04/15/2004 - Operations CommitteerofVNIC,
AGENDA
FINANCE, PERSONNEL AND COMMUNITY CENTER
OPERATIONS COMMITTEE MEETING
THURSDAY
APRIL 15, 2004
4:15 P.M.
CONFERENCE ROOMS 2A & AB
I. v�- ROLL CALL AND AGENDA ADOPTION
H. ✓ FINANCE COMMITTEE
a.) Water and Sanitary Sewer Infrastructure Leaseback
b.) Schedule Date to Review Cedar Grove TIF Financing
III. ✓PERSONNEL COMMITTEE
a.) Review New Position Classification to Replace Time Spent Profile
(TSP's)
IV. COMMUNITY CENTER OPERATIONS COMMITTEE
,,ol'a.) Fitness Memberships for:
Full-time, part-time, regular employees, volunteer firefighters,
Discuss Medica / Health Partners approach and the fitness class
offerings / demand ,
�Ab.) Fourth of July Fees FQ� "" � --� o�� -t a•� 8 --�
�) Eagan Foundation Event / Liquor Provider
VY) Proposed Snoopy Statue
Lobby Plantings and Furniture Arrangement ow o � �
f.) Other Business / Updates
1.) Maps at Civic Arena and City Hall ,y C V
2.). Naming of the Teen Center
V. OTHER BUSINESS
�a+s
VI. ADJOURNMENT
TO:
FROM:
DATE:
SUBJECT:
MEMO
City of Eagan
HONORABLE MAYOR AND CITY COUNCILMEMBER CARLSON
CITY ADMINISTRATOR HEDGES
APRIL 13, 2004
CITY COUNCIL COMMITTEE MEETINGS / APRIL 15, 2004
Prior to the advisory commission interviews on April 15, 2004, three City Council Committee
meetings have been scheduled—Finance, Per and Community Center Operations. As the
agenda indicates, the Finance and Personnel committee meetings are needed to obtain direction on
three straightforward items, and thus should only require a few minutes. The balance of the agenda is
dedicated towards the Operations Committee, which includes numerous agenda items that have been
prioritized. Should the committee find that there is not enough time to discuss all of the items and if it
is the desire of the Committee, a subsequent Operations Committee meeting could be scheduled on
April 19 prior to the advisory commission interviews.
The following committee items are scheduled to be discussed at the April 15 meeting.
Finance Committee
Water and Sanitary Sewer Infrastructure Leaseback
At the January 6th Finance Committee meeting staff was directed to: 1.) get more information from
cities that are participating in the transaction to determine "the what and the why" of their processes;
perhaps inviting them to a joint meeting; and 2.) to further research the question of whether or not the
leased assets would be removed form the financial statements of the City, since it appeared to be an
issue for Minneapolis, and what the implications of that removal might be for Eagan. At the January 6
meeting, the Mayor also agreed to engage in a conference call with the Office of the State Auditor to
directly get the position of that Office on this potential transaction.
With the negative publicity swirling about the potential transaction, staff has not proceeded to
complete the above referenced research noting that the time spent may not be beneficial and that
available time is better allocated to other projects. At this time, staff is requesting that the Finance
Committee 1.) reaffirm the previous direction with a priority established to it; 2) recommend to the full
City Council that the plug be pulled entirely on the City's interest in pursuing the potential transaction;
or, 3) place the entire project including the previous direction in a "wait and see" mode to be addressed
at a later date.
Given the continued publicity, most of which is negative and critical, and potential action regarding
both State and Federal concerns over lease/leaseback transactions for tax benefits, staff is
recommending the second course of action; that the Finance Committee recommend to the full City
Finance, Personnel, and Operations Committee Meetings
April 15, 2004
Page 2
Council that the plug be pulled entirely on the City's interest in pursuing the potential transaction and
that the appropriate parties be notified of this action.
Schedule Date to Review Cedar Grove TIF Financing
At the Special City Council Meeting held on March 9, 2004 the Cedar Grove Redevelopment District
Funding Discussion was on the agenda. The City Council directed the item to Finance Committee per
the following minutes.
VI. CEDAR GROVE REDEVELOPMENT DISTRICT FUNDING DISCUSSION
City Administrator Hedges introduced the item, noting that the City Council previously gave
direction to staff to prepare a summary of the financial information associated with the Cedar Grove
Redevelopment District.
Community Development Director Hohenstein provided the City Council with a presentation on
the background of the Cedar Grove Redevelopment Area financing. Hohenstein added that the current
development finance model for the Cedar Grove area projects the tax increment may be able to support
about $3 million of the public improvement costs, and added that it will be necessary to find other
sources to fund the balance of the project costs. Hohenstein then provided a list of options that the
City Council may wish to consider, including: 1.) improvement bonds, 2.) major street fund, 3.) tax
increment, and 4.) tax increment bonds.
The City Council discussed the options and noted that they had some questions on the
assessments. Council provided direction to refer the discussion on the Cedar Grove financing to the
Finance Committee.
Staff is requesting that a date be set for a Finance Committee meeting to discuss the Cedar Grove
financing.
Personnel Committee
Review New Position Classification to Replace Time Spent Profile (TSP)
In response to concerns regarding the current job evaluation system utilized by the City—the Time
Spent Profile (TSP) --staff has been exploring other approaches to better evaluate positions. Staff is
seeking committee direction to further pursue the job evaluation system that has been developed by
Rod Kelsey, Principal Consultant and Vice President of Riley, Dettmann, and Kelsey, a consulting
firm that focuses on compensation strategies, particularly within local governments.
0
Finance, Personnel, and Operations Committee Meetings
April 15, 2004
Page 3
Community Center Operations Committee
Fitness Memberships:
❑ For Full-time. Part-time, Regular Employees. and Volunteer firefighters
City staff has been in communication with the City Attorney regarding whether City employees would
be eligible for fitness memberships at the Community Center. Enclosed on pages _E through Lo is a
memo from the City Attorney, which states that the City is legally permitted to pursue an arrangement
with the Community Center whereby employees could become members. In summary, the City
Attorney has stated that fitness memberships could be offered to City employees that receive health
benefits from the City; however, employees' dependents would not be eligible for paid fitness
memberships. The Attorney also noted that volunteer firefighters could be eligible for the fitness
memberships, particularly since the membership would provide the firefighters with the facilities to
ensure they are meeting the physical requirements to be a volunteer firefighter.
Currently, numerous cities within the metro area are offering such fitness memberships as a health and
wellness initiative. Enclosed on pages -1 through 14— are survey results from eight communities
regarding employee fitness benefits. Through the survey, it was found that, cities that offer fitness
memberships to their employees experience a healthier work force, which in theory, results in lower
health care costs and premiums, less absenteeism, and more productive workers.
❑ Discuss Medica / Health Partners 41, r� oach
Currently, Medica and Health Partners offer a program wherein their clients can receive discounted
fitness memberships at various fitness clubs. Medica offers the discount for membership at Lifetime
Fitness, and Health Partners offers the discount for membership at the YMCA or Northwest Athletic
Clubs. Under both programs, the monthly fitness club membership fee is reduced by $20 provided that
the member attends the club a minimum of eight times per month.
If it is the desire of the Committee, staff could further research the City's options regarding employee
fitness memberships, including whether Medica and/or Health Partners would be interested in pursuing
an arrangement with the Community Center similar to the relationship they currently have with other
fitness clubs in our community.
❑ Fitness Class Offerings /Demand
Community Center Manger Breuer will be present to provide an update on the current fitness classes
being offered, as well as the current demand for group fitness classes.
Fourth of July, Fees
In preparation for the Fourth of July festivities at the Community Center and Central Park, the
Committee is asked to discuss the fees that will be associated with the various uses and whether it is
the Committee's recommendation to waive any or all fees associated with the Forth of July festival
events.
3
Finance, Personnel, and Operations Committee Meetings
April 15, 2004
Page 4
Eagan Foundation Event / Liquor Provider
The Committee is asked to discuss the recent request by the Eagan Foundation to use a different liquor
provider—other than the one contracted by the Community Center—for their annual Wine and Cheese
Event this May.
Proposed Snoopy Statue
There has been interest expressed by the ECVB to sponsor a Snoopy statue in what will be the final
Peanuts on Parade exhibit in the City of St Paul this summer. If it is the desire of the ECVB Board to
sponsor a Snoopy statue, it has been suggested that the Snoopy statue be displayed at the Community
Center once the Peanuts on Parade exhibit has ended. The Committee is asked to discuss whether the
Snoopy statue should be displayed at the Community Center if the statue sponsorship is approved by
the ECVB Board.
Lobby Plantings and Furniture Arrangement
Per the request of the Operations Committee, efforts have been made to add plant materials at the
Community Center, predominantly in the upper entryway. Recognizing the value of seeing plant and
furniture layout designs first hand, the next Operations Committee meeting is planned to be scheduled
at the Community Center. In preparation for the next meeting, the Committee is asked to review
drawings of potential lobby layouts/designs and offer further input.
Other Business / Updates:
❑ Maas at Civic Arena and Citi° Hall
It has come to the City's attention that there is some confusion due to the similarity on names of the
Eagan Civic Arena and the Eagan Community Center. To assist residents, a large map has been
prepared and will be posted at the Civic Arena and at City Hall to guide residents to both facilities.
❑ Naming of the Teen Center ,
Per the request of the Operations Committee, the Teen Advisory Board has been soliciting suggestions
for the future name of the Teen Center at the Community Center. Cherryl Mesko, Parks and Recreation
Office Supervisor, will be present to provide and update on the teens efforts thus far.
/s/ Thomas L. Hedges
City Administrator
�ir
SEVERSON, SHELDON, DOUGHERTY
& MOLENDA, P.A.
TO: Michael G. Dougherty
FROM: Terry A. Merritt
RE: Gene VanOverbeke Draft Memorandum
DATE: April 13, 2004
Community center employee memberships could be determined by the City Council to
provide for a healthier, more physically fit workforce, which is a benefit to the city.
Thus, a reduced cost or free membership to employees working at the community center
could be an appropriate benefit. Of course, since this is a benefit to the employees, it
should be considered as part of their compensation package and discussed at budget time.
For the full or reduced cost membership to not be included as taxable compensation, the
benefit must fall into one of the following categories:
1. No additional cost service;
2. Diminimus fringe benefits; or
3. Discount of no more than 20% of the price at which the employer is
offering the service to customers.
For the no additional cost service, the use of the facility by city employees would
necessarily need to avoid the prevention of its use by a paying customer. This raises an
issue when an employee arrives at a slow time, but as the place fills up, the person's
presence prevents a paying customer from being admitted at a later time. Historically,
airlines have allowed workers to fly for free under this provision, only if there is space
available, that space being available immediately before takeoff.
While it is justifiable to allow the city employees a full or discounted membership, it
would appear that they would not be able to extend that same benefit to spouses or
dependents.
A measure of the effectiveness of the benefit would be whether there is a reduction in
sick days used.
r
In response to issue Paragraph No. 3, is there a job component in both the firefighters and
police officers concerning fitness? If there is, a fitness requirement, and failure to meet
that fitness requirement results in loss of the position, it would appear that the use of the
community center athletic equipment, would provide the necessary opportunity for the
employees to remain physically fit in compliance with the specific job requirements. The
city would not need to worry about monitoring usage, since the failure of a police officer
or firefighter to meet the job requirement would result in that person no longer being a
member of the user group thereby no longer a cost to the city for the community center
use.
In response to No. 4, the city may wish to include as a part of its request for proposal the
inclusion in any healthcare submission, the inclusion of the city's community center as
one of the recreation facility along with other private facilities, such as Lifetime Fitness,
YMCA, or Northwest, that would be used by the providers' members..
Further, the city may wish to investigate whether some form of discount to those insurers
would motivate them to include the city's community center as an option for its
members.
FOR UI I.
2
4
GNU of ea4an
To: Sandy Breuer, Community Center Manager
Ken Vraa, Director of Parks and Recreation
FROM: Beth Wielde, Parks Research and Special Projects
DATE: January 8, 2004
RE: Employee Fitness Center Benefits Survey
SURVEY RESULTS
16 municipalities were contacted to request information about their employee fitness benefits;
specifically whether employees receive memberships to their municipal fitness facility for free or
at a discounted rate. Eight municipalities (50% response) were able to share their information,
communities that operated a community center with a fitness element. The community centers
were generally from the Metro area, with two exceptions, Waconia and LeSueur. But both
these non -metro facilities operate a fitness component, and were therefore included in the
analysis.
The eight communities participating in the survey are:
• Chaska • Maplewood
• Eden Prairie • New Brighton
• LeSueur • Shoreview
• Maple Grove • Waconia
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1. Do employees receive
memberships or discounted
rates to your fitness facility
as an employee benefit?
City Employee Fitness Memberships
Discounted Rates
0%
WA
0%
Chaska Family membership is discounted.
Eden Prairie Eden Prairie indicated "Other" as their response to this question. "Free use of
fitness center, swimming pool during open and lap swim, and ice arenas during
open skate. Free use of the racquetball courts for walk-on times (when not
reserved by public). Employees can reserve courts at resident rate (participation
in a league requires full payment). Employees have access to classes offered at
the Communitv Center.
Maple Grove Maple Grove was the only facility who indicated "No Discounts." City
employees receive corporate rates at the Northwest Athletic Club since they do
not have a fitness component to the City -operated facility.
2. If City employees receive a benefit
or discount, is it applicable to all City
employees, or only certain
departments, such as Police, Fire, or
Community Center employees?
Note: The only respondent who was
unable to answer this question was
Maple Grove, who does not operate a
fitness component. They have instead
partnered with Northwest Athletic
Clubs.
Which Employees Get Discount by Department
Other
0%
Community
Center Only
0%
Police Only
0%
Fre Only
0%
Police and Fre
0%
3. Are fitness benefits restricted to
full-time employees only, or are all
employees (part time, seasonal)
allowed to partake in the benefit?
Note: Maplewood had two
responses.
Fitness Benefits Extended to
Which Employee Groups
WA
13%
FT Only
13%
Fr and PT
37%
Only Full -Time
Full -Time and
Part -Time
Full -Time, Part-
Time, and
Seasonal
Other
N/A
Eden Prairie
_
Chaska
Shoreview
Maplewood
Maple Grove
Maplewood
Waconia
(paid per call fire
fighters)
LeSueur
New Brighton
Note: Waconia seasonal employees receive the benefit only while they work for the City.
4. If part time and seasonal employees are allowed to partake in the benefit, what are the
conditions they must fulfill?
Chaska- part-time employees must work a minimum of 10 hours per week.
New Brighton- they must work at least 20 hours per week.
Maplewood- "Full-time and regular part-time employees and paid -per -call firefighters have their
membership paid by the city. Regular part-time meaning `benefit -earning' employees working
minimum of 15 hours per week. Temp/seasonal and casual part-time employees can obtain a
pass plus $1 for a one -day visit. These must be signed by their supervisor. The passes are
obtained from the HR Dept.
Shoreview- "As long as an employee is active on our payroll system, they can access these
benefits. That could mean if they only work a few hours a week they can still use these
benefits."
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5. Is the benefit part of a formal
employee Health and Wellness
initiative your city is undertaking
through Human Resources, or is the
benefit through Community Center
policy?
Chaska. and Waconia have indicated their
employee fitness program is a benefit
offered through the City. All others have
indicated it is part of a Health and Wellness
initiative.
Origin of Employee Fitness Benefit
HeaIth and
W&kwas
trdliait %
Maple Grove Through Medica
Maplewood Through Human Resources
Shoreview Will be reviewing the program for updating and revamping.
Waconia Started as benefit through Community Center policy. Justified as part of a
health and wellness initiative just implemented.
6. Are employee family members permitted to add onto the employee
membership? If so explain the added fee structure if there is one and criteria.
Other
o%
Chaska
Adults free, famly membership is discounted.
"No, employee benefd only."
"Employees can upgrade their memberships to family status by paying 1/2 the normal
Eden Prairie
LeSeuer
family membership fee."
No fitness center
Maple Grove
"If the employee wants his/her family to join, they would pay the difference between the
Maplewood
employee rate which is the single resident rate and the resident family rate."
Yes. Family members living in the same household can be added for no additional
New Brighton
charge.
"All employees are given an individual membership, but only full-time empoyees are
allowed to add family members onto memberships. Either a Family or a Dual
Membership can be upgraded for a fee. To determine the add-on fee, we take the cost
of a single adult membership from the family or dual rate." To upgrade to a Family
Membership, take Family Membership cost ($495), subtract Individual Member Cost
($290), leaving an upgrade fee of $205. To upgrade to a Dual Membership, take the
Dual Membership cost ($440), subtract Individual Membership cost ($290), leaving an
upgrade fee of $150. Shoreview notes that there are both resident and non-resident
Shoreview
membership fees, and when calculating the fees for employees, they use 'resident' rates.
Waconia
FT employees may add family at discounted rates. PT and Seasonal may not.
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7. Is the benefit provided by Council decision or authorization, or was it an
internal decision to offer the benefit?
Chaska
Intemal decision
Eden Prairie
Been in place for 20+ years, unknown who initiated it.
LeSeuer
It was an intemal decision made by the City Administrator
Maple Grove
Maplewood
No fitness center
Intemal decision
New Brighton
A Family Service Center membership is approved on an annual basis as part of
our employee compensation resolution.
Shoreview
Council decision
Waconia
_ Ct Council decision at the beginning of operations.
8. What percentage of employees would you estimate take advantage of the fitness
benefit?
y ESTIMATES
Chaska
99%
Eden Prairie
5% or less
LeSeuer
40%
Maple Grove
- No fitness center
Maplewood
72% FT and regular PT, 40% ofper-call firefighters.
New Brighton
25%
Shoreview
50%
Waconia
50%
AVERAGE
49%
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