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.
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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
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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
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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
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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.
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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
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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
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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
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