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10/28/2008 - City Council SpecialAGENDA SPECIAL CITY COUNCIL MEETING TUESDAY, OCTOBER 28, 2008 5:30 P.M. EAGAN ROOM-EAGAN MUNICIPAL CENTER I. ROLL CALL AND ADOPTION OF THE AGENDA ~ II. PROPOSED 2009 PUBLIC UTILITY ENTERPRISE BUDGETS: (Water, Sanitary Sewer, Street Lighting, Storm Drainage, and Water Quality) ~g III. PROPOSED 2009 CASCADE BAY BUDGET ~S IV. .PROPOSED 2009 COMMUNITY CENTER BUDGET (p~ V. PROPOSED 2009 ECVB BUDGET (o~ VI. 2009 GENERAL FUND BUDGET UPDATE ,~ ~~ VII. CONTINUED DISCUSSION OF NOISE ATTENUATION ORDINANCE VIII. OTHER BUSINESS IX. VISITORS TO BE HEARD (Per City policy, Visitors to be Heard will not be televised until after the November 4, 2008 election) X. ADJOURNMENT Agenda Information Memo October 28, 2008 Special Eagan City Council Meeting II. 2009 PUBLIC UTILITY NT P I FUN U T ACTION TO COSI R ® To provide direction to staff regarding the proposed 2009 Public Utility Enterprise Fund Budgets and to direct that they be placed on a future City Council Meeting Consent Agenda for formal ratification. Introduction The 2009 Public Utility Enterprise Funds have been prepared in a manner consistent with the format being used for all other budgets. The review process is also similar to the General Fund with sensitivity shown to the financial goals of the City. User rates will be reviewed in the usual process and incorporated into the City's annual fee schedule for City Council consideration. As part of a two year plan, sanitary sewer rates are expected to be increased at a rate higher than the other utilities. The greater rate increase results from increased costs passed along by the Metropolitan Council Environmental Services (MCES) for operations and required construction costs related to Inflow and Infiltration (I & I). No significant changes to rates are contemplated for any of the other utility operations; however, staff is recommending a comprehensive review of all utility rates/fees to be undertaken in early 2009. 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 is a copy of the Detail of Revenues for all of the utility enterprise fund divisions. 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 324 miles of mains and laterals. At year-end 2007, the City had 19,466 conneckions to the water system. Excluding depreciation, debt service, and major planned maintenance from the total for both years, the 2009 Water Utility Budget is proposed at $3,595,000, an overall operational increase of $261,100, or 7.9% from the 2008 budget of $3,333,900. Factors contributing to the 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 $811,500 and is included in the budget. Depreciation is budgeted at $1,828,100 for 2009. The additional ~/~ utilities technician worker added in the 2008 budget, but not filled because of the hiring freeze remains in the 2009 budget. The other'/2 of the position is similarly accounted for in the Sanitary Sewer division. There is an increase in the 2009 water division budget for seasonal salaries from $20,700 to $37,600. Many of the expenditures proposed in the 2009 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 an allocation of $51,500 which is entirely for computers and related computer equipment. Enclosed on pages ~ through ~ ~ is a copy of the complete 2009 budget for the Water division. Sanitary Sewer 162 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 MCES. The City's system consists of 274 miles of mains and laterals and 12 sanitary lift stations. At year-end 2007, the City had 18,810 sanitary sewer connections to the system. Excluding the depreciation costs, the City's 2009 budget provides for routine costs to maintain the collection system (19.7%), for the payments to MCES to provide for treatment (73.8%), and the I & I mitigations efforts (6.5%). Again, excluding depreciation from the total for bath years, the 2009 Sanitary Sewer Budget is proposed at $5,568,900, an overall increase of $417,700, or 8.1 % from the 2008 budget of $5,151,200. Included in various line items in the budget is a total of $359,000 that the City is committed to spending in 2009 by agreement with MCES for I & I mitigation efforts. Additional information regarding the factors contributing to the overall division increase is included in the department budget narrative to follow. The budgeted depreciation expense included in the 2008 budget is $635,800. The additional %2 utilities technician worker added in the 2008 budget, but not filled because of the hiring freeze remains in the 2009 budget. The other'/ of the position is similarly accounted for in the Water division. The 2009 sanitary sewer division budget includes an allocation of $9,700 for seasonal employee assistance. Capital outlay appropriations include $51,000 for two laptop computer ($3,000) and 12 ISCO sewer flow meters to be used ipn the I & I mitigation efforts ($48,000). Enclosed on pages ~ through I is a copy of the complete 2009 budget for the Sanitary Sewer division. f Street Li~htin~ (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 2007, 14,814 customers were being billed for approximately 3,430 neighborhood lights provided by that system. In addition, 18,949 customers were being billed for community lights (major intersection lighting, and signals). The Street Lighting proposed budget is increasing by $11,100 or 2.2% from $495,500 in 2008 to $506,600 in 2009, excluding depreciation in both years. Factors contributing to the increase are included in the department budget narrative to follow. There is no personnel accounted for in this operating budget. However, there is a depreciation expense of $12,800 included in this budget for 2009. There is no proposed capital included in the 2009 Street Lighting budget. Enclosed on pages ~ through is a copy of the complete 2009 budget for the Street Lighting utility. St®rm ®rainaae (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 2007, 18,961 customers were being billed for storm drainage/water quality. Excluding depreciation the 2009 proposed Storm Drainage budget is $194,900 reflecting a decrease of $28,600 or 12.8% from the 2008 budget of $223,500. A $40,000 reduction in capital outlay offsets an increase in electricity costs, the increase to the administrative transfer fee, and other small changes. As a reminder, the storm drainage and water quality budgets have been separated for budget and accounting purposes. The storm drainage budget reflects only those costs associated with the conveyance and maintenance of the storm drainage system. The 2009 budgeted depreciation amount included is $969,300. There are no changes proposed to the complement of personnel in the Storm Drainage utility. Capital outlay requests for consideration include $30,000 for pond dredging. Enclosed on pages ~ through is a copy of the complete 2009 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. 3 The 2009 proposed Water Quality Budget excluding depreciation is $613,700 reflecting an increase of $18,900 or 3.2% over the 2008 budget of $594,800. The 2008 budgeted depreciation amount included is $31,100. 2009 Utilities Fund revenue estimates 10/20/2008 Detail by Dept 2009 Budget PUBLIC UTILITIES ENTERPRISE FUND Detail of Revenues Actual Actual Budget Estimated Acct 2006 2007 2008 2009 DEPARTMENTAL: Water 4505 Water Service Fees $4,465,054 $4,615,870 $4,837,000 $4,985,000 4506 Water Service Penalties 15,398 17,058 15,000 17,000 4507 Water Connection Permits 7,556 4,860 7,000 4,000 4509 Sale of Meters 43,587 34,791 42,000 30,000 4511 Sale of Property 4,370 5,920 - - 4512 Water Turn Off/On Fee 11,407 6,678 8,000 8,000 4521 Constr Meter Permits 1,400 1,775 2,000 1,500 4522 Acct Deposit Not Refunded (8) (10) - - 4,548,764 4,686,942 4,911,000 5,045,500 Sanitar y Sewer 4530 Sanitary Sewer Service Fees 4,506,968 4,670,036 .5,183,000 5,560,000 4531 Sanitary Sewer Penalties 18,117 18,656 15,000 19,000 4532 San Sewer Connection Permits 6,450 4,000 5,000 4,000 4,531,535 4,692,692 5,203,000 5,583,000 Street Lights 4550 Neighborhood Light Svc Fees .303,520 314,818 285,000 320,000 4551 Neighbrhd/Comm Lt Penalties 2,050 2,251 2,000 2,200 4560 .Community Light Service Fees 96,132 177,884 222,000 188,000 401,702 494,953 509,000 510,200 Storm Drainage/Water Quality 4540 Storm Drainage Service Fees 1,047,207 1,080,317 1,133,600 1,145,800 4541 Storm Drainage Penalties 4,088 4,416 4,000 4,400 1,051,295 1, 084, 733 1,137,600 1,150,200 NON-DEPARTMENTAL: 4031 Assmt Penalties and Interest 3,279 2,481 3,000 3,000 4160 State PERA Aid 4,442 4,442 4,400 4,400 4226 Developer Escrow Reimbursmt 39,565 71,550 35,000 35,000 4228 Eng /Financial Information ~ 129 720 - 500 4242 Maint Equipment and Personnel 2,507 9,445 5,000 5,000 4243 Manual Reading-Ded Bill Meters 2,140 1,650 2,000 1,500 4376 Merchandise Sales 38 33 - - 4605 Amort on Bond Premium 36,937 36,937 37,000 36,900 4610 Interest on Investments 1,340,893 1,604,162 1,040,000 995,600 4612 Interest on Assessments 80,075 86,228 75,000 85,000 4614 Interest on MCES 1,800 940 - - 4615 Change in Fair Value of Inv 165,523 514,372 - - 4617 Antenna Lease Admn Fees 4,000 2,000 2,000 2,000 4618 Site Survey /Eng Applic Review 2,000 3,000 2,000 4619 Antenna Lease Landscape Escow 4,000 2,000 - 2,000 4620 Antenna Site Rent (excludes ECC) 140,819 376,462 305,200 320,000 4658 Vehicle Sales 3,280 7,255 - - 4672 Water Quality Dedication Fees 38,510 65,587 35,000 35,000 4675 Wetlands Conserv Appl Fee 800 100 - - 4680 Connection Charge--Water 137,676 129,191 135,000 120,000 4685 Conn Chg--Water Treatmt Plant 219,860 175,614 200,000 160,000 4691 Other Revenue 985 3,320 - - 1,000 4822 Other Reimbursements 15,017 15,604 10,000 15,000 4980 Transfers In 2,244,275 3,113,093 1,888,600 1,823,900 GRAND TOTAL 12.777.571 $14.072.413 13.649.200 14.112.800 ,~ ti._,,,:~;,. ~~ . ~,'~ ~1~~ O~~O~~ll 2009 Proposed Budget Operating 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. 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 2006 Actual 2007 Actual 2008 Estimate 2009 Target Water main breaks 11 7 10 7 Gallons of safe drinking water produced per day per capita 149 147 149 150 MN Dept. of Health samples collected 840 840 870 900 Backflow preventers tested 764 834 850 860 Meter service calls 1,613 1,669 1,600 1,600 Customer service calls 2,272 2,537 2,300 2,300 Hydrants flushed 3,874 3,909 3,900 3,900 Hydrants painted 680 537 650 650 Locates performed 8,801 8,881 8,800 8,900 ~` ~\ ~"I l...j~.~h,. :' ~, ~it~ O~ ~~~afl 2009 Proposed Budget Operating Budget Public Utilities -Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Expenditures by Category Capital Outlay 1.0% i Services &~~,.~--"" ~~ ~ ''-~--.,,. Other ~;~ `~ Charges ~ --v 72.1 - Personal _ - ~ _ -~ ~ '~ Services ----~ ~~ Parts & 21.0% Supplies 4.8% HIGHLIGHTS & CHANGES Overview: Excluding major planned capital renewal and replacement maintenance of reservoirs ($1,770,800 in 2009), depreciation, and debt service, the 2009 water budget is up $261,100, or 7.9%, due largely to increases in energy related items, expansion of customer service software programs, and a higher transfer to the General Fund. Highlight/Change 1: The Yankee Doodle and Sperry water reservoirs will be rehabilitated ($1,020,800), and the South Water Treatment plant will be upgraded ($750,000) using Renewal & Replacement (R&R) funds that have been set aside for years for these projects.. Financial Impact: There is no impact on operations funding; these projects have been funded in advance from a portion of user fees set aside for such a purpose. The 2009 R&R projects represent a $309,600 increase over R&R projects in 2008:' Service Level Impact: These projects are part of a scheduled maintenance/ upgrade program of the existing infrastructure. Highlight/Change 2: Natural gas energy costs for the wells and the treatment plant pumps for heating reflect significant increases in unit prices. Financial Impact: Increase $53,200 over the 2008 Budget Service Level Impact: There is no change in level of service. We have been able to continuously meet the community's peak demands over the years with the highest rating available from the Minnesota Department of Health. Highlight/Change 3: The cost of chemicals used in the Water Treatment process has gone up. Increases are directly related to the energy economy and competition with other industries such as fertilizer production for farming. Financial Impact: Increase of $41,500 over the 2008 budget. Service Level Impact: There is no change in level of service. The quantities of chemicals necessary to treat water production to Federal and State standards are directly related to the volume of water produced to meet the community's demand. Highlight/Change 4: To facilitate expansion and incorporation of Cityworks customer service software for all other Public Works operations, additional licenses and training will be acquired. Financial Impact: Increase of $67,200 over the 2008 budget. Service Level Impact: Past implementation on a limited basis has proven very effective in increasing operational and record management efficiencies and customer service delivery. Highlight/Change 5: Transfers to the General Fund will increase. In the past, only a portion of the utility-related direct and indirect costs incurred by the General Fund have been reimbursed. The increase in 2009 is a result of reimbursement of the full amount of utility costs currently borne by the General Fund. Financial Impact: Increase of $152,200 over the 2008 budget. Service Level Impact: There is no impact on service level. This results in a more complete allocation of costs between funds. ~~z `.,.,~r..~„? ~. ~t~y 0~ ~~~~~ 2009 Proposed Budget Operating Budget Public Utilities -Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities EXPENDITURE SUMMARY Actual Actual Budget Budget Expenditure 2006 2007 2008 2009 Personal Services $ 827,484 $ 1,001,625 $ 1,081,300 $ 1,129,000 Parts and Supplies 302,374 337,917 186,900 255,200 Services and Other Charges 1,724,433 1,972,287 3,313,700 3,866,300 Capital Outlay 591 1,370 130,700 51,500 Construction Projects (58,054) 1,001 - - Transfer Out - 125,041 - - Merchandise for Resale - - 82,500 63,800 Total $ 2,796,828 $ 3,439,241 $ 4,795,100 $ 5,365,800 Bond Payment -Principal Bond Payment -Interest Paying Agent/Bond Destrctn. Fee Debt Service Payments Depreciation Expense 675,000 715,000 725,000 735,000 181,750 149,978 112,300 76,000 - 403 500 500 856,750 $ 1,836,404 865,381 $ 1,842,954 837,800 $ 1,822,800 811,500 $ 1,828,100 .~ ., z,:L~,.-~ Cl~~ Of ~~~~II 2009 Proposed Budget Operating Budget Public Utilities -Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities POSITION INVENTORY Personnel 2006 2007 2008 2009 Hours Superintendent 0 0.67 0.67 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) 1.67 1.67 1 1 2,080 Senior GIS Technician 1 1 1 1 2,080 GIS Technician 1 1 1 1 2,080 Utilities Inspector 1 1 1 1 2,080 System Maintenance Workers 3 3 3 3 6,240 Water Treatment/Production Workers 3 4 4 4 8,320 Utility Technician 0 0 0.5 0.5 1,040 Total 12 13.67 13.5 13.5 28,087 2009 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 ~~ 1 ' ,~~,;,.1 ~l~y Of ~a~8n 2009 Proposed Budget Operating Budget Public Utilities -Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL Actual Actual Budget Budget Acct PERSONAL SERVICES 2006 2007 2008 2009 6110 SALARIES AND WAGES-REGULAR $ 602,116 $ 680,580 $ 767,400 $ 779,500 6112 OVERTIME-REGULAR 12,166 15,703 31,000 32,100 6130 SALARIES AND WAGES-TEMPORARY 22,432 44,346 18,600 33,700 6142 PERA-COORDINATED 37,128 43,495 51,900 54,800 6144 FICA 45,993 54,982 62,500 64,700 6151 HEALTH INSURANCE 85,874 99,195 119,500 128,400 6152 LIFE 1,232 1,380 - - 6154 DISABILITY -LONG TERM 2,354 2,537 - - 6155 WORKERS COMPENSATION 18,189 23,612 30,400 35,800 6157 RETIREE HEALTH INSURANCE FUNDING - 35,795 - TOTAL PERSONAL SERVICES 827,484 1,001,625 1,081,300 1,129,000 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 3,064 6,387 3,000 4,000 6211 OFFICE PRINTED MATERIAL/FORMS 204 382 200 200 6215 REFERENCE MATERIALS 355 170 - - 6220 OPERATING SUPPLIES-GENERAL 2,064 9,522 2,400 2,400 6222 MEDICAURESCUE/SAFETY SUPPLIES 1,815 1,391 1,500 1,700 6223 BUILDING/CLEANING SUPPLIES 3,212 6,452 3,200 5,000 6224 CLOTHING/PERSONAL EQUIPMENT 2,426 2,844 2,900 3,600 6230 REPAIR/MAINTENANCE SUPPLIES-GENERAL 1,262 1,108 1,200 1,200 6231 MOBILE EQUIP REPAIR PARTS 2,474 4,386 3,600 3,600 6232 SMALL EQUIPMENT REPAIR PARTS - 275 300 300 6233 BUILDING REPAIR SUPPLIES 4,069 7,751 4,000 8,000 6235 FUEL, LUBRICANTS, ADDITIVES 21,779 23,406 19,300 23,500 6240 SMALL TOOLS 2,373 504 300 500 6244 CHEMICALS & CHEMICAL PRODUCTS 64,028 83,577 49,500 91,000 6250 LANDSCAPE MATERIAL & SUPPLIES 10,015 69 2,900 2,900 6255 STREET REPAIR SUPPLIES 24,681 5,006 2,000 2,500 6257 SIGNS & STRIPING MATERIAL - - 300 300 6260 UTILITY SYSTEM PARTS/SUPPLIES 104,842 128,155 82,500 80,500 6270 COMPUTER SOFTWARE 53,711 56,532 7,800 24,000 TOTAL PARTS & SUPPLIES 302,374 337,917 186,900 255,200 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES-GENERAL 75,678 119,909 32,800 83,800 6314 AUDITING 3,800 5,300 3,900 4,000 6323 TESTING SERVICES 9,101 3,927 8,200 7,500 6346 POSTAGE 13,240 13,808 16,400 17,200 6347 TELEPHONE SERVICE & LINE CHG 4,929 4,980 5,100 5,100 6351 PAGER SERVICE FEES 577 575 800 200 6352 TELEPHONE CIRCUITS 1,524 1,524 1,600 1,600 6353 PERSONAL AUTO/PARKING 222 51 - - 6354 CAR WASHES 38 87 - - 6355 CELLULAR TELEPHONE SERVICE 2,277 1,124 3,500 2,200 6356 ONE CALL SERVICE FEE - 1,848 6,200 6,700 6370 GENERAL PRINTING AND BINDING 6,281 5,292 11,800 5,800 ~~ ~` ,;,~ ;, . CiCy of Ca~a~l 2009 Proposed Budget Operating Budget Public Utilities -Water Department (61) Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL(CONT'D~ Acct SERVICES & OTHER CHARGES Actual 2006 Budget 2007 Budget 2008 Budget 2009 63851NSURANCE $ 63,900 $ 71,900 $ 69,100 $ 73,000 6409 ELECTRICITY-WELLS/BOOSTER STN 592,005 586,935 700,000 695,800 6410 NATURAL GAS SERVICE 123,582 154,971 132,200 185,400 6425 MOBILE EQUIPMENT REPAIR LABOR 60 114 500 500 6427 BLDG OPERATIONS/REPAIR-LABOR 5,240 1,747 5,000 2,000 6429 STREET REPAIR-LABOR 17,931 13,041 18,000 11,200 6432 UTILITY SYSTEM REPAIR-LABOR 61,949 234,004 1,502,000 1,811,600 6457 MACHINERY &EQUIPMENT-RENTAL 991 3,277 - - 6476 CONFERENCES AND SCHOOLS 4,851 7,946 10,600 9,600 6477 LOCAL MEETING EXPENSE 95 64 - - 6479 DUES AND SUBSCRIPTIONS 2,784 344 3,900 4,500 6480 LICENSES, PERMITS AND TAXES 59,736 49,456 51,200 51,200 6487 VISA/MC BANK CHARGES 1,043 775 - - 6493 DAK CTY SA FEES 1,420 - - - 6505 PUBLIC UTILITYADMIN FEE 579,100 562,009 643,800 803,100 6506 TRANSFER FOR'CENTRAL SVCS 84,006 107,991 57,600 50,500 6535 OTHER CONTRACTUAL SERVICES 1,336 3,536 6,700 6,500 6539 WASTE REMOVAUSANITATION SERV 344 212 - - 6569 MAINTENANCE CONTRACTS 6,393 15,491 11,900 16,400 6575 MCES DISPOSAL CHARGES - 49 10,900 10,900 OTHER SERVICES AND CHARGES 1,724,433 1,972,287 3,313,700 3,866,300 CAPITAL OUTLAY 6640 MACHINERY/EQUIPMENT 6670 OTHER EQUIPMENT 6680 MOBILE EQUIPMENT CAPITAL OUTLAY 344 - 247 1, 370 591 1, 370 130,700 51,500 130,700 51,500 CONSTRUCTION PROJECTS 6700 CONSTRUCTION PROJECTS CONSTRUCTION PROJECTS TRANSFER OUT 6805 TRANSFER OUT TRANSFER OUT MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE MERCHANDISE FOR RESALE TOTAL WATER DEPARTMENT (58,054) 1,001 (58,054) 1,001 125,041 - 125,041 82,500 63,800 82,500 63,800 $ 2,796,828 $ 3,439,241 $ 4,795,100 $ 5,365,800 11.90% DEBT SERVICE 6490 BOND PAYMENT -PRINCIPAL 675,000 715,000 725,000 735,000 6491 BOND PAYMENT -INTEREST 181,750 149,978 112,300 76,000 6492 PAYING AGENT/BOND DESTRCTN FEE - 403 500 500 TOTAL DEBT SERVICE 856,750 865,381 837,800 811,500 6488 DEPRECIATION EXPENSE $ 1,836,404 $ 1,842,954 $ 1,822,800 $ 1,828,100 ._ ~~~ ~ City o~ Evan 2009 Proposed 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. Operating Budget The Public Utilities -Sewer Department is responsible for the following functions: • Maintain sanitary sewer collection system including pipes, manholes, and 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 2006 2007 2008 2009 Description Actual Actual Estimate Target Televised sewer pipe, in feet 69,803 104,814 70,000 80,000 Sewer pipe jetted, in miles 93 98 105 110 Sewer pipe relined, in feet 5,000 5,749 5,000 5,000 New sewer service accounts 120 111 110 100 la (, \,1 ,.,.~ ~1~~" 0~ ~a~en 2009 Proposed Budget Operating Budget Public Utilities -Sewer Department (62) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Expenditures by Category Services & Other ----_ Charges -~ 14.9% f~`.--~ Parts & Supplies 2.1 `j Personal~apital Services Outlay 8.3% 0.9% MCES Wastewater Charges 73.8% HIGHLIGHTS & CHANGES Overview: The 2009 Sewer budget is up $417,700, or 8.1 %, over 2008 due to inflow & infiltration (I&I) mitigation expenditures required by Metropolitan Council-Environmental Services (MCES), a higher transfer to the General Fund, rising fuel costs, and expansion of customer service software programs. Highliuht/Change 1: In lieu of paying a surcharge assessed by MCES for storm water that entered the sanitary sewer system, the City, along with the Minnesota Zoo (the primary source of the problem resulting in the surcharge), is investing in I&I mitigation projects including sump pump inspections, water-tight manhole covers, sewer flow meters, sewer pipe lining, and a consultant's study of meter flows. Financial Impact: The City will invest $359,000 in 2009 for these projects. The Zoo has committed to invest $548,000 in 2009. Service Level Impact: The Utility Division continues to work on identifying excessive flows from I&I during storm and snow melt events and encourages the use of water saving fixtures in homes and businesses to help minimize increases in chargeable flows to the MCES. Highlight/Change 2: Transfers to the General Fund will increase. In the past, only a portion of the utility-related direct and indirect costs incurred by the General Fund have been reimbursed. The increase in 2009 is a result of reimbursement of the full amount of utility costs currently borne by the General Fund. Financial Impact: Increase of $71,800 over the 2008 budget. Service Level Impact: There is no service level impact. Hiphlight/Change 3: Global energy issues have driven up fuel costs. The utility maintenance operation relies on a fleet of specialty vehicles that consume large quantities of fuel to provide a safe and trouble-free utility system. Financial Impact: Increase of $17,000 over the 2008 budget. Service Level Impact: There is no service level impact. Highliaht/Change 44: Acquisition of additional licenses of the customer service software program Cityworks will facilitate its expansion and incorporation department-wide for all other Public Works operations. Financial Impact: Increase of $12,000 over the 2008 budget. Service Level Impact: Past implementation on a limited basis has proven very effective in increasing operational and record management efficiencies and customer service delivery. EXPENDITURE SUMMARY Actual Actual Budget Budget Expenditure 2006 2007 2008 2009 Personal Services $ 374,437 $ 414,476 $ 436,000 $ 459,900 Parts and Supplies 92,799 177,504 92,200 117,900 Services and Other Charges 605,735 641,551 590,700 828,200 MCES Disposal Charges 3,403,331 3,498,969 4,002,300 4,111,900 Capital Outlay 13,774 38,432 30,000 51,000 Transfer Out 79,037 - - - Total $ 4,569,113 $ 4,770,932 $ 5,151,200 $ 5,568,900 Depreciation Expense $ 614,589 $ 636,225 $ 610,400 $ 635,800 ~J ~ti ~t ~.>JkY~., -~ ~,.~ ~1~~ 0~ ~8~8fl 009 Proposed Budget perating Budget Public Utilities -Sewer Department (62) Responsible Manager: Wayne Schwanz, Superintendent of U tilities POSITION INVENTORY Personnel 2006 2007 2008 2009 Hours Superintendent 0 0.33 0.33 0.33 693 Utilities Operations Supervisor 0.67 0.67 0.67 0.67 1,387 System Maintenance Workers 5 4 4 4 8,320 Administrative Assistant (System Analyst) 0.33 0.33 0 0 - Utility Technician 0 0 0.5 0.5 1,040 Total 6 5.33 5.5 5.5 10,400 2009 WORK PLAN Activity Routine 1 Sanitary sewer administration 2 Sanitary Field Operation/Repair 3 Storm sewer field maintenance 4 Emergency call outs e~ r-,. •~ ~.~, ~1~~ Of ~8~1811 2009 Proposed Budget Operating Budget Public Utilities -Sewer Department (62) Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL Actual Actual Budget Budget Acct PERSONAL SERVICES 2006 2007 2008 2009 6110 SALARIES AND WAGES-REGULAR $ 265,895 $ 283,383 $ 303,100 $ 317,900 6112 OVERTIME-REGULAR 5,092 13,292 13,700 ' 14,200 6130 SALARIES AND WAGES-TEMPORARY 15,227 21,401 9,300 8,400 6131 OVERTIME-TEMPORARY 252 472 - - 6142 PERA-COORDINATED 16,061 18,455 20,600 22,400 6144 FICA 21,493 23,546 24,900 26,000 6151 HEALTH INSURANCE 36,925 37,752 43,100 45,600 6152 LIFE 499 600 - - 6154 DISABILITY- LONG TERM 949 1,090 - - 6155 WORKERS COMPENSATION 12,044 14,485. 21,300 25,400 6157 RETIREE INSURANCE FUNDING - - - TOTAL PERSONAL SERVICES 374,437 414,476 436,000 459,900 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 1,556 5,052 2,100 5,000 6220 OPERATING SUPPLIES-GENERAL 911 2,574 1,000 1,000 6222 MEDICAL/RESCUE/SAFETY SUPPLIES 1,017 900 1,200 1,200 6223 BUILDING/CLEANING SUPPLIES 406 327 100 300 6224 CLOTHING/PERSONAL EQUIPMENT 2,137 .931 1,400 1,700 6230 REPAIR/MAINTENANCE SUPPLIES- - 516 - 500 6231 MOBILE EQUIP REPAIR PARTS 3,.169 2,732 5,200 3,200 6235 FUEL, LUBRICANTS, ADDITIVES 16,772 21,052 16,300 29,100 6240 SMALL TOOLS 530 59 200 200 6241 SHOP MATERIALS - 248 - - 6255 STREET REPAIR SUPPLIES 407 2,158 1,000 1,000 6257 SIGNS & STRIPING MATERIAL - 91 200 200 6260 UTILITY SYSTEM PARTS/SUPPLIES 17,947 94,468 63,500 62,500 6270 COMPUTER SOFTWARE 47,947 46,396 - 12,000 TOTAL PARTS & SUPPLIES 92,799 177,504- 92,200 117,900 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES-GENERAL 27,908 22,204 18,600 146,500 6312 ENGINEERING 14,197 - - - 6314 AUDITING 3,800 5,300 3,900 3,900 6346 POSTAGE 13,194 12,745 16,400 17,200 6347 TELEPHONE SERVICE & LINE CHG 4,557 7,752 4,400 4,600 6351 PAGER SERVICE FEES 484 345 300 300 6352 TELEPHONE CIRCUITS 2,292 2,165 2,000 2,000 6353 PERSONAL AUTO/PARKING 199 11 - - 6355 CELLULAR TELEPHONE SERVICE 1,975 1,357 1,900 1,900 6356 ONE CALL SERVICE FEES 13,155 12,453 6,400 6,700 6370 GENERAL PRINTING AND BINDING 731 125 - 6385 INSURANCE 14,700 13,800 15,900 13,000 6405 ELECTRICITY 220 239 - - 'l ~. ~~~~ ~~ ~~~~~~ 2009 Proposed Budget Operating .Budget Public Utilities -Sewer Department (62) Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL(CONT'D~ 6408 ELECTRICITY-LIFT STATIONS 6425 MOBILE EQUIPMENT REPAIR LABOR 6427 BUILDING OPERATIONS/REPAIR-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 REMOVAL/SANITATION 6563 LANDSCAPING 6569 MAINTENANCE CONTRACTS 6575 MCES DISPOSAL CHARGES OTHER SERVICES AND CHARGES CAPITAL OUTLAY 6640 MACHINERY/EQUIPMENT 6670 OTHER EQUIPMENT 6680 MOBILE EQUIPMENT CAPITAL OUTLAY TRANSFER OUT 6805 TRANSFER OUT TRANSFER OUT Actual Budget Budget Budget 2006 2007 2008 2009 $ 19,111 $ 18,988 $ 21,000 $ 22,500 129 2,346 1,000 1,000 5,240 4,367 1,000 1,000 6,058 - 1,000 1,000 - - 400 400 147,290 201,734 148,000 185,500 401 - 1,000 1,000 5,165 3,643 3,900 3,900 57 175 300 300 347 22 - - 3,772 333 1,000 1,000 1,043 775 - - 279,116 267,483 306,400 381,800 38,684 52,817 28,800 25,200 - 1,343 5,300 5,300. 344 190 - - - 5,143 - - 1,566 3,696 1,800 2,200 3,403,331 3,498,969 4,002,300 4,111,900 4,009,066 4,140,520 4,593,000 4,940,100 13,288 33,757 - - - - 30,000 51,000 486 4,675 - - 13,774 38,432 30,000 51,000 79,037 - - - 79,037 - - - TOTAL SEWER DEPARTMENT $ 4,569,113 $ 4,770,932 $ 5,151,200 $ 5,568,900 8.11% 6488 DEPRECIATION EXPENSE $ 614,589 $ 636,225 $ 610,400 $ 635,800 ~~ .~ ,, ~~.. ' City 0~ ~8~1~l1 2009 Proposed Budget Public Utilities -Street Lighting (63) Responsible Manager: Russ Matthys, City Engineer Operating Budget PURPOSE & DESCRIPTION The purpose of the Public Utilities -Street Lighting Department is to: • Provide adequate lighting for public safety on city streets and at signalized intersections within the City of Eagan. • 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: • 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 2006 2007 2008 2009 Description Actual Actual Estimate Target Street lights installed/upgraded 46 69 34 34 Traffic signals installed 1 1 0 0 ~~ ~\ ~l .~~, CI~~ 0~ ~O~1a11 2009 Proposed Budget Operating Budget Public Utilities -Street Lighting Department (63) Responsible Manager: Russ Matthys, City Engineer Expenditures by Category Services & Other '~ ~>~ Charges 100% HIGHLIGHTS & CHANGES Overview: The Street Lighting budget shows an increase of $11,100 or 2.2% due largely to programmed installations under the approved CIP and also reflects projected increases in electricity rates. Hiphlipht/Change 1: An 11% increase in energy costs is projected due to global energy and economic issues. Traffic signals are operational 24 hrs per day, 365 days per year with individual meters. Although street lights are activated by photo-electric sensors, they are billed on a projected number of non-daylight hours per year. Financial Impact: Increase of $6,100 over the 2008 budget for signals and street light electricity. Service Level Impact: None. LINE ITEM DETAIL Actual Actual Budget Budget Acct SERVICES & OTHER CHARGES 2006 2007 2008 2009 6315 FINANCIAL -NON-AUDIT $ 2,800 6406 ELECTRICITY-STREET LIGHTS $ 320,825 $ 305,085 365,700 $ 368,600 6407 ELECTRICITY-SIGNAL LIGHTS 15,669 15,268 15,600 18,800 6411 UTILITY SYSTEM STREETLIGHT (5,655) 11,336. 32,000 31,000 6432 UTILITY SYSTEM REPAIR-LABOR 35,571 21,287 41,200 42,700 6505 PUBLIC UTILITY ADMIN FEE 29,000 30,700 32,200 39,500 6535 OTHER CONTRACTUAL SERVICES 404 3,486 6,000 6,000 OTHER SERVICES AND CHARGES 395,815 387,162 495,500 506,600 TOTAL STREET LIGHTING DEPARTMENT $ 395,815 $ 387,162 $ 495,500 $ 506,600 2.24% 6488 DEPRECIATION EXPENSE $ 12,797 $ 12,797 $ 12,800 $ 12,800 lk ., ,'~ ~, ,~:~,'' City of ~a~a~ 2009 Proposed 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. Operating Budget The Public Utilities -Storm Drainage Department is respohsible 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 2006 2007 2008 2009 Description Actual Actual Estimate Target Televised storm pipes, in miles 5,000 6,139 5,000 5,500 Drainage complaints received 15 32 18 20 Construction inspections performed 134 190 160 175 Ponds inspected 140 176 140 150 Control structures checked 142 116 100 110 I~ (. ,.. 1 ~s, Clay Of ~B~IOII 2009 Proposed Budget Operating Budget Public Utilities -Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities Expenditures by Category Capital Outlay 15 4% Personal . - -__ Services Services & ~~r_._- ~ ____ __ 20.1% ``,,~ Other Charges 58.5% _. ., , Parts & ,~.~- Supplies 6.1 HIGHLIGHTS & CHANGES Overview: The Storm Drainage budget is down $28,600, or (12.8)%, primarily due to a reduction in capital equipment purchases, partially offset by increases in electrical costs. Highlight/Chanae 1: The budget estimate for electricity for pumping stations is weather dependent. A comparison was made to the last 10- year average precipitation amount and to the last 4-year average of actual costs. Energy costs are difficult to accurately predict as they are closely tied to weather. An 11 % increase in energy rates is expected from the electric supplier. Financial Impact: Increase of $9,700 from 2008. Service Level Impact: It is a necessity to run the storm water pumping stations as pond and lake levels dictate based on rainfall amounts to prevent flooding of adjacent property. Highlipht/Change 2: Various lakes, ponds and detention basins scattered throughout the system are slowly starting to fill up with sediment and debris, requiring major excavation and dredging improvement to restore the pond basin to its original storage capabilities. Financial Impact: No change from 2008. This is anticipated to be an ongoing maintenance program; a $30,000 capital allocation is proposed annually. Service Level Impact: The various lakes, ponds and storm water detention basins need to be maintained to insure that the original storage capacity is maintained and that the storm drainage capabilities of the ponds can operate unimpeded, thereby preventing flooding of adjacent properties. EXPENDITURE SUMMARY Actual Actual Budget Budget .Expenditure 2006 2007 2008 2009 Personal Services $ 131,812 $ 132,008 $ 36,300 $ 39,100 Parts and Supplies 24,027 16,500 11,600 11,800 Services and Other Charges 114,187 135,893 105,600 114,000 Capital Outlay 337 107 70,000 30,000 Total $ 270,363 $ 284,508 $ 223,500 $ 194,900 Depreciation Expense $ 968,877 $ 970,848 $ 967,100 $ 969,300 Q tf ., ~. ~~~~ 0~ ~~~~~ 2009 Proposed Budget Operating Budget Public Utilities -Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities POSITION INVENTORY Personnel 2006 2007 2008 2009 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 2009 WORK PLAN Activity Routine 1 Inspection/clean-up of structures 2 Lift station maintenance 3 Weed harvesting 4 Water quality support 5 Aeration 6 Storm response al r 1 ~~' ,~~ Clay O~ Ca~811 2009 Proposed Budget Operating Budget Public Utilities -Storm Drainage Department (64) Responsible Manager: Wayne Schwanz, Superintendent of Utilities LINE ITEM DETAIL Actual Actual Budget Budget Acct PERSONAL SERVICES 2006 2007 2008 2009 6110 SALARIES AND WAGES-REGULAR $ 95,120 $ 92,882 $ 25,400 $ 26,300 6112 OVERTIME-REGULAR 857 1,225 1,100 1,100 6130 SALARIES AND WAGES-TEMPORARY 6,036 6,734 - - 6142 PERA-COORDINATED 5,742 5,909 1,700 1,900 6144 FICA 7,190 7,365 2,000 2,100 6151 HEALTH INSURANCE 13,082 13,928 5,100 5,500 6152 LIFE 195 205 - - 6154 DISABILITY -LONG TERM 373 376 - - 6155 WORKERS COMPENSATION 3,217 3,384 1,000 2,200 TOTAL PERSONAL SERVICES 131,812 132,008 36,300 39,100 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 245 449 100 400 6220 OPERATING SUPPLIES-GENERAL 28 192 500 300 6222 MEDICAURESCUE/SAFETY SUPPLIES - 18 200 100 6224 CLOTHING/PERSONAL EQUIPMENT 539 294 300 400 6231 MOBILE EQUIPMENT REPAIR PARTS - 854 - 100 6232 SMALL EQUIPMENT REPAIR PARTS - - 100 100 6234 FIELD/OTHER EQUIPMENT REPAIR - 67 100 100 6240 SMALL TOOLS 5 42 300 300 6250 LANDSCAPE MATERIAL & SUPPLIES 552 - - - 6255 STREET REPAIR SUPPLIES 192 - - - 6260 UTILITY SYSTEM PARTS/SUPPLIES 17,549 10,603 10,000 10,000 6270 COMPUTER SOFTWARE 4,917 3,981 - - TOTAL PARTS & SUPPLIES 24,027 16,500 11,600 11,800 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES-GENERAL 22,658 18,854 - 300 6370 GENERAL PRINTING AND BINDING 737 - - - 6385 INSURANCE 8,100 8,000 8,800 3,100 6408 ELECTRICITY-LIFT STATIONS 51,806 61,299 63,000 72,700 6427 BUILDING OPERATIONS/REPAIR-LAB - 1,086 - - 6432 UTILITY SYSTEM REPAIR -LABOR 5,074 24,000 9,900 9,900 6457 MACHINERY AND EQUIPMENT 338 280 1,000 500 6476 CONFERENCES AND SCHOOLS 408 381 200 200 6480 LICENSES, PERMITS AND TAXES 3,500 - - - 6505 PUBLIC UTILITYADMIN FEE 20,400 21,600 22,700 26,300 6569 MAINTENANCE CONTRACTS 1,166 393 - 1,000 OTHER SERVICES AND CHARGES 114,187 135,893 105,600 114,000 CAPITAL OUTLAY 6630 OTHER IMPROVEMENTS - - 30,000 30,000 6640 MACHINERY/EQUIPMENT - - - - 6670 OTHER EQUIPMENT - - 40,000 - 6700 CONSTRUCTION PROJECTS 337 107 - - CAPITAL OUTLAY 337 107 70,000 30,000 TOTAL STORM DRAINAGE DEPARTMENT $ 270,363 $ 284,508 $ 223,500 $ 194,900 -12.80% 6488 DEPRECIATION EXPENSE $ 968,877 $ 970,848 $ 967,100 $ 969,300 ~~ .~ ~~~~ 0~ ~~~~~~ 2009 Proposed Budget Operating Budget Public Utilities -Water Quality (65) Responsible Manager: Eric Macbeth, Water Resource Coordinator -,,,d PURPOSE & DESCRIPTION '1 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. ~ :, ~ a~ ~'~ '~ -',` ,~ `' ~ ', 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. ~.._, ~,, ;,,~~~il~i,~ ~'~ ` ~~ , _~-"- ~~ • 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 2006. 2007 2008. 2009 Description Actual Actual Estimate Target Lakes, ponds monitored in long-term program 19 19 19 19 Lakes, ponds aerated in winter for fisheries 5 12 6 8 Loads of aquatic plants removed from lakes 106 63 75 75 Lakes, ponds treated with alum 7 7 6 6 Impaired-Water/TDML studies 0 2 2 2 Climb Theatre performances in K-12 schools 6 6 6 6 Youth Fishing Program participants N/A N/A 100 100 3 . ,,. ~~ Clay of ~a~an 2009 Proposed Budget Operating Budget Public Utilities -Water Quality Department (65) Responsible Manager: Eric Macbeth, Water Resource Coordinator HIGHLIGHTS & CHANGES Expenditures by Category Personal Overview: The Water Quality budget shows an Servi oes Parts & overall increase of $18,900 or 3.2%. The major 56.3/° _ Supplies increases relate to the initiation of a new mandated -'`~ ~ 7s% Total Maximum Daily Load Water Quality f ~ Assessment program, street sweeper repair costs, r and a higher transfer to the General Fund. Ca ital Services & p --~ other Highlight/Change 1: Recent enforcement of the Outoay Charges 0.8 /° 35.3% Federal Clean Water Act mandates that cities monitor and reduce pollutant loadings to established Total Maximum Daily Loads. This requires the assistance of Professional Planning services to conduct these studies. Financial Impact: Increase of $12,000 over the 2008 budget. Service Level Impact: This is a new program placing an additional work load on existing staff that may delay the implementation or completion of other lower priority services/programs. Highlight/Change 2: Significant increase in fuel costs and equipment parts for specialty street sweeper vehicles due to global energy and economic issues. Financial Impact: Increase of $5,000 over the 2008 budget. Service Level Impact: No change in service delivery is anticipated. Highlight/Change 3: Reduction in Computer software. Financial Impact: Decrease of $9,500 over the 2008 budget. Service Level Impact: This decrease results from the acquisition of the one time software program during 2008. The quality of services, data management and analyses provided for Water Quality will increase into the future. Highlight/Change 4: Transfers to the General Fund will increase. In the past, only a portion of the utility-related direct and indirect costs incurred by the General Fund have been reimbursed. The increase in 2009 is a result of reimbursement of the full amount of utility costs currently borne by the General Fund. Financial Impact: Increase of $10,300 over the 2008 budget. Service Level Impact: There is no impact on service level. This results in a more complete allocation of costs between funds. EXPENDITURE SUMMARY Actual Actual Budget Budget Expenditure 2006 2007 2008 2009 Personal Services $ 229,392 $ 271,020 $ 337,300 $ 345,300 Parts and Supplies 28,469 26,444 47,200 46,900 Services and Other Charges 224,677 239,244 208,500 216,500 Capital Outlay 2,814 1,357 1,800 5,000 Total $ 485,352 $ 538,065 $ 594,800 $ 613,700 Depreciation Expense $ 58,124 $ 58,124 $ 34,300 $ 31,100 ~~ •~ l '; ~ CfG o~ Ba 811 ~ ~ 2009 Proposed Budget Operating Budget Public Utilities -Water Quality Department (65) Responsible Manager: Eric Macbeth, Water Resource Coordinator POSITION INVENTORY Personnel 2006 2007 2008 2009 Hours Water Resources Coordinator 1 1 1 1 2,080 Water Resources Specialist 1 1 1 1 2,080 Water Resources Assistant/Technician 1 1 1 1 2,080 System Maintenance Worker 0.5 0.5 0.5 0.5 1,040 Operations Support Specialist 0.5 0.5 0.5 0.5 1,040 Clerical Technician 0.5 0.5 0.5 0.5 1,040 Total 4.5 4.5 4.5 4.5 9,360 2008 WORK PLAN Activity Routine 1 Program administration/staff supervision/operations & clerical support 2 Monitor & manage water resources and relevant land use activities 3 Expanded monitoring/coordination for required Impaired Waters/TMDL studies 4 Enhance recreational fishing; assess ecological conditions 5 Special projects/research 6 Public education/involvement 7 Public relations/customer service 8 Interagency coordination/partnerships 9 Professional development/training ' 10 Coordination for required Stormwater Pollution Prevention Plan ,~ l ~. _J ? Ci~~ of Ea~a~ LINE ITEM DETAIL Actual Actual Budget Budget Acct PERSONAL SERVICES 2006 2007 2008 2009 6110 SALARIES AND WAGES-REGULAR $ 171,702 $ 208,520 $ 253,700 $ 257,300 6112 OVERTIME-REGULAR 30 - - - 6130 SALARIES AND WAGES-TEMPORARY 12,152 2,517 4,500 5,500 6142 PERA-COORDINATED 10,160 12,814 16,500 17,400 6144 FICA 12, 568 15,123 19, 800 20,100 6151 HEALTH INSURANCE 19,082 27,292 37,200 39,200 6152 LIFE 372 454 - - 6154 DISABILITY -LONG TERM 713 843 - - 6155 WORKERS COMPENSATION 2,613 3,457 5,600 5,800 TOTAL PERSONAL SERVICES 229,392 271,020 337,300 345,300 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 105 24 100 100 6215 REFERENCE MATERIALS - 77 200 200 6220 OPERATING SUPPLIES-GENERAL 2,566 1,111 2,000 2,000 6222 MEDICAURESCUE/SAFETYSUPPLlES 29 - 100 100 6224 CLOTHING/PERSONAL EQUIPMENT 161 377 300 300 6231 MOBILE EQUIP REPAIR PARTS 10,753 12,081 10,700 14,000 6232 SMALL EQUIPMENT REPAIR PARTS 53 - 200 200 6234 FIELD/OTHER EQUIPMENT REPAIR 56 - 500 500 6235 FUEL, LUBRICANTS, ADDITIVES 7,082 8,712 10,300 15,300 6240 SMALL TOOLS 36 78 200 200 6244 CHEMICALS & CHEMICAL PRODUCTS 6,269 2,553 7,100 7,500 6250 LANDSCAPE MATERIAL & SUPPLIES 172 357 5,000 3,000 6257 SIGNS & STRIPING MATERIAL 1,187 1,074 1,000 3,500 6270 COMPUTER SOFTWARE - - 9,500 - TOTAL PARTS & SUPPLIES 28,469 26,444 47,200 46,900 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES-GENERAL (20,408) 76,178 30,000 10,000 6312 ENGINEERING 9,754 - 7,000 5,000 6313 PLANNING 121,021 11,387 30,000 42,000 6323 TESTING SERVICES 20,565 24,326 25,000 26,000 6346 POSTAGE 71 26 100 100 6353 PERSONAL AUTO/PARKING 220 173 200 200 6355 CELLULAR TELEPHONE SERVICE 123 528 700 600_ 6359 LEGAL NOTICE PUBLICATION - - 200 100 6370 GENERAL PRINTING AND BINDING 4,502 5,001 2,000 4,100 63851NSURANCE 4,000 3,900 4,300 8,100 6405 ELECTRICITY 776 396 1,600 1,600 6426 SMALL EQUIPMENT REPAIR-LABOR 460 - - - 6457 MACHINERY AND EQUIPMENT - - 200 200 6475 MISCELLANEOUS 7 54 300 300 6476 CONFERENCES AND SCHOOLS 2,641 2,080 2,900 2,200 6477 LOCAL MEETING EXPENSES 70 97 300 300 6479 DUES AND SUBSCRIPTIONS 897 334 400 400 6480 LICENSES, PERMITS AND TAXES 244 958 300 300 6495 WATERSHED MANAGEMENT ASSESSMNT 17,004 30,376 36,400 38,500 6505 PUBLIC UTILITY ADMIN FEE 50,000 52,900 55,500 65,800 6535 OTHER CONTRACTUAL SERVICES 4,650 22,450 2,600 2,600 6860 COST SHARING PAYMENTS 8,080 8,080 8,500 8,100 OTHER SERVICES AND CHARGES $ 224,677 $ 239,244 $ 208,500 $ 216,500 2009 Proposed Budget Operating Budget Public Utilities -Water Quality Department (65) Responsible Manager: Eric Macbeth, Water Resources Coordinator ~~ \~l `'~ ~ ~iC of Ea an y ~ 2009 Proposed Budget Operating Budget Public Utilities -Water Quality Department (65) Responsible Manager: Eric Macbeth, Water Resources Coordinator LINE ITEM DETAIL (CONT'D~ Actual Budget Budget Budget Acct CAPITAL OUTLAY 2006 2007 2008 2009 6660 OFFICE FURNISHINGS & EQUIPMENT $ - $ 1,357 $ - $ 2,600 6670 OTHER EQUIPMENT 2,814 - - 2,400 6680 MOBILE EQUIPMENT - - 1,800 - CAPITALOUTLAY 2,814 1,357 1,800 5,000 TOTAL WATER QUALITY DEPARTMENT $ 485,352 $ 538,065 $ 594,800 $ 613,700 3.18% 6488 DEPRECIATION EXPENSE $ 58,124 $ 58,124 $ 34,300 $ 31,100 ~~ Agenda Information Memo October 28, 2008 Special Eagan City Council Meeting III. 2009 A C AY lJ T A Tl N T N 1 ® To provide direction to staff on the 2009 Cascade Bay operating budget, and to direct that it be placed on a future City Council Meeting Consent Agenda for formal ratification. The Cascade Bay operating budget for 2009 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 Seydell Johnson, Director of Administrative Services VanOverbeke, and Chief Financial Officer Pepper have met and reviewed the proposed revenue estimates, and expenditure requests included in this budget. The proposed 2009 budget is balanced at $1,188,500. This is a status quo budget compared to the 2008 budget approved at exactly the same dollar amount. More detail is provided in the following sections of this memo. The budget does not propose a rate change for the 2009 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. A ndance The proposed 2009 budget is again based on an estimated attendance of 125,000 as was the 2008 budget. The actual attendance for 2008 was 117,894. The following is a table displaying attendance for eight years of operation and for two years of budget estimates for Cascade Bay. Cascade Ba Attendance Summa 1999 2000 2001 2002 2003 2004 2006 2006 2007 2008 2009 Attendance Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Budget Season Pass Admissions 77,852 64,384 66,229 55,395 48,832 28,403 38,339 38,223 33,975 38,000 36,000 Daily Admissions 72,843 70,457 82,794 68,383 82,112 53,801 72,976 69,924 61,271 65,000 67,000 Group or Birthday 10,129 16360 19,086 17 814 17 576 18,288 17,381 22 158 20 632 22 000 22,000 Total Attendance 180,824 151,201 168,109 141,692 148,620 100,492 128,698 130,306 116,878 126,000 126,000 Sold 9,100 7,800 7,000 6,175 5,275 4,120 3,940 3,609 3,697 3,800 3,800 Rounds of Golf n/a n/a n/a n/a n/a n/z Na 8,293 7,706 10,000 7,000 As a reminder, the facility was built based on estimated average attendance of 135,000. The average attendance over the ten year period (1999-2008) calculates to 136,351. The average attendance over the last five year period (2004-2008)~calculates to 118,683. 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. avenues Enclosed on page is a copy of actual revenues far the years 2006 and 2007, the budgeted revenues for 2008, and estimated revenues for 2009. 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 section outlining both challenges and brainstorming ideas for 2009. Expenditures Personnel There are no changes to the personnel section of the Cascade Eay budget and it continues to reflect the organizational changes made in recent years. Those changes have resulted in increased efficiency and cost control. As a complimentary facility, the personnel section for Civic Arena is also presented with this proposed budget to allow the City Council to see the total staffing for the campus recreational facilities. In addition to the regular employees included in the tables, the proposed 2009 budget includes $360,000 in wages for seasonal employees which is the same amount as included in the 2008 budget. The total personal services budget is increasing by $11,600 or 2.0%. 9 iVon-Personnel il~inor adjustments are made in numerous line items to align appropriations with actual historical expenditures while accounting for the extraordinary inflationary increases. Consistent with previous years, this proposed budget provides far debt service payments. The 2009 payments total $163,200 on the $1,200,000 borrowed from the housing fund and the $800,000 loan from the Community Investment Fund. Enclosed on pages J through is a copy of the complete budget for 2009. The calculated renewal and replacement account is funded at $67,200 for 2009. Enclosed on pages '~I- ( and ~I- is a copy of the Cascade Bay Renewal and Replacement Schedule. Capital Outlax There is no capital outlay proposed to be financed from current operations in the preliminary 2009 Budget. There is one item proposed for replacement at a cost of $20,000 for which renewal and replacement dollars have been set aside. Included for consideration on page ~_ is a copy of the capital outlay request form for replacement of the locker room floors. Since this is not to be financed through the current year operations, the appropriation is not included in the operating budget. Financing would be through retained earnings and the renewal and replacement account. Revenue/Expenditure ummary Enclosed on page ~- is a copy of a high level summary of revenues, expenditures, and other disbursements from 1999 through the estimated results of the 2009 budget. The net available component of retained earnings/cash at 12-31-07 is $500,375. Since the fund should have $585,707 set aside in the renewal and replacement account, retained earnings is actually $85,332 behind the base line non-committed cash position. This status has improved by approximately $50,000 as a result of 2008 operations. The deficit situation results primarily from the significant repairs made to the facility in 2005 and the construction of Captain's Course. Osarvatii®ns• While not specific to the proposed 2009 Cascade Bay budget, the following information in bullet fashion helps provide perspective to past and future operations of the facility. ~~ 2008 es®n ec~ • In checking with other outdoor water parks in the metro area, Cascade Bay experienced a very similar year. Attendance was very slow in June, picked up slightly in July and everyone had a very successful Augusf. Cascade Bay was also able to capture more attendance as it was the only water park open the last week in August. In general most facilities were slightly behind on their revenue and attendance projections feeling that the economy was a big factor. Attendance did not meet the 125,000 projection for the year. The preliminary attendance totals are approximately 118,000 compared to 115,878 in 2007. Season pass sales fell short of the 4,100 projection by approximately 400 passes and was slightly lower than 2007. • Attendance in 2007: 0 0 days with 3-4,000 0 18 days with 2-3,000 o. 42 days with 1-2,000 0 16 days with 500-1,000 0 12 days with <500 0 0 days were closed for the whole day • Concessions sales were slightly lower than in 2007 but still very strong. • Regular paid admissions were approximately 4,000 more than in 2007. • After 5 pm admissions were higher than in 2007 primarily due to an August promotion of offering $5 after 5 pm admission. This was a very popular option and had people waiting in line most days to take advantage of the promotion. • Morning activities (water walking, lap swimming, water aerobics) were again very popular and fairly consistent with previous years. • Group revenues are expected to exceed projections and continue to be a strong and consistent revenue base. Cascade Bay is known for its safe, clean and family friendly environment which is why it remains the top choice of water park field trips for many groups. • Captain's Course continues to be an enhancement to the water park primarily for groups and new visitors. While rounds of golf did not meet projections for 2008, it provides an activity for those who want a break from the water. The pre and post season activity has been very minimal. ~~ hallnaa and rains#ormin for 2009 The 2009 budget shows a 0% increase in expenses and revenue. Controlling expenses will be key to making the budget work while finding non-traditional opportunities to expand revenue. o Capturing the limited disposable income available to many people will be a primary faces. The reduced admission rate after 5 p.m. proved to be a very popular option for many people. If this is continued during the 2009 season it is expected to increase the after 5 p.m. attendance that is traditionally slow. o Recognize the financial limitations and slowing economy by capitalizing on Cascade Bay's reputation as a safe, clean and family friendly facility. Develop promotional days/events that will make Cascade Bay the most affordable family outing. o Keep daily admission people coming back by developing a customer rewards program. o Monitor energy consumption and make modifications as needed to mitigate costs. o Monitor staffing levels to ensure the health and safety of guests but ensure that the staffing models are best meeting the overall goals of the facility. ® The opening of Apple Valley's lazy river will present competition in an area where we have been the leader. o Again we will need to recognize the financial limitations of many people and continue to offer the quality service and enviror~in~ent that creates Cascade Bay loyalty. o Non-traditional experiences that are found only at Cascade Bay will be cultivated to take advantage of both peak and non-peak hours. o Hiring and training staff to excel in customer service delivery. o Work closely with area hotels and ECVB to promote Cascade Bay to visitors to the area. o Cross market Cascade Bay with events and activities at ECC, Parks and Recreation special events or programs or Civic Arena events. o Work with the Wescott Library on programs that can cross over to Cascade Bay. o Develop and implement unique classes/events to use Cascade Bay during non-traditional times: ^ Fly fishing class in the Lazy River ® Adult only evening events that might include adult beverages and snacks. ® Expanded swim lessons and lifeguard training ® Aggressively solicit local sponsorships for Community event to support local food shelves or other community benefit. • Happy Birthday Cascade Bay! Although Cascade Bay will be going into its 11 to year of operation most people see 2009 as Cascade Bay's 10tH birthday. Ideas are starting to formulate to capture the excitement of a birthday party and celebration that can last during the 2009 season. Primary focus in 2009 will be creating added value or service to guests to maintain Cascade Bay loyalty. Sumrv~arv There is a great deal of material presented with this budget proposal to assist the City Council in its consideration of the 2009 budget. The 2009 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. ~~ ~~scad~ ay ate ~ pa~'a~oa~ 1999 20(30 2001 2002 2003 2004 2005 2006 2007 2008 2009 Daily ~idms~ion +.SO$ +..25 +.25 +1.00 > 42" 7.00 7.50 7.50 7,75 8.00 8.00 8.00 8,00 9A0 9.00 9,00 < 42" 4.50 5.00 5.00 5,75 6,00 b.00 6.00 6.00 7.00 7.00 7.00 > 62 years 4.50 5.00 5.00 5.75 6.00 6.00 6.00 6,00 .7.00 7.00 7.00 < 18 months free free free Free Free Free Free Free Free Free Free ~it~r ~ sirn Aaln.~l~;-s^n -,~~.(70 > 42" 5.00 5.50 5.50 5.75 6.00 6.00 6.00 6,00 7.00 7.00 5.00 < 42 " 3.50 4.00 4.00 4.25 4.50 4.50 4.50 4.50 5.00 5.00 3.00 > 62 years 3,50 4.00 4.00 4.25 4.50 4S0 4.50 4.50 5,00 5,00 3.00 < 18 months Free free free Free Free Free Free Free Free Free Free Iteeident Season Passes +3.00 +2.00 +2.00 1 member 48.00 5L00 51.00 51,00 53.00 53.00 53.00 53.00 55.00 55.00 55.00 Add'1 member> 42" 38,00 41.00 41,00 41,00 43.00 43.00 43.00 43.00 45A0 45.00 45A0 Add'1 member <42" 25.00 27.00 2 7,00 27,00 29.00 29.00 29,00 29.00 31.00 31.00 31,00 Add'i member>52 yrs. 25.00 27A0 27.00 27.00 29.00 29.00 29.00 29.00 31.00 31.00 31.00 Add'1 xrlember < 18 mos Free Free Free Free Free Free Free Free Free Free Free ResidentPassesaa~• ~ Pm ' +.3.00 +2.00 +5.00 1~`meber 40.00 43,00 43.00 43.00 45,00 45.00 45.00 45.00 50.00 50,00 ills Add'i member> 42" 30,00 33.00 33.00 33.00 35,00 35,00 35,00 35,00 40,00 40.00 11/a Add'1 member <42" 20.00 22.00 22.00 22.00 24.00 24.00 24,00 24.00 30.00 30,00 n/~~ Add'1 member >62 yrs. 20,00 22.00 22.00 22.00 24.00 24,00 24.00 24.00 30.00 30.00 n/a Add'1 member < 18 mos Free Free Free Free Free Free Free Free Free Free f~/a 1'~~Qll-~~PIi2€Ila`. ~~~'.;f8IlPa9~ 1~' member n/a n/a 61.00 61.00 63.00 63.00 63,00 63.00 65.00 65.00 65.00 Add'1 mernber> 42" n/a n/a 51.00 51A0 53.00 53.00 53,00 53.00 55.00 55,00 55.00 Add'1 member <42" n/a n/a 37.00 37.00 39.00 39.00 39.00 39.00 4L00 41.00 41.00 Add'l member>62yrs. n/a n/a 37.00 37.00 39.00 39.00 39.00 39.00 41.00 41.00 41.00 Add'1 member < 18 mos n/a n!a Free Free Free Free Free Free Free Free Free ~~on•ResidentPass-ali~• 511m 1~` member n/a n/a 53A0 53.00 55.00 55,00 55.00 55.00 60.00 60,00 it/il Add'1 member > 42" n/a n/a 43.00 43,00 45,00 45.00 45.00 45.00 50.00 50.00 »/<i Add'1 member <42" n/a n/a 32.00 32.00 34.00 34.00 34.00 34.00 40.00 40,00 t~i~t Add'1 member>62 yrs. rsfa n/a 32.00 32.00 34.00 34.00 34.00 34.00 40.00 40.00 ~1/a Add{I member < i$ mos nIa n/a Free Free Free Free Free Free Free Free ~v~~ *to reflect ~a~e~ tax $2.00 increase over 10 years = $.20 increase/yr ar 1 % annually ~..~~~ ` , ~ City a~ ~a~att 2009 Proposed Budget Aquatic Facility -.Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations Operating Budget . ° , PURPOSE & DESCRIPTION ~ ~~ ~" ~~"~ i The purpose of the Aquatic Facility is to: `~' ~ "~' • Provide a positive environment for residents and guests of all ages ' to aher. ~ ~ ~ ~` ~ ~~ ~~~_rf~ 9 ~~: • Encourage and help build a sense of community through a wide 4 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 2006 2007 2008 2009 Description Actual Actual Estimate Target Season passes sold 3,609 3,697 4,100 3,800 Total attendance 130,305 115,878 125,000 125,000 Group admissions 22,158 20,632 22,000 22,000 88 + golf Days facility is open 88 86 pre/post 88 + season Rounds of golf 8,293 7,706 13,000 7,000 Private rentals 8 4 9 9 3s ,` l~r~~7 d'. _,T ~~. ~~~~ 0~~8~l~fl 2009 Proposed Budget Operating Budget ble M~ Expenditures by Category Parts & Personal Supplies Services 6.6% 49.3% ~_ _ ,.= ' Services & '` Other ~ Charges Reserve fo r ~~` ' 17.6% R & R 5.6% Merchandise DebtServicel for Resale 13.7% _ ..,., Aquatic Facility -Cascade Bay mager: Cherry) Mesko, Superintendent of Operations HIGHLIGHTS & CHANGES Overview: The 2009 budget reflects a 0% change from 2008. The only change of significance is a purchase that comes from Renewal and Replacement funds. The budget reflects a very conservative estimate of both revenue and expenses that includes a 15% increase in utility CoStS Highlight/Chancte 1: Personnel costs show an increase of approximately 2%. This reflects a close eye on managing seasonal costs but also reflects a full year implementation of reorganization to mirror the model at ECC. Many of the existing full-time staff are on the lower steps of pay ranges but that will change in subsequent years. Financial Impact: Total personnel costs are up $11,600 over 2008 budget. Service Level Impact: The quality of service provided remains the same. EXPENDITURE SUMMARY Actual Actual Budget Budget Expenditure 2006 2007 2008 2009 Personal Services $ 572,325 $ 494,928 $ 574,100 $ 585,700 Parts and Supplies 66,438 66,285 79,300 78,800 Services and Other Charges 140,065 157,393 218,600 208,700 Capital Outlay 13,909 16,446 2,000 - Merchandise for Resale 96,689 86,376 92,200 85,000 Debt Service 161,495 162,245 157,700 163,200 Reserve for Renewal & Replacement 64,600 64,600 64,600 67,100 Total $1,115,521 $1,048,273 $1,188,500 $ 1,188,500 ~~ '~,:~' ~ Cil~ of Ca~a~ 2009 Proposed Budget Operating Budget Aquatic Facility -Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations CASCADE BAY POSITION INVENTORY Personnel 2006 2007 2008 2009 Hours Campus Facilities Manager 0.33 0.33 0.33 0.33 686 Maintenance Worker (2 @ .5 hrs.) 1.00 1.00 - - - CF Maintenance Coord (.5) - - 0.50 0.50 1,040 Custodian (.5) - - 0.50 0.50 1,040 Maintenance Worker (1 @ .33 hrs.) 0.33 0.33 - - - MOD - - 0.33 0.33 686 Clerical Technician 0.40 0.40 0.40 0.40 832 Administrative Coordinator 0.67 0.67 - - - CF Operations Coord - - 0.67 0.67 1,394 TOTAL 2.73 2.73 2.73 2.73 5,678 Cascade Bay and the Civic Arena share a number of staff. The Civic Arena staff complement is shown below: CIVIC ARENA POSITION INVENTORY Personnel 2006 2007 2008 2009 Hours Civic Arena Manager - - - - - Campus Facilities Manager 0.67 0.67 0.67 0.67 1,394 Building Supervisor - - - - - Skating School Coordinator 1.00 1.00 1.00 1.00 2,080 Maintenance Worker (2 @ .5) 1.00 1.00 - - - CF Maintenance Coordinator (.5) - - 0.50 0.50 1,040 Custodian - - 0.50 0.50 1,040 Operations/Maintenance Worker 0.67 0.67 - - - MOD - - 0.67 0.67 1,394 Clerical Technician 0.20 0.20 0.20 0.20 416 Administrative Coordinator 0.33 0.33 - - - CF Operations Coordinator - - 0.33 0.33 686 Total 3.87 3.87 3.87 3.87 8,050 2009 WORK PLAN Activity 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 `\ t '~ ,~ Cif of Ba ~n ~ Q 2009 Proposed Budget Operating Budget Aquatic Facility -Cascade Bay Responsible Manager: Cherry) Mesko, Superintendent of Operations Acct REVENUES 4310 PARK PROGRAM REVENUE 4312113 CONCESSION SALES 4314115 MERCHANDISE SALES 4316117 GROUP SALES 4318119 DAILY ADMISSIONS 4321 MEMBERSHIPS 4322123 VENDING 4326127 FACILITY RENTAL 4610 INTEREST INCOME 4822 OTHER REVENUE REVENUE ESTIMATES Actual Actual Budget Budget 2006 2007 2008 2009 $ 21,320 $ 23,582 $ 23,000 $ 22,500 246,222 233,674 230,000 225,700 23,845 10,405 9,500 8,600 136,123 143,101 121, 500 146, 500 657,489 502,960 599,500 578,000 - 173,703 173,000 177,000 2,092 649 2,000 1,000 14,351 6,632 10,000 8,000 25,579 24,721 20,000 21,200 1, 949 68 - - TOTAL AQUATIC FACILITY REVENUES $1,128,969 $1,119,495 $1,188,500 $ 1,188,500 0.00% ~, \ ! i << a~,~ - .~ City of Ea~a~ 2009 Proposed Budget Operating Budget Aquatic Facility -Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations LINE ITEM DETAIL Actual Actual Budget Budget Acct PERSONAL SERVICES 2006 2007 2008 2009 6110 SALARIES AND WAGES-REGULAR $ 113,743 $ 95,896 $ 133,500 $ 140,800 6112 OVERTIME--REGULAR - 32 - - 6130 SALARIES AND WAGES-TEMPORARY 382,834 334,794 360,000 360,000 6131 OVERTIME--TEMPORARY - - - - 6142 PERA-COORDINATED 6,574 5,611 8,700 9,500 6144 FICA 37,058 32,223 37,800 38,300 6151 HEALTH INSURANCE 18,442 14,527 21,600 23,900 6152 LIFE INSURANCE 240 178 - - 6154 DISABILITY -LONG TERM 355 322 - - 6155 WORKERS COMPENSATION 13,079 11,345 12,500 13,200 TOTAL PERSONAL SERVICES 572,325 494,928 574,100 585,700 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 571 461 700 700 6211 OFFICE PRINTED MATERIAL/FORMS 182 1,102 1,000 1,000 6212 OFFICE SMALL EQUIPMENT 64 21 100 100 6215 REFERENCE MATERIALS - 197 300 300 6220 OPERATING SUPPLIES-GENERAL 12,484 10,595 15,000 11,000 6222 MEDICAURESCUE/SAFETY SUPPLIES 2,544 2,410 2,500 2,500 6223 BUILDING/CLEANING SUPPLIES 5,806 4,972 5,500 5,500 6224 CLOTHING/PERSONAL EQUIPMENT 6,325, 9,132 6,000 5,000 6230 REPAIR/MAINTENANCE SUPP-GENE 4,871 859 5,000 5,000 6231 MOBILE EQUIPMENT REPAIR PARTS 671 - 500 500 6232 SMALL EQUIPMENT REPAIR PARTS 878 1,362 1,500 1,000 6233 BUILDING REPAIR SUPPLIES 1,120 334 1,200 1,200 6236 POOL REPAIR SUPPLIES 747 250 5,000 2,500 6240 SMALL TOOLS 224 18 500 500 6243 HEATING OIL, PROPANE AND OTHER FUELS 691 865 1,000 1,000 6244 CHEMICALS & CHEMICAL PRODUCTS 26,119 31,522 30,000 36,000 6257 SIGNS & STRIPING MATERIALS 2,907 1,940 3,000 4,500 6270 COMPUTER SOFTWARE 234 245 500 500 TOTAL PARTS & SUPPLIES 66,438 66,285 79,300 78,800 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES 17,282 594 23,300 7,500 6311 LEGAL 124 - - - 6314 AUDITING 900 1,400 1,800 1,800 6319 MEDICAL SERVICES--OTHER 477 - 500 500 6320 INSTRUCTORS 40 - 1,000 500 6346 POSTAGE 3,378 2,141 3,000 2,200 6347 TELEPHONE SERVICE & LINE CHG 2,030 1,893 2,100 2,000 6348 MATRIX SERVICE AND REPAIR 170 - 500 500 6353 PERSONAL AUTO/PARKING 61 186 200 200 6355 CELLULAR TELEPHONE SERVICE 229 192 300 300 6357 ADVERTISING/PUBLICITY/PROMOTION 8,430 4,229 9,000 7,000 6358 EMPLOYMENT ADVERTISING - 300 200 200 6370 GENERAL PRINTING AND BINDING 4,892 411 5,000 3,500 6385 INSURANCE 23,700 29,700 25,600 30,800 6405 ELECTRICITY 35,527 36,018 38,000 44,000 '~. ~ ~'~'~' `' City of ~a~aa 2009 Proposed Budget Operating Budget Aquatic Facility -Cascade Bay Responsible Manager: Cherryl Mesko, Superintendent of Operations LINE ITEM DETAIL (CONT'D~ Actual Actual Budget Budget Acct 2006 2007 2008 2009 6410 NATURAL GAS SERVICE $ 3,781 $ 43,716 $ 55,000 $ 65,000 6424 POOL REPAIR/ LABOR - 736 7,500 3,500 6426 SMALL EQUIPMENT REPAIR LABOR 1,019 669 1,500 1,000 6427 BUILDING OPERATIONS REPAIR LABOR 1,599 911 1,500 1,500 6428 FIELD/OTHER EQUIPMENT REPAIR - - 200 200 6475 MISCELLANEOUS - - 200 200 6476 CONFERENCES AND SCHOOLS 1,132 1,989 3,200 2,000 6477 LOCAL MEETING EXPENSES 17 115 200 500 6479 DUES AND SUBSCRIPTIONS 195 284 300 300 6480 LICENSES, PERMITS AND TAXES 725 725 1,500 1,500 6487 VISA/MC BANK CHARGES 10,739 9,502 11,000 10,000 6535 OTHER CONTRACTUAL SERVICES 6,011 10,808 10,000 7,000 6539 WASTE REMOVAUSANITATION SERV 2,053 3,071 4,000 4,000 6563 LANDSCAPING 9,392 5,599 5,000 4,000 6569 MAINTENANCE CONTRACTS 6,162 2,204 7,000 7,000 OTHER SERVICES AND CHARGES 140,065 157,393 218,600 208,700 CAPITAL OUTLAY 6630 OTHER IMPROVEMENTS 113 6,956 - - 6640 OFFICE FURNISHINGS AND EQUIPMENT 127 9,490 - - 6650 FURNITURE & FIXTURES 498 - - - 6670 OTHER EQUIPMENT 13,171 - 2,000 - CAPITAL OUTLAY 13,909 16,446 2,000 - MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE 96,689 86,376 92,200 85,000 MERCHANDISE FOR RESALE 96,689 86,376 92,200 85,000 DEBT SERVICE PRINCIPAL 85,000 90,000 90,000 100,000 INTEREST ON INTERFUND PAYABLE 76,495 72,245 67,700 63,200 TOTAL DEBT SERVICE 161,495 162,245 157,700 163,200 RESERVE FOR RENEWAL & REPLACEMENT 64,600 64,600 64,600 67,100 TOTAL AQUATIC FACILITY $ 1,115,521 $ 1,048,273 $ 1,188,500 $ 1,188,500 0.00% 6488 DEPRECIATION & AMORTIZATION $ 299,951 $ 297,829 $ - $ - ~fo Cascade Bay Renewal And Realacement Schedule ~paatea,a,o oe Year to Ice'10achine 11 $ 3,239. 1999 $ 294 2010 Aertect Fry #1; 7 4,260 2000 2004-new $ 609 2011 415 Tumstiies #1 20 1999 #2 20 11,500' 1999 $ 575 2019 #3 20 2,222. 2002 $ 111 2022 HVAC s tem: admire 20 14,OD0 ' 1999 $ 700 2019 Sand Ala Area Marmaid Fountain 7 1999 WaterlalTWat 1a 7 1999 Kom an Sand Tabte 8 20,166. 1999. 2005-new $ 2,681 2013 Guard CMairs S900 #1 10 1999 $ - 2010 $900 #2 10 1889 Removed $ - 2010 1,3G0 #3 10 2001 from RlF2 in $ 2011 1,360 #4 1D 20D1 2008 $ - 2011 FiirConditiomn conc. 2D ZO,OOD 2000 $ 1,OD0 2020 Roofing: 3 buildings 20 6;000 1999. $ 300 2019 Shed 20 2,500 2002 $ 125 2022 Funbrellas #1' 10 4,OOD 1999 $ 400 2018 #2 10 4;000 1999 $ 400 2018 #3 10 4;000 1999 $ 400 2018 #4 10 4,000 1999 2008 -New $ 400 2D18 #5 10 4,000 1999 Lightning $ 400 2018 #6 10 4;000 1999 damage covered'o $ 400 2018 #T 10 4;000 1999 y insurance $ 4~ 2018 #8 10 4,000 1999 $2257 x 11 $ 400 2018 #9 10 4;000 1999 $ 400 2018 #9D 10 4;000 1999 $ 40D 2018 #11 10 4,000 9999 $ 400 2018 #12 BiKhda iParty Area 10 2,304 2001 $ 230 2011 Sun ?od i0 4,275 2002 $ 428 2012 Walkin Refri erator 20 6,993 1999 $ 350 2019 Walkin Freezer 20 4,017 1999 $ 201 2019 2 doorfreezer 12 2;604 1999 $ 217 2011 2 doorrefK erator 12 2,029 1999 $ 169 2011 Refri erator Dis la 12 3.809 1999 $ 317 ' 2011 Sandwichlnacho display $1020 7 1999 Removed from R/R in 2008 $ 2005 Mobile Heated Cabinet 11 3,307 1999 $ 301 2010 Undercounterheated cabinet 10 2;498 1999 $ 250. 2010 Cash Re inters #1 1999 #2 1999 #3 1999 #4 1999 namtian Monito .air tester 10 1,760 1999 $ 176 2009 IiVACE ui ment 20 4,000 1999 $ 200 2019 Gas Hot Water Heater 20 4,OD0 1999 $ 200 2019 Video Securi 90 9;625 2002 $ 963 2012 Suitmates(2} 52,500 5 1999 Removed from R/R in 26D8 $ - 2004 PAS. stem 11 5;000 1999 $ 455 . 2010 WaterF[umeiWood;Steel 11 73;848 1999 $ 6713 .2010 Iit+aferFlume~ 20 145,000 1999 $ 7,250 2019 WaterFWme/Install 20 80,0 1999 $ 4,D00 2019 Shi Slide 15 20;SOD 1999 $ 1,387 2014 Cascade Bay Renewal And Replacement Schedule upda[etl aaio.us Useful Estimated Replacement Orfgial Year to Item Life Cost Purchase Re laced Mnual Re lace Starburst 15 20;500 1999 $ 1,367 2014 Tumblabuckets 15 B,OOD 1999 $ 533 2014 Qeck Chairs Econa 5D $66.00 11 3,300. 1999 $ 300 2010 Lounge (200 $156.75 11 31,350 1999 $ 2,850 20f0 Econo 40)$68:00 10 2;640 2001 $ 264 2011 Loup a (iD) $156.75 1D 1,568 2009 $ 157 2011 ECOAO(50 $56~ 10.. 3,300: 2002 $ 330 2012 Lounge (4D) $160:00 10' 6,400 2004 $ 640 2014 Concession Patio Furniture Ladderback Chair (150) $9923 15 14;885 1999 $ 992 2014 31"CafeTatile 28 $153:08 1b' 4,286.. 1999 $ 286 2014 31"Bar height table 12)$163.79 15 1;966 1999 $ 931 2094 '. 46'X85" oval dinin table 2$553:08 15 1,106 1999 $ 74 2014 Turbines #1 15 15,000 1999 $ 1,000 2014 #2 15 15;000 1999 $ 1;000 2014 #3 15 15,000'. 1999 $ 1,000 2014 #4 15 15,000 1999 $ 1;000 2014 #5 15 15;000 1999 $ 1,000 2014 1f6 15 15;000' 1999 $ 1,000 2014 Boilers #1 20 17,500 1999 $ 875 2019 #2 20 17,500 1999 $ 875 2019 #3 20 17,500 1999 $ 875 2019 #4 20 17,500 1999 $ 875 2019 :Pumps #1 15 7,200 1999 2007-LR $ 480 2022 #2 15 5,000 1999 $ 333 2019 #3 i5 5;000 1999 $ 333 2019 #4 15 5;000 1999 $ 333 2019 Filters #1 2t} 25;000 1999 $ 1,250 2019 #2 20 25;000 1999 $ 1,250 2019 PulsarChemicai E uipment 8 :8,000 2002 $ 1,000 .2010 Room Heaters 2D 3;800 1999 $ 190 2019 Stranco Controllers #1 15 3;000. 1999 $ 200 2014 #2 15 3;000 1999 $ 200 2014 trri atian Control S m 15 20;000 1999 $ 1.333 2014 LMl Pum s $1,200 #1 5 1999 $ 2004 #2 5 1999 $ 2004 #3 5 1999 $ 2004 #4 5 1999 Removed $ - 2004 #5 5 1999 from RfR in $ - 2004 #6 5 1999 2008 $ - 2004 Flourin 20 20,000 2002 $ 1,000 2022 Phone S m 8 21;000 2001 $ 2,625 2008 Walkie Talkies 6 6;000 2004 $ 1,000 :2010 Walk Behind Lawn mower 8 3,000 2004 $ 375 2012 C,n'il 5 2;500 2004 $ 500 2009 mini oif ra et 6 10,000 2006 $ 1,667 2012 Total $ 943,857 $ 87,124 CITY OF EAGAN s JUSTIFICATION OF CAPITAL OUTLAYS REQUESTS 1. Department Dept. No. Account No. Cascade Bay 9222 Renewal and Replacement 2. Give Description and Quantity of Item Requested. hldicate Date Desired. Re-finish the floors in the public restrooms and showers. 3. Describe the necessity for and/or benefits or savings expected from this item The floors in the concessions areas were refinished in 2008 with very positive results. A similar surface will be installed in the restroom/locker room public space to freshen up the look and to maintain a safe walking surface. 4. If the item requires an increase in personal services for the activity, state the new j ob 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. ESTIMATED COSTS Quantity Unit Cost Total Cost Trade-In Net Total Cost 1 $20,000 $20,000 $ $20 000 , 000040000 O 0 0004 O 00 0 0 m «anE•a 0 0 0 0 0 0 0 0 0 O O 0 0 0 0 O O O O O O P O P7 Otf7Pt47 PO60 O'er N SO n W O n ' N N V N SO M MhM ~ ~ P(9167 N W W rW n ~ 9D Nt0119 O0 OO P(O l~ W v7 OE/9N O S+'9 C'NN r{p N W W PaDO U7 SON SD aD 41 Ott) W O~ P r N W N M O N e n C+1 ~ Era E9 H2 NT. E9 SfT' 4fT E9 U) Q67 SH 0 0 0 0 0 0 0 0 0 O O 0 D 0 0 0 0 0 0 O O 0 0 0 0 0 0 0 0 0 O O 0 0 0 0 0 0 O 0 O O Sn E17 0 0 i79 0 0 4 1f1 0 t67 r S•9 N t6 o N CS) W n 6Sl s U ~ ~'str On:l tAONNCD O W Q'tA NiL7 NS47 5f 0 h W E+6 '~'.N M N r N Sig N W P P W W Eb Cl U9 w cq P rN 4f7 N tYl O ~ U~® ~ ~ _ __ SfT 4A C9 f9 UT E+T r U Q ~.' 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OwI :~1A00 ~ Ii9~ C7 ~ ~O W ('d'1cP- 4 Cf'i ~P EA 4fT ifT fft ~ UT LR~ C ® g ® ~ ~ W W aJ g~6 ~ U~7 Qa ~ N ~ ~ d ~ W ~ ~ ~ a q ~ ~ £ A ~ V E9 m N ~ °~ rsi ~ ~ v m m t ~ ~~ ~ q w e m a. d° J ~ ~ ~ ~ ~ ~ z.~ ~ ~ c ~ ®fl. ~ ®`-° ~ ~ Q a ~ ® oD ~ cue ~ ~- a m w m ~ ~ ~ {3 ,6 c6 ca o ® ® ®~ u} ®~ ~ ® •~ >. m U Z n. ~i = > ~ ~o Q € =atr7 a6~ clr o ~ u ~' a ~ ro ~ mU u m ® ® v m ui ~~ c .C +a ~~ s6Uy~p Q 6n~0 C ©~ p v~0 ~i) ~ ~ (A 'tlS ~ ®[Y ~4. ~ c ~ ~,~ v m m- m ~ ® w,.,~ ro- m... c ~ `~ u'c ~ ~.c i ~.~ L°~ w =C'-,~ In ;a a cgg m m v m van.. ~L]~UU~a()~io- Zt3 ~ ~1°- waaUU9(~r°- ~r°- SHOO i°- i°- ~~d¢inz t+l 44 Agenda Information Memo October 28, 2008 Special Eagan City Council Meeting IV. 200 A U Il° T T TI 1' N I • To provide direction to staff on the 2009 Community Center operating budget, and to direct that it be placed on a future City Council Meeting Consent Agenda for formal ratification. ckgr®und The preparation of the 2009 Eagan Community Center Budget continues to reflect the general parameters agreed upon prior to opening the facility in 2003 while taking advantage of the additional information and experience gathered over the ensuing years. The 2009 budget has been prepared in a manner consistent with the revised format being implemented for all other budgets. Superintendent of Operations Mesko, City Administrator Hedges, Director of Parks and Recreation Seydell Johnson, Director of Administrative Services VanOverbeke, and Chief Financial Officer Pepper have met and reviewed the proposed revenue estimates, and expenditure requests included in this budget. Memb®rship Rags The proposed 2009 budget contemplates no changes to the membership rates. Historically, the monthly membership rates have been as follows: 2004 2005 2006 2007 2008 2009 Resident 1st member $ 30 $ 32 $ 32 $ 32 $ 35 $ 35 Resident each additional 25 27 27 27 30 30 Non-Resident 1 st member $ 35 $ 37 $ 37 $ 37 $ 40 $ 40 Non-Resident each additional 35 37 37 37 40 40 llsa y embers: Since the ECC fitness center opened staff has tracked the membership and usage in several different ways. While we can see that the building is busier especially during the peak winter months it is helpful to quantify that level of busy. The chart below indicates the monthly use pattern for the fitness center beginning with the first full year the fitness component was open. It should be noted that while this does not indicate how many members are identified each month it does indicate that while use by members has increased steadily and significantly through 2007, there has been a reduction in use through August 2008. 2004 2005 2006 2007 January 4,515 7,324 10,496 14,103 February 4,411 7,027 9,798 12,096 March 4,882 7,912 10,529 12,862 April 3,807 6,583 8,766 11,270 May 3,766 6,389 8,429 10,613 June 4,670 6,246 8,020 10,410 July 4,593 6,234 8,103 10,594 August 4,592 6,623 7,346 8,536 September 4,268 5,759 7,398 9,104 October 4,616 6,299 .8,822 10,973 November 5,327 6,841 9,858 10,425 December 5,409 6,828 9,590 10,118 Totals 54,856 80,065 107.,155 131,104 +46% +34% +22% R®v®nus 2008 13,765 12,033 12,035 11,622 9, 767 7,792 9,743 7, 350 As of 8/31 /08 84,108 -7% as of 8-31-08 The revenue estimates continue to become more refined as they are based on more aperational experience than in previous years. The estimates rely on continued extensive and successful marketing of the facility in combination with high customer acceptance and satisfaction. Enclosed on page ~ is a copy of the detailed revenue estimates for 2009 as compared to the budget for 2008 and actuals for 2006 and 2007. The antenna lease revenue transfer used to balance the operating budget is increased from $199,800 in 2008 to $237,600 in the proposed 2009 budget. F en furs Excluding depreciation and debt service from the total for both years, the 2009 Eagan Community Center budget is proposed at $1,656,200, an overall increase of $23,200, or 1.4% from the 2008 budget of $1,633,000. Factors contributing to the increase are included in the department budget material. 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 $1,130,100 for 2009 compared to $1,129,800 far 2008. The renewal & replacement account used in lieu of funding depreciation is fully funded at $158,000 in the 2009 operating budget. ersonn®1 The total change to this line item is 5.1% over 2008, increasing from $971,900 to $1,021,800.. The increase reflects step increase and inflation and does not include any changes to the personnel compliment. The existing personnel allocation and staffing model has been successful and has added a higher level of direct customer service and provided for the successful inclusion of the issuance of passports at the ECC. Enclosed on pages ~3 through ~ is a copy of the complete 2009 budget. ai Iutlay The following capital outlay items are included in the proposed 2009 ECC budget to be financed from 2009 operations: • 6640: $1,100 is for replacement vacuums and carpet blowers. These items have been covered in the past under 6223 (Suilding/cleaning supplies) but moved to 6640 to better reflect this equipment purchase. • 6660: $2,200 - $2,000 is allocated for replacement computers and $200 for replacement• menu board strips. • 6670: $2,100 - $1,600 is allocated for a commercial grade inflatable jumper and storage cart to replace the existing equipment currently used for preschool open gym. This play element generally increases the paid admissions when it is provided on a regularly scheduled basis. This piece of equipment is also used for special events hosted at the ECC by Parks and Recreation staff. $500 has been allocated for the purchase of replacement audio visual equipment, i.e. wireless microphones, etc. an®wal and elacemnt The following four items are proposed to be paid through Renewal and Replacement funds: ® $164,500 for 38 pieces of equipment including treadmills, elliptical and bikes that contain new technology commonplace in other fitness centers. This is the second year of a 3-year replacement cycle that will then repeat beginning in 2013. $23,600 to replace furniture in the atrium and Oasis teen center. The existing furniture in the atrium can be used in other areas of the building, however the upholstered couches and chairs in the Oasis have exceeded their wear and need to be replaced. Replacing or enhancing the atrium furniture will provide an opportunity to create more seating pods for people to meet, relax or work while using WiFi in the building. The Oasis can benefit from similar modular or pod seating that can be more easily moved depending upon the use in the building. ® $44,000 to replace the carpet in the Oaks ($30,000) and the rubber flooring in the fitness center's free weight area ($14,000). Although these surfaces are cleaned on a regular basis they are now showing significant wear and are scheduled for replacement. $11,800 to replace the riding scrubber and automatic burnisher. These are two pieces of maintenance equipment that have reached the replacement stage. Both items were originally scheduled to be replaced in 2008 but were pushed out a year. Enclosed on page ~ is a copy of the Capital Renewal and Replacement schedule for the Community Center. Mark®tin~ The following is a summary of how various areas of the Community Center are being marketed in 2008. f Fitness Membershi sand Classes • Letter sent to all members to thank them for their membership. Daily guest passes reserved for them to pick up at their convenience. • Promoted Fitness on the Road -very successful promotion that led to teaching classes at BCBS twice a week and interest by several other corporations. • Introduced walking track passes to be used during non-prime time. • Worked through U-Care to provide Enhance Fitness, program designed and paid for by U-Care fora 62+-age population. Program is during non- prime time and full with wait list. • Promoted and expanded personal training through members and surrounding businesses Blast Indoor Pla round • Created new group field trip package to include the Blast and second activity for older kids. This was typically accommodated in the gym. • Ads placed in MN Parent, Mpls/St.Paul, Eagan magazine • Included coupon for each birthday party participant for'/2 off next visit. • Created a package of information to be handed out at each session of preschool classes. • Cross-market with Cascade Bay to offer the Blast as alternate site in the event of rain. Ban uet Room and Meetin Rooms • Ads placed in the Wedding Directory and Wedding Guide. Listed as both reception and ceremony site. • Ad in Minnesota Meeting & Events Resource Guide ® Ad in Eagan telephone directory • Staff visits to local businesses and meetings • Staff attendance at meeting planner forums at the U of M. • Staff visits with local hotels to hand out ECC and City information on events and recreational opportunities. • Coordinate with ECVB on events that will put ECC renters into hotels in Eagan. They conversely work to drive events to the ECC. • Develop wedding planning classes marketed to ECC brides • Over 600 brochures and informational packets mailed out. On-Going Marketi • Press releases 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 Discover Brochure and City web page. • Promotions on BECT • Updates and revisions to the virtual tour • New electronic reader board used to promote programs/events 4~ Reducing the admission after 5 p.m. has been very successful during the summer and will continue throughout the year. This is the time of day when the Blast is least used so capitalizing on this market will benefit both the participants and the ECC. Birthday parties have declined somewhat primarily because of the competition. There are numerous opportunities for parties in a wide range of venues. The market that the Blast fits is pre-school to 8 year olds and the most successful marketing tool to date has been word-of- mouth; birthday parties seem to grow birthday parties. The focus will remain on excellent value for a reasonable price. Rentals and vents: ® Smaller meetings/less travel The rising fuel costs and overall economic scale-back in the meeti~~g industry is forcing companies to choose local venues and to scale back the size of some events. While not great news for the overall industry, this may actually have a positive impact on revenue since we are a hot spot for local businesses. There is greater opportunity to capture this market by promoting space to local businesses more aggressively than in the past. Less food/less expensive food Food costs account for a significant portion of any event budget and people are beginning to make slightly different food choices to cut costs. Meetings may also be planned during "non-food" times. While this may impact the catering revenue there may also be a positive upswing in the internal food and beverage service we offer, which is generally a more affordable option. Wedding downsizing Typically weddings are considered recession-proof. Even in the worst of times, people still get married; however, brides are becoming more frugal as budgets are tightened. Some of this is currently Napping at ECC. There have been some cancellations this past year because the parties could not afford it. Couples initially planning for 250-300 guests actually cut the numbers closer to 150. While this doesn't impact the rental rate it does change the catering and alcohol revenue. ECC is strategically positioned to provide small or large events with a high degree of flexibility to allow weddings at several price points. Friday and Sunday reservations provide more affordable options for people on a tight budget. Outdoor wedding ceremonies continue to grow because that too is an affordable option. In general, the ECC has built a reputation as a beautiful and elegant venue for a wedding while preserving the financial limitations of the renter. Fitness ilAemberships There are so many diverse options for people who wish to stay healthy with regular exercise. These options are coupled with insurance companies' reimbursement programs that "pay back"apart of monthly memberships when clients meet minimum monthly workouts. It is expected that this trend will continue until the insurance companies no longer need to intent people to stay active. Growing membership and retaining members is a very high priority in both public and private centers. With limited disposable income people are always searching for the "deal". Several publications have defined community centers as one of the most affordable options for fitness. That's great news for ECC but that has not necessarily been the trend in the metro area. Memberships in general are declining and fitness centers, both private and public, are getting aggressive about adding to their membership. The ECC recently held a membership drive where enrollment fees were waived during a 7 day promotion. This was anon-traditional promotion period so we weren't certain how successful it would be. It resulted in 250 new members during that time frame and at a meeting with other fitness centers, it was discovered just how successful this promotion was. It seems that most facilities are struggling to keep the members they have and have very little response to new memberships. Many of the other fitness centers, both private and public, have been pretty hard pressed to gain that many members in the last 6 months. l Personal training, fitness classes, member appreciation events, clean and modern equipment, comfortable environment and friendly staff-are some of the comments members share when describing their fitness experience at ECC. In general the positive and sustained growth ofi memberships is expected to continue primarily because of the perceived value it represents. While other centers are struggling to maintain ar grow memberships, the ECC has found a niche that fosters sustainability. nclui®n The Community Center has clearly 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 and enhancements related primarily to keeping the facility fresh for the visitors and improving operating efficiencies. It also allows for continued flexibility as the City goes forward. a `~'~~ ;~ City a~ ~a~an 2009 Proposed Budget Community Center Responsible Manager: Cherry) Mesko, Superintendent of Operations 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. Operating Budget ~~ __,~. r ;~ 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 Description 2006 Actual 2007 Actual 2008 Estimate 2009 Target Groups in the Blast 61 61 70 75 . Birthday parties 432 347 475 375 Meetings 750 800 775 800 Open gym program participants 5,635 6,806 5,700 7,100 Group fitness attendance (included in membership) 15,167 17,131 14,000 16,000 Memberships -year round 1,800 1,850 1,850 1,750 Personal Training 968 1,096 1,050 1,200 Weddings 71 77 80 83 Average attendance in building per day 1,000 1,148 1,150 1,200 ,` ~~~~~s ~ ~~ ~1~ OC ~~ 8Il ~ ~ 2009 Proposed Budget Operating Budget Personal Expenditures by Category Services 61.7% -~~" __ _ - - f- '~ Reserve fo r~_- R & R _.. . 9.5% Merchandise for Resale 1.8% Parts & Supplies 3.6% Services & ~'~ Other Capital Charges Outlay 23.1 /o 0.3% Community Center Cherry) Mesko, Superintendent of Operations HIGHLIGHTS $c CHANGES Overview: The proposed Eagan Community Center budget is up $23,200, or 1.4%, from 2008. The budget for 2009 is designed to find more efficient ways to staff the building to provide the level 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 2009 will be to maintain a high level of direct service contact to meet a growing demand for service and space from the public. Analysis of use patterns and service expectations will drive staff re-structuring options. Increases of 5.1 % in personnel ($49,900), 15% in utilities ($44,500) and 27% in annual renewal and replacement ($35,600) required careful evaluation of expenses and capital purchases to meet the budget parameters set by the City Council. Significant renewal and replacement (R&R) capital expenditures are planned. Funds have been set aside in prior years, so the expenditures are not reflected in the operating budget. The revenues project adecrease of $14,600, or 1.0% from 2008, primarily reflecting the leveling off of fitness memberships, the additional .25% sales tax, and the reduction in passport execution fees from $30 to $25 per application. Highlight/Change 1: Fitness memberships are projected to decline slightly reflecting the trends in the economy as people carefully choose how they are spending dollars. Financial Impact: Decreased revenue in the short term (down $19,100 in 2009). Service Level Impact: None. Highlight/Change 2: The budget increase in electrical and natural gas is projected to be 15%. While we have some historical perspective on costs, an ever changing energy market can change these numbers significantly. Financial Impact: $35,000 increase for the 2009 budget year. The increasing energy costs will continue to provide a challenge in estimating costs. Service Level Impact: None. As the activity grows in this building, the expectation for a comfortable and efficient building continues to expand. Hiahliaht/Chanae 3: Increase in R&R annual allocation. Financial Impact: $35,600 increase over 2008. Service Level Impact: Preserves the integrity of the building and equipment for users. Highliaht/Chanae 4: R&R projects are reviewed annually to make sure they are accurate and appropriately scheduled. Several items scheduled for 2009 have been pushed to later years because they are in good condition. The remaining items include carpet replacement in the Oaks banquet rooms, rubber matting in the fitness center, riding floor scrubber and burnisher, fitness equipment and replacement furniture in the atrium and Oasis teen center. These items are not shown as part of the capital outlay but are identified on the detail sheets. A large percentage of fitness equipment was scheduled to be replaced in 2008. Because most of it is still in very good condition, a replacement cycle is being proposed that would bring in pieces of new equipment each year from 2008 to 2010 and then begin a 3-year cycling process again in 2013. This request replaces some of the treadmills, elliptical machines, and recumbent and spinning bikes with new technology commonplace in other fitness centers. Financial Impact: Replace carpeting and rubber flooring, $44,000; treadmills, ellipticals, and bikes, $164,500; riding scrubber and automatic burnisher, $11,800; and replacement furniture, $23,600. Service Level Impact: The visual and functional operation of the building is maintained. ~' .~~,. -~Ci~y of ~a~an 2009 Proposed Budget Community Center Responsible Manager: Cherryl Mesko, Superintendent of Operations EXPENDITURE SUMMARY Operating Budget Expenditure Actual 2006 Actual 2007 Budget 2008 Budget 2009 Personal Services $ 821,970 $ 950,864 $ 971,900 $1,021,800 Parts and Supplies 75,155 74,199 69,900 58,900 Services and Other Charges 319,096 322,510 348,000 382,100 Capital Outlay 22,192 24,205 91,100 5,400 Merchandise for Resale 31,089 31,568 27,600 30,000 Reserve for Renewal & Replacement 121,600 124,500 124,500 158,000 Total $ 1,391,102 $1,527,846 $ 1,633,000 $ 1,656,200 POSITION INVENTORY Personnel 2006 2007 2008 2009 Hours Community Center Manager 1 0 0 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 3 3 3 3 6,240 MOD 0 2 2 2 4,160 Total 9 10 10 10 20,800 2009 WORK PLAN Activity 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 J/~ ...~ l ~,:~, ~1~~ 0~ ~8~~n 2009 Proposed Budget Operating Budget Community Center Responsible Manager: Cherry) Mesko, Superintendent of Operations REVENUE SUMMARY Acct REVENUES 4304 PERSONAL TRAINERS 4305 EQUIPMENT RENTAL 4310 PARK PROGRAM REVENUE 4312 CONCESSION SALES 4314 MERCHANDISE SALES 4316 GROUP SALES 4318 DAILY ADMISSIONS 4321 MEMBERSHIPS 4323 VENDING (VENDORS) 4324 ROOM RENTALS 4326 FACILITY RENTAL 4328 CONTRACT REVENUE 4329 PASSPORT PROCESSING 4621 ECVB RENT 4622 EQUIPMENT RENTAL 4822 OTHER REFUNDS AND REIMBURSEMENTS 4840 INTERNAL REVENUE SUBTOTAL OTHER FUNDING SOURCES TRANSFER IN-ANTENNA LEASE REVENUE SUBTOTAL TOTAL COMMUNITY CENTER REVENUES Actual Actual Budget Budget 2006 2007 2008 2009 $ 51,641 $ 58,837 $ 53,300 $ 62,800 5,434 7,045 9,000 13,100 11,143 11,705 10,000 11,800 44,420 49,603 55,200 57,900 2,258 2,858 2,300 2,400 62,003 54,181 76,800 57,000 67,231 74,320 71,200 93,900 647,307 715,967 710,000 690,900 7,998 5,351 7,400 6,200 201,826 260,723 281,300 284,900 510 4,376 3,000 1,400 77,153 83,756 85,300 88,500 - 45,596 47,000 31,800 10,100 10,380 10,400 10,500 - - 6,000 - 1,662 - - - 35,698 5,873 5,000 5,500 1,226,385 1,390,571 1,433,200 1,418,600 164,717 137,275 199,800 237,600 164,717 137,275 199,800 237,600 $ 1,391,102 $ 1,527,846 $ 1,633,000 $ 1,656,200 1.42% S(p 1~J \t .l ~....7,~r,~.~ ~ r ~ ~~~~ ~~ ~~~~~~ 2009 Proposed Budget Operating Budget Community Center Responsible Manager: Cherryl Mesko, Superintendent of Operations LINE ITEM DETAIL Actual Actual Budget Budget Acct PERSONAL SERVICES 2006 2007 2008 2009 6110 SALARIES AND WAGES-REGULAR $ 373,211 $ 424,098 $ 460,300 $ 478,300 6112 OVERTIME-REGULAR - - - - 6130 SALARIES AND WAGES-TEMPORARY 285,502 335,153 328,000 340,000 6131 OVERTIME-TEMPORARY - - - - 6142 PERA-COORDINATED 35,719 41,002 29,900 32,300 6144 FICA 48,823 55,775 60,300 62,600 6151 HEALTH INSURANCE 65,420 81,811 82,900 97,100 6152 LIFE INSURANCE 830 975 - - 6154 DISABILITY- LONG TERM 1,575 1,761 - - 6155 WORKERS COMPENSATION 10,890 10,289 10,500 11,500 TOTAL PERSONAL SERVICES 821,970 950,864 971,900 1,021,800 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 3,600 4,422 3,000 3,000 6211 OFFICE PRINTED MATERIAUFORMS 1,841 1,290 2,500 1,500 6212 OFFICE SMALL-EQUIPMENT 4,260 1,770 2,000 700 6220 OPERATING SUPPLIES-GENERAL 21,927 16,410 11,900 11,000 6222 MEDICAURESCUE/SAFETY SUPPLIES 232 238 200 300 6223 BUILDING/CLEANING SUPPLIES 17,835 17,462 16,900 16,000 6224 CLOTHING/PERSONAL EQUIPMENT 2,223 2,965 3,000 1,500 6227. RECREATION EQUIPMENT SUPPLIES 3,017 7,015 8,100 7,700 6230 REPAIR/MAINTENANCE SUPP-GENE 2,688 3,132 2,500 3,000 6232 SMALL EQUIPMENT REPAIR PARTS 9,396 3,255 5,000 3,500 6233 BUILDING REPAIR SUPPLIES 5,311 7,999 6,500 7,000 6240 SMALL TOOLS 820 711 600 600 6241 SHOP MATERIALS 667 418 700 700 6244 CHEMICALS & CHEMICAL PRODUCTS 488 1,952 2,300 2,000 6257 SIGNS & STRIPING MATERIAL 372 524 300 300 6270 COMPUTER SOFTWARE 478 4,636 4,400 100 TOTAL PARTS & SUPPLIES 75,155 74,199 69,900 58,900 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES 238 3,005 7,000 9,500 6314 AUDITING 1,600 2,100. 2,000 2,000 6315 FINANCIAL- NON-AUDIT - - 700 800 6346 POSTAGE 2,130 4,351 5,400 4,800 6347 TELEPHONE SERVICE & LINE CHG 3,318 4,255 4,100 4,300 6348 MATRIX SERVICE & REPAIR 54 397 500 500 6353 PERSONAL AUTO/PARKING 1,274 655 1,500 1,000 6355 CELLULAR TELEPHONE SERVICE 201 495 300 900 6357 GENERAL ADVERTISING 12,360 10,918 12,000 12,400 6370 GENERAL PRINTING AND BINDING 8,626 4,063 10,400 1,800 6385 INSURANCE 19,000 26,800 21,000 26,600 6405 ELECTRICITY 128,226 136,280 125,000 150,000 6410 NATURAL GAS SERVICE $ 64,292 $ 63,732 $ 90,000 $ 100,000 s~ C.~;,~~;.-° ~? ~ ~~~~ ~~ ~~~~~ 2009 Proposed Budget Operating Budget Community Center Responsible Manager: Cherryl Mesko, Superintendent of Operations creation LINE ITEM DETAIL Actual Actual Budget Budget __SERVICES & OTHER CHARGES (CONT'D) 2006 2007 2008 2009 6426 SMALL EQUIPMENT REPAIR-LABOR $ 250 $ - $ 500 $ - 6475 MISCELLANEOUS 14,401 3,138 3,000 800 6476 CONFERENCES AND SCHOOLS 3,908 2,927 5,000 3,500 6477 LOCAL MEETING EXPENSES 293 355 500 500 6479 DUES AND SUBSCRIPTIONS 563 694 1,200 1,000 6480 LICENSES, PERMITS AND TAXES 40 1,145 1,500 1,400 6482 AWARDS, JUDGEMENTS, AND LOSSES - 303 - - 6487 VISA BANK CHARGES 9,993 15,425 10,000 13,000 6535 OTHER CONTRACTUAL SERVICES 32,065 22,040 26,100 25,000 6539 WASTE REMOVAUSANITATION SERV 3,211 4,412 4,700 5,500 6569 MAINTENANCE CONTRACTS 13,053 15,020 15,600 16,800 OTHER SERVICES AND CHARGES 319,096 322,510 348,000 382,100 CAPITAL OUTLAY 6640 MACHINERY/EQUIPMENT 20,757 5,023 4,000 1,100 6650 FURNITURE & FIXTURES - 239 51,300 - 6660 OFFICE FURNISHINGS & EQUIPMENT 1,435 5,181 4,800 2,200 6670 OTHER EQUIPMENT - 13,762 31,000 2,100 CAPITAL OUTLAY 22,192 24,205 91,100 5,400 MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE 31,089 31,568 27,600 30,000 MERCHANDISE FOR RESALE 31,089 31,568 27,600 30,000 RESERVE FOR RENEWAL & REPLACEMENT 121,600 124,500 124,500 158,000 TOTAL COMMUNITY CENTER $ 1,391,102 $ 1,527,846 $ 1,633,000 $ 1,656,200 1.42% DEBT SERVICE PRINCIPAL 565,000 585,000 605,000 630,000 6491 INTEREST 571,150 538,400 524,400 499,700 6492 PAYING AGENT/BOND DESTRUCTION 431 431 400 400 TOTAL DEBT SERVICE 1,136,581 1,123,831 1,129,800 1,130,100 6488 DEPRECIATION & AMORTIZATION $ 563,202 $ 572,542 $ - $ - R & R 10.2308.x1s Eagan Community Center Capital Renewal/Replacement Funds Estimated Usetul Replacement Original Year Annual Year to Item Description Life Cost Purchase Replaced Amortization Replace BOILERS (3) 35 $ 75,000 new 03 $ 2,143 2037 WATER HEATERS (4) 10 16,OD0 new 03 1,600 2013 PLAYSPACE 12 150,000 new 03 12,500 2015 CHILLER 20 135,000 new 03 6,750 2022 ROOF 20 250,000 new 03 12,500 2022 RIDER FLOOR SCRUBBER 6 8,800 new 03 1,467 2009 10,000 KAREN RESTROOM CLEANER 5 2,800 new 03 2008 replaced KAREN RESTROOM CLEANER 5 4,000 New 2008 800 2013 HUMIDIFIERS (4) 10 48,000 new 03 4,800 2013 CIRC MOTORS (4) 8 4,800 new 03 600 2011 AHU SUPPLY/RETURN MOTORS (4) 20 120,000 new 03 6,000 2037 BUFFER 7 1,500 new 03 214 2010 SWEEPER 7 3,300 new 03 477 2010 CARPET EXTRACTOR 7 5,500 new 03 786 2010 PULL EXTRACTOR 7 2,400 new 03 343 2010 WATER SOFTENER (2) 20 9,000 new 03 450 2023 CARPET SPOTTER 7 600 new 03 86 2010 BURNISHER 7 1,500 new 03 214 2010 BURNISHER-2nd 5 1,500 Used 04 300 2009 1800 WALK IN COOLER - 10 8,000 new 03 800 2013 REACH IN REFER/FREEZER 9 4,850 new 03 539 2012 REACH IN REFRIDGERATOR 9 4,050 new 03 450 2012 REACH IN FREEZER 9 4,050 new 03 450 2012 DISPLAY COOLER 9 1,000 new 03 111 2012 SANDWICH COOLER 7 3,075 new 03 2009 removed WARMING OVENS (4) 9 11,000 new 03 1,222 2012 DISHWASHER 12 8,400 new 03 700 2015 BOOSTER HEATER 8 1,020 new 03 128 2011 PLATE WARMERS /HOLDERS (~ 7 17,320 new 03 2009 removed 2007 ICE MAKER 8 2,600 new 03 325 2011 POPCORN MAKER 5 900 new 03 2007 replaced POPCORN MAKER 5 1,300. New 2007 260 2012 HOTDOG MAKER/WARMER 5 1.135 new 03 227 2008 REFRIDGERATOR (office/LOne Oak Rm) tD 800 new 03 80 2013 OVAL TABLES (45) 10 15,750 new 03 1.575 2013 RECTANGULAR TABLES (90) 10 22,500 new 03 2,250 2013 8 foot tables (12) 10 3,000 new 08 300 2018 BISTRO TABLES (12) 10 3,600 new 03 360 2013 Bistro tables (5) 10 2,000 new 06 200 2016 BANQUET CHAIRS (400) 5 37,050 new 03 2008 replaced Full replacement (400) 5 40,000 2008 new 2008 8,000 2013 PLASTIC CHAIRS (175) 10 3,850 new 03 385 2013 PODIUMS (3) t2 2,000 new 03 167 2014 TENSABARRIERS (16) 10 2,300 new 03 230 2013 ATRIUM/LONE OAK FURNITURE 6 8,600 new 03 7,433 2009 8,600 POND FOUNTAIN 6 7,000 new 03 2008 replaced Replaced under warranty 5 8,000 replaced 05 1,600 2010 BANQUET ROOM AUDIO SYSTEM 8 21,550 new 03 2,694 2011 AEROBIC STUDIO AUDIO SYSTEM 7 10,580 new 03 1,511 2010 EXERCISE ROOM AUDIO SYSTEM 12 2,700 new 03 225 2015 CARDIO FITNESS EgUIPMENT (30) 6 116,040 new 03 16,561 2009 replace 09 FREEISELECTORIZED FIT. EgUIP. (14) 7 7,500 ^eW 03 1,071 2010 INDOOR CYCLE BIKES (15) 5 8,625 new 03 1,725 2008 replan 09 Treadmills (6) replacement 5 60,006 new 09 2014 Ellipticals (12}Yeplacemerit ~ 5' 72,000 new 09 2014 Recdmtiant bikes (5j replacement 7 17,500 new 09 2016. Spihhing bikes (15} replacement '. 5 15,000 new 09 2014 2009 Upper body ergomeler (1) 5 3,600 new 06 720 2011 Life Fitness treadmill (1) 7 5,800 new 06 829 2013 Life Fitness cross trainer (2) 7 7,800 new O6 1,114 2013 Pertect squat (1) 7 1,700 new O6 243 2013 Rower (1) 5 1,000 new 07 200 2012 Tread mills (5) replacement 5 50,000 2008 10,0110 2013 Cross trainers (2) replacement 5 16,600 2008 3,320 2013 Bikes (3) replacement 5 14,100 2008 2,800 2013 TEEN CENTER FURNITURE 8 15,000 new 03 2,500 2009 15,000 PREFUNCTION /OAKS CARPET 5 40,000 new D3 2007 replaced Prefundion carpet 5 11,500 new 2007 2,300 2012 Oaks carpet 6 28,500 new 03 5,700 2009 30,000 Oaks wood dance Floor 7 11,000 new 03 1,570 2010 Weight room rubber Oaodng 6 30,000 new 03 5,000 2009 14,000 REMAINING BUILDING CARPET 8 46,000 new 03 5,750 2010 Areal Area 2 Area 3 BUILDING VCT /VINYL FLOORING Atrium 7 3,000 new 03 430 2010 - Mig ml/Teen center/Lone Oak 7 16,500 new 03 2,750 2010 AED 10 2,000 new 04 200 2014 MENU BOARD 15 2,000 new 04 133 2019 Drop down screens (3 ~ $5,000) 10 15,000 new 07 1,500 2017 Window shades (Oaks) 10 20,000 new 07 2,000 2013 Window shades (gym) 12 7,000 new 07 580 2015 Security Cameras fn building (9) 7 10,000 new 05 1,400 2012 Security Cameras in Blast (34 w/monitor) 7 10,000 new OB 1.400 2015 Whhe resin outdoor chairs (250) 10 10,000 new OS 1,000 2018 Gym dividers 10 50,000 new 03 5,000 2013 Gym dividers 10 29,000 new 08 2,900 2018 Total 158,962 updated 6-17-08 10/23/2008 Agenda Information Memo Eagan City Council Workshop October 28, 2008 V. 2009 EAGAN CONVENTION AND VISITORS BUREAU BUDGET ACTION TO BE CONSIDERED: Receive and approve the 2009 ECVB Budget FACTS: • After review and approval by the Eagan Convention and Visitors Bureau Board, including Eagan Mayor Mike Maguire, the proposed 2009 ECVB budget now comes before the Council for review and comment. • The budget has also been reviewed by the City's Chief Financial Officer, Tom Pepper and City Liaison Tom Gamson. • The ECVB budget is funded separately by a lodging tax paid for by those staying at Eagan hotels and is not subject to the budget caps enacted by the Minnesota Legislature. • Mr. Garrison and ECVB Executive Director Brent Cory will give a brief overview of priorities and plans for the coming year. • Included in those specifics are the facts that the ECVB projects a decrease in lodging tax revenue in 2009 due to current economic conditions, but is committing $50,000 in reserves to put additional emphasis on advertising and promotional activities to draw visitors to Eagan. • The 2009 budget, therefore, is $877,000, up from $823,500 in 2008. That is a 6.5% increase. • A significant policy issue in 2009 will be the $450,000 undesignated reserves and the board developing a policy for its responsible use in promoting tourism in Eagan. Lodging tax collected by the City of Eagan in accordance with Minnesota State Statue 469.190 allows for the funding of a local convention/tourist bureau exclusively for the purpose of marketing and promoting the city as a conference, meeting and tourist destination. • Council is asked to specifically review Highlight Number Three in the attached budget document, as it deals with spending on City-specific initiatives. ATTACHMENTS: 2009 ECVB OPERATING BUDGET on pages ~~ to ~vQ .\ t t.,a~tn..~ ' .~~; Clky 0~ ~0~1~(l 2009 Proposed Budget Operating Budget Eagan Convention & Visitors Bureau Responsible Manager: Brent Cory, Executive Director PURPOSE & DESCRIPTION The purpose of the Eagan Convention and Visitors Bureau is to: :~ ~' • Promote Eagan as a major conference, meeting and tourist ~' ~ destination through creative marketing and sales efforts. • Generate a greater economic impact for Eagan, thus ~ ~' enhancing the quality of life for all residents. ~, ~ - ~ ; ~ 1.~ 1,,, ~,; ,;,~; The Eagan Convention and Visitors Bureau is responsible for the following functions: • Increasing travel to Eagan by individuals, tour groups and meeting attendees, as well as increasing guest visits to area hotels, attractions, restaurants and retail outlets. • Promoting Eagan through advertising, public and media relations, creative promotions, Web site/Internet, direct mail and collateral. • Participating in trade shows, sales missions, targeted sales calls and familiarization tours aimed at generating leads and business prospects for Eagan PERFORMANCE INDICATORS 2006 2007 2008 2009 Description Actual Actual Estimate Target Qualified leads generated through advertising/promotional/sales efforts 26,681 46,345 60,000 65,000 (e 1 ,l ~' Cif of ~a ~n ~ ~ 2009 Proposed Budget Operating Budget Expenditures by Category Marketing ~~'~ Expenses f 49.8% d~. _ Office Expenses I ~ Travel & 2.8% En tertai n me Other Personnel Expenses Expenses 3.5t% 14.1 % 29.8% Eagan Convention & Visitors Bureau Brent Cory, Executive Director HIGHLIGHTS & CHANGES Overview: In light of a projected decrease in lodging tax revenue due to challenging economic conditions, the 2009 budget proposes to utilize $50,000 in Eagan CVB reserves to put additional emphasis on advertising and promotional initiatives in an attempt to strengthen tourism. At the same time, numerous creative cost-saving measures will be put in place. The 2009 budget is up $53,500, or 6.5%, from 2008. Hiahlight/Change 1: The Bureau's bylaws require asix-month operating reserve (approximately $400,000) designated for emergency purposes. The Bureau is very fortunate to be in the position of also having undesignated reserves at its disposal for marketing and operational purposes. These funds have amassed over the past five years as a result of exceeding revenue expectations, realized savings in salaries, and from the implementation of various administrative cost-saving measures. During 2009, $50,000 of the Bureau's undesignated reserves will be utilized for three very specific purposes: • Increasing marketing efforts in Canadian markets and identified "staycation" markets throughout Minnesota and Wisconsin. • Investing in Web site optimizing efforts through search engines and new promotional outlets. • Replacing our five-year-old server with a new server giving us more capacity while insuring that our current/future operating system will be compatible with the latest software upgrades. Highlight/Change 2: The Bureau will launch a mobile Web site in 2009 at an additional cost of $2,500 aimed at making all of Eagan's hotels, attractions, restaurants, shopping opportunities and special events easier to access for business and leisure travelers on the go. The Eagan CVB will be one of the first destination marketing organizations in the Twin Cities to create and effectively utilize mobile technology. Highliaht/Change 3: In addition to working with officials from the Eagan Civic Arena and Cascade Bay on joint marketing efforts for 2009, the Bureau also plans to take an active role in aggressively promoting Eagan's July 4th Funfest, Market Fest and Art Festival. The Bureau spearheaded an effort in 2008 enabling the three aforementioned events to join forces on cooperative advertising efforts resulting in increased awareness and attendance. Due to this success, plans to expand on this concept are in the works for 2009. $15,000 is budgeted for joint marketing efforts. Highlight/Change 4: $56,000 will be earmarked for trade shows and targeted sales missions (including new/existing markets in Canada), compared to $46,000 last year. During the challenging economic conditions we're anticipating for 2009, we feel it's more important than ever to create/maintain a highly visible presence for Eagan in the market segments we actively work. Hiahlight/Change 5: In response to the anticipated challenging economic conditions in 2009, the Bureau will be launching a creative, cost-saving campaign aimed at saving the organization a minimum of $50,000 in operating expenses. The initiative, known to staff as "It's Fun to be Frugal," encompasses a wide range of cost-cutting measures. A few examples include utilizing Friends and Family discounts on hotel stays during sales missions and conferences, replacing specific direct mail campaigns with personalized emails and corresponding eGuides/planners and bringing previously outsources public relations efforts in-house. ~~ ~~, Cray of ~~a~a~ 2009 Proposed Budget Operating Budget Eagan Convention & Visitors Bureau Responsible Manager: Brent Cory, Executive Director EXPENDITURE SUMMARY Actual Actual Budget Budget Expenditure 2006 2007 2008 2009 Personnel Expenses $ 174,787 $ 195,494 $ 252,000 $ 261,000 Other Expenses 147,819 130,805 135,500 123,500 Office Expenses 10,388 13,480 16,000 24,500 Marketing Expenses 389,199 286,260 394,000 437,000 Travel & Entertainment 8,563 19,020 26,000 31,000 Total $ 730,756 $ 645,059 $ 823,500 $ 877,000 POSITION INVENTORY Personnel 2006 2007 2008 2009 Hours Executive Director 1 1 1 1 2,080 Sales Director 1 1 1 1 2,080 Tourism Sales Director 1 1 1 1 2,080 Sales Administrator/Travel Counselor 1 1 1 1 2,080 Marketing Assistant 0 0 1 1 2,080 Total 4 4 5 5 10,400 2009 WORK PLAN Activity Routine 1 Generate and fulfill inquires from leisure, business, meeting travelers Create/distribute collateral promoting Eagan's hotels, restaurants, attractions and shopping destinations to 2 identified markets 3 Conduct sales missions aimed at generating increased travel/economic impact for Eagan 4 Work closely with hospitality partners to continually keep Eagan top of mind in identified market segments 5 Provide superior customer service to guests interested the many amenities Eagan has to offer ~e ~r ~l bhp„ ~. ,.: ~ City oi' ia~aa 2009 Proposed Budget Operating Budget Eagan Convention & Visitors Bureau Responsible Manager: Brent Cory, Executive Director INCOME SUMMARY Actual Actual Budget Budget INCOME 2006 2007 2008 2009 Tax Income 775,238 832,422 800,000 800,000 Interest Income 4,077 8,344 3,000 17,000 Investment Income 16,853 16,682 12,500 - Explore MN Tourism Coop , 3,872 2,224 8,000 10,000 Other Income (visitors guide, etc) - Utilization of Undesignated Reserves - TOTAL INCOME 800,040 127 0 - 0 50,000 859,799 823,500 877,000 `, .ahx~; . ~ ~ ~~, ~1~~ Of ~a~an 2009 Proposed Budget Operating Budget Eagan Convention & Visitors Bureau Responsible Manager: Brent Cory, Executive Director LINE ITEM DETAIL EXPENSES Actual 2006 Actual 2007 Budget 2008 Budget 2009 Personnel Expenses Salaries 155,916 169,287 215,000 220,000 Health Insurance 4,303 9,620 15,000 17,000 Payroll Expenses (FICA, SUI, etc) 12,378 15,167 15,000 17,000 SIMPLE Matching Funds 2,190 1,420 7000 7,000 Subtotal 174,787 195,494 252,000 261,000 Other Expenses Accounting 13,208 13,561 10,000 11,000 Annual Meeting w/Annual Report - 4,671 5,500 5,500 Auto Expenses 3,728 1,844 4,500 2,500 Consulting Fees 17,641 - - - Contract Labor 23,105 30,087 33,000 20,000 Depreciation 9,260 9,763 8,000 10,000 Donations 4,568 1,215 2,000 2,000 Dues/Subscriptions 15,811 8,402 5,000 5,500 Education/Training 5,112 8,911 10,000 10,000 Equipment Lease 3,266 3,603 2,500 3,000 Equipment Maintenance 8,142 6,002 7,500 6,000 Finance Charges 699 62 - - Insurance 4,071 4,263 5,000 4,000 Legal Fees 645 - 2,000 2,000 Meetings 4,047 3,990 2,500 2,500 Rent 26,840 27,918 30,000 31,000 Telephone 7,676 6,513 8,000 8,500 Subtotal 147,819 130,805 135,500 123,500 Office Expenses Office Supplies 9,033 9,920 12,500 11,000 Small Office Equipment 1,355 3,560 3,500 13,500 Subtotal 10,388 13,480 16,000 24,500 Marketing Expenses Advertising 150,000 165,638 190,000 220,000 Events 135,541 - FAM 232 208 3,500 2,000 Fulfillment House Services 10,875 133 15,000 15,000 Newsletter/e-newsletter - 1,591 5,000 5,000 Postage 15,051 6,093 28,500 25,000 Promotion 54,712 60,064 75,000 80,000 Republican National Convention - - 20,000 - Research 1,959 8,538 5,000 12,500 Sales 80 - - - Telecommunications Services 1,331 1,869 2,000 2,500 Trade Show 13,714 19,236 20,000 25,000 Website 5,704 22,890 30,000 50,000 Subtotal 389,199 286,260 394,000 437,000 ~~' ~~~~ Of ~;~~811 2009 Proposed Budget Operating Budget Eagan Convention & Visitors Bureau Responsible Manager: Brent Cory, Executive Director LINE ITEM DETAIL CONT'D Travel & Entertainment Transportation Entertainment Meals Lodging Subtotal TOTAL EXPENSES 5,603 7,577 12,500 15,500 1,012 563 5,000 4,000 1,948 2,433 2,500 3,500 - 8,447 6,000 8,000 8,563 19,020 26,000 31,000 730,756 645,059 823,500 877,000 Net Income 69,284 214,740 `~ Agenda Information Mema Octaber 28, 2008 Special Eagan City Gouncil Meeting VI. 2009 NRAL FUND U T UDAT ACTT N T CNSID R This is an informative/discussion item and no specific action is required. FACTS • In official action at the regular City Council meeting on September 2, 2008 the Preliminary 2009 General Fund Budget totaling $27,729,200 was approved by the City Council. That Preliminary Budget reflects a 3.9% increase over the approved 2008 Budget of $26,688,500. • As was noted in the written material and in the oral presentation, staff was to continue to work on the preliminary budget to incorporate necessary changes and to perhaps modify specific line items and/or certain proposed department budgets while maintaining the overall increase to no more than 4%. • The continuing work has been undertaken in the context of the 4% goal as well as recognizing the City Council's desire to maintain status quo budgets in the Public Safety areas and to minimize service level impacts to the extent possible. Further, all inflationary and extraordinary cost increases must be absorbed within the 4% parameter. • The attached summary reflects this additional staff work and meets the above referenced parameters. These changes do not change the overall budget total. • Staff is also recommending an increase in the 2009 Proposed Budget to allow the acceptance of a $4,000 grant which would fund 2009 operation of the 12 Automatic Vehicle Locators currently in operation in the 2008 Street Department Budget. Total operational costs ($9,200) and an additional purchase of 13 more units ($10,000) have previously been removed from the 2009 budgets. That grant funded $4,000 increase would bring the total Proposed 2009 General Fund Budget to $27,733,200 which would still calculate to a 3.9% increase from 2008. • Unless otherwise directed by the City Council these changes will be incorporated into the Proposed 2009 General Fund Budget to be considered at the Truth in Taxation public hearing to be held on December 1, 2008. ATTACHMENTS: Enclosed on page (.C~Z~ is a copy of the staff recommended adjustments to the Preliminary 2009 General Fund Budget for consideration by the City Council. `°e 23-Oct-08 'Proposed General Fund Adjustments (~) Item Increase Increase Mayor & City Council Salaries 16,600 Reduction in Parks and Recreation Warming House Savings 12,600 Reinstate 2009 Fire Apprentice Class 16,500 Additional Fire Relief Pension Cost (2) 50,000 Add IT Pages and On-call 9,200 Add Citywide GIS Licensing 28,000 Totallncreases 132,900 Remove Police Department Replacement Office Furniture Eliminate Department Computer Equipment (3) Reduce Fire Department Ofi•ice Manager by .4 Reduction for Adjustment to Fuel Price Estimate (4) Total Decreases Net Reduction in Expenditures-Added to (12,000) (63,800) (28,800) Contingency Ac6ount Summary: Beginning Balance 20,000 Net Reduction in Expenditures-Added to Contingency (6) 50,900 Total Contingency 70,900 Designated for Emergency Computer Equipment Replacement (3) 20,000 Undesignated 50,900 70, 900 Notes: (1) Although some are necessary corrections and others are recommendations, the adjustments are listed in no particular order. (2) The amount of money received from the State to assist in payment of Fire Relief pension obligations was drastically reduced in 2008 and projections indicate that it will not increase in 2009, consequently the City's share of the total obligation is higher than expected when the preliminary budget was prepared. (3) All computer equipment is removed from individual departments and a designated $20,000 contingency account is created for emergency computer equipment replacement as determined by the IT staff. This will have the effect of adjusting the City's computer replacement schedule from 3 to 4 years in the short-term, while providing for response to emergencies. (4) Given today's circumstances, the estimated cost per gallon of gasoline and diesel fuel have both been reduced by $.50 to $3.25 and $3.75 respectively. (5) Given the reductions necessary to achieve the 4% increase level, staff is recommending that the available balance after these adjustments are made be placed in the Contingency account and made available for appropriation by the City Council as may be necessary during 2009. With this change the Contingency account would total $70,900 with $20,000 designated for potential emergency computer equipment replacement. l1J Agenda Information Memo Eagan City Council Workshop October 28, 2008 VII. CONTINUED DISCUSSION OF NOISE ATTENUATION ORDINANCE DIRECTION TO BE CONSIDERED: To provide direction regarding the regarding next steps for the consideration of an aircraft noise attenuation ordinance. FACTS: The City of Eagan considers aircraft noise impacts as part of decisions related to applications for new developments within the Met Councils MSP Noise Exposure Zones and buffer zone. Where appropriate, the City applies noise attenuation construction standards~as part of the approvals of such developments. As a part of its 2000 Comprehensive Plan, the City established a goal to consider the adoption of a noise attenuation ordinance that would apply to all new construction within the Noise Exposure Zones and buffer zone. On June 13, 2005, the City Council authorized the preparation of an ordinance, but the effort was put on hold pending the outcome of the MAC lawsuit. Subsequently, the Consent Decree that settled the lawsuit filed by the Cities of Eagan, Minneapolis and Richfield, required the cities to consider the adoption of such an ordinance related specifically to new residential construction within certain noise contours. At its workshop meeting of August 26, 2008, the City Council considered a range of approaches to the implementation of an ordinance and gave direction to staff to: o Continue the past practice of applying noise attenuation analysis and conditions for new development applications within the noise zones and buffer zone. o Not apply additional noise requirements for building additions or remodeling. o Inventory the number of lots that have the potential to have new buildings constructed with only a building permit and no PD or subdivision application or amendment. o Prepare a comparison of the costs of applying standards for the various noise attenuation ordinances -Mendota Heights/Met Council model, MinneapolislRichfield (Consent Decree model) and Bloomington model. Staff's analysis of the noise zones concluded: o Nine (9) R-1 lots that could possibly pull a building permit without subdivision. However, only four (4) of these lots are under 1 acre in size. Recent experience suggests that it is likely that owners would strongly consider further subdivision of the larger lots prior to additional construction. o Other noise sensitive uses include education, medical, schools, churches, hospitals, nursing homes, cultural, entertainment/recreation, transient lodging, and office; all with varying degrees of zoning and noise compatibility. However, there are very few vacant lots within the noise zones that would not require some sort of approval to Agenda Information Memo October 28, 2008 Eagan City Council Workshop Page 2 of 2 construct a facility for one of these uses. The most likely candidates would be two (2) vacant lots in Zone 3 within the Eagan Woods/Compri Hotel PD's, but construction without some sort of new PD condition would be unlikely. o Therefore, it appears that six or fewer lots within the noise zones might see the potential for the construction of a residential or other noise sensitive use, without the opportunity for the City to apply conditions through a land use approval of some kind. As a consequence of the determination that all but this small number of properties could be addressed through the development approval and condition approach the City has applied successfully for nearly fifteen years, the benefit of adopting a detailed ordinance is very limited. This also obviated the value of doing a cost comparison among the ordinances adopted or considered by the other cities. Given the small potential benefit, it does not appear advisable to draft or consider further a detailed noise attenuation ordinance. Staff and the City Attorney have determined that it would be worthwhile to consider an ordinance that would formalize the City's past practice with respect to the application of noise attenuation analysis and noise attenuation conditions for development applications within the noise zones and buffer zone and they are asking the Council to consider giving authorization to proceed in that direction at this time. ATTACHMENTS: • None ~~