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
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/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
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)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.
° /•°