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HomeMy WebLinkAbout1982-12-28_SPECIAL MEETINGSAGENDA SPECIAL MEETING EDINA CITY COUNCIL DECEMBER 28, 1982 5:00 P.M. ROLLCALL I. AWARD OF BIDS Tabulation and recommendations by City Manager. Action of Council by Motion. A. Civil Defense Siren Bids II. RECOMMENDATIONS AND REPORTS A. January 3, 1983, Meeting B. PERA Legislation C. Special Concerns of Mayor and Council III. RESOLUTIONS A. Salary Schedule for 1983 IV. FINANCE A. Security Pledges B. Statement of Estimated Expenditures and Recommended Transfers C. Claims Paid. Motion of , seconded by , for pay- ment of the following Claims as per Pre -List: General Fund, $43,569.58; Park Fund, $6,913.29; Art Fund, $671.44; Swimming Pool, $90.30; Golf Course, $1,460.14; Arena, $7,000.96; Gun Range, $417.95; Water Fund, $10,386.92; Sewer Fund, $1,302.68; Liquor Fund, $27,907.72; Construction $2,977.28; IBR #2, $43,447.53; Total, $146,145.79 x STATEMENT OF ESTIMATED EXPENDITURES AND RECOMMENDED TRANSFERS FOR YEAR ENDING DECEMBER 31, 1982 For Year 1982 Estimated Transfer Expenditures Appropriation Balance To From Mayor and Council $ 36,297 $ 32,800 $ 3,497* $ 3,600 Cost of liability insurance. Planning 114,160 111,568 2,592* 2,700 Printing report for Met. Council Administration 250,503 239,273 11,230* 11,400 Higher cost of payroll and dues and subscriptions. Finance 193,170 189,356 3,814* 3,909 Data processing $2500; Conferences and schools $1200; Other $200. Election 45,676 45,908 232 Assessing 176,832 171,450 5,382* ,/ 5,600 Part -time help $2500; Data processing $3100. Legal and Court Services 171,932 119,000 52,932 * / 53,400 Professional fees $10,000; Court charges $1700; Board and room prisoners $36,000; Prosecuting attorney $5700. Public Works: Administration 68,434 68,314 120* 200 Conferences and schools. Engineering 246,381 240,882 5,499* 5,600 Higher cost of payroll. Other 1,810,494 1,786,689 23,805* 24,000 Overtime snow plowing $8000; Retaining wall second garage $9000; Repairs to Ramp caused by storm $7000. Police Protection 1,953,302 1,960,905 7,603 $ 7,000 Less cost of payroll. Fire Protection 1,261,053 1,241,812 19,241* 19,500 Payroll overtime. Civilian-Defense 18,216 18,341 125 Animal Control 29,942 32,528 2,586 2,200 Less cost of payroll. Health 194,286 194,851 565 Inspection 142,476 142,592 116 Contingencies 43,764 509,000 6,236 5,500 See schedule attached - Note A. Special Assessments on City Property 77,257 70,000 7,257* 7,300 Higher cost of special assessments. Central Services - Capital Outlay 9,393 21,200 11,807 11,600 Purchase less automobiles. Capital Improvements 20,000 20,000 Commissions and Special Projects 56,163 55,383 780* 800 Tree program (Cost before cancellation). $6,919,731 $6,812,852 $106,879* $138,000 $ 26,300 Central Services: General City Hall Public Works Building Equipment Operation Allocated to other departments & funds STATEMENT OF ESTIMATED EXPENDITURES AND RECOMMENDED TRANSFERS CONTINUED For Year 1982 Estimated Transfer Expenditures Appropriation Balance To From $1,216,954 90,459 94,491 623,322 $1,254,060 70,260 88,620 597,300 $ 37,106 20,199* 5,871* 26,022* $ 20,500 6,000 26,200 $ 36,500 2,025,226 $2,010,240 $ 14,986* $ 52,700 $ 36,500 2.010,240 2,010,240 14,986 -0- 14,986 $ 52,700 36,500 $6,934,717 $6,812,852 $121,865* Recommend an increase in budgeted estimated revenue as follows: Miscellaneous income Court fines Building permits TOTAL $ 22,900 30,000 75,000 TOTAL $127,900 90,700 $ 62,800 KI) onn .- , v $127,900 Less Cost of insurance(Liability and Workmen's Compensation). Higher cost of payroll and supplies for improvements to police area. Higher cost of light and power and heat. Higher cost contracted repairs $8000; Accessories and parts $17,300; gasoline $10,900. GENERAL FUND: Surplus at January 1, 1982 Estimated revenue for year Less transfer from surplus (Budgeted Item) Less estimated expenditures: Operating accounts Central services - Net BALANCE AT DECEMBER 31, 1982 STATEMENT OF ESTIMATED EXPENDITURES AND RECOMMENDED TRANSFERS CONTINUED $ 603,583 $6,923,384 138,782 6,784,602 7,388,185 $6,919,731 14,986 6,934,717 $ 453,468 Note A - Disbursements charged to Contingencies for 1982 were as follows: Logis - Development cost - data processing York Focal Point Newsletter Unemployment compensation Professional services School - Personal Skills Plaques Training aids -Fire Meetings and schools - Various Payroll - utilities review Room dividers and furniture Printer Chairs - Various departments Miscellaneous - small items under $100 November and December items TOTAL $ 7,000 3,009 4,376 4,252 200 725 462 451 288 845 9,495 1,035 4,500 1,126 6,000 $ 43,764 v BALANCE RESERVE FOR COMMITMENTS AT DECEMBER 31, 1982: Capital Improvement (Street replacement) $230,531 Capital Improvements (General type) 97,800 Improvements - City Hall 2,400 Accounting system 13,500 Microfilm equipment 5,550 Police - Pension supplement 32,800 School assessing 3,000 Reserves: Fire equipment $188,750 Police - radio equipment 7,000 Civil Defense - Siren 7,000 Animal Control - vehicle 3,000 205,750 $591,331 J zc PROPOSED 1983 RATES ('82 in parenthesis) YEAR ROUND \ Level A Level B Step 1 (3.60) 3.80 (4.00) 4.20 Step 2 (3.95) 4.15 (4.50) 4.70 Step 3 (4.15) 4.35 (4.80) 5.05 Step 4 (4.40) 4.65 (4.95) 5.20 Step 5 (4.75) 5.00 (5.05) 5.30 Managerial (5.75) 5.95 SEASONAL Level 1 3.35 3.60 3.75 Level 2 3.50 3.80 4.00 Level 3 3.80 4.10 4.25 Level 4 4.10 4.35 4.50 Level 5 4.25 - 5.50 PERSONNEL COMPENSATION RATES 1 2 3 4 ( 5) Management III $37,232 $&0,456 $43,706 $46,488 (11) Management II 27,794 30,238 32,682 34,762 ( 7),Management I 23,400 24,480 27,482 29,276 -' ( 6) Technical Management 21,346 23,270 25,116 26,728 (12) Technical III 18,876. 20,514 22,204 23,582 ( 4) Technical II 16,744 .18,200 19,682 20,930 (11) Technical I 15,028 16,328 17,628 18,772 ( 7) General III 14,014 15,236 16,484 17,524 ( 7) General II 13,000 14,144 15,288 16,276 ( 8) General I 11,570 12,584 13,598 14,482 Public Safety: ( 2) PS Management III 31,538 34,538 37,076 39,416 ( 8) PS Management II 29,510 32,110 34,684 36,894 ( 7) PS Management I 26,832 29,172 31,538 33,540 ( 2) PS General II 16,406 17,862 19,266 20,514 ( 1) PS General I 13,000 14,144 15,288 16,276 MEMORANDUM TO: MAYOR AND COUNCIL FROM: KENNETH ROSLAND, CITY MANAGER SUBJECT: PERA 2% DATE: DECEMBER 29, 1982 As you are aware, the resolve the State's f PERA by 2% for 1983. in turn will send the reduced by 2% but the original share. State Legislature as a part of their short term efforts to inancial problems, increased the employee contribution to This money will be deducted and forwarded to PERA which money to the State. The original bill had the City's share bill that finally passed has the City contributing its This action raises two issues of which we would like to make you aware: - The first, it is felt, is that the 2% represents an infringement by the State on local government and the manner in which local government officials compensate their employees. - The second is that the State apparently looks to the pension system and its funds as a means to resolve its spending problems. In the future they may alter state statutory law which could open up state access to pension funds to solve its perennial state government fiscal problems. This would disrupt pension funds which are currently in fairly good acturial shape and at the same time fail to realistically come to grips with the root spending problems in this state. We are passing this on to make you aware should your legislators want to converse with you, together with finding out your views on these matters. Cfty anager KER:md 11 j I STATE OF 1U.NNESOTA ) COUNTY Or HENN't"PIN ) SS CITY Or EDINIA ) If CEPTIFICATE OF POSTING NOTICE I, the undersiFncd duly appointed and actinr Police Patrolnan for the City of Edina, County of I:ennepin. State of 2iinnesot:a. do Hereby certify that I have, this date, posted copies of the attached and fo�egoin�* Notice of Special Informal Council Meeting .on three official City Bull,tin Boards, as follows: 1. City Hall. 4."101W. 50th Street 2.. 50th and France Business Area ( -,922 14. 50th St.) ?. Amundson Avenue Shopping Center. Dated .� Signed ! 4�e Police Patrolman Signed and sworn to before me, a Notary Public in and for Hennepin Coun*_y,'Minnesota, this, the �L day of /'JL�� 19x_ R -74 CITY OF EDINA 4801 W. 50TH STREET EDINA, MINNESOTA 55424 NOTICE OF SPECIAL MEETING THE EDINA CITY COUNCIL will meet in a special informal session in the Edina City Hall Council Chambers, 4801 W. 50th Street at 5:00 p.m. on Monday, March 29, 1982. All interested residents are urged to attend. BY ORDER OF THE EDINA CITY COUNCIL. Florence B. Hallberg City Clerk TO: FROM: SUBJECT: DATE: MEMORANDUM MAYOR AND COUNCIL KENNETH ROSLAND, CITY MANAGER STRATEGY PLANNING /MEETING NOVEMBER 10, 1982 i During the approval session for the 1983 Budget, a meeting was established for the Council to begin discussion of critical issues in preparation for the 1984-Budget and beyond. In order to approach this matter in a logical way, I would propose that the Council start by looking at "the big picture" and the assumptions and goals that we the staff feel are our overall direction from Council and reach decisions on those before proceeding to discuss specific issues relating to levels of services, means of producing those services, etc. To assist in this process, I would like to utilize a procedure which combines the Strategy Planning Process (attached) submitted by Councilmember Bredesen (and utilized by the School District) with the work the staff has done to date on "The Plan" since the two do not seem very far apart and would bring Council and staff together on long range planning. This process would be as follows: Strategy Planning Process 1. Statement of Company Mission and Objectives 2. External Analysis 3. Internal Analysis 4. Key Strategic Issues 5. Strategic Plans 6. Time and Action Schedule and Strategic Objective "The Plan" Components Corporate Goals (Part II, p. 1 -3) Corporate Organizational Guidelines (Part III, p. 1 -7) Community Description (Part I, p. 2 -5) Economic /Financial Analysis (when developed) Organizational Guidelines (Part III, p. 1 -7) Corporate Strategies (Part IV, p. 1 -4) Corporate Strategies (Part IV, p. 1 -4) Combine Corporate Work Plan and (Part V, p 1 -6) Council Work Plan (when developed) Mayor and Council November 10, 1982 Page 2 7. Key Strategic Decisions At points spelled out in Council Work Plan (assume specific issues considered between March -June) The various aspects of "The Plan" would be reviewed in line with the instructions for the Strategy Planning Process and modified and altered in line with the Council's direction. It is expected that the meeting on November 15 would result in a Council Work Plan outlining the process that you.have agreed to, plus listing achievement dates. Additionally, if the agreed process.is as outlined, that the Council is able to accomplish Step 1 of the process by review of the Corporate Goals and Guidelines and modification to the goals as is appropriate. City Manager KER:md The Strategy Planning Process The attached diagram identifies the major component steps of the strategy planning process, and outlines the flow of logic which must underlie the development of a sound strategic plan. 1. Statement ofz Company Mission and Objectives The statement of company mission and objectives is the basic starting point for strategic planning. The statement of mission defines the Operating Company's essential nature and character. It describes the Company's role in the Corporation, how it will contribute to the Corporate Strategy, its market position in terms of target customer segments and geographical markets, its major strategic appeals to these customers, and its current performance objectives. The statement of mission, in short, defines what the • company is now and what it is- to become. 2. External Analysis The external analysis involves an assessment of major environmental trends and their likely impact on the company's future. This includes an analysis of long term economic trends,'consumer market trends, competitive trends, public policy trends, and other key external forces impacting on the business. The result of the external analysis is the identification of a limited number (2 -4) of key external threats and opportunities: That is, the one or two major factors which may threaten the company's future success, and the one of two major trends which the company might exploit as potential opportunities. 3. Internal Analysis The internal analysis is a situation and trend assessment `'of the company's key performance capabilities and resources. This analysis should include at a minimum an assessment of the company's personnel resources and organizational structure, its physical facilities, its major operating policies and procedures, and its financial position and performance. The internal analysis results in the identification of a limited number (again 2 -4) of key internal strengths which can be leveraged, and weaknesses to be corrected. 4. Key Strategic Issues By comparing the company mission and objectives, the external threats and opportunities, and-the internal strengths and weaknesses, the key strategic issues facing the company can be identified. These key issues again must be limited in number to only those core issues which will have a major impact on the future of the company. Examples of key strategic issues might be: New competitive threats against which a company is not currently well defended; emerging new market opportunities which a company either is not currently well positioned or does not currently have the resources to exploit. These key issues provide the focus and direction for developing sound strategic plans. -2- 5. Strategic Plans Once the key issues have been identified- sound, action- oriented strategic plans must be- developed which will resolve 'the issues and help the company fulfill its mission and accomplish its objectives. Individual strategies may take a•.variety of forms reflecting the unique capabilities and resources of individual companies. In any case, however, the strategies must be a response to the key strategic issues facing the company. These strategies may involve an aggressive expansion program, they may indicate reintensified merchandising programs to regain a dominant but threatened competitive position, or they may suggest a program of short term retrenchment and internal rebuilding in anticipation of future growth and improved profitability. The critical point is that the' strategic plans must be consistent with and be-based on the company mission, its external threats and opportunities, its internal strengths and weaknesses, and be addressed to the key strategic issues determining the company's. future vitality. 6. Time and Action Schedule and Strategic Objectives Even the most rigorous and well- considered strategic plan will be to no avail unless it is implemented with commitment and precision. Consequently the next step in the planning process is to develop .a realistic but challenging Time and Action Schedule for the execution of the plans. This schedule would also include a sta teMLnt of specific objectives or milestones for the coming year - control -3- points for monitoring the company's progress. Even though the strategy reflects a long run plan, it is still executed in a series of short run actions. 7. Key Strategic Decisions The final step in the strategic planning process is possibly the most crucial component - identifying and forcing the resolution of the key decisions which have to be made before the plan can be implemented. Most of these decisions are the responsibilities of the Operating Company, but some, most notably those involving major capital expenditures, are dependent on corporate management approval. These decision points must be explicitly identified, and it is encum- bant on corporate management to respond to these points in a direct and timely manner. The results of these decisions can then be incor- porated in the Operating Company's financial goal planning.. -4- THE STRATEGY. PLANNING PROCESS EXTERNAL ANALYSIS: KEY THREATS AND OPPORTUNITIES STATEMENT OF COMPANY t4ISS10N AND ' OBJECTIVES KEY STRATEGIC ISSUES STRATEGIC PLANS TIME AND ACTION SCHEDULE AND STRATEGIC OBJECTIVES FOR COMING YEAR KEY STRATEGIC DECISIONS OPERATING COMPANIES _j INTERNAL ANALYSIS: KEY,STRENGTHS AND WEAKNESSES CORPORATE MANAGEMENT m T H E P L A N Executive Management Committee City of Edina August 1982 Prologue Introduction (8/30/82) Part I Since December, 1981, nine members from various City departments have met to discuss ways to guide the organization's future. This document serves as the frame- work for consolidation of ideas and objectives, together with being a work plan to make the needed changes. It is anticipated that this document should be reviewed by this group on an annual basis prior to budget time to reassess the general assumptions and set the priority objectives for the ensuing year and one -half (i.e. July, 1982 - December, 1983). The outline of this document goes from general assumptions and objectives in the areas of community description, Comprehensive Land Use Plan, management objec- tives, financial planning and service provisions to the necessary time - specific work plan and objectives. The degree of control as to accomplishment of objectives varies both by type of objective and by time. (In reviewing "The Plan ", the three roles Edina plays as regulator, income transferer and service provider /arranger should be kept in mind.) The following represent major modules of this plan: Edina - The Developed Community. A discussion of the baseline plus antici- pated changes during the next 20 years. Corporate Goals - A brief outline of the general goals for the City in areas it is active. Corporate Organizational Guidelines. A delineation of general guidelines that reflect the philosophical direction of the organization. Comprehensive Land Use Plan. While originally created prior to development of "The Plan "; inclusion of this as a module incorporates it in the annual review process, and makes. the Corporate Work Plan the vehicle for implementation of the Comprehensive Plan. Economic /Financial /Forcast. A list of expectations regarding those principal trends that are anticipated to impact the organization's operation in both the short and long term future. Included are a list of indications to judge the financial inability of the organization. Service Production Levels. While not presently available, staff members during the next several months will be working to develop service level descrip- tions in each end use area. This will permit decisions regarding services to be made on a more informative and objective basis. Corporate Strategies. This is a compilation of directions to be undertaken during the next five years. Corporate Work Plan. The listing of specific objectives to be accomplished during the upcoming 18 months based on development of the objectives in July in conjunction with the budget for use during the last 6 months of the current year, plus the 12 months of the year being budgeted. Edina - The Developed Community Maintenance and Adaptation With the additional amount of new development declining due to limited availability of raw land (exceptions being in the France /494 area and Parkwood area), the prime goals over the past five years have become: - The preservation and maintenance of existing physical development, both public and private. - Adaptation of the community both socially and physically to external changes brought about by the passage of time. -2- Given that the majority of the physical development is relatively young (finder 60 years old), there has been little need for major redevelopment in the form of replacement of old buildings by new facilities. As time passes redevelopment will become important since it impacts both land use density and u sea ge. It will-be initially influenced by the City's efforts made in maintenance.and adaptation of the.City. (The cost of replacement may be considerably more than the cost of timely maintenance.) The other influence on the demand for redevelopment will be (the value of the developed land for replacement by new development) when the "cost" of undeveloped land in other communities because of development and transportation costs is higher than the redevelopment of land in Edina. Redevelop- ment of this type is invariably of greater density. that: Principal demographic forecast for the community in the next 10 years is - The actual census will not increase substantially and will generally stay around 46,000 with the 1990 population expected not to exceed 48,000. - While the average age of the population will increase for the next five years, it should begin leveling off with the percentage of seniors population reaching a maximum of 18 %. - Relative land values will continue to escalate but not as rapidly as in the 70's. It relatively will become.affordable to an ever decreasing upper income bracket. To the extent that interest rates come down, there will be a direct impact on how rapid values will go up, although not a direct dollar for dollar basis. - The per household population will continue to decline as many of the remaining residential units to be built will be multiple residential and therefore smaller; generally for 1 to 3 people rather than 3 to 8. -3- Median income of the community, while remaining high, may level off relative to other surrounding communities due principally to the increased retired population. The school age population will show some resurgence but only a 10 -15% increase by 1990 over the present population. - The number of jobs in the community will increase from a 1980 level of 36,000 to 1990 level of 41,000. - Daytime population (residents, employees, retail shoppers, etc.) should increase about 10% by 1990. Edina could during the next five to ten years attempt to minimize its expenditures by maintaining a status quo or less in the personnel area; foregoing routine capital replacements of facilities and equipment, not engaging in modification of operations or introduction of available technologies to improve service production costs. Such a course, however, has a cost in two respects: - By postponing maintenance /replacement of capital facilities and equipment the total cost will at a certain point become more expensive to repair than the ongoing costs of a replacement or routine upkee - Give the current and anticipated control the State is exercising on local finances, attempts in 8 -10 years to do significant repair /replacement of capital facilities or introduction of capital intensive technologies will not be possible because growth of the current major source of general fund revenue, property taxes, will be strictly a function of what has been raised in previous years. A lower than permitted tax levy in 1983 and ensuing years will have a direct effect on what will be able to be levied in 1990. The course for the City of Edina set forth in this plan proposes to maintain and adapt in the next 10 years so that Edina can remain in such a mode for -4- another 30 to 50 years. This is in opposition to the adoption of a minimalist approach which would necessitate that Edina enter a significant and costly redevelop- ment mode as a result of unmaintaihed public and private facilities. (As is evident in Morningside, the caliber of the public facilities in a neighborhood can have a decided impact on the private facilities.) As for service provision, the Plan as outlined intentionally seeks to maintain current service levels while reducing service provision costs by introduction of proven technologies, by adoption of improved production methods and by using fulltime staff personnel as a nucleus to a force of parttime and.volunteer personnel to handle service provision as appropriate. In order however, to remain in the renewal and maintenance mode for capital facilities and equipment together with improved service effectiveness, the City will be required to make a conscious decision to spend the needed "investment" money on the front end in order to realize the savings in the long term. The Progress anticipated then for Edina during the next ten years in pursuing this course will have two dimensions: - Improvement in the efficiency of service provision through tools and techniques that become available - Advances in the nature and quality of services provided. To the extent that these two dimensions are interrelated, progress for the purposes of efficiency improvement will also result in improved quality of service. Such progress will keep Edina in its position as responsible, effective local government leader. -5- ti. T H E P L A N Corporate Goals nrurnn - Maintain the character of the community for which Edina is noted. COMMUNITY DEVELOPMENT (8/30/82) Part II - Retention of the mix of development currently found in the community particularly . maintaining the character of the established residential neighborhoods through the use of appropriate land planning tools. - Maintenance of private facilities should be encouraged to avoid deterioration of either residential neighborhoods or commerical/ industrial areas. - Public facilities will be maintained through an ongoing capital expenditure program. - Promotion of affordable housing particularly to help establish new families in the community. - At a minimum retain the current areas of business to insure a healthy community with a strong tax base. - Implement the comprehensive plan as approved. COMMUNITY REGULATION The City will institute, retain or eliminate regulation of activities in the community in the interests of public health, safety and quiet repose of the community when: - such reduces the demand for City provided services; - protects health, safety and property of persons in the community; and - assists in achievement of community objectives regarding community development. Regulation will be kept to a minimum however so as not to create: - an undue economic burden on business; - needless inconvenience or impose restrictions in the use of one's own private property; and - unnecessary duplicates of regulation by other regulatory bodies. SERVICE PROVISION - Provide a base set of municipal services to the community in the most effective manner possible. - Where appropriate finance those service through the use of service charges in order to: a) reduce the amount of service costs bourne by the community at large; and b) not create excess demand associated with a "free good ". This limits the amount of income transferred between parties through provision of services. - Introduce proven technological advances when such results in improvement to service provision to the community. GENERAL MANAGEMENT - Policy development shall be a joint effort of City Council and Staff with Staff proposing alternatives and Council deciding. Implementation shall be the responsibility of City Staff. - Management of the organization by Staff shall attempt to maximize the individual worker's productivity in achieving city organizational goals in an effort to minimize overhead control costs. -2- - Production of services shall appropriately be done with a nucleus of fulltime staff assisted by parttime and volunteer to handle demand periods of service. Compensation of personnel should be competitive enough to attract and retain high calibre personnel. - Financial resourses shall continue to be managed in a responsible manner implementing more sophisticated tools of such management as they become available. -3- T H E P L A N Corporate Organizational. Guidelines Introduction (8/30/82) Part III The following guidelines represent general statements of purpose that are to be used in the development of specific organizational objectives and also in the overall operation of the organization. The framework of this section splits the guidelines between those which generally relate directly to production of end -use City services and those which, while production related, are not direct production as such. SUPPORT FUNCTIONS Corporate Planning and Policy Development - A written organized planning document will be maintained and updated annually prior to budget. It will outline the general organizational direction for 10 years, general objectives for the medium term (3 -5 years), and specific objectives for the ensuing year and a half. Review of the City's Comprehensive 12-A use plan is an integral part of this activity. - Coordination and long range organizational planning will be done through a modified team concept using members from various operating departments. - The relationship with the Council will be one defined by the.extent to which policy development is to be done by staff as desired by Council. Management Control - To the extent possible, decisions that are in line with organizational goals will . be made at the lowest level practicable. Supervisory personnel will be consulted /informed when exceptions to normal methods are undertaken. Through such decentralized decision making, the responsibility of the individual is enhanced. - The amount of supervision and control will be kept at the minimum needed to insure production and limit abuse. Such minimalization attempts to: a) reduce non - productive overhead b) promote teamwork among service provider groups /areas. - Give department heads greater accountability and responsibility in the expenditure of money in their departments among the.various funds /types of expenditures that fall in their area. - Develop and utilize work plans for employees to use as a guide in perfor- mance of their job. - Improve capabilities to store, retrieve, analyze and dispose of information relevant to the operation of the City. - Implement and maintain upgraded management of contracted services not only to insure appropriate accountability of current services, but as a preparation for expanded contractural service administration. Financial Management - Financing shall be by the end user of a service when such a user is easily identifiable as the principal consumer of the service. (This impacts both , which services are charged and the amount charged.) - Services should be funded principally by the property tax: a) when it is principally provided for the protection of the community other than the direct recepient; b) the administrative cost of handling a service charge becomes prohibitive and /oi c) no direct recipient that is identifiable. - Where appropriate, each department after having developed a base line /level of service shall establish a fee for all usage above the basic service level. - Maintain an effective easily understood internal control structure to inhabit gross misappropriation and redundancy /incompetence in the expenditure of funds. - Even if a user fee is not charged, costs will be determined for each service provided. Attempts to relate costs to non end use activities should be avoided. - Insure City financial control methods remain in compliance with accepted practices. -2- - Insure appropriate procurement and disposal of equipment and commodities. - For enterprise funds.: Insure that rates in profit making funds pay fully for the service (excluding land /development costs) although all other bonds and interests for non -land capital facilities will be charged to the funds. Realistic capital replacement, renewal and upgrade budgets will be established in the following areas to insure timely capital upkeep and improved productivity for both.general and enterprise funds: * Capital Equipment * Capital infrastructure Renewal - Maintenance and replacement of streets, sewer, water and storm sewer. * Capital Facilities - Renewal and revision of City facilities apart from infrastructure. * Capital Development - Use of special /dedicated funds to upgrade primarily park facilities - limited by the amount that can be adequately maintained. - Maintenance of a contingency reserve of 2% of annual budget. - For all City funds establish and utilize guidelines for acceptable debt levels in line with City management and financial objectives. - Appropriate measures need to be taken to insure a well balanced investment portfolio that is attuned to the City's cash management objectives. Research and Development - Personnel shall seek more cost effective ways to perform operations. New methods requiring minimal capital investment should be introduced once impact of such have been explored with supervisors. -3- - The City will on a pilot basis selectively invest in testing of new products for use. When appropriate the company owning the product should be billed for all overtime or applicable regular time. - At the replacement point for used equipment, proven technically advanced egnipwient will be explored and, if appropriate, budgeted for replacement. marketing and Service Determination - provide a basic line of municipal services to the community - citzen /non citizen /business. - The City will only introduce new or expanded services in an area when: a) there is a demographic shift that decreases the need for another service that can be substantially reduced or.eliminated; b) that service is a prevention activity with a demonstrable reduction in cost for a corresponding remedial or enforcement activity; c, non -local tax funds cover the implementation and recurring program costs; or d) there is a clearly demonstrated need (not just i meant or desire) for such a service and the City is the most appropriate entity to handle such. The individual department heads will study market demands for services. They are respansible to ascertain when alterations should be made regarding service levels and mix. - Seek reduction and resist additions in regulation of both business and private parties not only at the local level, but also at other governmental levels when such regulation: a) is no longer appropriate. b) Does not assist in promoting City policy objectives. c) Does not increase the demand for City or other provided remedial services. -4- Such regulation reduction should result in savings by reducing the need for enforcement activities on the part of the City and counter activities on the part of the party regulated, together with increasing opportunities and competition. - Seek to have responsibilities for service provision and regulation shifted from the federal, state, metro and county levels to the local level when local controland response is more appropriate and effective and also accompained by appropriate financial resources. - The City will actively promote use of those preventative services which can deomaonstrably reduce demand for remedial services and therefore result in an overall cost redaction or improved quality to life. Remedial services will riot be promoted. - In enterprise areas the City will: a) actively promote usage of its recreational activities, b) promote conservation in its utility usage, c) promote liquor sales only through in -house marketing efforts, coupled with use of the name in conjunction with sponsorship of selected ads. - The City shall use its newsletter (published three times a year) in conjunction with public /government access cable television programs and announcements to inform the community and market its preventative services. - In determining the price to be charged for a service, the impact of price on demand (whether elastic or non - elastic) shall be taken into account when attempting to cover all service costs by use of fees. - Add capital facilities only to the extent that it does not adversely impact current maintenance demand. PRODUCTION FUNCTIONS General - Provide services to the community in the most cost effective manner possible. - Provision of service should be done in a courteous businesslike manner. -5- - Implement service production changes when there is a minimal investment at risk; or that there is a guaranteed payback within five years. - Where appropriate seek out private and /or public sector service providers who are able to furnish current City services either under contract or in the competitive marketplace which results in a more cost - effective provision. than through the City. This shift must result in a realized net savings to the City in both that and related areas. Human Resources - Personnel will be cross - trained to: a) provide back -up to areas where staff is minimal to cover vacation, sick leave, and occasional heavy workloads. b) shift from one work areas to another to accomodate shifts in demand. - A form of modified teams should seek ways at the production level to improve production and reduce costs. Compensation goals for personnel are to be in the 3rd quartile (50 -75 %) of comparable jobs in the market to attract and retain quality personnel. - Make viable performance standards and work plans for personnel tied to pay for such performance. - Revision of benefits should be comparable between union and non- union. - Fulltime personnel will form the nucleus of a production staff which includes parttime personnel and volunteers where appropriate. - Treat all personnel in an equitable manner. Hard -ware and Capital Facilities - Capital equipment will be replaced at the point that the cost of repair and needed back -up equipment plus their operating costs equal more than the average lifetime depreciation, repair and operating cost of new replacement. (Lease options should be reviewed.) - Technological advanced equipment should be introduced as outlined in research and development and general production above. - Develop and maintain capital equipment replacement guidelines. Property Acquisition The City will acquire property for its use only on a limited basis. Such acquisition of property for additional facilities= for utilities, public works or public safety, or as additions to currently existing parks. This does not apply to the acquisition of property for HRA /redevelopment purposes or to the acquisition of necessary right of way for streets, sidewalks, utilities or storm sewer purposes. Land and associated developments should only be added after realistic assessment as to impact on City crews for ongoing maintenance. Property Disposition All property parcels not of use to the City as part of a park and facilities for City administrative or maintenance purposes or right of way, shall be disposed of as is appropriate in order to again become taxable. Capital Infrastructure Renewal /Facilities -All streets in the City (concrete and bituminous) shall be maintained at a level to protect the capital investment for the service life of the street. - Concrete streets should receive periodic surface maintenance to include joint and crack repair to protect the investment. - Bituminous streets should receive periodic maintenance on uncurbed streets to repair street surface and provide positive drainage. - Bituminous streets (curbed and uncurbed) should receive periodic sealcoating to correctly protect the investment. - Major street renovation will occur when the surface or subsurface conditions -7- necessitate reconstruction(usually 30 -40 years after capital investment.) - Water supply facilities shall periodically be inspected for water erosion or corrosion and appropriately repaired or replaced. Sewer collection systems shall be periodically inspected and cleaned. All appurtenant facilities to the public works systems shall be maintained to provide adequate services to the residents of the community. -8- (9- 13 -82) Part IV THE PLAN Corporate Strategy 1982 - 1988 The expectation during the next five years is that the principal consideration for Edina as well as other Minnesota communities will be the restrictive financial climate resulting from decreased intergovernmental revenues due to a prolonged economic downturn, a reversal of the growth trend in the public sector, and more control of local units of government by the state. This will be particularly true during 1982 -85. As the principal driving force, this area will discuss financial strategies first followed by strategy discussions in the areas of general management, marketing, production improvement and compensation. Financial Strategies The following represent the mid range strategies for Edina to keep fiscally sound (strategies in other catagories are also integral to this). Revenue Development 1. Increase non tax (including intergovernmental) revenue apart from liquor store profits from 7% to 15% of the total general /park fund revenue by 1987 through a combination of: - Equating currently charged fees to full actual cost. - Reducing dependence on tax supported funds - principally_ state and federal. - Propose user charge mechanisms in all areas of service provision to the public and institute those where easily identifiable individuals are primary beneficiaries and when charging will not have an undesirable effect on usage. - Fully charge enterprise funds for costs they incur which are not paid for through the general fund. 2. During this transition period it is expected that: - financial responsibility will shift from the federal and state levels to the local level. - Edina will need to attain a strong footing as a renewing /maintaining developed community principally by insuring capital facilities soundness. - State controls on local property tax levies will be very stringent based on the actual levy of the previous year. Given these factors, Edina is encouraged to levy the maximum it is allowed in order to retain the needed fiscal flexibility during these years of transition so it can effectively deal with mid -year declines in other tax supported revenues (state and federal). Once the transition is made in 3 or 4 years and the needed financial flexi- bility is attained, the City can reduce its levy below the maximum without endangering its financial health. 3. Achieve and maintain a budgeted fund balance of 2% of total budget by 1984 for use as a general reserve for revenue shortfalls from state and federal levels. 4. By 1984 institute and fund the capital budgets needed to successfully maintain the City's own capital facilities and equipment. 5. Grantsmanship will be pursued in all capital areas - none in operational mode. 6. As an additional item of information, in considering proposals for development/ redevelopment the tax generation and demands for service should be estimated. 7. Explore development of a specific levy for the HRA. Capital Investment 1. By 1983 prepare capital financial expenditure plans for 1984 -1988 in the areas of sewer, water, streets, parks, buildings, equipment and other capital facilities. 2. By 1983 review the replacement of the Danens structure for needed City vehicle storage. 3. Explore upgrading the radio communications system, both in emergency and admini- strative areas by 1983. 4. By 1983 prepare a technology upgrade and energy conservation budget. Financial Management 1. By 1985 shift from cash to accrual budget accounting. 2.. By mid -1983 institute modified self insurance in appropriate areas -2- (principally health, worker compensation and general liability) together with appropriate preventative safety, health and wellness programs by 1984 to realize savings in these area. Management Strategies 1. Develop further systems and personnel practices for sharing of resources among /with departments, both in demand times and in non - demand times by 1986. Included is the expanded use of the successful team management approach currently employed at the department head level. 2. Improve the information management of the City by 1985 through computerization in the areas of: - Police - Public Works - Fi re - Park and Reacreation together with addition of word processing and computerized management analysis. In addition, improve file and paper management through use of other storage modes such as microfilm or computerized alternatives to microfilm. 3. Revive in 1983 the Council -staff policy development program to allow for policy development in a reflective and informative atmosphere. 4. By 1985 complete and implement a master fire plan. Marketing Strategies 1. By 1985 have instituted the use of cable television to market City services in the areas of: - Public Safety Prevention - Energy and Utility Conservation - Policy /Regulatory Information - Recreation Facilities 2. By 1984 all departments will develop service levels, production and demand functions, appropriate measures and costs to review appropriateness of services currently being provided, together with analysis of deletions or additions. -3- ,. 3. Prepare issues and have City elected officials meet with legislative representatives, and also testify at hearings, in order to effect changes needing state legislative approval. 4. Further seek to develop housing that meets the demographic needs of the community,together with- encouraging Edina people to participate in Edina housing. 5. Annually review a service in each department as to level and appropriateness of service. Production Strategies 1. By 1985 establish cost per unit of service in all areas of service to better understand the interrelationship among service areas. 2. By 1984 develop at least one alternative to current means of providing each service using a different combination of personnel, equipment, commodities, etc. and availability of contracting out or joint effort. 3. Prepare by 1984 an energy conservation program including capital improvements to reduce consumption for buildings and vehicles. Compensation Strategies 1. By 1985 implement a performance based pay system in supervisory areas and an incentive plan for non - supervisory personnel. 2. By 1983 fully review benefits and commence modified self insurance. 3. Review annually the present compensation schedule. 4. Review and update Personnel Rules. -4- (9- 13 -82) Part V THE PLAN 'Corporate Work Plan August 1982 - December 1983 The following represent specific objectives to be accomplished making assignments as to the responsible person or group and a.due date. Area Objective Coordinator Due Date Financial 1. Increase revenues from fees and charges to: - 8% of 1983 Budget 10% of 1984 Budget 2. Improve revenue generation from liquor stores by: - Improved stock turnover to 8 times /yr for all stores by use of computerized inventory data - Establishing other management and financial targets 3. For 1983 Budget, levy the maximum property tax allowed to at least 8% level plus avail.able special levies - The same for 1984 4. Attain a general fund contingency of: - 1% of 1983 Budget ($90,000) - 1 112% for 1984 Budget ($135,000) with a reserve large enough to fund Budget from beginning of Budget through receipt of first tax settlement. 10/82 C. Smith /with 8/83 Dept. Heads C. Peterson Council /K. Rosland Council /K. Rosland Council /K. Rosland 10/83 10/82 10/83 Area Objective Coordinator Due Date Financial (contd) 5. Develop 5 -year capital expenditure M. Bernhardson/ Dept. Heads programs in the following areas: 4/83 - Capital Equipment by.department including enterprise funds - Capital Facilities Renewal /Improvement - Infrastructure - Buildings - Capital technology and energy .improvement 6. Institute capital programs in #5 for J. Dalen 1984 Budget 6/83 7. Study and /or institute self insurance in M. Bernhardson the following areas: - Health Benefits 11/82 - Worker Compensation 5/83 - General Liability 8. Strengthen internal.control for financial D. Brenske Ongoing matters not only in finance but all areas handling money. 9. Investigate and decide as to prudence of= F. Hoffman 2/83 replacement of Danen's building 10. Investigate possible billing of utilities J. Dalen/ 10/83 D. Brenske bi- monthly or monthly instead of quarterly. -2- Area Objective Coordinator Due Date Management 1. a.). Explore better utilization of personnel F. Hoffman/ 6/83 B. Kojetin during various demand times between public works and park (including sewer, water, mechanics and various recreational activities). b) Implement recommendations 8/83 2. (a) Investigate shifting primary fire C. Swanson/ 12/82 B. Buresh dispatch to police, utilizing fire dispatch as a backup when personnel are available. (b) Implement recommendations 3/83. (c) Explore upgrading of radio communi- cations hardware. 3. Implement available computer aided manage- D. Brenske ment information systems - Police /POSSE C. Swanson 1/83 - Liquor /Full LICS C. Peterson 1/83 4. Study use of available computer programs for: - Public Works /Equipment Control F. Hoffman/ 12/83 C. Smith - Administration /Fixed Assets Inventory - Licenses - In House micro computers 5. Educate personnel and utilize various C. Smith 8/83 features currently available in management information systems. -3- - Word Processing - Visicalc /MATH 3000 - Various Information Network 6. Study in house computer communications network 7. Research alternatives to storage of doc- uments on microfilm together with,review of-applicability of microfilm and related technologies. 8. Expand present use of modified team manage- ment to other organizational levels. 9. Test in a problem setting utilization of new emergency operations center and emergency organization. 10. Utilize Executive Committee concept in the organization's long range planning function. 11. Commence development of fire master plan 12. Reinstate Council -Staff policy develop- ment program. 13. Develop agendas for meetings of Edina elected officials with elected represen- tatives from the State, Metro, County, School and special districts regarding desired Edina changes Marketing Coordinator Due Date M. Bernhardson 8/83 M. Bernhardson 12/83 F. Hoffman C. Swanson K. Rosland/ M. Bernhardson B. Buresh K. Rosland 1. Educate departments and utilize "Community C. Smith Bulletin Board" available on cable TV via installed teletype access in City Hall. 2. Develop additional public safety prevention C. Swanson programs utilizing cable TV local access. -4- Ongoing Ongoing Ongoing 3/83 12/82 2/83 12/82 1/83 Coordinator Due Date 3. Commence utilization of cable TV as to B. Kojetin 1/83 recreational programs /facilities marketing. 4. Review the status of Winfield /Laukka project K. Rosland 2/83 and decide as to possible construction in 1983. 5. Positively promote to employees desired K. Rosland Ongoing changes in the organization. 1. As a means to improve organizational per- M. Bernhardson 6/83 formance: - Determine the demand and the appropriate- ness of the service level of a minimum of two services in each department. - Determine cost savings and service reduction of two tasks in each department. - Develop an alternative means of producing at least one service in each department. 2. Implement 911 to improve emergency response 3. Contract isolated land parcels for summer maintenance if cost effective. 4. Complete development of energy conservation base line for buildings and implement those with 5 -year payback. 5. Develop an energy conservation program for vehicles through - Types of vehicles - Work methods 6. Develop recommendations as to shifting of zoning enforcement from Planning to Building. -5- C. Swanson 12/82. B. Kojetin B. Kojetin/ 6/83 J. Shirmang M. Bernhardson/ 3/83 C. Smith G. Hughes 2/83 Coordinator Due Date 7. Consolidation of sewer and water under F. Hoffman Ongoing one operation. Compensation 1. Review all current non salary compensation M. Bernhardson 1/83 benefits as to alternate method of providing. 2. Prepare outline for administration of a performance based pay system in supervisory areas and incentive plan in the non-super- visory areas. 3. Review and update Personnel Rules. M. Bernhardson 12/83 am STATE OF MI.NNE?SOTA ) COUNTY OF HEN " %t"PIN ) SS CITY OF EDINIA ) If 7 CERTIFICATE OF POSTING NOTICE I, the undersigned duly appointed and acting Police Patrolman for the City of Edina, County of Hennepin. State of Minnesota. do hereby certify that I have, this date, posted copies of the attached and foregoing •on three official City "Bulletin Boards, as follo:as: 1. City H� 42:01 W. 50th Street 2.. 50th and France Business Area (0972 W. 50th St.) ?. Amundson Avenue Shopping Center. Dated FO-A Signed �_�(1/ Police Patrolman Signed and sworn to before me, a Notary Public in and for Hennepin County,'minnesota, this, the day of 19 J, Z R -74 CITY OF EDINA 4801 W. 50TH STREET EDINA, MINNESOTA 55424 EDINA CITY COUNCIL NOTICE OY SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Edina City Council will meet in Special Session on Monday, February 22, 1982, at 5:00 p.m. in the Manager's Conference Room in the Edina City Hall. All interested persons are urged to attend. BY ORDER OF THE EDINA CITY COUNCIL. Florence B. Hallberg City Clerk February 2, 1982 Florence Hallberg MEMORANDUM TO: ALL DEPARTMENT HEAD ' FROM: MARK BERNHARDSONJ ` ISTANT CITY MANAGER SUBJECT: CORPORATE REPORT DRAFT DATE: JANUARY 15, 1982 Attached is a draft copy of Corporate Report 1981. I would appreciate your reviewing it and then getting back to me by January 19th with your comments. PIEB:md enc Florence Hallberg MEMORANDUM TO: ALL DEPARTMENT HEADS FROM: KENNETH ROSLAND, CITY HIANAGER SUBJECT: 4 TREND REPORT DATE; JANUARY 20, 1982 Please review by 9:00 a.m. Thursday, January 21, any changes you would like made in the attached third part of the report for tomorrow. Your comments both in terms of content and grammar are appreciated. Any suggestions on title are also welcome. KER:md attachment PROGRESSION AND TRENDS "LOOKING BACK On October 15, 1977, Edina appointed the first new City Manager in 23 years. FY While the intervening four years have gone quickly, I felt it fruitful to review some of the changes that have transpired as an assist in setting future direction. Many of the changes noted were implementation of ideas set out in 1977; others have been made to accomodate changing situations or have been forced upon us. Some ideas set out then still seem appropriate but need the proper time for implementation. The intent of this discussion is to give you, as Council members,.a flavor for the trends through a combination of quanitative and qualitative measures. It.in no way is-- a-comprehensive analysis of all the organizational trends, but a look at the ones the staff feels significant. This discussion will initially cover some general areas, followed by an indication of major task.changes, with a review of individual department trends at the end. .1 General Management - For the most part the quality of the management staff is superb and through the excellent working relationships that have been established, they function as an excellent team. Biweekly staff meetings and the Vertical Process Management teams have been of assistance in this regard. While the.VPM teams have not been active the past nine months, they may have business following the work of the new Executive Team. On balance this improved teamwork is evident in: 1) shorter Council meetings resulting from better staff preparation, 2) excellent service levels . in light of increased demand and non- increasing resources, 3) positive organizational movement, and 4) harmonious relations within and among the people in the departments. Personnel - By 1977, the staff in Edina had grown to a total of 225 fulltime personnel., At the end of 1981 there were 209 positions with one slot unfilled. This resulted from a combination of elimination of some tasks, redistribution Page 2 of duties and use of parttime personnel in selected areas. Turnover of fulltime staff has decreased each year from a high of 20% in 1977 to 6.6% in 1981. Sampling parttime employment, the average number of parttimers in the summer (242) has increased as has the average number in winter (about 130), primarily because of a greater demand for year round parttimers in liquor, police, fire and water areas. Since 1977 the Personnel portion of the budget has increased slightly from 68% to 71.9 %. In general, employees have not only retained but generally have - increased their productivity. Physical Facilities - Since 1977, the City has not contructed any new facilities apart from completion of the parking ramp on 50th Street and the park shelter at Lewis Park, but has made additions and /or modifications to City Hall, Grandview Liquor Store and the Art Center. Energy savings modifications have been made to other City buildings, principally the Arena and the Public Works garage. In future years other energy modifications will need to be made to keep energy costs down as money is available. Under the vehicle management policy, the City's automobile fleet generally has been downsized, particularly in administrative vehicles; has become more fuel efficient (police squads have increased mileage by % since the 1977 model year), and now is a more modern fleet that requires less maintenance. These same attempts are being made in the heavier vehicles such as trucks. However, improvement on a fleet wide basis in heavier equipment is a much longer process because of the expected life coupled with the larger costs. Overall, City facilities such as streets and sewers have increased 5% since 1972 with water lines and storm sewers having expanded by 12 %. This has lead to additional maintenance efforts, both reactive such as snowplowing and also periodic renewal efforts such as seal coating every 10 years. The cost of principal commodities for maintenance has risen as illustrated: Page 3 While the City needs a set amount of seal coating materials for its annual program,.:_ �r�►'.'t t �E.� C, r. ;bi C.`1. S;j:�tJ ��;1 . ( �'.�(_ �wb1 is i�> >.( 1LL. 5 ' 1 b �!..� iF;L Cul ii'•. am attempts ha§� been made to mi nimi ze the use of sal t bye recommend -a 1 :10 sal t to W, Ii Vkc- c' sand mixture. However, differing weather conditions require different mixtures. Service Provisions - The staff is constantly reviewing the services that are delivered and the manner in which they are delivered to eliminate or reduce low demand, non - critical services and to improve methods of delivery of those retained. The most notable have been use of improved capital equipment and technologies to make individuals more productive and the use of parttime personnel where it is appropriate, together with improving the actual methods that accomplish those service deliveries. Community Changes - The demand on the City organization is a function of the population and its associated demography and also of the developed land areas to which the City provides service. Below are listed some of the changes experienced by the City in the last several years: Population Land Area Buildings Parcels Street Miles Sanitary Sewer Storm Sewer Water Parks: Number Acreage Street Lights Measure (Year) ! Salt - 129% Concrete Sand - 77.9% Blacktop - i10 % Cutback Asphalt - i160/a While the City needs a set amount of seal coating materials for its annual program,.:_ �r�►'.'t t �E.� C, r. ;bi C.`1. S;j:�tJ ��;1 . ( �'.�(_ �wb1 is i�> >.( 1LL. 5 ' 1 b �!..� iF;L Cul ii'•. am attempts ha§� been made to mi nimi ze the use of sal t bye recommend -a 1 :10 sal t to W, Ii Vkc- c' sand mixture. However, differing weather conditions require different mixtures. Service Provisions - The staff is constantly reviewing the services that are delivered and the manner in which they are delivered to eliminate or reduce low demand, non - critical services and to improve methods of delivery of those retained. The most notable have been use of improved capital equipment and technologies to make individuals more productive and the use of parttime personnel where it is appropriate, together with improving the actual methods that accomplish those service deliveries. Community Changes - The demand on the City organization is a function of the population and its associated demography and also of the developed land areas to which the City provides service. Below are listed some of the changes experienced by the City in the last several years: Population Land Area Buildings Parcels Street Miles Sanitary Sewer Storm Sewer Water Parks: Number Acreage Street Lights Measure (Year) Pleasure (Year) 44,046 1970 46,073 1980 16.4 1886 16.4 1981 15,629 1977 18,099 1981 188 1972 166.7 1972 65.25 1972 170.24 1972 24 1970 34 1980 987 1970 11,157 1980 254 However, these gross indicators do not give any indication as to the age, economic status and size of household, alterations of which can impact demand on such diverse programs as recreation, crime and emergency medical - both real demand usage and desired service levels. Neither.do these indicators speak to the additional time plowing a cul de sac takes as compared to the same length of "connected" continuous Pane 4 street. .1rddT_t_io_na-14y t does not speak to catch -up maintenance needed for selected systems which when new were not maintained as frequently as they should have been. These numbers, however, speak to a growth in at least the physical facilities to be maintained. Financial - Since 1977, revenues have increased an average of 7.9 %. Property tax revenues have ranged from a low of 57.5% of total revenues in 1979 to a high of 60.9% in 1982 which is up marginally from the 59% in 1977. Intergovernmental revenues hit a high of 22.2% in 1979 and a low of 18.4% for the 1982 budget year, with liquor averaging about 5.7 %. Edina's share of the property tax dollar has remained between 10 - 11 %. Departmental Trends In addition to the general trends, other general and specific changes and assignments are outlined below by department. Administration - Cable TV franchising /construction - Increased H.R.A. activity - Recycling responsibilities - Additional long range planning and coordination Finance More efficient operation in fiscally restrained times Billing for paramedic and false alarm charges Assessing This is best illustrated by load changes since the last Homesteaded Parcels Valued Properties 1967 11,593 9,366 the following chart which shows the work increase i'n fulltime staff in 1967. Estimated. Market Value Assessed Value $ 448 Mil $160.8 Mil 1977 15,629 11,600 1,149 Mi1(156 %) 398.7 Mil(148 %) 1981 18,099 13,700 2 ,003 Mil( 75 %) 558.5 Mil( 40 %) Page 5 Community Development While conventionalwisdom would seem to dictate a decrease in amount of work in this area because of the mature nature of the community's development, additional tasks have been added to work load, although there has been a decrease in personnel in the departments related to community development. Planning - While the number of land developments has subsided since the mid - seventies, remaining development plans have on an individual basis substantially increased staff time demands because of the typically difficult nature of the remaining, undeveloped land. In addition, Planning has had these task increases since 1977: Comprehensive Plan development and administration " Doubling the number of Board of Appeals meetings Introduction of Findings of Fact in denial of selected proposals Heritage Preservation responsibilities r Winfield /Laukka /Mixed Use Development Engineering - There has been a decrease in some aspects of the department's tasks with a corresponding reduction of staff. However, there has been an increase in new task areas including renewal maintenance review. These include: Cable television construction supervision Increased monthly water samples Work on Comprehensive Plan Railroad crossing annual inspection Required State Aid street traffic counts Annual bridge inspections Ongoing 5 -year State Aid street plan development Metropolitan involvement in selected areas to protect City's interest Building -With the shift in the character of the community from development to redevelopment the department has: Increased the number of permits issued and inspected Entered energy savings promotion and energy code compliance Page 6 - Additional meetings of the Board of Building Construction Appeals as the Energy Advisory Board, plus increase in number of appeals Public Safety In a maturing community, public safety demands often increase beyond the nominal increase in population and building development. In Edina this has been evident in a general increase in calls for police service; increases that roughly correspond to the national and locally reported crime statistics, increases in the age of population which particularily affects emergency medical demands and the general aging of facilities that can affect the number of serious fires and the maintenance of safe health practices. In light of increased demands there has not been a noticable decrease in emergency response. Police - In the past four years the following changes have been noted: Calls for service increased - Police Officer Standards and Training Mandates Emergency Preparedness improvement Increased security alarm administration Research and development of difficult ordinances from operational viewpoint. - Bicycle Safety Program Suburban Police Recruitment System Parking permit issuance - Traffic safety administration Reduced number of sworn officers from 46 to 4.3 - Reduced involvement in police /school li'asion and crime prevention Fire - After substantial increases in calls in the mid - seventies due principally to emergency medical calls, demand has stabilized. - Average annual fire losses in terms of current dollars has remained constant Average.annual fire loss has declined in terms of constant dollars. This is most noticable in inspected properties. (The primary benefit of regular inspections is in occupant awareness and education rather than Page 7 enforcement.) Uninspected properties, which comprise 75% of the market value, haVeshown little change. - Successful implementation and operation of volunteer program. Once outfitted, the average cost of 20 volunteers is less than that of one fulltimer when used as a supplement to the on -duty staff. Physical Operations In relation to the large growth of the community, coupled with the attendant growth in streets, sewer, water and storm sewer lines and maintained parks, the addition of one individual in 10 years is minimal by comparision. Public Works - Increased sidewalk maintenance - Parking ramp maintenance at 50th Street - Increased maintenance of aging facilities coupled with better preventive maintenance to reduce future cost - Improved productivity in mechanics area resulting in less need for contract work - Sharing of custodian to reduce public works costs - More flexibility to shift to high demand areas and more effective use.of parttime personnel r. Energy savings in public works building and community street lighting - Increase in cost of petroleum products for fuel and street maintenance sealcoating - Increase in the time it takes to plow an average snowfall Parks - The amount of acres to be maintained has continued to increase, both in developed parks and median maintenance. Decrease in number of warming House rinks from 16 to 12 - Increased energy savings at Braemar Arena - Increase in rounds at Braemar Golf Course Recycling - While turning a substantial profit in 1981 after ten years, it will probably return to a breakeven "community service" in 1982 as paper has gone from $20 /ton to $5 -6 /ton within a few months. Page 8 Human Services This area has been and continues to be in a state of flux with the City looking to the recommendations to Council as a result of the South Hennepin Services Study. Recreation - Growth in adult activities including softball and the Art Center complex - Higher participation rate in decreasing.youth age,groups - Maintenance of excellent program levels by the various volunteer boards with the addition of board3 for sec -per, 9 i ' i cs®amh bandy - Addition of volunteer transportation program which has increased utilization of seniors' programming Human Relations - Expanded role in advising Council on selected issues including Storefront/ Youth Action and review of South Hennepin Human Services Study - Addition of no-fault grievance process Public Health Services - Increased utilization of services, particularily home health visits - Possible cutback in programs due to state funding limitations SUMMARY The above narrative is presented to help you, as Council members, understand that the organization can pare back only so much without affecting programs, morale and productivity. It is my feeling that the City has reached the point that if further cuts are to be made the Council will need to do so as a conscious decision in terms of cutting programs, not just as a general cutback. t, STATE. OF T.U.N 1ESOTA ) COUNTY OF Ii E' i;P I:a ) SS CITY OF EDINA ) CERTIFICATE OF POSTING NOTICE I, the undersir-ned duly appointed acd actinc- Police Patrolman for the City of Edina, County of ilennepin. State of isinnesot:a, do hereby certify that I have, this date, posted copies of the attached and foregoing -on three official C ty Bu Min Boards, asrtolloc-rs: 1. City Hal , 42101 W. 50th Street 2,. 50th and France Business Area (3922 W. 50th St.) '. Amundson Avenue Shopping Center. Dated �� /�� S!Fned ice atrolman Signed and sworn to before me, a Notary l'u'dic in and for Hennepin County,Allinnesota, this, the day of P-9 _2__ R -74 CITY OF EDINA 4801 W. 50TH STREET EDINA, MINNESOTA 55424 NOTICE OF SPECIAL MEETING EDINA CITY COUNCIL -NOTICE IS HEREBY GIVEN that the Edina City Council will meet in special session on Thursday, January 21, 1982, at 5:00 P.M. in the Edina City Hall Council Chambers. All interested persons are urged tolattend. BY ORDER OF THE EDINA CITY COUNCIL. Florence B. Hallberg City Clerk t-4 I.. x, �� °- - -- - -- 1� Zags ZL I - 04— — / Z G }. z G /3 Tili a - - - - I - - -- -- - - -- -- y I rr c,,, — i I � j� CORPORATE REPORT 1981 EDINA - THE NATIONAL AND STATE PICTURE The year of 1981 which started off with surprisingly strong growth turned out to be a recycled 1980 with high interest rates and a sluggish economy, particularly in the third and fourth quarters of the year. The measures by the Reagan administration to stimulate the economy through reduced federal` spending and tax cuts, both general and selected, have yet to have any significant impact in promoting economic recovery. The Federal Reserve's efforts to cool inflation again pushed interest rates to high peaks in April through July. The apparent result of these rates, together with sluggish economics abroad, has been a declining inflation rate (around 9.6% for 1981 nationally but 13.6% locally, a higher figure than 1980 as measured by the CPI); a strengthened dollar, resulting in lower levels of exports; increased unemployment (about 8.9% nationally but 4.9% in the local metro area in November) and, at least at present, an unofficial national recession (real Gross National Product growth for 1981 was only 1- 1.5 %). Hardest hit as a result of this recession have been capital /loan dependent industries such as housing, automobiles and suppliers of capital equipment to businesses. As for reduction in governmental regulation, another aspect of the Reagan program, 1981 was more a year of reduced enforcement and a review of current regulations rather than a wholesale repeal of regulations at the federal level. The most marked impact on Edina as a result of the downturn in the economy has been the unprecedented effect on both income and sales tax collections at the state level. While noted in the 1980 Corporate Report that a deficit would be a problem in 1981 on,the state level, this deficit was worsened by: 1) optimistic but inaccurate forecasts of revenues for the biennial state budget, and 2) a state legislature that after one regular and three special sessions was unable to develop a solution to the problem until just before the start of the 1982 regular session. While the revenues Edina receives from the State total less than 13% of Edina's general budget, and payment delays or reductions can be absorbed on a short terra basis, .the largest problem for Edina, as with several of the better managed cities, is the Corporate Report - Page- 2 uncertainty as to how the State will resolve the long term financial problem. While the Legislature in its final action of 1981 guaranteed payment of withheld 1981 state aids and homestead monies for November and December, it does little to give any long range direction as to future financing of local government. Edina feels strongly that this crisis at the state level provides an excellent lesson as to dependence by local government on non -local sources. In fact, it may be a turning point in the financing of local government which Edina.would welcome if it promotes more efficient local government. However, some communities that may find difficulty in weathering the loss of outside funding may be prompted to pass off traditional local government functions to either the County or the Metropolitan Council Edina must work in a positive manner to counteract this possibility. The current uncertainty, however, inhibits our ability to deal appropriately with the situation in a positive manner. Apart from the financial uncertainty, the 1981 economy and other societal events have provided the following impacts: Community Development - Development of remaining land has continued at a moderate level primarily in the office "sector (10 major buildings constructed). The most notable economic impact has been on residential developments, especially two multiple residential projects that had been approved in late 1980 /early 1981 and which now have been delayed until the cost of financing and the market for that type of development improves. Otherwise, building permits, totaling -999, were at an all time high and the dollar value of developments,undertaken in 1981 was $52 Pillion. Any reduction in new construction has been offset by increased permits for remodeling activities. The results of the 1980 Census listed Edina at a population of 46,073. Public Safety - There has been no noticable impact in demand for services as a result of the economy, with reported crime, fires and medicals remaining at relatively constant levels. The only growth was a 5% increase in the number of service calls. The economic downturn ag.ain'demands the necessity of continuing to look to the most cost effective means of providing police and fire services. Corporate Report Page 3 Human Services - Decline in human services funding at both the federal and state level causes two potential local impacts. These include the ability of the South Hennepin Human Services Council to serve as a local coordinating hub for both public and private services, as well as the provision of community health services through a contract with Bloomincton Public Health Services which is state supported. In regard to the former, South Hennepin has completed a Human Services Study which the City's Human Relations Commission is reviewing to assist in development of an overall City direction, particularly in light of the federal shift to the state and the state's continuing financial problems. The prediction for 1982 is not dissimilar to the 1981 economic projection. The economy will probably remain sluggish through April with prime rates eventually declining to 14% in May -June and then increasing to 15% with an economic upturn in mid- summer. Because of continued uncertainty as to the long term trend of inflation, long term rates such as mortgages may not drop appreciably below present levels (17% /conventional). - - - Unemployment will probably bottom out in June (nationally at- 9.3%). The economic turn around should initially be stimulated by lower interest rates and more dollar avail- ability (the initial tax break in October 1981). Renewed consumer and business confidence in the last quarter of 1981, together with an additional tax break planned for July 1982, should likewise be significant. While the recent growth in the economy is a positive sign, it is anticipated that there will be a slight upturn in inflation in mid - summer, although it may end the year at 8 -9% which is below the 1981 figure. While the state's economic picture should improve along with the national picture, the state government's financial problems will continue to be troublesome probably into 1983 even if a favorable budget solution is enacted early in the 1982 session. However, the solution may have a negative long term economic impact on the state if the business community, particularly the nationwide companies, perceive that it is more profitable to do business in other states. Locally, 1982 will find Edina confronting the problems that are a result of the Corporate Report Page 4 state government's financial picture. The conservative management of the City in the past has placed Edina in a strong financial position to deal both with the short term cash flow problems and the long term reduction of state generated revenues. Once decisions have been made by.the state, Edina will adapt both in its 1982 budget and its 1983 budget. The property tax base has experienced a modest increase (11 %) for the assessed 1981 payable 1982, and will again increase 11% for assessed 1982 payable 1983. One of the possible solutions to the state's problems may give Edina a share of the sales tax in lieu'of the current state aids set -up. A portion of the local government revenues would then reflect the economic picture in a direct manner. EDINA - 1981 One of the most unusual events for any city council in the metropolitan area occurred in 1981 when Edina and Bloomington swapped the north half of the Radisson South Hotel for undeveloped office property along their common border to the west of the Radisson. The swap became official on July 15, 1981. Additional significant council issues and actions occurring during the first full year of Mayor Courtney's term included: - Continuation of participation in the League of Minnesota Cities. - Approval of Edina's Comprehensive Plan. Approval of Planned Office and Mixed Use Development ordinances. Consideration of Housing and Redevelopment Authority funding of a senior citizen residence and further exploration of the Mixed Use Development. - Approval of consolidated ordinances for fees and animal control. - Review of a significant disciplinary action. - 1982 B6d4et. - 2,4b usage in the community including a temporary ban on usage by the City. - Increased administrative purchasing authorization. - Consideration of health service options. Other events in the community that were Council related included: - Unaunuration of Mayor James Van Valkenburg. - Annual.Volunteer Dinner. Corporate Report Page 5 2nd Annual Edina Foundation Benefit. - Initiation of League of Women Voters' budget study. - "Decontrol" of Morningside garbage collection. GENERAL MANAGEMENT From a general management standpoint, 1981 was a year of reaction,and reassess- ment because of numerous events. The year 1982 promises to be a year for substantial progress towards the organization's goals. We can only hope that current problems on the state scene will result in solutions that are philosophically in line with Edina's view of local government. Concrete results that were evident in the City on a general basis included: - Completion of City Hall addition, handicapped access and a majority of work area rearrangement, together with the Art Center addition partially funded by a private donation. - Installation of cost - effective telephone system. - Expansion in the use of computer /CRTs in finance, assessing and liquor stores with a wider range of applications available in 1982. Energy savings equipment installations at the arena and public works garage together with roof repair on that facility. In the area of personnel, the overall number of fulltime personnel remained constant, although new positions were created out of old slots for an assistant finance director, firefighter- paramedic, and a water /sewer maintenance person. The other significant.addition was 15 parttime /volunteer firefighters. Overall turnover of full time personnel was 6.60%. - - Finance - While the state's financial problems may have an impact on Edina, at least from a cash flow standpoint, fiscal prudence over the years has left Edina in a strong financial position. The approved 1982 budget is an 8.5% increase over the 1981 budget which itself represented a 6.2% increase over 1980, both of which were at or below the inflationary trends for the previous years. (The CPI locally increased 11% i.n 19.80 and 13.6�� for 1981.)- The local property tax will fund 60.8% of the 1982 budget, up marginally from the projected 60.7% actual expenditure figure for 1981 (although i -t amounted to 56.7% of projected revenues). The actual dollars raised through property Corporate Report Page 6 taxes should increase about 9 %. The City's mill rate will probably represent about 10.3% of the total property tax dollar, which is a slight decrease from the 10.9% of the past few years. The estimated market value for property in Edina exceeded the $2 Billion mark for 1981 payable 1982 and yielded an assessed value of $558 Million, or about an 11% assessed value increase which is down from the 14.2% increase for 1981. In 1981 single family residences.continued to account for 75% of the estimated market value although only paying a 56% share of the taxes with commercial and industrial representing 19% of the value and 36% of the taxes. The balance of 10% of taxes come from other properties, principally multiple residential. In 1981 the tax bills on homesteaded property in Edina, after homestead credit, were as follows: Effective tax rates on commercial property were 3.8 %. As mentioned, the largest financial concern particularily for 1982 has been in the area of intergovernmental revenue because of changes on the federal level and the deficit on the, state level. These represent about 19.3% of the total budget I-rith state aids representing 13% of the budget. The originally discussed 20% cut in state aids in 1982 would represent about a 2.6% reduction in funding the budget. The present legislative b ill would represent an 11% cut of 1.45% overall budget reduction. A reduction in the 1982 homestead credit by the state will probably reduce revenues by about .6 %. While the State did not reduce the $650 homestead credit to the homeowner for 1982, they effectively reduced the amount they pay to the City by about 2% of its 10% share. Fees make up about 5.9% of the general budget and, apart from the liquor stores, are the sole source of revenue for the enterprise funds. Those fees requiring passage by ordinance were consolidated in one ordinance with the balance enacted by resolution. Fee increases for 1982 ranged from 10 -100% depending on the area. The most significant Effective Tax Rate Market Value Taxes 1981 1980 $ 50,000 $ 348 .70% 1.16% 100,000 1,393 1.39 1.93 200,000 3,867 1.93 2.30 400,000 8,811 2.20 2.52 Effective tax rates on commercial property were 3.8 %. As mentioned, the largest financial concern particularily for 1982 has been in the area of intergovernmental revenue because of changes on the federal level and the deficit on the, state level. These represent about 19.3% of the total budget I-rith state aids representing 13% of the budget. The originally discussed 20% cut in state aids in 1982 would represent about a 2.6% reduction in funding the budget. The present legislative b ill would represent an 11% cut of 1.45% overall budget reduction. A reduction in the 1982 homestead credit by the state will probably reduce revenues by about .6 %. While the State did not reduce the $650 homestead credit to the homeowner for 1982, they effectively reduced the amount they pay to the City by about 2% of its 10% share. Fees make up about 5.9% of the general budget and, apart from the liquor stores, are the sole source of revenue for the enterprise funds. Those fees requiring passage by ordinance were consolidated in one ordinance with the balance enacted by resolution. Fee increases for 1982 ranged from 10 -100% depending on the area. The most significant Corporate Report Page l - -- increase dollar -wise for 1982 was a -26%- increase for sewer, with rates -for Morningside- water (from Minneapolis) increasing 30 %. Both are enterprise funds. The balance of revenues for 1982 of 14% come from fines, charges, investment income and revenues from the liquor stores which for 1982 will be 5.6% of total revenues and will equal about .8 of a mill. On the expenditure side, personnel services represent 58.5% of the 1982 budget which is up slightly from 57.5% for 1981, although all related personnel costs increased from 71% in the 1981 budget to 72% for the 1982 budget. Capital outlay represented 8.2% of the 1981 budget and 7.9% of the 1982 budget. The balance of 20% is for commodities and contractual services. Total expenditures for the 1981 budget were $7.3 Million with the 1982 budget expenditures at $7.9 Million, an 8.5% increase. Between the budget funds discussed above and the enterprise funds, the total anticipated revenues for 1981 for the City are $17.5 Million and $18.7 Million for 1982. (This does not include revenues derived by the H.R.A. or special assessment revenues from non -City sources..) As for bonded indebtedness, the City sold two separate-bond issues -in October.-- The first for $4.2 Million were three -year temporary improvement bonds to help fund special assessments. The effective rate was 9.763 %. The second issue was $4.5 Million in general obligation tax increment bonds. These 12 -year serial bonds had an effective interest rate of 10.5165% and the proceeds above expenses went to fund purchase of property for the Mixed Use Development. During 1981, $6.315 Million of bond payments and interest were due (apart from H.R.A.) and paid .leaving an outstanding indebtedness of $9.3 Million for special assessments, revenue and general obligation bonds. Community Development - Major new construction in the office area and the strength in the remodeling area (not atypical' either in a maturing community nor during economic downturns) led to the largest number of building permits issued by Edina, which had a total valuation estimated at $52 Million of market value. New development was respon- sible for another Edina first; the construction of the first precast concrete arch bridge in this country. Known as a "BEBO" structure, it cost 25% less than a Corporate Report Page 8 conventional style bridge. New construction also resulted in the completion of Oak Glen, low and moderate income housing, together with an 8 -plex condominum development which was started on Lincoln Drive. The other "new construction" was the commencement of cable television installation in which most of the areas south of the Crosstown Highway were wired by year's end. Completion of the system for all residents by August of 1982 seems real.istic. Principal "recycling." efforts in 1981 focused on Wooddale School and Edina East both of which posed significant questions as'to the range of uses to be permitted as they are adjacent to single family residential areas. In addition to approval by the Council of the City's Comprehensive Plan, the Winfield /Laukka /Mixed Use Development, the Edina - Bloomington land swap, and assistance to a senior citizen residence, the Council reacted to proposals on: - State Building Code Amendments (deferred). - Acquisition of house in Todd Park. - 12 major contracts administered and 5 developer's agreements negotiated in public works construction. _ The final note in the area was publication of the book, The History and Architecture of Edina, which was the result of efforts by the Edina Heritage Preservation Board and the Edina Historical Society. Public Safety - Calls for service in the police area as measured by requests increased about 5% with the department remaining stable as to reported crime statistics. For various reasons, the department's year can be summarized as one in which they maintained the status quo as far as operations. Calls in the fire department leveled off with a slight decrease in total calls, the first decline since at least the early '70s. Items of note in this area include: - False alarms for police, which while increasing in number, did not increase relative to the number of systems in operation. There has been a reduction at least in repeat problems with a number of users, indicating the charge for security systems seems to have had an impact. - Passage of a false alarm charge for false fire alarms, again in an effort to reduce repetitive problems. Corporate Report Page 9 - Establishment and function of a 15- member partpaid firefighter component to supplement the on -duty strength which has operationally been well above expectations for the program at this stage. - Edina spearheaded efforts in the area of victim and witness data privacy protection which subsequently has been used as a statewide model in the area of data privacy. - A growth in the dependency of the Police Department on the Community Service Officer Program to perform an even larger share of non -sworn duties. - Mandating of sewer hookups for all properties to which sanitary sewer is available to reduce public health problems associated with both surface and private ground water systems due to malfunctioning septic systems. - New ambulance placed in service. - Continued success of the Bicycle Safety Program, both in positive community comments and financial support for the program in 1982 by the Edina Lions Club. - Donation of six body armor by the Edina Lions Club. While Edina's municipal ground water supply remains safe, there is ongoing concern and monitoring of impact from St. Louis Park's problem. Participation by the Health Department in the Hennepin County Computer Data Collection System to assist in code enforcement decisions and problem identification in the community's food service establishments. - Continuation of quarterly newsletter "Foodstuff" to restaurant owners. It has received compliments from both State and County Health Departments and together with the locally developed slide presentation serve as excellent educational tools for the food service industry. Of note this year was the City's ongoing effort in emergency preparedness. A drill was conducted on April 14, 1981. Exactly two months later a tornado did strike a portion of the City. The training did pay off to the City's benefit at the time, especially in'the area of traffic control. Physical Operations - The year 1981 began nicely for this area with a mild winter and little activity in winter street maintenance. However, June brought the tornado clean -up which cost $75,000 not including park damage. This easily ate up the winter- time savings. While adequate moisture through the summer limited the need for any water bans more restrictive than the mandated odd /even watering ban, continued moisture in November and December resulted in the heaviest snow i.n 24 hours in the metro area in 40 years, followed a few days later by perhaps the worst or at least Q'11 Corporate Report Page 1.0 the most untimely freezing rain /ice storm in 20 years. These events not only caused difficulty in the street maintenance area but also resulted in extensive debris clean -up and associated calls for service. While these events taxed Edina's ability to perform, the results proved a very adequate response by the City. Additional items of note in physical operations were: - Infiltration and inflow study design. - 10th year for the Recycling Center which turned somewhat of a profit due to higher paper prices. (Prices have subsequently fallen off and the Center will probably be at a break-'even just for direct operational expenses.) Exploration of solutions to Richfield's Adams Hill pond problem. - Utilization of a new sidewalk snowblower. Beginning of projected extensive rejuvination program of Edina's 34 parks commencing with work in Walnut Ridge, Weber and Beard. - Initial development work on upgrading Arneson Acres, including irrigation system in mall area and development of perennial flower garden. - Selection of Braemar Golf Course as one of the top fifty courses in the nation with a record of 51,000 rounds played. Improvements included upgrading of the 12th tee and the completion of the irrigation system. - Successful implementation of parttime water meter readers. Human Services - While 1981 had many items that could impact services locally, this area for the City was very much a status quo, mainly working on development of directions for the City based principally on reviews and recommendations of advisory committees on the South Hennepin Human Services Study. Other events included: - Initial utilization of the no -fault grievance process. - Ongoing success of the volunteer transportation program. - While the youth population in Edina seems to be declining, there has been a small increase in the number of participants in youth recreational programs indicating an increased percentage participation. SUMMARY While the uncertainty of the 1982 financial situation may cause concern and perhaps eventually make 1981 a good year by comparison, the staff of the City of Edina looks forward to a positive and productive year in serving our customers, the people of the City of Edina. -r 1t THE PAST FOUR YEARS On October 15, 1977, Edina appointed the first new City Manager in twenty -three years. While the intervening four years have gone quickly, I feel it fruitful to review some of the changes that have transpired as an assist in setting future direction. Many of the changes noted were implementation of ideas set out in 1977; others have been made to accomodate changing situations or have been forced upon us. Some ideas set out then still seem appropriate but need the proper time for implementation. The intent of this discussion is to give.you, as Council Members, a flavor.for these trends through a combination of quanitative and qualitative measures. In no way does it represent a comprehensive analysis of all the organizational trends,.but a look at the ones the staff feels are significant. This discussion will initially cover some general areas, followed by a review of individual department trends. - General Community Changes - The demand on the City organization is a function of the population and its associated demography and also of the developed land areas to which the City provides service. Below are listed some of the changes experienced by the City in the last several years: Measure (Year) Measure (Year) ' TPopu',ation 44,046 1970 46,073 1980 -Y io Land Area (Acres) 16.4 1886 16.4 1981 U' Parcels 15,629 1977 18,099 1981 Street Miles 188 1972 197 1981 Cul de Sacs 118 1972 154 1981 Sidewalk Miles Maintained 0 1972 14.93 1981 'a Sanitary Sewer Miles 166.7 1972 176 1981 Storm Sewer Miles 65.25 1972 73 1981 Water Plain Miles 170.24 1972 194 1981 Parks: Number 24 1970 34 1980 Acreage 987 1970 1,157 1980 Street Lights 254 1970 574 1980 However, these gross indicators do not give any indication as to the age, economic status and size of household. Alterations of these can impact demand on such diverse -1- programs as recreation, crime and emergency medical both real demand-usage and levels of desired service. Neither do these indicators speak to such things as the additional time plowing a cul de sac takes as compared to the same length of "connected" continuous street. It also does not speak to catch up maintenance needed for selected systems which when new were not maintained as frequently as they could have been. These numbers, however, - speak to a growth in at least the physical facilities to be maintained. Management - For the most part the quality of the management staff is superb and through the excellent working relationships that have been established, they function as an excellent team. Bi- weekly staff meetings and the Vertical Process "a ayemer± teams have been of assistance in this regard. While the VPM teams have not been active the past nine months, they may have business following the work of the new Executive Team. On balance this improved teamwork is evident in: 1) shorter Council meetings resulting from better staff preparation, 2) excellent service levels in light of increased demand and non - increasing resources, 3) positive organizational movement, and 4) harmonious relations within and among the people in the departments. Personnel - By 1977, the staff in Edina had grown to a total of 225 fulltime personnel. At the end of 1981 there were 209 positions with one slot unfilled. This resulted from a combination of elimination of some tasks, redistribution of duties and use of parttime personnel in selected areas. Turnover of fulltime staff has decreased each year.from a high of 20% in 1977 to 6.6% in 1981. Sampling parttime employment, the average number of parttimers in the summer (242) has increased as has the average number in winter (about 130), primarily because of a greater demand for year round parttimers in liquor, police, fire and water areas. Since 1977 the personnel portion of the budget has increased slightly from 68% to 71.9 %. In general, employees have not only retained but generally have increased their productivity. Physical Facilities - Since 1977, the City has not constructed any new facilities apart from completion of the parking ramp on 50th Street and the park shelter at Lewis Park, but has made additions and /or modifications to City Hall, Grandview -2- Liquor Store and the-Art Center. Energy savings modifications have been made to other City buildings, principally the Arena and the Public Works garage. In future years other energy modifications will need to be made to keep energy costs down as money is available. Under the vehicle management policy, the City's automobile fleet generally has been downsized, particularly in administrative vehicles; has become more fuel efficient (police squads have increased mileage by about 85% since the 1977 model year), and now is a more modern fleet that requires less maintenance. These same attempts are being made in the heavier vehicles such as trucks. However, improvement on a fleet wide basis in heavier equipment is a much longer process because of the longer expected life coupled with the larger capital costs. Overall, City facilities such as streets and sewers have increased 5% since 1972 with water lines and storm sewers having expanded by 12 %. This has lead to additional maintenance efforts, both reactive such as snowplowing and also periodic renewal efforts such as seal coating every 10 years. The cost of principal commodities for maintenance since 1977 has risen as - illustrated: Salt - 129% Concrete Sand - 77.9% Blacktop - 114% Cutback Asphalt - 189% While the City needs a set amount of seal coating materials for its annual program, increased costs at constant budget could lengthen the renewal program. In line with minimizing costs, attempts have been made to minimize the use .of salt by using the recommended 1:10 salt to sand mixture. Differing weather conditions, however, require different mixtures. Service Provisions - The staff is constantly reviewing the services that are delivered and the manner in which they are delivered to eliminate or reduce low demand, non - critical services and to improve methods of delivery of those retained. The most notable have been use of improved capital equipment and technologies to make individuals more productive and the use of parttime personnel where it is appropriate, together with improving the actual methods that accomplish those service deliveries. -3- Financial - Since 1977, revenues have increased an average of 7.9 °0. Property tax revenues have ranged -from a low of 57.5% of total revenues in 1979 to a high of 60.8%. in 1982 which is up marginally from the 59% in 1977. Intergovernmental revenues hit a high of 22.2% in' 1979 and a low of 18.4% for the 1982 budget year, with liquor averaging about 5.7 %. Edina's share of the property tax dollar has remained between 10 -11 %. Departmental Trends In addition to the general trends, other general specific changes and assignments are outlined below by department. Administration Cable TV franchising /construction - Increased H.R.A. activity - Recycling responsibilities Additional lonq range planning and coordination Finance More efficient operation in fiscally restrained times Billing for paramedic and false alarm charges - Assessing This is best illustrated by the following chart which shows the work load changes since the last increase in fulltime staff in 1967. Homesteaded Estimated Parcels Valued Properties Market Value Assessed Value 1967 11,593 9,366 448 Mil 160.8 Mil 1977 15,629(3J/0) 11,600(24%) 1,149 Mi1(156 %) 398.7 Mi1(.148 %) 1981 18,099(16%) 13,700(18%) 2,008 Mil(75 %) 558.5 Mil(4O %) Community Development While conventional wisdom would seem to dictate a decrease in amount of work in this area because of the mature nature of the community's development, additional tasks have been added to the workload, although there has been a.decrease in personnel in the departments related to community development. Planning.- While the number of land developments has subsided since the mid - seventies, remaining development plans have, on an individual basis, substantially -4- increased staff time demands because of the typically difficult nature of the remaining undeveloped land. In addition, Planning has had these task increases since 1977: - Comprehensive Plan development and administration Doubling the number of Board of Appeals meetings - Introduction of Findings of Fact in denial of selected proposals - Heritage Preservation responsibilities - Winfield /Laukka /Mixed Use Development Engineering - There has been a decrease in some aspects of the department's tasks with.a corresponding reduction of staff. However, there has been an increase in new task areas including renewal maintenance review. These include: Cable television construction supervision Increased monthly water samples - Work on Comprehensive Plan - Railroad crossing annual inspection Required State Aid:street traffic counts Annual bridge inspections _ -__ -- - Ongoing five year State Aid street plan development Metropolitan involvement in selected areas to protect City's interest Building - With the shift in the character of the community from development to redevelopment, the department has: Increased the number of permits issued and inspected - Entered energy savings promotion and energy code compliance - Additional meetings of the Board of Building Construction Appeals as the Energy Advisory Board, plus increase in number of appeals Public Safety In a maturing community, public safety demands often increase beyond the nominal increase in population and building development. In Edina this has been evident in a general increase in calls for police services; increases that roughly correspond to the national and locally reported crime statistics, and increases in the age of the population which particularily affects emergency medical demands and the general aging -5- of facilities that can affect the number of serious fires and the maintenance of safe health practices. In light of increased demands there has not been a noticable decrease in emergency response. Police - (See Appendix A for chances since 1940.) In the past four years the following changes have been noted: - Reduced number of sworn officers from 46 to 43 - Calls for service increased - Police Officer Standards and Training Mandates - Increased security alarm administration - Research and development of difficult ordinances from operational viewpoint - Bicycle Safety Program Suburban Police Recruitment System - Parking permit issuance - .Traffic safety administration - Reduced involvement in police /school liaison and crime prevention Fire - After substantial increases in calls in the mid - seventies due principally to emergency medical calls, demand has stabilized. - Average annual fire losses in terms of current dollars has remained constant - Average annual fire loss has declined in te;.ms of constant dollars. This is most noticable in inspected properties. (The primary benefit of regular inspections is in occupant awareness and education rather than enforcement.) Uninspected properties, which comprise 75% of the market value, have shown little change. Successful implementation and operation of volunteer program. Once out- fitted, the average cost of 15 volunteers is about half that of one fulltime firefighter when used as a supplement to the on -duty staff. Physical Operations In relation to the large growth of the community, coupled with the attendant growth in streets, sewer, water and storm sewer lines and maintained parks; the addition of one individual in 10 years is minimal by comparision. Public Works - Increased sidewalk maintenance -6- - Parking ramp maintenance at 50th Street Increased maintenance of aging facilities, coupled with better preventive maintenance to reduce future cost Improved productivity in mechanics area resulting in less need for contract work A fourfold increase in sewer cleaning due in part to better equipment - Sharing of custodian to reduce public works costs - More flexibility to shift to high demand areas and more effective use of parttime personnel - Energy savings in public works building and community street lighting - Increase in cost of petroleum products for fuel and street maintenance sealcoating Increase in the time it takes to plow an average snowfall Parks - The amount of acres to be maintained has continued to increase, both in developed parks and median maintenance. - Decrease in number of warming house rinks from 16 to 12 - Increased energy savings at Braemar Arena - Increase in.rounds played at Braemar Golf Course Recycling - While turning a substantial profit in 1981 after ten years, recycling probably will return to a breakeven "community service" in 1982 as paper has gone from $20 /ton to $5 -6 /ton within a few months. Human Services This area has been and continues to be in a state of flux with the City looking to the recommendations to Council as a result of the South Hennepin Services Study. Recreation - Growth in adult activities includina softball and the Art Center complex - Higher participation rate in decreasing sized youth age groups - Maintenance of excellent program levels by the various volunteer boards with the addition of a board for bandy - Addition of volunteer transportation program which has increased utilization of senior citizen programming -7- Human Relations - Expanded role in advising Council on selected issues, including Storefront/ Youth Action and review of South Hennepin Human Services Study - Addition of no -fault grievance process Public Health Services - Increased utilization of services, particularily home health visits - Possible cutback in programs due to State funding limitations SUMMARY The above narrative is presented to help you, as Council Members, understand that the organization.can pare back only so much without affecting programs, morale and productivity. It is my feeling that the City has reached the point that if further cuts are to be made the Council will need to do so as a conscious decision in terms of cutting programs, not just as a general cutback. * Official estimates. ** Extrapolations. # Sept., 1966 - Morningside was added with Edina's population. -9- NO. OF PERSONNEL PER 1000 .513 .821 .702 .702 ..702 .736 .708 .707 .765 .777 .711 .795 .864 .933 .940 .918 .954 .924 .910 .878 .879 .921 .912 POPULATION - FORCE SIZE - NO. OF CALLS NO. OF TOTAL UNIFORMED CLERICAL NO. OF UNMARKED YEAR POPULATION FORCE OFFICERS DETECTIVES DISPATCHERS PERSONNEL ACO CSO SQUADS VEHICLES CALLS 1940 5,955 3 3 0 1 1950 9,744 8 8 0 2 1960 28,501 20 17 2 3 4 1961 29,860 ** 21 18 2 3 5 1962 31,220 ** 22 19 2 3 6 1963 32,580 ** 24 21 3 3 6 1964 33,940 ** 24 20 3 3 6 1965 35,302 ** 27 23 3 3 2 7 19.66 37,283* 29 24 4 3 2 7 1967 40,813# 29 23 5 3 2 7 1968 42,800* 33 26 6 3 2 7 9,030 1969 43,500 35 28 6 3 2 8 8,861 1970 44,046 38 30 7 3 2 9 9,119 1971 45,000 42 33 8 3 2 9 8,354 1972 45,712 43 33 9 3 3 10 9 9,930 1973 47,930 44 34 9 4 32 1 10 9 10,658 1974 49,187: 46 36 9 4 3 1 10 9 12,522 1975 49,736 46 37 8 5 3 1 10 11 12,631 1976 48,325 44 36 8 5 3 1 9 14 12,557 1977 48,960 43 36 6 5 3 1 10 15 15,028 1978 48,920 43 34 8 5 3 1 10 13 15,569 1979 46,700 43 36 6 3 3 1 4 12 .12 16,791 1980 46,073 42 35 6 2 3 1 8 13 10 17,022 1981 42 35 6 2 3 1 12 13 11 17,899 1982 1983 1984 1985 50.000? * Official estimates. ** Extrapolations. # Sept., 1966 - Morningside was added with Edina's population. -9- NO. OF PERSONNEL PER 1000 .513 .821 .702 .702 ..702 .736 .708 .707 .765 .777 .711 .795 .864 .933 .940 .918 .954 .924 .910 .878 .879 .921 .912 % I GENERAL MANAGEMENT PHILOSOPHY CITY OF EDINA Purpose These next pages are intended to give you, as Council Members, an outline of the current management directicn for Edina. If there is a different direction the Council feels should be taken, this can then serve as a basis for those needed discussions. Assumptions The direction set out below assumes that Edina is a fully developed community and that the expansion and /or contraction of the organization is going to be based on alterations of the following: - Change in the types and /or levels of services provided by Council policy. - Change in demand for services provided by an increase /decrease in utilization by the public. (This utilization change results from a number of reasons, including population density change, demographics, aging of physical plant, etc.) - Changes in productivity in order to deliver services through alteration of the delivery system. Changes in degree of local regulation (as enforcement equates to a service provided). Functions of Municipal Corporations Municipal corporations have authority to perform three distinct yet related functions: 1) The power to regulate on a specific basis the social conduct of those within the community's boundaries through its ordinance powers. 2) The provision of services the municipality selects to provide to those in the community. 3) Income transfer which is related to the first through taxation and the second through service provision. This is done to the extent that the services received by an individual or property do not equate in value to the money contributed by that individual or property. (This is more pronounced for the school district and other "higher" levels of government.) (Community develop- -1- ment activities, while not direct income transfers, do constitute a transfer in the development /redevelopment of businesses and /or residences with resources apart from the market place such as H.R.A.) Many services at the local level, particularily in public safety, can and perhaps correctly are viewed as an insurance concept - spreading the risk, rather than as income transfer. Both the "non- private business" functions (income transfer and regulation) of a municipal corporation translate into service provision as either inputs or outputs of the organization's production equation. Any income transfer is the outcome of a conscious decision as to how to finance either specific or general services. That decision becomes a part of the input /resources side. On the other hand, regulation directly effects the output side as it .equates to an altered demand for the production involved by the City in the development and enforcement of those regulations. Corporate Management /City of Edina As has been stated several times, the overall goal of the City of Edina is the cost - effective delivery of services to the organization's customers - the people who live, work, shop and /or visit Edina. In working toward this goal, the-philosophies generally outlined below have been followed. General Organization Set -Up - In any organization, resources are split between those put into direct production and those put into functions necessary to that production. These include administration and overhead; research and development; and marketing. The current set -up is designed to minimize overhead structure and concentrate on needed service production. This is done by retaining only a minimal command /control set -up while at the same time having a framework that attempts to maximize use of the employee's ideas, motivation and productivity. Now a look at those individual components starting first with the related production functions. Related Functions Marketing - While the geographical boundaries of the corporation's markets are fixed, the demand within those boundaries can and does fluctuate for a wide variety of reasons as mentioned earlier. -2- Edina offers a basic line of services to the community and traditionally has not altered its product line radically by exploring new or expanded "product lines" as has been done by some municipalities. Additionally, Edina has spent little in the areas of: a) market research to determine potential demand and /or "competition ", (the South Hennepin Human Services Study is an example of an exception to determine other providers); b) competitive marketing of its services (with the exception of newsletters and Park Department calendars); or c) economic development to increase particularily the commercial /industrial tax base. The extent of marketing has been limited to that needed to encourage utilization of services by those for whom they are intended. Minimization of expense in this area is prudent for an organization such as Edina although it needs to determine changing demand trends so its production is not out of sync with its markets. Research and Development - Closely allied with marketing and exploration of potential product line markets is the actual development and delivery of new or inno- vative products or services, together with research and development of new production methods. In both instances there has been a traditional reticence by Edina to explore new areas because of costs associated with the risk and little impetus to enter such areas. (Other municipalities have entered new areas and have been dependent on grants for such development. Edina has traditionally avoided doing this.) While avoiding the expenditure for actual research and development, Edina has been a leader in incorporating both proven production methods that are applicable to its situation and also in implementing new services that have had minimal front end costs when the Council has so directed. This posture is not uncommon for a stable, production oriented organization. It avoids the front end costs of heavy research and development and does not lose any "competitive edge" for the City (which is the principal reason organizations have for research and development expenditures) while at the same time not falling behind in methods to improve productivity. Administration and Overhead - As indicated earlier, administration and overhead -3- has been kept to the minimum needed to efficiently carry out the basic organization operation and yet remain effective by staying abreast of needed changes. Market research, research and development costs, extensive command and control, and administration are all information related. Minimization of these expenses reflect the City management's attempt to limit information development and analysis to that needed to make the required decisions. The competence of the employees and the trust that has been developed within the organization has done much to minimize expenditures in this area and therefore reduces organizational overhead. Production Function This is the heart of the organization and rightly comprises the largest portion of the personnel and expenditures. While demand can fluctuate, production levels are set to handle the average expected demand (as determined historically) leaving the flexibility to shift resources from area to area when fluctuation in demands occurs. Production is not set for the maximum demand. The production equation as in all organizations is composed of four "inputs ": capital, human resources, materials and production methods, as outlined below. Capital - The City's capital breaks down into a) the physical plant, including not only its buildings but also the streets, parks, utility systems, etc., and b) its large cost of equipment such as vehicles, machinery, technologies, etc. Since the majority of the expansion of these facilities is completed, expenditures are mainly for capital replacement. Expenditures for capital replacement are attempted to be made at the point where it is cheaper to replace than to maintain. (See Time article attached.) The bulk of requested new capital expenditures apart from replacement will be to institute methods to improve productivity which will trade off capital expenditures in the short term for capital, labor and /or material savings in the long run. Human Resources - Presently it is the general philosophy that for Edina it is more cost effective to attract, develop and retain good caliber personnel than to deal with the problems associated with poor caliber, poorly motivated personnel with a high -4- turnover rate. Retention of good caliber personnel is not solely dependent on com- pensation, although that is a factor and must be competitive, but also depends on the organizational set -up, associated motivaton, etc. Retention in this organization is generally cost effective as turnover entails training which does not add to the production output. It is felt that the largest motivational factor in this area is the positive attitudes which are influenced by good leadership as opposed to negative motivation. Negative motivational structures generally require greater overhead /organizational structures to obtain the tightened command and control needed in such an environment. In addition to fulltimz personnel, the City has made a large commitment to effectively utilize parttime /paid and volunteer human resources in production of community services, providing a nucleus of paid staff where needed to properly utilize this resource. Materials - In a heavily service production- oriented organization, the costs of raw materials are not as large a factor (5 %). Edina does, however, continue to utilize those that give the best unit cost overall. Production Methods - Tying together capital, human resources and materials to attain the product are the methods utilized to deliver the services. When new cost saving methods, which sometimes involve capital expenditure, are developed and it is determined they are relevent they are instituted. However, there is a prudent reluct- ance to jump from one new method to the next as the useful life of recently implemented methods and associated cost savings may not have been realized. As in any production equation, however, as the relative price factors change, methods of delivery /production need to be explored. (Examples include changes in implementation of the use of part paid personnel in Police and Fire.) Summary of Corporate Management Philosophy The general thread through the previous discussion is that the City of Edina is an organization which firmly believes in a moderate corporate direction; reaping the benefits of stability but at the same time changing when it is prudent to do so. With such a direction it is possible to limit "overhead" to that which is prudent to -5- carry out needed production. To retain the integrity of this philosophy requires both the concurrence and support of the Council. Should there be a difference in the philosophy outlined above and the direction you see needs to be taken, please contact me to discuss specifics. MS "Productivity and Efficiency In The Public Sector" Postscript Just a word on productivity and efficiency in government. In general, govermental entities have, as mentioned in the General Management Philosophy, three general functions: - Regulation - Service provision - Income transfer Claims that the public sector is inefficient is a meaningless statement without specific references. Possible examples of "inefficiency" in the government are: - Improper regulation which can create drags on efficiency of both the public and private sector. (If all regulation were inefficient or undesirable there would be no need for the power or utilization of the function.) - Taxation for services and overhead can cause a diversion of resources from distribution and production that would normally be found. This may at least be considered economic inefficiency although it may be conscious policy by the municipal governing board. - Inefficiency in service delivery is not because people who work for government are individually any less productive or motivated than those in the private section, but rather: - It is either work such as research, information development or production that is not used or is not needed; or is work to support the political portion of the organization; or is more than a normal overhead found for a board of directors. - The organization is structured to hamper productivity. - The economics of production in some areas cannot be achieved because of fixed "market" boundaries. - Poor leadership by the board of directors and /or executive management turns the idea of lazy workers into a self - fullfilling prophesy. -7- As for bankruptcy of governmental organizations, this is due to a failure to needed commitments in the present by a) not funding capital investments when it is most cost effective to do so, b) by not fully funding pension liabilities as they accrue, or c) continuous borrowing to fund current operating expenses. In parting, the Council has a decided impact on the ability to. manage and on the efficiency of the organization; particularly in its regulation posture, its desire for information and research, its measure of trust in the organization, and the direction i,t sets for the organization. 11 IN Z N Mh low* OMW L1020 DOM C1 L�' )U U M=Da Ag�r, J E�' V L�� a - Q LOW -3 LJ Neglected streets and sewers, plus aged bridges and byways, hinder growth ro the rusting spans of its once r proud b idges to the leaking sewers -eets, America is struc- beneath its sti turally unsound. Ii ighways are crumbling. Avenues are cracking. Trains jump their worn-out tracks. Coal ships languish out- side overburdened ports. While the U.S. has the technological prowess to blast a magnificent space shuttle into orbit and land it gently back on earth, it has failed to care properly for its most important public works. One morning two weeks ago, some New York City commuters liviniz north of Manhattan awoke to a radio traffic bul- letin even more dismal than usual. Be- cause of a turbine breakdown at a Con- rail power station, their trains into the city would be half an hour behind sched- ule. Fearing that the delays could be much longer, thousands of travelers took to their cars. But just as rush hour reached its bumper-to-bumper peak, a 4-sq.-ft. sec- tion of cement roadbed in the southbound lane of Manhattan's elevated West Side Highway suddenly collapsed and tumbled t th ground buclow. Whilc a rcpair crcw to IIC patched the hole wiL' metal plate, traf- fic backed up for three hours. Said one fa- tigued driver who reached his office at noon: "It's like Berlin after the war. Noth- ing works." Every school-day morning on the Lil- ly Bridge near Altoona, Pa., children go through a poignant ritual that matches the plight of those commuters. A yellow bus parks just short of the decrepit 57- year-old structure, the doors swing open and its young passengers troop across the bridge on foot. Then the driver follows —slowly—to pick them up again, know- ing that even if the bridge gives way under the weight of the bus the children will be safe. These conditions are neither isolated nor. unrelated. Urban planners and a growing number of politicians are wor- ried about the bridges and byways, streets and sewers that make up the infra-struc- lure of the U.S. economy. After decades of neglect by all levels of government, much of that foundation is now in an ad- vanced state of decay. During the lean years of the 1970s, many financially strapped states and de- pressed older cities were hard put to find money either for maintenance or for new construction. With teachers, vvelfare re- cipients, garbage collectors and senior cit- izens all expecting higher salaries or more services, government priorities tipped to- ward meeting social demands. Since 1965, the percentage of the U.S.'s gross na- tional product devoted to investment in public works has dropped from 3.6% to 1.7%. a 52.8% decline. Like a pensioner gradually spending his lifetime's savings, the U.S. is living off its public capital, and little by little exhausting it. This situation is felt most acutely in the declining cities of the Northeast and Midwest. and the old Southern river towns like New Orleans. But tight budgets are also threatening the infrastructure in the VVest. T he effCct of C-al'11 Ornia�s Proposli- tion 13. which slashed property taxes by an average of 57%, has already shown up in the deteriorating condition of that state's streets and highways. Ronald Reagan has presented Con- gress with a program to renew American busLness by encouraging savings and pro- moting private investment, but the pro- ductivity of business rests on the quality of its infrastructure—its network of roads, State Planning Agencies in a -disturbing new report entitled Anierica in Ruins: "The deteriorated condition of basic fa- cilities that underpin the economy will prove a critical bottleneck to national eco- nomic renewal during this decade unless we can find ways to finance public works." The worst infrastructure ills: Highways. In 1956 Congress launched what President Dwight Eisenhower pro- claimed to be "the greatest public works interstate rugh- way system. Now in its silver anniversary year, the 42,500-mi. network is only 94% finished. but 8,000 miles of pavement are so badly worn that they must be rebuilt. Though the U.S. Government has picked up 90% of the $79 billion tab for inter- state construction so far, it has given the states almost no money for maintenance, and state legislatures have been slow to provide funds to keep up the highways. �71 ZT Heavy traffic on the rusted and crumbled West Side Highway in New York City rails. ports and other vital public services. If trains and trucks are slowed by poor tracks and roads, farmers and manufac- tUrers cannot get their products to mar- ket on time, and the delay shows up in the prices of everything from soybeans to stereo sets. If city sewers and subways are already strained beyond their limits, com- panics may be reluctant to expand and hire new workers, since they may not be able to get to work. Warns the Council of To make matters worse, Congress in 1974 lifted the truck weight limit on federal highways from 73,280 tbs. to a concrete- crushing 80.000 tbs. On part of Interstate 90 near Erie, Ila., motorists bouncing over ripples and dodging chuckholes wisely ig- nore the posted speed limit of 55 m.p.h. in favor of a more sensible 30 m.p.h. Secondary roads off the interstates are often in much worse shape. In eastern Kentucky, where pockmarked roads suf- 46 TIME, APRIL 27,1981 T I iij �71 ZT Heavy traffic on the rusted and crumbled West Side Highway in New York City rails. ports and other vital public services. If trains and trucks are slowed by poor tracks and roads, farmers and manufac- tUrers cannot get their products to mar- ket on time, and the delay shows up in the prices of everything from soybeans to stereo sets. If city sewers and subways are already strained beyond their limits, com- panics may be reluctant to expand and hire new workers, since they may not be able to get to work. Warns the Council of To make matters worse, Congress in 1974 lifted the truck weight limit on federal highways from 73,280 tbs. to a concrete- crushing 80.000 tbs. On part of Interstate 90 near Erie, Ila., motorists bouncing over ripples and dodging chuckholes wisely ig- nore the posted speed limit of 55 m.p.h. in favor of a more sensible 30 m.p.h. Secondary roads off the interstates are often in much worse shape. In eastern Kentucky, where pockmarked roads suf- 46 TIME, APRIL 27,1981 S i fer a relentless pounding from overloaded coal trucks, drivers bitterly complain that most of their tires blow out before they wear out. The main road between Baton Rouge and Shreveport. La., is so bumpy that freight haulers avoid it by going some 130 miles out of their way through eastern Texas. Says Trucker John Wooley, a for- mer rodeo cowboy: "That road just tears a rig apart. It's like riding a bucking bron- co." In California, Highway 101 outside San Jose is full of holes. Says Jon Carroll. a senior editor at New West magazine: "There are many blood alleys in Califor- nia, but this one leads the parade. An ab- solutely terrifying driving experience." Most states rely upon gasoline taxes for maintenance funds but, as the surg- ing price of fuel has forced people to drive less, those revenues have decreased. In Ohio, for example, state officials predict that their gas tax receipts will be $15 mil- lion less this year than in 1980. Mean- while, the cost of rebuilding a road is 166% higher than it was only a decade ago. Inevitably, repairs are put off. Maine's original 1980 budget called for re- pavirg 1,250 miles of highway; because of inflation and a decline in revenues. only 524 miles were actually restored. Legislators in many states. including South Dakota, Virginia and Alabama, have recently admitted their problems and hiked gasoline taxes by as much as 4c per gal. Other states will surely fol- low. Says David Finley. of the Ohio de- 0 rioration are still in use. More than half of Louisiana's 14,800 bridges do not meet federal and state standards. Some of the nation's worst bridges are also heavily traveled ones. In River Rouge, Mich., the Miller Road Bridge links a huge Ford Mo- tor factory with Interstate 94. A city en- gineer describes it as "utterly dangerous and in bad need of repair." The cost of fixing U.S. bridges could run as high as $33 billion, but states and cities can spend just a small fraction of that amount. Federal aid for bridge re- pairs is only $1.3 billion this year. Ad- mits Daniel Nines, an engineer for the State of Michigan: "Bridges are falling down faster than we can rebuild them." City Streets, Sewers and Subways. Old age is catching up with many American cities. Cleveland's antiquated sewer sys- tem overflows during heavy rains. Says City Budget Director Phillip Allen: "We always have flooded basements through- out Cleveland. It wouldn't be so bad if it were just storm water, but it's combined with sewage water." In St. Louis, about 151% Of the ."ter `supply leaks Out Of the city's aged pipes. In Newark; 90% of the streets need patching, resurfacing or com- plete reconstruction. New York City is in a class by it- self. Last year the metropolis had 547 water -main breaks that cost $60 million to repair. Potholes and other road de- fects prompted 1;941 nronerty damage ROGER ALLEN GREGG - Coal ships pick up their cargo from the overburdened terminals at Hampton Roads, Va. x4 partment of transportation: "We haven't raised our gas taxes in more than two dec- ades, but we will have to now. The con- dition of the roads has me very worried." Bridges. One of every five bridges in the U.S. needs major rehabilitation. Fortu- nately, those on the brink of breakdown are usually closed to traffic. In Ohio, 605 bridges have been blocked off, but 4,000 others that show ominous signs of dete- claims totaling $20.9 million. The ram- shackle subway system is notoriously unreliable. 'three weeks ago, a train bound for Manhattan from Queens broke down, stranding 1,500 passengers in a tunnel under the East River for more than an hour. Concerned New York busi- nessmen are banding together to lobby for change. One group called Business for Mass Transit has taken advertise - ments in the New York TinEes to de- 47 id .`t E rt F 't F 4 t c t 4 t R i A spectacular derailment at Auburndale, Fla. Crossing a dccrcpit bridge rear Altoona, Pa. 66� Iii• c��j _= -__- ` g i S i fer a relentless pounding from overloaded coal trucks, drivers bitterly complain that most of their tires blow out before they wear out. The main road between Baton Rouge and Shreveport. La., is so bumpy that freight haulers avoid it by going some 130 miles out of their way through eastern Texas. Says Trucker John Wooley, a for- mer rodeo cowboy: "That road just tears a rig apart. It's like riding a bucking bron- co." In California, Highway 101 outside San Jose is full of holes. Says Jon Carroll. a senior editor at New West magazine: "There are many blood alleys in Califor- nia, but this one leads the parade. An ab- solutely terrifying driving experience." Most states rely upon gasoline taxes for maintenance funds but, as the surg- ing price of fuel has forced people to drive less, those revenues have decreased. In Ohio, for example, state officials predict that their gas tax receipts will be $15 mil- lion less this year than in 1980. Mean- while, the cost of rebuilding a road is 166% higher than it was only a decade ago. Inevitably, repairs are put off. Maine's original 1980 budget called for re- pavirg 1,250 miles of highway; because of inflation and a decline in revenues. only 524 miles were actually restored. Legislators in many states. including South Dakota, Virginia and Alabama, have recently admitted their problems and hiked gasoline taxes by as much as 4c per gal. Other states will surely fol- low. Says David Finley. of the Ohio de- 0 rioration are still in use. More than half of Louisiana's 14,800 bridges do not meet federal and state standards. Some of the nation's worst bridges are also heavily traveled ones. In River Rouge, Mich., the Miller Road Bridge links a huge Ford Mo- tor factory with Interstate 94. A city en- gineer describes it as "utterly dangerous and in bad need of repair." The cost of fixing U.S. bridges could run as high as $33 billion, but states and cities can spend just a small fraction of that amount. Federal aid for bridge re- pairs is only $1.3 billion this year. Ad- mits Daniel Nines, an engineer for the State of Michigan: "Bridges are falling down faster than we can rebuild them." City Streets, Sewers and Subways. Old age is catching up with many American cities. Cleveland's antiquated sewer sys- tem overflows during heavy rains. Says City Budget Director Phillip Allen: "We always have flooded basements through- out Cleveland. It wouldn't be so bad if it were just storm water, but it's combined with sewage water." In St. Louis, about 151% Of the ."ter `supply leaks Out Of the city's aged pipes. In Newark; 90% of the streets need patching, resurfacing or com- plete reconstruction. New York City is in a class by it- self. Last year the metropolis had 547 water -main breaks that cost $60 million to repair. Potholes and other road de- fects prompted 1;941 nronerty damage ROGER ALLEN GREGG - Coal ships pick up their cargo from the overburdened terminals at Hampton Roads, Va. x4 partment of transportation: "We haven't raised our gas taxes in more than two dec- ades, but we will have to now. The con- dition of the roads has me very worried." Bridges. One of every five bridges in the U.S. needs major rehabilitation. Fortu- nately, those on the brink of breakdown are usually closed to traffic. In Ohio, 605 bridges have been blocked off, but 4,000 others that show ominous signs of dete- claims totaling $20.9 million. The ram- shackle subway system is notoriously unreliable. 'three weeks ago, a train bound for Manhattan from Queens broke down, stranding 1,500 passengers in a tunnel under the East River for more than an hour. Concerned New York busi- nessmen are banding together to lobby for change. One group called Business for Mass Transit has taken advertise - ments in the New York TinEes to de- 47 F F 4 t c t t S i fer a relentless pounding from overloaded coal trucks, drivers bitterly complain that most of their tires blow out before they wear out. The main road between Baton Rouge and Shreveport. La., is so bumpy that freight haulers avoid it by going some 130 miles out of their way through eastern Texas. Says Trucker John Wooley, a for- mer rodeo cowboy: "That road just tears a rig apart. It's like riding a bucking bron- co." In California, Highway 101 outside San Jose is full of holes. Says Jon Carroll. a senior editor at New West magazine: "There are many blood alleys in Califor- nia, but this one leads the parade. An ab- solutely terrifying driving experience." Most states rely upon gasoline taxes for maintenance funds but, as the surg- ing price of fuel has forced people to drive less, those revenues have decreased. In Ohio, for example, state officials predict that their gas tax receipts will be $15 mil- lion less this year than in 1980. Mean- while, the cost of rebuilding a road is 166% higher than it was only a decade ago. Inevitably, repairs are put off. Maine's original 1980 budget called for re- pavirg 1,250 miles of highway; because of inflation and a decline in revenues. only 524 miles were actually restored. Legislators in many states. including South Dakota, Virginia and Alabama, have recently admitted their problems and hiked gasoline taxes by as much as 4c per gal. Other states will surely fol- low. Says David Finley. of the Ohio de- 0 rioration are still in use. More than half of Louisiana's 14,800 bridges do not meet federal and state standards. Some of the nation's worst bridges are also heavily traveled ones. In River Rouge, Mich., the Miller Road Bridge links a huge Ford Mo- tor factory with Interstate 94. A city en- gineer describes it as "utterly dangerous and in bad need of repair." The cost of fixing U.S. bridges could run as high as $33 billion, but states and cities can spend just a small fraction of that amount. Federal aid for bridge re- pairs is only $1.3 billion this year. Ad- mits Daniel Nines, an engineer for the State of Michigan: "Bridges are falling down faster than we can rebuild them." City Streets, Sewers and Subways. Old age is catching up with many American cities. Cleveland's antiquated sewer sys- tem overflows during heavy rains. Says City Budget Director Phillip Allen: "We always have flooded basements through- out Cleveland. It wouldn't be so bad if it were just storm water, but it's combined with sewage water." In St. Louis, about 151% Of the ."ter `supply leaks Out Of the city's aged pipes. In Newark; 90% of the streets need patching, resurfacing or com- plete reconstruction. New York City is in a class by it- self. Last year the metropolis had 547 water -main breaks that cost $60 million to repair. Potholes and other road de- fects prompted 1;941 nronerty damage ROGER ALLEN GREGG - Coal ships pick up their cargo from the overburdened terminals at Hampton Roads, Va. x4 partment of transportation: "We haven't raised our gas taxes in more than two dec- ades, but we will have to now. The con- dition of the roads has me very worried." Bridges. One of every five bridges in the U.S. needs major rehabilitation. Fortu- nately, those on the brink of breakdown are usually closed to traffic. In Ohio, 605 bridges have been blocked off, but 4,000 others that show ominous signs of dete- claims totaling $20.9 million. The ram- shackle subway system is notoriously unreliable. 'three weeks ago, a train bound for Manhattan from Queens broke down, stranding 1,500 passengers in a tunnel under the East River for more than an hour. Concerned New York busi- nessmen are banding together to lobby for change. One group called Business for Mass Transit has taken advertise - ments in the New York TinEes to de- 47 liver a warning to city and state of- ficials: "The impending collapse of our subways, bus lines and commuter rail- roads threatens our businesses and the jobs of millions of workers." The cost of reversing this kind of ur- ban decay is too high for many city trea- suries. Officials in New Orleans believe that it would take $200 million to repair the city's crumbling streets, but only $32 million is now available for the job. One estimate of the cost of modernizing Balti- more's sewer system comes to $1,880 for every man, woman and child in the city. With municipal budgets under severe strain, some cities are risking even fur- ther deterioration. Since 1973, Buffalo has reduced the number of its water - system workers by more than 40 %. In the past two years, Boston has cut its mass - transit engineering and maintenance work force by 16 %. Oakland, Calif., has trimmed its street- repair crew by 18 %. Some elected officials have concluded, however, that restoring infrastructure can be good politics. Cleveland Mayor George Voinovich persuaded voters to approve a 25% hike in their income taxes by prom- ising that half of the money would go for capital improvements, including bridge and street repair. New York City now uses about 50% of its capital budget for re- habilitation rather than new construction, Economy ac Bus"suess compared with just over 20% in 1970. Says Mayor Edward Koch: "Discussion at a city council meeting will not be about what building we're putting up, but whether sewer A will be finished before sewer B. We're not interested in the old political system of show them something on top if what you need is something below ground." Railroads and Ports. Spending for train and track maintenance and new equip- ment has more than doubled, from $7.1 billion in 1975 to $14.9 billion last year, and once deplorable conditions are im- proving. But 6,468 trains were still de- railed in 1980. These incidents caused property damages amounting to more than $200 million. The most serious problems are on branch lines, which are often unprofit- able. In many areas of Kansas and Il- linois, grain shipments creep along on trains that can safely travel only at 10 m.p.h. Overall, an estimated 30% of total U.S. track mileage needs major repair. Efforts to rebuild the railroads should be buoyed by the deregulation law passed by Congress last year, which directed the Interstate Commerce Commission to give the railroads more freedom to raise their freight rates. Rail executives hope that they can make many branch lines prof- (:aft Thy HU Ulf e .. ---,0 .. _..� o — a-_ -_ - Fq hen it comes to smooth efficiency, neither Rome un- l� der Mussolini nor Richard Daley's Chicago could out- shine modern day Dallas. Potholes are filled within three days-, a clogged sewer is usually cleared within 40 min- utes; streets, sidewalks, bridges and water and sanitation systems are kept in superb con- itable and restore their tracks and road- beds. Otherwise, they argue, the lines should simply be abandoned. The railroads are counting on future profits from a boom in coal transport now that nations around the world are seek- ing a substitute for high - priced oil. But the U.S. will never fulfill its potential as a coal exporter until action is taken to up- grade and expand its ports. Hampton Roads, Va., is the nation's busiest coal port and also its most noto- rious bottleneck. On an average day be- fore the start of the current coal miners' strike, an armada of 150 ships was an- chored offshore. Reason: the two loading terminals are so inadequate that the col- liers usually must wait in line a month or more to pick up their cargoes. Coal companies are planning to build new terminals at Hampton Roads and other ports, but a more serious problem will remain. No Eastern or Gulf Coast harbor is deep enough to accommodate so- called supercolliers: giant vessels that can carry more than 125,uu0 tons of coal, which is at least twice the load of stan- dard ships. Many American ports, inciud- ing Hampton Roads, Baltimore, New Or- leans and Mobile, need to be dredged to the 55 -ft. depth required by the supercol- liers. But congressional appropriations for these projects have been held up for years, tern. Dallas keeps a computerized inventory of all street c„r_f;_ices, curbs, cutters; sidewalks and stop lights. Water - breaks and cracks in 'he pavement are rinc- --usly re- corded, as are the costs of repairing them. The city, for example, annually cleans out 26% of its sewers, and trouble - prone stretches of underground pipe are inspected by sub- terranean television cameras. Equally important is Dallas' system of user fees, which !.14RN PERLSIEIN specifically charge people for ser- dition. Indeed, the Urban in- ' r - .� "^ ? ' - ., "` Wh streets areim roved that Dallas' management of its public facilities could stand as a model for large cities all over the U.S. While many other towns and cities are slowly crumbling, Dal- las has established its reputation as a city that works. The reasons include a favorable climate, a booming local economy, an ency- 1 clopedic computerized malntC_ nance schedule, and a govern- ment that abhors the idea of y1ctS. en p fnr in- ctanrP the nc+nnlP w nwn houses or businesses on them are assessed part of the cost. { Another major reason for tf Dallas' success is its tradition of joint private - public ventures. The t I city and Oilman Ray Hunt, the l i hail brother of Siiver Baron Bun- ker Hunt, combined to develop a hotel and sports complex in a section of Daiias' west side that had been stagnant for 50 years. Hunt and the city shared the cost of building new roads and deferring scheduled repairs to Hunt paid for railroad under- a'� =- passes in the area. keep its current expenses low. 1n Lam_- I�----- '-`-'M._ - -- _--- --- .-- - -__'_ — ___ . - p: ,_ . addition, it is the largest city in Dallas digs anew sewer to prevent overloads Dallas, of course, has its share the U.S. run by a professional ad- minisi rator answering to the city council. In most of the larg- est cities, the day -to -day operations are in the hands of the mayor. Says Dallas City Manager George Schrader: "A city government is like GM of U.S. Steel, and the infrastructure is our assembly line." The city executes its maintenance work with a preci- sion similar to that of (tic Dallas Cowboys on a pass pat- of urban shortcomings. Its mass - transit system, which consists of only 490 buses, is plainly inadequate, and a referendum on a new public- transpor- tation system may be held soon. But, as City Councilman Lee Simpson says, "we've put our infrastructure in the hands of high - quality professionals, and our citizens have little tolerance for failure. That's why any weaknesses stand out.:' M, 48 T1ME, APRIL 27, 1981 J STATE. OF MMINLSOTA ) COl1 ;TY OF H EtI ?,'r,P I N ) SS CITY OF EDINA ) CEPTIFICATE OF POSTING NOTICE I, the undersir.ned duly appointed and actinr Police Patrolnan for the City of Edina, County of Hennepin. State of idinnesot:a, do hereby certify that I have, this date, posted copies of the attached and fo�egoin�; on three official City Bulletin To a - as�follo :7� �.City H all. 41101 W. 50th Street 2.. 50th and France Business Area 0922 w. 50th St.) ?. Amundson Avenue Shopping Center. Dated — Sipned Police Pa r man Signed and sworn to before me, a Notary Public in and for Hennepin County, 'Minnesota, this, the day of e 19 g, —L— R-74 r CORRECTED COPY CITY OF EDINA 4801 W. 50TH STREET EDINA, MINNESOTA 55424 NOTICE OF SPECIAL MEETING THE EDINA CITY COUNCIL will meet in a special informal session in the Edina City Hall Council Chambers, 4801 W. 50th Street at 7:00 p.m. on Monday, March 29, 1982. All interested residents are urged to attend. BY ORDER OF THE EDINA CITY COUNCIL. Florence B. Hallberg City Clerk