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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