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09/22/2009 - City Council Special AGENDA SPECIAL CITY COUNCIL RETREAT TUESDAY, SEPTEMBER 22, 2009 5:30 P.M. MEZZANINE-EAGAN CIVIC ARENA 1. ROLL CALL AND ADOPTION OF AGENDA II. VISITORS TO BE HEARD III. GENERAL FUND BUDGET UPDATE IV. EAGAN'S 150TH ANNIVERSARY CELEBRATION UPDATE V. OTHER BUSINESS VI. ADJOURN Cot of Ema TO: HONORABLE MAYOR AND CITY COUNCIL FROM: CITY ADMINISTRATOR HEDGES DATE: SEPTEMBER 18, 2009 SUBJECT: SEPTEMBER 22, 2009 CITY COUNCIL RETREAT-DEPARTMENTAL BUDGET INFORMATION A City Council Retreat is scheduled for Tuesday, September 22 at 5:30 p.m. at the Eagan Civic Arena (Mezzanine Level). The purpose of the retreat, per the Council's request, is to provide an opportunity for the department directors and Council to dialogue about potential budget issues facing the City in 2010 and beyond that could impact the level of service that the community currently receives. Enclosed on pages 2- through is a memo intended to be used as a discussion guide during the retreat, which summarizes, by department, the 2009 mid-year budget reductions, the 2010 budget proposals that will impact service levels, and the potential budget issues in 2011 and beyond facing the City. Also, per the request of the Council, a summary of the City's 2009 conference and training costs will be presented at the retreat, along with the proposed conference and training costs for 2010. An update will also be provided on the early retirement/separation package offered by the City. A brief agenda item has also been included on pages 1 through 10 with regard to the City's sesquicentennial (150th anniversary) that will occur in 2010. As the City prepares for a celebratory event(s), staff is seeking direction from the Council on the planning process. If you have any questions in advance of the retreat, please feel free to contact me. /s/Thomas L. Hedges City Administrator t CRY of Eayn ego TO: HONORABLE MAYOR AND CITY COUNCIL FROM: CITY ADMINISTRATOR HEDGES DATE: SEPTEMBER 18, 2009 SUBJECT: SEPTEMBER 22, 2009 CITY COUNCIL RETREAT-DEPARTMENTAL BUDGET INFORMATION Per the request of the City Council at the July 28, 2009 Retreat, a follow up retreat has been scheduled for September 22 to provide an opportunity for the City Council and Department Directors to dialogue about budget recommendations and public policy considerations in 2010 and beyond, and in particular, how budget reductions could impact the services being received by the Eagan community. Below is a brief summary from each department that highlights the potential impact of current budget recommendations or future budget considerations. Some of the information presented below was reviewed by the Council at the August 11, 2009 City Council workshop; however, additional information is being provided for discussion at the September 22 retreat regarding budget recommendations that were not proposed in 2010, but may need to be considered in 2011 and beyond. Additionally, it is anticipated that the Council and staff can discuss how services could be impacted in today's service environment versus the implications if service expectations or circumstances change in the future. The Department Directors are prepared to give bf-ief presentations on the public policy questions and service adjustments that may need to be considered for the 2010 budget and/or subsequent years. Per the direction of the City Council, the purpose of the retreat is to hear these brief presentations and then, collectively, dialogue about the impact to the community and receive feedback from the Council. Major and City Council (01) 2009 Mid-Year Budget Reductions: • None 2010 Budget Proposals that will Impact Service to the Public (Changes included in Proposed 2010 General Fund Budget): • None 2011 and Beyond-Public Policy or Budget Considerations that Could Impact Service to the Public: 1. Reduce health insurance coverage for City Councilmembers to single coverage only ( no longer offer family health insurance coverage) • Financial Impact: $12,900 (reduce to single coverage only) • Service Impact to the Public: The public would not be impacted; however, the reduction in health insurance benefits could impact a citizen's decision to seek election to the City Council as well as impact the current members of the City Council who receive health insurance benefits. 1 SEPTEMBER 22, 2009 CITY COUNCIL RETREAT DEPARTMENTAL BUDGET INFORMATION Page 2 Administration and Legal 2009 Mid-Year Budget Reductions: • Reduced Goals facilitator ($1,500), Reduced Conference expenditures ($3,500) 2010 Budget Proposals that will Impact Service to the Public (Changes included in Proposed 2010 General Fund Budget). • None 2011 and Beyond-Public Policy or Budget Considerations that Could Impact Service to the Public: • Cancel membership to National League of Cities (NLC) 1. Financial Impact: $5,500 2. Service Impact to the Public: The City would no longer be members of the largest lobbying organization for local governments; however, given the broad scope of NLC and our more local lobbying efforts (MLC, Metro Cities, etc.), it is very likely that the Eagan public would not be impacted by the reduction. 3. If the City did cancel the membership, City Councilmembers would still be able to continue attending the annual NLC Conference. Administrative Services (Finance, Human Resources, City Cleric, IT) 2009 Mid-Year Budget Reductions: • Reduced GIS licenses ($24,600), Reduced clerical shared with HR from .75 FTE to .5FTE ($6,200), Reduced conferences ($5,000) 2010 Budget _Proposals that will Impact Service to the Public (Changes included in Proposed 2010 General Fund Budget): • Given the nature of support services delivered by the Administrative Services Department, the biggest potential impacts to the public will come through not being able to meet expectations of internal users (other City departments) for information and/or support. The proposed 2010 Budget basically maintains support at existing Ievels. The 2009 clerical reduction results in a small reduction in resources available within the Department. • The proposed 2010 Budget does not include dollars to aggressively pursue initiatives to increase the use of technology either internally or externally. This will not decrease services to the public, but might not meet community or staff expectations to maximize e-government opportunities and to provide increased levels of support to City staff. 2011 and Beyond-Public Policy or Budget Considerations that Could Impact Service to the Public: • The Administrative Services Department works constantly to lower costs through increased efficiencies and process improvements. Other programs and activities have historically been driven by initiatives undertaken in departments providing direct services to the community. • The City has historically stressed a defined business purpose for using more and/or different technology which means most changes incorporate proven best practices and are efficiently incorporated into City services when adopted, but seldom is the City a first adopter. • The City continues to use a mix of centralized and decentralized activities in certain areas of Administrative Services, primarily purchasing and certain human resource activities, to maximize efficiencies and to utilize the expertise of the operating departments. • The continued movement toward increased coordination of GIS and IT activities assists in maximizing the return on technology resource investment across the entire City. SEPTEMBER 22, 2009 CITY COUNCIL RETREAT DEPARTMENTAL BUDGET INFORMATION Page 3 Parks and Recreation (Recreation, Parks, Tree Conservation, Government Buildings) 2009 Mid-Year Budget Reductions: • Elimination of two half time (1.0 FTE) positions ($25,200), intern ($5,000), tubing hill ($8,000), office equipment ($3,000), virtual tour ($4,500), fuel ($41,300), excavator ($4,800), boundary surveys ($3,000), fertilizer ($5,000), sentence-to-serve ($6,000), plant material ($5,000), Oak Wilt cost sharing ($2,000), Elimination of 1.0 FTE Building Maintenance Supervisor ($78,800) • Although the Trap Farm Tubing Hill warming house is on the list of 2009 mid-year budget cuts, the tubing hill is proposed to remain open in 2009 and is proposed to be fully funded in the 2010 budget. Based on the past two seasons, all direct expenses for this service were covered due to changes made in the hours of operations, staffing model, and cooperative weather conditions. As a result of these operational adjustments, keeping the tubing hill open in 2009 will still result in a $7,000 savings to the 2009 operating budget, thus the program is anticipated to cost no more than $1,000 in 2009. Attendance at the hill has ranged from 1,946 to 3,533 based largely upon snow conditions. • Teen programs were scaled back and Oasis "Drop-in" hours were eliminated due to the elimination of the two half time (1.0 FTE) positions. • Government Building responsibilities were added to the ECC Building Maintenance Supervisor and the Parks Operations Supervisor in lieu of rehiring the vacant Building Maintenance Supervisor position. The result has been positive changes in the level of service to the public and other City staff. 2010 Budget Proposals that will Impact Service to the Public (Changes included in Proposed 2010 General Fund Budget): • Reductions made in 2009 to the parks maintenance and tree conservation budgets continue in the 2010 budget. This will result in less plant materials being used in a number of flower beds and a reduction in the appearance or delay in the timing of the clean-ups of some parks and public areas where Sentence to Serve crews worked in the past. Residents wishing to have the City cost share in treatment of Oak Wilt or determine boundary lines between City and private properties may not be able to receive this service if available funds are exhausted. • Thompson-Reuters has recently agreed to provide the printing of the "News from the Front Porch" Senior Program Newsletter. This will result in a savings of $700 for the remainder of 2009 and $4,300 for 2010. There will be no impact to the public with this change. 2011 and Beyond-Public Policy or Budget Considerations that Could Impact Service to the Public: • Reducing the number and type of landscaped flower beds and/or reducing the amount of fertilization or weed control has potential to reduce supply costs and seasonal staffing allocations in the tree conservation budget. The sites with the highest need for regular horticulture maintenance include City Hall, the Community Center, Cascade Bay, several utility sites and fire stations. A public policy issue that will need to be addressed before any changes are made is to determine how important the appearance of these high visibility sites is to the marketing of the facilities and the overall image of the city. • Recreation programs and events continue to evolve and change based upon community needs and demographics. Staff continually monitors participant numbers, program revenues, and resident input when deciding on the program of classes and events for each season. The public is generally pleased with these changes. Many recreation programs have moved to a fee based programming model that only allow programs to take place and incur costs if there are enough registrations to cover the direct program costs. Senior programs, the Puppet Wagon, the Summer in the Park program and some special events continue to receive 50% or more subsidy. L4 SEPTEMBER 22, 2009 CITY COUNCIL RETREAT DEPARTMENTAL BUDGET INFORMATION Page 4 Community Development (Planning and Protective Inspections) 2009 Mid-Year Budget Reductions: • Reduced planning studies ($5,000), reduced economic development activities ($2,000), eliminated intern position ($13,500), fuel savings ($4,000), and reduced protective inspections staff by 1.0 FTE by reducing three inspection positions to two ($38,800) 2010 Budget Proposals that will Impact Service to the Public (Changes included in Proposed 2010 General Fund Budget): • Full year of staff reorganization noted in 2009 Mid-Year reductions ($82,000) • The reorganization of the City's code enforcement/property maintenance function will permit the department to better meet the demands of vacant building monitoring in the short run, meaning that we will be better able to respond and manage vacant property impacts for the benefit of surrounding neighborhoods. This will also position the City well for its shift to greater proactive property maintenance in the long run. • In contrast, the reduction of one full time building inspector position has resulted in our department management staff redefining timelines standards for permit review and inspections scheduling, to provide appropriate expectations to the public in those areas. Under ordinary circumstances, the residential plan review period will go from 3 to 10 business days to 5 to 12 business days and the turnaround time for inspection scheduling will go from '/2 to 2 days to 2 to 3 days. 2011 and Beyond-Public Policy or Budget Considerations that Could Impact Service to the Public: • The level of reinvestment in residential and commercial property, as opposed to new construction, during the recession has been a positive for the properties and neighborhoods in which it has occurred. It has resulted in continued activity in building permits and inspections activity, but permit value of that activity is substantially lower than that for new construction, which is value based. Even when economic recovery begins to result in a higher incidence of new construction, it will be important to evaluate means of cost recovery for reinvestment activity. • The City Council priority of proactive property maintenance is being partially implemented through'Hic vacant property monitoring program. The City currently has the means to recover out of pocket costs for weed and grass cutting and the removal of refuse, furnishings and outdoor storage. It may also be appropriate to explore additional cost recovery methods for other costs. The Department will transition toward the systematic, proactive property maintenance program as the foreclosure levels abate. In parallel, the City will want to revisit its consideration of rental housing registration or permitting. The relative costs of a program will depend on the nature and extent of the program design. • While new development application volume has been lower than in the past, due to the recession and the development stage of the community, infill, use changes and redevelopment projects create greater staff demands than green field development and activity within the division remains high (e.g. Diffley Market Place is a 2006 project that continues to require substantial staff time and attention to address neighborhood issues and project build out). At the same time, the development and application of standards and/or zoning amendments for initiatives in active living, aging in place and green/sustainability activities, either to implement the Comprehensive Guide policies or in response to interests expressed by the public, will require best practice reviews, public participation activities and possible consulting costs. SEPTEMBER 22, 2009 CITY COUNCIL RETREAT DEPARTMENTAL BUDGET INFORMATION Page 5 Communications 2009 Mid-Year Budget Reductions: • None 2010 Budget Proposals that will Impact Service to the Public: • No general fund impact, because funded from franchise fees, and should have no observable impact to the public, however, the number of residential survey questions has been cut in half (similar to 2002 levels) to accommodate a cut of up to $10,000. This may impact policymakers and administration to have as much information as they might like from survey data. 2011 and Beyond Public Policy or Budget Consideration that Could Impact Service to the Public: • Eagan Communications (staff, newsletters, Web site, etc.), Eagan Television operations(staff & equipment), and Park & Recreation's Discover publication are all funded from franchise fees, not the general fund. • In December, 2014 the current Comcast franchise will expire. Typically negotiations begin at least three years prior (2011). This will require significant legal representation to negotiate a new franchise, and may require a needs assessment and technical audit at an, as yet, unknown cost to our franchise funds. • Franchise and PEG fees (Public, Educational Governmental fees for public access equipment) are both expected to be lower than current levels, presenting a significant challenge to how Eagan continues to provide the public with communications and public access television from 2015-forward. Staff is working on other revenue- generation approaches. Additionally, primary reliance on Comcast for Institutional Network (I-Net) connections to two of our fire stations and South Water Treatment and back-up/redundant data connections to LOGIS and to the State to relay required criminal justice data, may also be in question. Public Works (Engineering, Streets and Highways, and Central Services) 2009 Mid-Year Budget Reductions: • Reduced fuel ($55,000), software ($1,500), professional services ($2,500), conferences/training ($4,500), local meeting expenses ($500), street repairs ($30,000), and snow/ice removal ($26,000) 2010 Budget Proposals that will Impact Service to the Public (Changes included in Proposed 2010 General Fund Budget): • Eliminated Traffic Engineering software and training: 1. Financial Impact: $2,500 2. Service Impact to the Public: Reduced ability to evaluate intersection efficiencies for congestion relief options, potential safety improvements and CIP planning. • Reduced Concrete Curb and Sidewalk repair and Pavement Striping (centerline, shoulder and pavement messages) 1. Financial Impact: $23,000 2. Service Impact to the Public: Visible reduction in aesthetics and perceived decrease in infrastructure maintenance/standards • Replace Contractual Snow Plow Turf Repair and Weed Spraying with in-house personnel 1. Financial Impact: $4,300 2. Service Impact to the Public: Delay in service delivery increasing property owner complaints and perceived decrease in infrastructure maintenance/standards 2011 and Beyond-Public Policy or Budget Challenges that Could Impact Service to the Public: • Reduce/eliminate seasonal intern positions SEPTEMBER 22, 2009 CITY COUNCIL RETREAT DEPARTMENTAL BUDGET INFORMATION Page 6 1. Financial Impact: $17,000 2. Service Impact to the Public: Indirect. Either 1) these services would be transferred to higher fee consulting personnel impacting the Major Street Fund, 2) inspection services would be reduced potentially impacting the quality of the finished product, or 3) the annual CIP Street Rehabilitation Program would have to be reduced resulting in long term impacts on future costs due to longer life cycle between rehabs. • Reduce Maintenance Personnel through attrition 1. Financial Impact: Approx. $75,000/employee, less yet to be determined increase in other areas (i.e. Overtime by others, contractual services, etc) 2. Service Impact to the Public: 1) these services would have to be performed by higher fee contract services on an as-needed basis, 2) increase in completion/response times for critical operations (i.e. snow & ice control services, pavement patch & repair, tree trimming, etc), and/or 3) elimination/reduction of preparatory street maintenance prior to the annual CIP Street Rehabilitation Program resulting in increase contract costs and higher assessments to property owners. • Transfer Street Repair Supplies and Contractual Labor to the Major Street Fund 1. Financial Impact: $110,000+ 2. Service Impact to the Public: Indirect This would add related costs to the 5 year CIP, thereby either 1) increasing the amount of special assessments to property owners, or delaying the life cycle street rehabilitation improvements by 1-4 years, resulting in the streets deteriorating to a lower Pavement Condition Index (PCI) and perceived decrease in infrastructure maintenance/standards. Fire 2009 Mid-Year Budget Reductions: • Reduced volunteer pay ($58,000), conferences and training ($9,000), travel ($300), and fuel ($15,400) 2009 Impacts 1. Reduced equipment budget resulted in additional funding required for major fire hose failures. 2. Reduced recruit training budget resulted in additional funding required to cover an unplanned 2009 recruit class due to loss of 20 volunteers. 2010 Budget Proposals that will Impact Service to the Public (Changes included in Proposed 2010 General Fund Budget): • Reduced TrainingsNolunteer Compensation ($11,400) 2011 and Beyond-Public Policy or Budget Considerations that Could Impact Service to the Public: 1. Training budget: Continued reduced weekly trainings and reduced specialized certification trainings may result in lower competency levels and moral issues with volunteers. 2. Staffing. a. Need to have a yearly recruit class due to continuous turnover rate in volunteers (tried to reduce to every other year). b. Concerns over daytime response may require the addition of a duty crew. SEPTEMBER 22, 2009 CITY COUNCIL RETREAT DEPARTMENTAL BUDGET INFORMATION Page 7 3. Equipment replacement: We have added a replacement plan for apparatus, but Fire still needs to come up with a replacement plan method to replace large cost items such as turnout gear, hydraulic rescue tools, gas monitors, nozzles, and thermal imagers. With reduced equipment budgets we are struggling. Police 2009 Mid-Year Budget Reductions: • Elimination of 2.0 FTE Patrol Officers ($92,800) Impact: Coupled with managing workforce issues (i.e. injuries/illnesses, time off requests, maternity/paternity leaves, etc) the elimination of these positions has caused staffing levels to be at "minimum coverage" more frequently. However, to help compensate for the loss of personnel in the patrol division, the department made some schedule adjustments and eliminated the Rotating Detective causing an investigator to be transferred to uniform patrol. Although the department is more readily able to manage the issues listed above, other investigators have seen an increase in their case loads. • Fuel savings ($79,300) • Elimination of 1.0 FTE Crime Analyst ($76,800) Impact: Although data quality assurance, crime mapping, and statistical charts are being completed by an unpaid volunteer, sworn staff members have been performing tasks that were once the responsibility of the crime analyst. • Elimination of 1.0 FTE Office Support Specialist ($22,400) Impact: The loss of this position has resulted in staff reports being delayed for public information, court proceedings, and other administrative purposes. Total 2009 Mid-Year Reductions: ($271,300) 2010 Budget Proposals that will Impact Service to the Public (Changes included in Proposed 2010 General Fund Budget): Impact: The submitted 2010 Police Budget proposes no further service reductions other than what was outlined above. 2011 and Beyond-Public Policy or Budget Considerations that Could Impact Service to the Public: Absent any further budget reductions, the police department does not anticipate any additional service reductions. /s/Thomas L. Hedges City Administrator Agenda Information Memo September 22, 2009 City Council Retreat IV. EAGAN'S 150TH ANNIVERSARY CELEBRATION UPDATE Action to be Considered: Staff is seeking direction from the City Council on preparations for the City's 150t" Anniversary celebration. No formal action is required. Policy Discussion: • In order for the City of Eagan is to take full advantage of the 2010 opportunities to recognize and celebrate its 150th anniversary, it would be helpful to have guidance from the City Council on the following public policy questions: A) Does the City Council wish to have a Volunteer Committee for the 150"'? B) If so, is it desired that members be recruited as soon as possible, or does Council prefer to have an application and interview process? C) What expectations would the City Council like to set for the 150t" and/or its own involvement in the planning process? D) Does the Council have a preference for possible Chair candidates? (We are drawing up a preliminary list of names, but have approached no one as of yet.) E) If there is a volunteer committee, we envision about 12 members, including the Chair, an ECVB rep., a longtime resident, a Chamber or business community rep., City Communications, a local marketing or special events person, A Funfest Committee member because of a tie to the July 3-4 celebrations, someone skilled in fundraising, and other positions as appropriate. Is the above framework for participants agreeable or are there additional factors staff should consider? • If it is the wish of the City Council to have a volunteer committee (drawn from the community) to guide our sesquicentennial planning, it would be our recommendation that a volunteer chair should be named as soon as possible and the balance of the committee be selected no later than mid-October. It would be our hope that such a committee could begin its work by mid-October and bring back initial concepts and proposed dates for Council review at its December 9 work session. • While the Eagan Convention and Visitors Bureau has generously pledged up to $25,000, they have encouraged us to recruit other donations. This can only be done by a volunteer or volunteer committee as the City cannot legally seek charitable contributions on its own. Additionally the City has budgeted only $4,000 for the observance(s), including one-time advertising, a properly sealed time capsule and other material expenses. q Initial 150th Celebration Concepts (Subject to Revision) January, 2010 150th year begins. Some appropriate bannering around town. March/April 2010 Celebration of actual founding date or first Township Board Meeting, perhaps as part of special State of the City, perhaps held off-site July, 2010 Possible All Eagan Reunion or other big event as part of the July Funfest celebration. Funfest Committee excited about this. Remainder of 2010 Other events as desired or appropriate • Director Garrison is prepared to address other specific ideas to brand and commemorate the 15 0th celebration.