Recommendation to Move Accounting, Payroll, and Budget Functions of Finance Department to 7800 Chavenelle - Unit 6City of Dubuque
City Council
CONSENT ITEMS # 6.
Copyrighted
November 17, 2025
ITEM TITLE: Recommendation to Move Accounting, Payroll, and Budget
Functions of Finance Department to 7800 Chavenelle — Unit
6
SUMMARY: City Manager recommending approval of relocating the
accounting, payroll, and budget functions of the Finance
Department to 7800 Chavenelle Drive, negotiating an
amended lease with Dubuque Childcare Collaborative, LLC,
and initiating public bidding for necessary construction.
SUGGUESTED Receive and File; Approve
DISPOSITION:
ATTACHMENTS:
1. MVM Memo Acctg Payroll Budget Move Chavenelle _MVM Memo_2025_11_06
2. Acct_Payroll_Budget_Move to Chavenelle_Staff_2025_11_06
3. Finance Seating Chart
4. _Bright Minds Campus_Master Plan
Page 151 of 750
THE CITY OF
Dubuque
DB--'*--TEAll-Anerie�Cily
U
II
Masterpiece2-2013
on the Mississippi
zoo
2017*2019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Recommendation to Move Accounting, Payroll, and Budget Functions of
Finance Department to 7800 Chavenelle — Unit 6
DATE: November 12, 2025
Chief Financial Officer Jennifer Larson recommends the approval of relocating the
accounting, payroll, and budget functions of the Finance Department to 7800
Chavenelle Drive, negotiating an amended lease with Dubuque Childcare Collaborative,
LLC, and initiating public bidding for necessary construction. This relocation aims to
enhance efficiency, collaboration, and address space limitations observed within the
current setup. The Budget Manager and Utility Billing Supervisor currently lack privacy
in their cubicles, necessitating alternative meeting spaces. Since the 2020 Finance
Department remodel, additional roles such as Payroll Systems Analyst, Purchasing and
Safety Coordinator, Budget/Financial Analyst — Reporting, and two interns have been
included, leading to cramped conditions and reassigned workspaces. Flex scheduling
has proven unreliable for ensuring adequate workspace, especially for interns, limiting
staffing capacity and reducing team collaboration.
Unit 6 at 7800 Chavenelle Road offers approximately 5,667 square feet of available
space. This facility can accommodate up to 40 staff members in 20 cubicles (two per
cubicle) and includes five office spaces. Shared amenities comprise an auditorium,
conference room, restrooms, and a break room. Its proximity to IT makes it an optimal
location to meet the Finance Department's current and future space needs while
fostering better collaboration with the IT department.
The lease -to -own arrangement spans five years, with Unit 6 added to the existing IT
lease initiated in January 2024. IT has negotiated a base rent of $10.00 per square foot
plus a portion of operational costs and utilities based on area. The Finance Department
will also pay this base rent rate and $3.78 per square foot per year for maintenance,
insurance, and tax payments, bringing the total annual expense to roughly $78,091
(including $21,421 for operational costs and utilities) for 5,667 square feet. At the end of
the term, the City can buy Unit 6 for $1,000. Dubuque Childcare Collaborative, LLC has
agreed to modify the Unit 4 (IT) lease to include Unit 6 (Finance), with the Finance
portion of the lease ending in December 2030.
Page 152 of 750
Several tasks are required before Accounting, Budget, and Payroll functions can
transition to Unit 6: replace missing/worn carpeting, reconnect HVAC, ethernet, power,
and network systems, paint, install three doors, modify cubicles, split the conference
room into two offices, and purchase office furniture, all with an estimated cost of
$350,000.
Joe Pregler, Chief Information Officer, has identified additional construction needs. The
carpet in the IT space is worn and presents tripping hazards. Staff changes, including
the addition of GIS and a data analyst, necessitate more offices and improved sound
management in cubicles. Additionally, the shared conference room is now too small for
the number of staff, requiring a new conference room to serve both the Finance and IT
departments. The total estimated construction cost for IT is $324,243.
In addition to construction costs, non -construction expenses must be considered for
moving the Accounting, Payroll, and Budget functions. Shared custodial services will be
required. We are evaluating whether a full-time custodian (NB06) at 1.00 FTE, with an
annual cost of $67,280, is necessary. Responsibilities would include cleaning
restrooms, hallways, break rooms, entryways, and trash disposal. Furthermore, other
tenants request that the City clean shared restrooms, hallways, conference room,
auditorium, and the new E911 center, with the City being reimbursed for half the
cleaning costs of the E911 center. Tenants will also contribute to custodial expenses for
shared areas. The City cost of a full-time custodian is estimated to be $55,365.
The Utility Billing staff will remain at City Hall, with plans to upgrade their workspace for
better accommodation and improved workflow. Currently, the Utility Billing department
occupies a space designed before the COVID-19 pandemic, featuring cashier windows
structured to efficiently redirect large customer lines from the hallway into the
department. Proposed future changes include reconfiguring workspace to allow staff to
physically spread out, reviewing and redesigning the cashier window layout to better
meet post-COVID customer service requirements, and constructing an office for the
Utility Billing Supervisor. Consequently, the Utility Billing staff would occupy less space
in the Finance Department, with approximately one fourth of the total space, allowing
alternative uses for the remaining area. Acknowledging the significant space being
vacated, options to serve the needs of other departments will be explored to ensure
optimal use of the available space.
The one-time construction cost of $685,000 will be funded by sales tax construction
fund savings from Fiscal Year 2025. Recurring operating expenses for a full-time or
part-time custodian, annual base rent, and operating expenses will be funded by Fiscal
Year 2025 general fund savings.
2
Page 153 of 750
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jml
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Brian DeMoss, Finance Manager
3
Page 154 of 750
THE CITY OF
DUB E
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
Dubuque
AI -America City
II
2007 • 2012 •2013
SUBJECT: Recommendation to Move Accounting, Payroll, and Budget Functions of
Finance Department to 7800 Chavenelle — Unit 6
DATE: November 12, 2025
INTRODUCTION
The purpose of this memorandum is to recommend City Council approval of the relocation
of the Accounting/Payroll/Budget functions of the Finance Department to 7800 Chavenelle
Drive and to negotiate an amended lease with Dubuque Childcare Collaborative, LLC. It
also seeks to start public bidding for necessary construction. The move aims to improve
efficiency, collaboration, and address space limitations.
BACKGROUND
The Finance Department's 2020 remodel within its existing space (Attachment 1) removed
two offices, worsening space constraints. This has led to overcrowded offices and
insufficient cubicles.
The Budget Manager and Utility Billing Supervisor lack privacy in their cubicles, forcing
them to find alternative meeting spaces. Since the remodel, new roles like Payroll Systems
Analyst, Purchasing and Safety Coordinator, Budget/Financial Analyst — Reporting, and
two interns have been added. Consequently, additional cubicles were squeezed in, and a
second intern's workspace was reallocated. Flex scheduling is unreliable for ensuring
adequate workspace, particularly for interns.
Space limitations hinder staffing capacity, preventing the hiring of all budgeted interns and
reducing team collaboration. Expanding into the City Clerk Office was deemed a
temporary fix, inadequate for long-term needs.
With the IT department and E911 recently relocated to 7800 Chavenelle Road,
approximately 5,667 square feet of vacant space is now available in Unit 6. This area
includes 20 cubicles, three offices, a conference room that can be divided into two offices,
a technology closet, and a break room. Its proximity to IT makes it an ideal location to
Page 155 of 750
meet current and future space needs for the Finance Department and boost collaboration
with IT.
DISCUSSION
It is recommended to relocate the Accounting, Budget, and Payroll functions of the
Finance Department to Unit 6 at 7800 Chavenelle Road. The Utility Billing operations will
remain at City Hall to continue providing assistance to residents with bill payments, new
service requests, and other utility -related needs.
This relocation addresses both immediate and future space requirements, promotes better
collaboration with IT on software development, financial systems integration, and joint
projects, frees up space at City Hall, enhances operational efficiency and staff comfort,
and supports growth and technological advancements.
In the short term, the needs include four offices (for the CFO, Purchasing/Risk Manager,
Finance Manager, and Budget Manager), 14 cubicles (for Budget Analysts, Accountants,
Interns, Payroll Analyst, and Safety Coordinator), as well as a break room, storage area,
shared restrooms, and conference and training rooms. In the long term, additional office
space and cubicles will be required to accommodate future staffing growth.
Unit 6 has the capacity to accommodate up to 40 staff members in 20 cubicles (two per
cubicle) and includes five office spaces. Shared facilities comprise an auditorium,
conference room, restrooms, and a break room (Attachment 2).
View of Cubicle Bank Facing NW Windows
Conference Room to Convert to Two Offices
Three Existing Offices Cubicle Bank Facing Conference Room
Page 156 of 750
0
L ;--"Or A
Department Break Room
_L
Cubicle Bank Facing Existing Offices
Cubicle Bank facing common hallway Shared Auditorium
Shared Conference
The lease -to -own agreement covers five years, with Unit 6 added to the existing IT lease
that started in January 2024. IT negotiated a base rent of $10.00 per square foot plus a
portion of operational costs and utilities based on area. The Finance Department will pay
the same base rent rate and $3.78 per square foot per year for maintenance, insurance,
and tax payments, bringing the total annual expense to roughly $78,091 (including
$21,421 for operational costs and utilities) for 5,667 square feet. At the end of the term,
the City can buy Unit 6 for $1,000. Dubuque Childcare Collaborative, LLC has agreed to
modify the Unit 4 (IT) lease to include Unit 6 (Finance), with the Finance portion of the
lease ending on December 2030.
Before Accounting, Budget, and Payroll can move into Unit 6, several tasks need
completion: replace missing/worn carpeting, reconnect HVAC, ethernet, power, and
network, paint, install three doors, modify cubicles, split the conference room into two
offices, and purchase office furniture.
Construction Task
New Carpet Squares - 5,290 Sq Ft (includes lifting cubicles
Connect HVAC to IT roof top unit
Reconnect Ethernet/Power
Hardware Network Connection — Closet
Paintinq
Estimate
$38,375
$34,121
$12,000
$10,000
$30,000
Page 157 of 750
Construction Task
Estimate
Installation of 3 Doors
$20,000
Electronic Access Control System panel and card strikes expansion
$5,000
Construction of Hallway Storage for IT & Finance
$23,250
Modification of cubicles to sit to stand 40
$33,800
Addition of fabric privacy panels to cubicles 59
$8,315
Refrigerator, microwave, garbage disposal, ice maker
$2,000
Split existing conference room into 2 offices
$93,000
Office furniture for Finance offices 5
$13,450
Office chairs for cubicles 40
$10,000
Movin Existing Copier/Printer/Monitors/Phones (inhouse IT)
$0
$16,689
Contingency 5%
Total Construction Cost
$350,000
Joe Pregler, Chief Information Officer, has identified additional construction needs. The
carpet in their space is worn and poses tripping hazards. Staff changes, including the
addition of GIS and a data analyst, require more offices and better sound management in
cubicles. The shared conference room is now too small for the number of staff,
necessitating a new conference room for both Finance and IT departments.
Construction Task Estimate
New Carpet Squares (includes lifting cubicles/ disassembly/ $30,000
reassembly office furniture)
Addition of fabric privacy panels to cubicles (33) $4,653
Construction of 4 offices $186,000
Construction of conference room $69,750
Conference room furniture $9,000
Conference room AV equipment $6,200
Office furniture for new IT
Contingency 5%
Total Construction Cost
offices
$13,450
$15,947
In addition to construction costs, non -construction expenses must be considered for
moving Accounting/Payroll/Budget. Shared custodial services will be required. We are
assessing if a full-time custodian (NB06) at 1.00 FTE, with an annual cost of $67,280, is
necessary. Responsibilities would include cleaning restrooms, hallways, breakrooms,
entryways, and trash disposal. Additionally, other tenants request the City clean shared
restrooms, hallways, conference room, auditorium, and the new E911 center, with the City
being reimbursed for half the cleaning costs of the E911 center. Tenants will also
contribute to the custodial expenses for shared areas.
Page 158 of 750
The breakdown of the square footage by tenant that would require City custodial services is
as follows:
Tenant
Sq Ft
% of Total
City
13,670
49.70%
Dispatch
7,388
27.26%
Shared
6,245
23.04%
Total
27,103
100.00%
The City cost of a full-time custodian would be as follows:
Space
%
Custodial
Cost
City
50.94%
$33,438
Dispatch
13.77%
$9,170
Shared
4.50%
$12,757
Total City Custodial
69.21 %
$55,365
The Utility Billing staff will stay at City Hall, with plans to upgrade their workspace for better
accommodation and workflow improvement. At present, the Utility Billing department
occupies a space designed before the COVID-19 pandemic, featuring cashier windows set
up to efficiently redirect large customer lines from the hallway into the department.
Proposed Future Space Changes:
• Reconfigure the workspace to allow staff to physically spread out, enhancing
comfort and productivity.
• Review and redesign the cashier window layout to better meet post-COVID
customer service requirements.
• Construct an office for the Utility Billing Supervisor.
The cashier window layout, designed before the pandemic to improve customer flow and
reduce hallway congestion, is now outdated. Since COVID-19, long lines have decreased,
making the original design inefficient. The current setup creates a narrow corridor that
limits space and flexibility.
Benefits of Revising the Layout:
• Increased Operational Efficiency: Reorienting cashier windows parallel to the
hallway frees up interior space, enabling better customer service, reducing
congestion, and speeding up transactions.
• Improved Customer Service: A more accessible and welcoming cashier area
reduces wait times and eases access to services, allowing staff to handle peak
periods more effectively.
• Enhanced Staff Workflow and Collaboration: Flexible workspaces improve staff
comfort and collaboration, especially during busy times or complex transactions.
Page 159 of 750
• Better Space Utilization for Future Needs: The revised layout allows for
departmental expansion, including a dedicated supervisor's office, boosting overall
efficiency.
Utility Billing staff would occupy less space in the Finance Department, approximately one
fourth of the total space, allowing alternative uses for the remaining area. Acknowledging
the significant space being vacated, options to serve the needs of other departments will
be explored to ensure optimal use of the available space.
BUDGETIMPACT
The estimated one-time construction cost of $685,000 will be funded by sales tax
construction fund savings from Fiscal Year 2025. Funding for a full-time custodian will
come from Fiscal Year 2025 general fund savings, and would result in a net cost of
$55,365, potentially less if part-time service is considered. The annual base rent of
$56,670 and operating expense of $21,421 will also be covered by general fund savings,
with future costs included in the budget process.
Future space changes for Utility Billing will be aligned with planned renovations of City
Hall.
REQUEST
I recommend approving the relocation of the Finance Department's Accounting, Payroll,
and Budget functions to 7800 Chavenelle Drive, negotiating an amended lease with
Dubuque Childcare Collaborative, LLC., and starting public bidding for necessary
construction.
Attachments
Page 160 of 750
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Revision
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Drawn By
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Project Number
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Sheet Title
Sheet Number
Page 162 of 750