09/28/1992 - City Council Special 7214
AGENDA
SPECIAL CITY COUNCIL MEETING
Eagan Municipal Center Building
Monday
September 28, 1992
7:00
I. ROLL CALL & ADOPT AGENDA
II. PLAN B FORM OF GOVERNMENT
III. DRAFT 1993-1997 C.I.P. (PARTS I & II)
IV. DISCUSSION - 1993 GENERAL FUND BUDGET
V. OTHER BUSINESS
VI. ADJOURNMENT
Auxiliary aids for persons with disabilities will be provided upon advance notice of at least
96 hours. If a notice of less than 96 hours is received, the City of Eagan will attempt to
provide such aid. •
• ,
MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: SEPTEMBER 25, 1992
SUBJECT: SPECIAL CITY COUNCIL MEETING/SEPTEMBER 28, 1992
At the last regular City Council meeting held on Thursday, September 17, the City Council
set a special City Council work session for Tuesday, September 29 at 5:00 p.m. A specific
reason for holding that special City Council meeting was to address the Statutory Plan B
Council Manager form of government item that was addressed at the September 17 regular
meeting. After contacting the County Auditor's office concerning the possibility of removing
the Plan B form of government item from the ballot on November 3, if the City Council as
a result of the work session decided not to proceed with the question this fall, it was learned
that Monday, September 28 is the deadline due to the printing of ballots to satisfy the
availability of absentee ballots that must be available beginning October 3. Since the ballots
will be printed late Monday, September 28, the deadline for the ballot question is noon on
Monday, September 28. Mayor Egan and all four (4) members of the City Council were
polled and a special City Council meeting has been rescheduled to 7:00 a.m., Monday,
September 28 to allow the City Council to have this discussion as originally intended.
• The press for both ThisWeek and the Sun Current have been notified of the change. The
other two items on the agenda, which include review of the CIP and general fund budget,
will be considered at this special Council meeting. The only person who has requested
notification of this special work session is John Freeman, who was notified of the change
and time and date.
STATUTORY PLAN B
Enclosed on pages „_ through .Z is a copy of a memo and support information the City
Administrator's office has prepared on the Statutory Plan B Council Manager form of
government at the request of the City Council. If it is the intention of the City Council to
proceed with the ballot question, the City Administrator will prepare a fact sheet on why
the City Council is proposing to change the form of government from Plan A to Plan B for
advisory commission members, City employees, the Chamber of Commerce and any other
appropriate groups. Press releases will be prepared as well. The fact sheet will be
distributed to the City Council first to make sure the information correctly represents
reasons for considering the change in the form of government.
There is no action to be considered on this item unless the City Council decides it is not
appropriate to continue with the question on the ballot for the November election.
S
DRAFT 1993-1997 CIP (PARTS I & II)
This item is placed on the agenda for the purpose of reviewing Part I Government Facilities IP
and Part H Vehicles and Equipment expenditures that are under consideration in the 1993-
1997 CIP. Enclosed on pages ? through .23_ is a copy of a memo from the City
Administrator that provides background on this agenda item. This item is scheduled for
review and direction; there is no formal action required.
DISCUSSION - 1993 GENERAL FUND BUDGET
Enclosed on pages ay through as is a memo that provides additional update on the
proposed 1993 general fund budget. The memo also includes notes from the special City
Council meeting held September 10 when the City Council raised certain questions about
the budget as proposed. Those questions and other issues raised in the memo should be
addressed, if time permits, and direction where appropriate.
Coffee,juice and rolls will be served for the early morning meeting. If any member of the
City Council has questions or would like additional information regarding the special City
Council meeting, feel free to contact the City Administrator at home (452-2238) over the
weekend.
/S/ Thomas L. Hedges
•
City Administrator
•
c2
M E M O R A N D U M
I
TO: CITY ADMINISTRATOR HEDGES
FROM: ASSISTANT TO THE CITY ADMINISTRATOR HOHENSTEIN
DATE: SEPTEMBER 22, 1992
SUBJECT: STATUTORY PLAN B - COUNCIL-MANAGER FORM OF GOVERNMENT
In response to your memorandum of yesterday, the following
information expands on previous material provided regarding the
change from Statutory Plan A (Council-Administrator) to Statutory
Plan B (City Manager) . Attached you will find the previously
distributed summary of differences between the two forms. In
addition, you will find, as a second attachment, an article from
"Minnesota Cities" magazine discussing changes in the form of
government.
Background
In its strictest sense, Statutory Plan A provides for a clerk or
administrator with no discretionary authority. In addition to
policy issues, all personnel and purchasing decisions remain within
the authority of the City Council. Often, when a City establishes
a new administrator position, it is constrained within these
limited bounds and evolves over time as the Council confers
increasing responsibility on the position. This is the case in
Eagan where increasingly more duties, responsibilities and
discretion have vested in the position of City Administrator over
the sixteen years of its existence.
In that time, the role of the City Administrator has been expanded
by the City Council to include most of the authority statutorily
vested in a City Manager. These include budgeting functions,
personnel administration short of hiring and termination,
purchasing discretion up to $1000 with review by the Council and
responsibility for reporting relationships of all City staff. The
principal remaining difference is the authority to hire and fire.
This expansion of authority has been a natural response to a
growing City and municipal organization as well as the increased
complexity of the day-to-day management of the organization. In
essence and in practice, the City Administrator function in the
City of Eagan is the same as the City Manager function as defined
by statute with the exception of the power to hire and fire. Since
the City Administrator handles all other aspects of screening,
hiring, discipline and firing other than the official action of the
City Council on the basis of the Administrator's recommendation,
a change from Statutory Plan A to Plan B would be relatively minor.
Procedural Issues
The County Auditor's office has been properly noticed of the City
Council's action in this regard. The question as noticed to the
Auditor reads:
3
For the City of Eagan, Shall Optional Plan B, providing
for the council-manager form of city government, be
adopted for the government of the City?
The League of Minnesota Cities, Attorney General 's office and the
City Attorney indicate that statute requires the question to be
substantially in this form. The City may prepare and distribute
informational material to better explain what Plan B and the
Council-Manager form implies, but it is strongly suggested that
such expansion and explanation not be in the question.
The ballots for the November 3 election must be printed and in the
Auditor's office by Friday, October 2. To accomplish this, the
final ballot form is being proofed and sent to the printer on
Monday, September 28. The Auditor is currently typesetting ballots
including the City's question as outlined above. If the Council
were to determine not to move forward with this item, the City can
have it removed from the ballot no later than the morning of
September 28.
Please let me know if you have any questions or require any
additional information.
As ' sta t to the City Administrator
11/
ADMINISTRATOR--STATUTORY PLAN A
•
The City of Eagan currently operates as an Optional Plan A Statutory i t under Minnesota
Statutes 412. Under this form of government, all legislative and administrative authority
vests in the City Council. This body may appoint professional staff and administrative
commissions to oversee day-to-day activities and carry out policy direction.
Such cities may also appoint a professional City Administrator and delegate non-
discretionary, coordinating authority for such responsibilities as supervision of workers,
accounting,preparation of reports,factual determinations,and execution of Council policies.
In adopting Optional Plan A, Eagan exercised this option.
While the Council-Administrator form resembles the Council-Manager form in many
respects, the principal difference is that in Administrator cities,discretionary administrative
responsibilities such as hiring and firing and most spending decisions remain with the City
Council. Under strict interpretations of this form of government, the Administrator is
actually a coordinator and departments are ultimately responsible to the City Council.
As cities grow and become increasingly complex, councils may find themselves involved in
the details and minutia of administration rather than the policy and legislative functions
which they must necessarily perform. Currently,Eagan is the largest City in Minnesota with
this form of government.
MANAGER--STATUTORY PLAN B
• The City of Eagan has the option of becoming Plan B Statutory City under the same statute.
The Plan calls for a Council-Manager form of government under which the chief
administrative officer's duties are expanded to include hiring and firing and purchasing
decisions within the parameters of the approved budget. The Council's role is still one of
policy and legislation, but is less involved in the minute details of administration.
In practice, the City of Eagan has delegated to the City Administrator many duties
comparable to those of a City Manager. While all such duties are practical in nature, some
may more appropriately be performed under the statutory authority of Optional Plan B.
Under this form of government, the following types of business items are handled
administratively, without Council action:
1. Enforcing city ordinances and resolutions,
2. Hiring and firing of all department heads and subordinate personnel on the
basis of merit and fitness (although the Council could have an advisory role
in the case of department heads)
3. Appoint the City Attorney with Council confirmation,
4. Exercising administrative control over all city departments and divisions
created by law or by the Council,
5. Attending all meetings of the council,
6. Recommending to the Council such measures necessary for the welfare of the
• people and the efficient administration of the city,
7. Making reports on the financial condition and needs of the city,
8. Preparing, if the council directs, an administrative code for Council adoption,
9. Assuming all duties the manager receives under state laws, city ordinances •
and council resolutions,
10. Acting as the chief purchasing agent for the city. As purchasing agents,
managers are responsible for all purchasing. Managers may, in conformance
with the budget but without prior council approval, make purchases and let
contracts when the amount does not exceed $1,000. However, city councils
must audit claims resulting from such transactions. Larger purchases and
contracts still need council approval.
Examples of actions which would continue to require Council action:
1. Public Hearings,
2. Feasibility Reports,
3. Large or unbudgeted expenditures,
4. Joint Powers Agreements,
5. Zoning, land use and platting,
6. City Manager Salary, and
7. All other legislative and policy decisions.
There are also other differences between administrator and manager plans.
1. With the exception of civil service and joint powers commissions, all boards
and commissions under Optional Plan B must be advisory in nature,
2. While it is only reasonable and has been a past practice, Optional Plan B
cities require the Manager to prepare an annual budget for public review and
Council approval,
3. The Council as a whole and individually are legally prohibited from
interfering with the Manager's prerogative to hire employees,
4. The Council is legally required to exert all of its controls through the City
Manager and is prohibited from attempting to deal with or directly control
any administrative person subordinate to the manager(although this does not
preclude council members requesting information pertaining to City business
from employees other than the manager),
5. The Manager signs written instruments on behalf of the city instead of the
City Clerk.
•
•
f 5
you know?Did Stanley G. Peskar
,- ;1
Changing city government structure
f. How could a Plan A statutory purchases and contracts (under$1000) Can a city legally v
ty g y ha e a full-
city change to a council-manager and the powers to hire and fire city time mayor-manager?
form of government? personnel. Not in a statutory city where the
t.
The change could take place in two Under home rule charter, the chart- council doesn't have authority to assign
ii ways. First, the city could switch to er specifies the powers and duties of to the position of mayor any additional
Optional Plan B for statutory cities. any administrative officer, whether duties or powers beyond those statutes
Plan B is a council-manager form. Min- manager, administrator, or coordina- prescribe. Nor would it be possible in
2 nesota Statutes 412.601-412.751 spell tor. In general, the term "manager" most cases for a person holding the
•, out the powers and duties of the man- usually implies a greater degree of position of mayor to simultaneously
ager. A switch to Plan B must have discretionary power than does the term hold the position of administrator,
voter approval. "administrator." However, some Min- because of common law and statutory
The second possibility would be for nesota city charters create positions of prohibitions.
the city to adopt a home rule charter administrator which have more exten- But, under a charter, a city could
providing for a council-manager form. sive powers than positions of managers assign extensive administrative duties
This route gives somewhat more flexi- in other cities. to the mayor and compensate him/her
bility because a charter may provide What is the relationship between accordingly.
for greater or lesser power to the the city council and the city admin-
istrator? Is it advisable for a city to have
manager, depending on local prefer- a mayor-administrator?
prefer-
ence and local conditions. A city administrator in a statutory The only way a city could have a
The league has memos which discuss mayor-administrator (strong-mayor)
�' procedures for adoption of either form. city is subordinate to the city council would be to have home rule charter
and subject to the council's direction at provide for this. The
Under what circumstances times. This differs from the status P problem is that at
would a city want to change to a of a Plan B city manager who has some point, th e city may not find an
council-manager form? certain statutory powers (e.g. person- individual in the city who is 1) eligible
Perhaps the key question should be: nel) with which the council may not to run for office, 2) electable, 3) a
"Are we experiencing problems which interfere. competent administrator, 4) willing to
I a manager form would alleviate?" Such run for and accept a full-time office
I problems might include the council What effect will a city adminis- knowing that he/she may not have a
spending large amounts of time on trator position have on positions job after the next election. And it is
making small contracts and purchases, such as clerk-treasurer and deputy possible that voters would elect a ht
and personnel decisions are political clerk-treasurer? ically popular but administratively inept
rather than merit related. The effect is almost entirely up to Person to the position. Only a few of
What are the essential differ- the council. The council could create a Minnesota's larger cities (St. Cloud,
ences between a city manager and position of clerk-treasurer-administra- for example) have adopted strong-may-
i a city administrator? tor, eliminating the separate clerk- or charters.
I In general, a statutory city council treasurer position; or it could make the Are city administrator positions
cannot nnot legally delegate to any other clerk-treasurer subordinate to the cost-effective?
t officer or board any discretionary pow- administrator; or create an administra- Because of the large number of
er without specific statutory authority. tive position subordinate to the clerk; complex variables involved, this clues-
Thus, a city cannot give a statutory or make the administrator and clerk- tion is difficult to answer. Reasons for
.' city administrator the power to make treasurer coordinate positions, with hiring an administrator often include
purchases, enter into contracts, hire neither subordinate to the other. changing conditions, rapid growth, or
and fire employees, and so on, because To decide how to set up an adminis- specific problems. City budgets may or
these powers involve the exercise of trator position, the council would have may not show increases with an admin-
discretion. to consider the city's needs, the duties istrator, but to attribute an increase
Under statutory city Plan B on the the administrator would perform, and solely to the presence of the adminis-
other hand, statutes give the manager the skills, abilities, and experience of trator would be overly simplistic.
certain discretionary powers. The most the incumbents in the clerk-treasurer Depending on the city's goals, an
significant powers are to make small and deputy clerk-treasurer positions. Cont. on page 23
-
7
.,„ .
. ; 4,....
...
..,
Labor relations Cyrus Sm
_ S
ttt Court decisions (cont.)
•t- 1
. t- )
The ordinance also requires solici-
,
• i tors, within 30 days, to file a financial Discipline and discharge
1 statement showing costs, amount of
,- i contributions, disbursements relating
t f to solicitation, and purposes of the fund
disbursement. A previous article on discipline which The courts, however, in a growing
a The federal district court found the Minnesota Cities printed in May 1973 number of states, indicate that employ-
t ordinance unconstitutional, vague, and repeated in May 1977, advised ers should consider that, for practical
) g overbroad, and lacking procedural safe- cities of the requirements arbitrators purposes, all employees belong to a
I guards. On appeal, the circuit court imposed in their review of disciplinary protected class. The costs of ignoring
disagreed, and upheld the ordinance as actions employers take. that principle can be large indeed. (For
facially constitutional. The court based Continual developments in the disci- example, a verdict of $4.8 million
the decision on the fact that the infor- pline area clearly indicate that the involving one employee, Newton v.
l mation the city sought was objective courts are extending these require- Kaiser Steel.)
and of an identifying nature, and that ments to non-union employees. Cities All supervisors should have training
[ the ordinance gave city officials no should exercise the same care in terms in both the substantive and procedural
power or discretion to review the infor- of discharging employees without union aspects of discipline. Make sure that
j r mation for accuracy or fraud. contracts as they do with union the city's disciplinary procedures:
While noting that First Amendment employees. • provide notice to employees of disci-
rights of free speech and freedom were A number of recent court decisions plinary action;
important in the case, the court found involving discharge actions indicate the • give the employee an opportunity to
•L. that the ordinance requirements were court's increased willingness to review speak before the city makes a all
minimally intrusive, and were a means allegations of employers' unfair dis- decision; and
for the city to attempt to protect its charge action. Many employers have • provide for a review of both the
citizens from fraud and harassment. assumed that they need to take great substantive issues of discipline and the
The circuit court did, however, care in discharge actions only when the procedures to carry out the discipline
kt remand the case for a determination as employee has a union contract or the to make sure they are consistent with
to whether the ordinance would be Equal Employment Opportunity Act criteria arbitrators demanded.•
Iunconstitutionally burdensome as protects the employee. .
e applied to the particular appelant in the w
f , case. International Society for Krishna
Consciousness of Houston, Inc., v.
City of Houston, CA 5, Oct. 18, 1982.■ Minnesota
•t
Did you know (cont.) Cash Register
administrator might have an effect on Distributor For
i attracting industry, obtaining grants, Data Terminal Systems ANFINSON,
x streamlining city procedures, helping Electronic cash registers HENDRICKSON & CO.
t plan city service delivery more effi-
- fciently, and eliminating unnecessary • • • CERTIFIED PUBLIC ACCOUNTANTS
l city positions. In most cases, any and now open
1 k; attempt to say that city costs are lower The Cash Register audit and
- t because of the administrator would be management advisory services
t°. pure speculation. Store to cities for over 30 years
For further information on these
questions and others, write to the • • •
1
i. League office and ask for memos: 612-920-8191 Palk National Bank Bldg
Optional Plans of Statutory City Gov-
° ernment, Home Rule Charter Commis- 5614 West 36th Street 5353 Wayzata Blvd • Suite 410 il
sion Procedures, and The Pros and Minneapolis, Minn. 55416 Minneapolis. MN 55416
612.545.0421
1 ' Cons of the Council Manager Plan.•.
i E
•
MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
• • FROM: CITY ADMINISTRATOR HEDGES
DATE: SEPTEMBER 21, 1992
SUBJECT: DRAFT CAPITAL IMPROVEMENT PROGRAM FOR 1993 - 1997, PART I
AND PART II
The first comprehensive five (5)year capital improvement program was adopted by the City
Council in March, 1992. The document is entitled "Capital Improvement Program 1992-
1996 - City of Eagan, Minnesota." Presentation of the information was divided into three
(3) parts:
I. General Government Facilities
II. Vehicles and Equipment
III. All Other Projects Generally Described
as Public Enterprise and Parks or Projects
Funded through Revenue Bonds, Special Assess-
ment Bonds or the Park Site Acquisition and
Development Fund
For the purpose of this meeting, the City Council will be addressing Part I, General
• Government Facilities,and Part H, Vehicles and Equipment. The third part is being revised
by staff and will be presented by the City Administrator later in the fall.
PART I/GENERAL GOVERNMENT FACILITIES
The public facilities portion of the CIP contains four (4) revenue sources which include:
• Community Investment Fund
• Single Family Bond Fund
• GO Bond Referendum
• Public Utility User Fees
There is little change proposed in the 1993 - 1997 General Government Facilities section
of the CIP with the exception that the GO Bond Referendum in the amount of$4,000,000
has been omitted as a revenue source for the ice arena facility and outdoor swimming pool
project. Since the use of Community Investment and Single Family Bond funds are
discretionary by the City Council, there were no assumptions made to change projects
funded by these revenue sources. Obviously, the projects are now being considered in
1993/1994. Attached is a copy of a revised Part I for City Council consideration.
Several months ago the City Administrator was given direction to study alternatives for the
• construction of an addition for law enforcement and municipal center needs such as rental
of store front or office space or the possibility of acquiring and remodelling a building as
a redevelopment project within the community. A copy of the analysis is attached for
Council review. Because of time restrictions and the agenda proposed for Monday,
September 28, a larger segment of time may need be set aside at a future work session in
October to address the law enforcement/municipal center expansion plans.
Fire Chief Southom is continuing to explore sites for Fire Station#6,however,to date there
lir
has been no recommendation for a land acquisition. More recently, the bid process on the
fire pumper truck and new recruits for volunteer firefighters have been higher priorities for
Fire Chief Southom and the Fire Department's executive committee.
II. VEHICLES AND EQUIPMENT
Each year department heads review their existing equipment and through an evaluation by
the City's Central Service Division and its chief mechanic provide a list of vehicles and other
equipment that should receive consideration for replacement. There are also occasions
when new equipment is desirable for performing certain tasks by various departments
throughout the City. The equipment list as presented by Department Heads totals
approximately $775,500 for 1993. The requests generally match the equipment that was
proposed in the five year CIP, more specifically, for 1993 but not in every case. The amount
approved as a guideline for vehicle and equipment spending in 1993 in the five year CIP was
$760,700, in comparison to the amount which represents the total submitted by department
heads for the same calendar year.
At the last budget work session the City Council expressed a cost/benefit philosophy that
\ essentially stated to do more and do better is not good enough; more importantly, how will
it save money and benefit the community? The City Administrator is suggesting that this
philosophy be applied to all aspects of the capital improvements budget which may require
some additional budget analysis for equipment proposed in 1993. It is suggested that the
/ City Council review the Part II and if there are any obvious concerns or issues those should
.s Ge shared with the City Administrator and department heads. That part of the process will
,se be followed by more department analysis where it is requested.
' cP o� a reminder, the revenue source for vehicles and equipment is the equipment revolving
1 xa X fund which is totally funded by either a general property tax levy or by the sale of
e\," 1 equipment certificates which requires a special levy for debt retirement.
,A 5�� summary, the purpose for presenting the capital improvements program Parts I and II is
`C� for discussion and direction the City Council may provide on any of the spending
b' considerations. As soon as the Part III is completed that information will be shared with
the City Council for review and eventual ratification. It is hopeful the revised capital
improvement program along with the general fund budget and public enterprise budget will
be considered and adopted in December.
C-71/4
City Administrato
TLH/jeh •
/C/
GENERAL GOVERNMENT FACILITIES
. PART I CIP
Community Single
Investment Family
Project Title Fund Pond Fund Total
1993
Land Acqu./Fire
Station #6 100,000
Ice_Arena Facility &
Outdoor Swimming Pool 500,000 $ 850,000
Municipal Center Site
Preparation 500,000
Law Enf./Municipal
Center Expansion '2.500,000 __
TOTAL 1993 $3,600,000 $ 850,000 $4,450,000
1994
Fire Station #6 &
Equipment 1,400,000
TOTAL 1994 $1,400,000 $1,400,000
1995
None
1996
None
1997
None
TOTAL $5,000,000 $ 850,000 $5,850,000
1/
VEHICLES AND EQUIPMENT
PART II CIP
DEPARTMENT REQUESTS •
ADMIN: NONE
DATA PROCESSING
NO OF UNIT TOTAL
ITEM UNITS COST COST
9 4,600 41,400
HPVectra QS25 PC, 4MG RAM
30 MG Harddrive, dual 1ports
color monitor
HP LasarJet III Printer 2 1,700 3,400
Upgrade IBM/ to 386 4mb ram 2 1,500 3,000
Two HP Ethernet Bridges 2 2,500 5,000
Two DSU/CSUs 2 500 1,000
Novell Network Equipment
HP 486 Server (disk dup) 1 7,800 7,800
UPS system w/power cond 1 850 850
Tape Backup 1.2 GB 1 1,900 1,900
Three HP 8 port hubs 3 410 1,230
SMC Ethernet Cards 12 190 2,280
Laser Printer direct cards 2 480 960
Novell 20 user license 1 2, 100 2,100
Network Software
WordPerfect 10 user 1 1,000 1,000
Lotus 123 5 user 1 1, 100 1,100
DBase III Plus Lan Pack 1 700 700
Network Mail System 1 2,500 2,500
MSDOS 5.0 upgrade 10 85 850
ARCSERVER (Backup) 1 750 750
Lotus Freelance (Server 1 1,000 1,000
DBase Software 3 440 1,320
Aldus Pagemaker 2 520 1,040
Printer Memory Upgrades , 2 500 1,000
Computer Tables 3 150 450
Fire HazMat Software 1 1,500 1,500
Microsoft Windows w/mouse 4 160 640
PD Incident Forms Software 1 2,000 2,000
MDT Software Changes 1 1,000 1,000
WordPerfect Windows - 8 300 2,400
Upgrade Scheduling Software 1 1,000 1,000
Police Gun Control Software 1 2,000 2,000
PC Testing Software/Upgrade 1 1,500 1,500
Lotus 5 user site license 1 1,500 1,500
Microsoft Windows w/mouse 8 160 1,280 III
TOTAL $97,450
/c2-
DEPARTMENT REQUESTS
,, PAGE TWO
Aft
FINANCE: NONE
LEGAL: NONE
COMMUNITY DEVELOPMENT:
Expand Parking Lot - Municipal Center $20,000*
Expand Parking Lot - Fire Administration 30,000*
Underground Sprinkler System 20,000*
Carpet for Open Office - Police Department 8,000*
Portable Radios, Chargers 4,400
Vehicle - Inspections 14,000
TOTAL $96,400
CABLE: NONE
POLICE:
20 Channel Dig. $ 35, 000
MDT Software Package 10,000
Portable Radios 6,000
(2) Full Size Patrol Cars 29,760
Utility Step Van 30,000
(3) Midsize Investigators Squad 44,040
TOTAL $154,800
FIRE:
Fire Prevention Trailer $31.000
TOTAL $31,000
*it is suggested that these capital items be deferred and con-
esidered with the Law Enforcement/Municipal Center reconstruction.
/3
DEPARTMENT REQUESTS
PAGE THREE
PUB WKS/ENG: NONE
STREETS:
2,500 Gal Tank & Spray Ban $ 6,500
Crack Router 6,500
Hot Air Blower 2.800
4 Yd Snow Bucket 6,000
Airless Paint Sprayer & Trailer 7,500
Hydraulic End Gate 2,200
Truck Mounted Distributor-Tackcoat Applicator 40,000
Skidsteer Loader 25,000
1-Ton Truck w/Plow 30,000
4-Door Sedan (Replacement) 13,500
Single Axle Dump w/Plow & Wing 87,000
TOTAL $227,000
CENTRAL SERVICE MAINTENANCE:
High Bay Metal Halide Light Fixture $ 4,200
Electronic Leak Detection/Fuel Tanks 15,000
New Telephone System 30,000
Laser Jet Printer 1,500
Kroy Letter Machine 700
Hydraulic Hose Crimping 3,000
TOTAL $ 54,400
DEPARATMENT REQUESTS
PAGE POUR
1
PARKS & RECREATION:
Cement Mixer $ 3,500
Single Axle Trailer 3,300
Twin Axle Trailer (Groundmaster) 4,200
Electrical Generator 750
Portable Stage/Trailer 4,200
(2) Groundmasters (Replacement) 28,000
Include Snowblower & Brooms
(2) Groundmasters (Replacement) 22,000
3/4 Ton Pickup w/Plow 21,000
Skidsteer Loader 25,000
TOTAL $111,950
• TREE CONSERVATION:
Truck Box $ 2,500
TOTAL $ 2,500
TOTAL PART II CIP $775,500
•
s
MEMORANDUM •
TO: CITY ADMINISTRATOR HEDGES
FROM: ASSISTANT TO THE CITY ADMINISTRATOR HOHENSTEIN
DATE: AUGUST 3, 1992
SUBJECT: MUNICIPAL OFFICES SPACE OPTIONS
Several months ago, you asked that I study the potential for the
City to meet its projected space needs through alternatives to new
construction. In approaching this issue, the following range of
options was considered. A brief summary of their relative merits
are summarized.
Municipal Space Options
1. No Build - The Police Department is currently beyond capacity
and City offices are tight and inefficient. Currently, the
Police Department occupies approximately 12,700 square feet
built in 1977. At the time this space was built, it was
estimated to meet the City's needs for ten years or to a
population of 30,000. At fifteen years and a population of
50,000, the space is no longer adequate for the department's
needs. The various administrative functions, Council Chamber
and common areas occupy another 20,500 square feet built in •
1983. This space is above capacity also, although not to the
level of severity evident on the police level.
2. Expand Current Building - The City may choose to implement a
plan similar to that outlined in the BRW Space Needs Study or •
alternative building plans could be developed based on the
study's findings. This option would permit retention of some
current space and expansion of both the Police and General
Government spaces. It would likely be the most disruptive
option since both areas would need to continue to function
during construction. In addition, the relationship of the
secure police functions to the proposed expansion plans would
create certain difficulties relative to access and suspect and
property control. Revised estimates of this alternative place
its cost at approximately $3.3 million, assuming $135/s.f. for
police and $80/s.f. for general government.
Total cost: $3.3 million
3. Relocate One or More Municipal Functions
A. Relocate City Offices - Remodel current facility for
Police functions at an estimated cost of $500,000.
Utilize remainder of CIP allocation for the purchase and
improvement of an existing building to be used as an
administrative facility or allocate a comparable
•
operating amount to a long term lease.
6
Alternative location options raise issues of
decentralization and relation to service area. Currently
most City functions are centralized and co-located to
insure ease of access for residents, businesses and those
doing business with the City.
Total cost: Average annual cost of $421,000 pet year plus
remodel of existing building results in a
cost of $4.7 million over the ten year
planning horizon, with no factor for
inflation.
B. Relocate Police Department - Remodel the current facility
for general government functions at an estimated cost of
$350, 000. Designate the remainder of the CIP allocation
to the purchase and improvement or lease of an existing
facility. This option presents the same issues as above
but internal improvements will be much more involved and
their costs will be much higher. Fewer facilities would
be appropriate to this use as compared with a straight
office use. Costs of remodeling for secured space would
be prohibitive. If an investment is to be made in
secured space, it would be most cost effective to own the
property.
Total cost: Not calculated but well in excess 3.A. above.
• 4. Build New Facility for One or More Municipal Functions On Site
A. Build New Police Facility On Site- Build entirely new
police facility to meet needs of City at build out.
Remodel current police offices for municipal center use.
Avoid costs of remodeling police facility while in use.
St. Louis Park is building a 26,000 s.f. police facility
for $3 .8 million. Oakdale is building a 14,000 s.f.
police facility for $2.3 million and remodeling the old
police station for City offices. Based upon these
examples and discussions with professionals in the field,
a new Eagan Police facility at 25,000 to 30,000 square
feet would cost approximately $3.4 to 4 million plus an
estimated $350,000 to remodel the existing building for
expanded administrative uses.
•
Total cost: $3.75 to 4.35 million
B. Build New Municipal Offices On Site - Remodel current
facility for Police functions at an estimated cost of
$500, 000. Appropriate the remainder of the Municipal
Center Expansion CIP allocation toward a new
administrative facility.
// 7
The potential exists to share certain of the common areas
and retain the Council Chambers for their current use
resulting in cost savings as well as certain efficiencies
from shared space and functions. Even if this were not
the case, at $80/s.f. an expansion of 31,000 square feet
would cost approximately $2.5 million including immediate
site improvements.
Total Cost: $3 million
5. Co-Locate Some/All Police Operations With Countv/Apple Valley
- While originally an innovative alternative, the option of
cooperating with Apple Valley appears no longer to be
feasible, since Apple Valley has elected to build near the
County Western Service Center. The option of co-locating with
the County's juvenile detention center is still remotely
feasible, but it raises significant issues of relationship to
service area and location within the respective jurisdictions.
There is also a diminished likelihood that any functions could
be shared such that it would simply be a co-location with all
of the same costs and considerations attendant to building
anywhere else. Cost estimates are not available for this
option due to its speculative nature.
6. Consolidate Additional Functions at Current Site - It would be
•possible to incorporate Fire Administration and or ambulance
bays in new facility, presenting the potential to reuse the
current fire administration space for meeting areas, senior
center, transit hub, athletic uses, parks functions and the
like or sell it. This option is not free-standing, but would
be dependent on approval of one of the other alternatives.
' . -o .le- - e •=op1- ' p= - - .e - - lo. - -r
•rk e y.
Build/Lease/Purchase Options
In terms of the build or lease/build options, the only feasible
alternative appears to be construction at . the currently owned
municipal center site. Land costs and/or taxes and profit margins
for non-public property has the effect of driving costs for any
other new construction beyond the construction only costs available
at the current site.
In addressing the non-build options, the only apparent feasible
approaches were to lease or purchase existing space or to lease a
newly constructed building on a - site other than the existing
Municipal Center Property.
•
Staff inventoried the available space within the City which could
feasibly meet its administrative office needs. An estimate of
31,000 square feet was used, based on the year 2000 projection from
the BRW Space Needs Study. While this is less than the ten year
planning horizon anticipated by that study, service and employment
growth has been at a pace slightly behind that anticipated as well
leading to a conclusion that a space addition of this scale would
meet city space and service needs for two to four years beyond that
date.
•
Listing agents were contacted and asked if they could accommodate
an unidentified office tenant prospect with such a space
requirement. The results of that inventory is outlined below.
Relatively few existing properties within the City had available
space to meet current needs, and even fewer could meet the
projected need. Properties are compared on an annualized cost
basis below.
SUFFICIENT SPACE
Dakota County Average
Rent: $9.32/ft
Expenses: $6. 34/ft
Cost/Year: $485, 500
1380 Corporate Center Drive
Nick Conzemius - CB Commercial - 924-4666
Space Available: 40,000 s.f. and other buildings in same price
range.
Rent: $8.00 net (including improvements)
Expenses: $4. 00-5. 00
Cost/Year: $387, 500
Note: Tenant of this size could be lead tenant in a new
building.
Zagandale Business Campus - 1285 Corporate Center Drive
Phil Kluesner/Scott Frederikson - Welsh Companies - 944-5810
Space Available: 60, 000 and 26,000 s.f.
Rent: $7.50 net
Expenses: $2.71
Utilities: $1.50
Cost/Year: $363,000 plus leasehold improvement balance.
Note: Includes $20,000 worth of leasehold improvements.
Additional costs of improvements could raise cost by
$60, 000 per year over five years - more than that over a
shorter lease term.
•
/ 9
Unisys Building - 3140 Neil Armstrong Boulevard 411 !
Shidler Group - 835-1500
Space Available: 120, 000 s. f. (40,000/floor, prefer to• lease
whole)
Rent: $7.00 gross plus amortized improvements @ about $10/ft
Expenses: Included
Cost/Year: $360, 000 if 40,000 s.f. is available and improvements
were amortized over a five year lease.
The Waters - Phase II
Russ Crawford - Welsh Companies - 829-3410
•
Space Available: 53, 000 s.f.
Rent: $8.50 (3-5 year lease) includes lease hold improvements.
Expenses: $3 .86
Cost/Year: $383,200
Ipwn Centre/Yankee Square
Bruce Miller - Federal Land Company - 452-3303
Space Available: Would build to suit up to 60,000 s.f.
Rent: $10.50-12.00
Expenses: $6. 00-7. 00
Cost/Year: $550, 300
D & B Software - 3400 Yankee Drive
Jerry Fehn - Dunn & Bradstreet - 681-7000 411 Space Available: Up to 180, 000 s.f. - Entire building by
January 1, 1993
Rent: Rates are not yet set, but are expected to be competitive
with other office properties. Likely to be near the
higher end of ,the range due to the quality of the
property and its amenities.
INSUFFICIENT SPACE
Silver Bell Business Center - Silver Bell Road and Highway 13
Michael Houge - Towle - 835-6775
Space Available: 24 , 000 s. f. in non-contiguous spaces.
Rent: $7.50
Expenses: $2.20
Cost/Year: $300,700 if 31,000 s.f. were available.
glackhawk Plaza - Diffley & I-35E
Rob Taylor - 868-5579 - Number not in service.
Space Available: Approximately 22,500 s.f.
Note: Currently in foreclosure with ITT Commercial
(314) 997-1717
gagan Woods - 2600 Eagan Woods Drive
Jeffrey LaFavre - Thorpe - 546-5555
Space Available: 20, 000 s.f. on two floors
Rent: $12. 00-14 . 50
Expenses: $8.00
Cost/Year: $659, 000 if 31,000 s. f. were available.
C O
. Country Club Market - Cedarvale
Phil Kluesner - Welsh Companies - 829-3409
Space Available: 20, 000 (Warehouse type property)
Rent: $3.50/ft net
Expenses: $2.55/ft
Cost/Year: $121, 000 for entire space (Asking $640,000 for
purchase)
rirstar Office Building - 3900 Sibley Memorial Highway
Neilsen and Associates - 636-2812
Space Available: 13,900 s.f.
Cost/Year: For Sale at $650,000
Dakota County Western Service Center - Cliff Road and Rahn Way
Space Available: 14, 000 s.f.
Yankee Square Offices - 3442-3470 Washington Drive
Federal Land, CB Commercial and Bill Brandt
Space Available: 8, 000 s: f. or less
piscussion
In the short term, the potential to lease space may appear to
present certain cost savings until it is considered over the
planning horizon for this exercise. In addition, as with any
option between leasing and purchasing, the principal benefit in the
• : lease occurs if there is no long term value to the asset or if
flexibility has more value than the cost of the investment.
In this analysis, not only is leasing the most expensive option, it
leaves the City with no tangible asset after the expenditure of
public dollars over the life of the lease. In addition, the
significant asset of the municipal center campus, owned free and
clear, puts all other options at a competitive disadvantage when
considered on the basis of cost.
Several factors are important considerations in approaching a
decision in this regard. First, there is the perception that use
of existing space in community could be cost efficient. The need
for private properties to account for property taxes and profit
prevents this. It is probable that property owners may give more
favorable rates if they knew that the prospect is a municipal
client, but costs would increase over time to insure profit and
account for inflation. Understanding that any taxable commercial
space has to allow for the cost of internal improvements, taxes and
a profit margin, it appears that the City can build a new building
for less.
In circumstances where the location or ultimate size or
configuration of new municipal facilities is in doubt, a medium
term lease may be appropriate, the long term cost considerations do
0 not justify this alternative.
c2/1
There is also a perception that municipal relocation could
encourage commercial development and/or redevelopment.. As noted
above, relatively few available buildings within the City can
accommodate the City's general government functions due to its
scale. While a build to suit option would spur development, costs
would be at a premium since, by definition, it would not be a
distressed property. In addition, relocation would leave the
municipal center site underutilized and, were it not to be used for
public facilities, land use at current location would become a
significant issue since some use would continue at its location.
Since parceling out City functions to multiple locations would
unnecessarily decentralize them and result in significant
inefficiencies and control problems, it would appear that the most
cost effective alternatives continue to be one of several options
for expansion or new construction at the municipal center site. In
order of estimated cost, the options are:
1. Build New Municipal Offices/Remodel Existing Space for
Police Department - $3 million.
2. Expand Municipal Offices and Police Department - $3.3
million.
3. Build New Police Department/Remodel Existing Facility for
Municipal Offices - $3.75 - 4.35 million.
4. Relocate/Lease New Municipal Offices/Remodel Existing .
Space for Police Department - $4.7 million.
In terms of dislocation, the least disruptive alternative would be
construction of a new police facility since it would not require
significant breaches of security or interruptions of service. The •
construction or relocation of the municipal offices would be the
next least disruptive. Expansion and remodeling of the existing
facility would be the most disruptive.
7inancina Options
The current Eagan Five Year CIP identifies two line items for the
Police/Municipal Center Expansion and site improvements. They are
$500,000 from the Community Investment Fund designated for site
improvements in 1992 and $2.5 million from the same source for the
expansion in 1993. Presuming that a substantial number of the site
improvements, such as completion of the loop street and general
parking, would serve not only the Municipal Center but any future
use for the remainder of the site, a total of $3 million is
currently allocated to this purpose.
While this alternative remains the primary assumption for funding
any improvements, four other alternatives bear consideration.
First, the removal of levy limits does permit the City Council to
levy an amount for operating expenses but not for capital debt. As
a consequence, the City could lease property without a referendum
and levy the lease costs even though it would cost more in the long
run than construction would.
(Qa
1.
.. • Second, the City Council could consider increasing the contribution
from the Community Investment Fund to this project. This
alternative requires significant care and analysis, however,
because it places the project in direct competition with other
identified priorities.
Third, the City Council may wish to submit an additional amount to
the voters by referendum to cover amounts over the $3 million
allocated. This may be necessary if the direction chosen is
construction of a completely new Police Facility. Such a facility
is more expensive than the other construction options, but it is
also likely to be more palatable to the voters.
A final alternative would be the issuance of essential purpose
bonds or similar tax exempt bonds through the HRA. Such bonds
require no referendum, but would require a clean opinion from a
bond counsel as to the essential purpose being served. Other
government units utilize such bonds for essential projects such as
County jails or for less essential projects which still meet the
test and are deemed appropriate by the local unit of government.
The City may move forward on the basis of the current allocation if
the least expensive construction alternative is preferred or
alternative funding means can be considered if one of the other
alternatives better meets the City's long term needs.
• Conclusions
It would appear that the most cost-effective alternative would be
the construction of new municipal offices with the remodeling of
the current facility for police purposes. Despite its higher cost,
the construction of a new police facility ; also presents a
significant opportunity because it would not require compromises
which might be necessary in remodeling and would result in the
least dislocation of public safety and overall City operations.
The City may move forward with feasibility analysis of one or more
of the alternatives if directed by the City Council. Staff will
also review additional, specific aspects of these or other
alternatives at the Council 's direction.
If you have any questions about this information, please let me
know.
sist nt to the City Administrator
410
•
t
•
�rt�IL
� A'MdNfIF
IL MEMO
•
ofea an
_city 9
MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: SEPTEMBER 22, 1992
SUBJECT: PROPOSED 1993 GENERAL FUND BUDGET
At the September 10, 1992 Special City Council meeting, action was taken by the City
Council to certify a proposed 1993 general fund budget and proposed levy to Dakota
County. Both the proposed budget and levy have been certified to the County and based
on that information, truth in taxation notices will be prepared for a public hearing to be
held December 1. At the September 10 meeting there were questions and directions
given to the City Administrator in regard to the draft budget. The following is a list of
those issues/questions:
• Are new positions absolutely necessary - is money •
being saved in the long run.
-- Can we meet program demands in Parks and
Recreation with existing personnel.
-- Number of building inspectors.
-- Finance Department clerical - quantify benefits.
• Mayor/City Council salaries.
• Association Dues.
• Oak Wilt - Forestry Budget.
• Value of lawsuits - Legal Budget.
• Fire Department - Station mix of personnel.
• Kroy machine versus computer program.
• Compliance with ADA.
• Dust control - can it be assessed or picked up as a
service charge.
• Overall the budget appears to be okay - some shifting
may be required.
` • PROPOSED 1993 GENERAL FUND BUDGET
SEPTEMBER 22, 1992
PAGE TWO
Staff is in the process of reviewing the items so additional information can be provided
to the City Council. Certain of the items such as the Mayor/City Council salaries require
specific direction if changes are to be pursued.
At the most recent City Council meeting, City Councilmember Pawlenty discussed the
concept of "right sizing" city government. As a result of that discussion, the City
Administrator was directed by the City Council to access additional information on right
sizing as a methodology for examining City services and the organization (personnel
compliment) that provides those services. The City Administrator has contacted Slavin,
Nevins and Associates and will comment further on his findings at the special City Council
work session.
The City Administrator has provided a further refinement to the general fund budget. The
net effect of those changes is to reduce the contingency account from $30,000 to
$15,700. The changes are due to numerous line item adjustments that were made to
capital expenditures, insurance and other accounts being finalized for the final budget
ratification.
• Although the purpose of the special work session is to discuss the plan B form of •
government and a review of the capital improvements program budget revisions for 1993
through 1997, information on the general fund budget is presented so that certain policy
considerations such as the "right sizing" study could be further examined.
City A inistrator
TLH/jeh
•
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