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03/08/1994 - City Council SpecialAGENDA SPECIAL CITY COUNCIL MEETING Tuesday March 8, 1994 5:00 p.m. Eagan Municipal Center I. ROLL CALL & ADOPTION OF AGENDA II. FIRE RELIEF PENSION COMMITTEE III. UPDATE SOUTH DODD ROAD AREA W. DEVELOPMENT UPDATES • Elementary School Site/T.H. 3 • Tax Credit Housing for Elderly • Other V. DISCUSSION RE: POLICY CONSIDERATION TO DESIGN & CONSTRUCT ALL PUBLIC IMPROVEMENTS AS PUBLIC CONTRACTS VI. DISCUSSION RE: USE OF PCI INFORMATION FOR PUBLIC IMPROVEMENTS VII. UTILITY RATE INCREASE VIII. CAPON' ART PARK /LAND ACQUISITION IX. DIRECTION RE: MEDIATION/POLICE NEGOTIATIONS X. OTHER BUSINESS XI. ADJOURNMENT MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: MARCH 4, 1994 SUBJECT: SPECIAL CITY COUNCIL MEETING /MARCH 8, 1994 At the last regular City Council meeting held on Monday, February 28, a Special City Council meeting (workshop) was scheduled for Tuesday, March 8, at 5:00 p.m. to discuss a variety of issues. Fire Relief Pension Committee Representatives of the Fire Relief Pension Committee have requested time to meet with the City Council and present information relative to the Fire Relief Association's request to increase the lump sum pension amount. This item has been discussed at previous work se ions. For a copy of information previously distributed to the City Council, refer to pages through /6 Update South Dodd Road Area Director of Community Development Reichert and Director of Public Works Colbert have been collaborating in an effort to address overall development options for the future development of the South Dodd Road area. The impact of public improvements, special assessments and types of development options will be presented for discussion and review at the meeting on Tuesday. Dr. Fitz and his development consultant will more than likely be present to observe the discussion. Development Updates Staff from the City of Eagan and Independent School District 196 have been meeting to explore options for an elementary school site in the general area of Gun Club Road and Haley's Addition. School Board members have received calls from constituents raising concerns about siting an elementary school adjacent to railroad tracks and a gun club. Staff of both the City and the school district have looked at other options and the result of that discussion and review will be shared with the City Council as an update. The City has been contacted by a developer who is proposing a tax credit housing project for the elderly at the southwest quadrant of Pilot Knob Road and Lone Oak Road. Community Development Director Reichert will provide some additional information on both of these possible developments at the meeting on Tuesday. Discussion Re: Policy Consideration to Design & Cnstruct All Public Improvements as Public Contracts At a Special City Council workshop held in November of 1993, the City Council raised a public policy issue of whether the City should continue to offer a choice to developers as to bow infrastructure is designed and financed. Currently, the City's policy allows developers the choice to petition the City for the installation of utilities and streets as a public improvement which allows the City's in -house and consulting staff to design the system and to sell bonds for the financing of the improvements. The other choice is for the developer to retain their own engineer of choice who designs the infrastructure system which is then financed by the developer. At the November meeting, for a variety of reasons, it was suggested by the City Council that the City change its policy to require public improvements to be designed, installed and financed under a public contract. Some of the logic for a change in the public policy discussed at the meeting has to do with the level of design complexity of the City's utility and street system. By using the City's in -house or consulting engineering staff, new construction will be designed in accordance with the City's utility and street master plan. By financing the public improvements, the City has a better handle on the contractor and the public bonding will ensure proper financing of the project. At the request of the City Council, support information has been collected by the Director of Public Works and is enclosed on pages / 2 through 42 for your review and consideration. Discussion Re: Use of PCI Information for Public Improvements At a recent City Council meeting, there was a request that a general discussion be held at a work session on how staff should present results of the pavement condition index (PCI) to the City Council for future street reconstruction projects. PCI rankings generally consist of 0-35 reconstruction required, 35 -55 suggests a patch /repair and /or overlay and finally, 55- 100 is considered routine requiring either crackseal or sealcoat. This discussion /update is intended to provide staff and the City Council with a future understanding as to how PCI data should be presented by staff and used by the City Council in the decision- making process and whether further detail presentations /workshops would be beneficial in understanding the full scope of engineering analysis for pavement management. Utility Rate Increase At the February 28 regular City Council meeting, the proposed water and sewer utility rate increase was continued for further consideration and review by the City Council. Enclosed and referenced as pages , through M is a memo prepared by the Director of Finance that provides additional information and reasons for the proposed utility rate increase. Caponi Art Park /Land Acquisition Discussions have been ongoing regarding the future use of Remo Caponi's property, a seven acre parcel located between the Lexington /Diffley athletic complex and the Caponi Art Park. There have been meetings and telephone conversations the City Council has had with Tony Caponi and Remo Caponi and, more recently at the workshop on February 28, a brief discussion by the City Council and Director of Parks & Recreation about the proposed use of the property. A public policy question, simply stated, is whether the City should acquire the Remo Caponi property for 1) parkland to add to the City's present inventory of passive parkland area or 2) to hold the property for a specified period of time and sell it to Mr. Tony Caponi for a foundation to be added as a part of the Art Park holdings. City Councilmembers asked that this item be placed on the work session agenda for further discussion. Direction Re: Mediation/Police Negotiations Enclosed without page number is a memo prepared by the City Administrator and Assistant to the City Administrator Duffy regarding a scheduled mediation session with the police officers on Thursday, March 24. The City Administrator is seeking direction from the City Council regarding the City's position to be presented at the mediation session. This item is being placed last on the agenda and will be discussed absent press or anyone in attendance. The City Council can adjourn and consider this item in executive session recognizing that the presentation and discussion must be taped according to past practice. Other Business There are no other business items to be considered at this time with the exception of scheduling a meeting date to consider the preliminary findings of the City's traffic consultant, Strgar- Roscoe - Fausch, in regard to the ring road study. Staff is suggesting the City Council meet on Tuesday, March 22, at approximately 5:00 p.m. to hear a presentation and receive data from Strgar- Roscoe - Fausch regarding the ring road study in the general area of Pilot Knob Road and Yankee Doodle Road. The consultants will present 1) findings of current traffic capacity, 2) what additional capacity can be provided by certain roadway improvements and transportation improvements and 3) data on projected traffic generation if a total build -out occurs in those four (4) quadrants. The APC and EDC will be receiving a similar presentation on Thursday, March 17. /S/ Thomas L. Hedges City Administrator Eagan Fire Department Relief Association DATE: March 4, 1994 TO: Tom Hedges, City Administrator FROM: Mark Sportelli, EFD Pension Committee Chair SUBJECT: 1994 FIRE DEPARTMENT PENSION Thank you for arranging a meeting between the Fire Department Pension Committee and the City Council on Tuesday, March 8, 1994. We will be available anytime during their 5:00 - 7:00 p.m. workshop. Attached are copies of the previous two pension data submittals, in case you want to make a complete package available to the Council. Attachments MS /tp 3795 Pilot Knob Road • Eagan, Minnesota 55122 • (612) 681 -4770 To: Tom Hedges, Eagan City Administrator From: Hark Sportelli, EFD Relief Association Date: February 7, 1994. . Re: 1994 Pension Clangs Rationale This note is in response to your mem "FIRE PENSION AMOUNTS /1994- 1996" dated 1/6/94. - We will.attempt ere to answer City Council - concerns and also to request a meeti:}g with Council to address any additional questions. Regarding the council's request for an "addendum to specifically state why the Relief Association feels an increase is necessary ", we offer the following rationale: 1. An attractive pension plan is needed as an incentive to recruit and retain volunteer firefighters. We believe that it is cost effective to maintain a volunteer Fire Department, and we want to insure that we have the personnel to accomplish that. There are many reasons why it's - becoming more difficult to attract. volunteers, including • increased dangers (e.g., increased exposure to hazardous materials, bloodborne pathogens, and other health hazards) and increased time commitments (eg., additional State - required training for EMS and HAZMAT). The "demise of the one -earner family" resulting in both spouses working affords less time for volunteerism. 2. We believe that the work commitment of the volunteer firefighters in and of itself warrants our proposed pension increase. Our previous DETAILED FACT SHEET enumerated the many fire activities the Eagan firefighters are involved in, including building and equipment maintenance, training, purchasing, and administrative. Not to mention the primary _ firs activities of Fire Prevention and Fire Suppression. 3. Basically, we believe that the proposed increase to $3500 will not accomplish our goal of a fair and equitable pension plan. There has been no pension increase since 1/1/91, three years ago. An increase from $3375 to $3500 would represent an increase of about 1% per year. Furthermore, the current City funding level is currently $104,000 per year. A funding level of $3500 would require annual City funding of only $59,000. Certainly a savings for the City - but is it the Council's intent to reduce pension funding? Incidentally, the fire pay scale (for fire calls and officers' pay) has not changed for the past 4 years. The fire pay budgets for those years have been: 1993 $270,000 1992 264,000 1991 . 273,000 _1990 260,000 As you can see, the total compensation plan has been stagnant for the last few years and is in desperate need of updating. Another concern we believe the Council has is regarding special State pension legislation for Eagan. It appears that Council fears that some kind of stigma may be attached to a City seeking special legislation. We are unsure of the basis for this concern but will attempt to address it as follows: We contacted Jim Gelbmann (297 -3675) of the State Auditor's office and asked him whether special legislation by a City triggers his.office in any way. Nis response was that his office merely performs statute oversight to insure State law compliance. He said he would be no more or less zealous in his activities regardless of whether a community sought special pension legislation. An additional contact was made through MARAC with State Senator Enickerbocker (member of the pension committee). His feeling was that, even though Eagan had requested special legislation last year, that fact would have no bearing on future legislation requests. His committee is chartered to react to each . problem /request as they occur. They deal with such problems as they occur, on a case by case basis. He saw no problem with Eagan requesting special pension legislation during the 1994 session. We tried to keep this memo brief and to the point. Difficult to do with so much to say. We think a better forum for answering Council's concerns would be a meeting with Council or a few of its members. We believe such constructive dialog would more expeditiously settle the pension issue. Please forward this data to Council, and if at all possible, please arrange a meeting between Council representatives and the EFD pension committee. CC: Dale Nelson, EFD Chief sAwpdees\t asApiea4.l4 6 Eagan Fire Department Relief Association To: Tom Hedges, Eagan City Administrator From: Mark Sportelli, EFD Relief Association Date: December 30, 1993 Re: Proposed 1994 Pension Changes This briefing package is in response to the Eagan Council's stated desire for: . supporting data . no pension 'funding increase for 1994 The supporting data can be found in the following attachments: • 1. Proposed Benefit Changes - giving both the benefit changes and their respective costs 2. OVERVIEW FACT SHEET - overview of FD activities 3. DETAILED FACT SHEET - detailed FD activities 4. FIRE DEPARTMENT PENSION SURVEY - giving comparative statistics for other Metro fire departments 5. EXECUTIVE SUMMARY OF NEWSWEEK ARTICLE 6. NEWSWEEK ARTICLE The desire for no pension funding increase for 1994 is consistent with our request for the new pension schedule to begin on 1/1/94. It has always been the case, in the past, that the year of the pension change is the year that the budget request is first made for that pension change (whose funds are then actually received in the following year). So, the scenario would be: . .new pension goes into effect 1/1/94 . funding request for that pension schedule is made in 7/94 . funds received for that funding request are in 1995 The cause for confusion this year was that the FD was attempting to get the funding for the pension change started 1 year early, in order to retire the unfunded liability earlier. But under the law, that's not really required. CC: Dale Nelson, EFD Chief c:\Mpdocs\tlood \p.n3.94 3795 Pilot Knob Road • Eagan, Minnesota 55122 • (612) 681 -4770 Eagan Fire Department Relief Association Proposed Benefit Changes December 30, 1993 A. Benefit changes - to be effective as of 1/1/94. Item 1: Monthly pension to change from $22.50 /month per year of service to $28.17 /month per year of service. Optional lump sum benefit to change from $3375 per year of service to $4225 per year of service. Item 2: For members choosing the optional lump sum pension benefit, pay for partial years of service (whole months). Currently, only whole years of service are considered. Item 3: Add a death benefit for active members with less than 5 years of service, according to: 1 year but less than 2: pay $4225 times 1 times 24% _ $1,014 2 years but less than 3: pay $4225 times 2 times 28% = 2,366 3 years but less than 4: pay $4225 times 3 times 32% = 4,056 4 years but less than 5: pay $4225 times 4 times 36% = 6,084 B. Costs of benefit changes - funding of new benefit level to begin in 1995. Item 1: $20,757 per year, calculated as follows - Annual pension contribution for 1995 $240,070 Plus administrative costs 8,500 Less State aid for 1995 - 123,407 Less City pension and admin. costs for 1994 - 104,406 Total difference between 1994 and 1995 20,757 Item 2: $9,048 per year. Item 3: $99 per year. 3795 Pilot Knob Road • Eagan, Minnesota 55122 • (612) 681.4770 C. Methodology (basis of funding estimates) The benefit costs were obtained via acturial survey (from The Wyatt Company). The normal process, as used here, of transitioning into a benefit change, is to authorize the benefit change to begin in one year, and then begin the funding for that change the next year. The data provided to the actuary included: . personnel as of 12/31/93 (service dates and ages) . vested retirees . fund assets as of 12/31/93 ($1,917,213) . pension and death benefit schedules The number of active firefighters as of 12/31/93 is 91. The number of firefighters for the previous 4 years was: . 1992: 98 firefighters . 1991: 98 . 1990: 97 . 1989: 99 D. Summary The total cost to the City of the three benefit changes is $29,904 per year. The last benefit changes were made 3 years ago, in 1991. The changes proposed here are understood to be effective for the next 3 years (1994 - 1996). The monthly benefit change to $28.17 is permitted by current State law and no special legislation is needed for this benefit change. Special legislation would have to be obtained to accommodate the lump sum benefit increase beyond $3500 /year of service. The plan is to implement City- approved changes as of 1/1/94, but not to exceed current State maximums. Then, later, if special legislation is obtained, the City- approved lump sum benefit change would be implemented. The Pension Committee, chaired by Mark Sportelli, will be available to meet with you at your earliest convenience to discuss this proposal. Mark's home telephone number is.452- 5253. e:\wpdoes \flood\psn.94 Mark Sportelli, President Eagan Fire Department Relief Association 9 OVERVIEW FACT SHEET for the Eagan Fire Department a volunteer organization serving the City of Eagan compiled 12 -30-93 E!' 5-year average of 538 emergency Fire Department calls per year Cr7' 5-year average of 36,000 work hours per year ®' Current staff of 91 volunteer firefighters and officers Er City of Eagan population at 51,225 Er Firefighter training programs (apprentice firefighters, firefighters, officers) B Fire Prevention activities (numerous organized programs) G7' Supporting organizations (Auxiliary, Fire Explorers, retirees, mutual aid) ®' Maintenance activities (stations, trucks, property, systems) Et' Administrative meetings (regular meetings of officers, boards, committees) B' Purchasing activities (research, pricing, purchasing) ®' Unusual personal sacrifices (health and property hazards) ®' Economics (all volunteer) CONCLUSION: The firefighter pension is an important tool that the City of Eagan uses to maintain an appropriate staff of volunteer firefighters. c \wpdocAflood \rel.7 STATISTICS: 1. 5 -year average of 538 emergency Fire Department calls per year. Fires by time of day are for the past 5 years are: Time # Calls 0000 -0159 149 0200 -0359 90 0400 -0559 86 0600 -0759 150 0800 -0959 167 1000 -1159 265 1200 -1359 276 1400 -1559 311 1600 -1759 336 1800 -1959 387 2000 -2159 287 2200 -2359 193 2. 5 -year average of 36,000 work hours per year (for calls, training, fire prevention, maintenance, administrative). 3. Current staff of 91 volunteer firefighters and officers plus clerical staff of 2 secretaries (one full-time, one half-time). 4. City of Eagan population at 51,225—projected to be at 63,500 by the year 2000. Coverage is for 35 square miles. MISCELLANEOUS DETAILS: DETAILED FACT SHEET for the Eagan Fire Department a volunteer organization serving the City of Eagan compiled 12 -30-93 1. Firefighter Training Programs: • Rookies: 42 classes of 2 -3 hours duration, consisting of: 20 classes in firefighter training 14 classes in 1st responder (medical) training 8 classes in truck driving and pump operation • All officers: monthly officer training classes (2 hours each) • All firefighters: weekly firefighting /medical /Hazmat training classes (2 hours each) • Special schools: Minnesota sectional schools and state schools, vocational schools, National Fire Academy, other out -of- city /state schools • Training conferences and conventions 1/ 2. Fire Prevention Activities: • Annual fire prevention week (school and fire station programs) • "Learn Not To Burn" program for schools • Fire prevention training for senior citizens in high rises • Fire extinguisher classes for commercial /industry • Neighborhood Fire Safety Watch training • Fire prevention training for children in day care • Fire prevention training for Lewis House clients • Safety camp, 2nd year in 1993 • Fund raising for fire safety house (children's fire safety training) • Fire prevention demonstrations at 4th of July celebration • Public relations (parades, newspaper articles, annual dance, etc) 3. Supporting Organizations: • Auxiliary group (various community services such as babysitting clinics on safety, donations to Community Action Council, 911 stickers for Eagan Telephone Directory, annual Christmas party for firefighters /police /Lewis House children, donations to American Cancer Society; firefighting assistance such as food preparation at fires) • Fire Explorers group (trained in firefighting by Eagan firefighters; assist at emergency calls, safety camps, health faires, etc.) • EFD Retirees group (maintain maps, assist at emergency calls, etc.) • Mutual Aid with neighboring fire departments 4. Maintenance Activities: • Station maintenance (regular maintenance of stations and related property, remodeling, etc.) • Truck maintenance (regular weekly maintenance, special projects, etc.) • Property maintenance (truck and personnel gear maintenance and replacement program) • Systems maintenance (maintain currency of street maps, sectional maps, and preplans) • SCBA maintenance (maintain operation and repair of SURVIVAIRs) S. Administrative meetings: • Officers' business meetings (bimonthly) • Executive Board meetings (twice monthly) • Review Board meetings (quarterly) • General meetings (every two months) • Committee meetings (bylaws, SOP, truck replacement, stations, automation, chiefs, pay, training, election process) • Relief Association meetings (bylaws, committees, financial seminars) 6. Purchasing Activities (research /pricing /purchasing): • Trucks Supplies • Firefighting personnel gear • Tools and Equipment 7. Unusual Personal Sacrifices: • Health hazards (risks to personal health) — communicable diseases such as HIV, Hepatitis (and other such bloodborne pathogens), TB; chronic diseases such as cancer, pulmonary problems. In the past two years, Eagan firefighters have responded to 148 "heavy" rescue calls involving extrication of victims, normally with multi - trauma, and normally with exposure to bodily fluids. • Family disruptions (emergency calls at all hours, baby sitting problems) • Job disruptions (attend work after all night fire) • Personal material loss (damage to clothing and personal automobile usage) • Injury hazards —In the last two years, Eagan firefighters have experienced a total of 1,068 days of "light duty" (time they could not respond to fire calls due to injuries incurred in the line of duty on the Eagan Fire Department). Types of injuries included: lower back injury injuries to hands and feet respiratory distress (natural gas, ammonia) neck injury knee injury heat exhaustion Hazardous Materials (HAZMAT) dangers—in the past two years, Eagan firefighters have answered 80 HAZMAT calls, consisting of: 42 vapor gas leaks (eg., LP, propane) 24 fuel spills 10 chemical fires 4 hazardous material spills (eg., amonia, chorline, etc) ECONOMICS: The City of Eagan has chosen to retain and encourage a fully volunteer firefighter staff. The cost benefit to the City of such an organization is overwhelming. With firefighter applications decreasing each year, the challenge to the City is to maintain firefighter benefits that will continue to attract volunteers. Demographic, social and other changes need to be accommodated: • With the increase in hazardous materials, firefighting is becoming even more dangerous as an occupation. • Time demands upon firefighters are increasing (due to population and industry growth, increased OSHA requirements for training, etc.) • Attitudes of generations change. More people become "me" oriented and are less likely to volunteer. The firefighter pension is an important tool that the City of Eagan uses to maintain an appropriate staff of volunteer firefighters. c‘wpdocs‘ flood \rc,.G Z3 FIRE DEPARTMENT PENSION SURVEY DA'TED 12/30/93 > > > > > > > > > > > e6uvy3 aleQ Pei Z661 £66 £661. P661. 1661 1661 0661 1+661 £661 1661 £66 uopngpluo3 uolsuad A113 000'oe 000 'Le oos'zz 000'1'0 981' 000 '1. 699'8£ 0 000'L 11 000'08 la £681 leio.l 000'oos 000'001' 2,240,857 000'0£Z 001'1'1'1. 9Z6'9E8 1,035,980 I 000'0eb 000'006 kkteoz£ Monthly Benefit $ per Mo/Yr 00 OS'ZZ 08'LS V/N (AZ Z V/N 00'0£ 00 00 00•02 I V/N 'pees ieM -oz V/N 000'09 V/N 000'Z1' 009'1.9 000'79 000'09 009'9Z 000'0L 000'01' I 000'96 slie3 SW3/a OOL 0001 ZZE 6Z9 055 OSL 91.8 azls ideCI e 01' Ohl 91' 16 EL 2 6£ .. 90 81. OL ells 008'1'e 000'0Z 000 000'91 SZZ' 19 000' 11' 008'1.1' 008' 1Z 000'£9 000'01' 009 'sz Ails Apple Valley Brooklyn Clr uol6uluwolg Chanhassen ue6u3 Maple Grove Minnetonka edoH maN 41nould apinasod LingpoOM FIRE DEPARTMENT PENSION SURVEY DA'TED 12/30/93 EXECUTIVE SUMMARY OF DECEMBER 13, 1993 NEWSWEEK ARTICLE ON VOLUNTEER FIREFIGHTERS . national problem - "not enough volunteer firemen around anymore" . increased responsibilities - more fires, training . economics - "demise of one - earner family - average guy is working two jobs, and his wife is working too" . loss of community spirit - "people have forgotten they belong to a community" "Society has really changed, and pressure is growing on those who are left" says Robert McKeon, chairman of the National Volunteer Fire Council. c:\Mpdoes \flood\ssl.$ /S f 1 Fighting Fire With ...What? Alarms: The ranks of volunteer companies have shrunk, leaving communities poorly protected A up REYD1 AL LT " CLEAN - night" at the South PLiafiel1d. NJ., volunteer firehouse was bustling and noisy*: firefighters swabbed down concrete floors. yelled to each over the roar of diesel en- gines. clambered over trucks to check equipment. Wben the work was done. there was a sud- den quiet as the motors were shut down. Then came the part that gets shorterall the time: roll call. The outfit's normal 65- member roster recently phmn- meted to 42. many of whom are too busy for the weekly drill. South Plainfield is typical of a national problem there may not be enough volunteer fire- men around anymore. Volun- teers' ranks nationally have dipped at least LS percent in the last decade, to about 800,000. while their responsibilities have grown. Paid professionals are not replacing enough of them. and volunteers —still three out of four U.S. firefighters —must protect 60 percent of the pop- ulation. "Society has really changed and pressure is grow- ing on those who are left," say, s Robert (Red) McKeon. chair- man of the National Volunteer Fire Coumd. time South h housing � Monde and the demise of the one - earner family. The average young guy is working two jobs, and his wife is worldng, too." says Joseph Abbruzzese, South Plainfield's dep- uty chief. "If they give time, it's for Little League—otherwise they'll never see their kids." Also, fewer residents work for local mom -and -pop businesses, where folks were once expected to drop everything for an alarm. Instead. they commute to far- away towns car work for big companies. which often discourage employees from disrupting the day by going to fires. In any places, the problem may run deeper than time and money. Once -small towns have sprawled into shapeless sub- urbs whose boundaries are just a line on a map. and where residents feel that home terminates with the front lawn. "People have forgotten they belong to a communi- 730 NEWSWEEK DECEMBER ;. i.\>.; mends: Cotone (center) and South Plainfield fi tv . ' says fire marshal Robert Bettenhausen of Tinley Park. Ill.. just .rest of Chicago. which has grown twentyfold since he first joined the local fire company 41 years ago. Beth '.veveL until recently administrative fire chief of fast - growing Hillsborough County. Fla.. says most people moving into new subdivisions from big cities 'don't even know we have a volunteer fire depart- ment — they think fire protection is covered by taxes." The volunteers face more demands all the time. Hoses that used to be handled by four or Ere firefighters now are wrestled into burning houses by two. Training re- quirements have gone from zero to as much as 200 initial hours in some areas. This is because environmental. traffic and worker- safety agencies have added regula- tions on everything from truck driver li- censes to how to clean up gasoline spills. Many volunteers must now be prepared for accidents involving hazardous materials — South Plainfield has become home to chem- ical suppliers. a pesticide factory and a maker of nuclear isotopes. And the number of calls rises each year. with the increasing number of factories and growing traffic on highways that run through town. "Sometimes you're ex- hausted —you just do the best you can." says Floyd Bosse. a 3oagtime South Plainfield vol- unteer who runs a service sta- tion seven days a week to sup- port his six kids. Macho pursuit: Some towns have had to come up with new ways to recruit and keep volun- teers. More are accepting those who don't want to fight fires but who can maintain machinery or answer phones. Some have hired a few paid firefighters to help cover weekday working hours. Others have started gr ing small pensions to vain, teers who stay in for the long haul, or token payments of 32 or 33 per call. The affluent New York City suburb of Dobbs Ferry even opened a low -cost housing deve last year for its volunteers, so they could afford to live in town. Fire companies maybe partly to blame for their own thin ranks. While volunteer fire- men often do not fit the blue- collar stereotype, a startling 98 percent are white males. "Worn - en en are excluded because it's a macho pursuit. And a lot of minorities undoubtedly feel uncomfortable applying." says refighters John Buchman, chief of the Ger- man Township (Ind.) Fire De- partment. South Plainfield. for instance. has one female member and one black man. an under—I8 'junior" member. Argues Buckman: "It's our job to go to them and tell them they're welcome and valued." So far. no one in South Plainfield has died or lost a home because too few volun- teers showed up at a fire. When the ranks are thin. says chief John Cotone. be has "art shame" about dialing up mutual aid f the neighboring Newmarket volunteer i.w- partment. or even begging help from the paid firefighters in nearby Plainfield —if they are available. The problem. says New- market chief Nick Lombardi. is that he has lost 20 percent of his own members in the last year: now he must ask for help as often as he gives it. What will happen if. some- day. they give a fire and nobody comes? Krvi, ■ KIIAIICKin South Plainf�eld Ntltl 4A.. » rtK \ t: \t.W MEMO TO: MAYOR & CITY COUNCIL THOMAS L HEDGES, CITY ADMINISTRATOR FROM: THOMAS A COLBERT, DIRECTOR OF PUBLIC WORKS DATE: FEBRUARY 3, 1989 SUBJECT: PROPOSED POLICY FOR THE DESIGN AND INSTALLATION OF PUBLIC INFRASTRUCTURE FACILITIES I would like to present for your consideration the attached Policy and related Procedures and Guidelines for the design and installation of public infrastructure facilities that will be owned, maintained and operated by the City in perpetuity on behalf of the citizens of our community. The following summary may be helpful in understanding the purpose of bringing this issue to your attention for formal consideration. HISTORY It is my understanding that from the early beginnings of Eagan until 1983, all public infrastructure facilities were designed and constructed by the City of Eagan with the assistance of the consulting engineering firm of Bonestroo, Rosene, Anderlik & Associates, Inc. In the fall of 1978, the City hired the first full -time city engineer to manage, direct and coordinate the development of the community as it pertains to the public works and engineering related responsibilities. With the accelerated growth that the City was experiencing in the late '70's and early '80's, the available City staff (2 -3 people) and the lone consulting engineering firm (BRAA) could not keep up with the demand for development occurring at that time. Subsequently, in approximately 1983, three alternatives were explored to address the need to manage this technical growth of the City: add extensive additional City staff to perform the additional engineering services in- house; to expand the number of consulting engineering firms allowed to provide professional services to the City; restrict /control the rate of growth to what could be handled by available resources; or to allow developers to perform and provide the technical engineering related services on a private basis to be turned over to the City at a later date. From 1983 to 1988, the attached Exhibit "A" shows the listing of approximately 37 different private consulting engineering firms who performed work in the City of Eagan on public infrastructure facilities. Exhibit "B" is a listing of 61 developers who have processed development applications through the City during 1987 and 1988. In March of 1988, the Council authorized the expansion of our consulting engineering services to incorporate three professional firms to provide technical expertise or additional manpower resources as necessary to handle the continued accelerated rate of growth in the community. The three consulting firms selected consisted of Bonestroo, Rosene, Anderlik & Associates (BRAG), Orr- Schelen- Mayeron & Associates (OSM) and Short- Elliott- Hendrickson & Associates (SEH). ISSUES During this period of the private design policy, the City was relegated to a review status of the detailed plans and specifications being performed privately by numerous engineering firms hired by the developer. Most / 7 Page 2 recently, the City has been experiencing problems with the public infrastructure facilities that were designed and installed privately by developers at various locations throughout the community. In correcting several of these problems, the affected developers have expressed reluctance in participating in the corrective work due to their contention that it is the City's facility and subsequently the City's responsibility. Even though certain design deficiencies had been identified, the developer's contention was that the City "approved" the plans that were prepared and submitted by the developer or his engineer. Legal costs to obtain the developer's participation are rapidly increasing, sometimes beyond the contribution the City hopes to retrieve. The new residents of our community expressed objections at having to participate in corrective work that should have been designed properly. The City's proposed contributions to corrective work will require financing out of general funds requiring the entire community to participate in this additional work. Although the City does have the opportunity for review and approval, the requirement to correct detailed plans submitted by private engineers has been met with great reluctance and challenges to our requirements by the developer and /or his engineer. This resistance is possibly attributable to the "pride and ownership" by the private engineer. The number of meetings and time delays that resulted from these arguments caused great consternation to the development community who subsequently blamed the City for holding up their process in not processing their plans in a timely manner. In trying to accommodate the development community and speed up the processing of these plans, certain errors or omissions were not identified during the review process. Those that were subsequently discovered during the construction phase were objected to by the developer under the contention that the City had previously "approved" those plans and that the developer could not accommodate any changes resulting in additional costs due to financial commitments made to others. As a result, the working relationship and end product of development in the City was degenerating. Private engineering firms were critical of our review process, developers were critical of subsequent delays and future residents were critical of being left with the problems. Subsequently, the staff firmly believes that these issues can be greatly minimized by consolidating the design process to a manageable number of consulting firms under the direct control of the professional staff hired by the City to guide the technical development of our community. Due to the complexity and number of various comprehensive plans (sanitary sewer, water, storm sewer flood management, water quality management, _land use plan, transportation plan, and City Codes) along with the continuous revision and updating of engineering standards, procedures and personnel, it is not possible to educate an unlimited number of private engineering firms to ensure that they are all kept abreast with the most current standards, guidelines and procedures. ACTION In a continuing effort to promote and nurture a strong working relationship between the City and the developing community, this proposal was processed through the Developers Task Force at six different meetings incorporating appoximately 18 hours of discussion and review. The primary objection /jSd Page 3 pertains to the perceived notion of government encroaching into private enterprise. However, staff has explained, on the contrary, it is not an encroachment into private enterprise when it is the public's responsibility to design, construct, operate and maintain a public infrastructure facility in a manner to ensure the health, safety and welfare of the community at large. It should be remembered that the subject pertains to the City's facilities and not a private enterprise system. The Task Force also expressed concern about potential loss of creativity for the development of land in the City of Eagan. This was responded with the assurance that the developer would still be working directly with his private engineer to design any unique layout and grading plan for his particular development proposal and that the City would only perform the detailed design for the public infrastructure facilities to be installed within or providing service to that particular subdivision. Concerns of accountability were responded with the assurance that the City would be responsive to their concerns as we have in the past and are currently doing by reviewing this proposed policy prior to adoption. 1 detailed Project Options Flow Chart was prepared showing the complexity and innerrelationship of the various different processes associated with the development of land and the installation of facilities within the community. This helped to identify the different responsibilities of performance and the related time frames for various tasks (see Exhibit "C "). The other concern pertained to potential duplication of engineering costs. With the City's proposal that engineering fees be paid on an hourly basis, the City's engineer will make use of the information provided by the developer and will be paid for only additional work that has to be performed to complete the technical design process. The other major concern was the City's ability to perform within the developer's desired time table based on the work volume resulting from this policy. The City Council could provide the assurance that if additional manpower is necessary, additional consulting engineering firms could be added to the present consultant pool. 1 random survey of other developing suburban communities show that this proposed policy is not unique and that a public versus private policy is generally left to the discretion of the individual community as to what works best for them. Exhibit "D" shows the reaults of this survey of other communities. POLICY 1s a result of this research, analysis and discussion with the development community, the policy, procedures and guidelines pertaining to the design of public infrastructure facilities is attached to this report. Please note that this policy requires that only the design, construction staking and inspection services be provided by City authorized personnel. The developer still retains the option to select and hire his own contractor to perform the actual construction in accordance with the plans and specifications designed by the City. 1 final review of this policy will be performed by the Developers Task Force on the afternoon of February 7 with additional discussion and comments being provided at the Council meeting that evening. /9.., Page 4 If any additional information, research or analysis would be beneficial in helping to address this issue, please let me know and I will be happy to respond accordingly. Your formal consideration of this proposed policy will be greatly appreciated by the City staff as well as the existing and future residents of our community in helping to promote quality development. irector of Public Works TAC /jj Attachments cc: Dale C. Runkle, Director of Community Development Gene VanOverbeke, Director of Finance Mike Foertsch, Assistant City Engineer a 0 EXHIBIT "A" CONSULTING ENGINEERS IN EAGAN 101 1. Pioneer Hammel, Green & Abrahamson (EGA) Suburban 20. Thene & Assoc. J.R. Hill Associated Surveyors & Engineers Probe Temple 5. Ulteig Brown & Assoc. McCombs, Frank & Roos Sunde Engineering CCST 25. Midwest Engineering Hedlund Sathre- Bergquist Bennet, Ringrose, Wolsfeld (BRW) Hanging, Inc. 10. Orr, Schelen, Mayeron (OSM) Brandt Short, Elliott, Hendrickson (SEH) Winden & Assoc. Bonestroo, Rosene, 30. Kruger lnderlik (BRAA) Meadowwood, Inc. Sohoell & Madsen Merilla Henningson, Durham, Richardson (HDR) 15. Duane C. Olson C. Dahlgren & Assoc. Tri -Land Houston & Assoc. Opus 35. Hansen, Thorpe, Pellinen, Olson (HTPO) Progress Westwood Aokerberg a i 1. Hew Horizon Homes, Inc. Barstad Companies Mark Remick Opus Corp /Alaeor Investors 5. Robert Sehlangen Buttner Construction, Inc. Donald Prettyman Robert Keller Delta Development 10. Mr. Les Duoos D. R. Griswold & Assoc. Haven Enterprises • Meritor Development Real Estate Assistance 15. Rosewood Construction, Inc. Dan Gustafson & Ken Applebaum James Development Co. Horne Development Haven Enterprises 20. Del Schwanz Eagan Center Assoc. Tri -Land Progress Engineering, Inc. Dallas Development Co. 25. United Mortgage Corp. Brutger Companies, Inc. Eagan Woodhaven Partnership Robert Engstrom Assoc. Cray Reasearch 30. Middlemist Properties Ronald Cornwell EAGAN 197 -1988 DEVELOPERS 35. 45. 50. 55. 60. EXHIBIT "B" Torkton Ltd. M.G. Istleford Co., Inc. Richard Land Associates Asp Construction Co. Inc. Arson Construction Co. Ryan Construction Co. Gabbert Development, Inc. Gonyea Land Company Cliff Plaza Partnership Richardson Properties, Inc. Burnsville Lumber Hoick, et al Thomas Slater Rahn Ridge Associates Benson -Orth, Assoc., Inc. J. Byron Watschke Eagle Enterprises Frontier Companies Austin Companies Federal Land Co. L.A. Laukka Development Tollefson Builders Bill Henning & Co. Lexington Center Limited Partnership Ed Dunn Argus Development, Inc. Stuart Corporation Graham Development Co. Sienna Corporation Good Value Homes, Inc. 8 LU •., 1. lit t 4 1•11.111. ems* 411•••■ •1 ■Or maw.. a■so ••••■•••7■11....111. 1■11. :r if G. 4. • 1 1 k • • 1 1 11 1 1'• I I 1 1 1 1 (23 1 1 4 4' I 4 •1 I I I 1 1 I 4. 4 111 1 1 1. 1 1. oft '4? PUBLIC UTILITIES DESIGN POLICY CITY CITY CONSULTANTS PUBLIC ONLY BOTH Woodbury (1) BRLA 2 Apple Valley (1) BRAA Z Coon Rapids (2) BRW SEH Z Maple Grove (3) SRF, BRW, BRAG Z Blaine (4) BRW, OSM, SEH, TKDA X Eagan (3) BRAA, SEH, OSM X Plymouth (4) BRAA, BRW, SRF, MERILLA, MCCOMBS X Chanhassen (3) BRW, OSM, ENGLEHART Z Eden Prairie (3) HTPO, RCM, BRW X Brooklyn Park n/a Z Champlin (3) SEH, MAYER STEWART, DONAHUE Y Burnsville (3) OSM, SRF, SEH X EXHIBIT "D" POLICY For the Installation of PUBLIC INFRASTRUCTURE FACILITIES SUBJECT: To define the policy, prooedures, guidelines and responsibilities for the design and installation of public infrastructure facilities necessary for the use or development of land within the City of Eagan. POLICY: 111 public infrastructure facilities: • Necessary for the health, safety and welfare of the general public; • Necessary for the development of property to current Code requirements; ▪ Providing public access and utility requirements to an approved preliminary plat * To be owned, maintained and operated by the City of Eagan • shall be designed, field staked and monitored by the City or its designated agents in aceordanoe with the current City Engineering Standards, Guidelines and Procedures. The applicant shall reimburse the City for all costs incurred and provide the appropriate financial securities as required by the City. PURPOSE: The purpose of this policy is to provide the City with the necessary controls over the design and installation of all public infrastructure improvements defined in this policy to ensure compliance with the City's Comprehensive Plans, Codes and Engineering Standards, Guidelines and Procedures. The City will assume the long -term maintenance, operation and ownership of the type of improvements referenced herein. Because of the inherent obligation and responsibilities associated with this ownership, it is neoessary to ensure these facilities are designed and installed in a manner that minimizes the City's future financial and operational risks. This can best be done by having the City perform or provide the related design, construction staking and representative construction aerviees. RESPONSIBILITY: The City Administrator shall be responsible for the implementation of this policy through - various designated or affected departments and the related Departmental Directors. AUTHORITY: This Policy is adopted, authorized and implemented by action taken of the Council of the City of Eagan, Dakota County, MN, and as may be subsequently amended by the dates referenoed herein. COMPLIANCE: Compliance with this Policy shall be enforced by the Codes and Ordinances of the City of Eagan and the Statutes of the State of Minnesota. COUNCIL APPROVED: AMENDED: as PROCEDURES AND GUIDELINES For the Installation of PUBLIC INFRASTRUCTURE FACILITIES EAGAN MN I. DEFINITIONS: 1) Public Infrastructure Facilities 1. Sanitary Sewer Collection and Pumping System facilities including all appurtenances. 2. Water Supply, Storage, Treatment and Distribution System facilities including all appurtenances. 3. Sewer and water services between the collection /distribution system and the property /easement line. 4. Storm Sewer Collection Systems and all appurtenances. 5. Storm Water Flood Control and Water Quality Management ponds or structures and all related appurtenances. 6. Streets (including subgrade, gravel base, bituminous or concrete surfacing, concrete curb and gutter, boulevards and medians /islands) within public right -of -way. 7. Sidewalks /Trailways located within public right -of -way or recorded easements providing pedestrian access for the general public's use. 8. Landscaping within public right -of -way or on public property. 9. Signs, signals and lighting located within public right -of -way and /or necessary for the safe and efficient operations of pedestrian and vehicular movements. 10. Retaining walls located within or supporting public right -of- way or other public infrastructure improvements. B) Terms 1. Pre - Development Agreement - An agreement to be entered into by the City and applicant defining responsibilities associated with the Technical Design Preliminary Plat Process. 2. Development Agreement - An agreement to be entered into by the City and applicant defining responsibilities associated with the Final Plat Process. 3. Escrow - an acceptable financial security deposited with the City to cover anticipated costs and other financial obligations of the City of Eagan in performing or providing goods and services necessary for the processing and /or performance of an application associated with the improvement or development of land within the City. 4. Performance /Payment Bond - A security agreement provided to and naming the City to guarantee performance of contractual services in accordance with the terms and conditions of a related agreement and the payment of all third parties who provided goods and /or services for the related improvement. 5. Final Contract Report - An accounting of all costs incurred in the construction and administration of a Publicly Financed Improvement Project. 6. General (Conoept) Preliminary Plat - The first of three (3) steps necessary for the subdivision of land (Section 13.10, Subdivision 3). 7. Technical Design Preliminary Plat - The second of three (3) steps necessary for the subdivision of land (Section 13.10, Subdivision 4). 8. Final Plat - The last of three (3) steps neoessary for the subdivision of land (Section 13.30, Subdivision 3). 9. Grading/Excavation Permit - Prooesa providing for the excavation, filling, grading or other Changes to the natural topography as defined in Section 4.30 of the City Code. II. DEVELOPMENT & SUBDITISION PROCESS 1. Conformanoe To City Codes This development process shall be in accordance with the most recent amendments to Chapter 13 of the City Code (Subdivision Regulations - Platting) and Sections 13.10 (Application Procedures and Approval Process) and Section 13.30 (Data and Design Standards). B. When an application is processed for the subdivision or development of land that requires the installation or extension of City infrastructure facilities to service existing or newly created properties, the applicant shall enter into the appropriate development agreements before the City will initiate work or commit resources for the necessary technical design services. C. The applicant shall provide the information delineated in the current code and adopted guidelines, City resolutions and such other information as the City reseaonably requests consistent with and in the required time frames for each formal step of the development process (general design preliminary plat, technical design preliminary plat and the final plat). a � 2 III. PROFESSIONIL SERVICES 1. Private (Developer's) Engineering Personnel 1. Responsibilities a. The developer, through his selected engineer, shall be responsible for preparing all boundary and legal surveys necessary for the preparation of all drawings, sketches, graphics and other required submittals pertaining to the oonfiguration and layout of the proposed subdivision of property for the preliminary and final plat process. In addition, they shall provide all appropriate sketches, drawings, calculations and other related information associated with the preliminary grading, drainage and erosion control plan. In addition, they shall be responsible for the revision of the preliminary plans as necessitated by the City's design requirements for the public infrastructure facilities to be installed within or servicing the affected property. The developer or his engineer shall also provide certification that the land development activities associated with the subdivision process have been satisfactorily complied with the City approved plans and documents of record. B. City Engineering Servioes 1. Responsibilities a. The City, through its own City staff or contractual services with a professional consulting engineering firm, shall be responsible for performing the necessary field surveys, calculations and drawings neoessary for the preliminary and final detailed design plans and specifications for the installation of public infrastructure facilities associated with a proposed development. They will also prepare the appropriate feasibility report necessary for the public improvement /special assessment hearing process in accordance with Minnesota Statutes Chapter 429. 111 construction installation control staking shall be performed by the City's engineer along with the preparation of "as- built" record plans and the appropriate certification of oomplianoe to City approved plans and specifications. The City's engineer will also be responsible for providing project representatives to inspeot, observe and /or monitor the progress of the installation of these public infrastructure infaeilities. a � 3 2. Selection Process a. The City vill,.retain, the appropriate number of outside consulting engineering firms neoessary to provide professional engineering services required for reason of teohnioal expertise or overload manpower services as required by current inhouse engineering personnel. Any professional consulting engineering firm retained for overload personnel services shall be for a minimum of two years with a formal review and evaluation every four years. b. To remove any potential or actual conflict of interest, the City retained consulting engineering firm representing any client submitting a project or activity through the City shall not represent or review the project or aotivity on behalf of the City. In addition, the firm shall not be allowed to accept any client or project which, by nature, places it in ethical conflict during its representation of the City of Eagan, without prior written consent of the City. The City requires affirmative action and, therefore, the City's selected consulting engineering firms shall not discriminate under their contract with the City against any person in a000rdanoe with federal, state and local regulations. c. The selection and assignment of a City consulting engineering firm to a particular project shall be at the sole discretion of the City. However, the City shall take into consideration technical expertise required, ourrent workloads, and /or requests submitted by the developer at the time of application for the technical design preliminary plat. d. The fees paid to the consulting engineering firms retained by the City shall be in accordance with annually approved fee schedules as submitted by that particular engineering firm. The method of incurring oosts for any particular project shall be in accordance with the method described in the predevelopment agreement associated with the technical design preliminary plat application process incorporating one of the following: time and material; lump sum; percentage of estimated construction costa; time and Material with percentage cap; or time and material with lump sum cap. IQ. FINANCIAL OBLIGATIONS 1. Applioation/Prooessing Fees The applioant shall pay to the City of Eagan the appropriate fees associated with each of the three steps of the subdivision prooess to cover the administrative, clerical and similar oosts assooiated with processing that particular application. .29 B. Escrows 1. General (Concept) Design Preliminary Plat A cash escrow, calculated in accordance with the most current formula, shall be provided to the City to be placed in a non- interest bearing account as necessary to cover all costs incurred by the City for technical and /or professional staff time spent in processing the application. Any unexpended funds will be refunded to the applicant upon receipt of written request. Any additional costs incurred by the City beyond the initial escrowed deposit shall be paid by the applicant upon receipt of written request by the City. 2. Teebnioal Design Preliminary Plat The applicant shall provide the City with a cash escrow or other acceptable financial security necessary to cover that portion of technical design services associated with preparation of detailed plans and specifications for the installation of public infrastructure facilities. This escrow shall be calculated in accordance with the current formula and shall be placed in a non- interest bearing account. The City will refund any balance remaining upon receipt of written request from the applicant. Any additional costs incurred by the City beyond that covered by the escrow deposit shall be paid to the City by the applicant upon receipt of written request from the City. If the improvement is to be installed under a public improvement contract, the escrow deposit may be refunded in full subject to the completion of the public hearing process and the recording of the final plat allowing the City to incorporate such costs in to the final assessment obligations of the benefited property. 3. Final Plat Prooeas The applicant shall submit a cash escrow or other acceptable financial security in a non - interest bearing account with the City of Eagan to cover the estimated costs as calculated by the City for providing the necessary services for construction staking, project representation, inspection and /or observation associated with the installation of these public infrastructure facilities. This escrow requirement will be required only with the installation of public infrastructure facilities to be performed privately by the developer through hia own resources. If the improvements are to be installed under a public contract, they will be incorporated in to the final costa to be apread.as a special assessment.against the benefited properties. C. Financial Securities 1. 1 financial security in a form acceptable to the City of Eagan may be submitted in lieu of all or part of any required cash escrow. The acceptability and appropriateness of a financial security shall be at the sole discretion of the City. 3 0 5 2. An acceptable financial security shall be sumitted as a condition of the final plat process as necessary to cover 80% of the estimated cost of the development obligations of the applicant. This financial security will be reduced upon substantial completion of all related improvements with final release subject to final completion and aooeptanoe by formal Council action. In the case of infrastructure facilities being installed under City contract, the developer shall submit a financial security in the amount of 60% of the estimated oosts with a reduction being made in increments of no leas than 20% of the total security subject to payment of a like amount of the final assessment obligations. Final release shall be made when 60% of the financial obligations as assessed have been fully paid or the development is 80 %.developed, whichever occurs first. V. CONSTRUCTION/INSTILLATION OF PUBLIC INFRASTRUCTURE FACILITIES A. Grading/Land Development 1. All clearing, grubbing, excavation, filling, soil correction /stabalization and /or erosion control measures required of the proposed subdivision shall be the responsibility of and performed under the direction of the developer or his designated representative. If any such work is requested to be incorporated into a public improvement oontraot, it shall be subsequent to a written request by the developer incorporating the appropriate financial securities, property rights and waiver of liabilities. If it is performed prior to the completion of the final plat process, it must be under the requirements of a Grading/Excavation Permit issued by the City. B. Public Improvement Contraot At the time of the technical design preliminary plat application, the applicant shall declare his intentions to install any public infrastructure facilities privately or petition the City to have then installed under the City's public improvement /special assessment process. 1. Public Hearing /Assessment Process a. Preliminary Engineering/Feasibility Report Upon receipt of the petition and appropriate financial security /escrow, the City will prepare a preliminary engineering /feasibility report generally describing the proposed improvements and specifically identifying the method of financing through the preparation of a preliminary assessment roll identifying all properties who may incur a financial obligation as a result of this improvement. 3/ 6 b. Estimated Costs/Pending Assessments The pending assessment roll will identify estimated costs associated with the installation of the public improvements incorporating both construction and related overhead costs. The construction costs will be based on estimated quantities and unit prices to be revised based on final measured quantities extended by contract bid prices. The overhead costs shall incorporate a combination of both fixed (F) and estimated /actual (E /1) costa and will be estimated at 30% for the purposes of the preparation of the preliminary assessment roll. These overhead oalculations are generally described as follows: • Engineering (E /&) 15.O% • Administrative (F) 4.0% • Legal (E /l) 1.5% • Construction Interest (E /1) 8.O% • Bonding (F) 0.5% • Contingencies (F) 1.0% o. Public Hearing Process Mailed and published notification of the required public hearing will be performed by the City of Eagan. The public hearing is necessary to fulfill the requirements of Minnesota Statutes pertaining to special assessment procedures. If the proposed improvement results in special assessments only to property owned by the applicant, the owner may waive their rights to the public hearing allowing the simultaneous preparation of detailed plans and specifications to be approved at the time of the public hearing. d. Contract Award Contract will be awarded by formal Council action subsequent to the formal bid solicitation process and oompletion of the final plat application process. C. Private Improvement Contract 1 developer may eleot to perform the installation of public infrastructure facilities through his own reaouroea. However, the construction staking and project representative personnel and related services must be provided by the City. 1. Contract Documents The developer may prepare his own oontraet documents but must make reference to and incorporate the detailed plans and specifications as prepared by the City of Eagan. While the method of payment is left to the discretion of the developer, the contract shall specifically identify unit prices for pay items identified in the specifications prepared by the City. 7 !. Payment and Perforaanoe Bonds The developer shall require his private contractor to provide payment and performance bonds covering no leas than 100% of the cost of the proposed improvements as calculated by the City of Eagan or identified in the City prepared plans and specifications. However, it will be the developer's responsibility, through the financial security submitted with the development agreement, to provide the appropriate lien waivers as a condition of final aooeptanoe of the facilities by the City. 3. Insurance Certificate The developer shall require his contractor to submit an insurance oertifioate to the City of Eagan specifically naming the City as an additional insured for the amounts required by the City for the particular project. D. Construction Staking The City or its designated agents shall perform all related construction surveying and /or installation control staking necessary to ensure that the installation of the publio infrastructure facilities will be in accordance with the approved plans and specifications. E. Project Representative /Inspection /Observation Services The City will provide the appropriate personnel necessary to verify that the installation of the public infrastructure facilities have been in accordance with the intent and design of the City prepared plans and specifications. This service shall not provide any specific representation to the developer for any improvements not related to the installation of public infrastructure facilities. The developer, at his option, may provide supplemental private project representatives for his own personal interest but this additional service will not reduce or replace the services to be provided by the City. VI. DETAILED PLANS & SPECIFICATION PREPARATION 1. Preparation The City or its designated consulting engineering firm shall use all information submitted by the developer or.his private engineer in addition to performing whatever research and field surveys as may be necessary for the preparation of the detailed plans and specifications necessary for the ooapetitive bidding and /or installation of these public facilities. B. Review The developer shall be given the opportunity to review the plans and specifications and make any suggestions he may have for modifications. However, the final decision regarding recommended modifications will rest with the City. The City will provide appropriate reviews of the plans prepared by consulting engineering firms to ensure that the design is the most coat effective taking into account the long -term best interests of the City and the needs of adjacent property owners. C. Tine Frame The City will make every attempt to comply with the time frames designated by the developer at the time of the technical design preliminary plat application subject to the developer's timely production and delivery of complete and accurate documents as required by the process. If overtime is anticipated to accommodate the developer's time frame, the developer must agree to pay any additional fees or expenses resulting from such overtime requirements. VII. CONTRACT MANAGEMENT 1. Preconstruction Conference 1 preconstruction conference shall be coordinated and scheduled by the official project representative assigned by the City of Eagan. For private construction options, the developer will be responsible for ensuring that his engineer, project manager and all prime and subcontractors will be in attendance at the preconstruction conference. Absence of any of those individuals may be cause to reschedule the preconstruction conference to a later date when all individuals' attendance can be assured. The preconstruction conference will not be scheduled until the final plat application process has been completed. B. Permit To Proceed Once the final plat application process has been completed including the preconstruction conference and receipt of all required regulatory agency permits, a formal "Permit To Proceed" will be issued by the City. No construction related activity shall begin until this permit has been formally issued. 3� 9 C. Change Orders Many times, field conditions require changes of the approved plans and specifications during oonstruction activities. Any changes identified by the City's project representative will be brought to the attention of the developer for his information, review and comment. The City's project representative will provide the necessary justification for the changes. Any objections to the proposed changes shall be appealed directly to the City Engineer within one working day of notifioation by the project representative. The City Engineer shall make the final determination of the necessity of the proposed change and will authorize the revision to the contract documents and /or plans and specifications as may be appropriate. Under the option where the developer is performing the installation of their facilities under a private contract, the developer will be expected to authorize the appropriate changes to the contract. Failure to do so will result in the City subcontracting the required work to be performed with all costs incurred to become the responsibility of the developer backed up by the financial security submitted with the development agreement. D. Progress Payments /Aooeptanoe/Varranties 1. Periodic and final progress payments shall be reviewed and authorized by the City's project representative before payment is forwarded to the oontraotor. 2. No system shall be activated or connection allowed until the system in its entirety has been completed to a point of substantial completion as determined by the prejeot representative. Final inspections and acceptanoe will be performed once the contractor has verified completion of the project in aeoordanoe with the plans and specifications and verifying inspections for acceptance have been performed by City authorized personnel. 3. A minimum 2 -year warranty will be required for all public infrastructure facilities installed in accordance with the specifications and contract documents. The developer shall assume all related payment, warranty and performance obligations in accordance with the terms of the development agreement for those improvements installed privately by the developer prior to and as a condition of final acceptance by the City of Eagan for perpetual ownership, maintenanoe and operation. vOEK WITHIN PUBLIC HILT OF MAY A. Any improvement excavation oonstruotion or other land altering activity located within public right -of -way or dedioated easements shall be designed and inspected by the affected jurisdictional authority in acoordanee with current regulatory engineering standards unless specifically waived in advance by the affected authority. 3 5 10 MEMO TO: RICH HEFTI, ASSISTANT CITY ENGINEER MARK HANSON, CONSULTING DESIGN ENGINEER FROM: TOM COLBERT, DIRECTOR OF PUBLIC WORKS DATE: FEBRUARY 20, 1986 SUBJECT: PUBLIC IMPROVEMENT OVERHEAD CALCULATION/BREAKDOWN As you are aware, for those public improvements that are installed under City Contract, in addition to the actual construction costs incurred through the competative bidding process, the City has estimated the related overhead at 30 %. This is based on the research of past projects and evaluating the actual costs that have been incurred. This information is further identified and broken down as follows: ITEM PERCENTAGE 1. Engineering a. Feasibility Report, preliminary surveying, detailed plans and specifications preparation, contract management b. Construction staking and inspection c. Final contract report, as -built plan preparation final payment certification, etc. 2. Legal Fees a. Legal notices, contract documents, legal descriptions /easement acquisi- tion, claims and appeals defense 3. City Administration a. Engineering plan review, contract management, record keeping, claim resolution, etc. b. Special assessment roll preparation, record keeping, certification, final inspec- tions, etc. 4. Bonding Fees a. Sale and administration of bonds sold to finance project 5. Construction Interest a. Interest paid on construction financing from date of contract award to final assessment hearing 6. Contingencies a. Unresolved claims, special tests, appraisals, etc. TOTAL (Avg . ) ' 7 -9% 5 -6 1 1.25 2.0 2.0 0.5 7 -9 1.0 30.0% • . RECEIVED JUL 7 1988 TO: Tom Colbert FROM: Jerry Bourdon DATE: June 30, 1988 Re: Private vs. Public construction of public works improvements NTRODUCTION The City of Eagan owns and operates a franchise for its storm sever, sanitary sewer, water supply and transportation systems. The City owns the franchise just as N W Bell and Dakota Electric Power Association ovn and maintain their facilities. Neither of these organizations would give up their control of the planning, design and construction of their facilities. The City of Eagan should not compromise its franchise by giving up direct control of the plan- ning, design and construction of its facilities. Current practice is contrary to this logic. Private design and construction of publicly owned facilities is currently the most prevalent project delivery system in Eagan. This is a relatively recent phenomenon. Only a few years ago the great majority of public facilities were designed and constructed under the direct control of the City. We believe that private design and con- struction of public facilities is not in the best long term interests of Eagan. This memo summarizes our recent experiences in Eagan and other commun- ities which form the basis for our opinion. BACKGROUND There are two basic project delivery systems used in the construction of mu- nicipal public works projects. One is the public contracting system wherein the City directly undertakes the planning, design and construction of the fa- cilities that it will perpetually own and maintain. The other is the design and construction of publicly owned facilities by private developers. At the center of the debate over the advantages of the two project delivery systems - private vs. public -is the issue of control. The organization in control can use that power to its advantage. The issue then, from the City's standpoint, is whether public interests are best served when control is main- tained by the City or when that control delegated to private developers. Our firm believes that the public project delivery system is the best system for municipalities and we have designed our organization to meet this need. Considering the City's long term ownership and maintenance responsibility for its infrastructure, it would seem that the advantages received from full control over the design and construction would be self evident. However, PRIVATE Page 1. 37 judging from the success private developers have had in persuading cities to delegate control over their own facilities, it is appropriate that we present our reasons for favoring the public project delivery system. ADVANTAGES OF THE PUBLIC CONTRACTING SYSTEM The City of Eagan's advantages in designing and constructing public works stem from maintaining complete control of the project. The City receives these ad- vantages through the use of directly controlled Design and Construction Teams. PRIVATE TEE DESIGN TEAM A design team put together to serve the City develops talents and specialties that serve its unique interests. The City's direct con- trol of its design teams will provide the following advantages. The design team is the first critical element in the quality control of public works improvements. Under the public contracting system, the City has direct control of the design teams it will employ through its consultant selection process. Its ability to reward good teams with more work is a significant asset to the City. This reward system provides incentives for the design teams to develop specific areas of expertise unique to the City's interest such as comprehen- sive storm water runoff management, water distribution, sanitary sewer collection, and traffic. The private developer's design teams do not have such incentives and we have observed numerous problems on privately constructed projects stemming in large part from this lack of specialty input into detail planning and design. When the design team owes its loyalty to the City the team is sensi- tive to the long term life cycle costs of the City's ownership and maintenance liability's. Simply put, the public contracting process provides the best means of assuring the maintenance department's in- put into the design and operation of the facilities it must main- tain. The public contracting system protects the design team from the pressure that can be exerted to design for the short term ex- pediency of meeting unrealistic project deadlines and budgets. A City design team also becomes intimately familiar with the City's comprehensive plans and its existing infrastructure and is efficient and effective in fitting developments into the City's overall master plans. Private design teams will inherently design only for the spe- cific site and not take into consideration the City's overall plan- ning. Page 2. 38 PRIVATE THE CONSTRUCTION TEAM The contractor and the field engineering (surveying, contract admin- istration and inspection) are the final critical stages in the qual- ity control of public works improvements. Under the public contract- ing system all of these facets are directly controlled by the City. Under the private contracting system the surveying and contract ad- ministration are directly controlled by the developer. Although the inspection function is still retained by the City, the inspectors ability to assert control over the project is severely limited by their lack of control over the Contractor through contract administration and surveying. Under the public improvement system the contractor is selected by the bidding system and the successful low bidder is under direct contract with the City. The City has the ability to directly control the con- tractor through its certification of the completed work. In short, the City directly controls the purse strings which is a powerful tool compared to the more indirect methods available under the private contracting system. Construction surveying adds a significant advantage to the quality control efforts on utility and street improvement projects. Con- struction survey teams under the direct control of the City become trained to the specific details of City standards and provide an additional level of checks in assuring that the final project in- corporates standard criteria established by the City Public Works Department. Examples include: outside /inside drops, curb box loca- tions, hydrant locations, intersection drainage to mention just a few of the currently observed problems on private projects. DISADVANTAGES OF THE PRIVATE PROJECT DELIVERY SYSTEM There are several disadvantages to the City's use of private contracting of public improvements. The following comments summarize the primary disad- vantages. 1. Since the City owns and maintains the franchise the loss of con- trol of the public works improvements weakens the City's ability to control the planning, design and construction and increases its ownership risks. 2. When the developers control the improvement projects the City is always in a defensive posture. The developer presents his design and the City must counter any short comings. Inherently these situations are resolved by compromise wherein the City yields on its standards. It is better for the City to prepare its own de- sign and therefore reduce the compromise situation. Page 3. 3 Specific examples of problems that the City has been experiencing can be docu- mented to support these positions. The storm drainage problems in some of the developments as well as numerous examples of compromised construction stan- dards and delayed completion of work can be furnished. REASONS DEVELOPERS USE THE PRIVATE PROJECT SYSTEM The following summarizes the arguments from developers who favor the private contracting of public facilities. PRIVATE 3. Since the City owns the facilities it is subject to ownership risks from law suits. Of all of the parties involved in public works projects the City is especially vulnerable to this due to the deep pocket syndrome. The developer and his engineer are not in the first line of attack by legal claims. The City should strive to cover its risk by asserting control. 4. Conformance to design standards is not easily maintained when the design and construction is controlled by a private developer. The City can attempt to enforce design standards by plan review but this is a poor substitute for a loyal City design team. S. The City, through its standard contracting practices, lends sta- bility to the construction industry and provides long term inci- dental benefits to owners of public works. The City can guaran- tee payment to contractors and can guarantee performance through the performance bond. Many of the private contracts do not in- corporate these practices. Although the City can cover these bases to some extent in the development agreements the direct guarantees of a public contract cannot be provided. 1. It's less expensive. Nobody has proven it. We doubt it. If equal quality is demanded of each project delivery system ve doubt the costs are any different. The only significant argument that may have merit is that the public system in- hibits creative financing. Perhaps we should discuss how the public con- tracting system might accommodate this concern. 2. It's faster. With proper planning and scheduling on the developers part this does not seem to be an overwhelming obstacle. We proved this last year in the Bridle Ridge and Hills of Stone Bridge projects. Even when the develop- er's engineers did not give us needed design information in a timely manner ire successfully met critical time schedules and it was often the private contracts which failed to be executed on time. Page 4. Obviously this is true. It is the central theme of the argument. How- ever, the City is obligated to the public good and we believe the problems being ezperienced on the privately contracted projects prove that the pub- lic interest is not well served by the private contracting system. The public contracting systems do have a tendency to become insensitive to the needs of the developers. Ve must examine and implement ways to get the devel- oper's input into the system and to make the public contracting system more palatable to developers. Ve are sure there are rays this can be done. SUMMARY 3. Ve have better control. We believe that the public contracting system is best for the City of Eagan because it maintains direct and complete control of the planning, design and construction of publicly owned facilities. Be would welcome the opportunity to work with you in developing and presenting the case for a return to public contracting. Our staff will be available to put significant effort into this issue under your direction. PRIVATE Page S. `t/ Utility installation won't return to public domain A proposal to return responsibility of building public infrastructure back to the city's engineering department was denied by a 3-2 vote of the council at its Feb. 7 meeting. Director of Public Works Tom Colbert suggested to the council a few months ago that the city limit who may build such services as water, sewer and streets in developments. In the building boom since .1983 in Eagan, the city allowed developers to hire their own engineers to design and oversee construction of these utilities, with review by city engineers or the city's consulting engineers. But reviewing plans and construction is not the same as actually doing it, Colbert said, and suggested the city would be able to do the work and take responsibility for its work. A number of problems have arisen in the city from problems associated with private engineering firms' work, Colbert said. With the rejection of all-public utility installation, "developers can hire any firm they want to regardless of their knowledge of the city," Colbert said Thursday, Feb. 9. The city will have to try and catch rather than prevent problems, be added. Developers do have the op- tion of having the city build the utilities, however. Developers were opposed to the ail public rule, saying it limited their creativity, added to their costs and could delay them. Colbert said he thought he had addressed their concerns through 18 hours of meetings with the Developers Task Force. Council Members Pam McCrea, Tom Egan and David Gustafson voted against the recommendation. These reports were complied by Br.oda Gud.rtae fro. the Feb. 7, i9 meeting of the Egan City Council. MEMO TO: CITY ADMINISTRATOR HEDGES FROM: FINANCE DIRECTOR /CITY CLERK VANOVERBEKE DATE: MARCH 3, 1994 SUBJECT: 1994 WATER AND SANITARY SEWER UTILITY RATES At your request I am providing some additional information regarding the proposed 1994 Water and Sewer Utility Rates. The rate setting philosophy over the years has been based on the following general principles: 1. Rates should be reviewed annually and adjusted annually as appropriate. 2. Rates would be set at levels to cover the following general areas: a. Operational costs b. Reserves for renewal and replacement of the systems. c. Debt service payments in cases where bond financing was used. d. Some system expansion and enhancement. 3. Rates would cover only costs reasonably associated with utilities and would not be used to subsidize general governmental operations. They would not be set artificially low so as to require a subsidy either. 4. There is no profit motive. Even though these principles are fairly well - defined, the rate setting process is not an exact science and involves a number of estimates. Changes to any of those estimates could materially affect the established rates. Staffs efforts have been directed at making the best possible estimates and letting the rates result from the process. While being sensitive to rate changes which result, we have minimized working backwards starting from an acceptable or desirable rate to determine the estimates. This process will naturally result in proposed rates usually being above or below any current inflation number because of the multitude of variables. Given that general background, the 1994 proposed rates were developed as explained in the following paragraphs. Sanitary Sewer In determining the sanitary sewer user rates the costs are allocated into customer service costs and usage or flow costs. The respective costs are then divided by estimated number of bills and the estimated flow to determine the rate for the year. For the 1994 proposed rate the amounts allocated into customer service costs total $120,200. The estimated 43 1994 UTILITY RATES MARCH 3, 1994 PAGE 2 number of bills to be sent during 1994 is based on 15,384 users being billed four times. The customer service rate is determined to be: $120,200 = (15,384 x 4) or $1.95 /customer /quarter For the usage part of the total rate, the following usage or flow costs with an estimated flow of 2,016,000 thousand gallons were used. MWCC Billing City Costs - i.e. labor, contracted services, parts Capital Outlay Renewal and Replacement Water TOTAL Amount Cost Per /1000 $2,637,051 $ 1.31 587,777 128,425 110.210 $3,462,463 $263,800 + (15,844 x 4) $4.15 /customer /quarter L./It .29 .06 .06 $1.72 /gal. The basis for the estimated amounts include the 1994 MWCC estimated billing and the 1993 expenses of labor, contracted services, repair parts, inflated by the % change in the 1994 budget compared to the 1993 budget. The capital projects amounts were adjusted for the 1994 authorized acquisitions and the renewal and replacement amount remained constant. The sewage flow was based on the 1993 sewage billed, plus an estimate for the 1994 growth because of new customers connected to the system. The rate proposed for adoption was limited to an approximate 10% increase based on an average winter quarter water usage of 17,700 gallons of flow. The proposed rate of $1.61/ thousand gallons is $.11 per thousand gallons less than the $1.72 /thousand gallon rate needed to recover all costs. To determine the water user rates the costs are again allocated into customer service costs and usage or flow costs. The respective costs were then divided by the estimated number of bills and the estimated usage to determine the rates for the year. For the 1994 proposed rate the amounts allocated to customer service costs totals $263,800. The estimated number of bills to be sent during 1994 is based on 15,844 users being billed four tunes. The customer service rate is determined as: 1994 UTILITY RATES MARCH 3, 1994 PAGE 3 In addition, there is a $2.75 per customer per quarter surcharge that is being used to provide financing for the water treatment plants. For the 1994 proposed rate the amounts allocated to usage or . flow costs with an estimated usage of 2,130,000 thousand gallons were used. Amount Cost Per /1000 City costs for labor, contracted services, repairs $1,326,467 .622 Capital Outlay 163,496 .077 Renewal and replacement 226.966 $1,716,929 .805 In addition, there is a debt service surcharge on usage that is equal to $.249/1000 gallons of flow. The total charge for flow is 1.05 (.249 + .805). The basis for the estimated amounts include 1993 expenses of labor, contracted services, and repair parts inflated by % change in the 1994 budget compared to the 1993 budget. The 1994 capital outlay amounts were adjusted for 1994 authorized acquisitions. The renewal and replacement amounts remained constant. The usage estimate is based on the average usage of the last three years, which includes an exceptionally wet year, and an exceptionally dry year plus an estimate of usage based on the growth in the number of customers using water. Conclusion These calculations result in the recommendation that was presented to the City Council for the regular meeting held on February 28, 1994. A copy of the packet material is attached. Please let me know if you have questions or would like any additional information. v Fingpace Director /City Clerk EJV /jeh � FEE TYPE Sanitary Sewer Single Family, Townhouse and Similar Residential # • 6% Apartment, Commercial Sewer only tion /meter Water Works All users Storm Water Drainage Water Account Deposit Sewer Account Deposit Neighborhood Single Family /Twin Homes (R -1, R -2) Townhouses (R -3) Multiple Residential & C/I non - continuous C/I continuous Individual Lights 100 WHPS 150 WHPS 250 WHPS Institutional & Industrial 4, VX (no water connec- to measure flow) Community and Signal Lights R1 /R2 R3 R4 Non - Residential UTILITY RATES AND FEES 4 1,05 $5.00 /REF /Qtr. (R3 Zoning 20% Credit) $15.00 /Residential Account $15.00 /Residential Account Street Lights /Signal Lights # % DS 3.993 TEE MN 4.96' 4e /Qtr. for 10,000 Gal. *1.4J /1000 Gal. for All Usage Over 10,000 Gal. Based on Winter Quarter Meter Reading 11.D5 MN $1+r40/Qtr. for 10,000 Gal. G9,45 /1000 Gal. for all Usage over 10,000 Gal t 34,15 Flat Rate - 'et-AO/Qtr. 4 rota MN $±67.90 /Qtr for 10,000 Gal. & t /1000 Gal. for All Usage Over 10,000 Gal 1994 YEE $3.20 Per Qtr Per Lot $2.56 Per Qtr Per Unit $10.00 /Qtr. /Billing Acct. $4.30 /Qtr. /Ac. .148 /L.F. /Qtr. 22.25/Ac. /Qtr. $19.45 /Light /Qtr. 31.45 /Light /Qtr. 43.00 /Light /Qtr. $1.80 /Unit /Qtr. $1.40 /Unit /Qtr. $1.25 /Unit /Qtr. $5.30 /Unit /Qtr. Q rotoe1 t ctct4 Use Ra dy MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGER ASSISTANT TO THE CITY ADMINISTRATOR DUFFY DATE: MARCH 4, 1994 SUBJECT: MEDIATION SESSION /POLICE BARGAINING Representatives of the City and of the Police bargaining unit are scheduled for a mediation session on Thursday, March 24, 1994 at 9:30 a.m. at the Municipal Center. Attached please find a copy of the meeting notice we received from the State of Minnesota Bureau of Mediation Services. Compensation and overtime provisions appear to be the two main issues. Although there are several other issues still on the table, they could probably be worked out if we all can come to agreement on the compensation rates and overtime provisions. In order to negotiate in good faith, we will need to ascertain from the Mayor and Council the absolute maximum percentage increase you would approve for compensation for both 1994 and 1995. \\ City Administrator Assistant to the C ty Administrator Attachment February 22, 1994 IN THE MATTER OF: BMS BUREAU OF MEDIATION SERVICES State of Minnesota Law Enforcement Labor Services, Inc.; Bloomington, Minnesota -and - City of Eagan; Eagan, Minnesota HMS CASE NO: 94 -PN -1383 RE: Law Enforcement - Essential RECEIPT OF MEDIATION PETITION AND MEETING NOTICE A petition for mediation in the above -named matter has been received by the Bureau of Mediation Services. In accordance with the laws of Minnesota, you are hereby notified of the following mediation meet- ing to be held for purposes of resolving this matter. Both parties to this matter have a legal obligation to be present at this meeting and to make good faith efforts to resolve the dispute. Accordingly, each party must vest its representatives to mediation meetings with the authority to negotiate in good faith, the ability to identify unresolved issues, and to set forth the positions of that party with respect to each issue in dispute. cc: Greg Bastien Holly Duffy Linda Myhre DATE: Thursday, March 24, 1994 TIME: 9:30 am LOCATION: Eagan City Hall 3830 Pilot Knob Road Eagan, MN ‹Mec.A , -y S• /L MURRAY S! PERRY Mediation Unit Director (612) 649 -5421 FAX: (612) 643 -3013 1380 Energy Lane • Suite #2 • St. Paul, MN 55108 -5253 An Equal Opportunity Employer