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09/14/2006 - City Council Special (2)• - AGENDA SPECIAL CITY COUNCIL MEETING THURSDAY SEPTEMBER 14, 2006 5:30 P.M. EAGAN ROOM — CITY HALL . I. ROLL CALL AND AGENDA ADOPTION II. VISITORS TO BE HEARD .III. CANVASS BALLOTS FOR SEPTEMBER 129 2006 PRIMARY ELECTION (MAYOR &CITY COUNCIL • CANDIDATES ONLY) a, IV. WINDOW SIGN TASK FORCE RECOMMENDATION V. PROPOSED 2007 PUBLIC UTILITY ENTERPRISE BUDGETS: ■ Water ■ Sanitary Sewer ■ Street Lighting ■ Storm Drainage ■ Water Quality VI. CASCADE BAY BUDGET p� VII. EAGAN COMMUNITY CENTER BUDGET i VIII. OTHER BUSINESS IX. ADJOURNMENT • Agenda Memo September 14, 2006 Special City Council Meeting III. CANVASS BALLOTS FOR SEPTEMBER 12, 2006 PRIMARY ELECTION (MAYOR AND CITY COUNCIL CANDIDATES ONLY) i ACTION TO BE CONSIDERED: Certify the results of the September 12, 2006 Municipal Primary Election . FACTS: • State law provides that within two days after the primary election, the governing body of the municipality shall "canvass the returns, and the two candidates for each office who receive the highest number of votes, or a number of candidates equal to twice the number of individuals to be elected to the office, who receive the highest number of votes, shall be the nominees for the office named. • ATTACHMENTS: Election results will be distributed at the meeting on Thursday. Agenda Information Memo September 14, 2006 City Council Workshop X., WINDOW SIGN TASK FORCE RECOMMENDATION DIRECTION REQUESTED OF THE CITY COUNCIL: To receive the recommendation of the Eagan Window Sign Task Force and to direct consideration of the matter to the Advisory Planning Commission for consideration of an amendment of the City Code section regulating window signage. FACTS: • The Eagan City Code Section 11.70 establishes the standards under which signs are regulated within the City of Eagan.As is the case with most local government sign codes, Eagan's Code regulates the. time, place, size and manner in which signs may be displayed. The code has been applied to wall signs,, monument signs, pylon signs, directional signs and temporary signs for some time. • In 2005, the City Council directed the Advisory. Planning Commission and staff to study possible changes in the regulation of temporary signs and additional: regulation for window signage. The City Council also directed the process to include communications with the business community, which was done through the Chamber of Commerce and by other means, to invite comment and input regarding the possible changes. The Chamber and a number of businesses provided input during the Advisory Planning Commission process. The Code amendment was adopted in the summer of 2005. • In early 2006, City staff distributed a letter to business property owners advising them of the changes. At that time, City staff and the Chamber of Commerce received a number of questions and concerns regarding the implementation of the new regulations for window signage. While prospective window sign regulations were included in the communications distributed in 2005, a number of businesses indicate that they were not aware of the actual consequences of the code amendment for their businesses until the 2006 correspondence outlined the process for compliance with the code. • In response to the concerns raised, the City Council took input from the business community at a workshop meeting on March 14, 2006. At that time, the Council directed the formation of a Task Force to revisit the window sign provisions that had been adopted in 2005 to consider recommendations for retaining and/or modifying the requirements. The Council directed staff to postpone enforcement of those provisions until completion of the Task Force review. The Task Force was appointed on March 21, 2006 and met between April 4 and June 6, 2006, at which time a recommendation was prepared. The Council's workshop 'schedule for the summer resulted in the item coming back to the Council for .consideration a at this time. ATTACHMENTS: • • Staff memo of Septem er 7, 2006 summarizing Task Force recommendations on pages through • Window Sign Task Force Meeting Notes on pages through • City Attorney's memo of June 20, 2006 regarding implementation steps on pages through ?. • 0 0 C7 City of Eagn Me TO: TOM HEDGES, CITY ADMINISTRATOR FROM: JON HOHENSTEIN, COMMUNITY DEVELOPMENT DIRECTOR DATE: SEPTEMBER 7, 2006 SUBJECT: WINDOW SIGN TASK FORCE RECOMMENDATIONS The Eagan, Window Sign Task Force completed its work on Tuesday, June 6, 2006 with consensus to forward a recommendation to the Eagan City Council for further modifications of the City's Sign Ordinance as it pertains to window signs. The recommendation that is forwarded to the Council includes the notes from the Task Force meetings, this memo and a memo from the City Attomey's office dated June 20, 2006 that overviews an implementation procedure for use at such time as the amendment occurs. The City Council's consideration of this recommendation is scheduled for its workshop meeting of September 14. As we have discussed, the Council, will then direct the issue to the Advisory Planning Commission for a public hearing on the amendments, after which the Commission's recommendation will be returned to the Council for final action. Task Force Recommendation Over the course ' of the Task Force meetings, a consensus was reached on the following recommendations: e Removal of 4-6' clear zone restriction — It was concluded that visibility into and out of businesses could be addressed through the percentage coverage without a 4-6' clear zone. e Up to 60% window coverage — The group concluded compromising at 60% would balance the needs expressed by the participants. e Window signs would be defined as a sign either applied to the inside surface of a window or within 18" of the window surface. The group concluded that ,a sign on the window or placed inside the business, but clearly visible through the window, would meet the definition of a sign. e . Method of measurement — Staff provided information about the methods of measurement of signs — in particular the concept of a shape enclosed by no more than 12 sides. After this explanation, the, consensus was that the current approach to sign measurement is acceptable. • Grandfathering — The group . agreed that some mechanism for • grandfathering existing signage in excess of the 60% maximum should be developed. The City Attorney's memo of June 20, 2006 outlines a.proposed implementation approach involving "exemptions" for properties that currently exceed the 60% coverage with a phase out schedule under which all properties would need to come into conformance with the new standards within a set time period. The period of seven (7) years was recommended. • Exemptions instead of permits — It appears that most businesses' existing signage would comply with the 60% coverage standard. That being the case, rather than implementing, a permit process for a large number of businesses that already comply, the recommended approach is the exemption process for the much smaller number of businesses that cannot or wish not to comply in the short term. At the close of the Task Force's work, one open issue remained, which members indicated would be addressed through the City Council and Planning Commission consideration of the matter: • Whether area of window signage will count toward the 20% maximum signage permitted on a building side One of the original reasons the Council noted for considering window sign regulations was that the permitted signage on the side of a building is 200/6 and some businesses use both large building signs and a substantial amount of window. signage, such that the total signage for the business may exceed 200A of a building side. In response, the original amendment of the sign code required the area of window signs to be included within the 20% calculation for the wall side. • The Task Force did not reach a conclusion on this issue, based on discussion outlined in the Meeting Notes of June - 6. Business representatives indicated a preference for not requiring window signs to fall within the 20% calculation. Other participants suggested other positions. • The Councilmembers participating in the Task Force indicated that this. issue should be presented for final recommendation and consideration by the Planning Commission. and Council. Communication of Revised Window Sign Regulations In 2005, the City used a variety of tools to communicate the potential changes to the community at large and the business community. When businesses came forward this winter regarding the changes, one of the questions was how best to communicate any additional changes, moving forward. The Task Force reviewed the following list of tools to determine whether any additional means of distributing information about the amendments. The only additional resource noted was to continue to use the mailing list that was compiled, from the group that attended the February Council workshop. That group received notices of the Task Force meetings. • The following communication tools were used in 2005: • Chamber of Commerce Weekly Email Updates • Eagan Business Council. Meetings • Mayor's Breakfast • Eagan Business News Newsletter •, City Newsletter • City Website • Direct mailings to businesses that had been the subject of enforcement actions in the past • Press Release — Stories were published in the Eagan Sun Current and Pioneer Press • Planning Commission Workshops and Regular Meetings • Conversations with Businesses As this matter is brought forward for further consideration by the Council and Planning Commission, the same tools will again be used to communicate meeting dates for those interested in participating in the discussions. • C7 MEETING NOTES WINDOW SIGAGE TASK FORCE MEETING APRIL 4, 2006 • Task Force members in attendance: Dave Perrier, Perrier Wines & Spirits; Jack Johnson,, Cartridge World; Ruthe Batulis, NDC Chambers of Commerce; Buzz Anderson, Minnesota Retailers Association; John Curlee, State Farm Insurance, Advisory Planning Commission members Ted Gladhill and Gary Hansen; and City Councilmembers Cyndee Fields, and Mike Maguire. Present in the audience: Wes Hallberg, Yocum Oil. Company representative and owner/operator of the Holiday Stationstore at Cliff and Thomas Center Drive, and a representative of the Diffley/Lexington Great Clips. City staff in attendance: Community Development Director Jon Hohenstein .and City Planner Mike Ridley. Community Development Director Jon Hohenstein opened the meeting by providing background information on the Sign Ordinance and the reason for the meeting today. Cyndee Fields stated that she is awar&,the City needs to listen and is interested in • finding a balance between'Wsiness needs and the City's needs. Mike Maguire spoke about the need to find a: balance between community needs and the business needs, as well: Buzz Anderson asked where the Sign Ordinance came from and why. He stated that he has lived ' in Eagan forover 15 years and has never heard any complaints about signs. Councilmember Fields responded that she has had concerns shared with her that are not, typically, relative to a specific development item.. Councilmember Maguire echoed the same and stated he has has also received complaints (mostly while attending civic events such as the 4th of July celebration) that are not in writing but in passing where someone will mention a concern about too much • I •signage. That, in addition, he stated to the City Council's review regarding upgrading material finishes in the commercial/retail areas brought the window signage issue to light while .the Council was reviewing photos of same businesses, but located in different cities. Jon Hohenstein commented on the inception of the City Council's direction to the Planning Commission to review window signage and the Council's. desire to obtain a level playing field. Dave Perrier remarked that there was not a lot of'input from the audience when the Planning Commission held its Public Hearing.:,on this ordinance amendment., He went on to say that he. would like to know exactly what; it, is the ..-:City wants and stressed the importance of having the City understand what the business needs are. Mike Maguire spoke about an outcome he hopes balances: °everyone's needs. He • specifically spoke to the rationale behind the 4' 6clear zone and how that related to the best management practice;in the public safety community. Jon Hohenstein commented that, it is not unusual for people unfamiliar with City meetings and public hearings. to not understand when it is appropriate to speak. He. also said'`#hat that was>the purpose for the communication efforts the City made with press releases, weekly articles in both the local paper and the St. Paul Pioneer Press, information in the Eagan Business Newsletter, and the inclusion of Chamber President Ruthe Batulis and -.her abiliW"to mass email multiple businesses. Mr. Hohenstein explained thatall of the communications lead up to a February meeting of the Planning Commission where interested parties were invited to testify regarding the proposed Ordinance Amendment. He further stated that based on testimony received in February, modifications were made to the Draft Ordinance Amendment for which the Planning Commission held a Public Hearing in April. Additional testimony • was received at that meeting and, the item was carried over to the May Planning 2 Commission meeting to allow further modifications based on business community concerns. John Cudee stated that the group was spinning its wheels . trying to figure out the communications breakdown and proposed, to move forward. He would like to startwith just some simple points for the group to consider: 1) _Keep it simple. 2) The clear zone which is at eye level a prime location for business I.D. and :information. 3) Window space generally is a prime location for business promotion, '4)..If there is going to be a permit and/or fee, would existing businesses with existing signs` be grandfathered? 5) What is the criteria and interpretation relative to -enforcement? %; ,"" Would corporate branding be allowed? 7) The importance of consistency with enforcement.:... Buzz Anderson said that he doesn't understand the'V.6' clear zone and wondered if it was necessary. He questioned that if ho. one can see into a,bank, and other businesses choose to have curtains/blinds or don't have window space at':all, how does that line up with the public safety concern of seeing; in and'out of a, building? Jon Hohenstein commented that it was simply,a best management practice provided by public safety and wasn't a code requirement, :but as part of, the window signage amendment effort, it was included. Mike Maguire agreed,*ith Hohenstein and commented that a 4'-6' clear zone was not a bottom line issue to him Dave Perrier commented that some businesses, particularly national, have unique or recognizable buildings„or architecture that result in the building essentially being a logo. He asked if he could -,.6 imply tell the group what his business needs? Mike Maguire stated he was open to that suggestion. 3 .7 U C7 • Ted Gladhill commented that the Planning Commission and Council typically deal with infill issues where either retail wasn't originally intended or its coming into a space now, that is in close proximity to existing neighborhoods. Wes Hallberg, commented that small business can't compete with large businesses or national chains from the standpoint of marketing budgets. Jack Johnson commented that the 4'-6' clear zone was an impediment on his business operation and that signage he installed on a permanent wall approximately 3' back from the side windows illustrates the concern of interpretation :and enforcement. Dave Perrier said that given the fact that vehicles; can park,,An front of his tenant space, he needs visibility over those parked cars out front'and`Vent on to state that he needs window signage to get people into the ;store by alerting them of specials currently being offered. He went on to say that the City should be concemed';only with what people can • see. from the public right-of-way. John Curlee commented that. "corporate branding is important, that window signage is important for promotions,:,and `:that he chose retail center intentionally because of traffic generated and, as`.:'such, pays a > higher rent and higher taxes. He says businesses would like°to, maximize their retail space and would like the ability to put signage in a window announcing promotions, for example. Buzz Anderson.: commented that he represents businesses of all sizes, but small business is more'affected'by City regulations regarding advertising and promotion. His organization sees more and more cities infringing on more businesses and they don't belong there. Cyndee Fields commented that the bill the Retailers Association had before the Legislature isn't appropriate because it takes local control away from cities and tries a • "one size fits all" statewide. F11 W /15 Jon Hohenstein commented on future meetings. • Buzz Anderson asked if there is a bottom line. Mike Maguire stated that he would like to limit the number of meetings, cover more ground at each meeting, and said there is not a bottom line. Cyndee Fields asked if permits are a big issue. . John Curlee stated that permits are a big deal Mike Maguire suggested that advertising is okay, yet ;interpretation (Le. products back from windows) needs to be looked at There was a brief discussion about the 26% wall coverage maximum. • Buzz Anderson asked'if the 209/ was negotiable. Mike Maguire stated that it was not, that portion of the Code has existed for many years and it is not part of the charge of; the City Council to the Task Force. Jon Hohenstein stated that it might be helpful for the group to understand exactly what part of the new ordinance is most troubling for the business owner in attendance. J John Curlee suggested that Ruthe Batulis email some businesses on the issues and recommended the following points for future discussion: 1) criteria and interpretation; 2) percentage, 3) permit issue, 4) grandfathering and how it will be enforced. Ted Gladhill stated there should be a limit that creates fairness in competition., U W • Mike Maguire summarized three things he would like from the standpoint of information for the next meeting: 1) He requested Task Force members representing the business community provide pictures/examples of signs that would need to be altered to comply with the ordinance as it exists today.. 2) What are the specific ordinance language changes the businesses would like to see? 3) Is there a balance that can be struck? Discussion occurred relative to gathering information. The next Task Force meeting was scheduled for Tuesday, April::18 at 4:00 p.m. in the Eagan Room. As the meeting concluded, Jon Hohenstein reiterated thati. it would be helpful for the business owners in. attendance to provide staff information (photos if necessary, explaining how the current ordinance.: "negatively affectg.their existing signage) by the middle of next week, preferably on or before "April.,12. • CD/Jon Hohenstein/ftnage/Meeting Notes/Meeting of 4-4-06 WINDOW SIGAGE TASK FORCE MEETING APRIL 18, 2006 In. attendance: Councilmembers Maguire and Fields, Ruthe Batulis, Jack Johnson, Dave Perrier, John Curlee, APC Members Gladhill and Hansen, City Administrator Hedges, Community Development Director Hohenstein, and City Planner Ridley. ➢ Jon Hohenstein provided brief opening remarks. ➢ Councilmember Maguire proposed the following:..,,. 1. Agree on a percentage for window signage 2. Arrive at a conclusion on grandfathering `most, if not all, existing ,signs. 3. Discuss permits and explicit information :.. about enforcement and interpretation, i.e. product placement. ➢ Jack Johnson agreed and stated there are four issues business owners and Ruthe Batulis had discussed at a' meeting since the Task Force last met: o Grandfather existing signage. o Nix a permit fee for existing"::sig ns, although the group had not decided • whether.:0 permit or fee should be charged for new (currently not existing) tenant signage o Interpretation's The group believed interpretation and enforcement need 'to`be better defined. o Percentage of window signage — Their group would like no restriction on ;;.percentage, brut understood that a percentage between 25-100% needs to. be; established: ➢ Mike Maguire., asked Dave Perrier if he operates with slotting fees . regarding vendors and their signage. Dave responded that he did not. ➢ Cyndee Fields asked if grandfathering would cover all painted and poster type signage currently in place. There was no consensus reached on that. • 1 13 • ➢ John Curlee opined that if all business' owners in town were surveyed, 99% would question why window signage would be regulated at all. A Cyndee Fields responded that there are regulations for many things and the purpose of this group is to strike a balance. As an example, she- stated the City . regulates the number of pets people can have. ➢ John Curlee stated that it was his assertion that very: few business owners would utilize 100% of their window for signage and thaif,most, if:,hot all, signage would be tasteful. ➢ Jon Hohenstein requested clarification that= the discussion was. based on the 4-6' clear -zone being removed from consideration.!;. The group stated that was affirmative. • ➢ Jack Johnson mentioned that with all of the people in businesses he spoke to, the predominant, 'mount of window signage necessary, in their minds, is at least 50% or greater,., . Jon Hohenstein offered.photos ranging from: 1) existing signs that do not appear to. meet the present 25% requirement, 2) a group that appears to meet the 25% requirement although not the 4=6' clear zone, and 3) those that appear to meet all current window sign standards. ➢ An audience'.member clarified issues on slotting and advertising for convenience gas stores and that there are slotting fees for tobacco sales, as far as he knew, in every convenience gas operation., A Ted Gladhill shared photos he had taken and spoke about equity and the impact . of varying amounts of window signs on neighboring business within the same strip center.. 2 4 ➢ Ted stated he believes every business would like to maximize signage capacity, • (he referenced portable trailer signage) but also believes there needs to be a limit. He stated he understands the grandfather clause argument, but that just because signage currently exists, that does not mean it is appropriate signage. ➢ Ted went on to say that he didn't believe the grandfathering clause would be fair to a new business being subject to stricter standards, than a competitor just because the existing business had pre-existing signage. ➢ John Curlee explained that the group was just talking about window signage and not portable trailer signage, etc. He went on to state that if his tenarrt space was next to a space that utilized 100% of its window signage, it wouldn't make a difference. He stated traffic 'isthe key and that the two critical issues to any business are aesthetics and location/space. ➢ Mike Maguire stated.;that while aesthetics are part of this discussion, the public • safety factor is, still relevant. ➢ Ruthe Batulis stated that public safety could be a voluntary compliance issue. She gave an example of: -a retail operation experiencing a crime :of some sort, a follow up with that- business:'owner after the fact could encourage voluntary compliance where visibility in and out, would be an option. ➢ Mike Maguire -,'."stated that he would rather be proactive on public safety, provided it is balancer A Mike and Cyndee both stated that the 4-6' clear zone is impractical. ➢ John Curlee.stated that he has issues with Piccolo's and the Italian Pie Shoppe in that both retailers have very attractive and appropriate signage that might not 3 I� • meet the 25% coverage standard and certainly doesn't meet the 4-6' clear zone even though in both cases the signs are see-through to a point and don't block view in and out. ➢ Dave Perrier questioned why are we even doing this? He stated he understands the 100% on certain garage doors or any other "over the top" type signage, but is concerned that with most of the pictures shown, you can't see the signs or what they say unless you are 30' from the space and, therefore, wouldn't be visible to the public passing by on a public right-of-way. ➢ Mike Maguire stated that he believes the; group has the issues boiled, down to the right ones. ➢ Ted Gladhill stated that window., blockage vs. signage. is different. ➢ John. Curlee stated that he would like'l clarification on aesthetics in that he believes aesthetics, is 6,slippery slope and he can't think of a business that would put up questionable signage. ➢ Mike Maguire, _ stated;. the 50%4'Indow coverage is very high compared to other the communitio"rveyed� :and provided on a matrix to the group. ➢ Cyndee, Fields clarified that whatever direction this group goes, she and Mike are only two of, a five -member City Council, which includes the Mayor. ➢ Jon Hohenstein stated that the hour was getting late and explained what he understood the City Council wanted and gave direction back in 2004. Fields & Maguire concurred. ➢ Cyndee Fields stated that she would prefer to exclude permanent wall signage • from this discussion and focus on window signage and the percentage of same. ➢ Ted Gladhill commented that Tires Plus, with numerous large garage doors vs. a E D 0 a E: business with a window, or two and a door, presents an unfair advertising opportunity. Jack Johnson stated that windows don't drive a business decision; it is traffic in the door that matters, and he wants to use the window space only in a reasonable fashion. Cyndee Fields asked if the group is simply, down to window percentage at this point? John Curlee stated percentage and permits. Mike Maguire added grandfathering Cyndee Fields suggested a no -fee permit. Mike Maguire remarked that incorporation' of the permits was a way to assist City staff in;:tracking signage,,througf out th6 community. Maguire stated th4 he was pleased with the outcome and ground covered in this meeting,, and sugges#ed that for the next meeting, business representatives come back with;�a, proposed percentage of window signage between the 25 and 100%. He requested that staff prepare information relative to enforcement and interpretation.,, ➢ Ruthe Batulis suggested that from the grandfathering standpoint, people who have already spent money to install window signage should not have to incur a cost by replacing that'signage. 5 17 CJ C U • ➢ Jon Hohenstein clarified that permanent wall signage was excluded from this discussion and the focus was merely on window signage and the appropriate percentage in addition to the grandfathering discussion earlier. The group concurred. ➢ Jon proposed that the next meeting be at 4:30 p.m. on Tuesday, May 2nd. The group agreed. • 6 �Q WINDOW SIGAGE TASK FORCE MEETING MAY 2, 2006 U In attendance: Councilmembers Maguire and Fields, Ruthe Batulis, Jack Johnson, Dave Perrier, John Curlee, Buzz Anderson, APC Members Gladhill and Hansen, City Administrator Hedges, Community Development Director Hohenstein, City Planner Ridley, and Senior Code Enforcement Technician Mary Granley. Audience members represented Cliff Road Holiday and Davanni's. Jon. Hohenstein opened the meeting by providing a summary of events to date and stated at the conclusion of this Task Force process, he would: -like to have a discussion with the group about how to communicate the outcome'of this exercise as well as other potential ordinances that may affect local business :,He` concluded by introducing the City's Senior Code Enforcement Technician, Mary Granley, who was in attendance for purposes of resource for application and' interpretation of..City Codes ➢ Mike Maguire stated that he saw the central issues as: 1) the need for a simple ordinance focused on percentage; 2) further ,discussion necessary to address grandfathering and permitting,<, and 3). in the area.of percentage, suggested that 50% is as low as he is interested in,,going. He questioned City Planner Ridley about the range. of percentages in the matrix of cities contacted. ➢ Mike Ridley stated percentages rano ;20-50%. Mike Maguire then • commented that he`'unclerstood the different needs for window signage based on different business types ➢ Buzz Anderson asked, "How do you differentiate between the businesses"? ➢ Mike Maguire stated that unless the City has an ordinance that differentiates (which wouldbe extremely burdensome and unmanageable), he was hoping for a solution that would be magageable for most and cumbersome for few. ➢ Wes, present in the ,audience and representing the Cliff Road Holiday store, asked''about signage that was placed back from any wall. Mike Maguire commentedjhat he: is not concerned with product placement. ➢ John Curlee declared, "Starting at 50% is a good start; what do you think?" He asked Jack Johnson to comment. Jack commented that there are subsets like liquor and convenience gas that would like 100%, but realizes it must be negotiated. ➢ Buzz Anderson said that 'convenience gas is already regulated by State standards requiring visibility from the cashier to the pumps to avoid drive -offs, etc. As such,, he doesn't believe the public safety argument for regulating window signage is legitimate. 1 Iq • ➢ Mike Maguire stated that he disagrees with the premise of that argument and that seeing the pumps is different than seeing what may or may not be coming out the door. ➢ Jon Hohenstein commented that the group was replowing old ground and that in order to stay on task and on time, the discussion should center on the percentage offered. ➢ John Curlee again asked what the group's thoughts were;..''``'` ➢ Cyndee Fields stated that she would not exceed75%0 Oary Hansen stated he would support a 50% maximum; Ted Gladhill stated that h6 -didn't see any reason to deviate from the peer group of cities that ,were reviewed ;for standards and believes that 25% is reasonable. ➢ Buzz Anderson asked why it matters what other cities do. Mike Maguire commented. that the City always checks with, :other cities when looking to amend/create City Codes if for no other reason than for the purpose of determining reasonableness. ➢ Jon Hohenstein commented that reviewing what other -;cities do with their Codes is the best practice the City has consistently utilized.. John Curlee stated that he doesn't belittle that best practice,' but. stated that, we shouldn't blindly follow a precedent set by others and that it'`should be thought through and carefully considered. ➢ There was general discussion about the percentage of businesses that presently exceed 50%; the assumption of the was that probably 80% would meet .group 5004,b, or less, and perhaps 20% of existing businesses currently exceed 50%. ➢ Wes, representing,'Holiday on 'Cliff Road, stated that if the ordinance doesn't apply to signage not on thewindow, he is okay with whatever percentage the group ,comes up with -because his banners hang on rods approximately 20" back from the,'window. ➢ Mike Maguire;;:.stated he is concerned by banners hung to be visible for the outside, and that he would consider that window signage. ➢ Jon Hohenstein suggested shifting in gear to review Mary Granley's memo for definition of window signage. ➢ Buzz Anderson asked what Dave Perrier's coverage was and asked if his doors are covered.. Dave guessed his percentage coverage is about 70% and his doors are generally free of signage. • 2 SA ➢ Holiday's representative said that convenience stores are actually moving away • from a lot of signage and in response to Mike. Maguire's question stated he is probably at or maybe a little below 50% today. John Curlee stated that if there are banners hanging to be visible .from outside, that would be considered signage. ➢ Dave Perrier asked a question about "display vs signage" and went on to say that no one from the public has approached him to thank him for participating in this window sign task force. ➢ Mike Maguire talked about the potential of surveying the public to get other opinions about window signage in the City, but he doesn't know what that will accomplish and would prefer to work through this process that has already begun. ➢ Cyndee Fields stated that she does hear complaints and random comments from people (not in writing, but at different events,) about the amount 6f -signage in town. ➢ An audience member from Davanni's suggested that it shouldn't be considered signage if you can walk in front of it, Mike Maguire liked that idea as a way to define product placement/display vS'-Sl' . ➢ John Curlee asked again what percentage the: group can live with, specifically • asking Dave Pernen Perrier stated 70%. Mike Maguire', -a. skedhow,Ythe APC came up with 25%. Gary Hansen explained there was a range, of opinions of Planning Commission members and that number„,,shifted during vanous..:discussions, but ultimately through background. information, public testimony and hearings, the commission landed on 25% as reasonable amount, given; the "industry standards” established in surrounding communities. ➢ Ruthe, Batulis addedthat she has anecdotal evidence that because Burnsville has a 25% standard,, there are businesses looking to leave Burnsville and come to Eagan to get away from that signage limit. L:r ➢ John Curlee asked, "Is this a consensus attempt or should the group be making motions? Cyndee Fields stated that the" group should arrive at a recommendation and to get as close as possible to a consensus would be good. Mike Maguire agreed. ➢ John Curlee made a motion to set the percentage of window signage at 70%; Ruthe Batulis seconded that motion. • 3 a� • ➢ Buzz Anderson stated that, he expects to see a high percentage, if not all windows at a liquor store, covered in signs. He also commented that the little guy (small business) needs to advertise that way to get people in the door. ➢ John Curlee stated that he doesn't believe every business will suddenly put up a lot of signage based on a new percentage allowed. ➢ Jon Hohenstein commented on the set-up of the task force in that there is no Chair and that the hopeful outcome was consensus. ➢ Wes, representing Cliff Road Holiday, stated he was optimistic that 70% would work for all convenience store operators in town. ➢ Mike Maguire stated that it would be important to ` hear from .Planning Commission members and that he understood the varying ,needs between businesses, but felt 70% is very high. He countered that he would.support 60% coverage. ➢ Cyndee Fields commented that the group needs, to keep in mind that whatever the Task Force arrives at must.be able to be sold. to the rest of the City Council and that she is more comfortable with, 600%. ➢ John Curlee commented that he was throwing out the 70% figure to get the ball rolling and asked an audience attendee representing Davanni's what percentage of window signage Davanni's currently has. She, mmented that it .is most likely under 60%, but they have an etched logo in the door that would need to be considered ➢ Mike Maguire proposed 606W.,as the; evel of signage and commented that that exceed sthe percenfage:,.allowed m' other cities surveyed and he assumes that those cities have ;liquor stores as well. Mike went on to share his experience as signage not being the driving .force; in fact, he stated that when he is going to the liquor store, he knows he is` going to buy beer (for example), and it is not the signage, that gets hire% in the store because he has already made the decision to go to the liquor store: However, once he is inside the store, ,then he compares prices of saie,items='and makes a decision on what to purchase. ➢ Ted Gladhill 6sked if there is anything more than anecdotal information on the impact on sales that can be attributed to window signage? ➢ John Curlee asked the group what percentage they could live with and got the following responses: ❑ Buzz Anderson --would like it as high as possible, but could live with 60%. ❑ Cyndee Fields --60% • ❑ Gary Hansen --would comprise and go with 60% 4 ad� ❑ Ted Gladhill-- 25% • ❑ Jack Johnson --60% ❑ Dave Perrier-> 60% ❑ Ruth Batulis--60% > John Curlee summarized by saying that while 60% is the predominant percentage acceptable, there are still issues to be worked out regarding how it is measured, grandfathering, permits, and how to deal with certain types of signage like etched glass, applied "see-through logos, etc. > Jon Hohenstein summarized for the group to make sure that staff understood the direction as follows: 1) future discussion on permits;; ,2) grandfathering; 3) determination on etched glass signage, etc.; 4), 60%.'maximum window sign. coverage; and 5) signage vs display would b& idetermined `by distance from the ,Window, i.e. that if a person can walk between the window''and, the display, it would not constitute signage. The group :agreed with those perimeters..: Cyndee Fields suggested that the group meet again on May 16th . and asked if a 4:00 start is possible. The group agreed to a 4:00 startindA me on Tuesday, May 16th. Mike Maguire thanked everyone and said he appreciates the. discussion and willingness to participate in this "give and take" process:', Fields concurred: • L CD/Jon Hohenstein/ftnage/MwUng NotesNeeting of 5-2-06 • 5 a3 • WINDOW SIGAGE TASK FORCE MEETING MAY 16, 2006 In attendance: Councilmembers Maguire and Fields, Jack Johnson, Dave Perrier, John Curlee, Buzz Anderson, APC Members Gladhill and Hansen, City Administrator Hedges, Community Development Director Hohenstein, City Planner Ridley, Senior. Code Enforcement Technician Mary Granley, and audience member representing Cliff Road Holiday. ➢ Mike Maguire opened the meeting by commenting that the next possible date for the Task Force to meet (if it is before a City Council meeting) would be June 6th and he would like to conclude the Task Force business today,;if at all possible. Cyndee Field suggested the following standards:. a. Window signage not to exceed 60%; and;.fall within. the 20% total wall signage allowed b. Glass doors. retain the clear zone in the 44joot area; does not pertain. to windows. c. Grandfather existing businesses and businesses that relocate. d. No permitting in a way that a letter' detailing the new:, Code would, be sent to businesses explaining the new. Code ';;and informing them if they are • grandfathered 'or not. If no response within 2 45 days, a second letter would be sent. If still no response, staff would; contact the business owner. She clarified that the grandfathering provision for' relocation would apply only to businesses forced to relocate, i.e. Cedar Grove businesses. ➢ Mike Maguire„ questioned why ;grandfathering would apply to a business that relocates. ➢ There was general discussion but no conclusion about the 60% being within the overall200/0 sign standard. ➢ Ted Gladhil[l explained;" that he didn't think grandfathering an overage in signage based on a'; move wasconsistent with earlier concerns, expressed regarding the expense of having to remove signage that currently exceeded the required amount. If a business is moving, there is no expense in that they would have to pay for new signage to be installed and at that point it should meet. Code requirements. ➢ Dave. Perrier questioned if an existing 100% coverage under this grandfathering clause would get to keep that 100% indefinitely. If the language outlined by Councilmember Fields were adopted, 'it would be. ➢ John Curlee stated that as signs change, compliance should be required. • al[ ➢Dave Perrier asked, "If a business is just touching up. an existing sign, would that • constitute a change that would require compliance?" ➢ Mike Maguire stated he thinks as long as the content remains the same, there would be no trigger to come into compliance because grandfathering applies. to the sign, not the business. He asked about the measurement of signs. ➢ Jon Hohenstein summarized the consensus points to dater a. 4-6 foot clear zone would not apply b. 60% would be the maximum c. Definition of signage appeared to, be agreed to at the la stneetinm d. Grandfathering needed some clarification, as.well`as the distance. e. Signage located within a certain distance inside., a window would be defined as a window sign. ➢ John Curlee stated he would be comfortable with an 18-36" distance. ➢ Mike. Maguire stated he preferred 36" from the `tliscussion last time where if. one could walk between the sign/display and the window, it would be considered a display.and not a sign. ➢ Cyndee Fields stated she would be comfortable with 18". ➢ Jon Hohenstein commented briefly on the issue discussed on May 2nd, display vs • signage. ➢Wes from Cliff Road Holiday commented on a particular signage issue with the Woodbury, store. ➢ Johnurlee stated 18" would; suffice for him. ➢. Mike Maguire stated, "It;sounds like 18" is the consensus". ➢ Jon Hohenstein explained the 12 -line measurement graphic produced .by Mary Granley. The,, group;''`was pleased with the Mary's graphic explanation and clarification. ➢ A question about a portion of a window signage change if that would trigger compliance. Cyndee Fields questioned if windows broken, for example during a hailstorm, would that require compliance? ➢ Jon Hohenstein stated that a typical non -conforming ordinance says that .if the non- conformity is destroyed, the non -conformity would not exist when the structure is rebuilt when the window is replaced. 2 AS- a • ➢ Dave Perrier asked whether existing sign square footage would be allowed to remain even though the signage itself was changed out over time, or weekly.. ➢ Ted Gladhill stated that he doesn't think its fair, for example, that any new liquor store coming into town would have to meet Code requirements where existing liquor stores that exceed allowable window signage would be allowed to keep that percentage in excess in perpetuity.. ➢ Mike Maguire commented that he appreciated Ted's comments, but was not concerned with the competitive advantage angle; his concern was that the City needs a code that is reasonable and reasonably enforceable. ➢ John Curlee stated he doesn't see competitive advantage as an .issue for a new business owner because they would be aware of,rules'they would; be subject to. ➢ Mike Maguire stated that a liquor store having beer signs and two neon ,;signs would constitute a sign plan and maybe those with signage over 60% would need to apply for a grandfather exemption and provide that sign plan:`" ➢ Mike Ridley suggested that a permit, whether it is.fee, driven or not, would be the most beneficial and efficient to tral.ck . signage and help determine the baseline situations. . ➢ John Curlee stated that a letter with a clear, explanation' of the Sign Ordinance would be necessary and that.`he::understood staffs desire for a permitting process from a tracking and code.�6hforcement standpoint. ➢ Ted Gladhill again commented.on his concern with the perpetuity of the grandfather clause. ➢ Mike "Maguire commented ,that with a 60% allotment, the, percentage of those exceeding that would be minimal ➢ Jon Hohenstein commented that staff would need to work with the City Attorneys to discuss issues and parameters regarding .grandfathering. > Mike order Maguire et s that at pe was in favor of an "'opt in' program for grandfathering" in to g tion. ➢ John Cudee stated he supported the approach for existing businesses to apply for an exemption for existing signage exceeding 60%. Cyndee Fields seconded that. ➢ Jack Johnson asked, "What about those businesses that may try to beat the ordinances and increase their signage prior to the 60% going into effect?" • ➢ Buzz Anderson stated that the ordinance can be pre -dated. 3 ars ➢ Mike Ridley stated that the current ordinance caps the window signage at 25% and, • while not being enforced presently, is still in effect. ➢ Ted Gladhill stated that he is still a little concerned that the 60% coverage may not be a consensus of a cross-section of the 65,000 Eagan residents. ➢ Mike Maguire stated he understood Ted's concerns, but explained that the goal of the Task Force was to get to where the group is. today, realizing there would most likely not be 100% agreement. His concern going in was, not so much the existing signs covering a high percentage of the windows, buff the possibility that others .would follow suit. He sees that the group effort is to stave'off,future businesses from attempting to cover their windows with more than 60% signage: , ➢ Mary Granley shared her concerns with the issue of enforcement and baseline window percentages in response to a question asked. ➢ Jon Hohenstein provided a'wrap-up of the meeting and suggested that staff gather the notes made and work with the City Attorney's. Office to determine allowed parameters for grandfathering and asked Task Force, business owners to consider notification methods to comprehensively get the word out;to all business owners. ➢ Mike Maguire suggested, a next meeting dateof:June 6, '2006 at 4:00 p.m. for the purposes of reviewing the City Attomey's,.: draft ordinance amendment. The group • concurred. 4 CW • • WINDOW SIGAGE TASK FORCE MEETING JUNE 6, 2006 In attendance: Councilmembers Maguire and Fields, Jack Johnson, Dave Perrier; John Curlee, APC Members Gladhill and Hansen, City Attorney Mike Dougherty, Community. Development Director Hohenstein, City Planner Ridley, and Senior Code Enforcement Technician Mary Granley. ➢ Jon Hohenstein provided a general overview of past meetings and information to bring the group up to date. ➢ . Mike Maguire stated that he was amenable to the: �60% window coverage falling within the 20% wall coverage, provided it did not.constitute a hardship. ➢. Dave Perrier asked, 'Was that just applying to each side of the building?" ➢ Mike Maguire commented in the affirmative. ➢ John Curlee said that Cyndee Fields commented at;the May 2nd meeting, that she was interested in just looking at the'wmdows and their percentages. . ➢ Mary Granley presented information, that estimated the percentage of window signage and percentage of wall signage for, Perrier Liquors, Balloon Connection, and the Hilltop PDQ. Mary's .study determined that other than the west wall of the Balloon Connection, all signage shown on:,.the three sites appeared to be at or below the 60% window sign figure and that, in combination with permanent wall signage, fell within the 20%building fdode sign signage requirement. ➢ JonHohenstein explained; the origin's' of this study . and the purpose for this information being 'provided to the group this evening. ➢ Jack Johnson commented thatbusinesses with a high window, percentage that met the 60% could potentially exceed the 20% overall wall signage requirement. ➢ Mike Maguire suggested that to keep on task, for the time being, the group should move on from"66:60%, within the 20% discussion. He stated his sense is the group could discuss, that`' portion of the issue ad nausea, but would prefer the group proceed as follo: . 1. Focus on the 60% window signage: 2.. Set aside the 20% issue for further review, or further comment by the Advisory Planning Commission (APC) and/or Council at a later date. ➢ John Curlee stated he believes 20% is a non -issue and supports the Maguire suggestion to just focus on the window percentage. so ➢ Jack Johnson commented that he would also prefer to stay with the window • discussion. ➢ Gary Hansen expressed concern if the 60% allotted window signage exceeded the 20% wall coverage, there would be a conflict with the new ordinance this group is working on and the existing ordinance and does it make sense to ignore that? ➢ Ted Gladhill stated that based on the information provided by Mary Granley, there will rarely be an issue of conflict and that that issue (60%o and 20%) should be clarified as the amendment works through the process. ➢ Mike. Maguire concurred and suggested that staff should be- prepared for. the 60/20% discussion as the process moves forward through,' -;.the APC and`Cty Council. ➢ Jon Hohenstein clarified the process as being . this Task Force making a recommendation to the City Council on proposed changes. The Council would then direct the item to Advisory Planning Commission;; who. would hold the public hearing. Their' consideration would lead to a recommendation to the Council and the City Council would take formal action on the proposal at`some point in the future. ➢ Ted Gladhill commented that based on. the, information `provided by Mary Cranley where even a high window sign user like Perrier I_ILiquor, which was assumed to be in the 60-70% range, actually falls into, he :40-45% range. He suggested that the actual figures do not line up, with the assumptions made which caused the group to arrive at a 60% window coverage standard. Ted proposed restarting with a 40-50% base which would:be based on more accurate, not anecdotal, information. ➢ Mike Maguire. said he thought #fiat was a good point, but was concerned that restarting 'the `discussion ,,to create a" lower base as the springboard, given the amount of meeting time and complexity of the issue, would be taking two steps back on a;, process that' had already �gone longer than most Task Force members ➢ John Curlee stated thaf- n the highest sign users do not offend him and believes 60% is still a good base window sign percentage to stay with. He questioned, "As business owners ;why do we need this sort of regulation to begin with and what is it that the City is trying to clean up?" ➢ Mike Maguire commented that it is important to continue to move forward and he senses the group is close to concluding its business. ➢ Cyndee Fields suggested that issues agreed upon to date could be shared with the City Council at a workshop session. • ➢ Mike Maguire suggested that 60% is okay with him from the standpoint of principal 0 and the data. is ➢ Jon Hohenstein commented on issues of permits and grandfathering ➢ Mike Maguire asked, "Is it more grandfathering or is the group looking more at an exemption?" ➢ Mike Dougherty commented that the City needs to figure out first what it is they want to accomplish, how to amass the necessary information, and determine a process to achieve the original goal. ➢ Mike Maguire commented that he believes an application for:an exemption from the standards should carry a permit and fee requirement land that whatever language is ultimately adopted should include a sunset clause. >, ➢ Dave Perrier commented that was fine with.. him, but is concerned with other businesses in town that have more permanent aignage`that may/may`not meet the proposed requirements. ➢ Mike Dougherty commented that each business must be treated in. the same way. p ➢ Jon Hohenstein commented on signs ainted :on the window vs. those that were etched into the glass or applied via an'applique. ➢ John Curlee stated that he! supported 'Mike Maguire's suggestion that if you are outside of the new parameters, an application and fee for that exemption would be appropriate. ➢ Dave Perrier stated he did' not disagree; but wondered roughly what the number of current businesses in town would be found to be over the 60% window standard. ➢ John Curlee questioned, the number of years tied to the sunset clause and Mike Dougherty stated that he; just pulled seven years out of the air in large part, but with wa an eye tord, amortization of an expense incurred by a business owner. ➢ Cyndee Fields r'. Mike' Maguire, John Curlee, and Jack Johnson all stated their support of a seven-year term. ➢ Jon Hohenstein clarified that the City Attorney and staff would draft a Window Sign Task Force Summary to provide to the City Council. REW ➢ Dave Perrier confirmed his understanding of the "next steps" for the process as • being a City Council Workshop (possibly September), APC Public Hearing and recommendation to the City Council for its consideration at a regular Council meeting and that in each case the public would be alerted to each step. ➢ Mike Maguire stated he believed the issue is ready to ship off to the legislative process and to the extent that 20% was not addressed, that subject would be discussed by the Planning Commission and/or City Council and would be incorporated at that point in time. He further stressed that while he and Councilmember Fields are supportive of the 60%, they could not guarantee that that will remain the case, even though they are moving forwaird 'in #his process supporting that percentage. Cyndee Fields concurred. ➢ Jon Hohenstein commended the group for all sof the' work and ground covered and shared his appreciation for the amount time;: the Task Force members gave to the process. ➢ Mike Maguire thanked all participants for their insight and input for a process that took longer than he anticipated but was certainly worth.the effort. ➢ John Curlee also thanked the group„and; in particular, th`e'.APC and City Council for allowing the item to be reconsidered via the Task Force process. CD/Jon Hohenstein/Signage/Meeting Notes/Meeting of 6-06-06. • 4 31 • DRAFT - 6.20.06 SEVERSON, SHELDON, DOUGHERTY & MOLENDA, P.A. TO: Jon Hohenstein, Community Development Director FROM: Sharon K. Hills, City Attorney DATE: June 20, 2006 RE: Implementation of Window Sign Regulation Amendments Our File No. 206-4768 In accordance with your request, this memorandum outlines a proposed procedure for the implementation of the proposed window sign regulation amendments. The focus of the procedures is on application of the amendments to properties that presently exceed the proposed amendment to the window sign regulations. • The proposed window sign regulation amendment, provides that a sign displayed on or in any window shall not occupy more than sixty percent (60%) of the area of the window and/or doors on the side of building on which the window "sign is displayed. The current language of the regulation provides no more than twenty-five percent (25%) of the window and/or door area. In the event that the City Council approves the proposed window sign regulation amendment, properties that currently have window signage in excess of sixty percent (60%) of the window and/or door area would not be granted "grandfathered" status. However, the amendment would provide for an "exemption" from the new regulation, subject to specific standards and conditions: 1. Any property that exceeds the 60% window/door area as of the effective date of the ordinance will be exempt from the 60% window/door area restriction, provided the. property owner/occupant completes and files an "exemption registration" with the City within 60 days of the effective date of the ordinance. If an exemption is not timely filed with the City, the 60% area regulation will apply. 2. The property, which is exempt from the 60% sign area, is prohibited from exceeding its registered window/door sign coverage. . 3. Any change in sign size or type rescinds/voids the exemption and the 605/o window/door sign area will apply. 4. Any change in business located in the subject space rescinds/voids the exemption and the 60% window/door sign area will apply. 0 DRAFT - 6.20.06 5.. Any modification to the window or door size rescinds/voids the exemption and • the 6011/o sign area will apply. 6. All properties, including those with the exemption, are required to come into compliance with the new regulations within seven (7) years of the effective date of the ordinance. The foregoing list of conditions and standards is not an exhaustive list. There may be additional standards or conditions that you think would be appropriate to rescind or otherwise void the exemption status. SKH/jlt cc: Mary Granley, Code Enforcement Technician Mike Ridley, City Planner Mike Dougherty, City Attorney • • Agenda Information Memo September 14, 2006, Eagan City Council V. -2007 PUBLIC'UTILITY ENTERPRISE FUND BUDGETS ACTION TO BE CONSIDERED: • To provide direction to staff regarding the proposed 2007 Public Utility Enterprise Fund Budget's andr to direct that it be placed on a future City Council Meeting Consent Agenda for formal ratification. Introduction The 2007 Public .Utility Enterprise Funds have been prepared in a manner consistent with the new process being implemented for the City's General Fund. They have also incorporated a review process similar to the General Fund with sensitivity shown to the financial goals of the City. User rates.Mil be reviewed in the usual process and incorporated into the City's annual fee schedule for City Council consideration. No significant changes to rates are contemplated for any of these utility'operations. Enterprise Funds are established to account for the financing of self-supporting activities of governmental units which render services to the general public on a user charge basis. Records are maintained on the accrual basis of accounting. The reports of the Enterprise Funds are similar to comparable private enterprise reports and are self-contained. Creditors, legislators, or the general public can evaluate the 'performance of the'municipal enterprise on the same basis as they can the performance of investor-owned enterprises. Revenues Enclosed on: page ,3,R 'is a copy of the Comparat' a Summary of Revenues for. all public utility enterprise funds. Enclosed on page is'a copy of the De it of Revenues forall of the utility enterprise funds'. Finally, enclosed on page is a copy of the worksheet showing the cash balances of the Storm Drainage and Water. Quality utilities, also showing the breakdown ofthe available cash into three categories: Operations, Renewal & Replacement, and Expansion & Modification. Expenditures Water 61 The City's water utility provides for the production and distribution of safe and clean .water through a series of 21 developed major wells, two treatment plants, and six reservoirs and towers. The water utility also maintains the water distribution system consisting of over 323 miles of mains and laterals. At year end 2005, the City had 19,235 connections to the water system. Excluding depreciation and debt service from the total for both years, the 2007 Water Utility Budget is proposed at $3,148,200, an overall increase of $488,000, or 18.3% from • the 2006 budget of $2,660,200. Factors contributing to that above average increase are included in the department budget narrative to follow. The bond payment including both principal and interest to retire the outstanding debt for the South Water Treatment Plant • is $863,500 and is included in the budget. Depreciation is budgeted at $1,804,200 for 2007. One additional Water Treatment/Production worker is proposed to be added to the personnel complement as a transfer from the Sanitary Sewer department. The Superintendent of Utilities position will be charged 2/3 to the Water Utility budget beginning in 2007. The City Council will recall that the corresponding reduction for that position has been made in the'General Fund. Finally, a temporary (six-month) clerical position is included in the Water department budget to assist in the conversion/upgrade of the utility, billing system. Consistent with past years, also included in the proposed budget is an allocation of $48,000 for seasonal employees to provide maintenance and technical GIS assistance. Many of the expenditures proposed in the 2007 water utility budget are related to the volume of water produced, treated and distributed (i.e., electricity, chemicals, break repairs, etc.) which is often difficult to predict with any degree of accuracy. The sale of water is proportionate to summer weather conditions, while break repairs often are the result of winter weather conditions. Capital outlay appropriations include $7,000 for a software upgrade and $57,000 for three vehicles including two replacements and one new unit. The vehicles have been included for consideration after the staffs review through the Part II CIP process. Enclosed on pages 44 1 through 'LILO is a copy of the proposed line item 2007 • budget for the Water division. Sanitary Sewer (62) The City's sanitary sewer utility provides for the transmission of sewage to the Seneca Waste Water Treatment Plant. All sewage treatment for the City is provided at that plant by the Metropolitan Council Environmental Services (MCES). The City's system consists of 274 miles of mains and laterals and 12 sanitary lift stations. At year end 2005, the City had 18,613 sanitary sewer connections to the system. Excluding the depreciation costs, the City's budget provides for costs to maintain the collection system (27.8%) and for the payments to MCES to provide for treatment (72.2%). Again excluding depreciation from the total for both years, the 2007 Sanitary Sewer Budget is proposed at $4,848,500, an overall increase of $328,100, or 7.3% from the. 2006 budget of $4,520,400. Factors contributing to the increase are included in the department budget narrative to follow. The budgeted depreciation expense included in the 2006 budget is $607,700. In general, the primary cost for the sanitary sewer utility is the MCES disposal charge, which is estimated for 2007 at $3,499,000. A potential surcharge billing of $2,110,500, paid over 5 years, imposed by MCES related to a spike in inflow and infiltration of ground water into the system is not included in this budget. Staff is working with the MCES to investigate, mitigate, and develop an appropriate course of action and funding plan for the City which will be returned to the City Council for consideration at a later date. 35_ • One utility field maintenance worker is transferred to the Water utility and the reduction is noted in the personnel complement for the Sanitary Sewer department. The Superintendent of Utilities position will be charged 1/3 to the Sanitary Sewer utility budget beginning in 2007. The City Council will recall that the corresponding reduction for that position has been made in the General. Fund. Consistent with past years, also included in the proposed budget is an allocation of $23,200'for seasonal employees to provide maintenance and technical GIS assistance. Capital outlay appropriations include $14,000 for two Gas/02monitors required by OSHA, $21,000 for a utility location vehicle, and $180,000 for replacement sewer jetting machine. The equipment has been included for consideration after the staffs review through the Part 11 CIP process. Enclosed on pages_ through is a copy of the proposed line item 2007 budget for the Sanitary Sewer division. Street Lightina (63) The City's street lighting utility provides for the operation of neighborhood, street lighting, major intersection lighting, and signals. User fees are used primarily on a pass through basis to pay energy costs to provide the lighting; however, the fees include an increasing component for the City's maintenance responsibilities related to the various types of lights. At year end 2005, 14,745 customers were being billed for 3,220 neighborhood lights provided by that system. In addition, 18,780 customers were being billed for • community lights (major intersection lighting, and signals). The Street Lighting proposed budget is increasing by $63,000 or 14.7% from $428,800 in 2006 to $491,800 in 2007, excluding depreciation in both years. Factors contributing to the above average increase are.included in the department budget narrative to follow. There are no personnel accounted for in this operating budget. However, there is a depreciation expense of $12,800 included in this budget for 2007. There is no proposed capital included in the 2007 Street Lighting budget. Enclosed on pages — through is a copy of the proposed line item 2007 budget for the Street Lighting utility. Storm Drainaae (64) The City's storm sewer system consisting of over 200 miles of pipe, 400+ inter- connected ponds, and 20 lift stations is designed to collect and transmit run-off to the Minnesota River. At year end 2005, 18,792 customers were being billed for storm drainage/water quality. Excluding depreciation the 2007 proposed Storm Drainage budget is $190,300 reflecting an increase of $41,200 or 27.6% over the 2006 budget of $149,100. Factors contributing to the above average increase are included in the department budget narrative, to follow. Four (4) years ago, the storm drainage and water quality budgets were separated for budget and accounting purposes. The storm drainage budget reflects only those costs associated with the conveyance and maintenance of the storm isdrainage system. The 2007 budgeted depreciation amount included is $960,500. �t There are no changes proposed to the current complement of personnel in the Storm • Drainage utility and there are no capital outlay requests for consideration in the operating budget. Enclosed on pages _ through loD is a copy of the proposed line item 2007 budget for the Strom Drainage division. Water Quality (65) The mission the Water Quality Department is to protect and improve the natural, esthetic, and recreational qualities of Eagan's lakes, ponds, and wetlands for the enjoyment and use by present and future residents of the City and region. Eagan has over 375 natural lakes, ponds, and wetlands larger than one acre, and over 80 percent of them are incorporated into the City's storm water system. The Water Quality budget reflects only those costs necessary to improve and maintain the highest level of water quality in various ponds and lakes. The 2007 proposed Water Quality Budget excluding depreciation is $582,700 reflecting an increase of $17,000 or 3.0% over the 2006 budget of $565,700. The 2007 budgeted depreciation amount included is $61,700. The proposed personnel complement does not change from 2006; however, the position of Water Resources Assistant approved in 2005 that has been vacant is proposed to be filled in 2007. The responsibility for the City's Water Quality function which was moved from Parks and Recreation to Public Works/Engineering as a result of the Organizational study remains in place and has been very successful. The change provides for closer • integration of the management of storm drainage and water quality efforts while still promoting the mission of natural resource protection 'and use, through coordination with the Parks and Recreation operations. Capital outlay appropriations include $900 for small equipment related to technology improvements. Enclosed on pages through i.L is a copy of the proposed line item 2007 budget for the Water Quality division. • 3-7 2007 Revenue Estimates 9220 9/8/2006 Comparative Sum of Revenues 2007 Budget • PUBLIC UTILITIES ENTERPRISE FUND Comparative Summary of Revenues Actual Actual Budget Budget 2004 2005 2006 2007 TOTAL REVENUE Service Fees: Water $3,791,646 $3,87.5,420 $3,813,400 $3,744,800 Sanitary Sewer 4,427,363 4,405,837 4,630,300 4,648,900 Street Lighting 405,593 349,182 417,800 461,000 Storm Drainage 971,338 1,007,172 1,030,500 1,068,500 Connection Permits' 18,500 . 15,561 19,000 17,000 Service Penalties 31;024 31,869 32,000 33,500 Other Operating Revenue (382,109) (234,397) 41,000 64,000 Antenna Leases 97,829 411,856 209,000 209,000 Sale of Meters 49,544 49,906 50,000. 50,000 State PERA Aid 4,442 4,442 4,400 4,400 Interest on Investments 1,093,701 1,050,326 1,066600 1,460,400 Interest - Other 68,682 67,555 62,400 65,700 Connection Charges: Water Supply & Storage 247,832 239,035 250,000 230,000 Treatment Plant 245,196 242,964 250,000 230,000 •Water Water Quality Dedication 52,253 35,646 35,000 35,000 Total Revenues 11,122,834 11,552,374 11,911,400 12,322,200 DEDICATED REVENUE . Service Fees: 1121 Water Renewal & Repl. 706,012 670,331 745,000 767,000 1122 San Sewer Renewal & Repl. 214,800 239,440 255,000 263,000 1126 Storm. Sewer Renewal & Repl. 96,118 99,585 103,000 106,000 1125 Storm Sewer Exp & Mod 192,237 199,169 206,000 212,000 1119/24 W.T.P. Debt Service 1,228,272 1,234,504 935,000 963,000 . Connection Charges: 1123 Water Supply & Storage 247,832 239,035 250,000 230,000 1124 Water Treatment Plant 245,196 242,964 250,000 230,000 Antenna Leases - ECC 97,829 411,856 209,000 266,700 Interest Earnings: 1119 W.T.P. Debt Service 184,077 92,794 25,800 0 1121,22,26 Renewal & Replacement 346,123 403,074 362,900 533,400 1125, Water Quality Exp. & Mod 36,881 49,512 45;200 68,700 . 1123 Water Supply & Storage 183,836 180,392 165,500 204,900 Water Quality Dedication Fees: 1127 Water Quality 52,253 35,646 35,000 35,000 . Total Dedicated Revenue 3,831,466 4,098,302 3,587,400 3,879,700 . REVENUE AVAILABLE FOR OPERATIONS $7,291,368. $7,454,072 $8,324,000 $8,442,500 2007 Revenue Estimates 9220 9/8/2006 Detail by Dept 2007 Budget PUBLIC UTILITIES ENTERPRISE FUND • Detail of Revenues Actual Actual Budget. Budget Acct 2004 20005 2006 2007 DEPARTMENTAL: Water 4505 Water Service Fees $3,791,646 $3,875,420 $3,813,400 3,744,800 4506 Water Service Penalties 11,637 12,020 11,800 12,000 4507 Water Connection Permits 9,700 8,311 10,000 9,000 4509 Sale of Meters 49,544 49,906 50,000 50,000 4511 Sale of Property 17 3,565 0 0 4512 Water Turn Off/On Fee 5,895 7,700 5,500 7,000 4521 Const/ Meter Permits 1,400 3,182 1,500 2,000 4522 Acct Deposit Not Refunded 1 (22) 0 0 3,869,840 3,960,082 3,892,200 3,824,800 Sanitary Sewer 4530 Sanitary Sewer Service Fees 4,427,363 4,405,837 4,630,300 4,648,900 4531 Sanitary Sewer Penalties . 11,798 13,790 13,000 14,000 4532 San Sewer Connection Permits 8,800 7,250 9,000 8,000 4,447,961 4,426,877 4,652,300 4,670,900 Street Lights 4550 Neighborhood Light Svc Fees 256,603 279,741 264,300 259,000 4551 Neighbrhd/Comm Lt Penalties 1,536 1,586 1,200 1,500 4560 Community Light Service Fees 148,990 69,441 153,500 202,000 407,129 350,768. 419,000 462,500 Storm. Drainane/Water Quality 4540 Storm Drainage Service Fees 971,338 1,007,172 1,030,500 1,068,500 4541 Storm Drainage Penalties 3,013 . 3,112 2,500 3,000 • 974,351 1,010,284 1,033,000 1,071,500 NON -DEPARTMENTAL: 4031 Assmt Penalties and Interest 3,040 2,947 3,500 3,000 4120 Permits 0 4,368 0 0 4160 State PERA Aid 4,442 4,442 4,400 4,400 4226 Developer Escrow Reimbursmt 47,608 39,273 20,000 35,000 4228 Eng / Financial Information 465 553 0 0 4230 Printed Material / Other Fees 38 9 0 0 4242 Maint Equipment and Personnel 8,697 9,491 8,000 8,000 4243 Manual Reading-Ded Bill Meters 2,562 1,956 2,000 2,000 4246 Admn Fee on SAC Coll 0 240 0 0 4376 Merchandise Sales 0 47, 0 0 4605 Amort on Bond Premium 0 3,078 0 .0 4610 Interest on Investments 1,093,701 1,050,327 1,066,600 1,460,400 4612 Interest on Assessments 65,217 64,906 60,600 . 64,800 4614 Interest on MCES 3,465 2,649 1,800 900 4615. Change in Fair Value of Inv (570,169) (375,814) 0 0 4617 Antenna Lease Admn Fees 0 4,000 0 0 4618 Site Survey / Eng Applic Review 500 500 0 0 4619 Antenna Lease Landscape Escow 0 2,000 0 0 462D Antenna Site Rent 97,829 411,856 209,000 209,000 4657 Sale of City Property 4000 0 0 0 4658. Vehicle Sales 20,075 45,105 0 0 4664 Cost Sharing Payment ' . 0 600 0 4672 Water Quality Dedication Fees 52,253 35,464 35,000 35,000 4675 Wetlands Consery Appl Fee 0 700 0 0 4680 Connection Charge -Water 247,832 239,035 250,000 230,000 4685 Conn Chg--Water Treatmt Plant 245,196 242,964 250,000 230,000 4691. Other Revenue 770 676 - 0 0 4822 Other Reimbursements 6,460 12,991 4,000 10,000 • 4980 Transfers In 89,572 0 0 0 1,423,553 .1,804, 63 1,914,900 2,292,500 GRAND TOTAL $11.122:834 $11.552.374 $11.911.400 $12.322.200 • STORM DRAINAGE (Dept 64) / WATER QUALITY (Dept 65) CASH BALANCES Combined Combined 64/65 64165 Actual Actual Budget Budget 2004 2005 2006 2007 Operations (1115 cash) Balance forward 502.648 60 .19 4Q1Q�44 61 .004 Income Escrow Reimbursement 16,273 5,170 20,000 35,000 70% Storm drain fees 682,046 707,199 723,100 750,100 Grants/Other 23.328 3.538 Q 0 721,647 715,907 743,100 785,100 Expenses Genl operations 555,935 627,047 661,800 773,000 Depreciation (non -infrastructure) 59.213 85.302 75,000 COQ Total exp 615,148 712,349 736.800 834.700 Net increase (decrease) 106,499 3.558 6.300 (49,600) Ending balance 612.704 619.004 Renewal & Replacement (1126 cash) Balance forward 363.353. 472,117 588.996 708.196 Income " 10% Storm drain fees 97,435 101,028 103,300 107,200 • Interest 12.645 17,294 15,90020.000 Total income 110,080 118.322 119.200 127.200 Expensestother Renewal/replacement 0 0 0 20,000. Adjustment/other 1.316 1.444 Q 9 Total expenses/other 1.316 1.444 0 20.000 Net increase (decrease) 10&764 116.878 -119,200 107.200 Ending balance 472.117 588.996 708.196 815.396 Expansion & Modification (1125127 cash) Baiance forward901. 4.683 1,988,105 2.291.952 2.541.052 Income 20% Storm drain fees 194,870 202,057 206,600 214,300 Cash dedications (4672) 52,253 35,464 35,000 35,000 Interest 53.333 69.213 62,500 80.000 Total income 300,456 306.73403 4.10023 9.300 Expenses Expansiontmodifiication 214,275 0 55,000 0 Adjustments/other 2.759 2.887 Q 0_ Total expenses/other 217,034 2.887 .55.000 Q Net increase (decrease) 83.422 303,847 249 23 9.300 • Ending balance Z��+2 . 2.870.3•` City Posed Of Eapo 2007 Pro et Operating Budget Budget Public Utilities — Water Department (61) • Responsible Manager: Wayne Schwanz, Superintendent of Utilities PURPOSE & DESCRIPTION The purpose of the Public Utilities — Water Department is to: • Continue operation and preventative maintenance of the sewer collection, water distribution, .and storm conveyance systems • Provide safe and clean drinking water for the City of Eagan •. Maintain the quality of the drinking water supply and test for compliance to all State and Federal requirements • Project future water needs The Public Utilities — Water Department is responsible for the following functions: • Inspect and maintain the water distribution system, including point -of- use metering • Inspect and maintain the storm water conveyance system and assist with water quality objectives • Supply and treat all potable water needed within the City including sampling, Testing and chemical treatment to assure water quality that meets or exceeds State and Federal health standards. Inspect and maintain storage facilities, wells, and pressure control stations • Respond to customer complaints • Assist other departments when needed • Respond to emergency repairs PERFORMANCE INDICATORS Description 2005 Actual 2006 Budget 2007 •. Proposed Water main breaks 7 7 7 Gallons of safe drinking water produced 3.16 billion 3.35 billion 3.45 billion MN Dept. of Health samples collected 840 840 840 Backflow preventers tested 581 600 620 Meter service calls 1,608 1,608 1,608 Customer service calls 2,293 2,293 2,293 Hydrants flushed 3,800 3,800 3,850 Hydrants painted 592 600 600 Locates performed 8,700 8,800 9,000 0 • • at0f Ba 2007 Proposed Budget Operating � �81i P g P 9 Budget Public Utilities — Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Expenditures by Category HIGHLIGHTS & CHANGES Overview: The Water Department budget'shows an increase of $488,000, or 18.3%. Three factors account for $429,700, or 16.2% of the increase: an accounting transfer of two personnel, steep increases in fuel and energy costs, and roof replacement on the Cliff Road Water Treatment Plant., Hiahilaaht/Chansae 1: The Superintendent of Utilities position was transferred from the General Fund Engineering budget (21) into Water (61) and Sewer (62) on a 2/3 - 1/3 split to better reflect the tasks/activities of this position Financial Impact: The Water Department budget in increased by $74,900, with a corresponding decrease in the General Fund Service Level Impact: This accounting change does not affect service levels Highlight/Change 2: A previously classified Utility Field Maintenance Worker (Sewer Dept) is reclassified as a Water Production Worker due to the recent expansion of the Coachman Water Treatment Plant and related wells Financial Impact: The Water Department budget is increased by $54,900, with a corresponding decrease in the Sewer Department budget Service Level Impact: This reassignment of personnel recognizes the appropriate allocation of resources needed to properly maintain our system and the required level of service delivery to our customers Hisahlisaht/Channe 3: Fuel and energy costs have risen dramatically. Gas has increased from $1.75/gallon (avg) in the 2006 budget to $2.75, a 57% increase. Electricity and Natural Gas energy costs for the well and treatment plant pumps and heating for the expanded treatment plant, administration building and equipment garage have increased both in unit price as well as projected quantities (i.e. increase in water sales). There is also an increase in unit prices and quantities of chemical used for treatment due to predicted volume increases Financial Impact: These quantity .and unit price adjustments result in an increase of $259,900 (9.8%) of the budget. Since a portion of this increase is related to increased water sales, it will be offset by comparable revenues Service Level Impact: While Eagan's water rates are currently in the bottom 25 percentile of metropolitan communities, the City has been able to continuously meet the community's peak demand for the past 18 years with the highest rating available from the Minnesota Department of Health Hisahlicaht/Chansae 4: A roof replacement for the Cliff Road Water Treatment Plant is proposed. The plant is approaching 17 years old and had a significant amount of degenerative activity on its roof during the plant's litigated rehabilitation work 10 years ago, which reduced its life as well. Financial Impact: At an estimated cost of $40,000, this represents 1.5% of the budget increase Service Level Impact: This will allow the treatment plant, to continue operations without interruption to the community's water supply Hichilaaht/Chanaae 5: A temporary (six-month) clerical position is proposed to assist in the conversion/upgrade of the Utility Billing system. All LOGIS cities are required to convert to the upgraded system. Financial Impact: This position is needed only for 2007 and accounts for $13,100 of the budget increase Service Level Impact: The system conversion will enhance customer service through improved billing and, reporting capabilities. The hiring of a temporary clerical during the conversion process will enable the City to maintain customer service levels and allow existing personnel to do the required system setup and parallel billing runs. T11 Capital Services & Outlay Other 2% Charges Merchandise 53% for Resale 3% ersonal Parts& Services Sus pplie 35% 7% HIGHLIGHTS & CHANGES Overview: The Water Department budget'shows an increase of $488,000, or 18.3%. Three factors account for $429,700, or 16.2% of the increase: an accounting transfer of two personnel, steep increases in fuel and energy costs, and roof replacement on the Cliff Road Water Treatment Plant., Hiahilaaht/Chansae 1: The Superintendent of Utilities position was transferred from the General Fund Engineering budget (21) into Water (61) and Sewer (62) on a 2/3 - 1/3 split to better reflect the tasks/activities of this position Financial Impact: The Water Department budget in increased by $74,900, with a corresponding decrease in the General Fund Service Level Impact: This accounting change does not affect service levels Highlight/Change 2: A previously classified Utility Field Maintenance Worker (Sewer Dept) is reclassified as a Water Production Worker due to the recent expansion of the Coachman Water Treatment Plant and related wells Financial Impact: The Water Department budget is increased by $54,900, with a corresponding decrease in the Sewer Department budget Service Level Impact: This reassignment of personnel recognizes the appropriate allocation of resources needed to properly maintain our system and the required level of service delivery to our customers Hisahlisaht/Channe 3: Fuel and energy costs have risen dramatically. Gas has increased from $1.75/gallon (avg) in the 2006 budget to $2.75, a 57% increase. Electricity and Natural Gas energy costs for the well and treatment plant pumps and heating for the expanded treatment plant, administration building and equipment garage have increased both in unit price as well as projected quantities (i.e. increase in water sales). There is also an increase in unit prices and quantities of chemical used for treatment due to predicted volume increases Financial Impact: These quantity .and unit price adjustments result in an increase of $259,900 (9.8%) of the budget. Since a portion of this increase is related to increased water sales, it will be offset by comparable revenues Service Level Impact: While Eagan's water rates are currently in the bottom 25 percentile of metropolitan communities, the City has been able to continuously meet the community's peak demand for the past 18 years with the highest rating available from the Minnesota Department of Health Hisahlicaht/Chansae 4: A roof replacement for the Cliff Road Water Treatment Plant is proposed. The plant is approaching 17 years old and had a significant amount of degenerative activity on its roof during the plant's litigated rehabilitation work 10 years ago, which reduced its life as well. Financial Impact: At an estimated cost of $40,000, this represents 1.5% of the budget increase Service Level Impact: This will allow the treatment plant, to continue operations without interruption to the community's water supply Hichilaaht/Chanaae 5: A temporary (six-month) clerical position is proposed to assist in the conversion/upgrade of the Utility Billing system. All LOGIS cities are required to convert to the upgraded system. Financial Impact: This position is needed only for 2007 and accounts for $13,100 of the budget increase Service Level Impact: The system conversion will enhance customer service through improved billing and, reporting capabilities. The hiring of a temporary clerical during the conversion process will enable the City to maintain customer service levels and allow existing personnel to do the required system setup and parallel billing runs. T11 City Of Ealaa 2007 Proposed Budget Operating Budget Public Utilities — Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Hichliaht/Chanae 6: When the Coachman Treatment plant was expanded, the existing treatment facility was upgraded with increased efficiency technologies. As a result, significantly less water is wasted in regenerating the filter cells. However, this has resulted in a higher concentration of sludge discharged to the sewer system for treatment at Seneca. This higher concentrate of discharge material triggered the requirements of a Metropolitan Industrial Waste Discharge Permit at an annual fee of approximately $10,000 Financial Impact: The $10,000 budget increase is more than offset by the value of groundwater conservation and the energy power costs to pump and treat the excess water previously required to backwash the filter cells Service Level Impact: The increased efficiencies in backwashing the filter cells allows the plant to meet greater supply demands on. peak production days EXPENDITURE SUMMARY Bond Payment - Principal Bond Payment - Interest Paying Agent/Bond Destrctn. Fee Debt Service Payments Depreciation Expense $ 630,000 $ 645,000 $ 680,000 $ 715,000 266,186 235,979 201,600 148,000 - 500 500 $ 896,186 ' $ 880,979 $ 882,100 $ 863,500 $1,294,033 $ 1,824,624 45 $ 1,285;000 $1,804;200 C. • • Actual Actual Budget Proposed Expenditure 2004 2005 12006 2007 Personal Services $ 622,856 $ 702,624 $ 912,600 1,096,000 Parts and Supplies 141,286 267,199 197,600 220,500 Services and Other Charges 1,444,959 1,469,693 1;430,900 1,685,200 Capital Outlay - 22,643 66,100 64,000 Construction Projects - 112,198 - - Transfer Out - 302,863 - . - Merchandise for Resale 68 - 53,000 82,500 Total $2,209,169 $ 2,877,220 $ 2,660,200 $3,148,200 Bond Payment - Principal Bond Payment - Interest Paying Agent/Bond Destrctn. Fee Debt Service Payments Depreciation Expense $ 630,000 $ 645,000 $ 680,000 $ 715,000 266,186 235,979 201,600 148,000 - 500 500 $ 896,186 ' $ 880,979 $ 882,100 $ 863,500 $1,294,033 $ 1,824,624 45 $ 1,285;000 $1,804;200 C. • • City Of Eapa 2007 Proposed Budget Operating Budget Public Utilities—. Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Superintendent 0 0 0 0.67 1,394 Water Production/Treatment Supervisor 1 1 1 1 2,080 Utility Field Operations Supervisor 0.33 0.33 0.33 0.33 693 Administrative Assistant (System Analyst) 0.67 0.67 1.67 1.67 3,467 Senior GIS Technician, 1 1 1 1 2,080 GIS Technician 1 1 1 1 2,080 Clerical V 0 1 0 0 - Utilities Inspector 1 1 1 1 2,080 System Maintenance Workers 3 3 3 3 6,240 Water Treatment/Production Workers 3 3 3 4 8,320 Total 11 12 12 13.67 28,434 2007 WORK PLAN Activity Routine " 1 Water Administration • 2 Water Field Operation/Repair 3 Erosion control 4 GIS/GPS Administration 5, Treatment Plant/Production 6 Emergency call outs • q4- City Of Eagan 2007 Proposed Budget Operating Budget Public Utilities -Water Department (6 1) Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL Actual Actual Budget Proposed Acct PERSONAL SERVICES 2004 2005 2006 2007 6110 SALARIES AND WAGES -REGULAR $ 463,958 $ 516,584 $ 639,600 $ 752,000 6112 OVERTIME -REGULAR 14,307 13,487 29,800 30,400 6130 SALARIES AND WAGES -TEMPORARY 12,371 16,631 31,200 54,900 6131 PERA COORDINATED 26,350 29,497 40,200 49,600 6142 FICA 35,427 39,843 53,600 64,100 6144 HEALTH INSURANCE 54,556 68,919 99,000 124,400 6151 LIFE 905 1,072 - - 6152 DISABILITY - LONG TERM 1,725 .2,056 - - 6154 WORKERS COMPENSATION 13,257 14535 19,200 20,600 TOTAL PERSONAL SERVICES $ 622,856 $ 702,624 $ 912,600 $ 1,096,000 PARTS & SUPPLIES 6210 OFFICE SUPPLIES $ 2,191 $ 1,332 $ 2,700 $ 2,400 6211 OFFICE PRINTED MATERIAUFORMS 8,071 120 - 200 6220 OPERATING SUPPLIES -GENERAL 1,567 1,324 2000, 2,000 6222 MEDICAURESCUEISAFETY SUPPLIES 563 390 1,000 1,000 6223 BUILDING/CLEANING SUPPLIES 2,839 1,908 2,000. 2,000 6224 CLOTHING/PERSONAL EQUIPMENT 1,988 2,309 2,100 2,900 6230 REPAIRIMAINTENANCE SUPPLIES -GENERAL - 142 - - 6231 MOBILE EQUIP REPAIR PARTS 1,844 6,053 2,700 3,600 6232 SMALL EQUIPMENT REPAIR PARTS - .36 300 300 • 6233 BUILDING REPAIR SUPPLIES 170 388 1,400 500 6235 FUEL, LUBRICANTS, ADDITIVES 12,948 15,984 15,600 22,900 6240 SMALL TOOLS 2,958 1,613 2,000 300 6244 CHEMICALS & CHEMICAL PRODUCTS 32,954 57,534 33,500 42,700 6250 LANDSCAPE MATERIAL & SUPPLIES 954 51 500 500 6255 STREET REPAIR SUPPLIES 4,806 1,973 1,500 2,000 6257 SIGNS & STRIPING MATERIAL - 272 500 300 6260 UTILITY. SYSTEM PARTSISUPPLIES 65,699 131,959 82,000 80,500 6270 COMPUTER SOFTWARE 1,734 43,811 47,800 56,400 TOTAL PARTS & SUPPLIES $ 141,286 $ .267,199 $ 197,600 $ 220,500 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES -GENERAL $ 95,890 $ 74,453 $ 18,500 $ 1000 6311 LEGAL 21 - - - 6312 ENGINEERING - - 3,000 " 6314 AUDITING 9,200 2,700 3,800 3,900 6315 FINANCIAL NON -AUDIT 2,430 1,491 - - 6323 TESTING SERVICES 4,614 5,986 5,000 5,700 6346 POSTAGE 15,236 14,225 21,600 15,600 6347 TELEPHONE SERVICE & LINE CHG 2,688 4,309 4,300 4,500 6351 PAGER SERVICE FEES 703 829 11000 800 6352 TELEPHONE CIRCUITS 1,235 1,600 1,300 1,600 6353 PERSONAL AUTO/PARKING 38 170 - - 6354 CAR WASHES 7 45 - - 6355 CELLULAR TELEPHONE SERVICE 2,390 5,290 1,900 3,500 6356 ONE CALL SERVICE FEE - - 6,400 6,400 6370 GENERAL PRINTING AND BINDING 3,272 5,494 5,000 5,800 • City of lapa 2007 Proposed Budget Operating Budget • Public Utilities - Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities • • LINE ITEM DETAIL (CONVD) CAPITAL OUTLAY 6610 LAND AND LAND IMPROVEMENTS 6670 OTHER EQUIPMENT 6680 MOBILE EQUIPMENT 6700 CONSTRUCTION PROJECTS CAPITAL OUTLAY TRANSFER OUT 6805 TRANSFER OUT TRANSFER OUT MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE MERCHANDISE FOR RESALE TOTAL WATER DEPARTMENT DEBT SERVICE 6490 BOND PAYMENT - PRINCIPAL 6491 BOND PAYMENT -INTEREST 6492 PAYING AGENT/BOND DESTRCTN FEE TOTAL DEBT SERVICE 6488 DEPRECIATION EXPENSE 22,643 112,198 $ - $ 134,841 $ 25,000 $ - 22,000 7,000 19,100 57,000 $ 66,100 $ 64,000 $ - $ 302,863 $ - $ $ - $ .302,863 $ - $ - $ 68 $ - $ 53,000 $ 82,500 $ 68 $ - $ 53,000 $ 82,500 $2,209,169 $ 2,877,220 $ 2,660,200 $ 3,148,200 18.34%' $: 630,000. $ 645,000 $ 680,000 $ 715,000 266,186 235,979 201,600 148,000 500 500 $ 896,186 $ 880,979 $ 882,100 $ 863,500 $1,294,033 $ 1,824,624 $ 1,285,000 $ 1,804,200 0 Actual Actual Budget Proposed Acct PERSONAL SERVICES 2004 2005 2006 2007 6385 INSURANCE 68,600 62,300 63,900 67,100 6409 ELECTRICITY-WELLS/BOOSTER STN 407,281 484,237 402,600 578,500 6410 NATURAL GAS SERVICE 26,967 96,660 42,000 109,400. 6425 MOBILE EQUIPMENT REPAIR LABOR 53 512 1,000 500 6427 BLDG OPERATIONS/REPAIR-LABOR - 3,243 11000 800 6429 STREET REPAIR -LABOR 31,699 7,784 55,000 7,700 6430 COMMUNICATION SYSTEM RPR -LABOR - - 2,000 - 6432 UTILITY SYSTEM REPAIR -LABOR 110,616 7,752 74;100 110,100 6457 MACHINERY & EQUIPMENT -RENTAL 895 - - - 6475 MISCELLANEOUS - 5,351 - - 6476 CONFERENCES AND SCHOOLS 1,100 5,567 4,700 8,500 6477 LOCAL MEETING EXPENSE 43 56 200 100 6479 DUES AND SUBSCRIPTIONS 2,918 300 3,900 3,600 6480 LICENSES, PERMITS AND TAXES 28,153 38,587 40,500 38,000 6483 DISPOSAL OF PROPERTY 11,950 - - - 6487 VISA/MC BANK CHARGES 930 857 1,000 - 6493 DAK CTY SA FEES 1,259 1,383 - - 6505 PUBLIC UTILITY ADMIN FEE 499,600 524,600 579,100 615,600 6506 TRANSFER FOR CENTRAL SVCS 109,300 106,900 84,400 56,900 6535 OTHER CONTRACTUAL SERVICES - - - 5,300 6539 WASTE REMOVAL/SANITATION SERV - 197 200 - 6563 LANDSCAPING 365 - - ' 6569 MAINTENANCE CONTRACTS 5,506 6,815 3,300 5,800 6575 MCES DISPOSAL CHARGES - - 200 10,900 OTHER SERVICES AND CHARGES $1,444,959 $ 1,469,693 $ 1,430,900 $ 1,685,200 CAPITAL OUTLAY 6610 LAND AND LAND IMPROVEMENTS 6670 OTHER EQUIPMENT 6680 MOBILE EQUIPMENT 6700 CONSTRUCTION PROJECTS CAPITAL OUTLAY TRANSFER OUT 6805 TRANSFER OUT TRANSFER OUT MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE MERCHANDISE FOR RESALE TOTAL WATER DEPARTMENT DEBT SERVICE 6490 BOND PAYMENT - PRINCIPAL 6491 BOND PAYMENT -INTEREST 6492 PAYING AGENT/BOND DESTRCTN FEE TOTAL DEBT SERVICE 6488 DEPRECIATION EXPENSE 22,643 112,198 $ - $ 134,841 $ 25,000 $ - 22,000 7,000 19,100 57,000 $ 66,100 $ 64,000 $ - $ 302,863 $ - $ $ - $ .302,863 $ - $ - $ 68 $ - $ 53,000 $ 82,500 $ 68 $ - $ 53,000 $ 82,500 $2,209,169 $ 2,877,220 $ 2,660,200 $ 3,148,200 18.34%' $: 630,000. $ 645,000 $ 680,000 $ 715,000 266,186 235,979 201,600 148,000 500 500 $ 896,186 $ 880,979 $ 882,100 $ 863,500 $1,294,033 $ 1,824,624 $ 1,285,000 $ 1,804,200 0 City Of Hagan 2007 Proposed Budget Operating Budget Public Utilities — Sewer. Department (62) Responsible Manager: Wayne Schwanz, Superintendent of Utilities PURPOSE & DESCRIPTION The purpose of the Public Utilities — Sewer Department is to: • Provide uninterrupted sanitary sewer collection to the City of Eagan • Meet all Federal standards in waste water management The Public Utilities — Sewer Department is responsible for the following functions: • Maintain sanitary sewer collection system including pipes, manholes, and "000�— alV000011 lift stations • Assist other departments as directed • Report to all State and Federal agencies required by law • Inspect and maintain the waste water collection system and ensure its sanitary conveyance to the Metropolitan Treatment Facility at Seneca PERFORMANCE INDICATORS Description 2005 Actual 2006 Budget 2007 Proposed Televised sewer pipe, in feet 73,000 73,000 73,000 Sewer pipe jetted, in miles 99 99 99 Sewer pipe relined, in feet 5,000 5,000 5,000 New sewer service accounts 126 115 100 47 • • City Of Ha jan 2007 Proposed Budget Operating Budget •Public Utilities — Sewer Department (62 ) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Expenditures by Category Services & Other Charges Parts & MCES Wastewater 12% Supplies. Charges `, 3% 72% Personal Services Capital 9% Outlay 4% HIGHLIGHTS & CHANGES Overview: The Sewer Utilities budget shows an increase of $328,100, or 7.3%. Factors accounting for most of the increase upgrade of the telemetry system (SCADA), and capital equipment acquisition. The accounting transfers of two personnel (one into Sewer, one out) result in a net personnel decrease in the Department. Hiahliaht/Chanae 1: The System Control and Data Acquisition (SCADA) telemetry controls necessary to coordinate, monitor, alarm and run all of the sanitary sewer lift station pumps are approaching 20 years old with replacement parts becoming increasingly hard to find. This budget proposes to implement the 1st year of a 3 -year replacement/upgrade program. Financial' Impact: Total impact in 2007 is $50,000 (5 stations at $10,000/station). A similar amount will be required in both 2008 and 2009. Service Level Impact: Timely and scheduled replacement of this critical control system will help insure a reliable and uninterrupted service delivery program for our sanitary sewer system Hiahlisaht/Chanae 2: Replacement of the location van/vehicle and the sewer jetter, considered under the Part II •CIP process, is proposed. . Financial Impact: The location van is $21,000; the jetter is $180,000. Total budget impact is $201,000. Service Level Impact: Timely replacement of equipment allows the Sewer operation to continuously meet the community's demand with a significantly higher than average reliability and very few flow interruptions while maintaining our sewer rates in the bottom 20 percentile of metropolitan communities Hlahliaht/Chanae 3: The Superintendent of Utilities position was transferred from the General Fund into Water (61) and Sewer (62) on a 2/3 - 1/3 split to better reflect the tasks/activities of this administrative/management position Financial Impact: The $36,900 increase to the Sewer Department is offset by a corresponding decrease in the General Fund Service Level Impact: This accounting change does not affect service levels 0 Hiahilaht/Change 4: A previously classified Utility Field Maintenance Worker has been moved out of the Sewer Department and into the Water Department as a Water Production Worker due to the recent expansion of the Coachman Water Treatment Plant and additional wells Financial Impact: The Sewer budget is decreased by $54,900; the Water budget is increased by the same amount Service Level Impact: This reassignment of personnel recognizes the appropriate allocation of resources needed to properly maintain both utility systems and the required level of service delivery to our customers AN 410" qry of Bao 2007 Proposed Budget Public Utilities — Sewer Department (62) Responsible Manager: Wayne Schwanz, Superintendent of Utilities EXPENDITURE SUMMARY Operating Budget Depreciation Expense $ 583,216 $ 609,874 $ 600,000 $ 607,700 POSITION INVENTORY Actual Actual Budget Proposed Expenditure 2004 2005 2006 2007 Personal Services $ 384,871 $ 424,485 $ 443,800 434,100 Parts and Supplies 56,923 79,076 86,800 135,700 Services and Other Charges 475,881 515,208 556,600 564,700 MCES Disposal Charges 2,976,810 3,253,526 3,403,300 3,499,000 Capital Outlay 1/3 6,407 29,900 215,000 Construction Projects - 44 - - Transfer Out Total - $3,894,485 6,410 - - $4,848,500 $4,520,400 $ 4,285,156 Depreciation Expense $ 583,216 $ 609,874 $ 600,000 $ 607,700 POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Superintendent 0 0 0 1/3 693 Utilities Operations Supervisor 2/3 2/3 2/3 2/3 1,387 System Maintenance Workers 5 5 5 4 8,320 Administrative Assistant (System Analyst) . 1/3 1/3 1/3 1/3 693 Total 6 6 6' 5.33 11,093 2007 WORK PLAN Activity Routine 1 Sanitary sewer administration 2 Sanitary Field Operation/Repair 3 Storm sewer field maintenance 4 Emergency call outs 1+9 • • 0 • C7 Uty Of Eapa 2007 Proposed Budget Operating Budget This page intentionally left blank. 0 Citi of Eajan 2007 Proposed Budget Operating Budget Public Utilities - Sewer Department (62) • Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL 31 Actual Actual Budget Proposed Acct PERSONAL SERVICES 2004 2005 2006 2007 6110 SALARIES AND WAGES -REGULAR $ 286,165 $ 273,652 $ 301,000 $ 289,000 6112 OVERTIME -REGULAR 6,562 15,704 9,000 13,400 6130 SALARIES AND WAGES -TEMPORARY 5,223 15,296 20,200 20,800 6131 OVERTIME -TEMPORARY 6142 PERA COORDINATED - 16,535 26 16,057 - 18,600 - 18,900 6144 FICA 22,212 22,470 25,300 24,700 6151 HEALTH INSURANCE 34,232' 36,467 48,300 48,500 6152 LIFE 591 558 - - 6154 DISABILITY- LONG TERM 1,098 1,055 - - 6155 WORKERS COMPENSATION 12,253 12,957 21,400 18,800 6157 RETIREE INSURANCE FUNDING - 30,243 - TOTAL PERSONAL SERVICES $ 384,871 $ 424,485 $ 443,800 $ . 434,100 PARTS & SUPPLIES 6210 OFFICE SUPPLIES. $ 2,211 $ 1,235 $ 3,200 $ 2,100 6211 OFFICE PRINTED MATERIAUFORMS 2,133 118 - - 6220 OPERATING SUPPLIES -GENERAL 506 841 1,000 1,000 • 6221 FILM & FILM PROCESSING 6222 MEDICAURESCUE/SAFETY SUPPLIES 17 1,255 - 901 - 1,400 - 1,000 6223 BUILDING/CLEANING SUPPLIES - 67 - 100 6224 CLOTHINGIPERSONAL EQUIPMENT 1,685 2,048 1,800 1,400 6230 REPAIR/MAINTENANCE SUPPLIES -GENERAL (78) 59 " 6231 MOBILE EQUIP REPAIR PARTS 5,459 6,855 3,100 6,500 6232 SMALL EQUIPMENT REPAIR PARTS 43 - - - 6235 FUEL, LUBRICANTS, ADDITIVES 10,614 13,194 12,300 17,500 6240 SMALL TOOLS 1,990 760, 1,500 200 6241 SHOP MATERIALS 684 74 386 874 " 1,000 1,000 6255 STREET REPAIR SUPPLIES 200 200 6257 SIGNS & STRIPING MATERIAL 1,408 - 6260 UTILITY SYSTEM PARTS/SUPPLIES 28,121. 7,190 15,060 63,500 6270 COMPUTER SOFTWARE 801 44,548 46,300 41,200 TOTAL PARTS & SUPPLIES $ 56,923 $ 79,076 $ 86,800 $ 135,700 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES -GENERAL $ 40,593 $ 10,486 $ 18,500 $ 18,600 6314 AUDITING 9,200 6,100 . 3,800 3,900 6315 FINANCIAL NON -AUDIT 2,430 1,491 - - 6346 POSTAGE 14,961 12,524 14,800 15,600 6347 TELEPHONE SERVICE & LINE CHG 2,833 3,109 - 3,000 6351 PAGER SERVICE FEES 342 371 600 300 6352 TELEPHONE CIRCUITS 1,860 1,978 2,100 2,000 6353 PERSONAL AUTO/PARKING 19 70 - ` 6354 CAR WASHES 6355 CELLULAR TELEPHONE SERVICE 46 2,421 19 2,048 - 900 - 1,800 6356 ONE CALL SERVICE FEES 11,332 11,990 6,400 6,400 6357 ADVERTISING/PUBLICATION 113 - - - 6385 INSURANCE 11,700 - 16,5700 00 183 14, - 15,400 - 6405 ELECTRICITY 31 City of Eatao 2007 Proposed Budget Operating Budget Public Utilities - Sewer Department (62) Responsible Manager: Wayne Schwanz, Superintendent of Utilities 6408 ELECTRICITY -LIFT STATIONS 6425 MOBILE EQUIPMENT REPAIR LABOR 6427 BUILDING OPERATIONSAEPAIR-LAB 6429 STREET REPAIR -LABOR 6430 COMMUNICATION SYSTEM RPR -LABOR 6432 UTILITY SYSTEM REPAIR -LABOR 6457 MACHINERY AND EQUIPMENT 6476 CONFERENCES AND SCHOOLS . 6477 LOCAL MEETING EXPENSES 6479 DUES AND SUBSCRIPTIONS 6480 LICENSES, PERMITS AND TAXES 6487 VISA/MC BANK CHARGES 6505 PUBLIC UTILITY ADMIN FEE 6506 TRANSFER FOR CENTRAL SVCS 6535 OTHER CONTRACTUAL SERVICES 6539 WASTE REMOVAUSANITATION SERVICES 6569 MAINTENANCE CONTRACTS 6575 MCES DISPOSAL CHARGES OTHER SERVICES AND CHARGES •CAPITAL OUT 6670 OTHER EQUIPMENT 6680 MOBILE EQUIPMENT 6700 CONSTRUCTION PROJECTS CAPITAL OUTLAY TRANSFER OUT 6805 TRANSFER OUT TRANSFER OUT TOTAL SEWER DEPARTMENT 6488 DEPRECIATION EXPENSE r� LINE ITEM DETAIL (CONT'D) 18,548 19,360 18,700 21,000 192 1,064 1,000 - - 2,620 - - 8,038 1,329 1,000 - 400 400 53,334 112,818 144,000 143,000 562 - 1,000 1,000 2,338 5,185 2,700 2,700 62' 49 300 - 69 22 - 211 172 100 1,000 930 857 1,000 - 237,800 249,700 275,600 293,000 54,700 53,400 42,200 28,500 _ - 5,000 5,300 80 156 - - 1,167 1,607 1,800 1,800 2,976,810 3,253,526 3,403,300 3,499,000 $3,452,691 $ 3,768,734 $ 3,959,900 $ 4,063,700 $ - $ 6,407 $ 8,000 $ 14,000 _ - 21,900 201,000 $ 6,407 $ 29,900 $ 215,000 $ _ $ - $ 6,410 $ - $ $ - $ 6,410 $ - $ - $3,894,485 $ 4,285,112 $ 4,520,400 $ 4,848,500 7.26% $ 583,216 $ 609,874 $ 600,000 $ 607,700 5a plpotBajao 2007 Proposed Budget Public Utilities Street Lighting (63) Responsible Manager: Russ Matthys, City Engineer PURPOSE & DESCRIPTION Operating Budget The purpose of the Public Utilities — Street Lighting Department is to: • Provide adequate lighting for public safety on city streets and at signalized .intersections • Ensure the electrical provisions for the traffic control signals within the City of Eagan • Coordinate the maintenance of the street lighting system for optimal performance • Administer the maintenance of the traffic control signals' operation and infrastructure The Public Utilities — Street Lighting Department is responsible for the following functions: 1- e Coordinate the installation of street lights on all streets within City jurisdiction, both private developments or public improvements • Address maintenance needs of the street lighting system & traffic control signals within the City, including light replacement, pole repair/refurbishment • Provide field surveying, preparation of feasibility studies, reports and staff support at Council meetings for public improvements for street lights • Manage the reimbursement of electrical services for street lighting and traffic signals Update Capital Improvement Program for City's street light and traffic control signals • Coordinate/present Public Hearings/Final Assessment Hearings for City improvements for street lights PERFORMANCE INDICATORS �3 0 • • 2005 2006 2007 Description Actual Budget Propos_ Number of street lights installed/upgraded 39 35 43 Number of traffic signals installed 1 1 2 �3 0 • • City 0f Balan 2007 Proposed Budget Operating Budget •Public Utilities — Street Lighting Department 63 Responsible Manager: Russ Matthys, City Engineer Expenditures by Category 'IY Services & Other Charges 100% Service Level Impact: No impact on service level HIGHLIGHTS & CHANGES Overview: The Street Lighting budget shows an increase of 14.7% due largely to continued increases in the cost of electricity, additional preventative maintenance and an above-average year for major intersection upgrades Hichliaht/Change 1: Anticipated increases in the cost of electricity due to greater cost responsibility for some traffic control signals and the installation of new street lights Financial Impact: Increase of $42,400 over 2006 budget Hiahliaht/Chanae 2: Preventive maintenance is proposed to be 11% higher. Preventive maintenance work estimates are based field surveys of City -owned street lights performed in 2006. Financial impact: Additional cost of $4,000 over the 2006 budget of $37,200 Service Level Impact: Preventive maintenance is expected to be less costly than emergency maintenance and is hoped to extend the useful life of the street lights •Hiahillaht/Chanae 3: A one-year increase in the approved Street Lights CIP improvements will increase relevant costs by 24.2% Financial Impact: Additional cost of $8,000 over the 2006 budget of $33,000. The $41,000 CIP expenditure would be the highest anticipated in the next five years, with an expected annual average of $18,000 over the next 4 -year period Service Level Impact: The proposed street light improvements will help maintain consistency of streetlighting throughout the community • Hinhllaht/Change 4: A new agreement with Dakota County Transportation Department provides on -demand service calls for City -owned traffic signals Financial Impact: Annual cost of $6,000 ($1,500 per signal) for contractual services that were inadvertently not included in 2006 budget Service Level Impact: This arrangement with the County provides a greater level of service for the City -owned traffic control signals at a reduced price compared to the previous use of commercial electricians City of Eagan 2007 Proposed Budget Operating Budget •Public Utilities -Street Lighting. Department ( 63 ) Responsible Manager: Russ Matthys, City Engineer LINE ITEM DETAIL 0 Actual Actual Budget Proposed 4c ct SERVICES & OTHER CHARGES 2004 2005 2006 2007 6315 FINANCIAL - NON -AUDIT $ 1,215 $ . 1,102 $ 2,000 $ 2,800 6406 ELECTRICITY -STREET LIGHTS 267,541 312,409 312,,600 355,000 6407 ELECTRICITY -SIGNAL LIGHTS 27,031 18,105 15,000 15,000 6411 UTILITY SYSTEM STREETLIGHT 25,112 11,937 33,000 41,000 6432 UTILITY SYSTEM REPAIR -LABOR 13,129 50,996 37,200 41,200 6505 PUBLIC UTILITY ADMIN FEE 26,400 38,000 29,000. 30,800 6535 OTHER CONTRACTUAL SERVICES 108 13,465. - 6,000 OTHER SERVICES AND CHARGES $ 360,536 $ . 446,014 $ 428,800 $ 491,800 TOTAL STREET LIGHTING DEPARTMENT $ 360,536 $ 446,014 $ 4289800 $ 491,800 14.69% 6488 DEPRECIATION EXPENSE $ 12,797 $ 12,797 $ 32,000 $ 12,800 0 • • City 0f Bajan 2007 Proposed Budget Operating Budget This, page intentionally left blank. Affi City Of Bap 2007 Proposed Budget Operating Budget Public Utilities — Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities PURPOSE & DESCRIPTION The purpose of the Public Utilities — Storm Drainage Department is to: • Maintain the City's collection and conveyance system for excess surface water runoff The Public Utilities _ Storm Drainage Department is responsible for the following functions: • Inspect and maintain drainage system consisting of pipes, ponds and pumping stations • Maintain the inlets and outlets for ponds including the removal of any erosion/siltation that restricts the flow or limits ponding capacities • Respond to emergency pumping station alarms.or resident calls during major peak events • Assist with Water Quality programs and objectives PERFORMANCE INDICATORS Description Televised storm pipes, in miles Drainage complaints received Construction inspections performed Ponds. inspected Control structures checked 2005 2006 2007 Actual Budget Proposed is 5,000 5,UUU o,uuu 22 20 18 157 160 160 136 140 140 96 100 100 • • • • 0 Citi Of Haps 2007 Proposed Budget Operating Budget Public Utilities - Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Expenditures by Category HIGHLIGHTS & CHANGES Overview: The Storm Drainage budget shows an increase of $41,200, or 27.6% over 2006. Factors accounting for this increase include a more accurate prediction of precipitation and related energy costs, and a capital improvement to dredge a storm water detention pond. Hidhliaht/Chance 1: With annual precipitation difficult to predict, a 10 -year average (1996-2005) was used to project a percentile deviation from the 2005 recorded amount and related actual costs. Rising energy costs for the pumping stations were factoredinto the cost estimates as well. Financial Impact: At an estimated increased cost of $18,200, this represents 12.2% of the budget increase Service Level Impact: There is no change proposed to the current service levels for storm water control Hiahliaht/Chanae 2: Pond AP -13.1 (Lifetime Fitness) is proposed to be dredged to restore the original ponding capacity necessary for flood control Financial Impact: At an estimated one-time increased cost of $20,000, this represents 13.4% of the budget increase Service Level Impact: Delay in the capital improvement will carry risks of localized flooding during smaller events EXPENDITURE SUMMARY Personal Services & Services Other 18.14% Charges 2005 75.75% Parts & Personal Services Supplies $ 144,736' 6.11% HIGHLIGHTS & CHANGES Overview: The Storm Drainage budget shows an increase of $41,200, or 27.6% over 2006. Factors accounting for this increase include a more accurate prediction of precipitation and related energy costs, and a capital improvement to dredge a storm water detention pond. Hidhliaht/Chance 1: With annual precipitation difficult to predict, a 10 -year average (1996-2005) was used to project a percentile deviation from the 2005 recorded amount and related actual costs. Rising energy costs for the pumping stations were factoredinto the cost estimates as well. Financial Impact: At an estimated increased cost of $18,200, this represents 12.2% of the budget increase Service Level Impact: There is no change proposed to the current service levels for storm water control Hiahliaht/Chanae 2: Pond AP -13.1 (Lifetime Fitness) is proposed to be dredged to restore the original ponding capacity necessary for flood control Financial Impact: At an estimated one-time increased cost of $20,000, this represents 13.4% of the budget increase Service Level Impact: Delay in the capital improvement will carry risks of localized flooding during smaller events EXPENDITURE SUMMARY 'go Actual Actual Budget Proposed Expenditure 2004 2005 2006 2007 Personal Services $ 112,821 $ 144,736' $ 33,000 34,500 Parts and Supplies . 13,908 12,098 11,700 11,600 Services and Other Charges 178,031 128,163 103,400 144,200 Capital Outlay - 1,275 1,000 - Construction Projects 15 2,544 - Total $ 304,775 $ 288,816 $ 149,100 $ 190,300 Depreciation Expense $ 949,481 $ 963,769 $ 950,000 $ 960,500 'go AM City Of Eapn 2007 Proposed Budget Operating Budget ' Public Utilities Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours System Maintenance Workers 0.5 0.5 0.5 0.5 1,040 Total 0.5 0.5 0.5 0.5 1,040 2007 WORK PLAN Activitv Routine 1 Inspection/clean-up of structures 2 Lift station maintenance 3 Weed harvesting 4 Water quality support 5 Aeration 6 Storm response is 0 • • • City Eajan Of 2007 Proposed Budget Operating Budget Public Utilities - Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL Actual Actual Budget Proposed Acct PERSONAL SERVICES 2004 2005 2006 2007 6110 SALARIES AND WAGES -REGULAR $ 79,958 $ 104,182 $ 23,800 6112 OVERTIME -REGULAR 1,184 1,730 1,000 1,100 6130 SALARIES AND WAGES -TEMPORARY 8,140 6,523 - - 6142 PERA-COORDINATED 4,566 5,941 1,500 1,600 6144 FICA 6,537 8,082 1,900 2,000 6151 HEALTH INSURANCE 9,054 13,815 4,100 4,500 .6152 LIFE 172 223 - - 6154 DISABILITY - LONG TERM, 313 426 - - 6155 WORKERS COMPENSATION 2,897 3,814 700 800 TOTAL PERSONAL SERVICES $ 112,821 $ 144,736 $ 33,000 $ 34,500 PARTS & SUPPLIES 6210 OFFICE SUPPLIES $ 1,185. $ 47 $ - $ 100 6211 OFFICE PRINTED.MATERIAUFORMS 2,133 - - " 6220 OPERATING SUPPLIES -GENERAL 224 9 500 500 6222 MEDICAURESCUE/SAFETY SUPPLIES 176 6 200 200 6224 CLOTHING/PERSONAL EQUIPMENT 523 356 300 300 6232 SMALL EQUIPMENT REPAIR PARTS - - 300 1100 6234 FIELD/OTHER EQUIPMENT REPAIR - - 100 100 6235 FUEL, LUBRICANTS, ADDITIVES - 10 - - 6240 SMALL TOOLS 223 - 300 300 6250 LANDSCAPE MATERIAL & SUPPLIES 108 28 - - 6255 STREET REPAIR SUPPLIES 3,007 - - 6256 SNOW REMOVAL/ICE CONTROL SUPPLIES - 40 - - 6257 SIGNS & STRIPING MATERIAL - 401 - - 6260 UTILITY SYSTEM PARTS/SUPPLIES 5,632 10,911 10,000 10,000 6270 COMPUTER SOFTWARE 697 290 TOTAL PARTS & SUPPLIES $ 13,908 $ 12,098 $ 11,700 $ 11,600 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES -GENERAL $ 8,131 $ 16,734 $ - $ - 6353 PERSONAL AUTO/PARKING - 113 - - 6385 INSURANCE 3,600 3,800 .8,100 8,500 6408 ELECTRICITY -LIFT STATIONS 61,848 81,593 64,700 82,900 6427 BUILDING OPERATIONS/REPAIR-LAB - 1,746 - - 6429 STREET REPAIR -LABOR 794 - 6432 UTILITY SYSTEM REPAIR - LABOR 28,703 - 5,000 29,900 6457 MACHINERY AND EQUIPMENT 1,207 611 5,000 1,000 6476 CONFERENCES AND SCHOOLS 496 1,674 200 200 6505 PUBLIC UTILITY ADMIN FEE 18,500 19,400 20,400 21,700 6535 OTHER CONTRACTUAL SERVICES 53,585 778 - 6539 WASTE REMOVAL/SANITATION SERVICES - 107 - 6569 MAINTENANCE CONTRACTS 1,167 1,607 - - OTHER SERVICES AND CHARGES $ 178,031 $ 128,163 $ 103,400 $ 144,200 CAPITAL OUTLAY 6630 OTHER IMPROVEMENTS 6640 MACH INERY/EQUIPMENT 6670 OTHER EQUIPMENT 6700 CONSTRUCTION PROJECTS CAPITAL OUTLAY TOTAL STORM DRAINAGE DEPARTMENT 6488 DEPRECIATION EXPENSE $ _ $ - $ 1,000 $ - 185 - 1,090 15 2,544 - $ 15 $ 3,819 $ 1,000 $ $ 304,775 $ 288,816 $ 149,100 $ 190,300 27.63% $ 949,481 $ 963,769 $ 950,000. $ 960,500 City 0f Balaa 2007 Proposed Budget Operating Budget Public Utilities - Water Quality (65) Responsible Manager: Eric Macbeth, Water Resource Coordinator PURPOSE & DESCRIPTION The purpose of the Public Utilities — Water Quality Department is to: • Protect and improve natural, aesthetic, and recreational qualities of Eagan Lakes, ponds, and wetlands for enjoyment and use by present and future resident of the City and regional community The Public Utilities — Water Quality Department is responsible for the following functions: • Direct implementation of Eagan Water Quality Management Plan • Ensure City compliance with Minnesota Wetland Conservation Act rules • Coordinate City compliance with Minnesota storm -water discharge permit and impaired water regulations • Monitor and manage water resources and other land use activities directly or indirectly affecting water resources • Educate community about land and water issues relating to water quality, lakes, and wetlands • Coordinate among city, county, state, and federal entities to protect and improve water resources PERFORMANCE INDICATORS Description Lakes, ponds monitored in long-term program Lakes, ponds aerated in winter for fisheries Loads of aquatic plants removed from lakes Lakes, ponds treated with alum Impaired-Water/TDML studies Climb Theatre performances in K-12 schools 2005 2006 Actual Budget P 18 8 148 4 ��+ 19 6 150 2. 6 2007 19. 6 150 2 6 • C7 • • • • 4P' 6ty orBaQan 2007 Proposed Budget Operating Budget Public Utilities — Water Quality Department (65) Responsible Manager: Eric Macbeth, Water Resource Coordinator HIGHLIGHTS & CHANGES Expenditures by Category Overview: The Water Quality ' budget shows an Personal overall increase. of $17,000, or 3.0%. Significant Services Parts & increases in supplies and other services and Supplies 54% aria charges are largely • offset by transferal of water quality improvement projects from the operations budget to the Public Works Capital Improvements Services & Program. This budget is a first response to recent Capita Other survey results indicating 99% of residents say water Outlay?!! charges quality of Eagan lakes and ponds is important. 0% 38% Assuming Council approval by late -2006 of the Eagan Water Quality Management Plan (Plan) update, this budget also anticipates initial increases in program operational capabilities in 2007, as likely to be recommended by the. Plan. Hinhliaht/Chanae 1: Doubling of alum chemical Financial Impact: Increase of $3,500, from $3,600 in 2006 to $7,100 in 2007. Service Level Impact: Expanded treatments to manage phosphorus inputs to lakes and ponds Hiahlistht/Chance 2: Additional landscape materials and supplies Financial Impact: One-time increase of $3,000, from $2,000 to $5,000 Service Level Impact: Development of new rock shore -fishing access areas at up to 6 lakes in City Parks Hiahliaht/Chanas 3: New data management, analysis, and presentation software program for long-term water quality data Financial Impact: One-time increase of $9,000, from $500 to $9,500 Service Level Impact: Expanded, state-of-the-art capability to manage, analyze, and present long-term water quality data Hiahlicht/Chanae 4: Nearly threefold increase in professional services consultants Financial Impact: Increase of $22,500, from $12,500 to $35,000_ Service Level Impact: Conduct required studies and technical assessments for City compliance with State storm water discharge permit and impair water regulations Highliaht/Channe 5: Nearly 50% increase in lab testing services Financial Impact: Increase of $8,000, from $17,000 to $25,000 Service Level Impact: Increased lab testing of lake.water samples for State -required TMDL (Impaired Water) studies. Hiahiiaht/Chanae 6: Nearly doubling of watershed management assessment Financial Impact: Increase of $14,200, from $16,200 to $30,400 Service Level Impact: Support GunClub Lake WMO new program initiatives: a) institute resident water resources cost -share grant program, b) conduct interagency Nicols Meadow groundwater monitoring project, c) develop goose & aquatic plant management policies d) leverage external grant opportunities, and e) sponsor University of Minnesota Extension workshops for homeowners. City of Ealad 2007 Proposed Budget Operating Budget Public Utilities - Water Quality Department (65) • Responsible Manager: Eric Macbeth, Water Resource Coordinator EXPENDITURE SUMMARY POSITION INVENTORY Personnel 2004 Actual 2006 Actual Hours Budget Proposed Expenditure 1 2004 2,080 2005 1 2006 2007 Personal Services $ 198,556 $ 205,759 $ 302,000 317,000 Parts and Supplies 0.5 32,721 0.5 25,351 1,040 29,300 44,500 Services and Other Charges 0.5 106,910 1,040 • 121,225 0.5 179,400 220,300 Capital Outlay 1,040 12,258 3 4,152 4.5 55,000 900 Total $ 350,445 $ 356,487 $ 565,700 $ 582,700 Depreciation Expense $ 59,213 $ 85,303 $ 45,000 $ 61,700 Transfer Out $. 55,777 $ - $ - $ - POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Water Resources Coordinator 1 1 1 1 2,080 Water Resources Specialist 1 1 1 1 2,080 Water Resources Assistant/Technician 0 1 1 1 2,080 System Maintenance Worker 0.5 0.5 0.5 0.5 1,040 Operations Support Specialist 0 0 0.5 0.5 1,040 • Clerical Technician 0.5 0.5 0.5 0.5 1,040 Total 3 4 4.5 4.5 9,360 2007 WORK PLAN Activity Routine 1 Administration/supervision/planning 2 Monitor & manage water resources 3 Enhance recreational fishing; assess ecological conditions 4 Special projects/research 5 Public education/involvement 6 Public relations/customer service 7 Interagency coordination/partnerships 8 Professional development/training 9 Technical fieldwork for interagency collaborative grant study of Nicols Fen area 10 Coordination for required Stormwater Pollution Prevention Plan annual report 11 Expanded monitoring/coordination for required Impaired Waters/TMDL studies • �3 Civ 0f Eap. 2007 Proposed Budget Operating Budget im • Public Utilities - Water Quality Department (65) Responsible Manager: Eric Macbeth; Water Resources Coordinator LINE ITEM DETAIL W, Actual Actual Budget Proposed Acct PERSONAL SERVICES 2004 2005 2006 2007 6110 SALARIES AND WAGES -REGULAR $ 151,612 $ 155,208 $ 234,400 $ 243,900 .6112 OVERTIME -REGULAR 305 104 - - 6130 SALARIES AND WAGES -TEMPORARY 10,333 12,010 - - 6142 PERA-COORDINATED 8,309 8,971 14,100 15,200 6144 FICA 11,463 11,502 17,900 18,700 6151 HEALTH INSURANCE 13,11.1 14,535 31,100 34,300 6152 LIFE 328 '333 - - 6154 DISABILITY - LONG TERM 610 646 - - 6155 WORKERS COMPENSATION 2,485 2,450 4,500 4,900 TOTAL PERSONAL. SERVICES $ 198,556 $ 205,759 $ 302,000 $ 317,000 PARTS & SUPPLIES 6210 OFFICE SUPPLIES $ 119 $ - $ 100 $ 100 6215 REFERENCE MATERIALS 95 145 200 200 6220 OPERATING SUPPLIES -GENERAL 1,084 634 2,000 1,500 6222 MEDICAL/RESCUE/SAFETY SUPPLIES - 19 - 160 6224 CLOTHING/PERSONAL EQUIPMENT - 25 200 200 6231 MOBILE EQUIP REPAIR PARTS 15,176 7,353 11,500 8,200 6232 SMALL EQUIPMENT REPAIR PARTS 154 - 200 .200 6234 FIELD/OTHER EQUIPMENT REPAIR 344 - 500 500 6235 FUEL, LUBRICANTS, ADDITIVES 4,473 7,479 7,400 11,300 6240 SMALL TOOLS 74 57 100 100 • 6244 CHEMICALS & CHEMICAL PRODUCTS 1,509 5,110 3,600 7,100 6250 LANDSCAPE MATERIAL & SUPPLIES 7,955 4,059. '2,000 5,000 6257 SIGNS & STRIPING MATERIAL 737 181 1,000 500 6270 COMPUTER SOFTWARE 1,001 289 500 9,500 TOTAL PARTS & SUPPLIES $ 32,721 $ 25,351 $ 29,300 $ 44,500 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES -GENERAL $ 11,379 $ 21,183 $ 12,500 $ 35,000 6312 ENGINEERING 10,671 - 10,000 5,000 . 6313 PLANNING - - 50,000 50,000 6323 TESTING SERVICES 16,595 20,419 17,000 25,000 6346 POSTAGE - 21 100 100 6353 PERSONAL AUTO/PARKING 93 5 200 100 6355 CELLULAR TELEPHONE SERVICE 161 194 300 200 6359 LEGAL NOTICE PUBLICATION - 166 200 200 6370 GENERAL PRINTING AND BINDING 5,534 2,747 3,000 500 6385 INSURANCE 2,100 2,200 4,000 4,200 6405 ELECTRICITY. 906 1,414 1,000 1,600 6426 SMALL EQUIPMENT REPAIR -LABOR - - 200 - 6457 MACHINERY AND EQUIPMENT. - - 300 100 6475 MISCELLANEOUS - 232 300 300 6476 CONFERENCES AND SCHOOLS 1,721 1,392 1,600 2,400 6477 LOCAL MEETING EXPENSES 243 198 200 200. 6479 DUES AND SUBSCRIPTIONS 215 418 200 400 6480 LICENSES, PERMITS AND TAXES 623 276 500 300 6495 WATERSHED MANAGEMENT ASSESSMNT 11,369 11,395 16,200 30,400 6505 PUBLIC UTILITY ADMIN FEE 45,300 47,600 50,000 53,200 . 6535 OTHER CONTRACTUAL SERVICES - 5,205 2,500 2,600 6860 COST SHARING PAYMENTS- 6,160 91100 8,500 • OTHER.SERVICES AND CHARGES $ 106,910 $ 121,225 $ 179,400 $ 220;300 W, �Iy 0f Eagan 2007 Proposed Budget Operating Budget Public Utilities — Water Quality Department (65) Responsible Manager: Eric Macbeth, Water Resources Coordinator LINE ITEM DETAIL (CONT'.D) Actual Actual Budget Proposed Acct CAPITAL OUTLAY 2004 2005 2006 2007 6630 OTHER IMPROVEMENTS $ $ - $ 55,000 $ - 6660 OFFICE FURNISHINGS & EQUIPMENT 2,260 .4,152 - - 6670 OTHER EQUIPMENT 9,998 - - 900 6680 MOBILE EQUIPMENT - - CAPITAL OUTLAY $ 12,258 $ 4,152 $ 55,000 $ 900 TOTAL WATER QUALITY DEPARTMENT $ 350,445 $ 356,487 $ 565,700 $ 582,700 3.01% 6488 DEPRECIATION EXPENSE $ 59,216 $ 85,303 $ 45,000 $ 61,700 6805 TRANSFER OUT $ 55,777 $ - $ - $ - •. is 0 • • Agenda Information Memo September 14, 2006 A 2007 CASCADE BAY BUDGET ACTION TO BE CONSIDERED: • To provide direction to staff on the 2007 rates, on the 2007 Cascade Bay operating budget, and to direct that the items be placed on a future City, Council Meeting Consent Agenda for formal ratification. The Cascade Bay operating budget for 2007 is presented for consideration by the City Council .at the Special meeting. Campus Facilities Manager Vaughan, Superintendent of Operations Mesko, City Administrator Hedges, Director of Parks and Recreation Johnson, Director of Administrative Services VanOverbeke, and Chief financial Officer Pepper recently met and reviewed the proposed rates, revenue estimates, and expenditure requests included in this budget. The proposed 2007 budget is balanced at $1,211,500. This is an increase of approximately 3.1% or $36,300 from the 2006 budget of $1,175,200. More detail is provided in the following sections of this memo. The.budget includes a proposed change to the admission rates for the first time since the 2003 season. A complete rate history from the openin of the facility broken down by the various categories is .provided on page The balanced budget provides for the appropriate level of renewal and replacement funds, includes an allocation for capital equipment, and annual debt service. Attendance The proposed 2007 budget is based on an estimated attendance of 134,0.00. The 2006 budget was based on an estimated. attendance of 146,000. The actual attendance for 2005 was 128,696. The following is a table displaying attendance for seven years of operation and for two: years of budget estimates for Cascade Bay. Le Cascade Bay Attendance ary 1999 .2000 1 2001 2002 2003 2004, 2005 2006 2007 Attendance Actual Actual Actual Actual Actual Actual Actual Budget Budget 63,000 GroupSales 125,865 145,902 127,463 131,013 127,063 140,000 136,800 March Sales 15,201 Season Pass 3,549 14,403. 4,000 6,100 Concessions 239,299 206,647 232,790 168,957 222,328. Admissions 77,852 64,384 66,229 55,395 48,832 28,403 38,339 50,000 41,000 Daily 10,661 16,335 22,245 19,841 20,000 22,000' Private Rental 4,473 Admissions 72,843 70,457 82,794 68,383 82,112 53,801 72,976 79, 000 74,000 Group or 6,152 1, 091 3,357 1,113 Interest 36,626 39,603 25,417 Birthday 10129 16,360, 19,08 17,81 17.576 18.288. 17,381 17,000 19,000 Total Attendance 160,824 151,201 168,109 141,592 148,520 100,4921128,696 146,000 134,000 Season Passes Sold 9,100 7,800 7,000 6,175 5,275 4,120 3,940 4,500 4,100 Rounds. of Golf n/.a ' n/a . n/a n/a n/a n/a nla 8,000 12,000 As a reminder, the facility was built based on estimated average attendance of 135,000. The average attendance over the six year period: (1999-2005) calculates to 142,566. The highest attendance year was 2001 with 168,109 guests while, the lowest year was 2004 with 100,492 reflecting the colder than average summer. Revenues The following table illustrates actual revenues for the years 2001 through 2005, the a roved bud at for 2006 and the proposed budget for 2007. Cascade Say Revenue Summa 2001 Actual 2002 2003 Actual Actual 2004 Actual 2005 Actual 2006 Budget 2007 Budget Admissions $ 742,888 $ 671,041 $ 756,162 $519,056 $ 598,185 $ 720,000 $ 712,500 After 5 m Adm 69,809 59,025 65,566 39,251 64,973 65,000 63,000 GroupSales 125,865 145,902 127,463 131,013 127,063 140,000 136,800 March Sales 15,201 2,853 4,518 3,549 14,403. 4,000 6,100 Concessions 239,299 206,647 232,790 168,957 222,328. 220,000 211,000 Vending 4,083 2,089 1,332 909 3,172 1,200 1,400 Classes & Cams 3,062 10,661 16,335 22,245 19,841 20,000 22,000' Private Rental 4,473 7,345 5,000 5,000 Miniature Golf 33,700 Other 6,152 1, 091 3,357 1,113 Interest 36,626 39,603 25,417 15,751 13,887 20,000 Total $1,236,833 $ 1,143,973 $1,228,492 $ 901,847 $1,072,310 $1,175,200 $1,211,500 Enclosed on page 2 is a copy of actual revenues for the years 2005, the budgeted revenues for 2006 and estimated revenues for 2007 with more detail for that year. The 2007 revenue estimates are based on an increase to admission rates as previously noted. The sale of golf rounds and rate increase L07 • C] • are off setting the slightly lower attendance projection to arrive at the estimated 2007 revenue of $1,211,500. Staff continues to seek ways to generate more revenue. This effort results in additional revenue from time periods where the facility would otherwise not be open. Additional information is presented later in the memo outlining both challenges and brainstorming ideas for 2007. Personnel The personnel section of the Cascade Bay budget is consistent with the presentation for the 2006 budget and continues to reflect the implementation of. the -recent organizational study. To better utilize resources and to gain efficiencies, the study recommended more consolidation of operations between the two enterprise facilities located on the Municipal Center Campus and the Community Center. The study recommended and the City Council authorized the elimination of the Cascade Bay Manager and Civic Arena Manager positions, and the creation. of the Campus Facilities Manager and the Superintendent of Operations positions. This action and.the related reallocation of support personnel between the Civic Arena and Cascade Bay are reflected in the following table for Cascade Bay and in the presentation of the Civic Arena budget. Finally, with the consolidation of the management of the two campus facilities the need for operational support is reflected in this proposed. budget, through the continuation of an additional clerical/administrative position. The new position was added in 2006 with a one year sunset provision to allow the full implementation of the new operational model and to provide for a management review of organizational needs and service delivery over the year. Staff is recommending that the position be approved on a`continuing basis beginning in 2007 to maintain the required support. services to the management of the enterprise facilities. Enclosed on page,( is a copy of the Cascade Bay personnel table. Per the earlier.City Council request the personnel table for the Civic Arena is the com lenient of the Cascade Bay personnel table and is also presented on. page. Expenditures Enclosed on pages through_ is a copy of the proposed line item. budget for 2007. Consistent with previous years, this proposed budget provides for debt service payments.. 2007 payments total $162,3009n the $1,200,000 borrowed from the housing fund and the $800,000 loan from the Community Investment Fund. The proposed budget does not allocate any funds toward eventual repayment of the $1,000,000 advanced from the Community Investment Fund. The repayment of, that $1,000,000 was set up to be a balloon payment after 20 years, subject to the availability of cash reserves. 'Amortization of that advance would require approximately $85,000 per year over the 20 year period. To date no provision has been made to raise rates or to dedicate retained earnings for this purpose. The calculated renewal and replacAnent account is funded at $64,600 for 2007. • Enclosed on pages_ and _ is a copy of the Cascade Bay Renewal and Replacement Schedule. Capital Outlay Included in the preliminary 2007 Budget' an allocation of $44,500 for capital outlay. Enclosed on pages I and are copies of the items proposed to be included in the 2007 budget. All capital is proposed to be financed from current operations as there are no items for which renewal and replacement dollars have been set aside. Revenue/Expenditure Summar Enclosed on page KCE is a copy of a high level summary of revenues, expenditures, and other disbursements from 1999 through the estimated results of the 2007 budget. The net available component of retained eamings/cash at 12-31-05 is $466,681 with $427,037 of that in the renewal and replacement account leaving a balance of $39,644. The 2005 activity and the ending balance reflect the significant cost, of the repairs and renovation to the facility that were undertaken in 2005 at a cost of approximately $379,000 net of the $175,000 settlement. While not specific to the proposed 2007 Cascade Bay budget, the following • information in bullet fashion helps provide perspective to past and future operations of the facility. 2006 Season Recap • Preliminary indications are that attendance did not meet projections so the admissions revenue will be less than projected. • The golf course projections are right on target and we hope to exceed the 10,000 round projection. • Attendance 134,637 (preliminary calculation) o 8 days with 3-4,000 attendance (June/July) o 15 days with 2-3,000 (June/July) o 35 days with 1-2,000 .o 17 days with 500-1,000 (June/August/Sept) o 15 days with < 500 attendance • Season was 90 days long • Only one day was closed all day (July 19). Several other partial days were closed for bad weather. • After 5 p.m. paid admissions were 1,016 less than in 2005 • Regular paid admissions were 2,273 less than in 2005. • Morning activities (water walking, lap swimming, water aerobics) were 733 more than in 2005 • Concessions sales exceeded 2005 but the final numbers have not been • finalized yet. • Mini dolf-2006 • 8,052 rounds of golf were sold from June 27 through August 27 for -total revenue of $24,156. Captain's Course is expected to remain open until October 22 during the evenings and weekends, weather permitting. • Original projections for 2006 anticipated 40,000 rounds (projected revenue. of $30,000) based on the course being open by June 3 when Cascade Bay opened for the year. That represents 24 days of revenue that we've not captured. Were we open on June 3 and maintained the average rounds per day we've seen this year, we would have exceeded our projections at this point. • The comments have been overwhelmingly positive with many comments focused on how the course looks like it's always been there. • There was an expectation that season pass holders would be excited to purchase punch cards to play golf but only a few have taken -advantage of this option. Now that people 'have been using the course we may see this pass holder advantage being used more. Challensres for 2007 • As Cascade Bay enters its 9t' year of operation there is'the stark realization that the attendance has plateaued and there will need to be a very concentrated effort to maintain the interest and attendance in • subsequent years. Although Captain's Course adds a new element, thought needs to be given to creative programmatic elements that will bring people into. the facility. • August is by far the largest challenge for attendance. Many people are on vacation, getting ready for the upcoming school year or just tired of going to the pool. • While there will be a strong focus between September and December to put programmatic pieces in place for Cascade Bay's 2007 season, the Superintendent of Operations and Director of Parks and Recreation are working on a 5 -year master plan for Cascade Bay, Civic Arena and ECC that will begin to address longer range planning. The plans will be shared with the City Council to solicit input and help to frame future growth, changes and budget implications and to serve as a guide for future considerations. • Growing season pass memberships will require more direct marketing to new residents, specific age groups, and educating current residents. The number of non-resident season passes continues to grow while resident passes are declining. A survey of pass holders over the past 3 years may help determine why that is changing. Brainstorming for,2007 • Some of the non-traditional ideas :that are floating about to capture larger audiences for 2007 include: `7d o. Concentrated emphasis on private rentals and special events focused toward local business. • o Hosting entertainment events (music/performances) near golf course/concessions patio. o Themed or special events designed as perks for pass holders that might also be open to the public. Movie in a tube was an example of an event that brought in 1,000 people on an otherwise quiet evening. o Define and begin an "annual' event for the community. q Look at package deals like swim/golf/dinner, etc. o Consider adult only activities or events. o Look into morning golf leagues, challenge events (neighborhoods, schools, ages, etc.), o. Partner with the library for activities and events that can benefit both facilities. o Offer August only season .passes. o Work with day caresNMCA/summer schools/home schools for specialized, classes or admissions for low -peak attendance times. o Look at other programmatic activities that might happen within the gates of Cascade Bay when there is not water in the pool; host an Easter Egg hunt, for example. o Look for other targeted age groups (like Little Mates) that would benefit from exclusive programming. • o Expand swim lessons but focus on areas not currently being met; first time older swimmers (10 -adult) or specialized interest (family lessons) Summary There is a great deal of material presented with this budget proposal to assist the City Council in its consideration of the 2007 budget. The 2007 budget as presented is balanced, continues the implementation of the results of the organizational study, provides for the appropriate level of renewal and replacement funds, includes an allocation for some capital; improvements, and the annual installment for the scheduled debt service. Staff continues to efficiently operate and to aggressively market the use of the facility to increase revenues and is making every effort to operate a successful business venture per City Council direction. The cash position is an indicator of previous success as a business. However, the competition for leisure time dollars. and customer expectations demonstrate the need to remain efficient and to remain a preferred vendor for the services provided through the Cascade Bay activities. This proposed operating budget and the proposed capital improvements assist in meeting that objective. • Casipade Bay Rate Comparison Daily Admission 1999 2000 +.50* 2001 2002 +.25 2003 +.25 2004 2005 2006 2007 proposed I +1.00 > 42" 7.00 7.50 7.50 7.75 8.60 8.00 8.00 8.00 9.00 < 42" 4.50 5.00 5.00 5.75 6.00 6.00 6.00 6.00 7.00 > 62 years 4.50 5.00 5.00 5.75 6.00 6.00 6.00 6.00 7.00 < 18 months free free free Free Free Free Free Free Free After 5 'pm Admission. > 42" 5.00 5.50 5.50 5.75 6.00 6.00 6.00 6.00 7.00 < 42 " 3.50 4.00 4.00 4.25 4.50 4.50 4.50 4.50 5.00 > 62 years 3.50 4.00 4.00 4.25 4.50 4.50 '4.50 4.50 5.00' < 18 months Free free free Free Free Free Free Free Free Resident Season Passes +3.00 +2.00 +2.00 18` member 48.00 51.00 51.00 51.00 53.00 53.00 53.00 53.00 55.00 Add'l member> 42" 38.00 41.00 41.00 41.00 43.00 43.00 43.00 43.00 45.00 Add'l member <42" 25.00 27.00 27.00 27.00 29.00 29.00 29.00 29.00 31.00 Add'l member>62 yrs. 25.00 27.00 27.00 27.00 29.00 29.00 29.00. 29.00 31.00 Add'1 member < 18 mos Free Free Free Free Free Free Free Free Free Resdent:Passes=after 5 pm +3.00 +2.00 +5.00 I" member 40.00 43.00 43.00 43.00 45.00 45.00 45.00 45.00 50.00 Rarely purchased Add'l member > 42" 30.00 33.00 33.00 33.00 35.00 35.00 35.00 35.00 40.00 Add'1 member <42" 20.00 22.00 22.00 22.00 24.00 24.00 . 24.00 24.00 30.00 Add'1 member >62 yrs. 20.00 22.00 1 22.00 22.00 24.00 24.00. 24.00 24.00 30.00 Add'l member < 18 mos Free Free Free Free Free Free. Free Free Free I Non -Resident Season Pass 1$` member n/a n/a 61.00 61.00 63.00 63.00 63.00 63.00 65.00 Add'1 member > 42" n/a n/a 51.00 51..00 53.00 53.00 53.00 53.00 55.00 Add'l member <42" n/a n/a 37.00 37.00 39.00 39.00 39.00 39.00 41.00 Add'1 member >62 yrs. n/a n/a 37.00 37.00 39.00 39.00 39.00 39.00 4.1.00 Add'1 member < 18 mos n/a n/a Free Free Free Free Free Free Free Non -Resident Pass -after 5 pip 1' member n/a n/a 53.00 53.00 55.00 55.00 55.00 55.00 60.00 Rarely purchased Add'1 member > 42" n/a n/a 43.00 43.00 45.00 45.00 45.00 45.00 50.00 Add'1 member <42" n/a n/a 32.00 32.00 34.00 34.00 34.00 34.00 40.00 Add'1 member >62 yrs. n/a n/a 32.00 32.00 34.00 34.00 34.00 34.00 40.00 Add'1 member < 18 mos n/a n/a Free . Free Free Free Free Free Free *to reflect sales tax $2.00 increase over 9 years = $.22 increase/yr or 3% annually • -7a • • • 41'111b'9ty Of BaQ 2007 Proposed Budget Operating Budget Aquatic Facility - Cascade Bay Responsible Manager.: Cherryl Mesko, Superintendent of Operations REVENUE ESTIMATES 4310 Park program revenue . Classes and camps 22,000 4312 Concession sales CB open hours (220,000) 206;000 Ext golf course hours (6,000) 5,000 4314 Merchandise sales . 200 Locks/goggles/cameras (6,000) 5,600 4315 Merchandise sales (non -tax) • ' Clothing 500 4316 Group Sales . Birthdays (10,000) 9,300 Groups (100,000) 93,500 4317 Group Sales (non -tax) 25,000 sponsorships 9,000 4318 Daily Admissions Regular-waterpark (5eo,000) 542,300 After 5 pm-waterpark(63,000) 59,200 Golf (36,000) 33,700 4321 Memberships Resident (129,000) 120,600 Non-resident (53,000) 49,600 After 5 pm-waterpark (4,000) 3,800 4322 Vending 4326 Facility rental Private rental (5500) 5,000 4327 Facility rental (non -tax) 4610 Interest income Total Revenue 2007 Budget Actual 22,000 . 211,000 136,200, 5,600 500 102,800 34,000 200 635,200 174,000 • ' 1,400 663,157 5,000 . 20,000 P 1,211,500... "73 D,000 . 136,200, <,125,800 200 5,000 773,600 .. 663,157 P 1,200 5,000 7,000[1'.! , 8,145 1.175.200 I 1 1.1 City �afi 2007 Of B8 Pro et Operating Budget Proposed Budget Aquatic Facility - Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations PURPOSE & DESCRIPTION The purpose of the Aquatic Facility is to: • • Provide a positive environment for residents and guests of all ages to gather . • Encourage and help build a sense of community through a wide range of recreational and social opportunities • Provide a high level of service accessibility and professionalism to expand revenue option to ensure the viability of this resource to the community The Aquatic Facility is responsible for the following functions: • Provide a wide variety of water -related recreational opportunities for members and non-members • Capture a high level of revenue to offset operational costs, debt repayment and expand the retained earnings capacity to accommodate future growth and expansion • Protect the City's community investment by maintaining the integrity and value of the building and its amenities • Create a welcoming atmosphere and solicit input from users to best determine how to meet existing needs and identify future growth opportunities • On-going analysis of existing operation and research to find ways to expand the recreational opportunities beyond the three-month pool season in order to maximize the capital investment PERFORMANCE INDICATORS Description 2005 Actual 2006 Budget 2007 Proposed Season passes sold 3,940 4,500 4,100 Total attendance 128,696 146,000 134,000 Group admissions 17,381 17,000 19,000 88 + golf Days facility is open 89 88 pre/post season Rounds of golf N/A 8,000 12,000 Private rentals 4 6 8 -W. .7 r� • • • 0 410, agofBalae 2007 Proposed Budget Operating Budget Aquatic Facility —. Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations. HIGHLIGHTS & CHANGES Overview: The 2007 budget reflects only inflationary increases in expenses over the 2006 budget. The budget is up $36,300, or 3.1 %. Hiahlight/Chanae 1: The Administrative Coordinator, currently . a temporary position, is proposed to be added to regular staff. ,With the consolidation of the Civic Arena and Cascade Bay under one manager, there was a need identified to help with the day-to-day operation of both facilities. The administrative position began in late -2005, and as it has evolved, there has been a demonstrated need, for this position to continue. This position is going to be even more vital to the Campus Facilities Manager as the two facilities look at overall staffing and workload and move to a new model to more efficiently use existing staff. This operation will mirror positions at ECC to reach a level of operating consistency and to allow cross - divisional use of staff when needed. Financial Impact: Because it was budgeted as a temporary position in 2006, there is essentially no dollar impact for the 2007 budget. The .67 FTE position will add $35,800 to the Cascade Bay regular personnel budget (.33 FTE, or $17,900, is added to the Civic Arena's regular personnel budget as well) Service Level Impact: This position provides the level of professional support needed to assist the Campus Facilities Manager and allow him to spend his time with higher priority management tasks and long-range planning EXPENDITURE SUMMARY Expenditures by Category Actual Personal Parts & Reserve for s Supplies R&R 2006 7% 6% $ 440,574 $ 518,684 $ 539,700 563,900 Services & Debt Service 67,903 Other 14% Services and Other Charges Charges .241,943 Merchandise Capital 16% Capital Outlay for Resale Outlay 2,072 45,600 6% 4% Merchandise for Resale HIGHLIGHTS & CHANGES Overview: The 2007 budget reflects only inflationary increases in expenses over the 2006 budget. The budget is up $36,300, or 3.1 %. Hiahlight/Chanae 1: The Administrative Coordinator, currently . a temporary position, is proposed to be added to regular staff. ,With the consolidation of the Civic Arena and Cascade Bay under one manager, there was a need identified to help with the day-to-day operation of both facilities. The administrative position began in late -2005, and as it has evolved, there has been a demonstrated need, for this position to continue. This position is going to be even more vital to the Campus Facilities Manager as the two facilities look at overall staffing and workload and move to a new model to more efficiently use existing staff. This operation will mirror positions at ECC to reach a level of operating consistency and to allow cross - divisional use of staff when needed. Financial Impact: Because it was budgeted as a temporary position in 2006, there is essentially no dollar impact for the 2007 budget. The .67 FTE position will add $35,800 to the Cascade Bay regular personnel budget (.33 FTE, or $17,900, is added to the Civic Arena's regular personnel budget as well) Service Level Impact: This position provides the level of professional support needed to assist the Campus Facilities Manager and allow him to spend his time with higher priority management tasks and long-range planning EXPENDITURE SUMMARY `P9 Actual Actual Budget Proposed Expenditure 2004 2005 2006 2007 Personal Services $ 440,574 $ 518,684 $ 539,700 563,900 Parts and Supplies 53,808 67,903 69,500 89,400 Services and Other Charges 198,698 .241,943 182,300 195,700 Capital Outlay 36,686 2,072 45,600 44,500 Merchandise for Resale 88,024 114,700 112,000 91,100 Debt Service 159,015 160,415 161,500 162,300 Reserve for Renewal & Replacement - - 64,600 64,600 Total $ .976,805 $1,105,717 $1,175,200. $1,211,500 `P9 Ct of Eapo 2007 Proposed Budget Operating Budget Aquatic Facility - Cascade Bay • Responsible Manager: Cherryl Mesko, Superintendent of Operations CASCADE BAY POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Aquatic Facilities Manager 1 1 0 0 - Campus Facilities Manager 0 0 0.33 0.33 686 Maintenance Worker (2 @ .5 hrs.) 1 1 1. 1 2,080 Maintenance Worker (1 @ .33 hrs.) 0 0 0.33, 0.33 686 Clerical Technician 0.4 0.4 0.4 0.4 832 Administrative Coordinator 0 0 0.67 0.67. 1,394 TOTAL 2.4 2.4 2.73 2.73 5,678 2007 WORK PLAN Activi Routine 1 Respond to public comments or requests via phone or in person 2 Daily mainenance and cleaning of building and pool 3 Manage the building infrastructure to ensure efficient, safe and clean environment 4 Develop promotional materials for seasonal facility 5 Recruit, hire, train and supervise temporary and part time employees 6 Provide work direction to ensure high level of customer service is maintained 7 Develop long range plans and strategies for expanded service 8 Manage staff scheduling and training to meet the demands of the building Cascade Bay and the Civic Arena share a number of staff. The Civic Arena staff complement is shown below: CIVIC ARENA POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Civic Arena Manager 1 1 0 0 - Campus Facilities Manager 0 0 0.67 0.67 1,394 Building Supervisor 1 1 0 0 - Skating School Coordinator 0.75 1 1 1 2,080 Maintenance Worker (2 @ .5) 1 1 1 1 2,080 Operations/Maintenance Worker 0 0 0.67 0.67 1,394 Clerical Technician 0.2 0.2 0.2 0.2 416 Administrative Coordinator 0 0 0.33 0.33 686 Total 3.95 4.2 3.87 3.87 8,050 • • City Of Ealan 2007 Proposed Budget Operating Budget This page intentionally left blank. '7% I— 94 Of Faun 2007 Proposed Budget Operating Budget p g Aquatic Facility - Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations LINE ITEM DETAIL Acct PERSONAL SERVICES Actual 2004 Actual 2005 Budget 2006 Proposed 2007 6110 SALARIES AND WAGES -REGULAR 74,735 88,495 122,400 $ 130,500 6112 OVERTIME -REGULAR - - 1,000 1,000 6130 SALARIES AND WAGES -TEMPORARY 312,893 367,081 340,000 350,000 6131 OVERTIME -TEMPORARY 13 17 - - 6142 PERA-COORDINATED 4,007 5,159 6,800 8,200 6144 FICA 29,209 33,673 35,500 36,800 6151 HEALTH INSURANCE 9,792 11,862 22,400 24,800 6152 LIFE INSURANCE 162 1.72 33 43 6154 DISABILITY- LONG TERM 202 257 300 - 6155 WORKERS COMPENSATION 9,561 11,968 11,600 12,600 500 TOTAL PERSONAL SERVICES $ 440,574 $ 518,684 $ 539,700 $ 563,900 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 6211 OFFICE PRINTED MATERIAUFORMS 6212 OFFICE SMALL EQUIPMENT 6215 REFERENCE MATERIALS 6220 OPERATING SUPPLIES -GENERAL 6222 MEDICAURESCUE/SAFETY SUPPLIES 6223 BUILDING/CLEANING SUPPLIES 6224 CLOTHING/PERSONAL EQUIPMENT 6230 REPAIR/MAINTENANCE SUPP-GENL 6231 MOBILE EQUIPMENT REPAIR PARTS 6232 SMALL EQUIPMENT REPAIR PARTS 6233 BUILDING REPAIR SUPPLIES 6236 POOL REPAIR SUPPLIES 6240 SMALL TOOLS 6243 HEATING OIL, PROPANE AND OTHER FUELS 6244 CHEMICALS & CHEMICAL PRODUCTS 6250 LANDSCAPE MATERIAL & SUPPLIES 6257 SIGNS & STRIPING MATERIALS 6270 COMPUTER SOFTWARE TOTAL PARTS &SUPPLIES SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES 6311 LEGAL 6312 ENGINEERING 6314 AUDITING 6319 MEDICAL SERVICES --OTHER 6320 INSTRUCTORS 6346 POSTAGE 6347 TELEPHONE SERVICE & LINE CHG 6348 MATRIX SERVICE AND REPAIR 6351 PAGER SERVICE FEES 6353 PERSONAL AUTO/PARKING 6355 CELLULAR TELEPHONE SERVICE 6357 ADVERTISING/PUBLICITY/PROMOTION . 6358 EMPLOYMENT ADVERTISING 6359 LEGAL NOTICE PUBLICATION 6370 GENERAL PRINTING AND'BINDING 6385 INSURANCE 6405 ELECTRICITY $ 271 745 40 7 11,296 457 4;308 4,984 3,054 7 663 349 10,296 285 15,466 $ 510 $ 462 16,355 3,069 5,082 12,091 3,079 256 2,262 1,200 3,218 18,194 500 2,000 100 300 13,000 3,500 4,500 5,000 4,500 1,000 1,000 1,000 500 100 30,000 $ 700 2,000 100 300 15,000 3,500 5,000 15,000 4,000 100 2,000 1,200 5,000 500 1,000 30,000 r � L J 721 - - - 859 2,125 2,000 3,000 - - 500 1,000 $ 53,808 $ 67,903 $ 69,500 $ 89,400 $ 28,491 $ 48,406 $ 5,000 $ 7,500 7,234 32,220 - - 9,202 959 - - 800 600 900 1,400 - - 100 100. - - 500 1,000 827 2,20 4 2,000 2,500, 1,350 2,347 1,500 2,000 - - 500 500 33 43 200 200 - 27 300 300 689 2,098 6,000 8,000 - - 500 500 - 129 - 100 182 1,165 5,000 5,000 30,100 - 22,600 - 23,700 - 24,900 • 30,324 32,706 40,000 35,000 -79 .400'My of Bain 2007 Proposed Budget Operating Budget • Aquatic Facility- Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations LINE ITEM DETAIL (CONVD) Acct PERSONAL SERVICES Actual 2004 Actual 2005 Budget 2006 Proposed 2007 6410 NATURAL GAS SERVICE 47,436 58,188 50,000 55,000 6424 POOL REPAIR/ LABOR 10,384 4,738 5,000 7,000 6426 SMALL EQUIPMENT REPAIR LABOR 845 1,561 1,000 1,500 6427 BUILDING OPERATIONS REPAIR LABOR 1,699 1,269 2,000 1,500 6428 FIELD/OTHER EQUIPMENT REPAIR 480 170 - 200 6475 MISCELLANEOUS - 125 - 200 6476 CONFERENCES AND SCHOOLS 877 2,321 2,600 3,100 6477 LOCAL MEETING EXPENSES 33 70 200 200 6479 DUES AND SUBSCRIPTIONS 315 75 300 500 6480 LICENSES, PERMITS AND TAXES 590 575 1,000 1,500 6483 DISPOSAL OF PROPERTY 3,052 - - 6487 VISA/MC BANK CHARGES 7,537 9,718 8,000 10,000 6535 OTHER CONTRACTUAL SERVICES 9,242 6,631 10,000 10,000 6539 WASTE REMOVAL/SANITATION SERV 1,753 2,150 3,000 3,000 6563 LANDSCAPING 5,223 2,985 7,000 6,000 6569 MAINTENANCE CONTRACTS - 5,863 6,000 7,000 OTHER SERVICES AND CHARGES $ 198,698 $ 241,943 $ 182,300 $ 195,700 CAPITAL OUTLAY 6630 OTHER IMPROVEMENTS 6640 OFFICE FURNISHINGS AND EQUIPMENT • 6670 OTHER EQUIPMENT CAPITAL OUTLAY MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE MERCHANDISE FOR RESALE PRINCIPAL INTEREST TOTAL DEBT SERVICE RESERVE FOR RENEWAL & REPLACEMENT TOTAL AQUATIC FACILITY • $ 10,189 $ 372 $ 34,500 $ 39,500 8,929 1,700 2,500 - 17,568 - 8,600 5,000 $ 36,686 $ 2,072 $ 45,600 $ 44,500 $ 88,024 $ 114,700 $ 112,000. $ 91,100 $ 88,024 $ 114,700 $ 112,000 $ 91,100 $ 75,000 $ 80,000 $ 85,000 $ 90,000 84,015 80,415 76,500 72,300 $ 159,015 $ 160,415 $ 161,500 $ 162,300 -74 64,600 64,600 $ 976,805 $ 1,105,717 $ 1,175,200 $ 1,211,500 3.09% City Of Eapn 2007 Proposed Budget Operating Budget P g • • • i"m G:1Capital Renewal & Replacement\Cascade Bay R&R schedule Cascade Bay R&R schedule • Cascade Bay .Renewal And Replacement Schedule • C, Item Year Purchased Life Cycle Cost Annual Maturity Date Ice Machine 1999 10 $ 3,239 $ 324 2009 Perfect Fry #1 2004 5 4,150 830 2009 #2 2000 5 4,150 830 2005 #3 2001 5 5,000 1,000 2006 Turnstiles #1 1999 20 11,500 575 2019 #2 1999 20 = 2019 ' #3 2002 20 2,222 111 2022 HVAC system admin 1999 20 14,000 700 2019 Sand Play Area . Mermaid Fountain 1999 6 3,600 600 2005 Waterfall Waterplay 1999 6 4,700 783 2005 Kom an Sand Table 1999 6 700 117 2005 Guard Chairs #1 1999 10 900 90 2009 #2 1999 10 900 90 2009 #3 2001 10 1,360 136 2011 #4 2001 10 1,360 136 2011 AlrConditionin conc. 2000 20 20,000 1,000 2020 Roofing 3 buildings) 1999 20 6,000 300. 2019 Shed 2002 20 2,500 125 2022 Funbrellas 0 #1 1999 10 2,257 226 .. 2009 #2 1999 10 2,257 226 2009 #3 1999 10 2,257 226 2009 #4 1999 10 2,257 226 2009 #5 1999 10 2,257 226 2009 #6 1999 10 2,257 226 2009 #7 1999 10 2,257 226 2009 #8 1999 10 2,257 226 2009 #9 1999 10 2,257 226 2009 #10 1999 10 2,257 226 2009 #11 1999 10 2,257, 226 2009- #12(Birthday Party Area 2001 10 2,304 230 2011 Sun Port 2002 10 4,275 428 2012 Walk In Refrigerator 1999 20 6,993 350 2019 Walk in Freezer 1999 20 4,017 201 2019 2 door freezer 1999 12 2,604 217 2011 2 door refrigerator 1999 12 2,029 169 2011 Refrigerator Dis lay 1999 12 3,809 317 2011 Sandwich/nacho display 1999 7 1,021 146 2006 Mobile Heated Cabinet 1999 10 3,307 331 2009 Undercounter heated cabinet 1999 .10 2,498 250 2009 Cash Registers 5 - #1 1999 5 2004 #2 1999" 5 - 2004 #3 1999 5 - 2004 #4 1999 5 - 2004 Dynarntlon Monitor air tester 1999 10 1,760 176 2009 HVAC Equipment. 1999 20 4,000 200 2019 Gas Hot Water Heater 1999 20 4,000 200 2019 Video Security System 2002 10 9,625 963 2012 Suitmates 2 1999 5 2,500 500 2004 PA System 1999 10 5,000, 500 2009 Water Flume/Wood $ Steel 1999 1 10 1 73,8481 7,385 2009 2 PA 9/8/2006 G:\Capital Renewal & Replacement\Cascade Bay R&R schedule Cascade Bay R&R schedule Cascade Bay Renewal And Replacement Schedule Item Year Purchased Life Cycle Cost Annual Maturity Date Water Flume/Fiberglass 1999 20 145,000 7,250 2019 Water Flume/Install 1999 20 80,000 4,000 2019 Ship Slide 1999 15 20,800 1,387 2014 Starburst 1999 15 20,500 1,367 2014 Tumblebuckets 1999 15 .8,000 533 2014 Deck Chairs Econo 50 $66.00 1999 10 3,300 330 2009 Lounge 200 $156.75 1999 10 31,350 3,135 2009 Econo 40 $66.00 2001 10 2,640 264 2011 Lounge 10 $156.75 2001 10 1,568 157 2011 Econo 50 $66.00 2002 10 3,300 330 2012 Lounge 40 $160.00 2004 10 6,400 640 2014 Concession Patio Furniture Ladderback Chair 150 $99.23 1999 15 14,885 992 2014 31" Cafe Table (28),$153.08 1999 15 4,286 286 2014 31 "Bar height table (12)$163.79 1999 15 1,966 131 2014 46"45" oval dining table (2)$553.08, 1999 15 1,106 74 2014 Turbines #1 1999 20 13,333 667 2019 #2 1999 20 1.3,333 667 2019 #3 1999 20 13,333 667 2019 #4 1999 20 13,333 667 2019 #5 1999 20 13,333 667 2019 #6 1999 20 13,333 667 2019 Boilers #1 1999 20 17,500 875 2019 #2 1999 20 17,500 875 2019 #3 1999 20 17,500 875 2019 #4 1999 20 17,500 875 2019 Pumps #1 1999 20 3,950 198 2019 #2 1999 20 3,950 198 2019 #3 1999 20 3,950 198 2019 #4 .1999 20 3,950 198 2019 Filters #1 1999 - 20 25,000 1,250 2019 #2 1999 20 25,000 1,250 2019 Pulsar Chemical Equipment 2002 7 8,000 1,168 2009 Room Heaters 1999 20 3,800 190 2019 Stranco Controllers #1 1999 15 3,000 200 2014 #2 1999 15 3,000 200 2014 Irrigation Control System 1999 15 20,000 1,333 2014 LMI Pum s #1 1999 5 1,200 240 2004 #2 1999 5 1,200 240 2004 #3 1999 5 1,200 240 2004 #4 1999 5 1,200 240 2004 #5 1999 5 1,200 240 2004 #6 1999 .5 1,200 240 2004 Flooring 2002 20 20,000 1,000 2022 Phone System 2001 7 .21,000 3,000 2008 Walkle Talkies 2004 5 6,000 1,200 2009 Walk Behind Lawn Mower 2004 8 3,000 375 2012 Total I $ 900,597 $ 64,563 9/8/2006 0 • CITY OF EAGAN JUSTIFICATION OF CAPITAL OUTLAYS REQUESTS Department Cascade Bay Dept. No. 222 2. Give Description and Quantity of Item Requested. Indicate Date Desired. Upgrade front entrance to capture data and expedite guests. May 1, 2007 Account No. 6630 I Describe the -necessity for.and/or benefits or savings expected from this item • Tracking daily and season pass guests is currently handled through a turnstile and is dependent upon seasonal staff to ensure that people are entering and exiting in the right location, that the counter is reset at the appropriate times and that the information is logged on a. daily basis. The POS system serves as an efficient cross-check for daily admissions but can be labor intensive. • The photo id cards set up for season passes have always had the capability to scan visits to the park; much like the fitness membership scanning system at ECC. The option has never been implemented due to the inaccessibility of scanning equipment needed to connect to the network. The ability to allow for this level of interconnectivity will require significant changes to the front entrance. • Providing for this level of tracking will help in recovering data and trends and can help to monitor things as simple as season pass use and peak/low attendance times for future marketing. This will also provide a higher level of cross referencing options and is planned to provide a more efficient use of space to minimize staff redundancy and get guests into the facility as quickly as possible. 4. If the item requires ian increase in personal services for the activity, state the new job title(s) contingent upon the item. 5. Indicate any expenses necessary to place this item in operation and whether these expenses are included in your budget request. Will require a coordinated effort with IT to determine viable options that might be considered for implementation. 6. List any item which will be replaced by this purchase. State recommendations for disposition of this item. For example, trade-in, salvage, discard, etc. ESTIMATED COSTS Quantity Unit Cost Total Cost Trade -In Net Total Cost 1 $39,500 $39,500 $ $39,500 WZM CITY OF EAGAN JUSTIFICATION OF CAPITAL OUTLAYS REQUESTS Department Cascade Bay Dept. No. 222 2. Give Description and Quantity of Item Requested. Indicate Date Desired. Security Cameras and Web cameras Spring 2007. Account No. 6670 3. Describe the necessity for and/or benefits or savings expected from this item • The security cameras provide a level of operational security and accountability. There is an increasing need to more broadly monitor the security of the site by installing additional cameras in the park. This has provided a higher degree of comfort given the number of patrons in the park and the amount of money that passes through on a daily basis. • The addition of a second web camera will provide more information to the public, particularly on busy days, when they call to inquire if the park is at capacity. The web site is quickly becoming the first stop for information and the ability to view the park in real time provides a higher level of service and response to potential visitors. 4. If the item requires an increase in personal services for the activity, state the new job title(s) contingent upon the item. 5. Indicate any expenses necessary to place this item in operation and whether these expenses are included in your budget request. 6. List any item which will be replaced by this purchase. State recommendations for disposition of this item. For example, trade-in, salvage, discard, etc. RNTYMATF.n rn.14TS Quantity Unit Cost Total Cost Trade -In Net Total Cost 2 $2500 $5,000 $ $5,000 • 8y 6 -Sep -O6 Aquatic Facility Enterprise Fund REVENUES, EXPENSES AND OTHER DISBURSEMENTS Non -Operating Disbursements Transfer Out 73,224 Other 26,779 9,869 Debt Service Payments 139,072 164,044 158,370 160,504 162,341 158,882 160,202 161,500 162,300 Total Exp & Non-Oper Disbur $ 992,885 $ 1,069,113 $ 1,097,446 $ 1,007,395 $ 1,031,756 $ 1,038,217 $ 1,468,369 $ 1,175,200 $ 1,211,500 Total Revenues Minus Total Disburse $ (4,476). $ 79,669 $ 139,387 $ -136,578 $ 196,736 $ (136,370) $ (396,058) $ $ - Reconciliation to Financial Statement •:sus::#• �• Cumulative Total Revenues -Total Disburse :_;$F.:;:;:::::+;,.:.;:::�?i•:..:::::•:.�:. Add R & R Payment 50,000 50,000 50,000 64,000 67,000 64,600 64,600 Add Principal Payment 85,000 65,000 65,000 70,000 75,000 75,000 80,000 Approx Cash $ 466,681 Subtract Depreciation (307,859) (313,331) (319,970) (323,996) (343,392) (279,011) (281,075) R & R Balance 427,037 Net Income (Loss) Per Statement $ (177,335) $ (118,662) $ (65,583) $ (53,418)$ (4,656) $ (275,781) $ (532,533) Net $ 39,644 1999 2000 2001 - 2002 2003 2004 2006 2006 2007 Revenues Actual Actual Actual Actual Actual Actual Actual Budget Budget Daily Admissions/SeasonPass $ 725,425 $ 774,108 $ 811,986 $ 724,713 $ 812,550 $ 558,307 $ 663,158 $ 785,000 $ 809,200 Group Sales 73,838 106,989. 124,510 145,903 127,463 131,013 127,063 140,000 136,800 Concessions 174,400 219,185 240,212 -208,734 236,301 168,957 222,328 220,000 211,000 Classes/Camps 3,062 10,597 9,460 22,245 19,841 20,000 22,000 Merchandise 2,159 2,410 15,020 2,854 4,520 3,549 14,403 4,000 6,100 Private Rental 8,456 4,473 7,345 5,000 5,000 Coca-Cola Marketing/Vending 5,417 8,031 5,417 5,417 5,416 909. 3,172 1,200 1,400 Total Operating Revenues $ 981,239 $ 1,110,723 $ 1,200,207 $ 1,098,218 $ 1,204,166 $. 889,453 $ 1,057,310 $ 1,175,200 $ 1,191,500 Non -Operating Revenues Other 8,342 (1,091) (3,357) 1,113 Interest 7,170 29,717 36,626 39,603 25,417 15,751 13,687 20,000 Transfers In 6,152 Total Oper & Non-Oper Revenues $ 988,409 $ 1,148,782 $ 1,236,833 $ 1,143,973 $ 1,228,492 $ 901,847 $ 1,072,310 $ 1,175,200 $ 1,211,500 Expenses Personal Services $ 515,059 $ 517,474 $ 483,670 $ 454,628 $ 484,185 $ 440,573 $ 518,685 $ 539,700 $ 563,900 Parts & Supplies 81,246 79,273 65,442 .52,032 64,492 53,808 366,166 69,500. 89,400 Cost of Merchandise Sales 109,540 97,772 135,243 104,366 120,884 _ 88,024 114,700 112,000 91,100 �-y� Services & Other Charges 97,968 160,550 177,942 88,772 132,854 232,330 244,016 182,300 195,700 vv Capital Outlay 45,600 44,500 (1 �.J Total Operating Expenses $ 803,813 $ 855,069 $ 862,297 $ 699,798 $ 802,415 $ 814,735 $ 1,243,567 $ 949,100 $ 984,600 Reserve for Renewal/Replacement 50,000 50,000 50,000 64,000 67,000 64,600 64,600 64,600 64,600 Total City Operating Expenses •- $ 853,813 $ 905,069 $ 912,297 $ 763,798 $ 869,415 $ 879,335 $ 1,308,167 $ 1,013,700 $ 1,049200 Non -Operating Disbursements Transfer Out 73,224 Other 26,779 9,869 Debt Service Payments 139,072 164,044 158,370 160,504 162,341 158,882 160,202 161,500 162,300 Total Exp & Non-Oper Disbur $ 992,885 $ 1,069,113 $ 1,097,446 $ 1,007,395 $ 1,031,756 $ 1,038,217 $ 1,468,369 $ 1,175,200 $ 1,211,500 Total Revenues Minus Total Disburse $ (4,476). $ 79,669 $ 139,387 $ -136,578 $ 196,736 $ (136,370) $ (396,058) $ $ - Reconciliation to Financial Statement •:sus::#• �• Cumulative Total Revenues -Total Disburse :_;$F.:;:;:::::+;,.:.;:::�?i•:..:::::•:.�:. Add R & R Payment 50,000 50,000 50,000 64,000 67,000 64,600 64,600 Add Principal Payment 85,000 65,000 65,000 70,000 75,000 75,000 80,000 Approx Cash $ 466,681 Subtract Depreciation (307,859) (313,331) (319,970) (323,996) (343,392) (279,011) (281,075) R & R Balance 427,037 Net Income (Loss) Per Statement $ (177,335) $ (118,662) $ (65,583) $ (53,418)$ (4,656) $ (275,781) $ (532,533) Net $ 39,644 • 0 • Agenda Information Memo September 14, 2006, Eagan City Council VII. 2007 EAGAN COMMUNITY CENTER BUDGET ACTION TO BE CONSIDERED: • To provide direction to staff on the 2006 Community Center operating .budget, and to direct that it be placed on a future City Council Meeting Consent Agenda for formal ratification. • To approve or direct to the September 25, 2006 regular City Council. Meeting action to authorize implementation of the proposed organizational changes during 2006. Backaround The following general parameters were.among those listed prior to the adoption of the original 2003/2004 Operating Plan and continue to provide the framework in which the Community Center operates and is the basis from which budgets continue to be prepared. 1. The facility is looked at as a whole. Although, certain areas/programs/operations are relatively independent from an operational standpoint, there is a great deal of interaction among the various components of the building. Items like days and hours of operation,. memberships,, programming, and rental opportunities and rates have impacts across the'entire facility. The challenge of budgeting details while looking at the big picture has constantly been present in preparing and reviewing this material. 2. The facility, is being viewed as a community center as opposed to a private sector health club. Community centers provide some programs and community/citizen opportunities that in and of themselves are 'not If t ' i f t t' Th' ' ' rA tl AM t e - sus am ng rom a cos [Jul OPE; ive. is is a signs scan y i ere" Model than you see in the private sector where only activities that. produce revenue or contribute directly to revenues are offered and a clear bottom line financial analysis drives all decisions. 3. The success of the project will ultimately be determined over the long- term. There is a delicate balance between a short-term successful opening that impresses participants and. makes them want to return and to renew memberships and long-term community acceptance of and support for the facility. 4. The importance of successfully marketing the facility, and developing an acceptable market niche to maximize revenues while blending in • the community center philosophy cannot be overstated. • 5. Although the facility is being operated as an enterprise fund from an accounting standpoint, there is a dependence on other City operating funds incorporated into this plan. Modifications to the original parameters include the following: 1. A renewal or replacement account is being funded beginning in 2005. As part of the construction close out financing package approved by the City Council, the Renewal and Replacement account opened with a starting balance of $315,724.. This balance resulted from the City. Council direction to reduce original spending on furniture, fixtures and equipment and other construction costs. 2. Operational experience has resulted in necessary modifications to policies and procedures which are reflected in the budget; continued modifications are incorporated into the proposed, 2007 budget. 3. Start up issues have been mostly resolved and the Community Center has become established in its market niche. Revenues After a significant increase in user revenues projected for 2006 resulting from a rate increase, the 2007 budget relies on various activities to generate more • utilization without any membership rate changes. The antenna lease revenue transfer used to balance the operating budget is increased from $141,000 in 2006 to $225,800 in the proposed 2007 budget. Enclosed on page is a copy of the detailed revenue estimates for 2007 as compared to the budg t for 2006 and actuals for 2004 and 2005. The revenue estimates, in general, are fairly aggressive, are based on more operational experience than in previous years, and rely on continued extensive and successful marketing of the facility in combination with high customer acceptance and satisfaction. Expenditures Excluding depreciation and debt service from the total, for both years, the 2007 Eagan Community Center budget is proposed at $1,588,100, an overall increase of $126,700, or 8.7% from the 2006 budget of $1,461,400. ,Factors contributing to that above average increase are included in the department budget narrative to follow. Since debt service is paid through a tax levy resulting from the successful referendum, it is not included in this operating budget. The bond payment including both principal and interest to retire the outstanding debt for the building is $1,133,200 for 2007 compared to $1,138,000 for 2006. Depreciation is also not included in the operating budget as the renewal & • • replacement account is used in lieu of depreciation and is fully funded in the 2007 operating budget. Included inthe proposed budget as it is presented is an expansion of the concession operation to include a coffee bar. The concept has previously been reviewed by the Community Center Operations Committee. The information as presented will allow the City Council to determine the financial impact of the public policy decision to include or not include the coffee bar. Coffee Bar Operation: • The potential consideration of a coffee and beverage service operation proposed by ETAB for operation within the Eagan Community Center was brought to the City Council and has been studied since the spring 2005. • The culmination of the study resulted in the analysis of three potential operations; o 1) fully incorporated into the existing concessions operation, o 2) a mobile cart operation and o 3) fully incorporated into the Oasis. • The most cost effective consideration was to incorporate it into the existing concessions operation but not. operated as part of the Oasis teen center. • The combined concessions operation is incorporated into the 2007 budget • with the following considerations: o Start-up capital costs estimated at $27,000. o Additional merchandise for sale -at $9,800 o Additional staffing at $14,000 o Additional revenue projected at $32,000 • The Council may wish to approach this project -on a trial basis in which the infrastructure components are put into place (electrical/plumbing), equipment leasing options are investigated and compared to purchasing options and the public is made aware of this trial venture for a designated period of time; 12-18 months, for example. • The trial basis would allow the Council to evaluate the operation during the 2008 budget cycle to determine if it has been a worthwhile experiment and whether or not it should be continued. Personnel , The proposed complement of regular personnel for 2007 reflects organizational changes recommended by staff, resulting from a review upon the resignation of ,the Community Center Manager. That particular position was essential as final construction of the building was completed and the facility was opened and operated in the early years. The recent review has determined that it would be beneficial to the operations to eliminate the Community Center position and to replace it with two (2) Manager on Duty positions that would provide more "on • the floor" hours in which better customer service could 'be offered to the users of the facility. The following points provide additional background as a basis for the recommended organizational changes: . • The original organization focused on the skills and staff needed to open a major facility. • After 3 full years of operation we have a better idea of the amount of traffic, the daily needs of the building and the staffing to best meet those needs. • Having the community center manager vacant from May through August allowed for the review and analysis of how best to meet the growing demands of the building. • It is proposed that resources would.be best allocated to providing front line service to visitors. The existing full-time management staff has absorbed more of the day-to-day operation that was originally part of the community center manager's responsibility. • To focus on providing a higher level of customer service at the front counter and in the building the following changes are proposed: o Eliminate the Community Center Manager Position ($104,517) o Adding two FTEs; Manager on Duty positions that will be stationed at the. front counter from 5:30 a.m. to 11:00 p.m. to better serve the needs of the public using the building as well as to provide more crossover with the overnight custodial staff. ($92,642 total) o Continue the day-to-day workload of existing full-time staff and assess, over time, any future job related changes to existing staff. o Assess and change the work hours of the full-time staff to better • meet the needs of a building open 117+ hours per week. o Continue the long range planning and oversight by the Superintendent of Operations. • This staffing change dovetails into the overall Parks & Recreation organizational changes identified by Virchow .Kraus, which have been implemented over the last two years. Enclosed on page is a copy of the proposed organizational structure. Capital Outlay The proposed 2007 budget includes an allocation of $80,200 for capital outlay to purchase the following: 1. $4,400 — New equipment for the fitness center. 2. $27,000 — This allocation would be used to add room darkening shades to the Oaks ($20,000) and Gym ($7,000). The high degree of natural light, while a great amenity, causes problems with day time presentations in the Oaks and with late day gym activities. 3. $4,800 — Various office furnishings and equipment used in the normal course of business. 4. $2,000 — Kitchen Upgrades, Phase 1 of a three phase upgrade to the kitchen totaling $6,000. 5. $15,000 - Three drop down screens for the Oaks, Phase 1 of an'overall AV and related equipment improvement totaling $75,000. 6. $27,000 - Estimated capital start up costs related to the potential coffee bar. Additional detail is presented, above in the expenditure section of the memo. This capital outlay is proposed to be funded through operations since the fitness equipment is new and the office equipment it is not included on the renewal and replacement account. In addition the following items totaling $19,000 -are proposed to be purchased from the Renewal & Replacement account and are therefore not included in. the 2007 proposed operational budget: 1 $4,000 -- Atrium VCT Vinyl Floor Replacement 2. $15,000 -- Replacement Carpet — Oaks Prefunction Space Enclosed on -pages through 10 is a copy of the proposed line item 2007 budget. Enclosed on page, is a copy of the Capital Renewal and Replacement schedule for the Community Center. Marketinss • The fourth item listed above under the general parameters around which all budgets and operating plans have been developed and approved states, "The. importance of successfully marketing the, facility and developing an acceptable market niche to maximize revenues while blending in the community center philosophy cannot be overstated." All City staff and especially those working at the Community Center are committed to this message and.have been working diligently from day1 to implement 'a comprehensive and well thought out marketing. approach supported by specific objectives and expected outcomes. Enclosed on pages through is a copy of a summary of marketing activities that We been. undertaken thus far in 2006 and an explanation of the marketing/coordination with the Eagan Convention and ; Visitors Bureau. The success of this approach and the overall long-term progress,that is being made is demonstrated in the membership numbers included in the revenue section of this memo. Conclusion The Community Center clearly accomplished a successful beginning and has established a niche in the Community. While many challenges have been, addressed, many remain and will be aggressively met into the future: This proposed budget incorporates previous City Council direction and is overall a "stay the course" budget with minor modifications, primarily related to staffing, and customer service. It also allows for continued flexibility as the City goes • forward. �D Potential c anges for consideration Maintenance Engineer F.T. Custodial B.A. general oversight Superintendent of Operations Fitness Coordinator P.T. MOD Fitness Attendants Fitness Instructors Personal Trainers Rental Coordinator P.T. MODS F.T. MOD (new position) • Cascade Bay/Civic Arena Facility Operations Coordinator P.T. Guest Services P.T. Concessions P.T. Building Attendants (BA) F.T. MOD (new position) Reviewing the ECC operation from May through September of 2006 revealed that after being open a full three years there were some changes that could be made to better meet the needs of a fully operational building versus the structure in place for a newly opened building. Also in order to meet the growing demands in the building it was felt that new staffing would be best served at the front-line customer service level. To that end the follow re -organization is proposed: • Eliminate the ECC Manager position • Move the ECC organizational/policy/budget issues to the Superintendent of Operations • Spread the day-to-day operations to the various managers and establish the Building Operations Manager as the staff point person. • . Hire two full time MOD (Manager on Duty) positions that will have a front counter presence from 5:30 a.m. to 11:00 p.m. to provide the consistent full time coverage necessary for a building open at_least 117 hours/week. • Re -distribute other full-time manager positions to provide a broader coverage of full-time staff in the building. 0 City Ealao of 2007 Adopted Budget Operating Budget • Community Center Responsible Manager: Juli Johnson, Director of Parks & Recreation REVENUE SUMMARY . 2004 2005 2006 2007 . Actual Actual Buda Estimate 4304 Personal trainers 4,282 30,257 37,500 47,400 4305 Equipment rental 5,602 7,080 3,000 15,000 4310 Park program revenue 74,483 22,216 15,400 15,500 4312 Concessions sales 28,637 38,994 33,900 73,000 4314 Merchandise- sales 2,910 2,502 3,700 4,000 4316 Group sales 69,413 63,202 98,800 78,600 4318 Daily admissions 67,450 70,064 78000 73,000 4321 Memberships 352,657 501,259 706,600 688,500 4323 Vending 6,148 5,675 6,000 7,500 4324 Room rentals 131,269, 188,473, 249,900 260,000 4326 Facility rentals 6,221 1,221 1,500 4,500 4328 Contract revenue 47,139 44,112 57,000 85,000 4621 ECVB rent 7,333 3,621 9,000 10,300 4610 interest income 22,292 37,777 20,000 - 825,836 1,016,453 1,320,400 1,362,300 Transfer in -antenna lease revenue 190,856 300,220 141,000 225,800 • Total revenues 1,016,692 1,316,673 1;461.,400 - . 1,588,100 0 City Of BaQa 2007 Ado et Operating Budget Adopted Budget Community Center Responsible Manager: Juli Johnson, Director of Parks & Recreation PURPOSE & DESCRIPTION The purpose of the Community Center is to: • Provide a positive environment for residents and guests of all ages to gather • Encourage and help build a sense of community through a wide range of recreational and social opportunities • Promote health and wellness in the community • Maintain a high level of. service, accessibility and professionalism to expand revenue options to ensure the viability of this resource to the community The Community Center is responsible for the following functions: • Facilitate a wide variety of programs and classes for members and non-members • Market and operate a wide range of meeting spaces and rental opportunities for the community • Capture a high level of revenues to best offset the operational costs of the building • Protect the City's community investment by maintaining the integrity and value of the building and its amenities • Operate and maintain a quality fitness center and wellness programs • Provide space, programming and opportunities for all ages • Create a welcoming atmosphere and solicit input from users to best determine how to meet existing needs and identify future growth opportunities PERFORMANCE INDICATORS 03 .7 C7 • 2007 Description 2005 Actual 2006 Budget Proposed Groups in the Blast 83 85 90 Birthday parties 473 490 500 Meetings 660 700 750 Open gym program participants 4,914 5,000 5,100 Group fitness attendance (included in membership) 11,866 12,000 12,300 Memberships - year round 1,455 1,600 1,750 Personal Training 884 900 1,000 Weddings 71 80 85 Average attendance in building per day N/A 1,000 1,100 03 .7 C7 • City -Of Eaian 2007 Adopted Budget Operating Budget P g • Community Center Responsible Manager: Juli Johnson, Director of Parks & Recreation HIGHLIGHTS & CHANGES Overview: The proposed 2007 Eagan Community Center (ECC) budget is up $126,700, or 8.7%, over 2006. The ECC continues to expand the number of users that find their way to this wonderful City amenity. Tracking the number of people in the first half of 2006 indicates that on average there are 1,000 people in the building each day. The budget for 2007 reflects more growing pains and is designed to find more efficient ways to staff the building to provide the levet of service that the public' has demanded. It also reflects a clearer understanding of what the public is looking for and how they want to use this building. The focus for 2007 will be to right -size the overall staffing based on peak demand and develop a mechanism to crossover staff between the three specialty facilities. Analysis of use .patterns and service expectations will drive staff re -structuring options. The proposed budget reflects the Council's direction to formalize budget implications for providing a coffee bar element within the Community Center. The budget includes the capital necessary for this operation along with necessary staff and merchandise/supplies in addition to the standard concessions operation. •The increase to the personnel portion of the budget is 5.2%. This is primarily due to the addition of 2 full-time Manager on Duty positions, the elimination of the Community Center Manager position, and the increased seasonal staffing required to operate the coffee bar. Other operating expenses are increased by 9% over 2006, primarily due to underestimating gas and electrical costs and projected capital improvements'to the building. The capital expenditures are generally offset by revenue projections or are covered under renewal and replacement. The budget also corrects an overestimation of revenue in some areas. Hiahliaht/Chanae 1: With the vacancy of the Community Center Manager position, a reorganization is proposed. The Community Center Manager position is proposed to be eliminated and two full-time Manager on Duty (MOD) positions for the front counter would essentially replace the eliminated position. The MOD model, along with part-time position descriptions and pay will be mirrored at all special facilities to reach a level of operating consistency. Financial Impact: Net impact of the reorganization is a small savings of about $5,000. .Elimination of the Community Center Manager reduces the budget by $104,500. The two MOD positions represent an increase of $92,600 ($46,300 each) including benefits., Potential classification changes for existing positions are estimated at a $12,300 increase. Part-time staff will decrease $6,000 as part of the reorganization. Service Level Impact: This will provide the high level of consistent front counter staff needed for a facility that is open 117 hours per week. It will also provide a crossover with the evening maintenance staff for a more coordinated operation Hiahliaht/Chanae 2: Coffee Bar Addition Financial Impact: Personnel costs associated with the first year's operation are projected at $14,000 and concession merchandise (in addition to the existing operation) is projected at $9,800. Projected revenue is $35,000 and maintains the cost of goods criteria established for all concessions operations. The capital investment to put the coffee bar in place within the existing concessions operation is estimated at $27,000. Another consideration would be to look at leasing options for equipment to provide better flexibility in testing this operation. With leasing, however, there would be costs associated with retrofitting the existing space to • accommodate appropriate equipment qj Expenditures by Category Parts & Reserve for Supplies R&R 5% 8°/, Services & Debt Service Other 0% Merchandise Capital Charges for Resale Outlay . 20% 1% 3% HIGHLIGHTS & CHANGES Overview: The proposed 2007 Eagan Community Center (ECC) budget is up $126,700, or 8.7%, over 2006. The ECC continues to expand the number of users that find their way to this wonderful City amenity. Tracking the number of people in the first half of 2006 indicates that on average there are 1,000 people in the building each day. The budget for 2007 reflects more growing pains and is designed to find more efficient ways to staff the building to provide the levet of service that the public' has demanded. It also reflects a clearer understanding of what the public is looking for and how they want to use this building. The focus for 2007 will be to right -size the overall staffing based on peak demand and develop a mechanism to crossover staff between the three specialty facilities. Analysis of use .patterns and service expectations will drive staff re -structuring options. The proposed budget reflects the Council's direction to formalize budget implications for providing a coffee bar element within the Community Center. The budget includes the capital necessary for this operation along with necessary staff and merchandise/supplies in addition to the standard concessions operation. •The increase to the personnel portion of the budget is 5.2%. This is primarily due to the addition of 2 full-time Manager on Duty positions, the elimination of the Community Center Manager position, and the increased seasonal staffing required to operate the coffee bar. Other operating expenses are increased by 9% over 2006, primarily due to underestimating gas and electrical costs and projected capital improvements'to the building. The capital expenditures are generally offset by revenue projections or are covered under renewal and replacement. The budget also corrects an overestimation of revenue in some areas. Hiahliaht/Chanae 1: With the vacancy of the Community Center Manager position, a reorganization is proposed. The Community Center Manager position is proposed to be eliminated and two full-time Manager on Duty (MOD) positions for the front counter would essentially replace the eliminated position. The MOD model, along with part-time position descriptions and pay will be mirrored at all special facilities to reach a level of operating consistency. Financial Impact: Net impact of the reorganization is a small savings of about $5,000. .Elimination of the Community Center Manager reduces the budget by $104,500. The two MOD positions represent an increase of $92,600 ($46,300 each) including benefits., Potential classification changes for existing positions are estimated at a $12,300 increase. Part-time staff will decrease $6,000 as part of the reorganization. Service Level Impact: This will provide the high level of consistent front counter staff needed for a facility that is open 117 hours per week. It will also provide a crossover with the evening maintenance staff for a more coordinated operation Hiahliaht/Chanae 2: Coffee Bar Addition Financial Impact: Personnel costs associated with the first year's operation are projected at $14,000 and concession merchandise (in addition to the existing operation) is projected at $9,800. Projected revenue is $35,000 and maintains the cost of goods criteria established for all concessions operations. The capital investment to put the coffee bar in place within the existing concessions operation is estimated at $27,000. Another consideration would be to look at leasing options for equipment to provide better flexibility in testing this operation. With leasing, however, there would be costs associated with retrofitting the existing space to • accommodate appropriate equipment qj City Of Eapa 2007 Adopted Budget Operating Budget Community Center • Responsible Manager: Juli Johnson, Director of Parks & Recreation Hiahliaht/Chanae 2 (cont'd): Service Level Impact: This would provide the option for higher quality coffee and beverages to be served from the existing concessions operation Hiahliaht/Chanae 3: The budget increase in electrical and natural gas charges is 64% and 29% respectively. The budget projections for 2006 were based on 2004 actual costs (the facility's first full year of operation) and the first quarter of 2005, which did not reflect the.busy and warm summer wedding events requiring a higher demand for air conditioning compared to the 2004 summer. With line item cuts to .Other Services and Charges the overall increase in this area is 13% (to offset the combined 46% increase in electric and gas.) Financial Impact: $65,000 increase for the 2007 budget year. This increase will position the budget to better reflect actual costs. The increasing cost of natural gas will continue to provide a challenge in estimating costs Service Level Impact: As the activity grows in this building the expectation for a comfortable and efficient building continues to expand Hiahliaht/Chanae 5: Computer software for room reservations that can be accommodated on-line. The public has expressed a strong interest in having instant access to room availability Financial Impact: $7,000 for 2007 and maintenance thereafter Service Level Impact: This service will provide a more prompt response to users who want to simply see what options they might have for room availability. This will certainly respond to the many questions and concerns people have raised about why they can't get information more immediately Hiahliaht/Chanae 6: The addition of room -darkening shades in the Oaks banquet rooms and west windows in the gym Financial Impact: $20,000 for the Oaks and $7,000 for the gym • Service Level Impact: The expanded reserved use of the Oaks meeting rooms during the day has created some challenges for presentations because of the high degree of natural light. This would provide expanded day rental options in these spaces. The gym shades would offer some relief to late day sun affecting gym use. It is expected that increased rental revenue over the next several years will offset these expenditures Hiahliaht/Chanae 7: The addition of three drop-down screens in the Oaks meeting rooms . Financial Impact: $15,000 for 3 large screens that can be hidden in the ceiling to not impact the visual beauty of the space when they are not in use Service Level Impact: There is a growing demand for audio/visual equipment'in the building. Current renters are hiring AV specialists to bring in much of the equipment that might be provided by the ECC. This would certainly meet the growing need. and provide an expanded revenue stream. It is projected that the costs can be recovered within 5 years. This is proposed to be the highest priority of audio/visual enhancements that will be proposed to be added to the banquet/meeting rooms in the next 3-5 years Hiahliaht/Chanae 8: R&R projects are reviewed each year to make sure they are accurate and appropriately scheduled. There were several items that were scheduled for 2007 that have been pushed to later years because they do not need to be replaced at this time. The two remaining items include the been, of the carpet in the pre -function area as well as the vinyl tile in the lobby area near the fitness center. These items are not shown as part of the capital outlay but are identified on the detail sheets Financial Impact: The projected cost to replace both items is $19,000. They will then be added back onto the R&R schedule for future replacement in 5 years Service Level Impact: These improvements will maintain the visual and functional beauty of the building • City of Bajaa 2007 Adopted Budget Operating Budget P g • Community Center Responsible Manager: Juli Johnson; Director of Parks & Recreation EXPENDITURE SUMMARY • • Actual Actual Budget Proposed Expenditure 2004. 2005 2006 2007 Personal Services $ 721,483 $ 813,998 $ 905,000 952,200 'Parts and Supplies 48,616 56,983 82,100 75,900 Services and Other Charges 194,903 282,346. 287,200 324,500 Capital Outlay 31 ',442 11,895 34,500 80,200 Merchandise for Resale 20,248 30,651 31,000 30,800 Reserve for Renewal & Replacement - 120,800 121,600 124,500 Total $1,016,692 $1,316,673 $1,461,400 $1,588,100 • • of Rap • et Operating Budget � 200�Ado pted Budget Community Center Responsible Manager: Juli Johnson, Director of Parks & Recreation POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Community Center Manager 1 1 1 0 - Maintenance Engineer 1 1 1 1 2,080, Fitness Coordinator 1 1 1 1 2,080 Rental Room Coordinator 1 1 1 1 2,080 Facility Operations Coordinator 1 1 1 1 2,080 Lead Custodian/Maintenance 1 1 1 1 2,080 Custodial 2 3 3 3 6,240 MOD .0 0 0 2 4,160 Total 8 9 9 10 20,800 2007 WORK PLAN Activi Routine 1 Respond to public comments or requests via.phone or in person 2 Provide support to the day-to-day fitness center 3 Daily maintenance and cleaning of building 4 Provide support to the day-to-day concessions operation 5 Register participants in recreation programs, memberships or daily admissions 6 Set up and change room configurations to accommodate multiple events • 7 Develop promotional materials for specialized uses: Blast/Rentals/Fitness 8 Manage staff scheduling and training to meet the demands of the building 9 Recruit, hire,'train and supervise temporary and part-time employees 10 Provide work direction to ensure high level of customer service is maintained 11 Manage the building infrastructure to ensure efficient, safe and clean environment 12 Establish and manage fitness programs, classes and memberships 13 Coordinate the rentals of all available spaces within the building 14 Provide input and directions pertaining to policies, budget and general operation of ECC 15 Develop and manage capital improvements and long-range planning 16 Develop and manage policies & procedures that best meet the needs of the community 17 Coordinate outdoor events with indoor activities �J 17 • • • My 0f Eap 2007 Adopted Budget Operating Budget This page left intentionally blank. Y6' City of Baha 2007 Adopted Budget Operating Budget Community Center Responsible Manager: Jul! Johnson, Director of Parks & Recreation LINE ITEM DETAIL Acct PERSONAL SERVICES Actual 2004 Actual 2005. Budge 2006 Proposed 2007 6110 SALARIES AND WAGES -REGULAR $ 340,395 $ 400,940 $ 429,400 $ 445,900 6112 OVE711ME-REGULAR - - - 6130 SALAMES AND WAGES -TEMPORARY 253,041 259,674 315,500 319,000 6131 OVERTIME-TOMPORAW - - - 6142 PERAZOORDINATE3 28,683 32,740 23,700 27,900 6144 FICA 43,307 47,858 57,000 58,500 6151 HEALTH INSURANCE 45,882 60,103 73,000 89,000 6152 LIFE INSURANCE 697 818- 6154 DISABILITY- LONG TENNI 1,214 1,568 - - 6155 WORDS cONPEVSAnC ISI 8,264 10,307 6,400 11,900 TOTAL PERSONAL: SERVICES 721,483 813,998 905,000 952,200 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 2,940 2,279 4,000 3,000 6211 OFFICE PRINTED MATERIAL/FORMS 909 647 3,100 2,000 6212 OFFICE SMALL EQUIPMENT 16 1,004 5,100 2,200 6;220 OPERATING SUPPIJES-GENERAL 21,687 16,199 21,750 14,500 6222 MEDICAL/RESC UE/SAFETYSUPPLIES 17 53 300 200 6223 BUILDINGta-EANING SUPPLIES 12,433 17,755 16,000 14,300 WA C LOTHING(PERSONAL EQUIPMENT 1,896 3,210 3,000 3,000 -AW RECREATION EQUIPME TSUPPLIES 1,139 4,381 7,800 8,000 6230 REPAIR(MAINIEVANCESUPP-GEVL 2,583 1,899 2,500 2,500 62:12 SMALL EQUIPMENT REPAIR PARTS 115 1,495 9,000 7,000 6233 BUILDING REPAIR SUPPLIES 2,774 5,968 6,500 7,000 .6= OOMMUNICATICN SYSTEM PARTS 2 - - - 6240 SMALLTOOLS 424 19258 800 800 6241 SHOP MATERIALS 163 587 .650 600 6244 CHEMICALS & CHEMICAL PRODUCTS 1,448 248 1,000 2,300 6257 SIGNS & STRIPING MATERIAL 70 - 500 1,400 am oo PUTER SOFTWARE - - 100 7,100 'TOTAL PARTS & SUPPLIES 48,616 56,983 82,100 75,900 SERVICES & OTHEt CHARGES 6310 PROFESSIONAL SERVICES - 1,243. 3,000 $ 19500 6314 AUDITING 600 500 1,600 2,100 6315 FINANCIAL- N nAUDIT - 550 600 600 6320 INSTRUCTORS - 135 - - - 6346 POSTAGE 1,636 1,681 6,000 2,500 6347 TELEPHONE SERVICE & LINE C HG 1,801 3,609 5,600 4,400 6348 MATRLX SERM10E & REPAIR 63 - 500 500 6353 PERSONALAUTO/PAWNG 1,302 19526 2,000 1,800 ku .7 C. 0 AIML City Of Rap 2007 Adopted Budget Operating Budget • Community Center Responsible Manager: Juli Johnson, Director of Parks & Recreation 6355. CELLIAARTELEPHONESERVICE 997 263 1,000 500 6357 GENERAL ADNERIISING 3,075 4,994 11,600 13,000 6359 LEGAL NOTICE PUBLICATION 132 - - - 6370 (NERAL PRINTING AND BINDING 6,743 5,985 11,900 10,000 6385 INSURANCE 6,400 18,100 19,000 20,000 6405 ELECTR!ICITY 87,772 112,928 70,000 115,000 6410 NATURAL. GAS SERVICE 52,799 80,647 70,000 90,000 6426 SMALL. EQUIPMENT REPAIR. LABOR 120 115 - -, 6475 MISCELLANEOUS 694 6,405 15,000 3,000 6476 CONFERENCES AND SCHOOLS 3,299 5006 6,900 5,100 6477 LOCAL MEI=TING EXPENSES 115 155 1,000 500 6479 DUES AND SUBSCF2IPTIONS 396 485 800 1,000 6480 LICENSES, PERMITS AND TAXES 825 485 1,500 700 6467 VISA BANK CHARGES 8,477 7,882 10,000 9,000 6492 PAYING AGENT FEES - BONDS 403 403 400 400 6535 OTHER CONTRACTUAL SERVICES 8,310 1803 32,300 23,500 6539 WASTE REMCk/AUSANITATION.SERV 1,977 2,306 2,800 3,700 .6569 MAINTENANCE CONTRACTS 6,967 8,160 13,700. 15,700 OTHER SERVICES AND CHARGES 194,903 282,346 287,200 324,500 CAPITAL OUTLAY 6640 • 6650 MACHINERY/EQUIPMENT FURNITURE & FIXTURES 50 - - 3,724 23,200 - 4,400 27,000 6660 OFFICE FURNISHINGS & EQUIPMENT 4,796 4,993 9,300 4,800 6670 OTHEREQUIPMENT ENT - - 2,000 44,000 6700 CONSTRUCTION PROJECTS 26,596 3,178 - - wiTAL oun AY 31,442 11,895 34,500 80,200 AABtGiANDISE FOR RESALE 6855 AETCHPNDISE FOR RESALE 20,248 30,651 31,000 30,800 MIERCI-IANDISE FOR RESALE 20,248 30,651 31,000, 30,800 RESERVE FOR RENEWAL & REPLACEMENT - 120,800 121,600 . 12.4,500 TONAL ©OmVIImw Ceara $1,016,692 $ 1,314673 $ 1,461,400 $ 1,588,100 8.67% DEBTSERVICE PRINCIPAL. $ 530,000 $ 550,000 $ 566,000 $ 585,000 INTEREST 615,050 593,450 572,000 548,200 TOTAL DEBT SERVICE $1,145,050 $ 1,143,450: $ 1,138,000 $ 1,133,200 • 10 �1• • 1�1 Comm Ctr R&R schedule Eagan Community Center Capital Renewal/Replacement Funds Item Description BOILERS (3) WATER HEATERS (4). PLAYSPACE CHILLER ROOF RIDER FLOOR SCRUBBER KAIZEN RESTROOM CLEANER HUMIDIFIERS (4) CIRC MOTORS (4) AHU SUPPLY/RETURN MOTORS (4) BUFFER SWEEPER CARPET EXTRACTOR PULL EXTRACTOR WATER SOFTENER (2) CARPET SPOTTER BURNISHER WALK IN COOLER REACH IN REFER/FREEZER REACH IN REFRIDGERATOR REACH IN FREEZER DISPLAY COOLER WARMING OVENS (4) DISHWASHER BOOSTER HEATER PLATE WARMERS / HOLDERS (7) ICE MAKER REFRIDGERATOR (2) OVAL TABLES (45) RECTANGULAR TABLES (90) BISTRO TABLES (12) BANQUET CHAIRS (450). PLASTIC CHAIRS (175) PODIUMS (3) TENSABARRIERS (16) ATRIUM/LONE OAK FURNITURE POND FOUNTAIN BANQUET ROOM AUDIO SYSTEM AEROBIC STUDIO AUDIO SYSTEM EXERCISE ROOM AUDIO SYSTEM CARDIO FITNESS EQUIPMENT (30) FREE/SELECTORIZED FIT. EQUIP.(14) INDOOR CYCLE BIKES (15) TEEN CENTER FURNITURE PREFUNCTION / OAKS CARPET REMAINING BUILDING CARPET BUILDING VCT /VINYL FLOORING ATRIUM MEETING ROOM / TEEN CENTER / LONE OAK AED MENU BOARD BURNISHER - 2nd 9/8/2006 Estimated Useful Replacement Year Annual Year to Life cost Replaced Amortization Replace 35 $ 75,000 NEW 03 $ 2,143 2037 12 16,000 NEW 03 1,333 2014 8 150,000 NEW 03 18,750 2010 20 135,000 NEW 03 6,750 2022 20 250,000 NEW 03 12,500 2022 6 8,800 NEW 03 1,467 2008 6 2,800 NEW 03 467 2008 10 48,000 NEW 03 4,800 2012 8 4,800 NEW 03 600 2010 35 120,000 NEW 03 3,429 2037 7. 1,500 NEW 03 214 2009 . 7 3,300. NEW 03 471 2009 7 5,500 NEW 03 786 2009 5 2,400 NEW 03 480 2009 20 9,000 NEW 03 450 2022 7 600 NEW 03 86 2009 7 1,500 NEW 03 214 2009 8 8,000 NEW 03 1,000 2010 7 . 4,850 NEW 03 693 2009 7 4,050 NEW.03 579 2009 7 4,050 NEW 03 579 2009 7 1,000 NEW 03 143 2009 7 11,000 NEW 03 . 1,571 2009 10 8,400 NEW 03 840 2012 7 1,020 NEW 03 .146 2009 7 11,320 NEW 03 1,617 2009 7 2,600 NEW 03 371 2009 .12 800 NEW 03 67 2014 15 15,750 NEW 03 1,050 2017 15 22,500 NEW 03 1,500 2017 15 3,600 NEW 03 240 2017 5 37,050 NEW 03 7,410 2007 5 _ 3,850 NEW 03 770 2007 12 2,000 NEW 03 167 2014 12 2,300 NEW 03 192 2014 7 8,600 NEW 03 1,229 2009 6 7,000 NEW 03 1,167 2008 8 21,550 NEW 03 2,694 2010 8 10,580 NEW 03 1,323 2010 7 2,700 NEW 03 386 2009 7 116,040 NEW 03 16,577 2009 7 7,500 NEW 03 1,071 2009 6 8,625 NEW 03 1,438 2008/09 7 15,000 NEW 03 2,143 2009 5 40,000 NEW 03 8,000 2007 7 46,000 NEW 03 6,571 2009 5 19,500 NEW 03 3,900 2007 5 3,000 NEW 03 600 2007 6 16,500 NEW 03 2,750, 2008 10 2,000 NEW 04 200 2013 15 2,000 NEW 04.. 133 2018 3 1,500 USED 04 500 2006 . Total 1241554 Eagan Community Center Marketing — 2006 • Below is a summary of how various areas of the Community Center are being marketed in 2006. Fitness Memberships and Classes: i • Letter sent to all members to send yearly guest passes, promote addition of new equipment and programs • Jan. promo commercial made for local cable • Ad in special ,pull out section of the This Week newspaper for January membership special, "Active Rewards" • - Coupon in the. Super Savers book for the Jan. promo • Email sent to corporate contacts regarding Jan. promo • Press releases on complimentary group fitness classes • Letter sent to all 90 day, participants from previous year • Press release submitted • Posted on electronic sign board • Flyer emailed to corporate contacts Flyer posted throughout ECC and on local community boards • Promo box and press release on City web page The Blast Indoor Playground: d: • . • Booth and staff attendance at Kids. Expo at the Minneapolis Convention Center in February. • Sent follow up information to show attendees for birthday parties • Letters to day care providers in six communities (600 letters sent) _ • Flyer to all MN Parks and Recreation agencies (nearly 600) for summer group field trips • Ad in GO! Directory — a special summer issue of MN Parent . 1/a page ad in Simply MN — fall issue, 50,000 copies distributed in southern MN region • Coupon on back of Cub receipts for Apple Valley store, running from June 16 -Sept • Hotel rack card with coupon at surrounding hotels + Anticipate sendingout direct mail to Inver Grove Heights/Mendota Heights communities announcing new Non-resident punch card for Blast. • Table/Booth at Elementary school open houses. r • New reader board installed on Pilot Knob to alert people of current and upcoming events. • Hand out flyers at a of July parade advertising "After 5:00" special in The Blast. • Letter sent to local youth groups about overnight party rentals. 2 Banquet Room and Meeting Rooms: i • Ads placed in the Wedding Directory and Wedding Guide. Updated this year to include. listing as both a reception site and a ceremony site. • Ad in Minnesota Meeting & Events Resource Guide. • Ad in Eagan Telephone Directory. • Listing in MSAE (MN Society of Associate Executives) alternative meeting resource • . guide. Letters to school leaders and coaches who will be planning 2007 sports banquets. • Staff visits to local business & meetings. • Staff visits with local hotels to hand out ECC and City information on events and recreational opportunities. • Staff attendance at meeting planner forumsat the U of M. • Staff membership in the International Special Events Society. • Revised banquet brochure. • Anticipated fall wedding planning classes to be marketed to ECC brides. • Increased involvement with the ECVB, including staff on the marketing committee. • Staff attendance and sponsorship for government meeting planner association golf • tournament. Over 500 brochures and informational packets mailed out to potential customers. • Purchasing folders with the ECC logo to use in giving out ECC information. • Begin updating AV equipment as a means to market to more meeting customers. • Regular On -Going Marketing: • Press releases are done on a regular basis for all specialty programs • Link on the Explore Minnesota web site as "attraction" • Articles written for Experience Eagan • . Promotion in the Discover Brochure • Promotion on City Web Page • Promotions put on BECT • . All birthday party packets given out include Blast brochure • Updates and revisions to the virtual tour • Marquee at city hall and new electronic reader board used to promote all programs, memberships,.fitness classes and rental opportunities • Brochures placed on a marketing table near the banquet room when any large group is renting the Oaks • Brochure available at other City facilities 0 • ECC Marketing/Coordination with ECVB Marketina Committee Melissa Wind has begun attending marketing committee meetings. The.next is scheduled for August and they will continue every other month. It has been a very productive meeting to answer a lot of questions and get a lot if insight into each other's needs. Melissa is currently in the process of meeting with each hotel manager to deliver information and answer questions. Each meeting has been about 30-45 minutes and has been very helpful to learn more about the properties and potential rental opportunities for ECC or other facility spaces. Golf Tournament The ECC was represented at the SGMP golf outing this week. The idea and information was shared by Roberta at the ECVB. It is a group of Government Meeting Planners and a great opportunity that we wouldn't have known about without the ECVB involvement. Communication Although we don't have any regularly scheduled, meetings (other than the marketing committee) right now, the communication has been much mre forthcoming and recipricol. We willbe • working toward a more formalized meeting in the future.. Wedding/ Groups Hotels The ECVB provides the ECC with a list of hotels to hand out to groups and brides. About 500 copies are given away to potential customers every year. That flyer also contains the ECVB information. When asked about hotel rooms ECC staff will continue to direct people to the ECVB. People are also directed to the ECVB when we don't have the space they need. Advertising The ECVB is looking at changing their advertising budget and publications for the next year. ECC staff will remain a part of that process so that advertising can be better planned and not compete. More partnering will occur in the planned advertising venues. C� !M/ • - AGENDA SPECIAL CITY COUNCIL MEETING THURSDAY SEPTEMBER 14, 2006 5:30 P.M. EAGAN ROOM — CITY HALL . I. ROLL CALL AND AGENDA ADOPTION II. VISITORS TO BE HEARD .III. CANVASS BALLOTS FOR SEPTEMBER 129 2006 PRIMARY ELECTION (MAYOR &CITY COUNCIL • CANDIDATES ONLY) a, IV. WINDOW SIGN TASK FORCE RECOMMENDATION V. PROPOSED 2007 PUBLIC UTILITY ENTERPRISE BUDGETS: ■ Water ■ Sanitary Sewer ■ Street Lighting ■ Storm Drainage ■ Water Quality VI. CASCADE BAY BUDGET p� VII. EAGAN COMMUNITY CENTER BUDGET i VIII. OTHER BUSINESS IX. ADJOURNMENT • Agenda Memo September 14, 2006 Special City Council Meeting III. CANVASS BALLOTS FOR SEPTEMBER 12, 2006 PRIMARY ELECTION (MAYOR AND CITY COUNCIL CANDIDATES ONLY) i ACTION TO BE CONSIDERED: Certify the results of the September 12, 2006 Municipal Primary Election . FACTS: • State law provides that within two days after the primary election, the governing body of the municipality shall "canvass the returns, and the two candidates for each office who receive the highest number of votes, or a number of candidates equal to twice the number of individuals to be elected to the office, who receive the highest number of votes, shall be the nominees for the office named. • ATTACHMENTS: Election results will be distributed at the meeting on Thursday. Agenda Information Memo September 14, 2006 City Council Workshop X., WINDOW SIGN TASK FORCE RECOMMENDATION DIRECTION REQUESTED OF THE CITY COUNCIL: To receive the recommendation of the Eagan Window Sign Task Force and to direct consideration of the matter to the Advisory Planning Commission for consideration of an amendment of the City Code section regulating window signage. FACTS: • The Eagan City Code Section 11.70 establishes the standards under which signs are regulated within the City of Eagan.As is the case with most local government sign codes, Eagan's Code regulates the. time, place, size and manner in which signs may be displayed. The code has been applied to wall signs,, monument signs, pylon signs, directional signs and temporary signs for some time. • In 2005, the City Council directed the Advisory. Planning Commission and staff to study possible changes in the regulation of temporary signs and additional: regulation for window signage. The City Council also directed the process to include communications with the business community, which was done through the Chamber of Commerce and by other means, to invite comment and input regarding the possible changes. The Chamber and a number of businesses provided input during the Advisory Planning Commission process. The Code amendment was adopted in the summer of 2005. • In early 2006, City staff distributed a letter to business property owners advising them of the changes. At that time, City staff and the Chamber of Commerce received a number of questions and concerns regarding the implementation of the new regulations for window signage. While prospective window sign regulations were included in the communications distributed in 2005, a number of businesses indicate that they were not aware of the actual consequences of the code amendment for their businesses until the 2006 correspondence outlined the process for compliance with the code. • In response to the concerns raised, the City Council took input from the business community at a workshop meeting on March 14, 2006. At that time, the Council directed the formation of a Task Force to revisit the window sign provisions that had been adopted in 2005 to consider recommendations for retaining and/or modifying the requirements. The Council directed staff to postpone enforcement of those provisions until completion of the Task Force review. The Task Force was appointed on March 21, 2006 and met between April 4 and June 6, 2006, at which time a recommendation was prepared. The Council's workshop 'schedule for the summer resulted in the item coming back to the Council for .consideration a at this time. ATTACHMENTS: • • Staff memo of Septem er 7, 2006 summarizing Task Force recommendations on pages through • Window Sign Task Force Meeting Notes on pages through • City Attorney's memo of June 20, 2006 regarding implementation steps on pages through ?. • 0 0 C7 City of Eagn Me TO: TOM HEDGES, CITY ADMINISTRATOR FROM: JON HOHENSTEIN, COMMUNITY DEVELOPMENT DIRECTOR DATE: SEPTEMBER 7, 2006 SUBJECT: WINDOW SIGN TASK FORCE RECOMMENDATIONS The Eagan, Window Sign Task Force completed its work on Tuesday, June 6, 2006 with consensus to forward a recommendation to the Eagan City Council for further modifications of the City's Sign Ordinance as it pertains to window signs. The recommendation that is forwarded to the Council includes the notes from the Task Force meetings, this memo and a memo from the City Attomey's office dated June 20, 2006 that overviews an implementation procedure for use at such time as the amendment occurs. The City Council's consideration of this recommendation is scheduled for its workshop meeting of September 14. As we have discussed, the Council, will then direct the issue to the Advisory Planning Commission for a public hearing on the amendments, after which the Commission's recommendation will be returned to the Council for final action. Task Force Recommendation Over the course ' of the Task Force meetings, a consensus was reached on the following recommendations: e Removal of 4-6' clear zone restriction — It was concluded that visibility into and out of businesses could be addressed through the percentage coverage without a 4-6' clear zone. e Up to 60% window coverage — The group concluded compromising at 60% would balance the needs expressed by the participants. e Window signs would be defined as a sign either applied to the inside surface of a window or within 18" of the window surface. The group concluded that ,a sign on the window or placed inside the business, but clearly visible through the window, would meet the definition of a sign. e . Method of measurement — Staff provided information about the methods of measurement of signs — in particular the concept of a shape enclosed by no more than 12 sides. After this explanation, the, consensus was that the current approach to sign measurement is acceptable. • Grandfathering — The group . agreed that some mechanism for • grandfathering existing signage in excess of the 60% maximum should be developed. The City Attorney's memo of June 20, 2006 outlines a.proposed implementation approach involving "exemptions" for properties that currently exceed the 60% coverage with a phase out schedule under which all properties would need to come into conformance with the new standards within a set time period. The period of seven (7) years was recommended. • Exemptions instead of permits — It appears that most businesses' existing signage would comply with the 60% coverage standard. That being the case, rather than implementing, a permit process for a large number of businesses that already comply, the recommended approach is the exemption process for the much smaller number of businesses that cannot or wish not to comply in the short term. At the close of the Task Force's work, one open issue remained, which members indicated would be addressed through the City Council and Planning Commission consideration of the matter: • Whether area of window signage will count toward the 20% maximum signage permitted on a building side One of the original reasons the Council noted for considering window sign regulations was that the permitted signage on the side of a building is 20'/o and some businesses use both large building signs and a substantial amount of window. signage, such that the total signage for the business may exceed 200A of a building side. In response, the original amendment of the sign code required the area of window signs to be included within the 20% calculation for the wall side. • The Task Force did not reach a conclusion on this issue, based on discussion outlined in the Meeting Notes of June - 6. Business representatives indicated a preference for not requiring window signs to fall within the 20% calculation. Other participants suggested other positions. • The Councilmembers participating in the Task Force indicated that this. issue should be presented for final recommendation and consideration by the Planning Commission. and Council. Communication of Revised Window Sign Regulations In 2005, the City used a variety of tools to communicate the potential changes to the community at large and the business community. When businesses came forward this winter regarding the changes, one of the questions was how best to communicate any additional changes, moving forward. The Task Force reviewed the following list of tools to determine whether any additional means of distributing information about the amendments. The only additional resource noted was to continue to use the mailing list that was compiled, from the group that attended the February Council workshop. That group received notices of the Task Force meetings. • The following communication tools were used in 2005: • Chamber of Commerce Weekly Email Updates • Eagan Business Council. Meetings • Mayor's Breakfast • Eagan Business News Newsletter •, City Newsletter • City Website • Direct mailings to businesses that had been the subject of enforcement actions in the past • Press Release — Stories were published in the Eagan Sun Current and Pioneer Press • Planning Commission Workshops and Regular Meetings • Conversations with Businesses As this matter is brought forward for further consideration by the Council and Planning Commission, the same tools will again be used to communicate meeting dates for those interested in participating in the discussions. • C7 MEETING NOTES WINDOW SIGAGE TASK FORCE MEETING APRIL 4, 2006 • Task Force members in attendance: Dave Perrier, Perrier Wines & Spirits; Jack Johnson,, Cartridge World; Ruthe Batulis, NDC Chambers of Commerce; Buzz Anderson, Minnesota Retailers Association; John Curlee, State Farm Insurance, Advisory Planning Commission members Ted Gladhill and Gary Hansen; and City Councilmembers Cyndee Fields, and Mike Maguire. Present in the audience: Wes Hallberg, Yocum Oil. Company representative and owner/operator of the Holiday Stationstore at Cliff and Thomas Center Drive, and a representative of the Diffley/Lexington Great Clips. City staff in attendance: Community Development Director Jon Hohenstein .and City Planner Mike Ridley. Community Development Director Jon Hohenstein opened the meeting by providing background information on the Sign Ordinance and the reason for the meeting today. Cyndee Fields stated that she is awar&,the City needs to listen and is interested in • finding a balance between'Wsiness needs and the City's needs. Mike Maguire spoke about the need to find a: balance between community needs and the business needs, as well: Buzz Anderson asked where the Sign Ordinance came from and why. He stated that he has lived ' in Eagan forover 15 years and has never heard any complaints about signs. Councilmember Fields responded that she has had concerns shared with her that are not, typically, relative to a specific development item.. Councilmember Maguire echoed the same and stated he has has also received complaints (mostly while attending civic events such as the 4th of July celebration) that are not in writing but in passing where someone will mention a concern about too much • I •signage. That, in addition, he stated to the City Council's review regarding upgrading material finishes in the commercial/retail areas brought the window signage issue to light while .the Council was reviewing photos of same businesses, but located in different cities. Jon Hohenstein commented on the inception of the City Council's direction to the Planning Commission to review window signage and the Council's. desire to obtain a level playing field. Dave Perrier remarked that there was not a lot of'input from the audience when the Planning Commission held its Public Hearing.:,on this ordinance amendment., He went on to say that he. would like to know exactly what; it, is the ..-:City wants and stressed the importance of having the City understand what the business needs are. Mike Maguire spoke about an outcome he hopes balances: °everyone's needs. He • specifically spoke to the rationale behind the 4' 6clear zone and how that related to the best management practice;in the public safety community. Jon Hohenstein commented that, it is not unusual for people unfamiliar with City meetings and public hearings. to not understand when it is appropriate to speak. He. also said'`#hat that was>the purpose for the communication efforts the City made with press releases, weekly articles in both the local paper and the St. Paul Pioneer Press, information in the Eagan Business Newsletter, and the inclusion of Chamber President Ruthe Batulis and -.her abiliW"to mass email multiple businesses. Mr. Hohenstein explained thatall of the communications lead up to a February meeting of the Planning Commission where interested parties were invited to testify regarding the proposed Ordinance Amendment. He further stated that based on testimony received in February, modifications were made to the Draft Ordinance Amendment for which the Planning Commission held a Public Hearing in April. Additional testimony • was received at that meeting and, the item was carried over to the May Planning 2 Commission meeting to allow further modifications based on business community concerns. John Cudee stated that the group was spinning its wheels . trying to figure out the communications breakdown and proposed, to move forward. He would like to startwith just some simple points for the group to consider: 1) _Keep it simple. 2) The clear zone which is at eye level a prime location for business I.D. and :information. 3) Window space generally is a prime location for business promotion, '4)..If there is going to be a permit and/or fee, would existing businesses with existing signs` be grandfathered? 5) What is the criteria and interpretation relative to -enforcement? %; ,"" Would corporate branding be allowed? 7) The importance of consistency with enforcement.:... Buzz Anderson said that he doesn't understand the'V.6' clear zone and wondered if it was necessary. He questioned that if ho. one can see into a,bank, and other businesses choose to have curtains/blinds or don't have window space at':all, how does that line up with the public safety concern of seeing; in and'out of a, building? Jon Hohenstein commented that it was simply,a best management practice provided by public safety and wasn't a code requirement, :but as part of, the window signage amendment effort, it was included. Mike Maguire agreed,*ith Hohenstein and commented that a 4'-6' clear zone was not a bottom line issue to him Dave Perrier commented that some businesses, particularly national, have unique or recognizable buildings„or architecture that result in the building essentially being a logo. He asked if he could -,.6 imply tell the group what his business needs? Mike Maguire stated he was open to that suggestion. 3 .7 U C7 • Ted Gladhill commented that the Planning Commission and Council typically deal with infill issues where either retail wasn't originally intended or its coming into a space now, that is in close proximity to existing neighborhoods. Wes Hallberg, commented that small business can't compete with large businesses or national chains from the standpoint of marketing budgets. Jack Johnson commented that the 4'-6' clear zone was an impediment on his business operation and that signage he installed on a permanent wall approximately 3' back from the side windows illustrates the concern of interpretation :and enforcement. Dave Perrier said that given the fact that vehicles; can park,,An front of his tenant space, he needs visibility over those parked cars out front'and`Vent on to state that he needs window signage to get people into the ;store by alerting them of specials currently being offered. He went on to say that the City should be concemed';only with what people can • see. from the public right-of-way. John Curlee commented that. "corporate branding is important, that window signage is important for promotions,:,and `:that he chose retail center intentionally because of traffic generated and, as`.:'such, pays a > higher rent and higher taxes. He says businesses would like°to, maximize their retail space and would like the ability to put signage in a window announcing promotions, for example. Buzz Anderson.: commented that he represents businesses of all sizes, but small business is more'affected'by City regulations regarding advertising and promotion. His organization sees more and more cities infringing on more businesses and they don't belong there. Cyndee Fields commented that the bill the Retailers Association had before the Legislature isn't appropriate because it takes local control away from cities and tries a • "one size fits all" statewide. F11 W /15 Jon Hohenstein commented on future meetings. • Buzz Anderson asked if there is a bottom line. Mike Maguire stated that he would like to limit the number of meetings, cover more ground at each meeting, and said there is not a bottom line. Cyndee Fields asked if permits are a big issue. . John Curlee stated that permits are a big deal Mike Maguire suggested that advertising is okay, yet ;interpretation (Le. products back from windows) needs to be looked at There was a brief discussion about the 26% wall coverage maximum. • Buzz Anderson asked'if the 209/ was negotiable. Mike Maguire stated that it was not, that portion of the Code has existed for many years and it is not part of the charge of; the City Council to the Task Force. Jon Hohenstein stated that it might be helpful for the group to understand exactly what part of the new ordinance is most troubling for the business owner in attendance. J John Curlee suggested that Ruthe Batulis email some businesses on the issues and recommended the following points for future discussion: 1) criteria and interpretation; 2) percentage, 3) permit issue, 4) grandfathering and how it will be enforced. Ted Gladhill stated there should be a limit that creates fairness in competition., U W • Mike Maguire summarized three things he would like from the standpoint of information for the next meeting: 1) He requested Task Force members representing the business community provide pictures/examples of signs that would need to be altered to comply with the ordinance as it exists today.. 2) What are the specific ordinance language changes the businesses would like to see? 3) Is there a balance that can be struck? Discussion occurred relative to gathering information. The next Task Force meeting was scheduled for Tuesday, April::18 at 4:00 p.m. in the Eagan Room. As the meeting concluded, Jon Hohenstein reiterated thati. it would be helpful for the business owners in. attendance to provide staff information (photos if necessary, explaining how the current ordinance.: "negatively affectg.their existing signage) by the middle of next week, preferably on or before "April.,12. • CD/Jon Hohenstein/ftnage/Meeting Notes/Meeting of 4-4-06 WINDOW SIGAGE TASK FORCE MEETING APRIL 18, 2006 In. attendance: Councilmembers Maguire and Fields, Ruthe Batulis, Jack Johnson, Dave Perrier, John Curlee, APC Members Gladhill and Hansen, City Administrator Hedges, Community Development Director Hohenstein, and City Planner Ridley. ➢ Jon Hohenstein provided brief opening remarks. ➢ Councilmember Maguire proposed the following:..,,. 1. Agree on a percentage for window signage 2. Arrive at a conclusion on grandfathering `most, if not all, existing ,signs. 3. Discuss permits and explicit information :.. about enforcement and interpretation, i.e. product placement. ➢ Jack Johnson agreed and stated there are four issues business owners and Ruthe Batulis had discussed at a' meeting since the Task Force last met: o Grandfather existing signage. o Nix a permit fee for existing"::sig ns, although the group had not decided • whether.:0 permit or fee should be charged for new (currently not existing) tenant signage o Interpretation's The group believed interpretation and enforcement need 'to`be better defined. o Percentage of window signage — Their group would like no restriction on ;;.percentage, brut understood that a percentage between 25-100% needs to. be; established: ➢ Mike Maguire., asked Dave Perrier if he operates with slotting fees . regarding vendors and their signage. Dave responded that he did not. ➢ Cyndee Fields asked if grandfathering would cover all painted and poster type signage currently in place. There was no consensus reached on that. • 1 13 • ➢ John Curlee opined that if all business' owners in town were surveyed, 99% would question why window signage would be regulated at all. A Cyndee Fields responded that there are regulations for many things and the purpose of this group is to strike a balance. As an example, she- stated the City . regulates the number of pets people can have. ➢ John Curlee stated that it was his assertion that very: few business owners would utilize 100% of their window for signage and thaif,most, if:,hot all, signage would be tasteful. ➢ Jon Hohenstein requested clarification that= the discussion was. based on the 4-6' clear -zone being removed from consideration.!;. The group stated that was affirmative. • ➢ Jack Johnson mentioned that with all of the people in businesses he spoke to, the predominant, 'mount of window signage necessary, in their minds, is at least 50% or greater,., . Jon Hohenste.,in offered.photos ranging from: 1) existing signs that do not appear to. meet the present 25% requirement, 2) a group that appears to meet the 25% requirement although not the 4=6' clear zone, and 3) those that appear to meet all current window sign standards. ➢ An audience'.member clarified issues on slotting and advertising for convenience gas stores and that there are slotting fees for tobacco sales, as far as he knew, in every convenience gas operation., A Ted Gladhill shared photos he had taken and spoke about equity and the impact of varying amounts of window signs on neighboring business within the same strip center.. 2 4 ➢ Ted stated he believes every business would like to maximize signage capacity, • (he referenced portable trailer signage) but also believes there needs to be a limit. He stated he understands the grandfather clause argument, but that just because signage currently exists, that does not mean it is appropriate signage. ➢ Ted went on to say that he didn't believe the grandfathering clause would be fair to a new business being subject to stricter standards, than a competitor just because the existing business had pre-existing signage. ➢ John Curlee explained that the group was just talking about window signage and not portable trailer signage, etc. He went on to state that if his tenarrt space was next to a space that utilized 100% of its window signage, it wouldn't make a difference. He stated traffic 'isthe key and that the two critical issues to any business are aesthetics and location/space. ➢ Mike Maguire stated.;that while aesthetics are part of this discussion, the public • safety factor is, still relevant. ➢ Ruthe Batulis stated that public safety could be a voluntary compliance issue. She gave an example of: -a retail operation experiencing a crime :of some sort, a follow up with that- business:'owner after the fact could encourage voluntary compliance where visibility in and out, would be an option. ➢ Mike Maguire -,'."stated that he would rather be proactive on public safety, provided it is balancer A Mike and Cyndee both stated that the 4-6' clear zone is impractical. ➢ John Curlee.stated that he has issues with Piccolo's and the Italian Pie Shoppe in that both retailers have very attractive and appropriate signage that might not 3 I� • meet the 25% coverage standard and certainly doesn't meet the 4-6' clear zone even though in both cases the signs are see-through to a point and don't block view in and out. ➢ Dave Perrier questioned why are we even doing this? He stated he understands the 100% on certain garage doors or any other "over the top" type signage, but is concerned that with most of the pictures shown, you can't see the signs or what they say unless you are 30' from the space and, therefore, wouldn't be visible to the public passing by on a public right-of-way. ➢ Mike Maguire stated that he believes the; group has the issues boiled, down to the right ones. ➢ Ted Gladhill stated that window., blockage vs. signage. is different. ➢ John. Curlee stated that he would like'l clarification on aesthetics in that he believes aesthetics, is 6,slippery slope and he can't think of a business that would put up questionable signage. ➢ Mike Maguire, _ stated;. the 50%4'Indow coverage is very high compared to other the communitio"rveyed� :and provided on a matrix to the group. ➢ Cyndee, Fields clarified that whatever direction this group goes, she and Mike are only two of, a five -member City Council, which includes the Mayor. ➢ Jon Hohenstein stated that the hour was getting late and explained what he understood the City Council wanted and gave direction back in 2004. Fields & Maguire concurred. ➢ Cyndee Fields stated that she would prefer to exclude permanent wall signage • from this discussion and focus on window signage and the percentage of same. ➢ Ted Gladhill commented that Tires Plus, with numerous large garage doors vs. a E D 0 a E: business with a window, or two and a door, presents an unfair advertising opportunity. Jack Johnson stated that windows don't drive a business decision; it is traffic in the door that matters, and he wants to use the window space only in a reasonable fashion. Cyndee Fields asked if the group is simply, down to window percentage at this point? John Curlee stated percentage and permits. Mike Maguire added grandfathering Cyndee Fields suggested a no -fee permit. Mike Maguire remarked that incorporation' of the permits was a way to assist City staff in;:tracking signage,,througf out th6 community. Maguire stated th4 he was pleased with the outcome and ground covered in this meeting,, and sugges#ed that for the next meeting, business representatives come back with;�a, proposed percentage of window signage between the 25 and 100%. He requested that staff prepare information relative to enforcement and interpretation.,, ➢ Ruthe Batulis suggested that from the grandfathering standpoint, people who have already spent money to install window signage should not have to incur a cost by replacing that'signage. 5 17 CJ C U • ➢ Jon Hohenstein clarified that permanent wall signage was excluded from this discussion and the focus was merely on window signage and the appropriate percentage in addition to the grandfathering discussion earlier. The group concurred. ➢ Jon proposed that the next meeting be at 4:30 p.m. on Tuesday, May 2nd. The group agreed. • 6 �Q WINDOW SIGAGE TASK FORCE MEETING MAY 2, 2006 U In attendance: Councilmembers Maguire and Fields, Ruthe Batulis, Jack Johnson, Dave Perrier, John Curlee, Buzz Anderson, APC Members Gladhill and Hansen, City Administrator Hedges, Community Development Director Hohenstein, City Planner Ridley, and Senior Code Enforcement Technician Mary Granley. Audience members represented Cliff Road Holiday and Davanni's. Jon. Hohenstein opened the meeting by providing a summary of events to date and stated at the conclusion of this Task Force process, he would: -like to have a discussion with the group about how to communicate the outcome'of this exercise as well as other potential ordinances that may affect local business :,He` concluded by introducing the City's Senior Code Enforcement Technician, Mary Granley, who was in attendance for purposes of resource for application and' interpretation of..City Codes ➢ Mike Maguire stated that he saw the central issues as: 1) the need for a simple ordinance focused on percentage; 2) further ,discussion necessary to address grandfathering and permitting,<, and 3). in the area.of percentage, suggested that 50% is as low as he is interested in,,going. He questioned City Planner Ridley about the range. of percentages in the matrix of cities contacted. ➢ Mike Ridley stated percentages rano ;20-50%. Mike Maguire then • commented that he`'unclerstood the different needs for window signage based on different business types ➢ Buzz Anderson asked, "How do you differentiate between the businesses"? ➢ Mike Maguire stated that unless the City has an ordinance that differentiates (which wouldbe extremely burdensome and unmanageable), he was hoping for a solution that would be magageable for most and cumbersome for few. ➢ Wes, present in the ,audience and representing the Cliff Road Holiday store, asked''about signage that was placed back from any wall. Mike Maguire commentedjhat he: is not concerned with product placement. ➢ John Curlee declared, "Starting at 50% is a good start; what do you think?" He asked Jack Johnson to comment. Jack commented that there are subsets like liquor and convenience gas that would like 100%, but realizes it must be negotiated. ➢ Buzz Anderson said that 'convenience gas is already regulated by State standards requiring visibility from the cashier to the pumps to avoid drive -offs, etc. As such,, he doesn't believe the public safety argument for regulating window signage is legitimate. 1 Iq • ➢ Mike Maguire stated that he disagrees with the premise of that argument and that seeing the pumps is different than seeing what may or may not be coming out the door. ➢ Jon Hohenstein commented that the group was replowing old ground and that in order to stay on task and on time, the discussion should center on the percentage offered. ➢ John Curlee again asked what the group's thoughts were;..''``'` ➢ Cyndee Fields stated that she would not exceed75%0 Oary Hansen stated he would support a 50% maximum; Ted Gladhill stated that h6 -didn't see any reason to deviate from the peer group of cities that ,were reviewed ;for standards and believes that 25% is reasonable. ➢ Buzz Anderson asked why it matters what other cities do. Mike Maguire commented. that the City always checks with, :other cities when looking to amend/create City Codes if for no other reason than for the purpose of determining reasonableness. ➢ Jon Hohenstein commented that reviewing what other -;cities do with their Codes is the best practice the City has consistently utilized.. John Curlee stated that he doesn't belittle that best practice,' but. stated that, we shouldn't blindly follow a precedent set by others and that it'`should be thought through and carefully considered. ➢ There was general discussion about the percentage of businesses that presently exceed 50%; the assumption of the was that probably 80% would meet .group 5004,b, or less, and perhaps 20% of existing businesses currently exceed 50%. ➢ Wes, representing,'Holiday on 'Cliff Road, stated that if the ordinance doesn't apply to signage not on thewindow, he is okay with whatever percentage the group ,comes up with -because his banners hang on rods approximately 20" back from the,'window. ➢ Mike Maguire;;:.stated he is concerned by banners hung to be visible for the outside, and that he would consider that window signage. ➢ Jon Hohenstein suggested shifting in gear to review Mary Granley's memo for definition of window signage. ➢ Buzz Anderson asked what Dave Perrier's coverage was and asked if his doors are covered.. Dave guessed his percentage coverage is about 70% and his doors are generally free of signage. • 2 SA ➢ Holiday's representative said that convenience stores are actually moving away • from a lot of signage and in response to Mike. Maguire's question stated he is probably at or maybe a little below 50% today. John Curlee stated that if there are banners hanging to be visible .from outside, that would be considered signage. ➢ Dave Perrier asked a question about "display vs signage" and went on to say that no one from the public has approached him to thank him for participating in this window sign task force. ➢ Mike Maguire talked about the potential of surveying the public to get other opinions about window signage in the City, but he doesn't know what that will accomplish and would prefer to work through this process that has already begun. ➢ Cyndee Fields stated that she does hear complaints and random comments from people (not in writing, but at different events,) about the amount 6f -signage in town. ➢ An audience member from Davanni's suggested that it shouldn't be considered signage if you can walk in front of it, Mike Maguire liked that idea as a way to define product placement/display vS'-Sl' . ➢ John Curlee asked again what percentage the: group can live with, specifically • asking Dave Pernen Perrier stated 70%. Mike Maguire', -a. skedhow,Ythe APC came up with 25%. Gary Hansen explained there was a range, of opinions of Planning Commission members and that number„,,shifted during vanous..:discussions, but ultimately through background. information, public testimony and hearings, the commission landed on 25% as reasonable amount, given; the "industry standards” established in surrounding communities. ➢ Ruthe, Batulis addedthat she has anecdotal evidence that because Burnsville has a 25% standard,, there are businesses looking to leave Burnsville and come to Eagan to get away from that signage limit. L:r ➢ John Curlee asked, "Is this a consensus attempt or should the group be making motions? Cyndee Fields stated that the" group should arrive at a recommendation and to get as close as possible to a consensus would be good. Mike Maguire agreed. ➢ John Curlee made a motion to set the percentage of window signage at 70%; Ruthe Batulis seconded that motion. • 3 a� • ➢ Buzz Anderson stated that, he expects to see a high percentage, if not all windows at a liquor store, covered in signs. He also commented that the little guy (small business) needs to advertise that way to get people in the door. ➢ John Curlee stated that he doesn't believe every business will suddenly put up a lot of signage based on a new percentage allowed. ➢ Jon Hohenstein commented on the set-up of the task force in that there is no Chair and that the hopeful outcome was consensus. ➢ Wes, representing Cliff Road Holiday, stated he was optimistic that 70% would work for all convenience store operators in town. ➢ Mike Maguire stated that it would be important to ` hear from .Planning Commission members and that he understood the varying ,needs between businesses, but felt 70% is very high. He countered that he would.support 60% coverage. ➢ Cyndee Fields commented that the group needs, to keep in mind that whatever the Task Force arrives at must.be able to be sold. to the rest of the City Council and that she is more comfortable with, 600%. ➢ John Curlee commented that he was throwing out the 70% figure to get the ball rolling and asked an audience attendee representing Davanni's what percentage of window signage Davanni's currently has. She, mmented that it .is most likely under 60%, but they have an etched logo in the door that would need to be considered ➢ Mike Maguire proposed 606W.,as the; evel of signage and commented that that exceed sthe percenfage:,.allowed m' other cities surveyed and he assumes that those cities have ;liquor stores as well. Mike went on to share his experience as signage not being the driving .force; in fact, he stated that when he is going to the liquor store, he knows he is` going to buy beer (for example), and it is not the signage, that gets hire% in the store because he has already made the decision to go to the liquor store: However, once he is inside the store, ,then he compares prices of saie,items='and makes a decision on what to purchase. ➢ Ted Gladhill 6sked if there is anything more than anecdotal information on the impact on sales that can be attributed to window signage? ➢ John Curlee asked the group what percentage they could live with and got the following responses: ❑ Buzz Anderson --would like it as high as possible, but could live with 60%. ❑ Cyndee Fields --60% • ❑ Gary Hansen --would comprise and go with 60% 4 ad� ❑ Ted Gladhill-- 25% • ❑ Jack Johnson --60% ❑ Dave Perrier-> 60% ❑ Ruth Batulis--60% > John Curlee summarized by saying that while 60% is the predominant percentage acceptable, there are still issues to be worked out regarding how it is measured, grandfathering, permits, and how to deal with certain types of signage like etched glass, applied "see-through logos, etc. > Jon Hohenstein summarized for the group to make sure that staff understood the direction as follows: 1) future discussion on permits;; ,2) grandfathering; 3) determination on etched glass signage, etc.; 4), 60%.'maximum window sign. coverage; and 5) signage vs display would b& idetermined `by distance from the ,Window, i.e. that if a person can walk between the window''and, the display, it would not constitute signage. The group :agreed with those perimeters..: Cyndee Fields suggested that the group meet again on May 16th . and asked if a 4:00 start is possible. The group agreed to a 4:00 startindA me on Tuesday, May 16th. Mike Maguire thanked everyone and said he appreciates the. discussion and willingness to participate in this "give and take" process:', Fields concurred: • L CD/Jon Hohenstein/ftnage/MwUng NotesNeeting of 5-2-06 • 5 a3 • WINDOW SIGAGE TASK FORCE MEETING MAY 16, 2006 In attendance: Councilmembers Maguire and Fields, Jack Johnson, Dave Perrier, John Curlee, Buzz Anderson, APC Members Gladhill and Hansen, City Administrator Hedges, Community Development Director Hohenstein, City Planner Ridley, Senior. Code Enforcement Technician Mary Granley, and audience member representing Cliff Road Holiday. ➢ Mike Maguire opened the meeting by commenting that the next possible date for the Task Force to meet (if it is before a City Council meeting) would be June 6th and he would like to conclude the Task Force business today,;if at all possible. Cyndee Field suggested the following standards:. a. Window signage not to exceed 60%; and;.fall within. the 20% total wall signage allowed b. Glass doors. retain the clear zone in the 44joot area; does not pertain. to windows. c. Grandfather existing businesses and businesses that relocate. d. No permitting in a way that a letter' detailing the new:, Code would, be sent to businesses explaining the new. Code ';;and informing them if they are • grandfathered 'or not. If no response within 2 45 days, a second letter would be sent. If still no response, staff would; contact the business owner. She clarified that the grandfathering provision for' relocation would apply only to businesses forced to relocate, i.e. Cedar Grove businesses. ➢ Mike Maguire„ questioned why ;grandfathering would apply to a business that relocates. ➢ There was general discussion but no conclusion about the 60% being within the overall200/0 sign standard. ➢ Ted Gladhil[l explained;" that he didn't think grandfathering an overage in signage based on a'; move wasconsistent with earlier concerns, expressed regarding the expense of having to remove signage that currently exceeded the required amount. If a business is moving, there is no expense in that they would have to pay for new signage to be installed and at that point it should meet. Code requirements. ➢ Dave. Perrier questioned if an existing 100% coverage under this grandfathering clause would get to keep that 100% indefinitely. If the language outlined by Councilmember Fields were adopted, 'it would be. ➢ John Curlee stated that as signs change, compliance should be required. • al[ ➢Dave Perrier asked, "If a business is just touching up. an existing sign, would that • constitute a change that would require compliance?" ➢ Mike Maguire stated he thinks as long as the content remains the same, there would be no trigger to come into compliance because grandfathering applies. to the sign, not the business. He asked about the measurement of signs. ➢ Jon Hohenstein summarized the consensus points to dater a. 4-6 foot clear zone would not apply b. 60% would be the maximum c. Definition of signage appeared to, be agreed to at the la stneetinm d. Grandfathering needed some clarification, as.well`as the distance. e. Signage located within a certain distance inside., a window would be defined as a window sign. ➢ John Curlee stated he would be comfortable with an 18-36" distance. ➢ Mike. Maguire stated he preferred 36" from the `tliscussion last time where if. one could walk between the sign/display and the window, it would be considered a display.and not a sign. ➢ Cyndee Fields stated she would be comfortable with 18". ➢ Jon Hohenstein commented briefly on the issue discussed on May 2nd, display vs • signage. ➢Wes from Cliff Road Holiday commented on a particular signage issue with the Woodbury, store. ➢ Johnurlee stated 18" would; suffice for him. ➢. Mike Maguire stated, "It;sounds like 18" is the consensus". ➢ Jon Hohenstein explained the 12 -line measurement graphic produced .by Mary Granley. The,, group;''`was pleased with the Mary's graphic explanation and clarification. ➢ A question about a portion of a window signage change if that would trigger compliance. Cyndee Fields questioned if windows broken, for example during a hailstorm, would that require compliance? ➢ Jon Hohenstein stated that a typical non -conforming ordinance says that .if the non- conformity is destroyed, the non -conformity would not exist when the structure is rebuilt when the window is replaced. 2 AS- a • ➢ Dave Perrier asked whether existing sign square footage would be allowed to remain even though the signage itself was changed out over time, or weekly.. ➢ Ted Gladhill stated that he doesn't think its fair, for example, that any new liquor store coming into town would have to meet Code requirements where existing liquor stores that exceed allowable window signage would be allowed to keep that percentage in excess in perpetuity.. ➢ Mike Maguire commented that he appreciated Ted's comments, but was not concerned with the competitive advantage angle; his concern was that the City needs a code that is reasonable and reasonably enforceable. ➢ John Curlee stated he doesn't see competitive advantage as an .issue for a new business owner because they would be aware of,rules'they would; be subject to. ➢ Mike Maguire stated that a liquor store having beer signs and two neon ,;signs would constitute a sign plan and maybe those with signage over 60% would need to apply for a grandfather exemption and provide that sign plan:`" ➢ Mike Ridley suggested that a permit, whether it is.fee, driven or not, would be the most beneficial and efficient to tral.ck . signage and help determine the baseline situations. . ➢ John Curlee stated that a letter with a clear, explanation' of the Sign Ordinance would be necessary and that.`he::understood staffs desire for a permitting process from a tracking and code.�6hforcement standpoint. ➢ Ted Gladhill again commented.on his concern with the perpetuity of the grandfather clause. ➢ Mike "Maguire commented ,that with a 60% allotment, the, percentage of those exceeding that would be minimal ➢ Jon Hohenstein commented that staff would need to work with the City Attorneys to discuss issues and parameters regarding .grandfathering. > Mike order Maguire et s that at pe was in favor of an "'opt in' program for grandfathering" in to g tion. ➢ John Cudee stated he supported the approach for existing businesses to apply for an exemption for existing signage exceeding 60%. Cyndee Fields seconded that. ➢ Jack Johnson asked, "What about those businesses that may try to beat the ordinances and increase their signage prior to the 60% going into effect?" • ➢ Buzz Anderson stated that the ordinance can be pre -dated. 3 ars ➢ Mike Ridley stated that the current ordinance caps the window signage at 25% and, • while not being enforced presently, is still in effect. ➢ Ted Gladhill stated that he is still a little concerned that the 60% coverage may not be a consensus of a cross-section of the 65,000 Eagan residents. ➢ Mike Maguire stated he understood Ted's concerns, but explained that the goal of the Task Force was to get to where the group is. today, realizing there would most likely not be 100% agreement. His concern going in was, not so much the existing signs covering a high percentage of the windows, buff the possibility that others .would follow suit. He sees that the group effort is to stave'off,future businesses from attempting to cover their windows with more than 60% signage: , ➢ Mary Granley shared her concerns with the issue of enforcement and baseline window percentages in response to a question asked. ➢ Jon Hohenstein provided a'wrap-up of the meeting and suggested that staff gather the notes made and work with the City Attorney's. Office to determine allowed parameters for grandfathering and asked Task Force, business owners to consider notification methods to comprehensively get the word out;to all business owners. ➢ Mike Maguire suggested, a next meeting dateof:June 6, '2006 at 4:00 p.m. for the purposes of reviewing the City Attomey's,.: draft ordinance amendment. The group • concurred. 4 CW • • WINDOW SIGAGE TASK FORCE MEETING JUNE 6, 2006 In attendance: Councilmembers Maguire and Fields, Jack Johnson, Dave Perrier; John Curlee, APC Members Gladhill and Hansen, City Attorney Mike Dougherty, Community. Development Director Hohenstein, City Planner Ridley, and Senior Code Enforcement Technician Mary Granley. ➢ Jon Hohenstein provided a general overview of past meetings and information to bring the group up to date. ➢ . Mike Maguire stated that he was amenable to the: �60% window coverage falling within the 20% wall coverage, provided it did not.constitute a hardship. ➢. Dave Perrier asked, 'Was that just applying to each side of the building?" ➢ Mike Maguire commented in the affirmative. ➢ John Curlee said that Cyndee Fields commented at;the May 2nd meeting, that she was interested in just looking at the'wmdows and their percentages. . ➢ Mary Granley presented information, that estimated the percentage of window signage and percentage of wall signage for, Perrier Liquors, Balloon Connection, and the Hilltop PDQ. Mary's .study determined that other than the west wall of the Balloon Connection, all signage shown on:,.the three sites appeared to be at or below the 60% window sign figure and that, in combination with permanent wall signage, fell within the 20%building fdode sign signage requirement. ➢ JonHohenstein explained; the origin's' of this study . and the purpose for this information being 'provided to the group this evening. ➢ Jack Johnson commented thatbusinesses with a high window, percentage that met the 60% could potentially exceed the 20% overall wall signage requirement. ➢ Mike Maguire suggested that to keep on task, for the time being, the group should move on from"66:60%, within the 20% discussion. He stated his sense is the group could discuss, that`' portion of the issue ad nausea, but would prefer the group proceed as follo: . 1. Focus on the 60% window signage: 2.. Set aside the 20% issue for further review, or further comment by the Advisory Planning Commission (APC) and/or Council at a later date. ➢ John Curlee stated he believes 20% is a non -issue and supports the Maguire suggestion to just focus on the window percentage. so ➢ Jack Johnson commented that he would also prefer to stay with the window • discussion. ➢ Gary Hansen expressed concern if the 60% allotted window signage exceeded the 20% wall coverage, there would be a conflict with the new ordinance this group is working on and the existing ordinance and does it make sense to ignore that? ➢ Ted Gladhill stated that based on the information provided by Mary Granley, there will rarely be an issue of conflict and that that issue (60%o and 20%) should be clarified as the amendment works through the process. ➢ Mike. Maguire concurred and suggested that staff should be- prepared for. the 60/20% discussion as the process moves forward through,' -;.the APC and`Cty Council. ➢ Jon Hohenstein clarified the process as being . this Task Force making a recommendation to the City Council on proposed changes. The Council would then direct the item to Advisory Planning Commission;; who. would hold the public hearing. Their' consideration would lead to a recommendation to the Council and the City Council would take formal action on the proposal at`some point in the future. ➢ Ted Gladhill commented that based on. the, information `provided by Mary Cranley where even a high window sign user like Perrier I_ILiquor, which was assumed to be in the 60-70% range, actually falls into, he :40-45% range. He suggested that the actual figures do not line up, with the assumptions made which caused the group to arrive at a 60% window coverage standard. Ted proposed restarting with a 40-50% base which would:be based on more accurate, not anecdotal, information. ➢ Mike Maguire. said he thought #fiat was a good point, but was concerned that restarting 'the `discussion ,,to create a" lower base as the springboard, given the amount of meeting time and complexity of the issue, would be taking two steps back on a;, process that' had already �gone longer than most Task Force members ➢ John Curlee stated thaf- n the highest sign users do not offend him and believes 60% is still a good base window sign percentage to stay with. He questioned, "As business owners ;why do we need this sort of regulation to begin with and what is it that the City is trying to clean up?" ➢ Mike Maguire commented that it is important to continue to move forward and he senses the group is close to concluding its business. ➢ Cyndee Fields suggested that issues agreed upon to date could be shared with the City Council at a workshop session. • ➢ Mike Maguire suggested that 60% is okay with him from the standpoint of principal 0 and the data. is ➢ Jon Hohenstein commented on issues of permits and grandfathering ➢ Mike Maguire asked, "Is it more grandfathering or is the group looking more at an exemption?" ➢ Mike Dougherty commented that the City needs to figure out first what it is they want to accomplish, how to amass the necessary information, and determine a process to achieve the original goal. ➢ Mike Maguire commented that he believes an application for:an exemption from the standards should carry a permit and fee requirement land that whatever language is ultimately adopted should include a sunset clause. >, ➢ Dave Perrier commented that was fine with.. him, but is concerned with other businesses in town that have more permanent aignage`that may/may`not meet the proposed requirements. ➢ Mike Dougherty commented that each business must be treated in. the same way. p ➢ Jon Hohenstein commented on signs ainted :on the window vs. those that were etched into the glass or applied via an'applique. ➢ John Curlee stated that he! supported 'Mike Maguire's suggestion that if you are outside of the new parameters, an application and fee for that exemption would be appropriate. ➢ Dave Perrier stated he did' not disagree; but wondered roughly what the number of current businesses in town would be found to be over the 60% window standard. ➢ John Curlee questioned, the number of years tied to the sunset clause and Mike Dougherty stated that he; just pulled seven years out of the air in large part, but with wa an eye tord, amortization of an expense incurred by a business owner. ➢ Cyndee Fields r'. Mike' Maguire, John Curlee, and Jack Johnson all stated their support of a seven-year term. ➢ Jon Hohenstein clarified that the City Attorney and staff would draft a Window Sign Task Force Summary to provide to the City Council. REW ➢ Dave Perrier confirmed his understanding of the "next steps" for the process as • being a City Council Workshop (possibly September), APC Public Hearing and recommendation to the City Council for its consideration at a regular Council meeting and that in each case the public would be alerted to each step. ➢ Mike Maguire stated he believed the issue is ready to ship off to the legislative process and to the extent that 20% was not addressed, that subject would be discussed by the Planning Commission and/or City Council and would be incorporated at that point in time. He further stressed that while he and Councilmember Fields are supportive of the 60%, they could not guarantee that that will remain the case, even though they are moving forwaird 'in #his process supporting that percentage. Cyndee Fields concurred. ➢ Jon Hohenstein commended the group for all sof the' work and ground covered and shared his appreciation for the amount time;: the Task Force members gave to the process. ➢ Mike Maguire thanked all participants for their insight and input for a process that took longer than he anticipated but was certainly worth.the effort. ➢ John Curlee also thanked the group„and; in particular, th`e'.APC and City Council for allowing the item to be reconsidered via the Task Force process. CD/Jon Hohenstein/Signage/Meeting Notes/Meeting of 6-06-06. • 4 31 • DRAFT - 6.20.06 SEVERSON, SHELDON, DOUGHERTY & MOLENDA, P.A. TO: Jon Hohenstein, Community Development Director FROM: Sharon K. Hills, City Attorney DATE: June 20, 2006 RE: Implementation of Window Sign Regulation Amendments Our File No. 206-4768 In accordance with your request, this memorandum outlines a proposed procedure for the implementation of the proposed window sign regulation amendments. The focus of the procedures is on application of the amendments to properties that presently exceed the proposed amendment to the window sign regulations. • The proposed window sign regulation amendment, provides that a sign displayed on or in any window shall not occupy more than sixty percent (60%) of the area of the window and/or doors on the side of building on which the window "sign is displayed. The current language of the regulation provides no more than twenty-five percent (25%) of the window and/or door area. In the event that the City Council approves the proposed window sign regulation amendment, properties that currently have window signage in excess of sixty percent (60%) of the window and/or door area would not be granted "grandfathered" status. However, the amendment would provide for an "exemption" from the new regulation, subject to specific standards and conditions: 1. Any property that exceeds the 60% window/door area as of the effective date of the ordinance will be exempt from the 60% window/door area restriction, provided the. property owner/occupant completes and files an "exemption registration" with the City within 60 days of the effective date of the ordinance. If an exemption is not timely filed with the City, the 60% area regulation will apply. 2. The property, which is exempt from the 60% sign area, is prohibited from exceeding its registered window/door sign coverage. . 3. Any change in sign size or type rescinds/voids the exemption and the 605/o window/door sign area will apply. 4. Any change in business located in the subject space rescinds/voids the exemption and the 60% window/door sign area will apply. 0 DRAFT - 6.20.06 5.. Any modification to the window or door size rescinds/voids the exemption and • the 6011/o sign area will apply. 6. All properties, including those with the exemption, are required to come into compliance with the new regulations within seven (7) years of the effective date of the ordinance. The foregoing list of conditions and standards is not an exhaustive list. There may be additional standards or conditions that you think would be appropriate to rescind or otherwise void the exemption status. SKH/jlt cc: Mary Granley, Code Enforcement Technician Mike Ridley, City Planner Mike Dougherty, City Attorney • • Agenda Information Memo September 14, 2006, Eagan City Council V. -2007 PUBLIC'UTILITY ENTERPRISE FUND BUDGETS ACTION TO BE CONSIDERED: • To provide direction to staff regarding the proposed 2007 Public Utility Enterprise Fund Budget's andr to direct that it be placed on a future City Council Meeting Consent Agenda for formal ratification. Introduction The 2007 Public .Utility Enterprise Funds have been prepared in a manner consistent with the new process being implemented for the City's General Fund. They have also incorporated a review process similar to the General Fund with sensitivity shown to the financial goals of the City. User rates.Mil be reviewed in the usual process and incorporated into the City's annual fee schedule for City Council consideration. No significant changes to rates are contemplated for any of these utility'operations. Enterprise Funds are established to account for the financing of self-supporting activities of governmental units which render services to the general public on a user charge basis. Records are maintained on the accrual basis of accounting. The reports of the Enterprise Funds are similar to comparable private enterprise reports and are self-contained. Creditors, legislators, or the general public can evaluate the 'performance of the'municipal enterprise on the same basis as they can the performance of investor-owned enterprises. Revenues Enclosed on: page ,3,R 'is a copy of the Comparat' a Summary of Revenues for. all public utility enterprise funds. Enclosed on page is'a copy of the De it of Revenues forall of the utility enterprise funds'. Finally, enclosed on page is a copy of the worksheet showing the cash balances of the Storm Drainage and Water. Quality utilities, also showing the breakdown ofthe available cash into three categories: Operations, Renewal & Replacement, and Expansion & Modification. Expenditures Water 61 The City's water utility provides for the production and distribution of safe and clean .water through a series of 21 developed major wells, two treatment plants, and six reservoirs and towers. The water utility also maintains the water distribution system consisting of over 323 miles of mains and laterals. At year end 2005, the City had 19,235 connections to the water system. Excluding depreciation and debt service from the total for both years, the 2007 Water Utility Budget is proposed at $3,148,200, an overall increase of $488,000, or 18.3% from • the 2006 budget of $2,660,200. Factors contributing to that above average increase are included in the department budget narrative to follow. The bond payment including both principal and interest to retire the outstanding debt for the South Water Treatment Plant • is $863,500 and is included in the budget. Depreciation is budgeted at $1,804,200 for 2007. One additional Water Treatment/Production worker is proposed to be added to the personnel complement as a transfer from the Sanitary Sewer department. The Superintendent of Utilities position will be charged 2/3 to the Water Utility budget beginning in 2007. The City Council will recall that the corresponding reduction for that position has been made in the'General Fund. Finally, a temporary (six-month) clerical position is included in the Water department budget to assist in the conversion/upgrade of the utility, billing system. Consistent with past years, also included in the proposed budget is an allocation of $48,000 for seasonal employees to provide maintenance and technical GIS assistance. Many of the expenditures proposed in the 2007 water utility budget are related to the volume of water produced, treated and distributed (i.e., electricity, chemicals, break repairs, etc.) which is often difficult to predict with any degree of accuracy. The sale of water is proportionate to summer weather conditions, while break repairs often are the result of winter weather conditions. Capital outlay appropriations include $7,000 for a software upgrade and $57,000 for three vehicles including two replacements and one new unit. The vehicles have been included for consideration after the staffs review through the Part II CIP process. Enclosed on pages 44 1 through 'LILO is a copy of the proposed line item 2007 • budget for the Water division. Sanitary Sewer (62) The City's sanitary sewer utility provides for the transmission of sewage to the Seneca Waste Water Treatment Plant. All sewage treatment for the City is provided at that plant by the Metropolitan Council Environmental Services (MCES). The City's system consists of 274 miles of mains and laterals and 12 sanitary lift stations. At year end 2005, the City had 18,613 sanitary sewer connections to the system. Excluding the depreciation costs, the City's budget provides for costs to maintain the collection system (27.8%) and for the payments to MCES to provide for treatment (72.2%). Again excluding depreciation from the total for both years, the 2007 Sanitary Sewer Budget is proposed at $4,848,500, an overall increase of $328,100, or 7.3% from the. 2006 budget of $4,520,400. Factors contributing to the increase are included in the department budget narrative to follow. The budgeted depreciation expense included in the 2006 budget is $607,700. In general, the primary cost for the sanitary sewer utility is the MCES disposal charge, which is estimated for 2007 at $3,499,000. A potential surcharge billing of $2,110,500, paid over 5 years, imposed by MCES related to a spike in inflow and infiltration of ground water into the system is not included in this budget. Staff is working with the MCES to investigate, mitigate, and develop an appropriate course of action and funding plan for the City which will be returned to the City Council for consideration at a later date. 35_ • One utility field maintenance worker is transferred to the Water utility and the reduction is noted in the personnel complement for the Sanitary Sewer department. The Superintendent of Utilities position will be charged 1/3 to the Sanitary Sewer utility budget beginning in 2007. The City Council will recall that the corresponding reduction for that position has been made in the General. Fund. Consistent with past years, also included in the proposed budget is an allocation of $23,200'for seasonal employees to provide maintenance and technical GIS assistance. Capital outlay appropriations include $14,000 for two Gas/02monitors required by OSHA, $21,000 for a utility location vehicle, and $180,000 for replacement sewer jetting machine. The equipment has been included for consideration after the staffs review through the Part 11 CIP process. Enclosed on pages_ through is a copy of the proposed line item 2007 budget for the Sanitary Sewer division. Street Lightina (63) The City's street lighting utility provides for the operation of neighborhood, street lighting, major intersection lighting, and signals. User fees are used primarily on a pass through basis to pay energy costs to provide the lighting; however, the fees include an increasing component for the City's maintenance responsibilities related to the various types of lights. At year end 2005, 14,745 customers were being billed for 3,220 neighborhood lights provided by that system. In addition, 18,780 customers were being billed for • community lights (major intersection lighting, and signals). The Street Lighting proposed budget is increasing by $63,000 or 14.7% from $428,800 in 2006 to $491,800 in 2007, excluding depreciation in both years. Factors contributing to the above average increase are.included in the department budget narrative to follow. There are no personnel accounted for in this operating budget. However, there is a depreciation expense of $12,800 included in this budget for 2007. There is no proposed capital included in the 2007 Street Lighting budget. Enclosed on pages — through is a copy of the proposed line item 2007 budget for the Street Lighting utility. Storm Drainaae (64) The City's storm sewer system consisting of over 200 miles of pipe, 400+ inter- connected ponds, and 20 lift stations is designed to collect and transmit run-off to the Minnesota River. At year end 2005, 18,792 customers were being billed for storm drainage/water quality. Excluding depreciation the 2007 proposed Storm Drainage budget is $190,300 reflecting an increase of $41,200 or 27.6% over the 2006 budget of $149,100. Factors contributing to the above average increase are included in the department budget narrative, to follow. Four (4) years ago, the storm drainage and water quality budgets were separated for budget and accounting purposes. The storm drainage budget reflects only those costs associated with the conveyance and maintenance of the storm isdrainage system. The 2007 budgeted depreciation amount included is $960,500. �t There are no changes proposed to the current complement of personnel in the Storm • Drainage utility and there are no capital outlay requests for consideration in the operating budget. Enclosed on pages _ through loD is a copy of the proposed line item 2007 budget for the Strom Drainage division. Water Quality (65) The mission the Water Quality Department is to protect and improve the natural, esthetic, and recreational qualities of Eagan's lakes, ponds, and wetlands for the enjoyment and use by present and future residents of the City and region. Eagan has over 375 natural lakes, ponds, and wetlands larger than one acre, and over 80 percent of them are incorporated into the City's storm water system. The Water Quality budget reflects only those costs necessary to improve and maintain the highest level of water quality in various ponds and lakes. The 2007 proposed Water Quality Budget excluding depreciation is $582,700 reflecting an increase of $17,000 or 3.0% over the 2006 budget of $565,700. The 2007 budgeted depreciation amount included is $61,700. The proposed personnel complement does not change from 2006; however, the position of Water Resources Assistant approved in 2005 that has been vacant is proposed to be filled in 2007. The responsibility for the City's Water Quality function which was moved from Parks and Recreation to Public Works/Engineering as a result of the Organizational study remains in place and has been very successful. The change provides for closer • integration of the management of storm drainage and water quality efforts while still promoting the mission of natural resource protection 'and use, through coordination with the Parks and Recreation operations. Capital outlay appropriations include $900 for small equipment related to technology improvements. Enclosed on pages through i.L is a copy of the proposed line item 2007 budget for the Water Quality division. • 3-7 2007 Revenue Estimates 9220 9/8/2006 Comparative Sum of Revenues 2007 Budget • PUBLIC UTILITIES ENTERPRISE FUND Comparative Summary of Revenues Actual Actual Budget Budget 2004 2005 2006 2007 TOTAL REVENUE Service Fees: Water $3,791,646 $3,87.5,420 $3,813,400 $3,744,800 Sanitary Sewer 4,427,363 4,405,837 4,630,300 4,648,900 Street Lighting 405,593 349,182 417,800 461,000 Storm Drainage 971,338 1,007,172 1,030,500 1,068,500 Connection Permits' 18,500 . 15,561 19,000 17,000 Service Penalties 31;024 31,869 32,000 33,500 Other Operating Revenue (382,109) (234,397) 41,000 64,000 Antenna Leases 97,829 411,856 209,000 209,000 Sale of Meters 49,544 49,906 50,000. 50,000 State PERA Aid 4,442 4,442 4,400 4,400 Interest on Investments 1,093,701 1,050,326 1,066600 1,460,400 Interest - Other 68,682 67,555 62,400 65,700 Connection Charges: Water Supply & Storage 247,832 239,035 250,000 230,000 Treatment Plant 245,196 242,964 250,000 230,000 •Water Water Quality Dedication 52,253 35,646 35,000 35,000 Total Revenues 11,122,834 11,552,374 11,911,400 12,322,200 DEDICATED REVENUE . Service Fees: 1121 Water Renewal & Repl. 706,012 670,331 745,000 767,000 1122 San Sewer Renewal & Repl. 214,800 239,440 255,000 263,000 1126 Storm. Sewer Renewal & Repl. 96,118 99,585 103,000 106,000 1125 Storm Sewer Exp & Mod 192,237 199,169 206,000 212,000 1119/24 W.T.P. Debt Service 1,228,272 1,234,504 935,000 963,000 . Connection Charges: 1123 Water Supply & Storage 247,832 239,035 250,000 230,000 1124 Water Treatment Plant 245,196 242,964 250,000 230,000 Antenna Leases - ECC 97,829 411,856 209,000 266,700 Interest Earnings: 1119 W.T.P. Debt Service 184,077 92,794 25,800 0 1121,22,26 Renewal & Replacement 346,123 403,074 362,900 533,400 1125, Water Quality Exp. & Mod 36,881 49,512 45;200 68,700 . 1123 Water Supply & Storage 183,836 180,392 165,500 204,900 Water Quality Dedication Fees: 1127 Water Quality 52,253 35,646 35,000 35,000 . Total Dedicated Revenue 3,831,466 4,098,302 3,587,400 3,879,700 . REVENUE AVAILABLE FOR OPERATIONS $7,291,368. $7,454,072 $8,324,000 $8,442,500 2007 Revenue Estimates 9220 9/8/2006 Detail by Dept 2007 Budget PUBLIC UTILITIES ENTERPRISE FUND • Detail of Revenues Actual Actual Budget. Budget Acct 2004 20005 2006 2007 DEPARTMENTAL: Water 4505 Water Service Fees $3,791,646 $3,875,420 $3,813,400 3,744,800 4506 Water Service Penalties 11,637 12,020 11,800 12,000 4507 Water Connection Permits 9,700 8,311 10,000 9,000 4509 Sale of Meters 49,544 49,906 50,000 50,000 4511 Sale of Property 17 3,565 0 0 4512 Water Turn Off/On Fee 5,895 7,700 5,500 7,000 4521 Const/ Meter Permits 1,400 3,182 1,500 2,000 4522 Acct Deposit Not Refunded 1 (22) 0 0 3,869,840 3,960,082 3,892,200 3,824,800 Sanitary Sewer 4530 Sanitary Sewer Service Fees 4,427,363 4,405,837 4,630,300 4,648,900 4531 Sanitary Sewer Penalties . 11,798 13,790 13,000 14,000 4532 San Sewer Connection Permits 8,800 7,250 9,000 8,000 4,447,961 4,426,877 4,652,300 4,670,900 Street Lights 4550 Neighborhood Light Svc Fees 256,603 279,741 264,300 259,000 4551 Neighbrhd/Comm Lt Penalties 1,536 1,586 1,200 1,500 4560 Community Light Service Fees 148,990 69,441 153,500 202,000 407,129 350,768. 419,000 462,500 Storm. Drainane/Water Quality 4540 Storm Drainage Service Fees 971,338 1,007,172 1,030,500 1,068,500 4541 Storm Drainage Penalties 3,013 . 3,112 2,500 3,000 • 974,351 1,010,284 1,033,000 1,071,500 NON -DEPARTMENTAL: 4031 Assmt Penalties and Interest 3,040 2,947 3,500 3,000 4120 Permits 0 4,368 0 0 4160 State PERA Aid 4,442 4,442 4,400 4,400 4226 Developer Escrow Reimbursmt 47,608 39,273 20,000 35,000 4228 Eng / Financial Information 465 553 0 0 4230 Printed Material / Other Fees 38 9 0 0 4242 Maint Equipment and Personnel 8,697 9,491 8,000 8,000 4243 Manual Reading-Ded Bill Meters 2,562 1,956 2,000 2,000 4246 Admn Fee on SAC Coll 0 240 0 0 4376 Merchandise Sales 0 47, 0 0 4605 Amort on Bond Premium 0 3,078 0 .0 4610 Interest on Investments 1,093,701 1,050,327 1,066,600 1,460,400 4612 Interest on Assessments 65,217 64,906 60,600 . 64,800 4614 Interest on MCES 3,465 2,649 1,800 900 4615. Change in Fair Value of Inv (570,169) (375,814) 0 0 4617 Antenna Lease Admn Fees 0 4,000 0 0 4618 Site Survey / Eng Applic Review 500 500 0 0 4619 Antenna Lease Landscape Escow 0 2,000 0 0 462D Antenna Site Rent 97,829 411,856 209,000 209,000 4657 Sale of City Property 4000 0 0 0 4658. Vehicle Sales 20,075 45,105 0 0 4664 Cost Sharing Payment ' . 0 600 0 4672 Water Quality Dedication Fees 52,253 35,464 35,000 35,000 4675 Wetlands Consery Appl Fee 0 700 0 0 4680 Connection Charge -Water 247,832 239,035 250,000 230,000 4685 Conn Chg--Water Treatmt Plant 245,196 242,964 250,000 230,000 4691. Other Revenue 770 676 - 0 0 4822 Other Reimbursements 6,460 12,991 4,000 10,000 • 4980 Transfers In 89,572 0 0 0 1,423,553 .1,804, 63 1,914,900 2,292,500 GRAND TOTAL $11.122:834 $11.552.374 $11.911.400 $12.322.200 • STORM DRAINAGE (Dept 64) / WATER QUALITY (Dept 65) CASH BALANCES Combined Combined 64/65 64165 Actual Actual Budget Budget 2004 2005 2006 2007 Operations (1115 cash) Balance forward 502.648 60 .19 4Q1Q�44 61 .004 Income Escrow Reimbursement 16,273 5,170 20,000 35,000 70% Storm drain fees 682,046 707,199 723,100 750,100 Grants/Other 23.328 3.538 Q 0 721,647 715,907 743,100 785,100 Expenses Genl operations 555,935 627,047 661,800 773,000 Depreciation (non -infrastructure) 59.213 85.302 75,000 COQ Total exp 615,148 712,349 736.800 834.700 Net increase (decrease) 106,499 3.558 6.300 (49,600) Ending balance 612.704 619.004 Renewal & Replacement (1126 cash) Balance forward 363.353. 472,117 588.996 708.196 Income " 10% Storm drain fees 97,435 101,028 103,300 107,200 • Interest 12.645 17,294 15,90020.000 Total income 110,080 118.322 119.200 127.200 Expensestother Renewal/replacement 0 0 0 20,000. Adjustment/other 1.316 1.444 Q 9 Total expenses/other 1.316 1.444 0 20.000 Net increase (decrease) 10&764 116.878 -119,200 107.200 Ending balance 472.117 588.996 708.196 815.396 Expansion & Modification (1125127 cash) Baiance forward901. 4.683 1,988,105 2.291.952 2.541.052 Income 20% Storm drain fees 194,870 202,057 206,600 214,300 Cash dedications (4672) 52,253 35,464 35,000 35,000 Interest 53.333 69.213 62,500 80.000 Total income 300,456 306.73403 4.10023 9.300 Expenses Expansiontmodifiication 214,275 0 55,000 0 Adjustments/other 2.759 2.887 Q 0_ Total expenses/other 217,034 2.887 .55.000 Q Net increase (decrease) 83.422 303,847 249 23 9.300 • Ending balance Z��+2 . 2.870.3•` City Posed Of Eapo 2007 Pro et Operating Budget Budget Public Utilities — Water Department (61) • Responsible Manager: Wayne Schwanz, Superintendent of Utilities PURPOSE & DESCRIPTION The purpose of the Public Utilities — Water Department is to: • Continue operation and preventative maintenance of the sewer collection, water distribution, .and storm conveyance systems • Provide safe and clean drinking water for the City of Eagan •. Maintain the quality of the drinking water supply and test for compliance to all State and Federal requirements • Project future water needs The Public Utilities — Water Department is responsible for the following functions: • Inspect and maintain the water distribution system, including point -of- use metering • Inspect and maintain the storm water conveyance system and assist with water quality objectives • Supply and treat all potable water needed within the City including sampling, Testing and chemical treatment to assure water quality that meets or exceeds State and Federal health standards. Inspect and maintain storage facilities, wells, and pressure control stations • Respond to customer complaints • Assist other departments when needed • Respond to emergency repairs PERFORMANCE INDICATORS Description 2005 Actual 2006 Budget 2007 •. Proposed Water main breaks 7 7 7 Gallons of safe drinking water produced 3.16 billion 3.35 billion 3.45 billion MN Dept. of Health samples collected 840 840 840 Backflow preventers tested 581 600 620 Meter service calls 1,608 1,608 1,608 Customer service calls 2,293 2,293 2,293 Hydrants flushed 3,800 3,800 3,850 Hydrants painted 592 600 600 Locates performed 8,700 8,800 9,000 0 • • at0f Ba 2007 Proposed Budget Operating � �81i P g P 9 Budget Public Utilities — Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Expenditures by Category HIGHLIGHTS & CHANGES Overview: The Water Department budget'shows an increase of $488,000, or 18.3%. Three factors account for $429,700, or 16.2% of the increase: an accounting transfer of two personnel, steep increases in fuel and energy costs, and roof replacement on the Cliff Road Water Treatment Plant., Hiahilaaht/Chansae 1: The Superintendent of Utilities position was transferred from the General Fund Engineering budget (21) into Water (61) and Sewer (62) on a 2/3 - 1/3 split to better reflect the tasks/activities of this position Financial Impact: The Water Department budget in increased by $74,900, with a corresponding decrease in the General Fund Service Level Impact: This accounting change does not affect service levels Highlight/Change 2: A previously classified Utility Field Maintenance Worker (Sewer Dept) is reclassified as a Water Production Worker due to the recent expansion of the Coachman Water Treatment Plant and related wells Financial Impact: The Water Department budget is increased by $54,900, with a corresponding decrease in the Sewer Department budget Service Level Impact: This reassignment of personnel recognizes the appropriate allocation of resources needed to properly maintain our system and the required level of service delivery to our customers Hisahlisaht/Channe 3: Fuel and energy costs have risen dramatically. Gas has increased from $1.75/gallon (avg) in the 2006 budget to $2.75, a 57% increase. Electricity and Natural Gas energy costs for the well and treatment plant pumps and heating for the expanded treatment plant, administration building and equipment garage have increased both in unit price as well as projected quantities (i.e. increase in water sales). There is also an increase in unit prices and quantities of chemical used for treatment due to predicted volume increases Financial Impact: These quantity .and unit price adjustments result in an increase of $259,900 (9.8%) of the budget. Since a portion of this increase is related to increased water sales, it will be offset by comparable revenues Service Level Impact: While Eagan's water rates are currently in the bottom 25 percentile of metropolitan communities, the City has been able to continuously meet the community's peak demand for the past 18 years with the highest rating available from the Minnesota Department of Health Hisahlicaht/Chansae 4: A roof replacement for the Cliff Road Water Treatment Plant is proposed. The plant is approaching 17 years old and had a significant amount of degenerative activity on its roof during the plant's litigated rehabilitation work 10 years ago, which reduced its life as well. Financial Impact: At an estimated cost of $40,000, this represents 1.5% of the budget increase Service Level Impact: This will allow the treatment plant, to continue operations without interruption to the community's water supply Hichilaaht/Chanaae 5: A temporary (six-month) clerical position is proposed to assist in the conversion/upgrade of the Utility Billing system. All LOGIS cities are required to convert to the upgraded system. Financial Impact: This position is needed only for 2007 and accounts for $13,100 of the budget increase Service Level Impact: The system conversion will enhance customer service through improved billing and, reporting capabilities. The hiring of a temporary clerical during the conversion process will enable the City to maintain customer service levels and allow existing personnel to do the required system setup and parallel billing runs. T11 Capital Services & Outlay Other 2% Charges Merchandise 53% for Resale 3% ersonal Parts& Services Sus pplie 35% 7% HIGHLIGHTS & CHANGES Overview: The Water Department budget'shows an increase of $488,000, or 18.3%. Three factors account for $429,700, or 16.2% of the increase: an accounting transfer of two personnel, steep increases in fuel and energy costs, and roof replacement on the Cliff Road Water Treatment Plant., Hiahilaaht/Chansae 1: The Superintendent of Utilities position was transferred from the General Fund Engineering budget (21) into Water (61) and Sewer (62) on a 2/3 - 1/3 split to better reflect the tasks/activities of this position Financial Impact: The Water Department budget in increased by $74,900, with a corresponding decrease in the General Fund Service Level Impact: This accounting change does not affect service levels Highlight/Change 2: A previously classified Utility Field Maintenance Worker (Sewer Dept) is reclassified as a Water Production Worker due to the recent expansion of the Coachman Water Treatment Plant and related wells Financial Impact: The Water Department budget is increased by $54,900, with a corresponding decrease in the Sewer Department budget Service Level Impact: This reassignment of personnel recognizes the appropriate allocation of resources needed to properly maintain our system and the required level of service delivery to our customers Hisahlisaht/Channe 3: Fuel and energy costs have risen dramatically. Gas has increased from $1.75/gallon (avg) in the 2006 budget to $2.75, a 57% increase. Electricity and Natural Gas energy costs for the well and treatment plant pumps and heating for the expanded treatment plant, administration building and equipment garage have increased both in unit price as well as projected quantities (i.e. increase in water sales). There is also an increase in unit prices and quantities of chemical used for treatment due to predicted volume increases Financial Impact: These quantity .and unit price adjustments result in an increase of $259,900 (9.8%) of the budget. Since a portion of this increase is related to increased water sales, it will be offset by comparable revenues Service Level Impact: While Eagan's water rates are currently in the bottom 25 percentile of metropolitan communities, the City has been able to continuously meet the community's peak demand for the past 18 years with the highest rating available from the Minnesota Department of Health Hisahlicaht/Chansae 4: A roof replacement for the Cliff Road Water Treatment Plant is proposed. The plant is approaching 17 years old and had a significant amount of degenerative activity on its roof during the plant's litigated rehabilitation work 10 years ago, which reduced its life as well. Financial Impact: At an estimated cost of $40,000, this represents 1.5% of the budget increase Service Level Impact: This will allow the treatment plant, to continue operations without interruption to the community's water supply Hichilaaht/Chanaae 5: A temporary (six-month) clerical position is proposed to assist in the conversion/upgrade of the Utility Billing system. All LOGIS cities are required to convert to the upgraded system. Financial Impact: This position is needed only for 2007 and accounts for $13,100 of the budget increase Service Level Impact: The system conversion will enhance customer service through improved billing and, reporting capabilities. The hiring of a temporary clerical during the conversion process will enable the City to maintain customer service levels and allow existing personnel to do the required system setup and parallel billing runs. T11 City Of Ealaa 2007 Proposed Budget Operating Budget Public Utilities — Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Hichliaht/Chanae 6: When the Coachman Treatment plant was expanded, the existing treatment facility was upgraded with increased efficiency technologies. As a result, significantly less water is wasted in regenerating the filter cells. However, this has resulted in a higher concentration of sludge discharged to the sewer system for treatment at Seneca. This higher concentrate of discharge material triggered the requirements of a Metropolitan Industrial Waste Discharge Permit at an annual fee of approximately $10,000 Financial Impact: The $10,000 budget increase is more than offset by the value of groundwater conservation and the energy power costs to pump and treat the excess water previously required to backwash the filter cells Service Level Impact: The increased efficiencies in backwashing the filter cells allows the plant to meet greater supply demands on. peak production days EXPENDITURE SUMMARY Bond Payment - Principal Bond Payment - Interest Paying Agent/Bond Destrctn. Fee Debt Service Payments Depreciation Expense $ 630,000 $ 645,000 $ 680,000 $ 715,000 266,186 235,979 201,600 148,000 - 500 500 $ 896,186 ' $ 880,979 $ 882,100 $ 863,500 $1,294,033 $ 1,824,624 45 $ 1,285;000 $1,804;200 C. • • Actual Actual Budget Proposed Expenditure 2004 2005 12006 2007 Personal Services $ 622,856 $ 702,624 $ 912,600 1,096,000 Parts and Supplies 141,286 267,199 197,600 220,500 Services and Other Charges 1,444,959 1,469,693 1;430,900 1,685,200 Capital Outlay - 22,643 66,100 64,000 Construction Projects - 112,198 - - Transfer Out - 302,863 - . - Merchandise for Resale 68 - 53,000 82,500 Total $2,209,169 $ 2,877,220 $ 2,660,200 $3,148,200 Bond Payment - Principal Bond Payment - Interest Paying Agent/Bond Destrctn. Fee Debt Service Payments Depreciation Expense $ 630,000 $ 645,000 $ 680,000 $ 715,000 266,186 235,979 201,600 148,000 - 500 500 $ 896,186 ' $ 880,979 $ 882,100 $ 863,500 $1,294,033 $ 1,824,624 45 $ 1,285;000 $1,804;200 C. • • City Of Eapa 2007 Proposed Budget Operating Budget Public Utilities—. Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Superintendent 0 0 0 0.67 1,394 Water Production/Treatment Supervisor 1 1 1 1 2,080 Utility Field Operations Supervisor 0.33 0.33 0.33 0.33 693 Administrative Assistant (System Analyst) 0.67 0.67 1.67 1.67 3,467 Senior GIS Technician, 1 1 1 1 2,080 GIS Technician 1 1 1 1 2,080 Clerical V 0 1 0 0 - Utilities Inspector 1 1 1 1 2,080 System Maintenance Workers 3 3 3 3 6,240 Water Treatment/Production Workers 3 3 3 4 8,320 Total 11 12 12 13.67 28,434 2007 WORK PLAN Activity Routine " 1 Water Administration • 2 Water Field Operation/Repair 3 Erosion control 4 GIS/GPS Administration 5, Treatment Plant/Production 6 Emergency call outs • q4- City Of Eagan 2007 Proposed Budget Operating Budget Public Utilities -Water Department (6 1) Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL Actual Actual Budget Proposed Acct PERSONAL SERVICES 2004 2005 2006 2007 6110 SALARIES AND WAGES -REGULAR $ 463,958 $ 516,584 $ 639,600 $ 752,000 6112 OVERTIME -REGULAR 14,307 13,487 29,800 30,400 6130 SALARIES AND WAGES -TEMPORARY 12,371 16,631 31,200 54,900 6131 PERA COORDINATED 26,350 29,497 40,200 49,600 6142 FICA 35,427 39,843 53,600 64,100 6144 HEALTH INSURANCE 54,556 68,919 99,000 124,400 6151 LIFE 905 1,072 - - 6152 DISABILITY - LONG TERM 1,725 .2,056 - - 6154 WORKERS COMPENSATION 13,257 14535 19,200 20,600 TOTAL PERSONAL SERVICES $ 622,856 $ 702,624 $ 912,600 $ 1,096,000 PARTS & SUPPLIES 6210 OFFICE SUPPLIES $ 2,191 $ 1,332 $ 2,700 $ 2,400 6211 OFFICE PRINTED MATERIAUFORMS 8,071 120 - 200 6220 OPERATING SUPPLIES -GENERAL 1,567 1,324 2000, 2,000 6222 MEDICAURESCUEISAFETY SUPPLIES 563 390 1,000 1,000 6223 BUILDING/CLEANING SUPPLIES 2,839 1,908 2,000. 2,000 6224 CLOTHING/PERSONAL EQUIPMENT 1,988 2,309 2,100 2,900 6230 REPAIRIMAINTENANCE SUPPLIES -GENERAL - 142 - - 6231 MOBILE EQUIP REPAIR PARTS 1,844 6,053 2,700 3,600 6232 SMALL EQUIPMENT REPAIR PARTS - .36 300 300 • 6233 BUILDING REPAIR SUPPLIES 170 388 1,400 500 6235 FUEL, LUBRICANTS, ADDITIVES 12,948 15,984 15,600 22,900 6240 SMALL TOOLS 2,958 1,613 2,000 300 6244 CHEMICALS & CHEMICAL PRODUCTS 32,954 57,534 33,500 42,700 6250 LANDSCAPE MATERIAL & SUPPLIES 954 51 500 500 6255 STREET REPAIR SUPPLIES 4,806 1,973 1,500 2,000 6257 SIGNS & STRIPING MATERIAL - 272 500 300 6260 UTILITY. SYSTEM PARTSISUPPLIES 65,699 131,959 82,000 80,500 6270 COMPUTER SOFTWARE 1,734 43,811 47,800 56,400 TOTAL PARTS & SUPPLIES $ 141,286 $ .267,199 $ 197,600 $ 220,500 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES -GENERAL $ 95,890 $ 74,453 $ 18,500 $ 1000 6311 LEGAL 21 - - - 6312 ENGINEERING - - 3,000 " 6314 AUDITING 9,200 2,700 3,800 3,900 6315 FINANCIAL NON -AUDIT 2,430 1,491 - - 6323 TESTING SERVICES 4,614 5,986 5,000 5,700 6346 POSTAGE 15,236 14,225 21,600 15,600 6347 TELEPHONE SERVICE & LINE CHG 2,688 4,309 4,300 4,500 6351 PAGER SERVICE FEES 703 829 11000 800 6352 TELEPHONE CIRCUITS 1,235 1,600 1,300 1,600 6353 PERSONAL AUTO/PARKING 38 170 - - 6354 CAR WASHES 7 45 - - 6355 CELLULAR TELEPHONE SERVICE 2,390 5,290 1,900 3,500 6356 ONE CALL SERVICE FEE - - 6,400 6,400 6370 GENERAL PRINTING AND BINDING 3,272 5,494 5,000 5,800 • City of lapa 2007 Proposed Budget Operating Budget • Public Utilities - Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities • • LINE ITEM DETAIL (CONVD) CAPITAL OUTLAY 6610 LAND AND LAND IMPROVEMENTS 6670 OTHER EQUIPMENT 6680 MOBILE EQUIPMENT 6700 CONSTRUCTION PROJECTS CAPITAL OUTLAY TRANSFER OUT 6805 TRANSFER OUT TRANSFER OUT MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE MERCHANDISE FOR RESALE TOTAL WATER DEPARTMENT DEBT SERVICE 6490 BOND PAYMENT - PRINCIPAL 6491 BOND PAYMENT -INTEREST 6492 PAYING AGENT/BOND DESTRCTN FEE TOTAL DEBT SERVICE 6488 DEPRECIATION EXPENSE 22,643 112,198 $ - $ 134,841 $ 25,000 $ - 22,000 7,000 19,100 57,000 $ 66,100 $ 64,000 $ - $ 302,863 $ - $ $ - $ .302,863 $ - $ - $ 68 $ - $ 53,000 $ 82,500 $ 68 $ - $ 53,000 $ 82,500 $2,209,169 $ 2,877,220 $ 2,660,200 $ 3,148,200 18.34%' $: 630,000. $ 645,000 $ 680,000 $ 715,000 266,186 235,979 201,600 148,000 500 500 $ 896,186 $ 880,979 $ 882,100 $ 863,500 $1,294,033 $ 1,824,624 $ 1,285,000 $ 1,804,200 0 Actual Actual Budget Proposed Acct PERSONAL SERVICES 2004 2005 2006 2007 6385 INSURANCE 68,600 62,300 63,900 67,100 6409 ELECTRICITY-WELLS/BOOSTER STN 407,281 484,237 402,600 578,500 6410 NATURAL GAS SERVICE 26,967 96,660 42,000 109,400. 6425 MOBILE EQUIPMENT REPAIR LABOR 53 512 1,000 500 6427 BLDG OPERATIONS/REPAIR-LABOR - 3,243 11000 800 6429 STREET REPAIR -LABOR 31,699 7,784 55,000 7,700 6430 COMMUNICATION SYSTEM RPR -LABOR - - 2,000 - 6432 UTILITY SYSTEM REPAIR -LABOR 110,616 7,752 74;100 110,100 6457 MACHINERY & EQUIPMENT -RENTAL 895 - - - 6475 MISCELLANEOUS - 5,351 - - 6476 CONFERENCES AND SCHOOLS 1,100 5,567 4,700 8,500 6477 LOCAL MEETING EXPENSE 43 56 200 100 6479 DUES AND SUBSCRIPTIONS 2,918 300 3,900 3,600 6480 LICENSES, PERMITS AND TAXES 28,153 38,587 40,500 38,000 6483 DISPOSAL OF PROPERTY 11,950 - - - 6487 VISA/MC BANK CHARGES 930 857 1,000 - 6493 DAK CTY SA FEES 1,259 1,383 - - 6505 PUBLIC UTILITY ADMIN FEE 499,600 524,600 579,100 615,600 6506 TRANSFER FOR CENTRAL SVCS 109,300 106,900 84,400 56,900 6535 OTHER CONTRACTUAL SERVICES - - - 5,300 6539 WASTE REMOVAL/SANITATION SERV - 197 200 - 6563 LANDSCAPING 365 - - ' 6569 MAINTENANCE CONTRACTS 5,506 6,815 3,300 5,800 6575 MCES DISPOSAL CHARGES - - 200 10,900 OTHER SERVICES AND CHARGES $1,444,959 $ 1,469,693 $ 1,430,900 $ 1,685,200 CAPITAL OUTLAY 6610 LAND AND LAND IMPROVEMENTS 6670 OTHER EQUIPMENT 6680 MOBILE EQUIPMENT 6700 CONSTRUCTION PROJECTS CAPITAL OUTLAY TRANSFER OUT 6805 TRANSFER OUT TRANSFER OUT MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE MERCHANDISE FOR RESALE TOTAL WATER DEPARTMENT DEBT SERVICE 6490 BOND PAYMENT - PRINCIPAL 6491 BOND PAYMENT -INTEREST 6492 PAYING AGENT/BOND DESTRCTN FEE TOTAL DEBT SERVICE 6488 DEPRECIATION EXPENSE 22,643 112,198 $ - $ 134,841 $ 25,000 $ - 22,000 7,000 19,100 57,000 $ 66,100 $ 64,000 $ - $ 302,863 $ - $ $ - $ .302,863 $ - $ - $ 68 $ - $ 53,000 $ 82,500 $ 68 $ - $ 53,000 $ 82,500 $2,209,169 $ 2,877,220 $ 2,660,200 $ 3,148,200 18.34%' $: 630,000. $ 645,000 $ 680,000 $ 715,000 266,186 235,979 201,600 148,000 500 500 $ 896,186 $ 880,979 $ 882,100 $ 863,500 $1,294,033 $ 1,824,624 $ 1,285,000 $ 1,804,200 0 City Of Hagan 2007 Proposed Budget Operating Budget Public Utilities — Sewer. Department (62) Responsible Manager: Wayne Schwanz, Superintendent of Utilities PURPOSE & DESCRIPTION The purpose of the Public Utilities — Sewer Department is to: • Provide uninterrupted sanitary sewer collection to the City of Eagan • Meet all Federal standards in waste water management The Public Utilities — Sewer Department is responsible for the following functions: • Maintain sanitary sewer collection system including pipes, manholes, and "000�— alV000011 lift stations • Assist other departments as directed • Report to all State and Federal agencies required by law • Inspect and maintain the waste water collection system and ensure its sanitary conveyance to the Metropolitan Treatment Facility at Seneca PERFORMANCE INDICATORS Description 2005 Actual 2006 Budget 2007 Proposed Televised sewer pipe, in feet 73,000 73,000 73,000 Sewer pipe jetted, in miles 99 99 99 Sewer pipe relined, in feet 5,000 5,000 5,000 New sewer service accounts 126 115 100 47 • • City Of Ha jan 2007 Proposed Budget Operating Budget •Public Utilities — Sewer Department (62 ) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Expenditures by Category Services & Other Charges Parts & MCES Wastewater 12% Supplies. Charges `, 3% 72% Personal Services Capital 9% Outlay 4% HIGHLIGHTS & CHANGES Overview: The Sewer Utilities budget shows an increase of $328,100, or 7.3%. Factors accounting for most of the increase upgrade of the telemetry system (SCADA), and capital equipment acquisition. The accounting transfers of two personnel (one into Sewer, one out) result in a net personnel decrease in the Department. Hiahliaht/Chanae 1: The System Control and Data Acquisition (SCADA) telemetry controls necessary to coordinate, monitor, alarm and run all of the sanitary sewer lift station pumps are approaching 20 years old with replacement parts becoming increasingly hard to find. This budget proposes to implement the 1st year of a 3 -year replacement/upgrade program. Financial' Impact: Total impact in 2007 is $50,000 (5 stations at $10,000/station). A similar amount will be required in both 2008 and 2009. Service Level Impact: Timely and scheduled replacement of this critical control system will help insure a reliable and uninterrupted service delivery program for our sanitary sewer system Hiahlisaht/Chanae 2: Replacement of the location van/vehicle and the sewer jetter, considered under the Part II •CIP process, is proposed. . Financial Impact: The location van is $21,000; the jetter is $180,000. Total budget impact is $201,000. Service Level Impact: Timely replacement of equipment allows the Sewer operation to continuously meet the community's demand with a significantly higher than average reliability and very few flow interruptions while maintaining our sewer rates in the bottom 20 percentile of metropolitan communities Hlahliaht/Chanae 3: The Superintendent of Utilities position was transferred from the General Fund into Water (61) and Sewer (62) on a 2/3 - 1/3 split to better reflect the tasks/activities of this administrative/management position Financial Impact: The $36,900 increase to the Sewer Department is offset by a corresponding decrease in the General Fund Service Level Impact: This accounting change does not affect service levels 0 Hiahilaht/Change 4: A previously classified Utility Field Maintenance Worker has been moved out of the Sewer Department and into the Water Department as a Water Production Worker due to the recent expansion of the Coachman Water Treatment Plant and additional wells Financial Impact: The Sewer budget is decreased by $54,900; the Water budget is increased by the same amount Service Level Impact: This reassignment of personnel recognizes the appropriate allocation of resources needed to properly maintain both utility systems and the required level of service delivery to our customers AN 410" qry of Bao 2007 Proposed Budget Public Utilities — Sewer Department (62) Responsible Manager: Wayne Schwanz, Superintendent of Utilities EXPENDITURE SUMMARY Operating Budget Depreciation Expense $ 583,216 $ 609,874 $ 600,000 $ 607,700 POSITION INVENTORY Actual Actual Budget Proposed Expenditure 2004 2005 2006 2007 Personal Services $ 384,871 $ 424,485 $ 443,800 434,100 Parts and Supplies 56,923 79,076 86,800 135,700 Services and Other Charges 475,881 515,208 556,600 564,700 MCES Disposal Charges 2,976,810 3,253,526 3,403,300 3,499,000 Capital Outlay 1/3 6,407 29,900 215,000 Construction Projects - 44 - - Transfer Out Total - $3,894,485 6,410 - - $4,848,500 $4,520,400 $ 4,285,156 Depreciation Expense $ 583,216 $ 609,874 $ 600,000 $ 607,700 POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Superintendent 0 0 0 1/3 693 Utilities Operations Supervisor 2/3 2/3 2/3 2/3 1,387 System Maintenance Workers 5 5 5 4 8,320 Administrative Assistant (System Analyst) . 1/3 1/3 1/3 1/3 693 Total 6 6 6' 5.33 11,093 2007 WORK PLAN Activity Routine 1 Sanitary sewer administration 2 Sanitary Field Operation/Repair 3 Storm sewer field maintenance 4 Emergency call outs 1+9 • • 0 • C7 Uty Of Eapa 2007 Proposed Budget Operating Budget This page intentionally left blank. 0 Citi of Eajan 2007 Proposed Budget Operating Budget Public Utilities - Sewer Department (62) • Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL 31 Actual Actual Budget Proposed Acct PERSONAL SERVICES 2004 2005 2006 2007 6110 SALARIES AND WAGES -REGULAR $ 286,165 $ 273,652 $ 301,000 $ 289,000 6112 OVERTIME -REGULAR 6,562 15,704 9,000 13,400 6130 SALARIES AND WAGES -TEMPORARY 5,223 15,296 20,200 20,800 6131 OVERTIME -TEMPORARY 6142 PERA COORDINATED - 16,535 26 16,057 - 18,600 - 18,900 6144 FICA 22,212 22,470 25,300 24,700 6151 HEALTH INSURANCE 34,232' 36,467 48,300 48,500 6152 LIFE 591 558 - - 6154 DISABILITY- LONG TERM 1,098 1,055 - - 6155 WORKERS COMPENSATION 12,253 12,957 21,400 18,800 6157 RETIREE INSURANCE FUNDING - 30,243 - TOTAL PERSONAL SERVICES $ 384,871 $ 424,485 $ 443,800 $ . 434,100 PARTS & SUPPLIES 6210 OFFICE SUPPLIES. $ 2,211 $ 1,235 $ 3,200 $ 2,100 6211 OFFICE PRINTED MATERIAUFORMS 2,133 118 - - 6220 OPERATING SUPPLIES -GENERAL 506 841 1,000 1,000 • 6221 FILM & FILM PROCESSING 6222 MEDICAURESCUE/SAFETY SUPPLIES 17 1,255 - 901 - 1,400 - 1,000 6223 BUILDING/CLEANING SUPPLIES - 67 - 100 6224 CLOTHINGIPERSONAL EQUIPMENT 1,685 2,048 1,800 1,400 6230 REPAIR/MAINTENANCE SUPPLIES -GENERAL (78) 59 " 6231 MOBILE EQUIP REPAIR PARTS 5,459 6,855 3,100 6,500 6232 SMALL EQUIPMENT REPAIR PARTS 43 - - - 6235 FUEL, LUBRICANTS, ADDITIVES 10,614 13,194 12,300 17,500 6240 SMALL TOOLS 1,990 760, 1,500 200 6241 SHOP MATERIALS 684 74 386 874 " 1,000 1,000 6255 STREET REPAIR SUPPLIES 200 200 6257 SIGNS & STRIPING MATERIAL 1,408 - 6260 UTILITY SYSTEM PARTS/SUPPLIES 28,121. 7,190 15,060 63,500 6270 COMPUTER SOFTWARE 801 44,548 46,300 41,200 TOTAL PARTS & SUPPLIES $ 56,923 $ 79,076 $ 86,800 $ 135,700 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES -GENERAL $ 40,593 $ 10,486 $ 18,500 $ 18,600 6314 AUDITING 9,200 6,100 . 3,800 3,900 6315 FINANCIAL NON -AUDIT 2,430 1,491 - - 6346 POSTAGE 14,961 12,524 14,800 15,600 6347 TELEPHONE SERVICE & LINE CHG 2,833 3,109 - 3,000 6351 PAGER SERVICE FEES 342 371 600 300 6352 TELEPHONE CIRCUITS 1,860 1,978 2,100 2,000 6353 PERSONAL AUTO/PARKING 19 70 - ` 6354 CAR WASHES 6355 CELLULAR TELEPHONE SERVICE 46 2,421 19 2,048 - 900 - 1,800 6356 ONE CALL SERVICE FEES 11,332 11,990 6,400 6,400 6357 ADVERTISING/PUBLICATION 113 - - - 6385 INSURANCE 11,700 - 16,5700 00 183 14, - 15,400 - 6405 ELECTRICITY 31 City of Eatao 2007 Proposed Budget Operating Budget Public Utilities - Sewer Department (62) Responsible Manager: Wayne Schwanz, Superintendent of Utilities 6408 ELECTRICITY -LIFT STATIONS 6425 MOBILE EQUIPMENT REPAIR LABOR 6427 BUILDING OPERATIONSAEPAIR-LAB 6429 STREET REPAIR -LABOR 6430 COMMUNICATION SYSTEM RPR -LABOR 6432 UTILITY SYSTEM REPAIR -LABOR 6457 MACHINERY AND EQUIPMENT 6476 CONFERENCES AND SCHOOLS . 6477 LOCAL MEETING EXPENSES 6479 DUES AND SUBSCRIPTIONS 6480 LICENSES, PERMITS AND TAXES 6487 VISA/MC BANK CHARGES 6505 PUBLIC UTILITY ADMIN FEE 6506 TRANSFER FOR CENTRAL SVCS 6535 OTHER CONTRACTUAL SERVICES 6539 WASTE REMOVAUSANITATION SERVICES 6569 MAINTENANCE CONTRACTS 6575 MCES DISPOSAL CHARGES OTHER SERVICES AND CHARGES •CAPITAL OUT 6670 OTHER EQUIPMENT 6680 MOBILE EQUIPMENT 6700 CONSTRUCTION PROJECTS CAPITAL OUTLAY TRANSFER OUT 6805 TRANSFER OUT TRANSFER OUT TOTAL SEWER DEPARTMENT 6488 DEPRECIATION EXPENSE r� LINE ITEM DETAIL (CONT'D) 18,548 19,360 18,700 21,000 192 1,064 1,000 - - 2,620 - - 8,038 1,329 1,000 - 400 400 53,334 112,818 144,000 143,000 562 - 1,000 1,000 2,338 5,185 2,700 2,700 62' 49 300 - 69 22 - 211 172 100 1,000 930 857 1,000 - 237,800 249,700 275,600 293,000 54,700 53,400 42,200 28,500 _ - 5,000 5,300 80 156 - - 1,167 1,607 1,800 1,800 2,976,810 3,253,526 3,403,300 3,499,000 $3,452,691 $ 3,768,734 $ 3,959,900 $ 4,063,700 $ - $ 6,407 $ 8,000 $ 14,000 _ - 21,900 201,000 $ 6,407 $ 29,900 $ 215,000 $ _ $ - $ 6,410 $ - $ $ - $ 6,410 $ - $ - $3,894,485 $ 4,285,112 $ 4,520,400 $ 4,848,500 7.26% $ 583,216 $ 609,874 $ 600,000 $ 607,700 5a plpotBajao 2007 Proposed Budget Public Utilities Street Lighting (63) Responsible Manager: Russ Matthys, City Engineer PURPOSE & DESCRIPTION Operating Budget The purpose of the Public Utilities — Street Lighting Department is to: • Provide adequate lighting for public safety on city streets and at signalized .intersections • Ensure the electrical provisions for the traffic control signals within the City of Eagan • Coordinate the maintenance of the street lighting system for optimal performance • Administer the maintenance of the traffic control signals' operation and infrastructure The Public Utilities — Street Lighting Department is responsible for the following functions: 1- e Coordinate the installation of street lights on all streets within City jurisdiction, both private developments or public improvements • Address maintenance needs of the street lighting system & traffic control signals within the City, including light replacement, pole repair/refurbishment • Provide field surveying, preparation of feasibility studies, reports and staff support at Council meetings for public improvements for street lights • Manage the reimbursement of electrical services for street lighting and traffic signals Update Capital Improvement Program for City's street light and traffic control signals • Coordinate/present Public Hearings/Final Assessment Hearings for City improvements for street lights PERFORMANCE INDICATORS �3 0 • • 2005 2006 2007 Description Actual Budget Propos_ Number of street lights installed/upgraded 39 35 43 Number of traffic signals installed 1 1 2 �3 0 • • City 0f Balan 2007 Proposed Budget Operating Budget •Public Utilities — Street Lighting Department 63 Responsible Manager: Russ Matthys, City Engineer Expenditures by Category 'IY Services & Other Charges 100% Service Level Impact: No impact on service level HIGHLIGHTS & CHANGES Overview: The Street Lighting budget shows an increase of 14.7% due largely to continued increases in the cost of electricity, additional preventative maintenance and an above-average year for major intersection upgrades Hichliaht/Change 1: Anticipated increases in the cost of electricity due to greater cost responsibility for some traffic control signals and the installation of new street lights Financial Impact: Increase of $42,400 over 2006 budget Hiahliaht/Chanae 2: Preventive maintenance is proposed to be 11% higher. Preventive maintenance work estimates are based field surveys of City -owned street lights performed in 2006. Financial impact: Additional cost of $4,000 over the 2006 budget of $37,200 Service Level Impact: Preventive maintenance is expected to be less costly than emergency maintenance and is hoped to extend the useful life of the street lights •Hiahillaht/Chanae 3: A one-year increase in the approved Street Lights CIP improvements will increase relevant costs by 24.2% Financial Impact: Additional cost of $8,000 over the 2006 budget of $33,000. The $41,000 CIP expenditure would be the highest anticipated in the next five years, with an expected annual average of $18,000 over the next 4 -year period Service Level Impact: The proposed street light improvements will help maintain consistency of streetlighting throughout the community • Hinhllaht/Change 4: A new agreement with Dakota County Transportation Department provides on -demand service calls for City -owned traffic signals Financial Impact: Annual cost of $6,000 ($1,500 per signal) for contractual services that were inadvertently not included in 2006 budget Service Level Impact: This arrangement with the County provides a greater level of service for the City -owned traffic control signals at a reduced price compared to the previous use of commercial electricians City of Eagan 2007 Proposed Budget Operating Budget •Public Utilities -Street Lighting. Department ( 63 ) Responsible Manager: Russ Matthys, City Engineer LINE ITEM DETAIL 0 Actual Actual Budget Proposed 4c ct SERVICES & OTHER CHARGES 2004 2005 2006 2007 6315 FINANCIAL - NON -AUDIT $ 1,215 $ . 1,102 $ 2,000 $ 2,800 6406 ELECTRICITY -STREET LIGHTS 267,541 312,409 312,,600 355,000 6407 ELECTRICITY -SIGNAL LIGHTS 27,031 18,105 15,000 15,000 6411 UTILITY SYSTEM STREETLIGHT 25,112 11,937 33,000 41,000 6432 UTILITY SYSTEM REPAIR -LABOR 13,129 50,996 37,200 41,200 6505 PUBLIC UTILITY ADMIN FEE 26,400 38,000 29,000. 30,800 6535 OTHER CONTRACTUAL SERVICES 108 13,465. - 6,000 OTHER SERVICES AND CHARGES $ 360,536 $ . 446,014 $ 428,800 $ 491,800 TOTAL STREET LIGHTING DEPARTMENT $ 360,536 $ 446,014 $ 4289800 $ 491,800 14.69% 6488 DEPRECIATION EXPENSE $ 12,797 $ 12,797 $ 32,000 $ 12,800 0 • • City 0f Bajan 2007 Proposed Budget Operating Budget This, page intentionally left blank. Affi City Of Bap 2007 Proposed Budget Operating Budget Public Utilities — Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities PURPOSE & DESCRIPTION The purpose of the Public Utilities — Storm Drainage Department is to: • Maintain the City's collection and conveyance system for excess surface water runoff The Public Utilities _ Storm Drainage Department is responsible for the following functions: • Inspect and maintain drainage system consisting of pipes, ponds and pumping stations • Maintain the inlets and outlets for ponds including the removal of any erosion/siltation that restricts the flow or limits ponding capacities • Respond to emergency pumping station alarms.or resident calls during major peak events • Assist with Water Quality programs and objectives PERFORMANCE INDICATORS Description Televised storm pipes, in miles Drainage complaints received Construction inspections performed Ponds. inspected Control structures checked 2005 2006 2007 Actual Budget Proposed is 5,000 5,UUU o,uuu 22 20 18 157 160 160 136 140 140 96 100 100 • • • • 0 Citi Of Haps 2007 Proposed Budget Operating Budget Public Utilities - Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Expenditures by Category HIGHLIGHTS & CHANGES Overview: The Storm Drainage budget shows an increase of $41,200, or 27.6% over 2006. Factors accounting for this increase include a more accurate prediction of precipitation and related energy costs, and a capital improvement to dredge a storm water detention pond. Hidhliaht/Chance 1: With annual precipitation difficult to predict, a 10 -year average (1996-2005) was used to project a percentile deviation from the 2005 recorded amount and related actual costs. Rising energy costs for the pumping stations were factoredinto the cost estimates as well. Financial Impact: At an estimated increased cost of $18,200, this represents 12.2% of the budget increase Service Level Impact: There is no change proposed to the current service levels for storm water control Hiahliaht/Chanae 2: Pond AP -13.1 (Lifetime Fitness) is proposed to be dredged to restore the original ponding capacity necessary for flood control Financial Impact: At an estimated one-time increased cost of $20,000, this represents 13.4% of the budget increase Service Level Impact: Delay in the capital improvement will carry risks of localized flooding during smaller events EXPENDITURE SUMMARY Personal Services & Services Other 18.14% Charges 2005 75.75% Parts & Personal Services Supplies $ 144,736' 6.11% HIGHLIGHTS & CHANGES Overview: The Storm Drainage budget shows an increase of $41,200, or 27.6% over 2006. Factors accounting for this increase include a more accurate prediction of precipitation and related energy costs, and a capital improvement to dredge a storm water detention pond. Hidhliaht/Chance 1: With annual precipitation difficult to predict, a 10 -year average (1996-2005) was used to project a percentile deviation from the 2005 recorded amount and related actual costs. Rising energy costs for the pumping stations were factoredinto the cost estimates as well. Financial Impact: At an estimated increased cost of $18,200, this represents 12.2% of the budget increase Service Level Impact: There is no change proposed to the current service levels for storm water control Hiahliaht/Chanae 2: Pond AP -13.1 (Lifetime Fitness) is proposed to be dredged to restore the original ponding capacity necessary for flood control Financial Impact: At an estimated one-time increased cost of $20,000, this represents 13.4% of the budget increase Service Level Impact: Delay in the capital improvement will carry risks of localized flooding during smaller events EXPENDITURE SUMMARY 'go Actual Actual Budget Proposed Expenditure 2004 2005 2006 2007 Personal Services $ 112,821 $ 144,736' $ 33,000 34,500 Parts and Supplies . 13,908 12,098 11,700 11,600 Services and Other Charges 178,031 128,163 103,400 144,200 Capital Outlay - 1,275 1,000 - Construction Projects 15 2,544 - Total $ 304,775 $ 288,816 $ 149,100 $ 190,300 Depreciation Expense $ 949,481 $ 963,769 $ 950,000 $ 960,500 'go AM City Of Eapn 2007 Proposed Budget Operating Budget ' Public Utilities Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours System Maintenance Workers 0.5 0.5 0.5 0.5 1,040 Total 0.5 0.5 0.5 0.5 1,040 2007 WORK PLAN Activitv Routine 1 Inspection/clean-up of structures 2 Lift station maintenance 3 Weed harvesting 4 Water quality support 5 Aeration 6 Storm response is 0 • • • City Eajan Of 2007 Proposed Budget Operating Budget Public Utilities - Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL Actual Actual Budget Proposed Acct PERSONAL SERVICES 2004 2005 2006 2007 6110 SALARIES AND WAGES -REGULAR $ 79,958 $ 104,182 $ 23,800 6112 OVERTIME -REGULAR 1,184 1,730 1,000 1,100 6130 SALARIES AND WAGES -TEMPORARY 8,140 6,523 - - 6142 PERA-COORDINATED 4,566 5,941 1,500 1,600 6144 FICA 6,537 8,082 1,900 2,000 6151 HEALTH INSURANCE 9,054 13,815 4,100 4,500 .6152 LIFE 172 223 - - 6154 DISABILITY - LONG TERM, 313 426 - - 6155 WORKERS COMPENSATION 2,897 3,814 700 800 TOTAL PERSONAL SERVICES $ 112,821 $ 144,736 $ 33,000 $ 34,500 PARTS & SUPPLIES 6210 OFFICE SUPPLIES $ 1,185. $ 47 $ - $ 100 6211 OFFICE PRINTED.MATERIAUFORMS 2,133 - - " 6220 OPERATING SUPPLIES -GENERAL 224 9 500 500 6222 MEDICAURESCUE/SAFETY SUPPLIES 176 6 200 200 6224 CLOTHING/PERSONAL EQUIPMENT 523 356 300 300 6232 SMALL EQUIPMENT REPAIR PARTS - - 300 1100 6234 FIELD/OTHER EQUIPMENT REPAIR - - 100 100 6235 FUEL, LUBRICANTS, ADDITIVES - 10 - - 6240 SMALL TOOLS 223 - 300 300 6250 LANDSCAPE MATERIAL & SUPPLIES 108 28 - - 6255 STREET REPAIR SUPPLIES 3,007 - - 6256 SNOW REMOVAL/ICE CONTROL SUPPLIES - 40 - - 6257 SIGNS & STRIPING MATERIAL - 401 - - 6260 UTILITY SYSTEM PARTS/SUPPLIES 5,632 10,911 10,000 10,000 6270 COMPUTER SOFTWARE 697 290 TOTAL PARTS & SUPPLIES $ 13,908 $ 12,098 $ 11,700 $ 11,600 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES -GENERAL $ 8,131 $ 16,734 $ - $ - 6353 PERSONAL AUTO/PARKING - 113 - - 6385 INSURANCE 3,600 3,800 .8,100 8,500 6408 ELECTRICITY -LIFT STATIONS 61,848 81,593 64,700 82,900 6427 BUILDING OPERATIONS/REPAIR-LAB - 1,746 - - 6429 STREET REPAIR -LABOR 794 - 6432 UTILITY SYSTEM REPAIR - LABOR 28,703 - 5,000 29,900 6457 MACHINERY AND EQUIPMENT 1,207 611 5,000 1,000 6476 CONFERENCES AND SCHOOLS 496 1,674 200 200 6505 PUBLIC UTILITY ADMIN FEE 18,500 19,400 20,400 21,700 6535 OTHER CONTRACTUAL SERVICES 53,585 778 - 6539 WASTE REMOVAL/SANITATION SERVICES - 107 - 6569 MAINTENANCE CONTRACTS 1,167 1,607 - - OTHER SERVICES AND CHARGES $ 178,031 $ 128,163 $ 103,400 $ 144,200 CAPITAL OUTLAY 6630 OTHER IMPROVEMENTS 6640 MACH INERY/EQUIPMENT 6670 OTHER EQUIPMENT 6700 CONSTRUCTION PROJECTS CAPITAL OUTLAY TOTAL STORM DRAINAGE DEPARTMENT 6488 DEPRECIATION EXPENSE $ _ $ - $ 1,000 $ - 185 - 1,090 15 2,544 - $ 15 $ 3,819 $ 1,000 $ $ 304,775 $ 288,816 $ 149,100 $ 190,300 27.63% $ 949,481 $ 963,769 $ 950,000. $ 960,500 City 0f Balaa 2007 Proposed Budget Operating Budget Public Utilities - Water Quality (65) Responsible Manager: Eric Macbeth, Water Resource Coordinator PURPOSE & DESCRIPTION The purpose of the Public Utilities — Water Quality Department is to: • Protect and improve natural, aesthetic, and recreational qualities of Eagan Lakes, ponds, and wetlands for enjoyment and use by present and future resident of the City and regional community The Public Utilities — Water Quality Department is responsible for the following functions: • Direct implementation of Eagan Water Quality Management Plan • Ensure City compliance with Minnesota Wetland Conservation Act rules • Coordinate City compliance with Minnesota storm -water discharge permit and impaired water regulations • Monitor and manage water resources and other land use activities directly or indirectly affecting water resources • Educate community about land and water issues relating to water quality, lakes, and wetlands • Coordinate among city, county, state, and federal entities to protect and improve water resources PERFORMANCE INDICATORS Description Lakes, ponds monitored in long-term program Lakes, ponds aerated in winter for fisheries Loads of aquatic plants removed from lakes Lakes, ponds treated with alum Impaired-Water/TDML studies Climb Theatre performances in K-12 schools 2005 2006 Actual Budget P 18 8 148 4 ��+ 19 6 150 2. 6 2007 19. 6 150 2 6 • C7 • • • • 4P' 6ty orBaQan 2007 Proposed Budget Operating Budget Public Utilities — Water Quality Department (65) Responsible Manager: Eric Macbeth, Water Resource Coordinator HIGHLIGHTS & CHANGES Expenditures by Category Overview: The Water Quality ' budget shows an Personal overall increase. of $17,000, or 3.0%. Significant Services Parts & increases in supplies and other services and Supplies 54% aria charges are largely • offset by transferal of water quality improvement projects from the operations budget to the Public Works Capital Improvements Services & Program. This budget is a first response to recent Capita Other survey results indicating 99% of residents say water Outlay?!! charges quality of Eagan lakes and ponds is important. 0% 38% Assuming Council approval by late -2006 of the Eagan Water Quality Management Plan (Plan) update, this budget also anticipates initial increases in program operational capabilities in 2007, as likely to be recommended by the. Plan. Hinhliaht/Chanae 1: Doubling of alum chemical Financial Impact: Increase of $3,500, from $3,600 in 2006 to $7,100 in 2007. Service Level Impact: Expanded treatments to manage phosphorus inputs to lakes and ponds Hiahlistht/Chance 2: Additional landscape materials and supplies Financial Impact: One-time increase of $3,000, from $2,000 to $5,000 Service Level Impact: Development of new rock shore -fishing access areas at up to 6 lakes in City Parks Hiahliaht/Chanas 3: New data management, analysis, and presentation software program for long-term water quality data Financial Impact: One-time increase of $9,000, from $500 to $9,500 Service Level Impact: Expanded, state-of-the-art capability to manage, analyze, and present long-term water quality data Hiahlicht/Chanae 4: Nearly threefold increase in professional services consultants Financial Impact: Increase of $22,500, from $12,500 to $35,000_ Service Level Impact: Conduct required studies and technical assessments for City compliance with State storm water discharge permit and impair water regulations Highliaht/Channe 5: Nearly 50% increase in lab testing services Financial Impact: Increase of $8,000, from $17,000 to $25,000 Service Level Impact: Increased lab testing of lake.water samples for State -required TMDL (Impaired Water) studies. Hiahiiaht/Chanae 6: Nearly doubling of watershed management assessment Financial Impact: Increase of $14,200, from $16,200 to $30,400 Service Level Impact: Support GunClub Lake WMO new program initiatives: a) institute resident water resources cost -share grant program, b) conduct interagency Nicols Meadow groundwater monitoring project, c) develop goose & aquatic plant management policies d) leverage external grant opportunities, and e) sponsor University of Minnesota Extension workshops for homeowners. City of Ealad 2007 Proposed Budget Operating Budget Public Utilities - Water Quality Department (65) • Responsible Manager: Eric Macbeth, Water Resource Coordinator EXPENDITURE SUMMARY POSITION INVENTORY Personnel 2004 Actual 2006 Actual Hours Budget Proposed Expenditure 1 2004 2,080 2005 1 2006 2007 Personal Services $ 198,556 $ 205,759 $ 302,000 317,000 Parts and Supplies 0.5 32,721 0.5 25,351 1,040 29,300 44,500 Services and Other Charges 0.5 106,910 1,040 • 121,225 0.5 179,400 220,300 Capital Outlay 1,040 12,258 3 4,152 4.5 55,000 900 Total $ 350,445 $ 356,487 $ 565,700 $ 582,700 Depreciation Expense $ 59,213 $ 85,303 $ 45,000 $ 61,700 Transfer Out $. 55,777 $ - $ - $ - POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Water Resources Coordinator 1 1 1 1 2,080 Water Resources Specialist 1 1 1 1 2,080 Water Resources Assistant/Technician 0 1 1 1 2,080 System Maintenance Worker 0.5 0.5 0.5 0.5 1,040 Operations Support Specialist 0 0 0.5 0.5 1,040 • Clerical Technician 0.5 0.5 0.5 0.5 1,040 Total 3 4 4.5 4.5 9,360 2007 WORK PLAN Activity Routine 1 Administration/supervision/planning 2 Monitor & manage water resources 3 Enhance recreational fishing; assess ecological conditions 4 Special projects/research 5 Public education/involvement 6 Public relations/customer service 7 Interagency coordination/partnerships 8 Professional development/training 9 Technical fieldwork for interagency collaborative grant study of Nicols Fen area 10 Coordination for required Stormwater Pollution Prevention Plan annual report 11 Expanded monitoring/coordination for required Impaired Waters/TMDL studies • �3 Civ 0f Eap. 2007 Proposed Budget Operating Budget im • Public Utilities - Water Quality Department (65) Responsible Manager: Eric Macbeth; Water Resources Coordinator LINE ITEM DETAIL W, Actual Actual Budget Proposed Acct PERSONAL SERVICES 2004 2005 2006 2007 6110 SALARIES AND WAGES -REGULAR $ 151,612 $ 155,208 $ 234,400 $ 243,900 .6112 OVERTIME -REGULAR 305 104 - - 6130 SALARIES AND WAGES -TEMPORARY 10,333 12,010 - - 6142 PERA-COORDINATED 8,309 8,971 14,100 15,200 6144 FICA 11,463 11,502 17,900 18,700 6151 HEALTH INSURANCE 13,11.1 14,535 31,100 34,300 6152 LIFE 328 '333 - - 6154 DISABILITY - LONG TERM 610 646 - - 6155 WORKERS COMPENSATION 2,485 2,450 4,500 4,900 TOTAL PERSONAL. SERVICES $ 198,556 $ 205,759 $ 302,000 $ 317,000 PARTS & SUPPLIES 6210 OFFICE SUPPLIES $ 119 $ - $ 100 $ 100 6215 REFERENCE MATERIALS 95 145 200 200 6220 OPERATING SUPPLIES -GENERAL 1,084 634 2,000 1,500 6222 MEDICAL/RESCUE/SAFETY SUPPLIES - 19 - 160 6224 CLOTHING/PERSONAL EQUIPMENT - 25 200 200 6231 MOBILE EQUIP REPAIR PARTS 15,176 7,353 11,500 8,200 6232 SMALL EQUIPMENT REPAIR PARTS 154 - 200 .200 6234 FIELD/OTHER EQUIPMENT REPAIR 344 - 500 500 6235 FUEL, LUBRICANTS, ADDITIVES 4,473 7,479 7,400 11,300 6240 SMALL TOOLS 74 57 100 100 • 6244 CHEMICALS & CHEMICAL PRODUCTS 1,509 5,110 3,600 7,100 6250 LANDSCAPE MATERIAL & SUPPLIES 7,955 4,059. '2,000 5,000 6257 SIGNS & STRIPING MATERIAL 737 181 1,000 500 6270 COMPUTER SOFTWARE 1,001 289 500 9,500 TOTAL PARTS & SUPPLIES $ 32,721 $ 25,351 $ 29,300 $ 44,500 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES -GENERAL $ 11,379 $ 21,183 $ 12,500 $ 35,000 6312 ENGINEERING 10,671 - 10,000 5,000 . 6313 PLANNING - - 50,000 50,000 6323 TESTING SERVICES 16,595 20,419 17,000 25,000 6346 POSTAGE - 21 100 100 6353 PERSONAL AUTO/PARKING 93 5 200 100 6355 CELLULAR TELEPHONE SERVICE 161 194 300 200 6359 LEGAL NOTICE PUBLICATION - 166 200 200 6370 GENERAL PRINTING AND BINDING 5,534 2,747 3,000 500 6385 INSURANCE 2,100 2,200 4,000 4,200 6405 ELECTRICITY. 906 1,414 1,000 1,600 6426 SMALL EQUIPMENT REPAIR -LABOR - - 200 - 6457 MACHINERY AND EQUIPMENT. - - 300 100 6475 MISCELLANEOUS - 232 300 300 6476 CONFERENCES AND SCHOOLS 1,721 1,392 1,600 2,400 6477 LOCAL MEETING EXPENSES 243 198 200 200. 6479 DUES AND SUBSCRIPTIONS 215 418 200 400 6480 LICENSES, PERMITS AND TAXES 623 276 500 300 6495 WATERSHED MANAGEMENT ASSESSMNT 11,369 11,395 16,200 30,400 6505 PUBLIC UTILITY ADMIN FEE 45,300 47,600 50,000 53,200 . 6535 OTHER CONTRACTUAL SERVICES - 5,205 2,500 2,600 6860 COST SHARING PAYMENTS- 6,160 91100 8,500 • OTHER.SERVICES AND CHARGES $ 106,910 $ 121,225 $ 179,400 $ 220;300 W, �Iy 0f Eagan 2007 Proposed Budget Operating Budget Public Utilities — Water Quality Department (65) Responsible Manager: Eric Macbeth, Water Resources Coordinator LINE ITEM DETAIL (CONT'.D) Actual Actual Budget Proposed Acct CAPITAL OUTLAY 2004 2005 2006 2007 6630 OTHER IMPROVEMENTS $ $ - $ 55,000 $ - 6660 OFFICE FURNISHINGS & EQUIPMENT 2,260 .4,152 - - 6670 OTHER EQUIPMENT 9,998 - - 900 6680 MOBILE EQUIPMENT - - CAPITAL OUTLAY $ 12,258 $ 4,152 $ 55,000 $ 900 TOTAL WATER QUALITY DEPARTMENT $ 350,445 $ 356,487 $ 565,700 $ 582,700 3.01% 6488 DEPRECIATION EXPENSE $ 59,216 $ 85,303 $ 45,000 $ 61,700 6805 TRANSFER OUT $ 55,777 $ - $ - $ - •. is 0 • • Agenda Information Memo September 14, 2006 A 2007 CASCADE BAY BUDGET ACTION TO BE CONSIDERED: • To provide direction to staff on the 2007 rates, on the 2007 Cascade Bay operating budget, and to direct that the items be placed on a future City, Council Meeting Consent Agenda for formal ratification. The Cascade Bay operating budget for 2007 is presented for consideration by the City Council .at the Special meeting. Campus Facilities Manager Vaughan, Superintendent of Operations Mesko, City Administrator Hedges, Director of Parks and Recreation Johnson, Director of Administrative Services VanOverbeke, and Chief financial Officer Pepper recently met and reviewed the proposed rates, revenue estimates, and expenditure requests included in this budget. The proposed 2007 budget is balanced at $1,211,500. This is an increase of approximately 3.1% or $36,300 from the 2006 budget of $1,175,200. More detail is provided in the following sections of this memo. The.budget includes a proposed change to the admission rates for the first time since the 2003 season. A complete rate history from the openin of the facility broken down by the various categories is .provided on page The balanced budget provides for the appropriate level of renewal and replacement funds, includes an allocation for capital equipment, and annual debt service. Attendance The proposed 2007 budget is based on an estimated attendance of 134,0.00. The 2006 budget was based on an estimated. attendance of 146,000. The actual attendance for 2005 was 128,696. The following is a table displaying attendance for seven years of operation and for two: years of budget estimates for Cascade Bay. Le Cascade Bay Attendance ary 1999 .2000 1 2001 2002 2003 2004, 2005 2006 2007 Attendance Actual Actual Actual Actual Actual Actual Actual Budget Budget 63,000 GroupSales 125,865 145,902 127,463 131,013 127,063 140,000 136,800 March Sales 15,201 Season Pass 3,549 14,403. 4,000 6,100 Concessions 239,299 206,647 232,790 168,957 222,328. Admissions 77,852 64,384 66,229 55,395 48,832 28,403 38,339 50,000 41,000 Daily 10,661 16,335 22,245 19,841 20,000 22,000' Private Rental 4,473 Admissions 72,843 70,457 82,794 68,383 82,112 53,801 72,976 79, 000 74,000 Group or 6,152 1, 091 3,357 1,113 Interest 36,626 39,603 25,417 Birthday 10129 16,360, 19,08 17,81 17.576 18.288. 17,381 17,000 19,000 Total Attendance 160,824 151,201 168,109 141,592 148,520 100,4921128,696 146,000 134,000 Season Passes Sold 9,100 7,800 7,000 6,175 5,275 4,120 3,940 4,500 4,100 Rounds. of Golf n/.a ' n/a . n/a n/a n/a n/a nla 8,000 12,000 As a reminder, the facility was built based on estimated average attendance of 135,000. The average attendance over the six year period: (1999-2005) calculates to 142,566. The highest attendance year was 2001 with 168,109 guests while, the lowest year was 2004 with 100,492 reflecting the colder than average summer. Revenues The following table illustrates actual revenues for the years 2001 through 2005, the a roved bud at for 2006 and the proposed budget for 2007. Cascade Say Revenue Summa 2001 Actual 2002 2003 Actual Actual 2004 Actual 2005 Actual 2006 Budget 2007 Budget Admissions $ 742,888 $ 671,041 $ 756,162 $519,056 $ 598,185 $ 720,000 $ 712,500 After 5 m Adm 69,809 59,025 65,566 39,251 64,973 65,000 63,000 GroupSales 125,865 145,902 127,463 131,013 127,063 140,000 136,800 March Sales 15,201 2,853 4,518 3,549 14,403. 4,000 6,100 Concessions 239,299 206,647 232,790 168,957 222,328. 220,000 211,000 Vending 4,083 2,089 1,332 909 3,172 1,200 1,400 Classes & Cams 3,062 10,661 16,335 22,245 19,841 20,000 22,000' Private Rental 4,473 7,345 5,000 5,000 Miniature Golf 33,700 Other 6,152 1, 091 3,357 1,113 Interest 36,626 39,603 25,417 15,751 13,887 20,000 Total $1,236,833 $ 1,143,973 $1,228,492 $ 901,847 $1,072,310 $1,175,200 $1,211,500 Enclosed on page 2 is a copy of actual revenues for the years 2005, the budgeted revenues for 2006 and estimated revenues for 2007 with more detail for that year. The 2007 revenue estimates are based on an increase to admission rates as previously noted. The sale of golf rounds and rate increase L07 • C] • are off setting the slightly lower attendance projection to arrive at the estimated 2007 revenue of $1,211,500. Staff continues to seek ways to generate more revenue. This effort results in additional revenue from time periods where the facility would otherwise not be open. Additional information is presented later in the memo outlining both challenges and brainstorming ideas for 2007. Personnel The personnel section of the Cascade Bay budget is consistent with the presentation for the 2006 budget and continues to reflect the implementation of. the -recent organizational study. To better utilize resources and to gain efficiencies, the study recommended more consolidation of operations between the two enterprise facilities located on the Municipal Center Campus and the Community Center. The study recommended and the City Council authorized the elimination of the Cascade Bay Manager and Civic Arena Manager positions, and the creation. of the Campus Facilities Manager and the Superintendent of Operations positions. This action and.the related reallocation of support personnel between the Civic Arena and Cascade Bay are reflected in the following table for Cascade Bay and in the presentation of the Civic Arena budget. Finally, with the consolidation of the management of the two campus facilities the need for operational support is reflected in this proposed. budget, through the continuation of an additional clerical/administrative position. The new position was added in 2006 with a one year sunset provision to allow the full implementation of the new operational model and to provide for a management review of organizational needs and service delivery over the year. Staff is recommending that the position be approved on a`continuing basis beginning in 2007 to maintain the required support. services to the management of the enterprise facilities. Enclosed on page,( is a copy of the Cascade Bay personnel table. Per the earlier.City Council request the personnel table for the Civic Arena is the com lenient of the Cascade Bay personnel table and is also presented on. page. Expenditures Enclosed on pages through_ is a copy of the proposed line item. budget for 2007. Consistent with previous years, this proposed budget provides for debt service payments.. 2007 payments total $162,3009n the $1,200,000 borrowed from the housing fund and the $800,000 loan from the Community Investment Fund. The proposed budget does not allocate any funds toward eventual repayment of the $1,000,000 advanced from the Community Investment Fund. The repayment of, that $1,000,000 was set up to be a balloon payment after 20 years, subject to the availability of cash reserves. 'Amortization of that advance would require approximately $85,000 per year over the 20 year period. To date no provision has been made to raise rates or to dedicate retained earnings for this purpose. The calculated renewal and replacAnent account is funded at $64,600 for 2007. • Enclosed on pages_ and _ is a copy of the Cascade Bay Renewal and Replacement Schedule. Capital Outlay Included in the preliminary 2007 Budget' an allocation of $44,500 for capital outlay. Enclosed on pages I and are copies of the items proposed to be included in the 2007 budget. All capital is proposed to be financed from current operations as there are no items for which renewal and replacement dollars have been set aside. Revenue/Expenditure Summar Enclosed on page KCE is a copy of a high level summary of revenues, expenditures, and other disbursements from 1999 through the estimated results of the 2007 budget. The net available component of retained eamings/cash at 12-31-05 is $466,681 with $427,037 of that in the renewal and replacement account leaving a balance of $39,644. The 2005 activity and the ending balance reflect the significant cost, of the repairs and renovation to the facility that were undertaken in 2005 at a cost of approximately $379,000 net of the $175,000 settlement. While not specific to the proposed 2007 Cascade Bay budget, the following • information in bullet fashion helps provide perspective to past and future operations of the facility. 2006 Season Recap • Preliminary indications are that attendance did not meet projections so the admissions revenue will be less than projected. • The golf course projections are right on target and we hope to exceed the 10,000 round projection. • Attendance 134,637 (preliminary calculation) o 8 days with 3-4,000 attendance (June/July) o 15 days with 2-3,000 (June/July) o 35 days with 1-2,000 .o 17 days with 500-1,000 (June/August/Sept) o 15 days with < 500 attendance • Season was 90 days long • Only one day was closed all day (July 19). Several other partial days were closed for bad weather. • After 5 p.m. paid admissions were 1,016 less than in 2005 • Regular paid admissions were 2,273 less than in 2005. • Morning activities (water walking, lap swimming, water aerobics) were 733 more than in 2005 • Concessions sales exceeded 2005 but the final numbers have not been • finalized yet. • Mini dolf-2006 • 8,052 rounds of golf were sold from June 27 through August 27 for -total revenue of $24,156. Captain's Course is expected to remain open until October 22 during the evenings and weekends, weather permitting. • Original projections for 2006 anticipated 40,000 rounds (projected revenue. of $30,000) based on the course being open by June 3 when Cascade Bay opened for the year. That represents 24 days of revenue that we've not captured. Were we open on June 3 and maintained the average rounds per day we've seen this year, we would have exceeded our projections at this point. • The comments have been overwhelmingly positive with many comments focused on how the course looks like it's always been there. • There was an expectation that season pass holders would be excited to purchase punch cards to play golf but only a few have taken -advantage of this option. Now that people 'have been using the course we may see this pass holder advantage being used more. Challensres for 2007 • As Cascade Bay enters its 9t' year of operation there is'the stark realization that the attendance has plateaued and there will need to be a very concentrated effort to maintain the interest and attendance in • subsequent years. Although Captain's Course adds a new element, thought needs to be given to creative programmatic elements that will bring people into. the facility. • August is by far the largest challenge for attendance. Many people are on vacation, getting ready for the upcoming school year or just tired of going to the pool. • While there will be a strong focus between September and December to put programmatic pieces in place for Cascade Bay's 2007 season, the Superintendent of Operations and Director of Parks and Recreation are working on a 5 -year master plan for Cascade Bay, Civic Arena and ECC that will begin to address longer range planning. The plans will be shared with the City Council to solicit input and help to frame future growth, changes and budget implications and to serve as a guide for future considerations. • Growing season pass memberships will require more direct marketing to new residents, specific age groups, and educating current residents. The number of non-resident season passes continues to grow while resident passes are declining. A survey of pass holders over the past 3 years may help determine why that is changing. Brainstorming for,2007 • Some of the non-traditional ideas :that are floating about to capture larger audiences for 2007 include: `7d o. Concentrated emphasis on private rentals and special events focused toward local business. • o Hosting entertainment events (music/performances) near golf course/concessions patio. o Themed or special events designed as perks for pass holders that might also be open to the public. Movie in a tube was an example of an event that brought in 1,000 people on an otherwise quiet evening. o Define and begin an "annual' event for the community. q Look at package deals like swim/golf/dinner, etc. o Consider adult only activities or events. o Look into morning golf leagues, challenge events (neighborhoods, schools, ages, etc.), o. Partner with the library for activities and events that can benefit both facilities. o Offer August only season .passes. o Work with day caresNMCA/summer schools/home schools for specialized, classes or admissions for low -peak attendance times. o Look at other programmatic activities that might happen within the gates of Cascade Bay when there is not water in the pool; host an Easter Egg hunt, for example. o Look for other targeted age groups (like Little Mates) that would benefit from exclusive programming. • o Expand swim lessons but focus on areas not currently being met; first time older swimmers (10 -adult) or specialized interest (family lessons) Summary There is a great deal of material presented with this budget proposal to assist the City Council in its consideration of the 2007 budget. The 2007 budget as presented is balanced, continues the implementation of the results of the organizational study, provides for the appropriate level of renewal and replacement funds, includes an allocation for some capital; improvements, and the annual installment for the scheduled debt service. Staff continues to efficiently operate and to aggressively market the use of the facility to increase revenues and is making every effort to operate a successful business venture per City Council direction. The cash position is an indicator of previous success as a business. However, the competition for leisure time dollars. and customer expectations demonstrate the need to remain efficient and to remain a preferred vendor for the services provided through the Cascade Bay activities. This proposed operating budget and the proposed capital improvements assist in meeting that objective. • Casipade Bay Rate Comparison Daily Admission 1999 2000 +.50* 2001 2002 +.25 2003 +.25 2004 2005 2006 2007 proposed I +1.00 > 42" 7.00 7.50 7.50 7.75 8.60 8.00 8.00 8.00 9.00 < 42" 4.50 5.00 5.00 5.75 6.00 6.00 6.00 6.00 7.00 > 62 years 4.50 5.00 5.00 5.75 6.00 6.00 6.00 6.00 7.00 < 18 months free free free Free Free Free Free Free Free After 5 'pm Admission. > 42" 5.00 5.50 5.50 5.75 6.00 6.00 6.00 6.00 7.00 < 42 " 3.50 4.00 4.00 4.25 4.50 4.50 4.50 4.50 5.00 > 62 years 3.50 4.00 4.00 4.25 4.50 4.50 '4.50 4.50 5.00' < 18 months Free free free Free Free Free Free Free Free Resident Season Passes +3.00 +2.00 +2.00 18` member 48.00 51.00 51.00 51.00 53.00 53.00 53.00 53.00 55.00 Add'l member> 42" 38.00 41.00 41.00 41.00 43.00 43.00 43.00 43.00 45.00 Add'l member <42" 25.00 27.00 27.00 27.00 29.00 29.00 29.00 29.00 31.00 Add'l member>62 yrs. 25.00 27.00 27.00 27.00 29.00 29.00 29.00. 29.00 31.00 Add'1 member < 18 mos Free Free Free Free Free Free Free Free Free Resdent:Passes=after 5 pm +3.00 +2.00 +5.00 I" member 40.00 43.00 43.00 43.00 45.00 45.00 45.00 45.00 50.00 Rarely purchased Add'l member > 42" 30.00 33.00 33.00 33.00 35.00 35.00 35.00 35.00 40.00 Add'1 member <42" 20.00 22.00 22.00 22.00 24.00 24.00 . 24.00 24.00 30.00 Add'1 member >62 yrs. 20.00 22.00 1 22.00 22.00 24.00 24.00. 24.00 24.00 30.00 Add'l member < 18 mos Free Free Free Free Free Free. Free Free Free I Non -Resident Season Pass 1$` member n/a n/a 61.00 61.00 63.00 63.00 63.00 63.00 65.00 Add'1 member > 42" n/a n/a 51.00 51..00 53.00 53.00 53.00 53.00 55.00 Add'l member <42" n/a n/a 37.00 37.00 39.00 39.00 39.00 39.00 41.00 Add'1 member >62 yrs. n/a n/a 37.00 37.00 39.00 39.00 39.00 39.00 4.1.00 Add'1 member < 18 mos n/a n/a Free Free Free Free Free Free Free Non -Resident Pass -after 5 pip 1' member n/a n/a 53.00 53.00 55.00 55.00 55.00 55.00 60.00 Rarely purchased Add'1 member > 42" n/a n/a 43.00 43.00 45.00 45.00 45.00 45.00 50.00 Add'1 member <42" n/a n/a 32.00 32.00 34.00 34.00 34.00 34.00 40.00 Add'1 member >62 yrs. n/a n/a 32.00 32.00 34.00 34.00 34.00 34.00 40.00 Add'1 member < 18 mos n/a n/a Free . Free Free Free Free Free Free *to reflect sales tax $2.00 increase over 9 years = $.22 increase/yr or 3% annually • -7a • • • 41'111b'9ty Of BaQ 2007 Proposed Budget Operating Budget Aquatic Facility - Cascade Bay Responsible Manager.: Cherryl Mesko, Superintendent of Operations REVENUE ESTIMATES 4310 Park program revenue . Classes and camps 22,000 4312 Concession sales CB open hours (220,000) 206;000 Ext golf course hours (6,000) 5,000 4314 Merchandise sales . 200 Locks/goggles/cameras (6,000) 5,600 4315 Merchandise sales (non -tax) • ' Clothing 500 4316 Group Sales . Birthdays (10,000) 9,300 Groups (100,000) 93,500 4317 Group Sales (non -tax) 25,000 sponsorships 9,000 4318 Daily Admissions Regular-waterpark (5eo,000) 542,300 After 5 pm-waterpark(63,000) 59,200 Golf (36,000) 33,700 4321 Memberships Resident (129,000) 120,600 Non-resident (53,000) 49,600 After 5 pm-waterpark (4,000) 3,800 4322 Vending 4326 Facility rental Private rental (5500) 5,000 4327 Facility rental (non -tax) 4610 Interest income Total Revenue 2007 Budget Actual 22,000 . 211,000 136,200, 5,600 500 102,800 34,000 200 635,200 174,000 • ' 1,400 663,157 5,000 . 20,000 P 1,211,500... "73 D,000 . 136,200, <,125,800 200 5,000 773,600 .. 663,157 P 1,200 5,000 7,000[1'.! , 8,145 1.175.200 I 1 1.1 City �afi 2007 Of B8 Pro et Operating Budget Proposed Budget Aquatic Facility - Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations PURPOSE & DESCRIPTION The purpose of the Aquatic Facility is to: • • Provide a positive environment for residents and guests of all ages to gather . • Encourage and help build a sense of community through a wide range of recreational and social opportunities • Provide a high level of service accessibility and professionalism to expand revenue option to ensure the viability of this resource to the community The Aquatic Facility is responsible for the following functions: • Provide a wide variety of water -related recreational opportunities for members and non-members • Capture a high level of revenue to offset operational costs, debt repayment and expand the retained earnings capacity to accommodate future growth and expansion • Protect the City's community investment by maintaining the integrity and value of the building and its amenities • Create a welcoming atmosphere and solicit input from users to best determine how to meet existing needs and identify future growth opportunities • On-going analysis of existing operation and research to find ways to expand the recreational opportunities beyond the three-month pool season in order to maximize the capital investment PERFORMANCE INDICATORS Description 2005 Actual 2006 Budget 2007 Proposed Season passes sold 3,940 4,500 4,100 Total attendance 128,696 146,000 134,000 Group admissions 17,381 17,000 19,000 88 + golf Days facility is open 89 88 pre/post season Rounds of golf N/A 8,000 12,000 Private rentals 4 6 8 -W. .7 r� • • • 0 410, agofBalae 2007 Proposed Budget Operating Budget Aquatic Facility —. Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations. HIGHLIGHTS & CHANGES Overview: The 2007 budget reflects only inflationary increases in expenses over the 2006 budget. The budget is up $36,300, or 3.1 %. Hiahlight/Chanae 1: The Administrative Coordinator, currently . a temporary position, is proposed to be added to regular staff. ,With the consolidation of the Civic Arena and Cascade Bay under one manager, there was a need identified to help with the day-to-day operation of both facilities. The administrative position began in late -2005, and as it has evolved, there has been a demonstrated need, for this position to continue. This position is going to be even more vital to the Campus Facilities Manager as the two facilities look at overall staffing and workload and move to a new model to more efficiently use existing staff. This operation will mirror positions at ECC to reach a level of operating consistency and to allow cross - divisional use of staff when needed. Financial Impact: Because it was budgeted as a temporary position in 2006, there is essentially no dollar impact for the 2007 budget. The .67 FTE position will add $35,800 to the Cascade Bay regular personnel budget (.33 FTE, or $17,900, is added to the Civic Arena's regular personnel budget as well) Service Level Impact: This position provides the level of professional support needed to assist the Campus Facilities Manager and allow him to spend his time with higher priority management tasks and long-range planning EXPENDITURE SUMMARY Expenditures by Category Actual Personal Parts & Reserve for s Supplies R&R 2006 7% 6% $ 440,574 $ 518,684 $ 539,700 563,900 Services & Debt Service 67,903 Other 14% Services and Other Charges Charges .241,943 Merchandise Capital 16% Capital Outlay for Resale Outlay 2,072 45,600 6% 4% Merchandise for Resale HIGHLIGHTS & CHANGES Overview: The 2007 budget reflects only inflationary increases in expenses over the 2006 budget. The budget is up $36,300, or 3.1 %. Hiahlight/Chanae 1: The Administrative Coordinator, currently . a temporary position, is proposed to be added to regular staff. ,With the consolidation of the Civic Arena and Cascade Bay under one manager, there was a need identified to help with the day-to-day operation of both facilities. The administrative position began in late -2005, and as it has evolved, there has been a demonstrated need, for this position to continue. This position is going to be even more vital to the Campus Facilities Manager as the two facilities look at overall staffing and workload and move to a new model to more efficiently use existing staff. This operation will mirror positions at ECC to reach a level of operating consistency and to allow cross - divisional use of staff when needed. Financial Impact: Because it was budgeted as a temporary position in 2006, there is essentially no dollar impact for the 2007 budget. The .67 FTE position will add $35,800 to the Cascade Bay regular personnel budget (.33 FTE, or $17,900, is added to the Civic Arena's regular personnel budget as well) Service Level Impact: This position provides the level of professional support needed to assist the Campus Facilities Manager and allow him to spend his time with higher priority management tasks and long-range planning EXPENDITURE SUMMARY `P9 Actual Actual Budget Proposed Expenditure 2004 2005 2006 2007 Personal Services $ 440,574 $ 518,684 $ 539,700 563,900 Parts and Supplies 53,808 67,903 69,500 89,400 Services and Other Charges 198,698 .241,943 182,300 195,700 Capital Outlay 36,686 2,072 45,600 44,500 Merchandise for Resale 88,024 114,700 112,000 91,100 Debt Service 159,015 160,415 161,500 162,300 Reserve for Renewal & Replacement - - 64,600 64,600 Total $ .976,805 $1,105,717 $1,175,200. $1,211,500 `P9 Ct of Eapo 2007 Proposed Budget Operating Budget Aquatic Facility - Cascade Bay • Responsible Manager: Cherryl Mesko, Superintendent of Operations CASCADE BAY POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Aquatic Facilities Manager 1 1 0 0 - Campus Facilities Manager 0 0 0.33 0.33 686 Maintenance Worker (2 @ .5 hrs.) 1 1 1. 1 2,080 Maintenance Worker (1 @ .33 hrs.) 0 0 0.33, 0.33 686 Clerical Technician 0.4 0.4 0.4 0.4 832 Administrative Coordinator 0 0 0.67 0.67. 1,394 TOTAL 2.4 2.4 2.73 2.73 5,678 2007 WORK PLAN Activi Routine 1 Respond to public comments or requests via phone or in person 2 Daily mainenance and cleaning of building and pool 3 Manage the building infrastructure to ensure efficient, safe and clean environment 4 Develop promotional materials for seasonal facility 5 Recruit, hire, train and supervise temporary and part time employees 6 Provide work direction to ensure high level of customer service is maintained 7 Develop long range plans and strategies for expanded service 8 Manage staff scheduling and training to meet the demands of the building Cascade Bay and the Civic Arena share a number of staff. The Civic Arena staff complement is shown below: CIVIC ARENA POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Civic Arena Manager 1 1 0 0 - Campus Facilities Manager 0 0 0.67 0.67 1,394 Building Supervisor 1 1 0 0 - Skating School Coordinator 0.75 1 1 1 2,080 Maintenance Worker (2 @ .5) 1 1 1 1 2,080 Operations/Maintenance Worker 0 0 0.67 0.67 1,394 Clerical Technician 0.2 0.2 0.2 0.2 416 Administrative Coordinator 0 0 0.33 0.33 686 Total 3.95 4.2 3.87 3.87 8,050 • • City Of Ealan 2007 Proposed Budget Operating Budget This page intentionally left blank. '7% I— 94 Of Faun 2007 Proposed Budget Operating Budget p g Aquatic Facility - Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations LINE ITEM DETAIL Acct PERSONAL SERVICES Actual 2004 Actual 2005 Budget 2006 Proposed 2007 6110 SALARIES AND WAGES -REGULAR 74,735 88,495 122,400 $ 130,500 6112 OVERTIME -REGULAR - - 1,000 1,000 6130 SALARIES AND WAGES -TEMPORARY 312,893 367,081 340,000 350,000 6131 OVERTIME -TEMPORARY 13 17 - - 6142 PERA-COORDINATED 4,007 5,159 6,800 8,200 6144 FICA 29,209 33,673 35,500 36,800 6151 HEALTH INSURANCE 9,792 11,862 22,400 24,800 6152 LIFE INSURANCE 162 1.72 33 43 6154 DISABILITY- LONG TERM 202 257 300 - 6155 WORKERS COMPENSATION 9,561 11,968 11,600 12,600 500 TOTAL PERSONAL SERVICES $ 440,574 $ 518,684 $ 539,700 $ 563,900 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 6211 OFFICE PRINTED MATERIAUFORMS 6212 OFFICE SMALL EQUIPMENT 6215 REFERENCE MATERIALS 6220 OPERATING SUPPLIES -GENERAL 6222 MEDICAURESCUE/SAFETY SUPPLIES 6223 BUILDING/CLEANING SUPPLIES 6224 CLOTHING/PERSONAL EQUIPMENT 6230 REPAIR/MAINTENANCE SUPP-GENL 6231 MOBILE EQUIPMENT REPAIR PARTS 6232 SMALL EQUIPMENT REPAIR PARTS 6233 BUILDING REPAIR SUPPLIES 6236 POOL REPAIR SUPPLIES 6240 SMALL TOOLS 6243 HEATING OIL, PROPANE AND OTHER FUELS 6244 CHEMICALS & CHEMICAL PRODUCTS 6250 LANDSCAPE MATERIAL & SUPPLIES 6257 SIGNS & STRIPING MATERIALS 6270 COMPUTER SOFTWARE TOTAL PARTS &SUPPLIES SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES 6311 LEGAL 6312 ENGINEERING 6314 AUDITING 6319 MEDICAL SERVICES --OTHER 6320 INSTRUCTORS 6346 POSTAGE 6347 TELEPHONE SERVICE & LINE CHG 6348 MATRIX SERVICE AND REPAIR 6351 PAGER SERVICE FEES 6353 PERSONAL AUTO/PARKING 6355 CELLULAR TELEPHONE SERVICE 6357 ADVERTISING/PUBLICITY/PROMOTION . 6358 EMPLOYMENT ADVERTISING 6359 LEGAL NOTICE PUBLICATION 6370 GENERAL PRINTING AND'BINDING 6385 INSURANCE 6405 ELECTRICITY $ 271 745 40 7 11,296 457 4;308 4,984 3,054 7 663 349 10,296 285 15,466 $ 510 $ 462 16,355 3,069 5,082 12,091 3,079 256 2,262 1,200 3,218 18,194 500 2,000 100 300 13,000 3,500 4,500 5,000 4,500 1,000 1,000 1,000 500 100 30,000 $ 700 2,000 100 300 15,000 3,500 5,000 15,000 4,000 100 2,000 1,200 5,000 500 1,000 30,000 r � L J 721 - - - 859 2,125 2,000 3,000 - - 500 1,000 $ 53,808 $ 67,903 $ 69,500 $ 89,400 $ 28,491 $ 48,406 $ 5,000 $ 7,500 7,234 32,220 - - 9,202 959 - - 800 600 900 1,400 - - 100 100. - - 500 1,000 827 2,20 4 2,000 2,500, 1,350 2,347 1,500 2,000 - - 500 500 33 43 200 200 - 27 300 300 689 2,098 6,000 8,000 - - 500 500 - 129 - 100 182 1,165 5,000 5,000 30,100 - 22,600 - 23,700 - 24,900 • 30,324 32,706 40,000 35,000 -79 .400'My of Bain 2007 Proposed Budget Operating Budget • Aquatic Facility- Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations LINE ITEM DETAIL (CONVD) Acct PERSONAL SERVICES Actual 2004 Actual 2005 Budget 2006 Proposed 2007 6410 NATURAL GAS SERVICE 47,436 58,188 50,000 55,000 6424 POOL REPAIR/ LABOR 10,384 4,738 5,000 7,000 6426 SMALL EQUIPMENT REPAIR LABOR 845 1,561 1,000 1,500 6427 BUILDING OPERATIONS REPAIR LABOR 1,699 1,269 2,000 1,500 6428 FIELD/OTHER EQUIPMENT REPAIR 480 170 - 200 6475 MISCELLANEOUS - 125 - 200 6476 CONFERENCES AND SCHOOLS 877 2,321 2,600 3,100 6477 LOCAL MEETING EXPENSES 33 70 200 200 6479 DUES AND SUBSCRIPTIONS 315 75 300 500 6480 LICENSES, PERMITS AND TAXES 590 575 1,000 1,500 6483 DISPOSAL OF PROPERTY 3,052 - - 6487 VISA/MC BANK CHARGES 7,537 9,718 8,000 10,000 6535 OTHER CONTRACTUAL SERVICES 9,242 6,631 10,000 10,000 6539 WASTE REMOVAL/SANITATION SERV 1,753 2,150 3,000 3,000 6563 LANDSCAPING 5,223 2,985 7,000 6,000 6569 MAINTENANCE CONTRACTS - 5,863 6,000 7,000 OTHER SERVICES AND CHARGES $ 198,698 $ 241,943 $ 182,300 $ 195,700 CAPITAL OUTLAY 6630 OTHER IMPROVEMENTS 6640 OFFICE FURNISHINGS AND EQUIPMENT • 6670 OTHER EQUIPMENT CAPITAL OUTLAY MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE MERCHANDISE FOR RESALE PRINCIPAL INTEREST TOTAL DEBT SERVICE RESERVE FOR RENEWAL & REPLACEMENT TOTAL AQUATIC FACILITY • $ 10,189 $ 372 $ 34,500 $ 39,500 8,929 1,700 2,500 - 17,568 - 8,600 5,000 $ 36,686 $ 2,072 $ 45,600 $ 44,500 $ 88,024 $ 114,700 $ 112,000. $ 91,100 $ 88,024 $ 114,700 $ 112,000 $ 91,100 $ 75,000 $ 80,000 $ 85,000 $ 90,000 84,015 80,415 76,500 72,300 $ 159,015 $ 160,415 $ 161,500 $ 162,300 -74 64,600 64,600 $ 976,805 $ 1,105,717 $ 1,175,200 $ 1,211,500 3.09% City Of Eapn 2007 Proposed Budget Operating Budget P g • • • i"m G:1Capital Renewal & Replacement\Cascade Bay R&R schedule Cascade Bay R&R schedule • Cascade Bay .Renewal And Replacement Schedule • C, Item Year Purchased Life Cycle Cost Annual Maturity Date Ice Machine 1999 10 $ 3,239 $ 324 2009 Perfect Fry #1 2004 5 4,150 830 2009 #2 2000 5 4,150 830 2005 #3 2001 5 5,000 1,000 2006 Turnstiles #1 1999 20 11,500 575 2019 #2 1999 20 = 2019 ' #3 2002 20 2,222 111 2022 HVAC system admin 1999 20 14,000 700 2019 Sand Play Area . Mermaid Fountain 1999 6 3,600 600 2005 Waterfall Waterplay 1999 6 4,700 783 2005 Kom an Sand Table 1999 6 700 117 2005 Guard Chairs #1 1999 10 900 90 2009 #2 1999 10 900 90 2009 #3 2001 10 1,360 136 2011 #4 2001 10 1,360 136 2011 AlrConditionin conc. 2000 20 20,000 1,000 2020 Roofing 3 buildings) 1999 20 6,000 300. 2019 Shed 2002 20 2,500 125 2022 Funbrellas 0 #1 1999 10 2,257 226 .. 2009 #2 1999 10 2,257 226 2009 #3 1999 10 2,257 226 2009 #4 1999 10 2,257 226 2009 #5 1999 10 2,257 226 2009 #6 1999 10 2,257 226 2009 #7 1999 10 2,257 226 2009 #8 1999 10 2,257 226 2009 #9 1999 10 2,257 226 2009 #10 1999 10 2,257 226 2009 #11 1999 10 2,257, 226 2009- #12(Birthday Party Area 2001 10 2,304 230 2011 Sun Port 2002 10 4,275 428 2012 Walk In Refrigerator 1999 20 6,993 350 2019 Walk in Freezer 1999 20 4,017 201 2019 2 door freezer 1999 12 2,604 217 2011 2 door refrigerator 1999 12 2,029 169 2011 Refrigerator Dis lay 1999 12 3,809 317 2011 Sandwich/nacho display 1999 7 1,021 146 2006 Mobile Heated Cabinet 1999 10 3,307 331 2009 Undercounter heated cabinet 1999 .10 2,498 250 2009 Cash Registers 5 - #1 1999 5 2004 #2 1999" 5 - 2004 #3 1999 5 - 2004 #4 1999 5 - 2004 Dynarntlon Monitor air tester 1999 10 1,760 176 2009 HVAC Equipment. 1999 20 4,000 200 2019 Gas Hot Water Heater 1999 20 4,000 200 2019 Video Security System 2002 10 9,625 963 2012 Suitmates 2 1999 5 2,500 500 2004 PA System 1999 10 5,000, 500 2009 Water Flume/Wood $ Steel 1999 1 10 1 73,8481 7,385 2009 2 PA 9/8/2006 G:\Capital Renewal & Replacement\Cascade Bay R&R schedule Cascade Bay R&R schedule Cascade Bay Renewal And Replacement Schedule Item Year Purchased Life Cycle Cost Annual Maturity Date Water Flume/Fiberglass 1999 20 145,000 7,250 2019 Water Flume/Install 1999 20 80,000 4,000 2019 Ship Slide 1999 15 20,800 1,387 2014 Starburst 1999 15 20,500 1,367 2014 Tumblebuckets 1999 15 .8,000 533 2014 Deck Chairs Econo 50 $66.00 1999 10 3,300 330 2009 Lounge 200 $156.75 1999 10 31,350 3,135 2009 Econo 40 $66.00 2001 10 2,640 264 2011 Lounge 10 $156.75 2001 10 1,568 157 2011 Econo 50 $66.00 2002 10 3,300 330 2012 Lounge 40 $160.00 2004 10 6,400 640 2014 Concession Patio Furniture Ladderback Chair 150 $99.23 1999 15 14,885 992 2014 31" Cafe Table (28),$153.08 1999 15 4,286 286 2014 31 "Bar height table (12)$163.79 1999 15 1,966 131 2014 46"45" oval dining table (2)$553.08, 1999 15 1,106 74 2014 Turbines #1 1999 20 13,333 667 2019 #2 1999 20 1.3,333 667 2019 #3 1999 20 13,333 667 2019 #4 1999 20 13,333 667 2019 #5 1999 20 13,333 667 2019 #6 1999 20 13,333 667 2019 Boilers #1 1999 20 17,500 875 2019 #2 1999 20 17,500 875 2019 #3 1999 20 17,500 875 2019 #4 1999 20 17,500 875 2019 Pumps #1 1999 20 3,950 198 2019 #2 1999 20 3,950 198 2019 #3 1999 20 3,950 198 2019 #4 .1999 20 3,950 198 2019 Filters #1 1999 - 20 25,000 1,250 2019 #2 1999 20 25,000 1,250 2019 Pulsar Chemical Equipment 2002 7 8,000 1,168 2009 Room Heaters 1999 20 3,800 190 2019 Stranco Controllers #1 1999 15 3,000 200 2014 #2 1999 15 3,000 200 2014 Irrigation Control System 1999 15 20,000 1,333 2014 LMI Pum s #1 1999 5 1,200 240 2004 #2 1999 5 1,200 240 2004 #3 1999 5 1,200 240 2004 #4 1999 5 1,200 240 2004 #5 1999 5 1,200 240 2004 #6 1999 .5 1,200 240 2004 Flooring 2002 20 20,000 1,000 2022 Phone System 2001 7 .21,000 3,000 2008 Walkle Talkies 2004 5 6,000 1,200 2009 Walk Behind Lawn Mower 2004 8 3,000 375 2012 Total I $ 900,597 $ 64,563 9/8/2006 0 • CITY OF EAGAN JUSTIFICATION OF CAPITAL OUTLAYS REQUESTS Department Cascade Bay Dept. No. 222 2. Give Description and Quantity of Item Requested. Indicate Date Desired. Upgrade front entrance to capture data and expedite guests. May 1, 2007 Account No. 6630 I Describe the -necessity for.and/or benefits or savings expected from this item • Tracking daily and season pass guests is currently handled through a turnstile and is dependent upon seasonal staff to ensure that people are entering and exiting in the right location, that the counter is reset at the appropriate times and that the information is logged on a. daily basis. The POS system serves as an efficient cross-check for daily admissions but can be labor intensive. • The photo id cards set up for season passes have always had the capability to scan visits to the park; much like the fitness membership scanning system at ECC. The option has never been implemented due to the inaccessibility of scanning equipment needed to connect to the network. The ability to allow for this level of interconnectivity will require significant changes to the front entrance. • Providing for this level of tracking will help in recovering data and trends and can help to monitor things as simple as season pass use and peak/low attendance times for future marketing. This will also provide a higher level of cross referencing options and is planned to provide a more efficient use of space to minimize staff redundancy and get guests into the facility as quickly as possible. 4. If the item requires ian increase in personal services for the activity, state the new job title(s) contingent upon the item. 5. Indicate any expenses necessary to place this item in operation and whether these expenses are included in your budget request. Will require a coordinated effort with IT to determine viable options that might be considered for implementation. 6. List any item which will be replaced by this purchase. State recommendations for disposition of this item. For example, trade-in, salvage, discard, etc. ESTIMATED COSTS Quantity Unit Cost Total Cost Trade -In Net Total Cost 1 $39,500 $39,500 $ $39,500 WZM CITY OF EAGAN JUSTIFICATION OF CAPITAL OUTLAYS REQUESTS Department Cascade Bay Dept. No. 222 2. Give Description and Quantity of Item Requested. Indicate Date Desired. Security Cameras and Web cameras Spring 2007. Account No. 6670 3. Describe the necessity for and/or benefits or savings expected from this item • The security cameras provide a level of operational security and accountability. There is an increasing need to more broadly monitor the security of the site by installing additional cameras in the park. This has provided a higher degree of comfort given the number of patrons in the park and the amount of money that passes through on a daily basis. • The addition of a second web camera will provide more information to the public, particularly on busy days, when they call to inquire if the park is at capacity. The web site is quickly becoming the first stop for information and the ability to view the park in real time provides a higher level of service and response to potential visitors. 4. If the item requires an increase in personal services for the activity, state the new job title(s) contingent upon the item. 5. Indicate any expenses necessary to place this item in operation and whether these expenses are included in your budget request. 6. List any item which will be replaced by this purchase. State recommendations for disposition of this item. For example, trade-in, salvage, discard, etc. RNTYMATF.n rn.14TS Quantity Unit Cost Total Cost Trade -In Net Total Cost 2 $2500 $5,000 $ $5,000 • 8y 6 -Sep -O6 Aquatic Facility Enterprise Fund REVENUES, EXPENSES AND OTHER DISBURSEMENTS Non -Operating Disbursements Transfer Out 73,224 Other 26,779 9,869 Debt Service Payments 139,072 164,044 158,370 160,504 162,341 158,882 160,202 161,500 162,300 Total Exp & Non-Oper Disbur $ 992,885 $ 1,069,113 $ 1,097,446 $ 1,007,395 $ 1,031,756 $ 1,038,217 $ 1,468,369 $ 1,175,200 $ 1,211,500 Total Revenues Minus Total Disburse $ (4,476). $ 79,669 $ 139,387 $ -136,578 $ 196,736 $ (136,370) $ (396,058) $ $ - Reconciliation to Financial Statement •:sus::#• �• Cumulative Total Revenues -Total Disburse :_;$F.:;:;:::::+;,.:.;:::�?i•:..:::::•:.�:. Add R & R Payment 50,000 50,000 50,000 64,000 67,000 64,600 64,600 Add Principal Payment 85,000 65,000 65,000 70,000 75,000 75,000 80,000 Approx Cash $ 466,681 Subtract Depreciation (307,859) (313,331) (319,970) (323,996) (343,392) (279,011) (281,075) R & R Balance 427,037 Net Income (Loss) Per Statement $ (177,335) $ (118,662) $ (65,583) $ (53,418)$ (4,656) $ (275,781) $ (532,533) Net $ 39,644 1999 2000 2001 - 2002 2003 2004 2006 2006 2007 Revenues Actual Actual Actual Actual Actual Actual Actual Budget Budget Daily Admissions/SeasonPass $ 725,425 $ 774,108 $ 811,986 $ 724,713 $ 812,550 $ 558,307 $ 663,158 $ 785,000 $ 809,200 Group Sales 73,838 106,989. 124,510 145,903 127,463 131,013 127,063 140,000 136,800 Concessions 174,400 219,185 240,212 -208,734 236,301 168,957 222,328 220,000 211,000 Classes/Camps 3,062 10,597 9,460 22,245 19,841 20,000 22,000 Merchandise 2,159 2,410 15,020 2,854 4,520 3,549 14,403 4,000 6,100 Private Rental 8,456 4,473 7,345 5,000 5,000 Coca-Cola Marketing/Vending 5,417 8,031 5,417 5,417 5,416 909. 3,172 1,200 1,400 Total Operating Revenues $ 981,239 $ 1,110,723 $ 1,200,207 $ 1,098,218 $ 1,204,166 $. 889,453 $ 1,057,310 $ 1,175,200 $ 1,191,500 Non -Operating Revenues Other 8,342 (1,091) (3,357) 1,113 Interest 7,170 29,717 36,626 39,603 25,417 15,751 13,687 20,000 Transfers In 6,152 Total Oper & Non-Oper Revenues $ 988,409 $ 1,148,782 $ 1,236,833 $ 1,143,973 $ 1,228,492 $ 901,847 $ 1,072,310 $ 1,175,200 $ 1,211,500 Expenses Personal Services $ 515,059 $ 517,474 $ 483,670 $ 454,628 $ 484,185 $ 440,573 $ 518,685 $ 539,700 $ 563,900 Parts & Supplies 81,246 79,273 65,442 .52,032 64,492 53,808 366,166 69,500. 89,400 Cost of Merchandise Sales 109,540 97,772 135,243 104,366 120,884 _ 88,024 114,700 112,000 91,100 �-y� Services & Other Charges 97,968 160,550 177,942 88,772 132,854 232,330 244,016 182,300 195,700 vv Capital Outlay 45,600 44,500 (1 �.J Total Operating Expenses $ 803,813 $ 855,069 $ 862,297 $ 699,798 $ 802,415 $ 814,735 $ 1,243,567 $ 949,100 $ 984,600 Reserve for Renewal/Replacement 50,000 50,000 50,000 64,000 67,000 64,600 64,600 64,600 64,600 Total City Operating Expenses •- $ 853,813 $ 905,069 $ 912,297 $ 763,798 $ 869,415 $ 879,335 $ 1,308,167 $ 1,013,700 $ 1,049200 Non -Operating Disbursements Transfer Out 73,224 Other 26,779 9,869 Debt Service Payments 139,072 164,044 158,370 160,504 162,341 158,882 160,202 161,500 162,300 Total Exp & Non-Oper Disbur $ 992,885 $ 1,069,113 $ 1,097,446 $ 1,007,395 $ 1,031,756 $ 1,038,217 $ 1,468,369 $ 1,175,200 $ 1,211,500 Total Revenues Minus Total Disburse $ (4,476). $ 79,669 $ 139,387 $ -136,578 $ 196,736 $ (136,370) $ (396,058) $ $ - Reconciliation to Financial Statement •:sus::#• �• Cumulative Total Revenues -Total Disburse :_;$F.:;:;:::::+;,.:.;:::�?i•:..:::::•:.�:. Add R & R Payment 50,000 50,000 50,000 64,000 67,000 64,600 64,600 Add Principal Payment 85,000 65,000 65,000 70,000 75,000 75,000 80,000 Approx Cash $ 466,681 Subtract Depreciation (307,859) (313,331) (319,970) (323,996) (343,392) (279,011) (281,075) R & R Balance 427,037 Net Income (Loss) Per Statement $ (177,335) $ (118,662) $ (65,583) $ (53,418)$ (4,656) $ (275,781) $ (532,533) Net $ 39,644 • 0 • Agenda Information Memo September 14, 2006, Eagan City Council VII. 2007 EAGAN COMMUNITY CENTER BUDGET ACTION TO BE CONSIDERED: • To provide direction to staff on the 2006 Community Center operating .budget, and to direct that it be placed on a future City Council Meeting Consent Agenda for formal ratification. • To approve or direct to the September 25, 2006 regular City Council. Meeting action to authorize implementation of the proposed organizational changes during 2006. Backaround The following general parameters were.among those listed prior to the adoption of the original 2003/2004 Operating Plan and continue to provide the framework in which the Community Center operates and is the basis from which budgets continue to be prepared. 1. The facility is looked at as a whole. Although, certain areas/programs/operations are relatively independent from an operational standpoint, there is a great deal of interaction among the various components of the building. Items like days and hours of operation,. memberships,, programming, and rental opportunities and rates have impacts across the'entire facility. The challenge of budgeting details while looking at the big picture has constantly been present in preparing and reviewing this material. 2. The facility, is being viewed as a community center as opposed to a private sector health club. Community centers provide some programs and community/citizen opportunities that in and of themselves are 'not If t ' i f t t' Th' ' ' rA tl AM t e - sus am ng rom a cos [Jul OPE; ive. is is a signs scan y i ere" Model than you see in the private sector where only activities that. produce revenue or contribute directly to revenues are offered and a clear bottom line financial analysis drives all decisions. 3. The success of the project will ultimately be determined over the long- term. There is a delicate balance between a short-term successful opening that impresses participants and. makes them want to return and to renew memberships and long-term community acceptance of and support for the facility. 4. The importance of successfully marketing the facility, and developing an acceptable market niche to maximize revenues while blending in • the community center philosophy cannot be overstated. • 5. Although the facility is being operated as an enterprise fund from an accounting standpoint, there is a dependence on other City operating funds incorporated into this plan. Modifications to the original parameters include the following: 1. A renewal or replacement account is being funded beginning in 2005. As part of the construction close out financing package approved by the City Council, the Renewal and Replacement account opened with a starting balance of $315,724.. This balance resulted from the City. Council direction to reduce original spending on furniture, fixtures and equipment and other construction costs. 2. Operational experience has resulted in necessary modifications to policies and procedures which are reflected in the budget; continued modifications are incorporated into the proposed, 2007 budget. 3. Start up issues have been mostly resolved and the Community Center has become established in its market niche. Revenues After a significant increase in user revenues projected for 2006 resulting from a rate increase, the 2007 budget relies on various activities to generate more • utilization without any membership rate changes. The antenna lease revenue transfer used to balance the operating budget is increased from $141,000 in 2006 to $225,800 in the proposed 2007 budget. Enclosed on page is a copy of the detailed revenue estimates for 2007 as compared to the budg t for 2006 and actuals for 2004 and 2005. The revenue estimates, in general, are fairly aggressive, are based on more operational experience than in previous years, and rely on continued extensive and successful marketing of the facility in combination with high customer acceptance and satisfaction. Expenditures Excluding depreciation and debt service from the total, for both years, the 2007 Eagan Community Center budget is proposed at $1,588,100, an overall increase of $126,700, or 8.7% from the 2006 budget of $1,461,400. ,Factors contributing to that above average increase are included in the department budget narrative to follow. Since debt service is paid through a tax levy resulting from the successful referendum, it is not included in this operating budget. The bond payment including both principal and interest to retire the outstanding debt for the building is $1,133,200 for 2007 compared to $1,138,000 for 2006. Depreciation is also not included in the operating budget as the renewal & • • replacement account is used in lieu of depreciation and is fully funded in the 2007 operating budget. Included inthe proposed budget as it is presented is an expansion of the concession operation to include a coffee bar. The concept has previously been reviewed by the Community Center Operations Committee. The information as presented will allow the City Council to determine the financial impact of the public policy decision to include or not include the coffee bar. Coffee Bar Operation: • The potential consideration of a coffee and beverage service operation proposed by ETAB for operation within the Eagan Community Center was brought to the City Council and has been studied since the spring 2005. • The culmination of the study resulted in the analysis of three potential operations; o 1) fully incorporated into the existing concessions operation, o 2) a mobile cart operation and o 3) fully incorporated into the Oasis. • The most cost effective consideration was to incorporate it into the existing concessions operation but not. operated as part of the Oasis teen center. • The combined concessions operation is incorporated into the 2007 budget • with the following considerations: o Start-up capital costs estimated at $27,000. o Additional merchandise for sale -at $9,800 o Additional staffing at $14,000 o Additional revenue projected at $32,000 • The Council may wish to approach this project -on a trial basis in which the infrastructure components are put into place (electrical/plumbing), equipment leasing options are investigated and compared to purchasing options and the public is made aware of this trial venture for a designated period of time; 12-18 months, for example. • The trial basis would allow the Council to evaluate the operation during the 2008 budget cycle to determine if it has been a worthwhile experiment and whether or not it should be continued. Personnel , The proposed complement of regular personnel for 2007 reflects organizational changes recommended by staff, resulting from a review upon the resignation of ,the Community Center Manager. That particular position was essential as final construction of the building was completed and the facility was opened and operated in the early years. The recent review has determined that it would be beneficial to the operations to eliminate the Community Center position and to replace it with two (2) Manager on Duty positions that would provide more "on • the floor" hours in which better customer service could 'be offered to the users of the facility. The following points provide additional background as a basis for the recommended organizational changes: . • The original organization focused on the skills and staff needed to open a major facility. • After 3 full years of operation we have a better idea of the amount of traffic, the daily needs of the building and the staffing to best meet those needs. • Having the community center manager vacant from May through August allowed for the review and analysis of how best to meet the growing demands of the building. • It is proposed that resources would.be best allocated to providing front line service to visitors. The existing full-time management staff has absorbed more of the day-to-day operation that was originally part of the community center manager's responsibility. • To focus on providing a higher level of customer service at the front counter and in the building the following changes are proposed: o Eliminate the Community Center Manager Position ($104,517) o Adding two FTEs; Manager on Duty positions that will be stationed at the. front counter from 5:30 a.m. to 11:00 p.m. to better serve the needs of the public using the building as well as to provide more crossover with the overnight custodial staff. ($92,642 total) o Continue the day-to-day workload of existing full-time staff and assess, over time, any future job related changes to existing staff. o Assess and change the work hours of the full-time staff to better • meet the needs of a building open 117+ hours per week. o Continue the long range planning and oversight by the Superintendent of Operations. • This staffing change dovetails into the overall Parks & Recreation organizational changes identified by Virchow .Kraus, which have been implemented over the last two years. Enclosed on page is a copy of the proposed organizational structure. Capital Outlay The proposed 2007 budget includes an allocation of $80,200 for capital outlay to purchase the following: 1. $4,400 — New equipment for the fitness center. 2. $27,000 — This allocation would be used to add room darkening shades to the Oaks ($20,000) and Gym ($7,000). The high degree of natural light, while a great amenity, causes problems with day time presentations in the Oaks and with late day gym activities. 3. $4,800 — Various office furnishings and equipment used in the normal course of business. 4. $2,000 — Kitchen Upgrades, Phase 1 of a three phase upgrade to the kitchen totaling $6,000. 5. $15,000 - Three drop down screens for the Oaks, Phase 1 of an'overall AV and related equipment improvement totaling $75,000. 6. $27,000 - Estimated capital start up costs related to the potential coffee bar. Additional detail is presented, above in the expenditure section of the memo. This capital outlay is proposed to be funded through operations since the fitness equipment is new and the office equipment it is not included on the renewal and replacement account. In addition the following items totaling $19,000 -are proposed to be purchased from the Renewal & Replacement account and are therefore not included in. the 2007 proposed operational budget: 1 $4,000 -- Atrium VCT Vinyl Floor Replacement 2. $15,000 -- Replacement Carpet — Oaks Prefunction Space Enclosed on -pages through 10 is a copy of the proposed line item 2007 budget. Enclosed on page, is a copy of the Capital Renewal and Replacement schedule for the Community Center. Marketinss • The fourth item listed above under the general parameters around which all budgets and operating plans have been developed and approved states, "The. importance of successfully marketing the, facility and developing an acceptable market niche to maximize revenues while blending in the community center philosophy cannot be overstated." All City staff and especially those working at the Community Center are committed to this message and.have been working diligently from day1 to implement 'a comprehensive and well thought out marketing. approach supported by specific objectives and expected outcomes. Enclosed on pages through is a copy of a summary of marketing activities that We been. undertaken thus far in 2006 and an explanation of the marketing/coordination with the Eagan Convention and ; Visitors Bureau. The success of this approach and the overall long-term progress,that is being made is demonstrated in the membership numbers included in the revenue section of this memo. Conclusion The Community Center clearly accomplished a successful beginning and has established a niche in the Community. While many challenges have been, addressed, many remain and will be aggressively met into the future: This proposed budget incorporates previous City Council direction and is overall a "stay the course" budget with minor modifications, primarily related to staffing, and customer service. It also allows for continued flexibility as the City goes • forward. �D Potential c anges for consideration Maintenance Engineer F.T. Custodial B.A. general oversight Superintendent of Operations Fitness Coordinator P.T. MOD Fitness Attendants Fitness Instructors Personal Trainers Rental Coordinator P.T. MODS F.T. MOD (new position) • Cascade Bay/Civic Arena Facility Operations Coordinator P.T. Guest Services P.T. Concessions P.T. Building Attendants (BA) F.T. MOD (new position) Reviewing the ECC operation from May through September of 2006 revealed that after being open a full three years there were some changes that could be made to better meet the needs of a fully operational building versus the structure in place for a newly opened building. Also in order to meet the growing demands in the building it was felt that new staffing would be best served at the front-line customer service level. To that end the follow re -organization is proposed: • Eliminate the ECC Manager position • Move the ECC organizational/policy/budget issues to the Superintendent of Operations • Spread the day-to-day operations to the various managers and establish the Building Operations Manager as the staff point person. • . Hire two full time MOD (Manager on Duty) positions that will have a front counter presence from 5:30 a.m. to 11:00 p.m. to provide the consistent full time coverage necessary for a building open at_least 117 hours/week. • Re -distribute other full-time manager positions to provide a broader coverage of full-time staff in the building. 0 City Ealao of 2007 Adopted Budget Operating Budget • Community Center Responsible Manager: Juli Johnson, Director of Parks & Recreation REVENUE SUMMARY . 2004 2005 2006 2007 . Actual Actual Buda Estimate 4304 Personal trainers 4,282 30,257 37,500 47,400 4305 Equipment rental 5,602 7,080 3,000 15,000 4310 Park program revenue 74,483 22,216 15,400 15,500 4312 Concessions sales 28,637 38,994 33,900 73,000 4314 Merchandise- sales 2,910 2,502 3,700 4,000 4316 Group sales 69,413 63,202 98,800 78,600 4318 Daily admissions 67,450 70,064 78000 73,000 4321 Memberships 352,657 501,259 706,600 688,500 4323 Vending 6,148 5,675 6,000 7,500 4324 Room rentals 131,269, 188,473, 249,900 260,000 4326 Facility rentals 6,221 1,221 1,500 4,500 4328 Contract revenue 47,139 44,112 57,000 85,000 4621 ECVB rent 7,333 3,621 9,000 10,300 4610 interest income 22,292 37,777 20,000 - 825,836 1,016,453 1,320,400 1,362,300 Transfer in -antenna lease revenue 190,856 300,220 141,000 225,800 • Total revenues 1,016,692 1,316,673 1;461.,400 - . 1,588,100 0 City Of BaQa 2007 Ado et Operating Budget Adopted Budget Community Center Responsible Manager: Juli Johnson, Director of Parks & Recreation PURPOSE & DESCRIPTION The purpose of the Community Center is to: • Provide a positive environment for residents and guests of all ages to gather • Encourage and help build a sense of community through a wide range of recreational and social opportunities • Promote health and wellness in the community • Maintain a high level of. service, accessibility and professionalism to expand revenue options to ensure the viability of this resource to the community The Community Center is responsible for the following functions: • Facilitate a wide variety of programs and classes for members and non-members • Market and operate a wide range of meeting spaces and rental opportunities for the community • Capture a high level of revenues to best offset the operational costs of the building • Protect the City's community investment by maintaining the integrity and value of the building and its amenities • Operate and maintain a quality fitness center and wellness programs • Provide space, programming and opportunities for all ages • Create a welcoming atmosphere and solicit input from users to best determine how to meet existing needs and identify future growth opportunities PERFORMANCE INDICATORS 03 .7 C7 • 2007 Description 2005 Actual 2006 Budget Proposed Groups in the Blast 83 85 90 Birthday parties 473 490 500 Meetings 660 700 750 Open gym program participants 4,914 5,000 5,100 Group fitness attendance (included in membership) 11,866 12,000 12,300 Memberships - year round 1,455 1,600 1,750 Personal Training 884 900 1,000 Weddings 71 80 85 Average attendance in building per day N/A 1,000 1,100 03 .7 C7 • City -Of Eaian 2007 Adopted Budget Operating Budget P g • Community Center Responsible Manager: Juli Johnson, Director of Parks & Recreation HIGHLIGHTS & CHANGES Overview: The proposed 2007 Eagan Community Center (ECC) budget is up $126,700, or 8.7%, over 2006. The ECC continues to expand the number of users that find their way to this wonderful City amenity. Tracking the number of people in the first half of 2006 indicates that on average there are 1,000 people in the building each day. The budget for 2007 reflects more growing pains and is designed to find more efficient ways to staff the building to provide the levet of service that the public' has demanded. It also reflects a clearer understanding of what the public is looking for and how they want to use this building. The focus for 2007 will be to right -size the overall staffing based on peak demand and develop a mechanism to crossover staff between the three specialty facilities. Analysis of use .patterns and service expectations will drive staff re -structuring options. The proposed budget reflects the Council's direction to formalize budget implications for providing a coffee bar element within the Community Center. The budget includes the capital necessary for this operation along with necessary staff and merchandise/supplies in addition to the standard concessions operation. •The increase to the personnel portion of the budget is 5.2%. This is primarily due to the addition of 2 full-time Manager on Duty positions, the elimination of the Community Center Manager position, and the increased seasonal staffing required to operate the coffee bar. Other operating expenses are increased by 9% over 2006, primarily due to underestimating gas and electrical costs and projected capital improvements'to the building. The capital expenditures are generally offset by revenue projections or are covered under renewal and replacement. The budget also corrects an overestimation of revenue in some areas. Hiahliaht/Chanae 1: With the vacancy of the Community Center Manager position, a reorganization is proposed. The Community Center Manager position is proposed to be eliminated and two full-time Manager on Duty (MOD) positions for the front counter would essentially replace the eliminated position. The MOD model, along with part-time position descriptions and pay will be mirrored at all special facilities to reach a level of operating consistency. Financial Impact: Net impact of the reorganization is a small savings of about $5,000. .Elimination of the Community Center Manager reduces the budget by $104,500. The two MOD positions represent an increase of $92,600 ($46,300 each) including benefits., Potential classification changes for existing positions are estimated at a $12,300 increase. Part-time staff will decrease $6,000 as part of the reorganization. Service Level Impact: This will provide the high level of consistent front counter staff needed for a facility that is open 117 hours per week. It will also provide a crossover with the evening maintenance staff for a more coordinated operation Hiahliaht/Chanae 2: Coffee Bar Addition Financial Impact: Personnel costs associated with the first year's operation are projected at $14,000 and concession merchandise (in addition to the existing operation) is projected at $9,800. Projected revenue is $35,000 and maintains the cost of goods criteria established for all concessions operations. The capital investment to put the coffee bar in place within the existing concessions operation is estimated at $27,000. Another consideration would be to look at leasing options for equipment to provide better flexibility in testing this operation. With leasing, however, there would be costs associated with retrofitting the existing space to • accommodate appropriate equipment qj Expenditures by Category Parts & Reserve for Supplies R&R 5% 8°/, Services & Debt Service Other 0% Merchandise Capital Charges for Resale Outlay . 20% 1% 3% HIGHLIGHTS & CHANGES Overview: The proposed 2007 Eagan Community Center (ECC) budget is up $126,700, or 8.7%, over 2006. The ECC continues to expand the number of users that find their way to this wonderful City amenity. Tracking the number of people in the first half of 2006 indicates that on average there are 1,000 people in the building each day. The budget for 2007 reflects more growing pains and is designed to find more efficient ways to staff the building to provide the levet of service that the public' has demanded. It also reflects a clearer understanding of what the public is looking for and how they want to use this building. The focus for 2007 will be to right -size the overall staffing based on peak demand and develop a mechanism to crossover staff between the three specialty facilities. Analysis of use .patterns and service expectations will drive staff re -structuring options. The proposed budget reflects the Council's direction to formalize budget implications for providing a coffee bar element within the Community Center. The budget includes the capital necessary for this operation along with necessary staff and merchandise/supplies in addition to the standard concessions operation. •The increase to the personnel portion of the budget is 5.2%. This is primarily due to the addition of 2 full-time Manager on Duty positions, the elimination of the Community Center Manager position, and the increased seasonal staffing required to operate the coffee bar. Other operating expenses are increased by 9% over 2006, primarily due to underestimating gas and electrical costs and projected capital improvements'to the building. The capital expenditures are generally offset by revenue projections or are covered under renewal and replacement. The budget also corrects an overestimation of revenue in some areas. Hiahliaht/Chanae 1: With the vacancy of the Community Center Manager position, a reorganization is proposed. The Community Center Manager position is proposed to be eliminated and two full-time Manager on Duty (MOD) positions for the front counter would essentially replace the eliminated position. The MOD model, along with part-time position descriptions and pay will be mirrored at all special facilities to reach a level of operating consistency. Financial Impact: Net impact of the reorganization is a small savings of about $5,000. .Elimination of the Community Center Manager reduces the budget by $104,500. The two MOD positions represent an increase of $92,600 ($46,300 each) including benefits., Potential classification changes for existing positions are estimated at a $12,300 increase. Part-time staff will decrease $6,000 as part of the reorganization. Service Level Impact: This will provide the high level of consistent front counter staff needed for a facility that is open 117 hours per week. It will also provide a crossover with the evening maintenance staff for a more coordinated operation Hiahliaht/Chanae 2: Coffee Bar Addition Financial Impact: Personnel costs associated with the first year's operation are projected at $14,000 and concession merchandise (in addition to the existing operation) is projected at $9,800. Projected revenue is $35,000 and maintains the cost of goods criteria established for all concessions operations. The capital investment to put the coffee bar in place within the existing concessions operation is estimated at $27,000. Another consideration would be to look at leasing options for equipment to provide better flexibility in testing this operation. With leasing, however, there would be costs associated with retrofitting the existing space to • accommodate appropriate equipment qj City Of Eapa 2007 Adopted Budget Operating Budget Community Center • Responsible Manager: Juli Johnson, Director of Parks & Recreation Hiahliaht/Chanae 2 (cont'd): Service Level Impact: This would provide the option for higher quality coffee and beverages to be served from the existing concessions operation Hiahliaht/Chanae 3: The budget increase in electrical and natural gas charges is 64% and 29% respectively. The budget projections for 2006 were based on 2004 actual costs (the facility's first full year of operation) and the first quarter of 2005, which did not reflect the.busy and warm summer wedding events requiring a higher demand for air conditioning compared to the 2004 summer. With line item cuts to .Other Services and Charges the overall increase in this area is 13% (to offset the combined 46% increase in electric and gas.) Financial Impact: $65,000 increase for the 2007 budget year. This increase will position the budget to better reflect actual costs. The increasing cost of natural gas will continue to provide a challenge in estimating costs Service Level Impact: As the activity grows in this building the expectation for a comfortable and efficient building continues to expand Hiahliaht/Chanae 5: Computer software for room reservations that can be accommodated on-line. The public has expressed a strong interest in having instant access to room availability Financial Impact: $7,000 for 2007 and maintenance thereafter Service Level Impact: This service will provide a more prompt response to users who want to simply see what options they might have for room availability. This will certainly respond to the many questions and concerns people have raised about why they can't get information more immediately Hiahliaht/Chanae 6: The addition of room -darkening shades in the Oaks banquet rooms and west windows in the gym Financial Impact: $20,000 for the Oaks and $7,000 for the gym • Service Level Impact: The expanded reserved use of the Oaks meeting rooms during the day has created some challenges for presentations because of the high degree of natural light. This would provide expanded day rental options in these spaces. The gym shades would offer some relief to late day sun affecting gym use. It is expected that increased rental revenue over the next several years will offset these expenditures Hiahliaht/Chanae 7: The addition of three drop-down screens in the Oaks meeting rooms . Financial Impact: $15,000 for 3 large screens that can be hidden in the ceiling to not impact the visual beauty of the space when they are not in use Service Level Impact: There is a growing demand for audio/visual equipment'in the building. Current renters are hiring AV specialists to bring in much of the equipment that might be provided by the ECC. This would certainly meet the growing need. and provide an expanded revenue stream. It is projected that the costs can be recovered within 5 years. This is proposed to be the highest priority of audio/visual enhancements that will be proposed to be added to the banquet/meeting rooms in the next 3-5 years Hiahliaht/Chanae 8: R&R projects are reviewed each year to make sure they are accurate and appropriately scheduled. There were several items that were scheduled for 2007 that have been pushed to later years because they do not need to be replaced at this time. The two remaining items include the been, of the carpet in the pre -function area as well as the vinyl tile in the lobby area near the fitness center. These items are not shown as part of the capital outlay but are identified on the detail sheets Financial Impact: The projected cost to replace both items is $19,000. They will then be added back onto the R&R schedule for future replacement in 5 years Service Level Impact: These improvements will maintain the visual and functional beauty of the building • City of Bajaa 2007 Adopted Budget Operating Budget P g • Community Center Responsible Manager: Juli Johnson; Director of Parks & Recreation EXPENDITURE SUMMARY • • Actual Actual Budget Proposed Expenditure 2004. 2005 2006 2007 Personal Services $ 721,483 $ 813,998 $ 905,000 952,200 'Parts and Supplies 48,616 56,983 82,100 75,900 Services and Other Charges 194,903 282,346. 287,200 324,500 Capital Outlay 31 ',442 11,895 34,500 80,200 Merchandise for Resale 20,248 30,651 31,000 30,800 Reserve for Renewal & Replacement - 120,800 121,600 124,500 Total $1,016,692 $1,316,673 $1,461,400 $1,588,100 • • of Rap • et Operating Budget � 200�Ado pted Budget Community Center Responsible Manager: Juli Johnson, Director of Parks & Recreation POSITION INVENTORY Personnel 2004 2005 2006 2007 Hours Community Center Manager 1 1 1 0 - Maintenance Engineer 1 1 1 1 2,080, Fitness Coordinator 1 1 1 1 2,080 Rental Room Coordinator 1 1 1 1 2,080 Facility Operations Coordinator 1 1 1 1 2,080 Lead Custodian/Maintenance 1 1 1 1 2,080 Custodial 2 3 3 3 6,240 MOD .0 0 0 2 4,160 Total 8 9 9 10 20,800 2007 WORK PLAN Activi Routine 1 Respond to public comments or requests via.phone or in person 2 Provide support to the day-to-day fitness center 3 Daily maintenance and cleaning of building 4 Provide support to the day-to-day concessions operation 5 Register participants in recreation programs, memberships or daily admissions 6 Set up and change room configurations to accommodate multiple events • 7 Develop promotional materials for specialized uses: Blast/Rentals/Fitness 8 Manage staff scheduling and training to meet the demands of the building 9 Recruit, hire,'train and supervise temporary and part-time employees 10 Provide work direction to ensure high level of customer service is maintained 11 Manage the building infrastructure to ensure efficient, safe and clean environment 12 Establish and manage fitness programs, classes and memberships 13 Coordinate the rentals of all available spaces within the building 14 Provide input and directions pertaining to policies, budget and general operation of ECC 15 Develop and manage capital improvements and long-range planning 16 Develop and manage policies & procedures that best meet the needs of the community 17 Coordinate outdoor events with indoor activities �J 17 • • • My 0f Eap 2007 Adopted Budget Operating Budget This page left intentionally blank. Y6' City of Baha 2007 Adopted Budget Operating Budget Community Center Responsible Manager: Jul! Johnson, Director of Parks & Recreation LINE ITEM DETAIL Acct PERSONAL SERVICES Actual 2004 Actual 2005. Budge 2006 Proposed 2007 6110 SALARIES AND WAGES -REGULAR $ 340,395 $ 400,940 $ 429,400 $ 445,900 6112 OVE711ME-REGULAR - - - 6130 SALAMES AND WAGES -TEMPORARY 253,041 259,674 315,500 319,000 6131 OVERTIME-TOMPORAW - - - 6142 PERAZOORDINATE3 28,683 32,740 23,700 27,900 6144 FICA 43,307 47,858 57,000 58,500 6151 HEALTH INSURANCE 45,882 60,103 73,000 89,000 6152 LIFE INSURANCE 697 818- 6154 DISABILITY- LONG TENNI 1,214 1,568 - - 6155 WORDS cONPEVSAnC ISI 8,264 10,307 6,400 11,900 TOTAL PERSONAL: SERVICES 721,483 813,998 905,000 952,200 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 2,940 2,279 4,000 3,000 6211 OFFICE PRINTED MATERIAL/FORMS 909 647 3,100 2,000 6212 OFFICE SMALL EQUIPMENT 16 1,004 5,100 2,200 6;220 OPERATING SUPPIJES-GENERAL 21,687 16,199 21,750 14,500 6222 MEDICAL/RESC UE/SAFETYSUPPLIES 17 53 300 200 6223 BUILDINGta-EANING SUPPLIES 12,433 17,755 16,000 14,300 WA C LOTHING(PERSONAL EQUIPMENT 1,896 3,210 3,000 3,000 -AW RECREATION EQUIPME TSUPPLIES 1,139 4,381 7,800 8,000 6230 REPAIR(MAINIEVANCESUPP-GEVL 2,583 1,899 2,500 2,500 62:12 SMALL EQUIPMENT REPAIR PARTS 115 1,495 9,000 7,000 6233 BUILDING REPAIR SUPPLIES 2,774 5,968 6,500 7,000 .6= OOMMUNICATICN SYSTEM PARTS 2 - - - 6240 SMALLTOOLS 424 19258 800 800 6241 SHOP MATERIALS 163 587 .650 600 6244 CHEMICALS & CHEMICAL PRODUCTS 1,448 248 1,000 2,300 6257 SIGNS & STRIPING MATERIAL 70 - 500 1,400 am oo PUTER SOFTWARE - - 100 7,100 'TOTAL PARTS & SUPPLIES 48,616 56,983 82,100 75,900 SERVICES & OTHEt CHARGES 6310 PROFESSIONAL SERVICES - 1,243. 3,000 $ 19500 6314 AUDITING 600 500 1,600 2,100 6315 FINANCIAL- N nAUDIT - 550 600 600 6320 INSTRUCTORS - 135 - - - 6346 POSTAGE 1,636 1,681 6,000 2,500 6347 TELEPHONE SERVICE & LINE C HG 1,801 3,609 5,600 4,400 6348 MATRLX SERM10E & REPAIR 63 - 500 500 6353 PERSONALAUTO/PAWNG 1,302 19526 2,000 1,800 ku .7 C. 0 AIML City Of Rap 2007 Adopted Budget Operating Budget • Community Center Responsible Manager: Juli Johnson, Director of Parks & Recreation 6355. CELLIAARTELEPHONESERVICE 997 263 1,000 500 6357 GENERAL ADNERIISING 3,075 4,994 11,600 13,000 6359 LEGAL NOTICE PUBLICATION 132 - - - 6370 (NERAL PRINTING AND BINDING 6,743 5,985 11,900 10,000 6385 INSURANCE 6,400 18,100 19,000 20,000 6405 ELECTR!ICITY 87,772 112,928 70,000 115,000 6410 NATURAL. GAS SERVICE 52,799 80,647 70,000 90,000 6426 SMALL. EQUIPMENT REPAIR. LABOR 120 115 - -, 6475 MISCELLANEOUS 694 6,405 15,000 3,000 6476 CONFERENCES AND SCHOOLS 3,299 5006 6,900 5,100 6477 LOCAL MEI=TING EXPENSES 115 155 1,000 500 6479 DUES AND SUBSCF2IPTIONS 396 485 800 1,000 6480 LICENSES, PERMITS AND TAXES 825 485 1,500 700 6467 VISA BANK CHARGES 8,477 7,882 10,000 9,000 6492 PAYING AGENT FEES - BONDS 403 403 400 400 6535 OTHER CONTRACTUAL SERVICES 8,310 1803 32,300 23,500 6539 WASTE REMCk/AUSANITATION.SERV 1,977 2,306 2,800 3,700 .6569 MAINTENANCE CONTRACTS 6,967 8,160 13,700. 15,700 OTHER SERVICES AND CHARGES 194,903 282,346 287,200 324,500 CAPITAL OUTLAY 6640 • 6650 MACHINERY/EQUIPMENT FURNITURE & FIXTURES 50 - - 3,724 23,200 - 4,400 27,000 6660 OFFICE FURNISHINGS & EQUIPMENT 4,796 4,993 9,300 4,800 6670 OTHEREQUIPMENT ENT - - 2,000 44,000 6700 CONSTRUCTION PROJECTS 26,596 3,178 - - wiTAL oun AY 31,442 11,895 34,500 80,200 AABtGiANDISE FOR RESALE 6855 AETCHPNDISE FOR RESALE 20,248 30,651 31,000 30,800 MIERCI-IANDISE FOR RESALE 20,248 30,651 31,000, 30,800 RESERVE FOR RENEWAL & REPLACEMENT - 120,800 121,600 . 12.4,500 TONAL ©OmVIImw Ceara $1,016,692 $ 1,314673 $ 1,461,400 $ 1,588,100 8.67% DEBTSERVICE PRINCIPAL. $ 530,000 $ 550,000 $ 566,000 $ 585,000 INTEREST 615,050 593,450 572,000 548,200 TOTAL DEBT SERVICE $1,145,050 $ 1,143,450: $ 1,138,000 $ 1,133,200 • 10 �1• • 1�1 Comm Ctr R&R schedule Eagan Community Center Capital Renewal/Replacement Funds Item Description BOILERS (3) WATER HEATERS (4). PLAYSPACE CHILLER ROOF RIDER FLOOR SCRUBBER KAIZEN RESTROOM CLEANER HUMIDIFIERS (4) CIRC MOTORS (4) AHU SUPPLY/RETURN MOTORS (4) BUFFER SWEEPER CARPET EXTRACTOR PULL EXTRACTOR WATER SOFTENER (2) CARPET SPOTTER BURNISHER WALK IN COOLER REACH IN REFER/FREEZER REACH IN REFRIDGERATOR REACH IN FREEZER DISPLAY COOLER WARMING OVENS (4) DISHWASHER BOOSTER HEATER PLATE WARMERS / HOLDERS (7) ICE MAKER REFRIDGERATOR (2) OVAL TABLES (45) RECTANGULAR TABLES (90) BISTRO TABLES (12) BANQUET CHAIRS (450). PLASTIC CHAIRS (175) PODIUMS (3) TENSABARRIERS (16) ATRIUM/LONE OAK FURNITURE POND FOUNTAIN BANQUET ROOM AUDIO SYSTEM AEROBIC STUDIO AUDIO SYSTEM EXERCISE ROOM AUDIO SYSTEM CARDIO FITNESS EQUIPMENT (30) FREE/SELECTORIZED FIT. EQUIP.(14) INDOOR CYCLE BIKES (15) TEEN CENTER FURNITURE PREFUNCTION / OAKS CARPET REMAINING BUILDING CARPET BUILDING VCT /VINYL FLOORING ATRIUM MEETING ROOM / TEEN CENTER / LONE OAK AED MENU BOARD BURNISHER - 2nd 9/8/2006 Estimated Useful Replacement Year Annual Year to Life cost Replaced Amortization Replace 35 $ 75,000 NEW 03 $ 2,143 2037 12 16,000 NEW 03 1,333 2014 8 150,000 NEW 03 18,750 2010 20 135,000 NEW 03 6,750 2022 20 250,000 NEW 03 12,500 2022 6 8,800 NEW 03 1,467 2008 6 2,800 NEW 03 467 2008 10 48,000 NEW 03 4,800 2012 8 4,800 NEW 03 600 2010 35 120,000 NEW 03 3,429 2037 7. 1,500 NEW 03 214 2009 . 7 3,300. NEW 03 471 2009 7 5,500 NEW 03 786 2009 5 2,400 NEW 03 480 2009 20 9,000 NEW 03 450 2022 7 600 NEW 03 86 2009 7 1,500 NEW 03 214 2009 8 8,000 NEW 03 1,000 2010 7 . 4,850 NEW 03 693 2009 7 4,050 NEW.03 579 2009 7 4,050 NEW 03 579 2009 7 1,000 NEW 03 143 2009 7 11,000 NEW 03 . 1,571 2009 10 8,400 NEW 03 840 2012 7 1,020 NEW 03 .146 2009 7 11,320 NEW 03 1,617 2009 7 2,600 NEW 03 371 2009 .12 800 NEW 03 67 2014 15 15,750 NEW 03 1,050 2017 15 22,500 NEW 03 1,500 2017 15 3,600 NEW 03 240 2017 5 37,050 NEW 03 7,410 2007 5 _ 3,850 NEW 03 770 2007 12 2,000 NEW 03 167 2014 12 2,300 NEW 03 192 2014 7 8,600 NEW 03 1,229 2009 6 7,000 NEW 03 1,167 2008 8 21,550 NEW 03 2,694 2010 8 10,580 NEW 03 1,323 2010 7 2,700 NEW 03 386 2009 7 116,040 NEW 03 16,577 2009 7 7,500 NEW 03 1,071 2009 6 8,625 NEW 03 1,438 2008/09 7 15,000 NEW 03 2,143 2009 5 40,000 NEW 03 8,000 2007 7 46,000 NEW 03 6,571 2009 5 19,500 NEW 03 3,900 2007 5 3,000 NEW 03 600 2007 6 16,500 NEW 03 2,750, 2008 10 2,000 NEW 04 200 2013 15 2,000 NEW 04.. 133 2018 3 1,500 USED 04 500 2006 . Total 1241554 Eagan Community Center Marketing — 2006 • Below is a summary of how various areas of the Community Center are being marketed in 2006. Fitness Memberships and Classes: i • Letter sent to all members to send yearly guest passes, promote addition of new equipment and programs • Jan. promo commercial made for local cable • Ad in special ,pull out section of the This Week newspaper for January membership special, "Active Rewards" • - Coupon in the. Super Savers book for the Jan. promo • Email sent to corporate contacts regarding Jan. promo • Press releases on complimentary group fitness classes • Letter sent to all 90 day, participants from previous year • Press release submitted • Posted on electronic sign board • Flyer emailed to corporate contacts Flyer posted throughout ECC and on local community boards • Promo box and press release on City web page The Blast Indoor Playground: d: • . • Booth and staff attendance at Kids. Expo at the Minneapolis Convention Center in February. • Sent follow up information to show attendees for birthday parties • Letters to day care providers in six communities (600 letters sent) _ • Flyer to all MN Parks and Recreation agencies (nearly 600) for summer group field trips • Ad in GO! Directory — a special summer issue of MN Parent . 1/a page ad in Simply MN — fall issue, 50,000 copies distributed in southern MN region • Coupon on back of Cub receipts for Apple Valley store, running from June 16 -Sept • Hotel rack card with coupon at surrounding hotels + Anticipate sendingout direct mail to Inver Grove Heights/Mendota Heights communities announcing new Non-resident punch card for Blast. • Table/Booth at Elementary school open houses. r • New reader board installed on Pilot Knob to alert people of current and upcoming events. • Hand out flyers at a of July parade advertising "After 5:00" special in The Blast. • Letter sent to local youth groups about overnight party rentals. 2 Banquet Room and Meeting Rooms: i • Ads placed in the Wedding Directory and Wedding Guide. Updated this year to include. listing as both a reception site and a ceremony site. • Ad in Minnesota Meeting & Events Resource Guide. • Ad in Eagan Telephone Directory. • Listing in MSAE (MN Society of Associate Executives) alternative meeting resource • . guide. Letters to school leaders and coaches who will be planning 2007 sports banquets. • Staff visits to local business & meetings. • Staff visits with local hotels to hand out ECC and City information on events and recreational opportunities. • Staff attendance at meeting planner forumsat the U of M. • Staff membership in the International Special Events Society. • Revised banquet brochure. • Anticipated fall wedding planning classes to be marketed to ECC brides. • Increased involvement with the ECVB, including staff on the marketing committee. • Staff attendance and sponsorship for government meeting planner association golf • tournament. Over 500 brochures and informational packets mailed out to potential customers. • Purchasing folders with the ECC logo to use in giving out ECC information. • Begin updating AV equipment as a means to market to more meeting customers. • Regular On -Going Marketing: • Press releases are done on a regular basis for all specialty programs • Link on the Explore Minnesota web site as "attraction" • Articles written for Experience Eagan • . Promotion in the Discover Brochure • Promotion on City Web Page • Promotions put on BECT • . All birthday party packets given out include Blast brochure • Updates and revisions to the virtual tour • Marquee at city hall and new electronic reader board used to promote all programs, memberships,.fitness classes and rental opportunities • Brochures placed on a marketing table near the banquet room when any large group is renting the Oaks • Brochure available at other City facilities 0 • ECC Marketing/Coordination with ECVB Marketina Committee Melissa Wind has begun attending marketing committee meetings. The.next is scheduled for August and they will continue every other month. It has been a very productive meeting to answer a lot of questions and get a lot if insight into each other's needs. Melissa is currently in the process of meeting with each hotel manager to deliver information and answer questions. Each meeting has been about 30-45 minutes and has been very helpful to learn more about the properties and potential rental opportunities for ECC or other facility spaces. Golf Tournament The ECC was represented at the SGMP golf outing this week. The idea and information was shared by Roberta at the ECVB. It is a group of Government Meeting Planners and a great opportunity that we wouldn't have known about without the ECVB involvement. Communication Although we don't have any regularly scheduled, meetings (other than the marketing committee) right now, the communication has been much mre forthcoming and recipricol. We willbe • working toward a more formalized meeting in the future.. Wedding/ Groups Hotels The ECVB provides the ECC with a list of hotels to hand out to groups and brides. About 500 copies are given away to potential customers every year. That flyer also contains the ECVB information. When asked about hotel rooms ECC staff will continue to direct people to the ECVB. People are also directed to the ECVB when we don't have the space they need. Advertising The ECVB is looking at changing their advertising budget and publications for the next year. ECC staff will remain a part of that process so that advertising can be better planned and not compete. More partnering will occur in the planned advertising venues. C� !M/