Loading...
11/05/1992 - City Council Special AGENDA SPECIAL CITY COUNCIL MEETING Eagan Municipal Center Building Thursday November 5, 1992 5:00 p.m. I. ROLL CALL & ADOPT AGENDA II. 1993-1997 C.I.P. III. OTHER BUSINESS IV. ADJOURNMENT MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: NOVEMBER 2, 1992 SUBJECT: SPECIAL CITY COUNCIL MEETING/THURSDAY, NOVEMBER 5, 1992 A special City Council meeting is scheduled for Thursday, November 5 at 5:00 p.m. for the purpose of considering the 1993-1997 capital improvements budget for Part I, General Government Facilities and Part II, Vehicles and Equipment, for 1993. For Council information, a copy of the draft is enclosed on pages 3 through _7 for your review. At the special City Council meeting on September 28, 1992, the City Council requested an expanded cost benefit analysis of the major categories of equipment within each department of Part II of the capital improvements program. The Department Heads were asked by the City Administrator in a memo dated September 30, 1992 to analyze big ticket items indivi- dually identifying the following: 1) Whether the equipment is new or replaces equipment; 2) If it is a replacement, discuss whether alternative types of service delivery, such as contracting,would be more cost effective and whether options to purchasing, such as leasing, would be cost effective; 3) If the equipment is new, differentiate between whether it is necessary to provide a new service or an expansion of an existing service;provide a brief background on the service or the conditions which require the expansion of service (for example, additional street miles require the addition of a snow plow) a) What benefits does the equipment provide? b) What cost savings or efficiencies does it provide? c) What critical needs would it meet? The City Administrator has the cost benefit analysis for equipment proposed by Police, Fire, Management Information, Public Works and Parks & Recreation. The only item to be considered by Community Development is a vehicle and there are no capital items under Finance or Administration for consideration. This information is enclosed and referenced as pages 1 through,2/. The City Administrator has coordinated information regarding a capital project for a recreational facility which is enclosed on pages..through Q. This information includes: 1) a letter from Mayor Egan to John Freeman, 2) a memo from the Director of Parks & Recreation regarding certain information requested by City Councilmember Awada and 3) a proposal entitled "Alternatives for Park and Recreational Development" prepared by representatives of the Eagan Hockey Association. Representatives of the Hockey Association will be present to make a formal presentation to the City Council regarding their proposal and financing alternatives for a recreational facility. If any member of the City Council would like additional information on any aspect of the CIP, feel free to contact the City Administrator at any time prior to Thursday. /S/ Thomas L. Hedges City Administrator ca. GENERAL GOVERNMENT FACILITIES PART I CIP Community Single Investment Family Project Title Fund pond Fund Total 1993 Land Acqu./Fire $ 100,000 Station #6 Municipal Center Site 500,000 Preparation Law Enf./Municipal Center Expansion 2.500.000 TOTAL 1993 $3,100,000 $3,100,000 1994 Fire Station #6 & Equipment 1,400,000 Ice Arena Facility & Outdoor Swimming Pool $ 500,000 $ 850.000 TOTAL 1994 $1,900,000 $ 850,000 $2,750,000 1995 None 1996 None 1997 None TOTAL $5,000,000 $ 850,000 $5,850,000 VEHICLES AND EQUIPMENT 1992 PART II CIP DEPARTMENT REQUESTS ADMIN: NONE DATA PROCESSING I 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 TOTAL $97,450 DEPARTMENT REQUESTS PAGE TWO FINANCE: NONE LEGAL: NONE COMMUNITY DEVELOPMENT: Portable Radios, Chargers 4,400 Vehicle - Inspections 14,000 TOTAL $18,400 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 Education Trailer - Fire Prevention $ 31,000 Gamma Goat - Equipment to DNR 8, 000 Replace Unit 7 - 4 Wheel Drive Pickup with 40,000 Portable Pump and Tank Hurst Tool (Rabbit) 3,200 Hurst Tool Cutter 9,700 TOTAL $91,900 V DEPARTMENT REQUESTS PAGE THREE PUB WIS/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 FOUR 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 1992 TOTAL PART II CIP $758,400 b. police department PATRICK J.GEAGAN Chief of Police KENNETH D.ASZMANN _city of eagan . Operations Captain 3830 PILOT KNOB ROAD THOMAS EGAN EAGAN, MINNESOTA 55122-1897 Mayor PHONE:(612)681-4700 TDD:(612)454.8535 PATRICIA AWADA FAX:(612)681-4738 PAMELA McCREA October 7, 1992 TIM PAWLENTY . THEODORE WACHTER TO: JON HOHENSTEIN, ASSISTANT TO CITY ADMINISTRATOR Council Members THOMAS HEDGES FROM: PAT GEAGAN, CHIEF OF POLICE CiittyAdmininstrator SUBJECT: COST BENEFIT ANALYSIS OF PART II POLICE DEPARiM � i it oVERBEKE AEOUEST N�� I. 20 Channel Digital Voice Logging System for Dispatch/911: This piece of equipment is a replacement for an existing system. It will save the Lead Dispatcher approximately 120 hours/year currently spent monitoring tapes, as well as save approximately 180 hours/year of Dispatchers doing daily maintenance. There have been lease opportunities for this equipment in the past, but we have generally found them to be more expensive in the long run. There have been no commitments made for this equipment to date. To my knowledge there is no alternative means for this particular service delivery while improving staff efficiency. II. M.D.T. Software Package: As part of the original purchase of Mobile Digital Terminals for the Squad Cars, $10,000 was included to hook into the Police Department Data Banks through LOGIS. LOGIS originally told us that would be possible. We included it in the 1992 Budget and it had been approved, but it wasn't used and we were unable to carry it over. LOGIS has informed us this hookup will be possible in July, 1993. It is extremely important for officers to be able to access Police Department Data Banks and Information Systems. Without that information, our M.D.T. System loses approximately 50% to 75% of its operational capability. III. Portable Radios: As I indicated in the submitted Police Department Budget, we are requesting six portable radios. Three are replacement for older King Radios that are beginning to create maintenance problems, which could make them unreliable. Three of the radios are for people we have hired in 1992 and 1993. This is a piece of equipment that is needed, by an officer on the street, to provide communications to the Dispatch Center when they are out on calls and away from their car radio. Leasing is not an option for this type equipment. THE LONE OA K TREE . . .TH g ESYMBOLOF NGTH AND GROWTH IN OUR COMMUNITY Equal Opportunity/Affirmative Action Employer CITY COUNCIL REQUEST FOR COST BENEFIT ANALYSIS pr PART II CIP REQUEST Page 2 IV. Two Full-Size Patrol Squads and Three Mid-Size Unmarked Investigator Cars: One full-size car is a replacement for a Squad Car with over 100, 000 miles. The other marked full-size car is needed for additional officers who have been hired in 1992 and 1993. All three of the mid-size Investigator Squads will replace vehicles with more than 100,000 miles. We have researched leasing Squad Cars, in the past, and found it is not cost effective. V. Utility Step Van: ° This unit is needed due to our Tactical Team being called out on a regular basis. We have used them as often as five times, in two days, for high risk warrants/arrest entries, barricaded subjects and suicide attempts. The South Metro Drug Task Force usually asks for our Team to clear a residence, with drug dealers, before they enter for officer's safety. The team's equipment is scattered and inhibits the team's quick response that this vehicle would provide. We currently have to locate Squad Cars and bring them to the Police Department and load the team's equipment. In some cases, this equipment does not fit the Squad Car and officers have to use their own vans or pickups. This Team is also regularly used to assist the I.R.S. ,D.E.A. , Bloomington Narcotics and others on Felony Arrest Warrants within our community. The way this vehicle is used, it should last for many years and not accumulate too many miles. It would not be cost effective to lease it. Patrick J. Geagan Chief of Police PJG:lb • MEMO _city of eagan DATE: October 13, 1992 TO: Assistant to the City Administrator Hohenstein FROM: Fire Chief Southorn SUBJECT: Cost Benefit Analysis-1993 Part II CIP Request 1. Fire Education Trailer is a mock up of a single family residence designed to teach adults and children what to do in a fire situation. Being told what to do in a fire does not bring home the message, being able to "experience" some of the sensations of a fire will make a lasting impression. This trailer is a self contained, two story safety/escape "house" that has a living room, bedroom, and kitchen. It is also equipped with two way mirrors, video area, a heated door to simulate fire on the opposite side, theatrical (harmless) smoke, a balcony with escape ladder and other fire features. This unit can be pulled by a standard pickup truck. This items is a new piece of equipment. 2. The Gamma Goat is a six wheel all terrain vehicle that will be utilized for "off road" wildfire situations or for transporting equipment and personnel into areas unaccessible to normal four wheel drive vehicles.This equipment was received from the DNR expressly to address off road situations. The agreement with the DNR requires us to upgrade the vehicle and equip it to certain specifications. Minimum requirements include construction of a roll cage around the operator's compartment, installation of seat belts, warning lights and sirens. Also required are a tank (up to 200 gallons), a pump and associated equipment. Funding for these upgrades was approved in last year's CIP. Because of emergency replacement of a breathing air compressor, those funds were diverted. 3. Replacement of Unit 7. Unit 7 is a 1971 Ford 3/4 ton four wheel drive pickup truck,which when purchased,was designated as a combination light rescue truck and as a grass fire truck. The vehicle is equipped with 200 /0 October 13, 1992 • Page Two gallons of water, a 250 GPM power take off driven pump and utility cabinets along both sides of the body. Unfortunately, this vehicle is grossly undersized for the equipment it carries. In the last few years we have removed all of the rescue equipment from the vehicle in an effort to bring the weight of the truck down to a manageable level for the braking system. Even with this reduction, the braking capability of the vehicle is marginal. A few years ago, numerous areas of rust were repaired and the pump has been repaired various times also. This restoration has maintained a presentable looking truck but has not done anything to increase the driveability or safety of the vehicle. An added factor in our decision to replace this truck is the need to replace all four tires. The board felt we would benefit from a total replacement rather than committing more funds into a truck that does not meet our requirements. The replacement vehicle will be a full one-ton chassis, with a "drop in" module of a tank and pump. This configuration with the larger chassis will adequately and safely meet our needs. This vehicle will continue to serve two needs of the department. First it will function as a grass vehicle and secondly this vehicle is responsible for pulling our water rescue boat to an incident. 4 & 5. Hurst Tool Appliances - These are new appliances which will be used in conjunction with our existing Hurst Tool power plant and spreader jaws. Today, with our existing equipment, we are constantly forced to suspend rescue/extrication operations to change from cutters to the spreader jaws costing valuable time. The requested cutter is a separate unit which is operated independently of the spreader jaws. This allows us to perform two operations simultaneously rather than having to stop and change. The "rabbit" is a ram type of device that is used to push the sides of a vehicle out or to push a dashboard up off a trapped victim. This is required due to the construction of today's front wheel drive vehicles. Our old procedures no longer work with the new auto design. KRS/kmk chiefs\mhoenstn.krs // October 14, 1992 TO: Tom Hedges, City Administrator FROM: Eristi Morast, MIS Coordinator SUBJECT: CIP Budget Information By their nature, governments must manage large numbers of people, properties, employees and programs. In the age of computers, our city has had to find new ways to manage constantly increasing amounts of data without the luxury of an equivalently increasing tax revenue base. As the MIS Coordinator for the City of Eagan, it is my responsibility to recommend and provide the necessary technological tools so that the City staff can provide services and respond to the public promptly and accurately. The following is information regarding the capital improvement items requested for 1993: PERSONAL COMPUTERS (PC's) The request is for nine personal computers. Eight of these are additional and one is a replacement. The computers are necessary in order to process information and provide service in a timely and accurate manner. Currently, staff time is being lost because staff members either process information by hand which is much slower and less accurate or have to either wait for access to a computer or interrupt another user. Because of advancing technology, the new computers will be larger and faster. The MIS Coordinator assigns the larger and faster models to those locations where more speed and larger memories and capabilities are most needed. Existing computers are then reassigned to other locations where size and speed are not as necessary. Many of the additional computers for 1993 will be shared by more than one staff member. PRINTERS The request is for two additional laser printers. Currently, the City utilizes both laser printers and dot matrix printers. The type of printer at each location is determined by the needs of the users who are connected to the printers. Laser printers are utilized in those areas where speed and quality are important. In addition, staff members are able to produce camera ready material which in the past had to be contracted out at additional time and expense. All laser printers at the City are shared by more than one user. In the two locations for which the two printers are requested for 1993, there are so many computers attached to each printer that users must wait considerable periods of time in order to print material. 1 1 NETWORK The end result of networking will be to both improve efficiency and save money at the City of Eagan. Eventually, all City facilities will have Local Area Networks (LAN) and will be connected to a Wide Area Network (WAN) . The wide area network will connect the facilities to each other and to LOGIS, the City's mainframe system. The proposal for 1993 is only for a pilot Local Area Network at the Maintenance Facility which will be for that facility only, but will also connect the facility to LOGIS. The Maintenance Facility is ideal for the installation of our beginning network because of the type of programs used and the amount of peripherals that will be connected to the network. Networking will allow computers to share one software package instead of buying separate packages for each computer. It will also allow us to purchase and use existing software packages which we must now pay LOGIS to develop and then pay ongoing user charges to utilize the programs. We will be able to save money not only on software but on future hardware purchases. Efficiency will be improved because access to information and printers will be available to all computers and not just on the one computer on which a program is currently installed. SOFTWARE Software purchased for 1993 will be for the new personal computers. Upgrades will be purchased where possible eliminating the need to purchase whole new programs at a greater cost. Software which is necessary but only used occasionally be different users will be installed only on the shared computer in data processing and users will access it there rather than purchasing separate software packages for each user. CONCLUSION More detailed explanations of each CIP item were forwarded to you with the complete budget information packet. If you need further information, please contact me. MIS oordinator 2 /3 MEMO TO: JON HOHENSTEIN, ASSISTANT TO THE CITY ADMINISTRATOR FROM: THOMAS A. COLBERT, DIRECTOR OF PUBLIC WORKS DATE: OCTOBER 16, 1992 SUBJECT: C.I.P. PART II COST - BENEFIT ANALYSIS On September 28th,the City Council requested additional information regarding the major categories of equipment proposed for Part II of the Capital Improvements Program. Your memo of September 30th requested information to respond to this request. The following is that information. STREET DIVISION (22) 2.500 GALLON TANK AND SPRAY BAR ($6.500.00) This is a new acquisition to allow the addition of liquid calcium chloride to our salt and sand mixture for more effective ice control at lower temperatures. This is a permanent installation and is not adaptable to leasing or contractual services. CRACK ROUTER ($6.500.00) This is a replacement for a six year old router which will be kept as a backup unit to allow uninterrupted progression of crack sealing by eliminating down time. Due to the seasonal (winter) application fill-in in addition to scheduled work programs, it is not conducive to leasing nor a contractual service due to the labor intensive and technical expertise required for high quality pavement management. HOT AIR BLOWER ($2.800.00) This is a replacement for an existing four year old unit which will be kept as a spare back- up and/or supplementary unit to minimize down time to the crack sealing pavement management program. Similar to the crack router, it is a high maintenance piece of equipment that is not available for leasing on a economical basis. Similarly, the only contractual service available would be through the hiring of seasonal temporary personnel which currently is being done. 4 CUBIC YARD SNOW BUCKET ($6.000.00) This is a new acquisition of an implement for efficiency purposes for our snow and ice control program. It is a high capacity bucket allowing quick filling of our sanding units minimizing down time. / 1 • PAGE TWO OCTOBER 16, 1992 AIRLESS PAINT SPRAYER AND TRAILER ($7,500.00) This is a replacement for a two year old paint sprayer which used poly-chlorinated rubber based paint. New environmental laws governing hazardous waste make this unit impractical. A new airless striper will use environmentally sensitive latex paint. Due to its intermittent sporadic use, it is not conducive to leasing. Stop bars, pedestrian crosswalks, parking stalls, etc. type striping is not practical on a contractual basis due to mobilization, travel time and labor intensity aspects of this maintenance operation. HYDRAULIC END GATE ($2.200.00) This is a new acquisition implement to be attached to a one ton truck to provide better efficiency and safety in the loading of castings, voting booths, barricades, and similar type heavy pieces of equipment. Leasing or contractual service does not apply. TRUCK MOUNTED DISTRIBUTOR-TACK COAT APPLICATOR ($40,000.00) This is a replacement for an existing 500 gallon trailer mounted distributor (Unit #135). It is being purchased to increase efficiency due to its larger capacity and increase mobility/maneuverability. It requires one less maintenance personnel to operate and does not have to be emptied and cleaned out at the end of each work day. Again, due to the intermittent sporadic use, it is not conducive to leasing. Also, due to the numerous mobilizations and travel time, it is not cost effective to contract this work out without effecting schedule flexibility and efficiency. SKID STEER LOADER ($25.000.00) This is a new acquisition to be used primarily for small grading, post hole digging, loading, erosion cleanup, etc. type maintenance improvements. With an identical request by the Parks Department for a similar piece of equipment, one machine would be adequate if shared between both departments. This type of piece of equipment is available on a lease basis. Due to the many diverse and miscellaneous type uses for this piece of equipment, it is not adaptable to a contractual service. ONE TON TRUCK WITH PLOW ($30.000.00) This vehicle would replace Unit #117 which is a 1984 one ton vehicle which is recommended by our Equipment Maintenance Division based on past maintenance expenses, resale value and reliability requirements for cul-de-sac snow and ice control. This piece of equipment is available through a lease program. Although this is a multi- PAGE THREE OCTOBER 16, 1992 purpose year round vehicle, its use as a cul-de-sac route vehicle for snow and ice control could be handled through a contractual service. However, its other seasonal uses would still require the use of this vehicle. It could be retained in the fleet for 1-3 more years. However, the City would continue to incur additional maintenance expenses with continued decrease in resale value. FOUR DOOR SEDAN ($13.500.00) This is a replacement for Vehicle #109 which is a six year old passenger vehicle used by the Superintendent of Streets/Equipment. With a deteriorating body and anticipated future increase maintenance requirements,the Chief Mechanic recommends replacement to maximize resale value and minimize future maintenance expenditures. This vehicle is available through a lease program. Contractual services not applicable. SINGLE AXLE DUMP TRUCK WITH PLOW AND WING ($87,000.00) This is a replacement for Vehicle #110 which is a 8 year old dump truck. Unit #110 will be outfitted with the proposed distributor/tack coat applicator discussed previously. While this is an older vehicle, it still has value to the City if its mileage is reduced through its conversion to a tack coat applicator and backup snow plow. Again, acquisition of this dump truck is available through a lease program. Due to the numerous miscellaneous and varied maintenance activities, it does not provide a service that is conducive to contractual programs. CENTRAL SERVICE MAINTENANCE DIVISION (24) HIGH BAY METAL HALIDE LIGHT FIXTURES ($4.200.00) This is a new acquisition of 12 light fixtures in the southeast corner of the vehicle storage facility as necessary to provide an adequate light level for street sign assembly and maintenance. This area is also used for rough carpentry, woodworking, assembly, mechanical repairs and sign maintenance requiring higher levels of lighting than necessary for vehicle storage. This acquisition is not adaptable to leasing nor contractual service. .LECTRONIC LEAK DETECTION/FUEL TANKS ($15.000.00) This system is mandated by State and Federal environmental laws which must be completed by December 1993. It is not conducive to leasing nor contractual services. /4 PAGE FOUR OCTOBER 16, 1992 NEW TELEPHONE SYSTEM ($10.000.00) With the recent conversion of the telephone system at City Hall, the Central Maintenance Facility system needs to be replaced with one that is compatible to maintain reliable and efficient communications between these two centers. This is not available for a lease purchase nor contractual service program. The LaserJet Printer ($1,500.00), Kroy Lettering Machine ($700.00) and hydraulic hose crimper ($3,000.00) can be removed from the Part II C.I.P. due to the fact that it was an inadvertent duplicative listing of the capital contained in the regular budget submittal. The analysis of leasing versus direct purchase should best be addressed by the Finance Department. However, while it would ensure that pieces of equipment are replaced within a specified timeframe, it normally results in a greater cost with variable resale value while it does not save or reduce on the maintenance requirements. If any additional information is necessary or desired, please let me know. Respectfully submitted, filUrtXtr T m Colbert, as A. Co bert, Director of Public Works cc: Arnie Erhart, Superintendent of Streets/Equipment TAC/jf • /7 O MEMORANDUM TO: JON HOHENSTEIN, ASSISTANT TO THE CITY ADMINISTRATOR FROM: KEN VRAA, DIRECTOR OF PARKS AND RECREATION DATE: OCTOBER 22, 1992 RE: CIP PART II COST ANALYSIS ======NIMMIIIDIPWIMMINN■MININIMNIONWINNI= You have requested cost analysis information concerning certain capital improvement items that were requested in the 1993 budget. The following is an attempt to respond and provide you with that additional information. GROUNDSMASTERS REPLACEMENTS Replacement of two groundsmasters with attachments. The existing units are currently identified as Unit 335 and 336. These two pieces of equipment have a dual function. In the summer they are used for mowing while in the winter they are used primarily for snow removal from ice skating surfaces. Because the units are used for dual functions, it is difficult to imagine that these two services would be better performed through an outside agency or through contracting. This is a possibility, but somewhat remote, given the number of skating surfaces that are required to be maintained in the winter and the schedule of the snow removal operation. Both must be coordinated with program elements as well as the resurfacing (flooding) of these ice surfaces. Contracting out for mowing would not relieve the city of a need to purchase these pieces of equipment for winter use. It would simply mean that these pieces of equipment would have a longer life span if used strictly in the winter and allowed to sit idle in the summer time. As an alternative to purchasing,leasing may be a possibility. The arguments for and against leasing for these two units are similar to that for any piece of equipment. GROUNDSMASTER REPLACEMENT UNITS 337 AND 338 Similar to the previous units, these two units were purchased in 1987. They have been used somewhat more than other units groundsmaster because of their assignment to parks mowing on both the day and evening work crews. Both units are diesel powered, two-wheel drive "prime movers"equipped with 72"front mount,side-discharge mowing decks. Because of the extensive use in terms of the number of hours of operation, as well as the terrain assigned to these units, they are showing extensive wear, both in terms of the decks, transmissions and rear-ends. /y Like the previous two units, they too, could be purchased or simply leased. The work could be contracted out to a provider of said services, if a consolidation of mowing routes is made. Although it has been some time since this department researched cost for contract mowing, a comparison was made several years ago between contract mowing and "internal" mowing of the City Hall-Library site. In this scenario, a private mowing/landscaping firm was contacted to provide a bid cost for the grounds maintenance at the Library-City Hall site, which included mowing, trimming and other turf maintenance practices (quite frankly, I forgot if it included the aerification or just fertilization) as part of the contract work. Staff costed the Parks and Recreation Department's charges do this same work. When compared, staff found that even with an allowance for depreciation of equipment, it was cheaper for the city staff to do the work than if it was to contract out. I would suspect the differential is even higher today given the fact that the City Hall and Library site is currently being mowed with the 580D mower, which has greater efficiency. Now only small hand mowers and the groundsmasters are used for trimming rather than overall mowing. Finally, since the City is utilizing seasonals and part-time employees to do this mowing, which is essentially what landscape firms are doing, it seems that there would be very little differential in cost of man power between the two. Major differentials would be in the profit margin necessary for the private firm to operate and whether the supervision that we need to provide as part of the overall maintenance program is less/more than with contract mowing. Therefore,based on past analysis,it is this department's impression that it would be cheaper for the City to continue the current operations, replacing these pieces of equipment rather than to look for contract maintenance. In addition, the city has also acquired several new sites which are the responsibilities of these pieces of mowing equipment to handle. 1991-92 the police firing range was added, trimming at Wescott Station Park, and Captain Dodd Park. It is probable that Manor Lake Park will also be added in 1993, assuming a seeding operation yet this year or early 1993. REPLACEMENT OF UNIT 307, 3/4 TON PICKUP WITH SNOWPLOW As indicated, this is a replacement unit and used primarily for Park's maintenance activities. Equipped with a plow, it is used in the winter time for snow removal operations on the ice skating surfaces and/or cul-de-sacs for streets maintenance. Because of its use both summer and winter, it is not likely that contracting the service could be done. It is a multi-use vehicle, ie. used for more than one or two tasks, it would be almost impossible to segregate out specific contracting work that this truck might normally be assigned to. As before, it is likely that this unit could be leased rather than purchased but the benefits of such is up to those who are more astute in the cost benefits of leasing vs. purchasing. /7 SKIDSTER/LOADER This is a new unit that is being proposed for addition to the fleet; this is not a replacement item. The new skidster would probably be dedicated to the Forestry division. There is an ongoing need for this type of equipment for preparing planting sites, unloading stock from trucks, digging planting holes, moving large trees on-site, performing site restoration and mulching activities. Currently, the Forestry division must coordinate the borrowing of equipment from the Parks division or Streets division to accomplish these tasks. This is almost an impossibility because of the work load of the Streets department and Parks division. Because of the current skidster loader's use in the Parks department,the department already owns necessary implements such as a bucket, auger, tree digger and landscape planer; therefore only the prime mover would be needed. It is not feasible to contract all of the work out that this specific unit does without contracting out all of the work of the Forestry division. Therefore, it is my conclusion that contracting would not be an alternative for this piece of equipment. Leasing, however, is a feasible alternative. It is likely that winter use of this equipment, ie. from December 15 to March 1, is relatively little and it would be possible to lease this piece of equipment for 9 months extra time. Please recognize that there are other needs within the Streets division and Parks division that might also have use for this equipment in the winter time. For example, heavy snowfalls might mean that the skidster/bobcat is used for clearing in areas where large front-end loaders are unable to such as clean-up operations around buildings, etc. Therefore, one must take a closer examination of the lease option beyond just the nine months. CEMENT MIXER This is a replacement unit which was first acquired in 1985. This new unit, however, will be larger than the unit it intends to replace. This unit is being secured because it is more efficient than other options when concrete is necessary for small tasks. It is certainly more cost efficient than ordering from a ready-mix firm. Ready-mix firms make additional charges for small loads as well as for "wait time". Therefore, this unit is much more cost effective when we are looking at projects requiring from 1 to 2 yards of cement. This is frequently the case with sign posts installation, waste container pads, bench installation, etc. Staff does not believe that leasing would be effective at all for this type of equipment nor would renting be efficient. If the unit was to be used only once or twice a year, renting might be a possibility. However, this unit is used far too frequently to consider renting as an option. e:::2a • ,SINGLE-AXLE TRAILER REPLACEMENT It is proposed to replace a trailer which was purchased for the sole purpose of transporting a single groundsmaster. It has a pivoting ramp and cannot be used for any other piece of equipment. With the growth of the Parks and Recreation system and the changes in the mowing program which consists of two groundsmasters assigned to a mowing route, this trailer is seldom used. Replacement with a conventional, single-axle trailer would provide for easier transporting of the groundsmaster at times this is necessary and for other pieces of equipment ranging from utility truckster, to stripers, sod cutters, etc. The investment could be much better utilized. Staff has looked at the possible "conversion" of the existing unit. However, because of its pivoting design, the unit would require far too many and expensive modifications to make it serviceable. Consequently, complete replacement is much more cost-effective than modification. Obviously, contracting out the work of this trailer is not feasible and leasing does not appear to be a logical answer, given the long duration of its intended use. TWIN AXLE TRAILER/GROUNDSMASTER REPLACEMENT The department is proposing to replace an existing trailer,which is 15 years old. Although it is still a serviceable unit, the design of the groundsmasters for which this trailer is used, has changed since the time that this unit was originally purchased. Loading and off-loading of the newer model GM is difficult and cumbersome when attachments are already secured to the prime mover. This trailer is used during the mowing season for daily mowing routes and in the winter months for rinks maintenance routes. The heavy use has taken its toll on the decking, electrical components and the frame of the trailer. More importantly, the request to replace is because of the additional time it takes to load and off-load the groundsmasters; as well as the safety hazards inherent in the current trailer and the "mismatching" between trailer and equipment. Obviously, neither contracting nor leasing seems to be a feasible option for this piece of equipment. The department has also requested other items of a capital nature the 1993 budget. However, because of the relatively minor nature and their association to the general work and recreational programs; I don't believe I have any additional information other than that which was already included in the budget submission. Should you find it necessary to still review the benefits of these items, I would be happy to provide you with additional information pertaining to them. KV/dj DIHOHENBUD.MEM • f tir r' 1 city of eagan MUNICIPAL CENTER MAINTENANCE FACILITY THOMAS EGAN 3830 PILOT KNOB ROAD 3501 COACHMAN POINT Mayor EAGAN,MINNESOTA 55122-1897 EAGAN, MINNESOTA 55122 PHONE:(612)681-4600 PHONE:(612)681.4300 PATRICIA AWADA FAX:(612)681-4612 FAX:(612)681-4360 PAMELA McCREA TDD:(612)454-8535 TIM PAWLENTY THEODORE WACHTER Council Members THOMAS HEDGES City Admininstrator October 26, 1992 EUGENE VAN OVERBEKE City Clerk JOHN FREEMAN 3772 BAYBERRY LN EAGAN MN 55123 Re: Ice Arena Funding Alternatives Dear John: I want to apologize for the high level of frustration that was expressed at our City Council workshop session held on September 28. The City Council has never rescinded its commitment to a recreational facility, specifically an ice arena. We are part-time and have the entrusted responsibility of setting policy on all legislative matters concerning the City. It is imperative that we create a community trust and continue our partnership in exploring alternatives for the construction of an ice arena, a facility that has been identified in the City's five (5) year capital improvements program. I have directed our City Administrator to compile information on funding alternatives for ice , arenas by reviewing any special financing alternatives that might be available to the City. That report has been completed and I am enclosing a copy of that information which includes: 1) ice arena funding alternatives and 2) funding alternatives that were used by six (6) governmental entities for the financing of recreational facilities. I have made this information available to the City Council, which is scheduled to further consider the recreational facility, more specifically ice arena, as a part of its five (5) year CIP, at a special City Council meeting to be held at 5:00 p.m. on Thursday, November 5. I appreciate the fact that your committee has met with each of the City Councilmembers to share yet another concept for raising revenues to fund this kind of a project. Although I strongly support an ice arena facility, I must honor a clear message from THE LONE OAK TREE . . . THE SYMBOL OF STRENGTH AND GROWTH IN OUR COMMUNITY Equal Opportunity/Affirmative Action Employer JOHN FREEMAN OCTOBER 26, 1992 PAGE TWO the voters that property tax dollars not be used for the construction of such a facility. We need to be cautious about any revenue enhancements that are mandatory to all property owners under the guise of a user fee or some other type of resource. I approach this challenge with enthusiasm and commitment. S. �r ly, / Thomas Egan Mayor Enclosure TE/vmd 02 3 M E M O R A N D U M TO: CITY ADMINISTRATOR HEDGES FROM: ASSISTANT TO THE CITY ADMINISTRATOR HOHENSTEIN DATE: OCTOBER 20, 1992 SUBJECT: ADDITIONAL INFORMATION - ICE ARENA FUNDING ALTERNATIVES Attached is a memorandum from Finance Director VanOverbeke relative to further funding alternatives for municipal ice arenas. You will recall that similar research was done with the original community center referendum and again last year in support of the Multi-purpose Recreational Facility Task Force's review of alternatives. From among the alternatives, it was the conclusion of that group that the best approach for the City at that time was an outdoor pool and ice arena facility. It also was determined that a combination of a Community Investment Fund allocation and the proceeds of a referendum would be the best means of putting the issue before the public while writing down its costs in the interests of supporting the community's youth. With the defeat of that referendum, the question has again been raised as to whether other means are available for accomplishing all or part of the same purpose. Proponents of revisiting the issue insist that those who opposed the referendum were voting against raising taxes and not against the facility. While there is no empiracal evidence to support or refute this claim, staff was directed to again review approaches taken by other cities. In general, the non-referendum approaches appear to fall in four categories: 1. Port Authority or HRA Bonding - These agencies may issue debt without bond referenda and may identify resources from a number of sources to cover the cost of the bonds. In each case, however, if the debt service is not met, the burden becomes an obligation of the authority and, by extension, the City. 2. Athletic Association Contributions - While this alternative was discussed for the pool arena project, it was concluded that reference to such contributions in the referendum itself would be a violation of election laws. Where no election is to be held, such contributions can be an integral consideration in the financial packaging of a proposal. It appears that most athletic associations raise funds for their portion of projects through pull-tabs and private/corporate contributions. 3. School District Participation - As a primary user of a facility, some school districts partner with cities and athletic associations to support such facilities. With some exceptions, the typical contribution has been highly discounted land which seems unnecessary given the availability of City-owned property. C; In addition, the school district would likely expect some level of consideration in the form of ice time which would reduce the revenue capacity of a facility. An added consideration has been the City's past efforts to ensure that any such facility be a community-wide asset and not one captured by one school district or another. Certainly, it is anticipated that the schools would be users of a facility, but a true equity partnership may be inappropriate. 4. Excess TIF Proceeds - In cities which agressively used tax increment financing for large portions of their industrial development, there are often excess bond funds which may Councils may choose to apply to other community projects. Chaska and Maplewood are examples of communities which have large portions of their industrial parks included within old law TIF districts. Such communities tend to use the proceeds as inducements to some business prospects and for general improvements in industrial areas. Since the proceeds are not necessarily directly tied to individual projects or improvements and since not all development receives special assistance from the proceeds, excess funds are available for other uses. Eagan has been extremely conservative in its use of this tool in the past and, as a consequence, does not have excess reserves of this kind. In addition to the philosophical tendency of the community, Tax Increment law changes make it impossible to create such large districts or build up such large reserves in the present environment. As noted in the Finance Director's memorandum, the alternatives available reflect policy decisions of the respective communities rather than any fundamentally unique forms of financing. The means of financing which do not require referenda raise issues of their own. The fundamental questions are to define how much of a quality recreation or ice facility's costs can be covered by operating revenues, what portion must be covered by other resources, how those resources will be raised and how certain the City can be of those resources in the long term? If you have any additional questions relative to this item please let Gene or me know. i i Arr riMP.,....A.!Arh, -dot- As irt to o the City dministrator c:P -L-C F �AcS t` )11 MEMO —city of eagan TO: ASSISTANT TO THE CITY ADMINISTRATOR HOHENSTEIN FROM: FINANCE DIRECTOR/CITY CLERK VANOVERBEKE DATE: OCTOBER 15, 1992 SUBJECT: RESEARCH ON FUNDING ALTERNATIVES USED BY SIX GOVERNMENTAL ENTITIES FOR THE FINANCING OF RECREATIONAL FACILITIES At your request, I have contacted six (6) additional governmental entities to review funding alternatives that are being considered or used in financing recreational facilities. I talked to the Finance Directors in the Cities of Rosemount, Lakeville, Orono, Maplewood and Prior Lake. I also talked to the City of Circle Pines and was referred to the arena manager regarding the Centennial facility. The type of questioning was to same as it had been in my earlier research with Plymouth, Minnetonka, Shoreview, Blaine and Chaska and was basically as follows: 1) What kind of community center/ice arena does your community have? 2) How is it being financed? (eg. referendum) 3) How is the cash flow for operations, debt service and improvements financed? The following is a summary of information I received with these contacts: Rosemount The ice facility in Rosemount is an add-on to the National Guard Armory being built in the community. In February of 1991, the citizens voted on a three part referendum relating to the armory. The first two components of the referendum, which included upgrading the mess hall to a banquet facility and upgrading the theatre to an auditorium, passed in the referendum. The third component, that being an ice arena, failed. After the failure of this component on the referendum, the hockey boosters continued to promote construction of the ice arena in conjunction with the armory project. The City Council has now concurred and the project is moving forward. The following is a general list of pertinent information as I understand it: • 1. The ice arena should be built now and not later. 2. The unit will be self-supporting, including debt service, but excluding depreciation. 3. The booster numbers (not City) were used in making the projections. 4. The projections are based on full maximization of ice time (9 months) and some dry floor activities. 5. Both revenues and expenditures are projected to increase at 3% per year. 6. The City was granted a Port Authority through special legislation related to the potential clean up at the University site. 7. The Port Authority is issuing (approved this week) $2,360,000 of general obligation municipal building bonds for the arena project. 8. Approximately$2,127,000 of the bond proceeds is to be used for arena construction and the boosters are putting in some equipment and labor estimated at $200,000. 9. Bids have been accepted on the project. The ice arena is a priority and is scheduled to be open in November of 1993. The total facility is to be open in March 1994. 10. The Port Authority has taxing authority to pay debt service if necessary. 11. Certain subsidies which were considered early in the process are not in the final proposal. 12. The HRA and School District are not involved in the project, although the School District is a potential customer. Lakeville The City of Lakeville has worked with the Lakeville Community Corporation, Lakeville Hockey Association and Independent School District #194 to put together a memo of understanding which sets forth the framework for construction, financing and operation of an ice arena. The School District is donating the land for the facility to the City who in turn is transferring title to the Lakeville HRA. The HRA has sold $1,375,000 of bonds ($1,190,534 estimated to be available for construction) to build the facility. The City is subleasing the building to the Lakeville Community Corporation who will be responsible for the overall operation of the facility. The City will make lease payments to provide for the repayment of the bonds. The City will meet its lease payments based on the receipt of approximately $55,000 per year from the Lakeville Community Corporation (estimated to be available from operations) and $70,000 per year from the Lakeville Hockey Association pull tab revenues. The $1.2 million of bond proceeds will be supplemented with approximately $500,000 of contributions of cash, materials or services from the Lakeville Community Corporation (due no later than October 15, 1993) and $140,000 from pull tab operations from the Lakeville Hockey Association (due no later than February of 1994). Unless the $500,000 is collected, the bond proceeds will not be expended for construction and the bonds will be called on October 1, 1994. The total estimated construction cost is therefore $1.8 million. Construction of the facility is anticipated to be completed by August 1, 1994. a 7 The size of the bond issue was determined by the level of debt service that could be supported and was based on a detailed operating budget. Certain aspects of this facility, such as a grass parking area, may not be acceptable in every community. Orono The City of Orono is not involved in the proposal at this time other than to process the development application if it materializes. According to the Zoning Administrator, there is a sketch plan for a $2.5 million multi-sports facility which is being proposed entirely by the boosters. There is no school district involvement either except they sold or are selling the land to the boosters. I believe it was a favorable price, but contingent upon this facility being built. It is my understanding that special legislation was passed in the last session exempting the proposed facility (requires non-profit and hockey) from real estate taxes. The hockey boosters seem to have a substantial revenue source from pull tabs. I don't believe it will be possible to get much detailed information on this proposal unless someone can deal directly with the boosters. Maplewood Maplewood is building a$12.3 million, 86,000 square foot community center including the following sections: 1. Performing Arts (theatre) 2. Two gymnasiums with an elevated running track 3. Pool area a) Lap pool b) Leisure pool c) Water slide d) Whirlpool 4. Banquet/meeting rooms/kitchen on top floor next to the theatre - exercise/fitness room on the bottom floor. There is no ice proposed in this facility. Maplewood is currently served by two Ramsey County arenas, one in Maplewood and one in White Bear Lake. The City is not involved in either arena. The financing for the community center is being provided by tax increment financing funds on hand and TIF general obligation backed revenue bonds. Debt service is to be provided through TIF and property taxes. No referendum was held as a legal opinion said it was not permissible because of the TIF involvement. Decision Resources completed two surveys in the community, one in 1989 and one in September of 1992, which indicated that the citizens were generally in favor of the project. Components of the facility have been designed so that user fees are expected to cover the cost of operations. • Circle Pines/Blaine/Centennial This facility is frequently referred to as the Centennial Arena, I believe, and is part of Independent School District #12. The facility was constructed for approximately $1.5 million of which $300,000 is donations and volunteer labor. The School District owns the facility while it is operated by Centennial Youth Hockey. Anoka County and Blaine Youth Hockey also each contributed $300,000 toward construction costs. The School District put in some money and included additional funds in a referendum. Architects on the project were also working on an addition to a junior high and a new elementary school and it appears that the usual full costs were not necessarily charged to the arena. It is projected that the arena will break even; all prime time ice time is sold. Indoor soccer is projected for March, April and May. The arena manager, whom I was talking to, was not real clear on where operating subsidies, if necessary,and capital improvements would come from, but expected it would be the School District. Prior Lake Prior Lake has no proposal for any ice at this time. Work is progressing on a park bond referendum and ice is not a priority in that list at this time. The Native American community has announced that they are building a community center to give something back to the community. This would be in the area of the Mystic Lake Casino. The site is actually in Shakopee and the scope of the project is not known to the individual I was talking with. Summary There is really nothing new with the funding on any of these projects. It seems to be a matter of deciding what all parties are willing to agree to and then proceeding. There are a number of places where money can be borrowed and a number of schemes whereby it can be paid back. The questions remain the same, how much and who and with or without a successful referendum. Technically and financially, any of the alternatives are feasible, provided the City Council arrives at public policy conclusions which support the preferred approach. Please advise if any additional information would be helpful. Fina v Clerk EJV/vmd MEMORANDUM TO: TOM HEDGES, CITY ADMINISTRATOR HONORABLE MAYOR AND CITY COUNCIL FROM: KEN VRAA, DIRECTOR OF PARKS AND RECREATION DATE: OCTOBER 27, 1992 RE: REQUESTED INFORMATION; ICE ARENA Council Member, Pat Awada, requested confirmation of cost numbers pertaining to the past bond referendum for the ice arena/swimming pool. The pool/arena project costs were estimated at $4.6 million of which $2.5 was estimated as the ice arena construction cost. $1,350,000.00 was to come from the city investment's fund. $500,000.00 of this amount was deemed necessary for providing site grading and utilities at the Municipal Center site; the remaining amount came from the single family bond fund. During the course of my discussion with Council Member Awada, it was suggested that council members might be interested in taking a visit to the Centennial Ice Arena, located in Circle Pines. This relatively new facility, open less than a year,was built at an estimated cost of $1.6 million and represents the lowest cost and yet reasonably attractive facilities built within the metropolitan area in the last several years. Volunteer effort has been used to help construct this facility. I would be happy to coordinate a trip to visit this facility if members of the council are interested in seeing the facility and in seeking additional information pertaining to the cost and the scope of this arena project. I would also suggest that the council consider leaving for this facility no later than 4:00 p.m. in order to avoid any traffic problems. Let me know what date is agreeable. Mayor Egan has also requested from staff, additional information as to the financing of various other arena facilities that have been constructed in recent years. I believe that information is being collected now and should be available in the very near future. If there is additional information I can provide, please feel free to contact me. KV/dj DIARENAMAYMEM 30 • ALTERNATIVES FOR PARK AND RECREATIONAL DEVELOPMENT 3/ WHY ARE WE HERE? WE ARE HERE FOR OUR GREATEST RESOURCE --- THE CHILDREN OF EAGAN. 30Z LOOK AT THE NUMBERS 1989 - 1992 PER ANNUM GROWTH EAA BASEBALL 22.5% EHA HOCKEY 17.0% EAA SOCCER 12.4% EAA SOFTBALL 29.3% Source: Eagan Athletic Association Eagan Hockey Association 33 ACTION PLAN CREATED COMMITTEE AUGUST REVIEWED THE CITY'S CIP PLAN AUGUST MET WITH MAYOR EGAN TO DISCUSS OUR IDEAS SEPTEMBER 11 MET INDIVIDUALLY WITH CITY COUNCIL SEPTEMBER 16 MEMBERS - OCTOBER 16 SURVEYED WHAT OTHER COMMUNITIES SEPTEMBER HAVE DONE - OCTOBER INCORPORATED YOUR IDEAS SEPTEMBER - OCTOBER • HERE TODAY TO PRESENT AND ADOPT NOVEMBERS OUR SOLUTIONS FORMALLY ADOPT SOLUTIONS AT THE CITY NOVEMBER 17 COUNCIL MEETING 3f - - - CORNERSTONE OF OUR PROPOSAL - - - PUBLIC / PRIVATE PARTNERSHIP 1). MAJOR CONTRIBUTION FROM THE EAGAN HOCKEY ASSOCIATION TO THE CITY OF EAGAN AND ITS CHILDREN. 2). CITY OF EAGAN'S CONTRIBUTION FROM THE CIP FUND. 3). SALE OF REVENUE BONDS. FUNDING OPTIONS FOR EAGAN RECREATION FACILITIES Estimated Cost of the Facilites Ice Arena $2,000,000 Ball and Soccer Fields 750,000 $2,750,000 Funding Sources: - $1.3 Million from City Investment Fund $1,300,000 - Eagan Hockey Association $200,000 ($10,000 per year for 20 years.) - Eagan Hockey Association ---Sweat Equity $50,000 - Ice Arena-$10 Per Hour Surcharge $100,000 ($10,000 per year for 10 years.) Sub-total Funding $1,650,000 - $1,400,000---City of Eagan Revenue Bonds $1,100,000 Current Rates- 3.50% -5.00% 20 Year Amortization(monthly payments) Annual Cost at 5.00% $110,873 Total Funding Sources $2,750,000 Revenue Opportunities for Bond Amortization: Annual Fees 1). City Utilities- New/Change Account Transfer Fee $25 equals$16,425 $50 equals$32,850 $32,850 2). Recreation Fund Fee on New Building Permits(New Construction) $50 equals$38,600 $100 equals$77,200 77,200 $150 equals$115,800 3). Adult Recreational.Team Fees $25 per team equals$6,000 12,000 $50 per team equals$12,000 4). Eagan Hockey Assn Contribution (from above) 20,000 Conservative Total --- Revenue Opportunities $142,050 Conservative Excess Opportunities versus Bond Amortization $31,177 3' FUNDING OPTIONS FOR EAGAN RECREATION FACILITIES Estimated Cost of the Facilites Ice Arena $2,000,000 Funding Sources: - $1.3 Million from City Investment Fund $1,300,000 - Eagan Hockey Association $200,000 ($10,000 per year for 20 years.) - Eagan Hockey Association ---Sweat Equity $50,000 - Ice Arena-$10 Per Hour Surcharge $100,000 ($10,000 per year for 10 years.) Sub-total Funding $1,650,000 - $650,000---City of Eagan Revenue Bonds $350,000 Current Rates- 3.50%-5.00% 20 Year Amortization(monthly payments) Annual Cost at 5.00% $51,477 Total Funding Sources $2,000,000 Revenue Opportunities for Bond Amortization: Annual Fees 1). City Utilities-New/Change Account Transfer Fee. $25 equals$16,425 $16,425 $50 equals$32,850 2). Recreation Fund Fee on Building Permits(New Construction). $50 equals$38,600 38,600 • $100 equals$77,200 3). Adult Recreational Team Fees $25 per team equals$6,000 6,000 $50 per team equals$12,000 4). Eagan Hockey Assn Contribution(from above) 20,000 Conservative Total --- Revenue Opportunities $81,025 Conservative Excess Opportunities versus Bond Amortization $29,548 37 HOW HAVE OTHER COMMUNITIES FINANCED THEIR RECREATIONAL FACILITIES? BLOOMINGTON - THIRD SHEET OF ICE. $4.1 MILLION --- REVENUE BONDS. CHASKA - COMMUNITY CENTER $8.5 MILLION --- TAX INCREMENT FINANCING. EDEN PRAIRIE - SECOND SHEET OF ICE. $2.3 MILLION --- REVENUE BONDS. HOPKINS - ARENA / PAVILION. $1 .7 MILLION --- GENERAL OBLIGATION BONDS. MAPLEWOOD - COMMUNITY CENTER. $12.3 MILLION --- TIF AND GENERAL OBLIGATION REVENUE BONDS. ROSEMOUNT - ICE FACILITY AND ADD-ON TO ARMORY. $2.4 MILLION --- GENERAL OBLIGATION REVENUE BONDS. 3 k' I " THE TIME IS NOW! WE SHOULD NOT BE FORCED TO TURN AWAY KIDS FROM PARTICIPATING IN OUR PROGRAMS. INTEREST RATES ARE AT ALL TIME LOWS - BUT THEY ARE BEGINNING TO EDGE UP. CONSTRUCTION COMPANIES ARE EAGER FOR WORK. THIS TRANSLATES INTO COMPETITIVE BIDS AND A WILLINGNESS TO "DESIGN AND BUILD", i.e., NO CHANGE ORDERS. IT IS NOT A MATTER OF IF THE CITY OF EAGAN WILL BE ABLE TO EXPAND THEIR FACILITIES, BUT WHEN, AND AT WHAT COST. 39 SUMMARY 1). THANKS TO EACH OF YOU FOR TAKING TIME WITH US TO PRO-ACTIVELY REVIEW SOLUTIONS TO A PROBLEM THAT, WITHOUT ACTION, WILL CONTINUE TO GET WORSE. 2). MAYOR EGAN --- WE HAVE FOLLOWED YOUR INSTRUCTIONS AND DISCUSSED SOLUTIONS WITH ALL COUNCIL MEMBERS. WE HAVE INCORPORATED EVERYONE'S IDEAS INTO TWO BASIC SOLUTIONS. WE HAVE PROVIDED SOLUTIONS THAT "RESPECT" THE WISHES OF THAT SEGMENT OF THE ELECTORATE THAT IS OPPOSED TO ANY ADDITIONAL INCREASE IN PROPERTY TAXES. WE HAVE PROPOSED FUNDING FROM THE PRIVATE SECTOR IN EXCESS OF $350,000 FOR THE PROJECT. 3). OUR PROPOSAL IS AN AFFORDABLE AND WORKABLE INVESTMENT IN OUR COMMUNITY WHICH WILL BENEFIT OUR NUMBER ONE RESOURCE --- OUR CHILDREN. ° /•°