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06/04/1996 - City Council Special (2)AGENDA SPECIAL CITY COUNCIL MEETING Tuesday June 4, 1996 5:00 P.M. Municipal Center Lunchroom I. ROLL CALL & ADOPTION OF AGENDA II. VISITORS TO BE HEARD III. FISH LAKE IV. PARK DEPARTMENT UPDATE Consideration of Richard Holz Property •ACC Contract for Second Sheet of Ice/Mighty Ducks Grant Program V. OUTDOOR WARNING SIRENS VI. OTHER BUSINESS VII. ADJOURNMENT MEMO city of eagan TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: MAY 31, 1996 SUBJECT: SPECIAL CITY COUNCIL MEETINGITUESDAY, JUNE 4, 1996 A Special City Council meeting is scheduled for Tuesday, June 4, 1996 in the lunchroom of the Municipal Center building. A light dinner will be served. FISH LAKE The Water Quality Management Plan that was adopted for the City of Eagan identifies Fish Lake in the highest category for water quality mitigation. Staff has been working on a loan agreement with the PCA to establish an acceptable mitigation procedure for Improving Fish Lake through the removal of phosphorous, etc. Attached for Council review on pages through_ is a memo that addresses cost, financial options and project alternatives for the F Lake water quality mitigation considerations. City Council Direction. There will be a brief presentation by Rich Brasch, followed by a discussion and directive from the City Council as to how staff should proceed with the Fish Lake water quality mitigation options. ARK DEPARTMENT UPDATE • Consideration of Richard Holz Property --Enclosed on page is a copy of a memo from the City Administrator to the Director of Parks & Recreation requesting certain information as directed by the City Council at the May 20 City Council meeting. Enclosed on pages through �,, : is a copy of a memo from the Director of Parks & Recreation tha addresses various alternatives if the City is to further pursue acquisition of the Richard Holz property. These alternatives include cost analysis. City Council Direction: Based on the information presented by the Director of Parks & Recreation and following Council discussion, direction should be given to the City 5 Administrator whether negotiations should continue on the Richard Holz property and if there is a decision to proceed ahead, which option is desirable by the City Council. This item is placed on the regular agenda for official ratification. ACC Contract For Second Sheet of Ice/Mighty Ducks Grant Program --The Director of Parks & Recreation was asked to provide a copy of the pro forma covering the estimated revenues and expenses for a second sheet of ice. This information is enclosed on pages } through , for Council review. City Council Direction: To provide direction to the City Administrator, based on the information and discussion, to proceed with a contract between the City of Eagan and ACC to determine a cost estimate of the second Civic Arena building if the City is to continue its application for a Mighty Ducks grant that will be announced in November of 1996. Please note, this item is placed on the regular agenda for official ratification. OUTDOOR WARNING SIRENS Chief of Police Geagan and City Administrator Hedges have discussed the warning siren system as it currently exists in the City. Given the amount of development that has occurred in recent years and as a result of the May 19 storm, a reexamination of the warning siren system has been undertaken. The Police Chief and City Administrator are recommending the City Council consider some changes to the existing system that will enhance coverage and improve technology as explained in the memo from Chief of Police Geagan enclosed on pages through City Council Direction: To provide direction to staff regarding the installation of additional outdoor warning signals. If the City Council desires to proceed ahead with the additional warning signals, it is proposed that the money be allocated from contingency or the City's fund balance. Please note, this item is placed on the regular agenda for official ratification. OTHER BUSINESS The Director of Parks & Recreation has been working with Tom Metzen in an effort to prepare an appraisal for the Caponi property. That information will be shared with the City Council as a part of Other Business. /S/ Thomas L. Hedges City Administrator f_!7 TO: MAYOR AND CITY COUNCIL C/O THOMAS HEDGES, ADMINISTRATOR FROM: KEN VRAA, DIRECTOR DEPARTMENT OF PARKS AND RECREATION RICH BRASCH, WATER RESOURCES COORDINATOR DEPARTMENT OF PARKS AND RECREATION RE: UPDATE ON ISSUES ASSOCIATED WITH FISH LAKE CHEMICAL PRECIPITANT DOSING PROPOSAL DATE: MAY 29, 1996 Background The Diagnostic Feasibility study for Fish Lake outlined a strategy to significantly reduce phosphorus loadings to the lake in order to improve water quality. One of the major findings of the study was that under existing conditions, about 55% of the total phosphorus load to Fish Lake enters through the mainstem of the storm sewer trunk line that extends from Hurley Lake through Pond JP -47 (Figure 1). That contribution will rise to about 65W of the total load when the watershed is fully developed. Only by substantially reducing the load from this trunk line will significant improvements in Fish Lake water quality be attained. An improvement in the water quality of Fish Lake will also benefit Blackhawk Lake downstream, another of the City's top long-term lake enhancement priorities. Of the numerous remedial alternatives investigated during the diagnostic feasibility study, only treatment of storm water in the mainstem of the storm - sewer system with a chemical precipitant reduced the phosphorus loading and preserved the flushing necessary to achieve a significant improvement in in -lake water quality. The treatment would be accomplished via the construction and operation of a chemical feed system near the Hurley Lake lift station which will automatically inject the proper amount of chemical based on flow pumped by the lift station. The chemical precipitant of choice is alum, a compound composed of aluminum sulfate. While one-time applications of alum to lakes have been used frequently to combat internal loading of phosphorus, the use of alum to continuously treat inflow is relatively new in Minnesota. As a result, regulatory agencies are in the process of trying to determine what restrictions should be attached to this method of lake treatment. Some of those regulatory considerations center around the impact of the aluminum in alum on aquatic organisms. In addition, the actual cost and effectiveness is often dependent on site specific factors. Issues There are two immediate issues associated with the Fish Lake dosing station. Following is an identification of those issues and their status. 1 3 1. Regulatory Issues The principle regulatory issue is related to the water quality standards for aluminum. MnPCA has applied an aluminum standard of 125 ug/liter to both Fish Lake and Pond JP -47 to protect fish and aquatic life. For a frame of reference, there is no mandatory aluminum standard that applies to drinking water for protection of human health and only a recommended standard of 50-200 ug/l to address possible taste concerns. Even based on available data for acute toxicity for aquatic life, this standard is extremely conservative. Further, it fails to recognize that toxicity of aluminum to aquatic life has much more to do with dissolved than total aluminum concentrations. The proposed rate of alum injection would result in a total aluminum level of 800-1000 ug/l in the treated water in the force main. If the treated water is discharged directly to JP -47 (as it would be under the least expensive dosing option), we would violate current water quality standards. One option to deal with this issue is to construct an upland basin to settle out floc (and the aluminum it contains) from treated water prior to discharge to Pond JP -47. The only viable upland site for a basin lies to the east of Pond JP -47 on vacant land owned by Mr. Pat McCarthy. It appears almost certain that to secure the 2 acres necessary to construct the basin, we would have to go through condemnation. Increased costs associated with land acquisition together with some other necessary design changes have increased the cost of this option from the original estimate of $122,000 to $250,000 - 275,000. With costs this high for a project involving upland ponding, it appears prudent to exhaust any other significantly lower cost options before seriously considering options involving upland ponding again. Another option is to request that MnPCA change the aluminum standard that applies to Pond JP -47 and Fish Lake. In a meeting between staff and MnPCA on May 1, MnPCA agreed to raise the total aluminum standard to 262 ug/l for both Pond JP -47 and Fish Lake. While this is a step in the right direction, violations of water quality standard in Pond JP -47 and/or Fish Lake would likely still occur except under the most expensive project alternative involving construction of a large upland settling basin and the use of a coagulant to accelerate settling of the floc in the treated water. Of potentially greater interest is that there was some informal talk by agency staff of setting a dissolved aluminum standard of 130 ug/l for the receiving waters. For comparison, the maximum observed dissolved aluminum concentration during a pilot dosing project completed last summer was 5 ug/liter. Essentially, the rapid mixing of alum solution with the raw water in the force main and the chemical characteristics of the raw water itself mean that dissolved aluminum concentrations would always be well under 130 ug/1. Whether MnPCA would revise the aluminum standard to this degree is uncertain, but the only way to determine whether they would may be to submit a formal request. Another related regulatory issue is whether the accumulation of floc in Pond JP - 47 would require mitigation. MnPCA's primary concern related to floc accumulation is regarding the impact of the floc on bottom dwelling organisms, mainly through smothering. Our consultants have calculated that at the low dosage rates 0a rA proposed, settled floc would increase the rate of sediment accumulation in Pond JP -47 by about 5-8 mm/year above background rates (which usually average 3-15 mm/year in natural systems). This appears to be a low enough rate of additional sediment accumulation that it would represent only a minor impact to the few hardy organisms that we've found reside in this already heavily impacted basin. As a result, we question whether it is enough of an impact to warrant mitigation. At worst, it appears that we would need to construct a 1.3 acre wetland elsewhere that would have similar functional characteristics to Pond JP -47. Again, the best way to secure an agency response on mitigation requirements may be to submit a concrete proposal in the form of a permit application. 2. Cost/Financial Issues and Project Options Initial capital costs for the preferred chemical injection system and sedimentation basin option were estimated at $122,000 in the 1994 Diagnostic Feasibility Study for Fish Lake. These cost estimates were based on several key assumptions regarding operation and effectiveness of the system and the cost to secure land for an upland settling basin. Staff was involved in a joint project with the University of Minnesota last summer to operate a pilot dosing station to assess the costs, effectiveness, and impacts of an alum dosing station as proposed for Fish Lake. in addition, we have approached the owner of the vacant parcel to the east of Pond JP -47 regarding the sale of approximately two acres of property for use as an upland ponding area. Staff requested our consultants on this project to re -estimate project costs based on the information generated by this additional work. Revised costs for four alternatives are presented in Table 1. Capital and annual 0 & M costs are expressed on an annualized basis for the 20 year project life period to facilitate a relative cost comparison between the alternatives. The first alternative involves the use of alum alone and assumes excavation and use of Pond JP -47 for the primary floc settling basin. This option is substantially less expensive than any of the others because it does not require additional land acquisition nor does it involve the use of a coagulant aid to increase floc settling. This alternative would likely require either a substantial modification in the aluminum standard applied to Pond JP -47 or mitigation for adverse impacts to Pond JP -47. While it is the least expensive alternative, the costs do not yet include any wetland mitigation because the mitigation requirements are not known. It would also require a significant change by MnPCA in the aluminum standards that apply to Fish Lake. The second alternative is the same as the first, except that a coagulant aid is added to improve settling of alum floc and removal of aluminum prior to discharge to Fish Lake. Because of the use of a coagulant, capital costs increase by about $26,000 and annual O&M costs more than double compared to Alternative 1. This option could either require a modification in the aluminum standard applied to Pond JP -47 or mitigation for any adverse impacts to Pond JP -47. Again, costs for wetland mitigation are not included in Table 1. This alternative would likely require a minor change in aluminum standards that apply to Fish Lake. Alternative 3 assumes that an upland pond is constructed on vacant land to the 3 s east of Pond JP -47. Primarily because of the costs to secure the land and adjustments in unit costs for excavation, the cost of this option has increased from $122,000 identified in the 1994 report to approximately $251,000. This option would also likely require a significant modification of aluminum standards for Pond JP -47 and a minor change for Fish Lake. The final alternative is the same as Alternative 3 but includes the coagulant aid, which again increases both the capital costs and annual O&M costs. It is the most expensive but would not require any modification of aluminum standards for either Pond JP -47 or Fish Lake. It is important to note that the benefits to Fish Lake in terms of decreased phosphorus loading are the same for all alternatives. The major difference is the cost of each alternative and the need to secure changes in aluminum standards for Pond JP -47 and/or Fish Lake to allow effective system operation without violation of water quality standards. Because of the significant cost differential between Alternative 1 and the remaining alternatives, it may make sense to pursue this alternative before seriously considering any of the others. As a final note, MnPCA has notified us that the City must agree to execute the agreement for the $150,000 zero -interest loan awarded us for the Fish Lake project by July 1 of this year. If we do not, we risk losing the loan and having to re -apply for loan funds at a later date if we need the funds. In addition, even if we execute the loan agreement now, we have the option of not using loan proceeds allocated for a dosing project if we choose not to pursue one. Proposed Strategy Following is the proposed strategy that the APRNRC's Natural Resources Subcommittee and staff propose for City Council consideration: 1. Execute MnPCA loan agreement by July 1, 1996. The appropriate resolutions would be submitted for approval by the City Council at their June 4 meeting. 2. Submit permit application to the State for Alternative 1 in Table 1. This is by far the lowest cost option, and it makes sense to fully explore this alternative before we seriously consider the others. As part of the permit application, we would present our rationale that the minimal impacts that would occur to Pond JP -47 and Fish Lake should not require mitigation. In addition, we would request that the aluminum standard for Pond JP -47 and Fish Lake be revised to a dissolved aluminum standard similar to what has been discussed informally by agency staff. 3. If mitigation is required because of impacts to Pond JP -47 and/or Fish Lake, search for a suitable mitigation site and estimate costs to comply with mitigation requirements. This information would allow us to identify the full costs of Alternatives 1 so that we can decide whether it is cost- effective for the City to pursue. 4 4. Investigate the use of another chemical precipitant if regulatory issues and the costs associated with the use of alum prove insurmountable. While alum is the chemical precipitant of choice because of its proven long term effectiveness in inactivating phosphorus, ferric chloride may be almost as effective and it may be easier to secure necessary changes in regulations to use. The approach proposed is rather aggressive but one that both staff and the Natural Resources Subcommittee believe is appropriate under the circumstances. The City has made a strong commitment to water quality management and has implemented many of the practices advocated by state water resource management agencies to minimize pollutant loadings to its lakes and wetlands. Now some flexibility on the part of the regulatory agencies is necessary to accomplish significant rehabilitation of the target resource. At best, we will be able to proceed with the most cost-effective dosing option for Fish Lake. At worst, we'll have a better idea of the constraints we have to operate under for dosing options and we can adjust our management strategy accordingly. If the City is forced to look seriously at securing an upland ponding area to meet state permitting requirements, it may be appropriate to wait until the McCarthy property develops so we can secure the land as part of a development dedication for water quality. Since it is unclear when development of this land would occur, another management option to effect at least some improvement in Fish Lake water quality may need to be pursued in the interim. Staff have investigated one such option which involves application of a chemical precipitant directly to the lake itself on a periodic basis. While it does not have the same cost-effectiveness as the dosing alternative and there are again regulatory issues to deal with, it may be a suitable short -to -intermediate term management alternative if the above permit application is not approved. Requested Action Staff is requesting the following action from the City Council: • informal endorsement of the strategy outlined in this memo by the City Council at the June 4 workshop. • approval from the Council at the June 4 regular Council meeting to execute the MnPCA loan agreement. 4////�/ Ken Vraa, Director Department of Parks and Recreation CC. Natural Resources Subcommittee Paul Nelson, Montgomery Watson 9 Rich Brasch Water Resources Coordinator Department of Parks and Recreation i a:- �d — � _ V \ § k § § 5 k k \ \ y & ! \ G a Table I Revised Cost Figures -Fish Lake Dosing Station (May 28, 1996) Alt. 1 (alum only, JP -47 exc.) Capital $ O & M $135,015 $5,375 Alt. 2 (alum and coag., JP47 exc.) Capital $ O & M $161,575 $11,375 Alt. 3 (alum only, upland pond) Life Annual Cost Comments 20 $12,126 Least cost option Wetland mit, costs add'1 Life Annual Cost Comments 20 $19,453 Coag. increases floc settling Wetland mit. costs add'.l Capital $ O & M Life Annual Cost Comments $250,865 $5,375 20 $25,505 Land acquisition costs v. high Alt. 4 (alum and coag. aid, new pond) Capital $ O & M Life Annual Cost Comments $277,425 $11,375 20 $33,636 Coag. might be unnecessary • Original cost estimate for dosing station and upland sedimentation basin was $122,000. Cost increases due primarily to condemnation ($30k), revised land cost ($28k), and increased excavation unit costs ($30K).. MEMO _ city of eagan TO: PARKS AND RECREATION DIRECTOR VRAA FROM: CITY ADMINISTRATOR HEDGES DATE: MAY 229 1996 SUBJECT: CITY COUNCIL DIRECTION - RICHARD HOLZ PROPERTY At Its meeting Monday evening, the City Council was informed of the counter offer for the Richard Holz property. Due to the availability of an existing access within the neighborhood, the Council requested additional steps be taken before the Council can respond to the counter offer. 1. The City is to retain a realtor to represent its interests in the negotiation and to assist with an analysis of the viability of splitting the property and reselling the existing house. 2. City staff is to work with the realtor to determine whether the parcel can be subdivided so that the house can be resold to recoup a portion of the costs of the property. This would require that the newly created lot share access with the new park driveway. 3. The staff is to prepare a financial analysis of the purchase price, subdivision costs and sale price as an alternative to purchasing the site and removing the house. If you have questions, please let me know. City Administrator /O MEMO city of eagan DATE: May 31, 1996 TO: Tom Hedges, City Administrator FROM: Ken Vraa, Director of Parks and Recreation SUBJECT: Richard Holz Property - alternatives for subdivisions Backaround City Council requested that staff review the options of a possible subdivision of the Richard Holz property should the City acquire it. The objective, as I understand it, would be to try and provide public access to Holz Farm Park from Cliff Road, but to reduce the cost by being able to sell the existing home as an individual lot. A "shared" driveway access would be required to accomplish this. Alternatives that show those possibilities are as follows. Review of Alternatives Holz's home sits deep on a 1.'14 acre parcel, is relatively flat throughout the parcel except for the slopes on the east side as the parcel drops towards the existing pond. Staff has prepared a photo board for the Councii for presentation ,purposes which shows the parcel and existing conditions. The City has a 16 foot wide access on the west side of the Richard Holz parcel. The distance between the west property line of the 16 foot access and the Holz home is approximately 38-40 feet. To accommodate a 28 foot road surface for a public street, Engineering requires a 50 foot road right of way. In addition, subdivision standards for single family homes require a 10 foot side yard set back. Given there is only 38 feet between the home and the property line, and the requirement for a 10 foot set back, it would not be possible to meet the City's standards for road right of way and the subdivision standards. Option B shows an 11 foot road easement and a 24 foot wide road. This road would then be off set from the house approximately 3 feet. Option A shows a shared access at the current driveway location to the Holz home. This option would also require the relocation of the two stall detached garage to a position south of the home. By doing so, the road could curve around the east side of the home following the 920 contour. A driveway off of this road to the newly created garage location is feasible. The cost for relocating the garage and a new floor would be approximately $4,000. The residential portion remaining with the home is approximately .60 acres in size. At the time this memorandum was written, staff has received a response from original appraisers of this property to determine what might be the impact on a sale price of this property given either of the two configurations identified as Option A and B. it Tom Hedges May 31, 1996 Page two The Council inquired as to the cost of platting the property. Staff is estimating this cost to be approximately $1,500. This assumes that staff involvement would be absorbed. Costs associated with this would be for survey work and preparation of a mylar for filing with the County. Option 3 The Holz Farm Task Force recommended the acquisition of the entire parcel because it is a vital price in making the site a viable historic farm operation. Option C would be to rent the home until the use of the property is best defined. This option reserves both of the two options noted above. Staff has checked with rental agencies who indicate that Eagan is a "hot" market for rental property. Based on staffs brief description, they estimate that a rental fee of $950 could be obtained. Assuming a monthly rental of $900, this would generate a total annual revenue of $10,800. However, state statues require that one-third of this be returned to the County because it is derived from tax exempt property. There would be an additional cost to the City for insurance of the structure. All other costs associated with the rental of the property such as utilities, would be at the renters expense. As mentioned, this option preserves the previous two options as well as other options such as the sale of the home and removal from the site. However, the Holz Farm Task Force could see the value and use of the house and garage for other possible uses associated with Holz Farm. The Task Force cites as reasons for acquisition the need to provide a public access and public viability from Cliff Road rather than a residential street within a neighborhood. The Task Force also identified the need for additional parking and increase in programming options which the additional property could allow for volunteer staff, garden plot, storage, etc. For Council Action Staff is seeking direction relative to which option Council would like to pursue. Council should be aware that this item does appear on the Consent Agenda for Acquisition, but with options as to how to proceed. Should the Council take another course of action, it would be appropriate to remove that item from the Consent Agenda. Staffs reasoning was that it was easier to place this item on the Council Agenda for public notification and delete it should there be a change, rather than trying to add it as an additional item. aDnwnI.kv /e2 0 410 i + doop -_.... I r. f r A�}R'4r'`r.}✓. ti,.d}$ +Y.ry ,} t rfi f �"'^ f �r �rXj, w r IWO 60-P { Y i 4Y5 t f ' •�� �Smvfll r 1—' 1.+NE �. ' xfh�` ft {r'�Y{r "h.}�r.{",h�r'•} .v>�"' � ., �-. Y f, 4r'• �jr¢ { �d ff o � r`w'`:i�'} > Y y.,+r{;`}�.`�., rr f - �i" t ----- ........ IT I >���{h��"rff ;r. > r u"""�2��'cd'ap >�` t,}�{rj���f� r { � ,V •j � 3 l � ` � ` �}�r } r r> 4 r };f�r � nk fi" f�`` tf '• } • � � • r • r '1 0J % / 1 MAN01. LAKE mole t r vxr} y1t r _� r � r I / ICY hr { r r �•YrrYr r •- .V r Ho Ltz m 2A Ie. tur� . 1 "s so, MEMO —city of eagan DATE: May 31, 1996 TO: Tom Hedges, City Administrator FROM: Ken Vraa, Director of Parks and Recreation SUBJECT: ACC Contract: Second Ice Sheet Background At the City Council meeting on May 20, the City Council discussed the proposed contract with ACC Architects to do a schematic drawing for the cost estimate with the proposed second ice sheet. Additional History Attached to this cover memo is the original memo dated March 29, which raised the issue of a second ice sheet and an application for a Mighty Ducks Grant. The Council will recall that the President of the Eagan Hockey Association, Mary Pontrelli, was present at the Council Workshop to pledge the support of the Eagan Hockey Association for this second ice sheet. As noted in the March 29 memo, it's anticipated that a second ice sheet would add $220,750 in gross revenues and $97,400 in expenses for a net operating profit of $123,000. Springsted & Associates developed four preliminary gross revenue debt service schedules (see attachments). It would appear that the net revenue from this facility would support a bond in the amount of $1.4 million over a 20 year pay back or $1.2 million over a 15 year period. If the grant from the Mighty Ducks is successful, the maximum amount would be $250,000. The hockey association has also committed $100,000 in cash and in-kind services. Revenue Bond Mighty Ducks Grant EHA Commitment 20 Year Pav Back $1,400,000 250,000 100.000 15 Year Pay Back $1,200,000 250,000 100.000 Additional Information The revenue projections for the second ice sheet are conservative estimates and are based on a rate of $125 per hour for ice rental time. Staff will be recommending this higher rate effective with the 96-97 season. The Eagan Hockey Association has been notified that staff will be recommending this rate and that revenue projections are based on this fee structure. /6 Tom Hedges May 31, 1996 Page two Revenues do not include dry floor events for this facility. All revenues are projected on ice rental based on a 6 month operation. Eagan Hockey Association could utilize 100% of the available hours. It is likely that ice could be extended and the revenues increased, however, staff wished to stay on the conservative side with these early projections. 'scussion How much would a second ice sheet cost including design fees, building costs, equipment, etc.? Staff had projected the cost for adding the second ice sheet between $1.7 and $2 million. However, until actual construction estimates are known, this is simply a projection based on the construction cost of the current civic ice arena. We do know that there will be a number of changes in the structure that would reduce costs, but we also know that there will be other factors which need to be included that could increase the cost. To define these costs more specifically an actual cost projection for a second ice sheet project is needed. The Eagan Hockey Association, in response to a request from staff, have agreed to fund half of the cost of ACC's contract in the amount of $7,500 (total contract $15,000). It's understood that the Association's contribution would be used towards their commitment of the building project if the project should proceed to completion. Relative to timing, the desire is to have a schematic plan prepared with the cost estimates back to the City Council by the end of August or early September. At that time the City Council could review the projected cost for the facility and if the costs should exceed expected the revenues they can make the decision not to proceed. If the Council should decide to proceed with the project, make a grant application to the Mighty Ducks, and the Mighty Ducks do not fully fund the project, the Council could then decide whether it should proceed further. Assuming both expenditures for the project can be covered through funding sources, it's desirable to have the project out for bid in December or early January 1997 for completion and operation commencing October 1, 1997, For Council Action Staff is seeking approval of the contract with A.C.C. Architects to do preliminary schematics and cost estimates for the second ice sheet for the Eagan Civic Arena. Additional Questions The question was also raised at the Council meeting relative to the staffing for the Eagan Civic Arena. Apparently, a resident of the community approached the City Council and criticized the Council for having two full-time positions at this facility. Staff has reviewed the staffing at other ice arena facilities and can report the following: Burnsville has two ice sheets, they have three full-time staff people including a manager, an assistant manager and a secretary. In addition, they have four permanent part-time staff who work 35 hours per week. These individuals receive a pro -rated benefits package. Farmington, Lakeville, Hastings, Wakota, Woodbury and Rosemount all have two full-time people, a manager and an assistant manager. In the case of Inver Grove Heights, they have a manager, assistant manager, a maintenance supervisor and will be adding a building attendant in July of this year, for four full-time staff people, 1;2 Tom Hedges May 31, 1996 Page three In Apple Valley, they have a manager, assistant manager, a full-time maintenance supervisor and a janitor for seven months of the year supplied by the school district. (The district owns % of this facility). By comparison, it would appear that Eagan's staffing pattern for the civic arena is not unusual and may be considered conservative compared to the other facilities. The public often fails to perceive the fact that this facility is not a 40 hour, 8 am to 5 pm facility. As such, it requires more hours to be covered by full and part-time staff, and the function of the ice arena manager is not only operations but maintenance. Hence the distinction between the manager who takes care of operations and the assistant manager who takes care of maintenance/repair. If you have any additional questions relative to the staffing of the civic arena, I'd be happy to respond. /7ec ubmitted, Director of Parks and Recreation cs&ACCcontr.kv mi city of SaganMEMO DATE: March 29, 1996 TO: Tom Hedges, City Administrator FROM: Ken Was, Director of Parks and Recreation Todd Burkert, Civic Arena Manager SUBJECT: Mighty Ducks: Second Ice Sheet for City of Eagan Irrm•_._=. The issue for discussion Is 'should the City of Eagan pursue a "Mighty Ducks" Grant for the purposes of assisting with the construction of a second ice sheet adjacent to the Civic Arena." The City's share of the facility is proposed to be financed through revenue bonds. The Minnesota State Legislature has recently awarded communities grant money to construct ice arenas throughout the State of Minnesota. Council members may recall an article late last fail in which the State announced the first round of grant recipients. The funding process has been referred to as "Mighty Ducks Funding." The current round of applications are due by April 5. It is believed that many of the earlier applications submitted for the first round of funding remain on the priority list and are likely to be viewed for these grants after the April 5 deadline. The next and probably final round of Mighty Ducks Grants are due to be submitted by October 5, 1996. Grants will be for $250,000, and there is approximately $4.5 million available for distribution. In addition to the grant money, arenas constructed and funded through the Mighty Ducks Legislation are exempt from construction sales tax. During the planning of the Civic Arena, there was discussion that "someday, ■ second ice sheet will be needed and this should be built next to the Civic Arena facility." WWle most people would have concluded that the need (demand) would have been some years away, the initial 'success" of the Civic Arena during its first five months ralses the question: Is the need now? 19 Tom Hedges March 29, 1996 Page 2 To support this hypothesis, the following information is provided: 1. The Eagan Hockey Association purchased more ice hours outside of Eagan than at the Civic Arany because there were no more hours to be purchased at our facility. In essence, the Association would be able to consume all of the hours that would be available at a second ice Sheet. 2. The Skating School enrolled over 400 skaters In the lesson skating program, nearly 1,200 for the three sessions combined. This Is a level not expected until the third or fourth year of operation. Consequently, expansion of the program will be very difficult without adding a second ice sheet. 3. Eagan High School is expanding its hockey program. Initially, it was not expected to have a girl's hockey team until the start of the second year at the Civic Arena. Council Members will recall that in June of 1995, creation of a girl's varsity hockey team at Eagan High School became a reality. The School District has recently contacted the City staff to indicate the need for additional ice time to accommodate both the varsity and junior varsity girls program during the coming year, a full two to three years ahead of earlier expectations. Withom s full year of operation, it may be premature to call the Civic Arena a "financial success." However, coached is a financial summary prepared by the City's Finance Department of the Arena through February 29. You will note that before depreciation expense, the Civic Arena has generated an operating income of 455,000. This amount includes 419,400 of non -reoccurring donations. However, Eagan High School also owes approximately $30,000 in ice rental and game fees. These numbers must be tempered somewhat by the realization that there may be some additional expenses that have also not been accounted for, and the realization that the Arena is gust coming out of the most productive revenue months of a skating season `December, January, February) and that fewer numbers of hours are sold during the March/April operational schedule. Council Members will recall that staff has previously stated that it would take at least a full year of operation before the Civic Arena would break even between operating revenues and operating expenses. It appears that the strategy of opening the Civic Arena in October of last year has been highly successful — and the Civic Arena will be able to break even In its JiM year of operation. Typically, a second Ice sheet generates mon = revenue than the first ice sheet in a twin rink combination. This Is because the overhead expense has already been incurred with the operation of ice sheet number one 09 - managerial salaries, telephone, registration expenses, etc.). Staff has prepared a projected budget for the Eagan Civic Arena with an added sheet of ice. This would assume a mid-September to mid-October ice schedule for rink number two. Under salaries and wages, it would be anticipated that during this time frame, there would be an additional Tom Hedges March 29, 1996 Page 3 $30.,000 In wages compared to the existing $157,000 for a full year's operation of rink number one. Comparison for a full year's operational expenditure for rink number one is now estimated at approximately $278,000. Expenditures for rink two are at $97,000 while income is anticipated to be $293,00 compared to $220,000. This means that ice rink number two would net approximately $123,000. Is this revenue that could be applied against the debit service for this revenue bond needed to finance the initial construction. Proltmad Cost Staff would anticipate that project costs for a new civic addition be $1.7 to $2 million. This would include architectural fees, construction, and an additional ice ;resurfacer. Money may also be necessary for additional parking spaces as a result of adding a second sheet of ice. Should the City decide that it would be advantageous to submit a grant, staff would have to provide as part of the application, a schematic design for the second sheet of ice and a site plan. Summary/For Council Discussion Staff is presenting the concept of adding a second ice sheet at the Civic Arena at this time because of the availability of the Mighty Ducks Grant funding in the amount of $250,000. This funding is not expected to be in place beyond 1996. Staff projects that the net revenue from adding a second ice sheet would be approximately $123,00 which could be used to finance debt service on a revenue bond. Early projection for the cost of adding a second ice sheet would be between $1.7 and $2 million. Eagan Hockey Association and Eagan High School would be able to use any additional hours on a second ice sheet. The deadline for a grant application is October 5. 1996. The City would have approximately 1S months from grant award to utilize the funding available. dOWS s ai CMC ARENA INCOME STATEMENT For the Six Months Ended February 29, 1996 OPERATING REVENUES: ke Rental General Admission Arena Program Revenues Arena Merchandise Sales Slate Rental/Sharpening High School Game Receipts Advertising Contributions and Donations Other Total Operating Revenues: OPERATING EXPENSES: Personal Services Supplies, Repairs and Maintenance Electricity Other Services and Charges Total Operating Expenses: OPERATING INCOME BEFORE DEPRECIATION: Equipment and Building Depreciation Expense:* OPERATING INCOME(LOSS) 84,958 21,529 43,198 49,321 5,705 8,272 10,793 19,461 621 243,857 114,203 21,001 22,593 30,719 188,516 55,341 55,783 $ f442� *Note- Delxeciation Expense includes only six months of depreciation on the building. Afull year's depreciation expense on equipment and building is $96,750.00 CMC ARENA BALANCE SHEET February 29, 1996 ASSETS: Current Assets: Cash and cash equivalents Total Current Assets: Property and Equipment Buildings Machinery and Equipment Construction in Progress -Moose Locker Room Total Property and Equipment Less Accumulated Depreciation: Total Property and Equipment - NET $ 37.168 37,168 2,048,296 124,060 44,099 2,216,456 (55,783) 2,160,672 TOTAL ASSETS: $_ 2,197,840 LIABILITIES: Current Liabilities: Accounts Payable 1,413 Sales Tax Payable 771 Total Current liabilities: 2,184 FUND EQUITY: Retained Earnings (442) Contribution from Genz Fixed Assets 2,196,098 Total Fund Equity: 2,195,656 TOTAL LIABILITIES AND FUND EQUITY: $ 2.197.840 ' Some of these funds may be required to cover deficits in fundraising or cost overruns, subject to a final accounting of the construction project a 3 PROJECTED BUDGET EAGAN CIVIC ARENA ADDED SHEET 2 SALARY NA , .S Rink 1 Mink 2 MANAGER $40,155 + 11,364 benefits $0 ASSIST MANAGER $27,195+ $7695 benefits $0 PART TIlVIE EMPLOYEES $405000 $1731000 CONCESSION STAND $11,000.00 $5,000 Concession stand will be open Monday thru Friday from 5:00pm to 10:00pm. On Saturdays and Sundays the hours will be 6:00am thru 10:00pm LEARN TO SKATE DIRECTOR $10,000 $3000 LEARN TO SKATE INSTRUCTORS TOTAL WAGES $157,409 51 Tppmr-S OFFICE SUPPLIES RESURFACER SUPPLIES,REPAIR ICE luLAINTENANCE SUPPLIES TOOLS,POWER TOOLS,NUTS,BOLTS OILS, GREASE, AUTO, SUPPLIES, FILTERS a y $ l 0,000 S5,000 TOTAL WAGES $309000 $2,100 $750 $1,250 $1,250 $1,250 $1,250 $1,000 5500 $ 650 $150 . CUSTODIAL, CLEANING .SUPPLIES COMPUTER SOFTWARE FIRST AID SUPPLIES OPERATING GENERAL SUPPLIES BUILDING REPAIRS WATER TREATMENT CLOTHINGIUNIFORMS CONCESSION STAND SUPPLIES PRO SHOP SUPPLIES PATCHES, FLYERS,POSTERS UTILITIES - ELECTRIC AND GAS $3,500 $ 750 $ 500 $4,300 $2,000 $,2,000 $1,500 $20,000 $2,000 $1,900 TOTAL$ 449700 $42,000 $1000 $500 $250 52,500 $2,000 $850 $500 $10,000 $0 $0 TOTAL $250400 TOTAL UTILITIES $42,000 UTILITIES $32,000 INSMAN _E INSURANCE $5,500 TOTAL INSURANCE $5,500 WIN $5,500.00 $9,500.00 TELEPHONE $1,000 $0 FRINTING,POSTAGE $3,100 SO MOBILE EQUIPMENT $1,500 $0 EQUIPMENT RENTAL $600 $0 INCLEAGE $ 500 SO SCHOOLS AND MEMBERSHIPS $1,600 $0 OTHER CONTRACTS $3,300 51,000 RUBBISHIWASTE 52,500 S500 TOTAL S 14,100 TOTAL $1,500 TOTAL EXPENDITURES RINK 1 52781)709 TOTAL EXPENDITURES RINK 2 597,400 TOTAL EXPENDITURES 5376,109 F% PROJECTED REVENUE RTISING $15,000 TOTAL $293,200 TOTAL $220,750 ' EXPECTED ICE TWIE RATES INCREASE FROM $120 TO $125 THIS REVENUE DOES'NT INCLUDE DRV FLOOR EVENTS SOCCER TURF WOULD GENERATE $ 25,000 PER YEAR, THE COST OF THE TURF IS ABOUT $65,000. a 9 RINK 1 RINK 2 ICE RENTAL 1050 PR VIE HOURS $126,000 300 NON PR N E AT $100.00 $ 30,000 950 PRIIVE TIME HOURS S118,750 NON PRIM E ICE RENTAL $15,000 HIGH SCHOOL SPLITS $7,500 VENDING MACHINES $ 6,000 VENDING MACHTNES $32000 SKATE SHARPENING\ PRO SHOP $ 4,000 SKATE SHARPENING $4,000 CONCESSION STAND $401000 CONCESSION STAND $25,000 OPEN SKATING RECEIPTS $15,000 OPEN SKATING $101000 LEARN TO SKATE PROGRAM $38,500 LEARN TO SKATE $20,000 MENS LEAGUE $11,200 MENS LEAGUE $10,000 ADVERTISING $15,000 ADVE RTISING $15,000 TOTAL $293,200 TOTAL $220,750 ' EXPECTED ICE TWIE RATES INCREASE FROM $120 TO $125 THIS REVENUE DOES'NT INCLUDE DRV FLOOR EVENTS SOCCER TURF WOULD GENERATE $ 25,000 PER YEAR, THE COST OF THE TURF IS ABOUT $65,000. a 9 TOTAL EXPENSES FOR RINK 1 TOTAL EXPENSES FOR RINk 2 TOTAL REVENUE FOR RINK 1 TOTAL REVENUE FOR RINK 2 0-v $278,709 $97,400 $293,200 $220,750 04/18/96 10:47 '8'612 223 3000 SPRINGSTED It Q003/006 E HIM�11 1 ���S.9 i %� ilii; atrnnwMh«iinw« w ills Iooeeea�aaoaeeo if I jl!R 19 f feft O f ti�7 MerN IS i"_i ID51 �i IMA 2stg re �,pppp8$ i trr� 612 223 3C00 04-1B-96 10:33AM P003 S$Q5 04/18/96 10.47 %%612 223 3000 SPRINGSTED 11004/006 o �aeP�os�ss�sssss��s� ills 1000000000*000000009 1 fill r - -------- HIM i tot14-10' Xa��na�� fill drrdrw111 1 1r1r lis/ 612 223 3000 30 I~ 04-18-96 10:33AM P004 #OE 84/18/96 10:48 0611 223 3000 SPRINGStED 11005/006 • ,',AAA qXRCURM w SRR$Rs� 8 Is 4f 612 223 3000 04-1@-96 10g33AM P005 #05 21 84/18/96 10:48 iA�612 223 3000 SPR INMED fit MIZIFIZ1.1 ilia 'r►��:w�.riw�:wrir:r:www'www re lilt 121TRI MIR Q1006/806 ills X0100000000000000000 � ���� Z gg- Nis Ulu 1� n e • 7 1111,111116,11111 lilt all 11 lit 612 223 3000 04-18-96 10:33AM P005 #05 3� POLICE DEPARTMENT MEMO city of eagan DATE: MAY 291 1996 TO: THOMAS L. HEDGES FROM: PAT GEAGAN KEN SOUTHORN SUBJECT: OUTDOOR WARNING SIREN COVERAGE On Sunday May 19, 1996 at approximately 0121 hours the City of Eagan was struck by an extremely strong, fast moving thunderstorm with damaging straight line winds and wide spread power outages. Ironically due to the speed and severity of the storm, we began to experience power outages on Dakota Electric's system at the same time or within minutes of when the outdoor warning sirens were activated. This highly unusual circumstance caused some of our sirens to fail due to lack of power, or to run for only a short period of time before losing power. All of our existing sirens are powered by line power from the electric company, there is no battery or generator backup. As is often the case, a second front entering the city would require activation of the sirens a second time, which would be impossible with our current system. New sirens will be powered by a battery system to provide the redundancy necessary to assure warning under any circumstance. The City currently has eight (8) outdoor warning sirens, the last four sirens were installed in 1982. These were placed at fire station 2, on Elrene Rd. Horth of Great Oaks Trail, on Dodd Rd. & North Hay Lake Rd., and at Rahn & Cliff. At the time, the sirens purchased were state of the art and were located to appropriately to cover the populated / activity areas as they existed then. The population and land use has 33 changed significantly in the last 14 years causing a need to fill in the open areas not covered by the 1982 installation. I have identified four (4) additional sirens sites which will provide optimum coverage for the city and specifically address the outside activity areas and housing areas added since the eight sirens were Installed. The additional sites will leave an extremely small part of the city outside of the recommended coverage radius of the sirens. RECOMMENDED SITES 1. The highest priority area for additional siren coverage is the Diffley & Lexington area, which includes the Lexington • Diffley athletic facility, Northview fields, Patrick Eagan Park and the Capon! Art Park. 2. The second installation would be in the area of Lexington and Yankee Doodle Road, which would provide coverage to Carriage Hills Golf course, O'Leary Lake, Town Center Commercial Area and the New Promenade Center. 3. The third location is on Johnny Cake Ridge Rd. just south of Diffley road. This site will provide coverage to Downing Park, Part of Thomas Lake Park part of the high line trail system and a number of residential neighborhoods. 4. The fourth siren would be placed at the intersection of Blue Cross Road and Ashbury Road on the Sky Hill Park site. This location provides coverage for some of the commercial property 'West of Hwy 13, Sky Hill Park, the Minnesota River Recreational area and number of residential neighborhoods. 1 would recommend that the City council consider placing sirens in at least the first three recommended sites. These locations will bring warning service to the greatest number of people who are currently outside of the coverage radius of the existing sirens. Our recommendation will also provide a limited back up for the current system in the event of a wide spread power outage. 2 3� EQUIPMENT DESCRIPTION All sirens described are battery operated sirens with built in charging systems which will provide the redundancy necessary to assure warning under any situation. There are two types of sirens available to upgrade the outdoor warning system. 1. Electronic sirens - This style of siren utilizes high capacity speakers and sound drivers to create the warning sounds. They are capable of generating a variety of sounds and may also broadcast a voice message. Electronic sirens with voice messaging can be used to give specific instructions to residents, such as storm directions or hazardous materials spill information. There are three options available from different vendors. This style may be either rotating or omni directional. 2. Electro -mechanical sirens - This style is a rotating siren similar to what we have today. The siren utilizes a large blower to create it's traditional sound. This style does not have variable sound or voice capability, but does have a greater range than the some of the electronic sirens. This style is very reliable and has a very long service life. PROJECT OPTIONS AND COSTS Costs associated with the project will vary depending upon the type of siren and quantity desired, costs shown below are based upon quotes for three battery powered sirens. 1. Add electro -mechanical rotating sirens from Federal Signal. This unit produces the traditional siren sound of 1271)b with an effective range of 5280' in all directions. There are no voice capabilities with this siren. This particular unit has a very high reliability and has a useful life of approximately 50 years. The cost per unit for this style is $14,560 with maintenance costs of $38.00 per month. �s 2. Add electronic sirens. Electronic sirens have speakers incorporated into their design and are capable of various siren sounds and voice broadcast. This style of siren is available in a variety of models and coverage ranges. A. One omni directional model, from Federal Signal, has a rating of 121 Db and a coverage radius of 3,400'. This is the newest, and probably more reliable of the electronic sirens from this vendor. The cost per unit is $22,185 with maintenance costs of $54.90 per month. B. A rotating model, from federal Signal, has a rating of 124 Db and a coverage radius of 4,500'. This is the same coverage distance as our existing sirens. This siren is an older technology and more prone to problems than the model above. Cost for this unit is $19,540 with maintenance costs of $58.20 per month. C. Whelen Products offers a rotating siren rated at 126 Db and a coverage of 5,200' in all directions. This siren is currently in use in Apple Valley. They report a very good experience with the sirens which have been in place for a few years. A number of our residents in the South part of the city reported hearing the voice message from Apple Valley's sirens. Cost for this unit is forthcoming from Whelen, but is estimated to be $27,500 per siren. D. Whelen Products also offers a rotating siren like item C. above but without voice messaging. This unit supplies the same 126 Db of sound and covers a radius of 5,200 feet. Cost for this unit is forthcoming from Whelen. The estimate for this unit is approximately $14,200 per siren. DELIVERY: Federal products = approximately 45 days. Whelen products = approximately 11weeks. NOTE: Coverage distances for electronic sirens are appropriate ONLY for the siren, voice messages will not travel as far due to the varied frequency range of the human voice. 4 3� TOTAL PROJECT COSTS Option 1. Electro -mechanical siren. 127 Db. 5,280' radius. Qty. 3 = $43,680.00 plus $114 / month maintenance. Qty. 4 = $58,240.00 plus $152 / month maintenance. Option 2A. Electronic siren 121 Db. 3,400' radius. Qty. 3 = $66,555.00 plus $164.70 / month maintenance. Qty. 4 = $88,740.00 plus $219.60 / month maintenance. Option 213. Electronic siren 124 Db. 4,500' radius. Qty. 3 = $58,620.00 plus $174.60 / month maintenance. Qty. 4 = $78,160.00 plus $232.80 / month maintenance. Option 2C. & 2D. Whelen Electronic siren pricing is not available at this time. MOTE: Pre-recorded messages for any of the above electronic sirens will add a cost of $450 per siren. I would like to reserve recommendation of a specific vendor and model until Whelen has supplied specifications and price quotations. I want to be sure that the new sirens are 100% compatible with our current system. 5 0 C, J 0