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06/20/1988 - City Council Special C~ -0 MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL June 20, 1988 A special meeting of the Eagan City Council was held on Tuesday, June 20, 1988 at 6:30 p.m. at the Eagan Municipal Center Building. Present were Mayor Ellison and City Councilmembers Egan, Gustafson, McCrea and Wachter. Also present were Director of Finance VanOverbeke, Chief of Police Berthe, Administrative Police Captain Pat Geagan and City Administrator Hedges. TOUR OF JIM HORNE PROPERTY Members of the City Council, with the exception of Mayor Ellison, and the City Administrator physically toured the Jim Horne property to review a specific parcel that is under consideration for a rezoning to a commercial status. The purpose of the on-site inspection was to view topographic conditions, road access and generally how a commercial building would relate to the proposed Kings Wood 2nd Addition residential development. There was no action taken and members of the City Council returned to the City Hall for the remainder of the special City Council meeting. The meeting was reconvened at the Municipal Center Building with Mayor Ellison and all City Council members present. POLICE DEPARTMENT COMPREHENSIVE STRATEGIC PLANNING REPORT City Administrator Hedges introduced a comprehensive strategic planning report that was recently completed by police personnel. He stated that the report contains goals and objectives for the department that relate specifically to public service responsibilities. Chief Berthe asked Captain Geagan to review the strategic planning report with members of the City Council. Captain Geagan reviewed, in detail, staffing projections for the next three years stating that currently the department is one and one-half patrol persons short of completing 24 hour coverage 365 days per year in all four districts within the City. There were a number of questions raised regarding the strategic planning report, specifically on the number of personnel that will be required in the Police Department during the next three years. Chief Berthe stated that one additional investigator and one additional patrol officer are recommended during 1988 in order to maintain the law enforcement public service objectives characteristic of his department. Mayor Ellison stated that he is supportive of adding the additional personnel as recommended by Chief Berthe during 1988 and suggested that this item be placed on the next regular City Council agenda. City Administrator Hedges, when asked by members of the City Council about the funding of the additional personnel, stated that the additional expenditures would be offset by revenues generated from building permits and interest in p/2 Special City Council Meeting June 20, 1988 other revenue sources that should exceed the 1988 revenue projections. Police Chief Berthe and Captain Geagan were commended for their fine effort in preparing the report. 1989 BUDGET City Administrator Hedges reviewed the schedule for the 1989 operating budget. He stated that department heads were given budget worksheets in late May and are expected to complete their departmental requests for review by the City Administrator during the first week of July. He further stated that the Director of Finance was asked to review revenue projections for calendar year 1989 for the purpose of setting parameters for the proposed departmental expenditures. Director of Finance VanOverbeke presented a revenue figure of approximately $10,500,000 stating that ad valorem taxes would generate approximately $1,000,000 of additional revenues and local government aid will increase by approximately $660,000 in 1989. He stated that other revenue sources are expected to increase, however these are the two sources that will provide the most increase in 1989. Mayor and City Councilmembers indicated a desire to review a budget that did not exceed revenue projections for 1989. The City Administrator was asked to proceed with the final draft of the proposed 1989 budget with the expectation that budget review sessions will be scheduled in late August and during the month of September. ADDITIONAL PERSONNEL City Administrator Hedges stated that the City is experiencing a greater volume of pending and new development proposals which is continuing to increase the ongoing work load of departmental staff. He stated that additional personnel is required either as full-time or contractual if development is to continue at its current pace. The City Administrator stated that the City of Eagan is experiencing the largest volume of development applications ever encountered which has caused employees in a number of departments to work on evenings and weekends in order to keep up with the processing of applications, agreements and to respond to the ongoing public service calls that are generated by residents. City Councilmembers responded to the request for additional personnel needs stating that the 1989 budget process is the time and place to discuss long term employment objectives. There was also a suggestion that if additional contractual personnel are required they should be hired and billed back to the development community according to the City's escrow policy. The City Councilmembers expressed their sympathy toward the increasing work load and time that employees are spending and suggested that positions authorized for hiring in 1989 proceed expeditiously during the fall of 1988 so that full-time employees begin work with the City in January, 1989 to help offset the increasing work load. OTHER BUSINESS There was no Other Business. p/3 Special City Council Meeting June 20, 1988 ADJOURNMENT The meeting was adjourned at approximately 10:00 p.m. TLH June 20, 1988 Date City Clerk R-88.6 EAGAN CITY COUNCIL RESOLUTION NO. 3 Upon motion of Ellison, seconded by Gustafson, the following Resolution was proposed for adoption at a regular meeting of the City Council held on Tuesday, January 5, 1988; WHEREAS, the City Council at a regular meeting held on December 17, 1987, adopted a motion negatively declaring a need for an Environmental Impact Statement in connection with the Hoffman Development Group's Cliff Lake Galleria and Towers Project. Said negative declaration was premised upon a firm and binding commitment set forth in a letter dated December 16, 1987 from the developer's attorney, David C. Sellergren, to Dale Runkle of the City of Eagan and Thomas W. Balcom of the Minnesota Department of Natural Resources (the "DNR") to comply with all environmental protections as required by and set forth by the DNR in its letter of December 16, 1987 to Dale Runkle of the City of Eagan; and WHEREAS, Mr. Sellergren in his letter indicated that formal agreement would be adopted on or before December 31, 1987; and WHEREAS, the DNR indicated that the written agreement was to be between the developer, the City of Eagan and the DNR and to be negotiated and signed within 30 days; and WHEREAS, at a special meeting held on December 30, 1987, three members of the Council purported to address an alleged agreement between the DNR and the developer but that no final vote thereon was taken and any action which may have been taken was not action by the City Council as all such related business was not properly before the Council; and WHEREAS, it is clear from the DNR's letter of December 16, 1987 and the developer's letter agreeing to be bound by the DNR's letter of December 16, 1987 (both of which are attached hereto and incorporated herein by reference) that the City is to be a party to said agreement along with the DNR and the developer; and WHEREAS, the purported actions occurring at the special meeting of December 30, 1987 may have caused or lead to confusion with respect to the City's position regarding said agreement; and WHEREAS, the City believes it is in its best interests to examine further and seek legal counsel to evaluate whether or not the City's negative declaration concerning the EIS is proper, binding, valid and/or should be reconsidered in light of the developer's failure to meet its stated commitments and/or in the event of any failures of those commitments; and NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: RESOLVED, that any agreement or purported agreement between the DNR and the developer of the Cliff Lake Galleria project as of the date hereof has not been approved by the City of Eagan and any purported signatures by or on behalf of the City of Eagan with respect to any such document was without authority and is of no force and effect. FURTHER RESOLVED, that the agreement between the DNR, developer and the City of Eagan is to be negotiated in consultation with Eagan City staff with final approval resting with the City Council. FURTHER RESOLVED, that the City Administrator shall inform the Minnesota Environmental Quality Board that the City's negative declaration concerning an EIS on the Cliff Lake Galleria Project on December 17, 1987 was conditioned upon entering into an agreement with and among the DNR, the developer and the City by December 31, 1987 and that said agreement has not been reached to date. The City Administrator shall also take all appropriate steps to put all interested persons on notice of such deficiency, including requesting the EQB to have said statement published in the next edition of the EQB Monitor and to notify all persons of this deficiency who had previously been notified that the City had issued a negative declaration concerning the EIS for the Project. The above Resolution was adopted by the City Council with 3 members voting yea and 1 member voting nay, on this 5th day of January, 1988. Those in favor: Ellison, Wachter and Gustafson. Those against: Egan. CITY COUNCIL CITY OF EAGAN By: Mayor ATTEST: By. Ci Clerk T~Si MOIIMAM lNtwwlK DMA. .yw[TICM LAnKIN, HorrmAN, DALY & LINDGREN, LTD. oEw.lo 1/; iwT ALT JOHN N. LYMOOYE •T aP `MjriTN LINOOwtN or/f 4L U.0.06T. w. ~ewS..roANI[uow ATTOPONCYS AT LAW ,P•N•EU A. ANOCN•ON t O J. P41 tp1.O N. ?NIEDILL Y MICMINCES 7. MSNIMler •gNT a rNITLOCn AMSwty? J. rlrc,cu ..AN t. MUL?IOAN 1300 NORTNW(3T(RN FINANCIAL C(NTCN 2000 '1'(R JAI/RAT TOW(R JOHN A. COTT$N• J•tw? J. NCNMI•SCT NAINLLCM M. 0ATE•• JAres C. LNICNSON 7000 X(RX(3 AVENUC SOUTH 222 SOUTH NINTH 3TR((T SCAT. Ct A. woTN.cl?CN wwe J. ONI*CO?L PAUL a PLUNPtrr Es P, HI?[. •LOOHINOTON, NINN[30TA $1431 N1NN(AF'O LI S. MIHN(30TA S5402 •us^M . NuwME•NT IC M. ?YLL[N A.w CAN* .wADT rlo C. acu[wowtN TCL(PHON( 1612) 636-3600 T(LCPHONC 16121336-6610 SLAM L. wILOOIP wICHAwO J. ttgN.. M.7 L[c. r, PICOTTt NEWISH see • A. IIOC. D /u LLDtw T(L[COPI(R Isla) 633-6102 T[LCCOPICR 16121 »6-1002 LSww wo.cwT a Sera Ptrtw J. cowl: ?wAMN 1. NANNt• NICNANO A. /ON.CNLc¦ CAT"[ .1 .9 •ARNCTT .1110. 0 .w NICH AND A. MONDsvt ear" A. C. ..*case. J[//PCT C CMASLES N. MOOELI CHwE•TOIN CN J. 0/ERE. D.HICL L. NOBLE! JOHN ,..[ATTIC Bloomington iooo S* o.et LENOA N. nan.w I. J. Us THOMAS P. are6rw^m To JILL LL 1. !THEN O. LcVIN Pomace? Q. HOW IIN CRAOOSM A. C EO SOwA1e A. ?E. TtwsoN MICHAEL C. JACwMAw LISA A. OKAY JOHN C. DIC.L e A. N. WEAK JON S. S.IEwtcW..l rNO NODAS W. 4UCw THOMAS J. rLtNN SHANNON A. HCCANNNIDOC JAMES P. QUINN TODD I. rwtcNA. DENISE Y!. CONCH lTCPMEN O. SOLOMON OtHl.t ...ONTO. PETER w. ¦CC4 JENOrc W. NAHNNC O/ COUNSEL JOSEPH all" JON, A. WNYO. JAMCS A. SALOON • ALSO .OMIT.. IN -ISCo-.Er December 16, 1987 Thomas W. Balcom Supervisor Planning and Review Section Minnesota Department of Natural Resources 500 Lafayette Road Saint Paul, Minnesota 55155 Dale Runkle City of Eagan 3830 Pilot Knob Road Eagan, Minnesota 55122 RE: Cliff Lake Centre EAW Dear Messrs. Balcom and Runkle: As attorneys for the developers of Cliff Lake Centre, we have received and reviewed the letter of December 16, 1987, from Mr. Balcom to Mr. Runkle. We have reviewed in detail with our client the content of the December 16 letter. This letter is a firm and binding commitment on behalf of the developer of Cliff Lake Centre to comply with all of the water quality management elements and protection measures expressed in that letter. This binding and firm commitment and agreement will be reflected in a formal document on or before December 31, 1987. LARNIN, HOFF:SAN, DALY & LINDGREN, LTD. Thomas W. Balcom :ember 16, 1987 -5 1-..ge 2 ii. Therefore, there is not a requirement for a mandatory EIS. Sincerely yours, David C. Set ergren,/ or LARKIN, HOFFMAN, DAL & LINDGREN, Ltd. DCS:bt3sg cc: K. Lokkesmoe, Regional Hydrologist Dept. of Natural Resources Michael Sullivan Minnesota Environmental Quality Board B. McHale, Ryan Construction Co. P. Hoffman, Hoffman Development Group Cr~JH Jii©z DEPARTMENT OF NATURAL RESOURCES BOX , 500 LAFAYETTE ROAD • ST. PAUL, MINNESOTA • 55155-40 % F III IR 1. ORMATIOH (617' ^96-6157 • December 16, 1987 Mr. Dale Runkle City of Eagan 3830 Pilot Knob Road Eagan, t•iN 55122 RE: Cliff Lake Centre EAW Dear Mr. Runkle: We understand that the review time for submitting comments on the Cliff Lake Centre EAU has been extended by two weeks. Please accept these additional comments for the city's consideration when determining the need for an environmental impact statement (EIS). As expressed in our December 1, 1987 letter, our major interests and concerns continue to focus on the project's potential impacts to Cliff Lake. In iition, our consultations with the Environmental Quality Board (EQB) staff ,,,eve led to the conclusion that the project, as described in the EAW, requires a datory EIS because it does not meet the intent of the state and local s.,oreland management controls. In order to address these concerns we met with the project developer's consultants and representatives an Thursday, December 10th. We discussed and agreed to the following water management plan elements: - All runoff from the project's impervious surfaces will be diverted to the Cutlot B pond. Performance standards, monitoring, and a properly designed outlet structure for the Outlat B pond will be required so that adequate treatment of the runoff water is assured at all times. - The outlet to Cliff Lake will bypass the Outlot B pond and drain directly to the downstream drainage system, and therefore less storage capacity would be needed in the Outlot B pond. - The Outlot B pond should be redesigned to be shallower with more gradual slopes to produce aquatic vegetation which will be beneficial for wildlife and water quality. We now understand that Cliff Lake has an upstream watershed of 600 acres and that the diversion of water from impervious surfaces to the Outlot B pond will not significantly affect the inflow to Cliff Lake. However, to further protect Cliff Lake and its valuable fish rearing capabilities, the following shoreline - itection measures should be implemented: i•N EDI;AL OPPCRTiI!`IITY EMPLOYER ,age 2 it Shoreline setbacks for all structures and impervious surfaces (roads and parking areas) must be at least 50 feet, and more where feasible, to leave as much land sloping toward the lake as possible in a natural state. - The Soil and Water Conservation District's requirements for grading, filling, and erosion control must be incorporated into the project proposer's development plans and strictly adhered to. - The Phase II office and hotel development should have greater shoreline setbacks and less impervious surface so that the total project meets the intent of state shoreland standards and Eagan's Shoreland Ordinance. To insure that these water management elements and shoreline protection measures are implemented, a written agreement between the project proposers, the City of Eagan, and the OUR should be negotiated and signed within the next 30 days. If the agreement contains the water management elements and shored-ine protection. measures as outlined above, then this would adequately address.-zthe concerns expressed in our December 1, 1987 letter and would satisfy the- requirements of the EQB mandatory category rules. While these provisions would avoid the ,mandatory EIS requirement, it would not restrict the City's ability to order an :S on the basis of the potential for significant environmental effects. ank you for your consideration in this matter.. ,Sincerely, - Thomas W. Balcom, Supervisor NR Planning and Review Section ./SEVEN AGENDA SPECIAL CITY COUNCIL MEETING MONDAY, JUNE 20, 1988 6:15 P.M. I. ROLL CALL II. TOUR OF JIM HORNE PROPERTY (OPTIONAL) III. STRATEGIC PLANNING /POLICE DEPARTMENT IV. V. VI. 1989 BUDGET /PERSONNEL NEEDS OTHER BUSINESS ADJOURNMENT MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: JUNE 16, 1988 SUBJECT: SPECIAL CITY COUNCIL MEETING TOUR OF JIM HORNE PROPERTY (OPTIONAL) As stated on the agenda and as a part of the agenda information for the the June 21 City Council packet, a tour of the Jim Horne property to consider that proposed development is optional for members of the City Council. If the City Council is able to tour the property on Monday, we will meet at 6:15 p.m. and plan to complete the tour prior to 7:00 p.m. If Councilmembers are unable to attend on Monday and would still like the opportunity to tour the property, certainly arrangements can be made either with Jim Horne or Terry Maurer for another time. STRATEGIC PLANNING /POLICE DEPARTMENT The Special City Council Meeting is divided into two (2) parts beginning at 7:00 p.m. The first item is to consider the strategic planning report that was recently completed by Police personnel. This document is enclosed for your review. The document is lengthy and contains many administrative procedures that are not relevant or necessary for the policymaker. I would suggest a type of review that allows you to familiarize yourself with the document. The Police Department will summarize the document concentrating on the issue of additional personnel needs. The City Council may wish to consider spending its review time on those sections dealing with additional personnel requirements. 1989 BUDGET The City Administrator will briefly review the schedule for preparing the 1989 Operating Budget. The Director of Finance has prepared revenue projections; copies will be available for review at the meeting. ADDITIONAL PERSONNEL The volume of pending and new development proposals is continuing to swell requiring additional staffing needs. The City Administrator has met with Department Heads on an individual basis and recently in management meetings to analyze the ever - increasing workload. The need exists now for additional personnel if development is to continue at its current pace and if the City is to provide some reasonable processing time frame for pending and existing development applications. A separate memo is enclosed addressing the issue of additional personnel for your review. Direction should be given regarding personnel needs for official ratification during the month of July. The Director of Finance has prepared a current revenue analysis of the 1988 Operating Budget; a copy is enclosed. Gene will provide alternative sources of funding additional personnel at the meeting on Monday. OTHER BUSINESS The City Administrator is not planning to address any other items of business given the regular City Council agenda and meeting for Tuesday evening. City Administrator MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: JUNE 16, 1988 SUBJECT: PERSONNEL NEEDS At the present time, the City of Eagan is experiencing the largest volume of development applications ever encountered. The City is also still processing development applications from the last two to three years through the required steps of the development system. Further, once an application is finalized, staff must continue to perform additional work on projects gen- erated by that application. The above tasks do not include the time spent by staff maintaining the services required by the steadily growing population which results from the development activity. As City Administrator, I have personally experienced an even greater increase in my workload than in previous years, requiring an extensive amount of evening and weekend work. And when I have come into the Municipal Center on evenings and weekends, I have noticed that many other employees are also consistently working overtime in order to keep up with the greatly increased workload. Not only are the employees working many nights and weekends, either here or at home, they are also coming in early and staying late. Even with this kind of effort, the workload has not decreased. I believe that none of our employees object to working some over- time hours, or even occasionally extensive overtime hours required by a special major project. However, the problem which has been occurring and which is accelerating is that the overtime hours are becoming a part of the required normal work period. We have employees who probably put in over 50 to 60 hour work weeks every week, week after week. This is not a positive, productive situation. This consistently extended work week, with no sign of relief, could have a number of negative effects. These include increased stress and discontent both in the work situation and in the employee's private life and the very real possibility of the employee becoming "burned out" which could lead to the employee not performing his /her tasks in an efficient or even adequate manner or eventually to the employee seeking other employment. Because of these concerns, I decided to call a meeting of all department heads to discuss the situation and their needs. They related to me that they and their personnel are unable to keep up with the current workload, even given the extensive overtime spent. They expressed the opinion that even if the acceptance of new development applications were stopped or drastically limited, 1 the current numbers of staff would still have to work overtime in order to adequately handle both the development applications now in progress and the additional workload caused by previous development. Because of the extensive development and the volume of work cur- rently being experienced and because freezing the acceptance of any new development applications is probably not a feasible al- ternative, the department heads and I are of the opinion that ad- ditional personnel are needed at the present time in a number of areas. Please note, however, that adding personnel at this time does not mean that we would be able to handle more applications than we currently do. Additional personnel would give us the means to: 1. Maximize efficiency by being able to thoroughly review proposed development projects. Unfortunately, because of the current situation, there are times staff either misses something that should be corrected or even times when staff is not able to address "desirable" concerns as opposed to "required" concerns. And some of these items could come back to haunt us in the future. For instance, in the Cedarvale redevelopment, engineering should probably have addressed traffic and parking concerns; but there simply were no staff members avail- able to work on this project. 2. Increase efficiency of the development system as a whole by beginning to relieve the backup of work created by the high volume of development applications already in process. 3. Reduce constant stress caused by the heavy workload and consistent overtime hours. Over a period of time, this stress could adversely affect employees' physical and /or mental health, could adversely affect efficient job performance and could lead to the City's losing valuable employees. 4. Allow the staff to function adequately in times when one or more employees are ill, both in handling con- cerns that occur while the employee is missing and in not creating a further backlog of work. Staff members would also be able to take vacations without seriously negatively affecting the current work situation or coming back to a piled up workload that cannot be handled. Therefore, staff would like to request that the Council consider adding additional personnel at this time in order to meet the current workload in the following specific areas: 2 1. Engineering: a. One development /drainage /design en- gineer, b. One transportation /traffic en- gineer, c. One senior engineering tech, and d. Two engineering techs. (Explanation: Additional personnel needed to adequately handle current volume of new and existing development applications as related to engineering con- cerns and the engineering projects these applications generate. Some of the tasks which would be handled by the new personnel are currently being done by either consultants at a very high pay rate or by interns who need a great deal of supervision - and thus use up even more time of regular personnel). 2. Streets /Equipment Maintenance: a. One maintenance worker. (Explanation: More streets and equipment to maintain. Also, even though we are currently using seasonal people to perform some of the tasks, those seasonal people require a great deal of supervision, which in turn inefficiently uses more time of the regular main- tenance personnel.) 3. Utility Maintenance: a. Two maintenance workers. (Explanation: Because of the knowledge /schooling required to perform tasks in this division, the City needs regular personnel who know what to do rather than seasonal personnel who either cannot do the tasks or have to be very closely supervised.) 4. Parks: a. One landscape architect /park plan- ner, b. One landscape technician. (Explanation: Currently, the City has only Steve Sul- livan performing as a landscape architect /park planner. He is literally required to be in too many places at once to cover all the facets of this position. With the development in Eagan, the above personnel are needed to keep pace.) 5. Planning: a. One planner to help process development applications, b. One planner for comprehensive planning /technical environment tasks. 3 (Explanation: Here again, the City has only one person attempting to cover each of the above positions. They cannot keep up with the volume of work in their own positions, much less cover for each other if one is missing.) 6. Inspections: a. One fire marshal. (Explanation: Doug Reid performed the duties of this office when the City was smaller and when he was Asst. Chief Building Official. Given the volume of work now required of him as Chief Building Official, he is un- able to adequately perform the duties of fire marshal. The fire marshal is a necessary position because of the legalities concerned with investigating fires thoroughly.) 7. Police: a. One additional investigator (for crimes against person, such as child abuse), b. One additional officer. (Explanation: Crimes against the person are increas- ing, especially child abuse cases. With the current volume of such crimes, the one investigator assigned to these cases is unable to investigate every one in a timely manner. With regard to the extra officer, this would give the City the capacity to have four officers on the street 24 hours a day.) 8. Finance: a. One accountant. (Explanation: Trained help is needed to deal with the increased activity in the Finance Department.) Please note that the above personnel are requested for the cur- rent year. Requests for additional personnel for 1989 will be forwarded to the Council when the 1989 budget is considered. It is the desire of the management team to add the above person- nel as full -time employees of the City of Eagan and not as tem- porary or contractual personnel. Full -time personnel would be more efficient in terms of commitment, training time, supervisory time, ongoing knowledge of the City's operations and, in some significant cases, compensation. However, the need for addi- tional personnel is so great that the management team would at- tempt to alleviate some of the staff problems through the use of temporary or contractual personnel. With regard to financing the additional personnel, costs could be covered through increasing fees, through increasing escrow fund- ing, or through direct charges to developers. 4 A certain base of employees is required in each department to ad- minister its workload. Because of the rapid development and growth of the City of Eagan, the current number of staff members is not adequate to handle current demands or to spend the time needed for thorough long range planning. In addition, because of the lean numbers of staff, any absences of staff members due to illness or vacations cause serious problems both for those absent staff members and for other staff members who depend on their work. We must consider whether we wish to continue to "make do" with our current numbers, with the knowledge that less work will be done less efficiently with an adverse effect on current staff members, or whether we wish to add staff members, both now and in the future, to create a base which is able to adequately handle the workload. Let us compare this situation to the water /well situation we have just experienced in the City of Eagan. In regard to water, do we wish to create a water supply system for the City which may be able to supply the minimum needs of the citizens if every machine and well is operating at peak efficiency under favorable condi- tions or do we wish to create a water supply system that allows for supplying needs under drought conditions when one or more wells malfunctions? Applying that to personnel, how do we wish to handle the personnel situation, which is also a service re- lated system and can also break down? The management team and I agree that, given the current numbers of staff, our efficiencies have already been maximized. This memo is offered for Council awareness and consideration for a resolution to the current personnel constraints. Additional dis- cussion will be provided at the workshop on Monday and, per Coun- cil direction, revenue solutions will be explored during early July in order to be able to employ additional personnel as requested. Development will continue in Eagan. Once development has oc- curred, the necessity for redevelopment will follow. There will also be a need for continuing administration of increased ongo- ing City operations. Therefore, any staff members added in the areas discussed above will not become extraneous in the future. Indeed, we will be looking at adding even more personnel during the next few years just in order to be able to address the needs of the City. City Administrator 5 MEMO TO: CITY ADMINISTRATOR HEDGES FROM: FINANCE DIRECTOR /CITY CLERK VANOVERBEKE DATE: JUNE 15, 1988 SUBJECT: 1988 REVENUE /EXPENDITURE PROJECTIONS At your request, I have reviewed in detail the 1988 revenue and expenditure reports for the City's General Fund. The information reviewed is through May 31, 1988, and any conclusions drawn at this point are subject to nearly as much fluctuation as those made last fall during the budget process. Taxes REVENUES Total revenues received to date are $924,265 or 10.7% of the budgeted estimate of $8,652,100. I will attempt to review in general terms each of the revenue classifications as follows: Total budgeted taxes are $4,771,640 or 55.2% of this budget of which $67,545 has been received. Given the error in the Dakota County Assessor's office the general fund will be short approximately $160,650 of tax revenue even if the balance is collected at 100 %. Licenses While total revenue received to date is only $10,581 compared to the budget figure of $61,050, the largest portion is received at the end of the year. I would expect this classification to come in at about budget. Permits The City has received $281,472 of the budgeted amount of $930,130 or 30.3 %. Although 42% of the year has passed, the construction season is moving through the heaviest activity and the original budget estimate is reasonable. At May 31, 1987, the City had collected $463,479 of a budgeted $783,120 in this classification. The total year showed revenues in the permit classification of $988,143. Any large commercial /industrial type project would certainly help to generate a favorable variance. State Shared Revenues Only $2,500 of the budgeted $1,343,470 has been received. Given the nature of this revenue source and the previous effort to accurately budget it, there is no reason to project it at anything but the budgeted figure at this time. MEMO TO CITY ADMINISTRATOR JUNE 16, 1988 PAGE TWO Charges for Services The budget in this classification calls for $509,680 of which $183,215 or 35.9% has been received. Nearly 70% of this budgeted amount relates to plan checking fees and is directly related to building permits. It does not appear that any other line items will vary significantly from the earlier projections. Recreation Charges Approximately $4,850 more revenue has been received than was budgeted in this classification. That relates primarily to $5,829 of revenue for tree sales which was not budgeted. It appears that there will be a favorable variance of $10,000- $15,000 total by year end although the major revenue producer, softball, is probably all received at this point. The total amount budgeted is $74,650 and $79,502 has been received. Fines and Forfeits The estimated budget was $144,000 and $42,777 has been received. The $42,777 includes receipts for four (4) months consequently this is slightly below the original projection and would generate an unfavorable variance of approximately $15,000 for the year assuming continued collection at this rate. Miscellaneous Revenue $13,821 of the budgeted figure of $163,200 has been received to date. $122,000 or 75% of this projected revenue relates to interest earnings. There is a fairly strong possibility that 1988 interest earnings will exceed that projection. Refunds and Reimbursements The estimated budget is $654,280 and $200,881 has been received. The major variable in this classification is the project administration reimbursement of $200,000. Given the level of special assessment public improvement projects, there is again a fairly strong possibility that this estimate will be exceeded. Revenue Conclusion In my opinion, the question of whether or not 1988 revenues will exceed the budgeted figure will be answered in the following areas: 1. Construction related permits 2. Interest earnings 3. Administration fees on public improvement projects MEMO TO CITY ADMINISTRATOR JUNE 16, 1988 PAGE THREE Again, remember that before a favorable revenue variance will be realized, a $160,000 tax shortfall has to be made up to get to the budgeted figure. As you recall, in September when this budget was put together the following revenue reductions were made reflecting the City Council's desire to be somewhat more conservative than proposed by staff: Building Permits $80,000 Plan Check Fees 40,000 Administrative Transfer 60,000 Interest 18,000 $198,000 Any additional appropriations at this time move the City in the obvious direction of the original more optimistic revenue projections. While I remain hopeful that there will be a favorable revenue variance for the year, the year -to -date activity does not necessarily support that conclusion. EXPENDITURES Total year to date expenditures as of May 31, 1988, total $3,233,535 or 37.4% of the approved budget of $8,652,100. On a straight line basis we would have spent approximately 42% of the total budget. Given the fact that there is a time lag on recording expenditures and the level of activity is very high it is unlikely that total expenditures will be less than budget. By way of reference at May 31, 1987, we had spent 37.1% of the 1987 budget; however, for the year, we exceeded the original budget by approximately $351,000 in addition to using the total contingency of $111,920. Comparable worth and related salary adjustments caused a large part of that unfavorable variance; however, other factors which caused it are also present in 1988 and will have an adverse impact on the 1988 operations. Specific items of concern in the 1988 budget include the following: 1. The change in legal counsel has caused a rate change from $65 to $80 per hour. We have not been very successful keeping the legal costs within the budget in previous years even without a rate change. 2. The basement and Police Department finishing show a deficit at this point of $13,500 and also require a reallocation of $21,700 from other departments and $12,000 from within the Police Department. By using these reallocations, we are eliminating substantially favorable variances and ignoring the potential for unfavorable MEMO TO CITY ADMINISTRATOR JUNE 16, 1988 PAGE FOUR variances which should be offset. That $452,920 budget in 1987 was after using favorable variances. 3. The Police Department has added a replacement officer related to the Drug Task Force. That officer started February 3, 1988 and will cost approximately $30,000 for the year while the reimbursement is $15,500 from the Task Force. 4. An additional squad car was authorized for the Police Department at approximately $12,000. Expenditure Conclusion Based on the tremendous amount of activity and the continued expectation to process development related applications while providing a constant level of services, I am not optimistic that a favorable expenditure variance can be generated for the year. The 1988 contingency is only $16,280 and, therefore, provides very little cushion for certain line items and departments that might exceed budgeted figures. Fund Balance The December 31, 1987, financial report will show a General Fund Balance of $3,090,657 which is 35.7% of the 1988 budget of $8,652,100. Approximately $400,000 of that balance has been appropriated, therefore, when that transfer is made, the percentage will be reduced to 31.1 %. It has been the City's goal to achieve a 30 - 35 percentage figure of the subsequent operating budget; consequently, we are at about the desired level. It should be noted that this is a very conservative level given the amount of development activity and the related revenues which have resulted. As you probably noted, the 1988 year -to -date figures show $2,309,270 more expenditures than revenues. This means that over two - thirds of the fund balance has been used as working capital pending the larger revenue receipts to be received later in the year. Please let me know if you would like additional information or if you would like to discuss this matter in more detail. Finance ]Director/City Clerk EJV /kf V IV. V. VI. AGENDA SPECIAL CITY COUNCIL MEETING MONDAY, JUNE 20, 1988 6:15 P.M. I. ROLL CALL II. TOUR OF JIM HORNE PROPERTY (OPTIONAL) III. STRATEGIC PLANNING /POLICE DEPARTMENT 1989 BUDGET /PERSONNEL NEEDS OTHER BUSINESS ADJOURNMENT MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: JUNE 16, 1988 SUBJECT: PERSONNEL NEEDS At the present time, the City of Eagan is experiencing the largest volume of development applications ever encountered. The City is also still processing development applications from the last two to three years through the required steps of the development system. Further, once an application is finalized, staff must continue to perform additional work on projects gen- erated by that application. The above tasks do not include the time spent by staff maintaining the services required by the steadily growing population which results from the development activity. As City Administrator, I have personally experienced an even greater increase in my workload than in previous years, requiring an extensive amount of evening and weekend work. And when I have come into the Municipal Center on evenings and weekends, I have noticed that many other employees are also consistently working overtime in order to keep up with the greatly increased workload. Not only are the employees working many nights and weekends, either here or at home, they are also coming in early and staying late. Even with this kind of effort, the workload has not decreased. I believe that none of our employees object to working some over- time hours, or even occasionally extensive overtime hours required by a special major project. However, the problem which has been occurring and which is accelerating is that the overtime hours are becoming a part of the required normal work period. We have employees who probably put in over 50 to 60 hour work weeks every week, week after week. This is not a positive, productive situation. This consistently extended work week, with no sign of relief, could have a number of negative effects. These include increased stress and discontent both in the work situation and in the employee's private life and the very real possibility of the employee becoming "burned out" which could lead to the employee not performing his /her tasks in an efficient or even adequate manner or eventually to the employee seeking other employment. Because of these concerns, I decided to call a meeting of all department heads to discuss the situation and their needs. They related to me that they and their personnel are unable to keep up with the current workload, even given the extensive overtime spent. They expressed the opinion that even if the acceptance of new development applications were stopped or drastically limited, 1 the current numbers of staff would still have to work overtime in order to adequately handle both the development applications now in progress and the additional workload caused by previous development. Because of the extensive development and the volume of work cur- rently being experienced and because freezing the acceptance of any new development applications is probably not a feasible al- ternative, the department heads and I are of the opinion that ad- ditional personnel are needed at the present time in a number of areas. Please note, however, that adding personnel at this time does not mean that we would be able to handle more applications than we currently do. Additional personnel would give us the means to: 1. Maximize efficiency by being able to thoroughly review proposed development projects. Unfortunately, because of the current situation, there are times staff either misses something that should be corrected or even times when staff is not able to address "desirable" concerns as opposed to "required" concerns. And some of these items could come back to haunt us in the future. For instance, in the Cedarvale redevelopment, engineering should probably have addressed traffic and parking concerns; but there simply were no staff members avail- able to work on this project. 2. Increase efficiency of the development system as a whole by beginning to relieve the backup of work created by the high volume of development applications already in process. 3. Reduce constant stress caused by the heavy workload and consistent overtime hours. Over a period of time, this stress could adversely affect employees' physical and /or mental health, could adversely affect efficient job performance and could lead to the City's losing valuable employees. 4. Allow the staff to function adequately in times when one or more employees are ill, both in handling con- cerns that occur while the employee is missing and in not creating a further backlog of work. Staff members would also be able to take vacations without seriously negatively affecting the current work situation or coming back to a piled up workload that cannot be handled. Therefore, staff would like to request that the Council consider adding additional personnel at this time in order to meet the current workload in the following specific areas: 2 1. Engineering: a. One development /drainage /design en- gineer, b. One transportation /traffic en- gineer, c. One senior engineering tech, and d. Two engineering techs. (Explanation: Additional personnel needed to adequately handle current volume of new and existing development applications as related to engineering con- cerns and the engineering projects these applications generate. Some of the tasks which would be handled by the new personnel are currently being done by either consultants at a very high pay rate or by interns who need a great deal of supervision - and thus use up even more time of regular personnel). 2. Streets /Equipment Maintenance: a. One maintenance worker. (Explanation: More streets and equipment to maintain. Also, even though we are currently using seasonal people to perform some of the tasks, those seasonal people require a great deal of supervision, which in turn inefficiently uses more time of the regular main- tenance personnel.) 3. Utility Maintenance: a. Two maintenance workers. (Explanation: Because of the knowledge /schooling required to perform tasks in this division, the City needs regular personnel who know what to do rather than seasonal personnel who either cannot do the tasks or have to be very closely supervised.) 4. Parks: a. One landscape architect /park plan- ner, b. One landscape technician. (Explanation: Currently, the City has only Steve Sul- livan performing as a landscape architect /park planner. He is literally required to be in too many places at once to cover all the facets of this position. With the development in Eagan, the above personnel are needed to keep pace.) 5. Planning: a. One planner to help process development applications, b. One planner for comprehensive planning /technical environment tasks. 3 (Explanation: Here again, the City has only one person attempting to cover each of the above positions. They cannot keep up with the volume of work in their own positions, much less cover for each other if one is missing.) 6. Inspections: a. One fire marshal. (Explanation: Doug Reid performed the duties of this office when the City was smaller and when he was Asst. Chief Building Official. Given the volume of work now required of him as Chief Building Official, he is un- able to adequately perform the duties of fire marshal. The fire marshal is a necessary position because of the legalities concerned with investigating fires thoroughly.) 7. Police: a. One additional investigator (for crimes against person, such as child abuse), b. One additional officer. (Explanation: Crimes against the person are increas- ing, especially child abuse cases. With the current volume of such crimes, the one investigator assigned to these cases is unable to investigate every one in a timely manner. With regard to the extra officer, this would give the City the capacity to have four officers on the street 24 hours a day.) 8. Finance: a. One accountant. (Explanation: Trained help is needed to deal with the increased activity in the Finance Department.) Please note that the above personnel are requested for the cur- rent year. Requests for additional personnel for 1989 will be forwarded to the Council when the 1989 budget is considered. It is the desire of the management team to add the above person- nel as full -time employees of the City of Eagan and not as tem- porary or contractual personnel. Full -time personnel would be more efficient in terms of commitment, training time, supervisory time, ongoing knowledge of the City's operations and, in some significant cases, compensation. However, the need for addi- tional personnel is so great that the management team would at- tempt to alleviate some of the staff problems through the use of temporary or contractual personnel. With regard to financing the additional personnel, costs could be covered through increasing fees, through increasing escrow fund- ing, or through direct charges to developers. 4 A certain base of employees is required in each department to ad- minister its workload. Because of the rapid development and growth of the City of Eagan, the current number of staff members is not adequate to handle current demands or to spend the time needed for thorough long range planning. In addition, because of the lean numbers of staff, any absences of staff members due to illness or vacations cause serious problems both for those absent staff members and for other staff members who depend on their work. We must consider whether we wish to continue to "make do" with our current numbers, with the knowledge that less work will be done less efficiently with an adverse effect on current staff members, or whether we wish to add staff members, both now and in the future, to create a base which is able to adequately handle the workload. Let us compare this situation to the water /well situation we have just experienced in the City of Eagan. In regard to water, do we wish to create a water supply system for the City which may be able to supply the minimum needs of the citizens if every machine and well is operating at peak efficiency under favorable condi- tions or do we wish to create a water supply system that allows for supplying needs under drought conditions when one or more wells malfunctions? Applying that to personnel, how do we wish to handle the personnel situation, which is also a service re- lated system and can also break down? The management team and I agree that, given the current numbers of staff, our efficiencies have already been maximized. This memo is offered for Council awareness and consideration for a resolution to the current personnel constraints. Additional dis- cussion will be provided at the workshop on Monday and, per Coun- cil direction, revenue solutions will be explored during early July in order to be able to employ additional personnel as requested. Development will continue in Eagan. Once development has oc- curred, the necessity for redevelopment will follow. There will also be a need for continuing administration of increased ongo- ing City operations. Therefore, any staff members added in the areas discussed above will not become extraneous in the future. Indeed, we will be looking at adding even more personnel during the next few years just in order to be able to address the needs of the City. City Administrator 5 MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: JUNE 16, 1988 SUBJECT: SPECIAL CITY COUNCIL MEETING TOUR OF JIM HORNE PROPERTY (OPTIONAL) As stated on the agenda and as a part of the agenda information for the the June 21 City Council packet, a tour of the Jim Horne property to consider that proposed development is optional for members of the City Council. If the City Council is able to tour the property on Monday, we will meet at 6:15 p.m. and plan to complete the tour prior to 7:00 p.m. If Councilmembers are unable to attend on Monday and would still like the opportunity to tour the property, certainly arrangements can be made either with Jim Horne or Terry Maurer for another time. STRATEGIC PLANNING /POLICE DEPARTMENT The Special City Council Meeting is divided into two (2) parts beginning at 7:00 p.m. The first item is to consider the strategic planning report that was recently completed by Police personnel. This document is enclosed for your review. The document is lengthy and contains many administrative procedures that are not relevant or necessary for the policymaker. I would suggest a type of review that allows you to familiarize yourself with the document. The Police Department will summarize the document concentrating on the issue of additional personnel needs. The City Council may wish to consider spending its review time on those sections dealing with additional personnel requirements. 1989 BUDGET The City Administrator will briefly review the schedule for preparing the 1989 Operating Budget. The Director of Finance has prepared revenue projections; copies will be available for review at the meeting. ADDITIONAL PERSONNEL The volume of pending and new development proposals is continuing to swell requiring additional staffing needs. The City Administrator has met with Department Heads on an individual basis and recently in management meetings to analyze the ever - increasing workload. The need exists now for additional personnel if development is to continue at its current pace and if the City is to provide some reasonable processing time frame for pending and existing development applications. A separate memo is enclosed addressing the issue of additional personnel for your review. Direction should be given regarding personnel needs for official ratification during the month of July. The Director of Finance has prepared a current revenue analysis of the 1988 Operating Budget; a copy is enclosed. Gene will provide alternative sources of funding additional personnel at the meeting on Monday. OTHER BUSINESS The City Administrator is not planning to address any other items of business given the regular City Council agenda and meeting for Tuesday evening. City Administrator