal center expansion. The allocation for Fire
includes land acquisition for Fire Station #6 in the amount of
$100, 000 in 1992 and the actual construction and equipment
acquisition for Fire Station #6 in the amount of $1,400,000 in
1993 . The amount for law enforcement/municipal center expansion
provides for some combination of remodeling the existing building
and new construction of an addition. To date, there has not been
a decision as to how the municipal center building would be
remodeled and the size of an addition. There was discussion that
the $2, 500, 000 might be high and could that number be reduced to
reallocate a portion of the Community Investment Fund. It is the
City Administrator's recommendation that this amount not be
reduced. If a future determination is made to add an addition for
law enforcement and remodel the existing building, the cost for
construction of law enforcement facilities appears to be averaging
around $115 per square foot. If the City were to construct a
25, 000 square foot addition at $100 per square foot, the total cost
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would be $2,500, 000, as an example. Until an architect is
selected, there is uncertainty regarding the best use of the
existing building and size of an addition to meet present and
future needs for the municipal center and law enforcement needs.
In addition, there is $1,000, 000 shown as capital project costs in
1992 which include a $500, 000 or 10 percent of the Community
Investment Fund for the ice arena/outdoor swimming pool project and
an additional $500, 000 or 10 percent for municipal center site
preparation. The latter, the municipal center site preparation,
will be necessary for the municipal center/law enforcement and
outdoor swimming pool/ice arena project to provide adequate
parking, roadway improvements, storm sewer and other public
improvements necessary for finalizing development of the 40 acre
site.
In summary, use of the Community Investment Fund is heavily
weighted toward essential services. Approximately 90 percent of
the proceeds are earmarked for law enforcement/municipal center
expansion and Fire Station building projects. The remaining 10
percent is for the outdoor swimming pool/ice arena project.
Single Family Mortgage Bond Program
As the City Council recalls, the City has accessed approximately
$2 , 000, 000 from the 1980 Single Family Mortgage Bond Program. In
1987, the City Council restructured the bonds and committed those
proceeds, approximately $1, 100, 000, toward senior housing. As a
result, the City in a collaborative effort with the Dakota County
HRA is constructing a $3 , 000, 000 senior housing project with City
proceeds in the amount of $1. 1 million from the Single Family Bond
Fund. More recently, the City had an opportunity to defease the
Single Family Bond Fund and as a result, has an additional $850, 000
unallocated revenue source available for capital projects. It has
been the City Council 's discussion to date to use these funds for
a project benefitting youth. As a result, the $850, 000 is proposed
as a partial revenue source for the ice a rena/outdoor swimming pool
project.
General Obligation Bond Referendum
The next funding category is General Obligation Bond Referendum,
estimated at $4, 000, 000. This amount will be finalized by March 2
when the project cost for the swimming pool/ice arena is
established by the City Council. This amount could increase or
decrease according to the final estimates presented by the
architect.
Public Enterprise Fund
The City Council, in previous years, has dedicated a portion of its
general fund and public enterprise fund operating budgets for
additions to the public works maintenance facility. Due to recent
budgetary constraints on the general fund, the last addition/
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improvement to the public works maintenance facility allocation was
reduced for the general fund with a heavier emphasis on payment
from the public enterprise operating budget. Certainly, there is
an argument that both the general fund and public enterprise fund
should appropriate dollars toward any improvements to the public
works maintenance facility and that equipment storage and
administrative office needs benefit street and park activities
funded by the general fund and water, sewer and storm sewer needs
that are currently financed by the public enterprise operating
budget. The same argument could be made with expansion or
improvements to the municipal center building in that various
departments, especially utility billing, provide a direct service
and purpose to the public enterprise activities. To date, there
has been no transfer or allocation of revenues from the public
enterprise fund for maintenance and expansion of the municipal
center building.
In summary, any addition and remodeling to the municipal center
which includes a benefit to public enterprise fund activities will
be funded by the Community Investment Fund and improvements to the
public works maintenance facility could be a direct obligation to
the Public Enterprise Fund. Please note that at the request and
direction of City Councilmember Wachter, Part I Public Facilities
includes the expansion of the public works maintenance facility in
1993 financed from the Public Enterprise Fund.
In summary, the Public Facilities budget under Part I is quite
aggressive for 1992 and 1993, assuming several public facility
capital projects in those two (2) years. The coordination of
architects and administration of capital projects takes time and
with scarce resources to assume four (4) separate building projects
in approximately eighteen (18) months, may be unrealistic but
certainly not impossible. It might be necessary to further
prioritize and consider some expansion in 1994 . Another
consideration would be to hire one (1) architect to combine all
improvements into one (1) project, with the exception of the ice
arena/outdoor swimming pool. This may or may not be workable given
the difference in expertise each architectural firm has, especially
in the area of public safety for fire station and law enforcement
construction.
•
1992-1996
PART I
Public Facilities
Community Single G.O. Public
Investment Family Bond Enterprise
Project Title Fund Bond Fund Referendum Fund
1992
Land Acq./Fire
Station #6 $ 100,000
Ice Arena Facility &
Outdoor Swimming Pool 500,000 $850,000 $4,000,000
Municipal Center Site
Preparation 500,000
Total 1992 $1,100,000 $850,000 $4,000,000
1993
Law Enf./ Municipal
Center Expansion $2,500,000
Fire Station #6 &
Equipment 1,400,000
Public Works Maintenance
Facility Expansion $700,000
Total 1993 $3,900,000 $700,000
1994
None
1995
None
1996
None
TOTAL PUBLIC FACILITIES $5,000,000 $850,000 $4,000,000 $700,000
Summary Total
Law Enforcement $3,000,000 $ 3,000,000
Ice Arena & Outdoor Pool 500,000 $850,000 $4,000,000 5,350,000
Fire 1,500,000 1,500,000
Public Works Maintenance $70.0,000 $ 700,000
$5,000,000 $850,000 $4,000,000 $700,000 $10,550,000
Cg
PART II
Equipment
This section, Part II Equipment, of the five (5) year Capital
Improvements Program, includes both new equipment and replacement
of equipment for all general fund operations. Due to levy
restrictions, the reliance on general fund revenues is minimal.
The main source of funding is the sale of equipment certificates.
Please note that equipment listed 1992 has been revised as approved
by the City Council. Again, the five (5) year CIP is a guideline
and the equipment is subject to change on an annual basis and in
any event, would be approved each year as a part of the general
fund operating budget process.
1992 - 1996
PART II
EQUIPMENT
General Equipment
Equipment Fund Certificate
1992
Data Processing $ 93,570
Finance 49,850
Community Development 14, 000
Police 95,200
Fire 245, 000
Public Works/Engineering 39, 500
Streets 21,500
Parks and Recreation 105, 000
TOTAL 1992 $663,120
1993
Data Processing 58,700
Community Development $45, 000 30, 000
Police 201, 000
Fire
Public Works/Engineering 241, 000
Central Services 10, 000
Parks and Recreation 133, 000
TOTAL 1993 $673,700
1994
Administration 13, 000
Data Processing 23, 700
Community Development 30, 000 15, 000
Police 233, 000
Fire 121, 000
Public Works/Engineering 178, 000
Central Services 25, 000
Parks and Recreation 194 , 000
TOTAL 1994 $802,700
1995
Data Processing 19, 200
Community Development 30, 000
Police 188,500
Fire 550, 000
Public Works/Engineering 173, 000
Central Services 7, 000
Parks and Recreation 71, 000
TOTAL 1995 $1,038,700
1996
Total Vehicle and Related
Equipment 700, 000
TOTAL 1996 700, 000
TOTAL EQUIPMENT $75,000 $3,878,220
PART III
Public Enterprise & Parks (Parksite)
All capital projects defined as Part III Public Enterprise &
Parksite will be funded through the sale of revenue bonds, special
assessment bonds, parksite fund and potential developer dedication.
The only exception is the five (5) year match for sealcoating of
streets of which the City funds 50 percent of that cost from the
general fund. Approval of Part III of the five (5) year CIP will
allow departments to plan timelines for capital projects according
to the project breakdown as defined in Part III. Adoption of Part
III is not in any way approval of a project. Adoption of the CIP
provides direction that it is the City Council 's intent to consider
projects as proposed for any of the five (5) calendar years. Each
project will require a review and approval by the City Council no
different from projects that have been approved without a formal
Capital Improvements Program. The CIP provides a planning tool for
both the City Council and management team.
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