05/14/1985 - City Council Speciali v
SPECIAL CITY COUNCIL MEETING
TUESDAY
MAY 14, 1985
6:45 P.M.
I. TOUR OF ROBERT LEWIS HOME/
NICOLS ROAD (Return to Municipal
Center)
II. ADMINISTRATIVE TRANSFER/PRIVATE
CONTRACTS
III. PERSONNEL
a. Public Works Director Update
b. Arthur Young Update
IV. OTHER
V. ADJOURN
MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: MAY 10, 1985
SUBJECT: SPECIAL CITY COUNCIL MEETING
ROBERT LEWIS HOME TOUR
A special City Council meeting is scheduled for 6:45 p.m. at the
Robert E. Lewis Home for the purpose of touring the facility and
discussing the proposed plans and financing of a new Robert E.
Lewis facility. Once the tour is complete, you may wish to spend
a few minutes with the Director and other Community Action Council
staff at the Robert Lewis Home to discuss the newly proposed
facility; the other alternative is to return to the Municipal
Center Building. (For purposes of expediting the meeting, it
might be better to continue the meeting at the Robert Lewis Home
with the understanding that you must be back at the Municipal
Center building by 7:45 or 8:00 p.m. for the remainder of your
agenda). Attached is a copy of a letter that was sent from Frank
Brennan to the City regarding the Robert Lewis Home.
ADMINISTRATIVE TRANSFER/PRIVATE CONTRACTS
At the time the 1985 budget was developed, the City Administrator
recommended consideration of a transfer fee to defray City costs
for public improvement projects that are financed privately. The
Director of Public Works was given the task of developing a
program to consider administrative transfer fees for private con-
tract projects. The administrative transfer fee was not developed
between the time the budget was approved and Tom Colbert resigned
and due to the number of private contracts that are under considera-
tion in 1985, I feel the administrative transfer fee for private
projects should be a top priority and have asked for staff coopera-
tion in preparing an administrative transfer fee for all private
contracts.
With the input from Finance Director VanOverbeke, Acting City
Engineer Hefti, Consulting Engineers Bob Rosene and Jerry Bourdon,
with some research coordination from Jon Hohenstein, I would like
to share some background information.
Eagan's rapid growth implies several things: 1) significant
staff time and effort is expended in the administration of public
improvements for newly platted developments, 2) a portion of
that time and effort is expended on projects which developers fail
to complete, and 31 not all of the associated costs for this
time has been recovered from the benefiting parties. This is
because the costs of projects, particularly privately financed
ones, are billed after the effort has been made. This eliminates
the incentive to pay this obligation, especially if the project is
never completed.
Eagan presently charges a 4% administrative fee to cover City
and consultant costs on all publicly -financed projects. This
amount is rolled into the bonded debt and is divided among the
property owners when the assessments are spread. Since the ,City
has controlled the financing mechanism, costs are generally recover-
able from completed projects. If the project fails before comple-
tion and the associated assessment of costs, developers are reluc-
tant to pay costs or, in some cases, are unable to pay them.
Conversely, the City has even fewer guarantees in the case of
privately -financed projects. Private contracts are billed for
consultant time. City staff time -codes the work done on private
contracts, but that time has not been billed out to date. Not
only are some of the costs absorbed in the City's operating budget,
but those that are billed are not certain of collection. Again,
if the project is not completed, developers have less incentive
to pay the costs incurred. Therefore, staff and the consulting
engineer have determined that a system to insure payment at the
outset would serve the public interest without raising the cost
billed to the developer.
The final touches of a tier/escrow arrangement for handling admin-
istrative fees for private contracts is being finalized by the
City Administrator and Director of Finance. Time is not allowing
the report to be compiled for advance review by the City Council;
however, City Council familiarity with administrative transfers
and the whole development process should allow for a rather fast
absorption at the meeting on Tuesday. Since Northwest Orient
and other large developers are proposing private contracts during
the month of May and June, it is advantageous to work out some
type of tier/escrow arrangement at this time so we can guarantee
cost recovery for City staff time. There is.urgency for giving
consideration to this item. The City Administrator will provide
some handouts on Tuesday with overheads for a brief presentation
and discussion. The Director of Finance and Acting City Engineer
will both be present for the City Council work session.
City nistr�`-
0
1
1'
• Community Action Council, Inc.
14451 County• Road 11
Burnsville, Minnesota 55337
(612) 431-2112
A United Wav Agency
Founded 1970
Francis B. Brennan
Executive Director
April 23, 1985
The Honorable Mayor Blomquist
City Council Members
City of Eagan
3795 Pilot I:nob Road
Eagan, MN 55122
COMM[ NITYACTIONCOUNCIL
Dear Mayor Blomquist: f
I have spoken recently to City Administrator Tom Hedges regarding
proceeding further with plans for the new battered women's shelter to
be constructed in Eagan.
I indicated to him that I would like to ask for time at an upcoming Council
workshop to talk about plans and costs of the building. In doing this we
would be bringing you, as per your request, revised design plans and projected
construction costs. These projected construction costs are ore -bid and
estimated by the architect at this time.
In the recent past we gave the City Administrator, Tom hedges, a tour of the
current facility. He indicated that this was tremendously helpful to him
since it described the total program as it operated. Since the tour of the
facility was so helpful to Tom, I am respectfully requesting that you and
the City Council members come and take a tour of the current facility. I
know that it will be helpful in understanding the program and its needs. A C'
tour would take about 30 minutes and could be done prior to the workshop at
which you have our project as a discussion item.
If this would be desirable, I would be glad to make the necessary arrangements.
Frank B. Brennan
Executive Director
FBB:ds
cc: Tom Hedges, City Administrator
Programs
Armful of Lore
H. Robert Lewis House
Chemical Dependency Prevention
Clothes Closet
Dakota Help Line
Dakota Sexual Assault Services
Day Care Referral
Emergency Assistance
Emergency Food
Emergency Transportation
Furniture Bank
H. E. R. S. '//
r
Multi Service Center
One-up
Peer Counseling
Rent Assisrance
V. 1. T.A.
Ynuth Opportunities
B. Robert Lewis House
4750 .Yicols Road
Eagan, Minnesota 55127
(617) 452-138
i v
SPECIAL CITY COUNCIL MEETING
TUESDAY
MAY 14, 1985
6:45 P.M.
I. TOUR OF ROBERT LEWIS HOME/
NICOLS ROAD (Return to Municipal
Center)
II. ADMINISTRATIVE TRANSFER/PRIVATE
CONTRACTS
III. PERSONNEL
a. Public Works Director Update
b. Arthur Young Update
IV. OTHER
V. ADJOURN
MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: MAY 10, 1985
SUBJECT: SPECIAL CITY COUNCIL MEETING
ROBERT LEWIS HOME TOUR
A special City Council meeting is scheduled for 6:45 p.m. at the
Robert E. Lewis Home for the purpose of touring the facility and
discussing the proposed plans and financing of a new Robert E.
Lewis facility. Once the tour is complete, you may wish to spend
a few minutes with the Director and other Community Action Council
staff at the Robert Lewis Home to discuss the newly proposed
facility; the other alternative is to return to the Municipal
Center Building. (For purposes of expediting the meeting, it
might be better to continue the meeting at the Robert Lewis Home
with the understanding that you must be back at the Municipal
Center building by 7:45 or 8:00 p.m. for the remainder of your
agenda). Attached is a copy of a letter that was sent from Frank
Brennan to the City regarding the Robert Lewis Home.
ADMINISTRATIVE TRANSFER/PRIVATE CONTRACTS
At the time the 1985 budget was developed, the City Administrator
recommended consideration of a transfer fee to defray City costs
for public improvement projects that are financed privately. The
Director of Public Works was given the task of developing a
program to consider administrative transfer fees for private con-
tract projects. The administrative transfer fee was not developed
between the time the budget was approved and Tom Colbert resigned
and due to the number of private contracts that are under considera-
tion in 1985, I feel the administrative transfer fee for private
projects should be a top priority and have asked for staff coopera-
tion in preparing an administrative transfer fee for all private
contracts.
With the input from Finance Director VanOverbeke, Acting City
Engineer Hefti, Consulting Engineers Bob Rosene and Jerry Bourdon,
with some research coordination from Jon Hohenstein, I would like
to share some background information.
Eagan's rapid growth implies several things: 1) significant
staff time and effort is expended in the administration of public
improvements for newly platted developments, 2) a portion of
that time and effort is expended on projects which developers fail
to complete, and 31 not all of the associated costs for this
time has been recovered from the benefiting parties. This is
because the costs of projects, particularly privately financed
ones, are billed after the effort has been made. This eliminates
the incentive to pay this obligation, especially if the project is
never completed.
Eagan presently charges a 4% administrative fee to cover City
and consultant costs on all publicly -financed projects. This
amount is rolled into the bonded debt and is divided among the
property owners when the assessments are spread. Since the ,City
has controlled the financing mechanism, costs are generally recover-
able from completed projects. If the project fails before comple-
tion and the associated assessment of costs, developers are reluc-
tant to pay costs or, in some cases, are unable to pay them.
Conversely, the City has even fewer guarantees in the case of
privately -financed projects. Private contracts are billed for
consultant time. City staff time -codes the work done on private
contracts, but that time has not been billed out to date. Not
only are some of the costs absorbed in the City's operating budget,
but those that are billed are not certain of collection. Again,
if the project is not completed, developers have less incentive
to pay the costs incurred. Therefore, staff and the consulting
engineer have determined that a system to insure payment at the
outset would serve the public interest without raising the cost
billed to the developer.
The final touches of a tier/escrow arrangement for handling admin-
istrative fees for private contracts is being finalized by the
City Administrator and Director of Finance. Time is not allowing
the report to be compiled for advance review by the City Council;
however, City Council familiarity with administrative transfers
and the whole development process should allow for a rather fast
absorption at the meeting on Tuesday. Since Northwest Orient
and other large developers are proposing private contracts during
the month of May and June, it is advantageous to work out some
type of tier/escrow arrangement at this time so we can guarantee
cost recovery for City staff time. There is.urgency for giving
consideration to this item. The City Administrator will provide
some handouts on Tuesday with overheads for a brief presentation
and discussion. The Director of Finance and Acting City Engineer
will both be present for the City Council work session.
City nistr�`-
0
1
1'
• Community Action Council, Inc.
14451 County• Road 11
Burnsville, Minnesota 55337
(612) 431-2112
A United Wav Agency
Founded 1970
Francis B. Brennan
Executive Director
April 23, 1985
The Honorable Mayor Blomquist
City Council Members
City of Eagan
3795 Pilot I:nob Road
Eagan, MN 55122
COMM[ NITYACTIONCOUNCIL
Dear Mayor Blomquist: f
I have spoken recently to City Administrator Tom Hedges regarding
proceeding further with plans for the new battered women's shelter to
be constructed in Eagan.
I indicated to him that I would like to ask for time at an upcoming Council
workshop to talk about plans and costs of the building. In doing this we
would be bringing you, as per your request, revised design plans and projected
construction costs. These projected construction costs are ore -bid and
estimated by the architect at this time.
In the recent past we gave the City Administrator, Tom hedges, a tour of the
current facility. He indicated that this was tremendously helpful to him
since it described the total program as it operated. Since the tour of the
facility was so helpful to Tom, I am respectfully requesting that you and
the City Council members come and take a tour of the current facility. I
know that it will be helpful in understanding the program and its needs. A C'
tour would take about 30 minutes and could be done prior to the workshop at
which you have our project as a discussion item.
If this would be desirable, I would be glad to make the necessary arrangements.
Frank B. Brennan
Executive Director
FBB:ds
cc: Tom Hedges, City Administrator
Programs
Armful of Lore
H. Robert Lewis House
Chemical Dependency Prevention
Clothes Closet
Dakota Help Line
Dakota Sexual Assault Services
Day Care Referral
Emergency Assistance
Emergency Food
Emergency Transportation
Furniture Bank
H. E. R. S. '//
r
Multi Service Center
One-up
Peer Counseling
Rent Assisrance
V. 1. T.A.
Ynuth Opportunities
B. Robert Lewis House
4750 .Yicols Road
Eagan, Minnesota 55127
(617) 452-138