Loading...
02/06/1996 - City Council SpecialAGENDA SPECIAL CITY COUNCIL MEETING Tuesday February 6, 1996 5:00 P.M. Municipal Center Building L ROLL CALL & ADOPTION OF AGE] H. VISITORS TO BE BEARD M. REVIEW CIVIC ARENA DRY FLOOR PROGRAM IV. HYDRANT USE POLICY V. GENERAL DISCUSSION '1n OTHER BUSINESS ADJOURNMENT MEMO �1 city of eagan TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: FEBRUARY 2, 1996 SUBJECT: SPECIAL CITY COUNCIL MEETINGITUESDAY, FEBRUARY 6, 1996 A Special City Council meeting is scheduled for Tuesday, February 6, 1996 in the Conference Rooms, second floor, Municipal Center building. Please note that Special City Council meetings will be moved from the lunchroom to either Conference Rooms, Community Center Room or Council Chambers to take advantage of the better visual aids. REVIEW CIVIC ARENA DRY FLOOR PROGRAM When the Civic Arena project was approved by the City Council, it was with the understanding that the facility would be used for related ice skating events during the fall, winter and spring months and for dry floor activities during late spring/early summer months. Since the facility is new, the City Council asked to review the schedule, rates and general operations of the Civic Arena as pertained to hockey, figure skating, learn to skate and other programming activities. Since the Civic Arena Dry Floor Program is completely new to our community, it seemed appropriate that a .memo be shared with the City Council about the type of programming that will occur, i.e. a South of the River Home and Recreation Show. As stated at the recent workshops, there is no formal presentation planned for this item. If the memo represents the type of direction and events the City Council would like, there may be no need for any Council discussion on this item. Since this is a new program/service to the community, once there is a concurrence by the City Council, it will be reviewed as a part of the operating budget process Pike all other government services and not reoccur for special consideration at a work session or regular meeting, Enclosed on pages_ through is a copy of the memo. ACTION TO BE CONSIDERED: To provide a consensus on the Civic Arena Dry Floor Program as presented. HYDRANT USE POLICY Enclosed on pages through is a memo reviewing the policy for water hydrant use. There have been occasions when contractors have asked for deviation from the Hydrant Use Policy. As a result, staff has prepared a memo for Council review. This policy is being presented to the City Council for consideration and direction. ACTION TO BE CONSIDERED: To provide direction to the staff regarding the proposed Hydrant Use Policy. GENERAL DISCUSSION The City Attorney has been asked to attend the Special City Council meeting to provide a general response to questions that were raised at the last work session regarding the use of public funds for not-for-profit organizations. This pertains directly to the Caponi Art Park and AIDS Hospice proposals. Certainly, the time can be spent with the City Attorney for a general legal update. OTHER BUSINESS If time permits, the Council can use this time for general discussion. ADJOURNMENT /S/ Thomas L. Hedges City Administrator 4 city of eagan DATE: February 2, 1996 TO: Tom Hedges, City Administrator FROM: Ken Vraa, Director of Parks and Recreation SUBJECT: Civic Arena Dry Floor Event; South of the River Home,Garden and Recreation Show Council Review and Approval MEMO The issue before the City Council is to approve having the Civic Arena sponsor a Home, Garden and Recreation Show as a dry floor event at the Civic Arena. Background The general direction the Civic Arena has been following has been to rent the facility for dry floor events, not to promote or produce an event in the facility. The Home, Garden and Recreation Show would be a clear departure from this practice and direction. Event Outline Show exhibitors would be offered a 10' by 8' booth at a charge of between $200 and $250. Exhibitors would have to be in the home improvement, gardening or recreation related business to rent a booth (although there has been some discussion as to the merits of having civic organizations also participate, if they wish to). The event would be Friday, May 17 through Sunday, May 19. The public would be charged a nominal admission fee to enter. Admission tickets would be given to each space exhibitor as part of their rental fee, which they could then distribute to their customers or clients as they so desire in an effort to help promote the event. As part of the event, there would be educational seminars on home improvements and gardening spread out during the weekend. Entertainment could also be part of the scheduled activities. The Civic Arena would also open its concessions. 3 Cost Consideration Staff has calculated that the Civic Arena could hold approximately 125 booths. If these are rented at between $200 and $250 each, it would produce a revenue of between $25,000 and $31,250. Some exhibitors may require more than one booth and part of the pricing package could be a reduction in rate for more than one booth. Additional revenue could also be gained by renting electrical service for each of the booths requiring this service. As to expenses, staff has been in contact with a show promoter who would make contact with the various organizations and groups who may wish to exhibit at this event. 1. Promoters have typically taken on these types of activities for a fee plus a percentage of revenues generated per booth sold. This expense would cost between $3,000 and $4,000. 2. Curtains, tables and chairs for the booths. This is a rental expense and would cost approximately $4,500 based on 125 booths. 3. Advertisement for the event. A significant amount of advertising would need to be provided both on radio and through the written press. Staff has allocated $5,000 to meet this need. 4. Event staffing. The event would require the payment of staff overtime, additional janitorial and maintenance services not previously accounted for within the Civic Arena budget. Consequently, we have allocated $1,500 for event staffing. This number could be higher if it is determined that security, through an outside agency, might also be necessary. 5. It is likely that electrical service for many of these booths will be required. The Civic Arena has sufficient electrical power, but would have to run additional electrical lines onto the Civic Arena floor to provide for those wishing this service. Staff has not had an opportunity to develop or work with an electrical contractor to determine a specific number, but at this time $3,000 is being projected. 6. Other. Within this category, there are miscellaneous costs such as the printing of tickets, carpet runners and additional insurance to run this activity. Without a significant amount of experience to generate an estimate, staff is projecting these expenses at $1,500. In total, staff believes that the operational expense for the show would run between $17,000 and $20,000. There is significant revenue potential with this event. In addition to the booth rental, additional revenues could be generated through electrical rent, concessions, and admission. These are not likely to be significant dollars because the intent would be to attract as many people as possible and therefore admission fees should be minimal. Distribution of free admission tickets would be encouraged. Discussion Council may wish to discuss any of the following areas before making a recommendation as to this event. 1. Should the Civic Arena be in the event promotion business? Until this time, the Civic Arena has only promoted skating programs. It has generally been implied that the Civic Arena would not be promoting activities within the facility but would allow community groups to organize and promote their own for profit or not-for-profit activities. The issue remains; should the Civic Arena promote a dry floor event? 2. There is a financial risk if this event fails to materialize or relatively small numbers of exhibitors are attracted to the event. Civic Arena Manager Burkart has tried to put out feelers to various groups to see if they would be interested in such an event. Dakota Electric, Knox, a home heating contractor, and others have expressed some general interest in such an event. However, it is always easier to say you are interested in something when a commitment is not asked for. If the event is not able to attract a sufficient number of exhibitors prior to a pre -established cut-off date, the show could be cancelled. However, the City would incur an expense associated with the show promoter and the time and effort put into the project. As previously mentioned, the show promoter could cost as much as $3,000. Another down -side would be if the event attracted some exhibitors but not a sufficient number to fill the available spaces. Expense of the show promotion and advertising would continue. The curtain expense would be a variable cost, because there would only be enough curtains to satisfy those exhibitors. Staffing would continue at its previous level, and so there would be both fixed and variable expenses that would be incurred. The question is, would there be sufficient revenues to cover the expenses generated? Staff is trying to calculate a break even point and establish a pre-set number of booths that would have to be sold by a pre -established date in order to make a commitment to proceed. This would minimize the "down -side" risk of the activity, but it needs to be understood that there could be a loss. 3. There are some benefits to having this activity in the Civic Arena which remain largely a community relations issue. Making the Civic Arena available for non -ice events demonstrates to the community that it is not just a "hockey rink". There would also be the benefit of attracting people who are non ice related individuals to the facility. 4. It takes a while to generate interest in any activity. The first time an event is held, it is difficult to attract individuals. Second, third, or fourth year events tend to be more successful. Consequently, should the Council take the perspective that even if the activity does lose money the first year, we could look to future years for potential revenue. S Summary Staff is asking the City Council to approve or disapprove the Civic Arena promoting a home, garden and recreation show the weekend of May 17, 18, and 19. Revenues would be generated for the rental booths to be 10' by 8' in size with the potential of generating $25,000 and $31,000. Additional revenues could be gained through concessions and admission sales. Expenses for the show would be the show promoter, i.e. - selling of booths to exhibitors, curtain and table rental, events staffing, advertising, electrical set-up and miscellaneous expenses. There are various risks involved with this activity as well as several positive elements in addition to potential revenues that could be gained. cc: Todd Burkart, Civic Arena Manager r31kv 21.96 Akkk WITP .—city of eagan MEMO TO: MAYOR & CITY COUNCIL C/O THOMAS L HEDGES, CITY ADMINISTRATOR FROM: THOMAS A COLBERT, DIRECTOR OF PUBLIC WORKS DATE: FEBRUARY 2,1996 SUBJECT: PRIVATE USE OF CITY HYDRANTS ISSUE Over the years, the City has been contacted by builders, developers., contractors and business owners requesting permission to connect to a City fire hydrant for a temporary supply of water for building construction, dust control, turf irrigationtfertilization, etc. APPLICABLE CITY CODES City Code 3.20, Subd. 8. OPENING HYDRANTS. It is unlawful for any person, other than members of the Fire Department or other person duly authorized by the City, in pursuance of lawful purpose, to open any fire hydrant or attempt to draw water from the same or in any manner interfere therewith. It is also unlawful for any person so authorized to deliver or suffer to be delivered to any other person any hydrant key or wrench, except for the purposes strictly pertaining to their lawful use. (Effective date 1-1-83) PURPOSE The original intent and purpose of this code was to reserve the use of City fire hydrants for fire suppression and water system maintenance only. Previous private connections to fire hydrants had resulted in occasional damage to hydrants rendering them unusable for their primary purpose and resulting in costly repairs. CURRENT PROCEDURE With the enactment of that City Code, the Public Works Utility Division established three permanent and one temporary Water Fill Stations available for Commercial Public use. These were constructed with the appropriate anti -syphon backflow prevention devices to protect the quality of our water supply from any potential contamination of chemical fertilizer tankers, etc. These public water fill stations were located at: a) Cliff Road Water Treatment Facility (Cliff & Pilot Knob Road); b) Lexington Booster Station (Lexington & Diffley Road); c) Coachman Water Treatment Facility (Coachman & Yankee Doodle Road); and, d) a seasonal portable fill station (Wescott & Dodd Road). The current cost of water from these commercial water fill stations is 25¢/750 gallons. (1996 Fee Schedule is $1..05/1,000 gallons.) In response to past requests, City staff has done the following: 1. Informed the applicant of the rationale behind the City Code in trying to protect the City's public facilities. 2. Identified and encouraged use of the City's designated water fill stations. 3. Encouraged and worked with the applicant to obtain water through the buildings metered supply system or put a temporary meter on the private water service line. OTHER COMMUNITY'S PRACTICE Currently, the cities of St. Paul, Minneapolis, and Bloomington have a program providing private connection and use of public hydrants. A survey of other suburban communities will be available at the February 6 Workshop session. COUNCIL CONSIDERATION In response to continued requests from the business/development community, does the City Council want to direct the City staff to revise the current City Code to allow the private use of City hydrants through a permit procedure. If so, direction should be given as to what extent permit fees, security deposits, and water use fees are levied. If the Code is revised and a permit structure is authorized, staff would offer the following for Council's consideration. 5/8ths" METER 1'/z" METER Permit Fee $50.00 Permit Fee $50.00 Demand Charge/Inspection 40.00/mo. Demand Charge/Inspect. 40.00/mo Security Deposit 250.00 Security Deposit 500.00 Use Charge $17.40/10,000 gallons + $1.05/1,000 gallons Use Charge $17.40/10,000 gallons + $1.05/1,000 gallons SUMMARY In accordance with past Council suggestions, this issue is being brought to the City Council for discussion before extensive work is put into preparing revisions to current City Codes and policies which potentially impact the business and development communities. Res I1,r submitt d, cc: Wayne Schwan, Superintendent of Utilities Mike Foertsch, Assistant City Engineer Director of Public Works TACfy