08/15/2012 - City Council SpecialMINUTES
SPECIAL CITY COUNCIL MEETING
WEDNESDAY, AUGUST 15, 2012
5:30 P.M.
EAGAN ROOM — EAGAN MUNICIPAL CENTER
City Council members present Councilmembers Bakken, Fields, Hansen and Tilley. Mayor Maguire
arrived at 5:43 p.m.
City Staff present: City Administrator Hedges, Assistant City Administrator Miller, Assistant City
Administrator VanOverbeke, Public Works Director Matthys, Director of Community Development
Hohenstein, Director of Parks and Recreation Johnson, Fire Chief Scott, Police Chief McDonald, Director
of Communications Garrison, Superintendent of Parks Olson, Chief Financial Officer Pepper,
Superintendent of Enterprise Operations Mesko, Finance Intern Miller, and Dan Cook, IT Manager.
I. ROLL CALL AND ADOPTION OF THE AGENDA
Councilmember Fields moved, Councilmember Hansen seconded a motion to adopt the agenda as
presented. Aye:4 Nay:0
II. VISITORS TO BE HEARD
There were no visitors to be heard.
III. JOINT MEETING WITH THE ADVISORY PARKS AND RECREATION COMMISSION (APrC)
• 2012 -2013 APrC Work Plan
City Administrator Hedges introduced the item and noted that it is the practice of the City Council to
meet with each of their advisory commissions at least once per year. Acting Mayor Bakken welcomed
the (APrC) Advisory Parks and Recreation Commission members to the meeting. Each of the
Commissioners introduced themselves to the City Council. Director of Parks and Recreation Johnson
gave a brief summary of the Commission's purpose, and introduced Chair, Laurie Halvorson. Chair
Halvorson gave an overview of the proposed work plan and goals for 2012 -13. The Council and the
members of the APrC discussed the work plan and goals adopted at the June 18, 2012 APrC meeting.
The City Council gave direction to add the 2012 -2013 Advisory Parks Commission Work Plan and Goals
to a future consent agenda for formal consideration.
• 2013 -2017 Parks Capital Improvement Program
City Administrator Hedges introduced the 2013 -2017 Capital Improvement Plan for Parks and Recreation
noting the funding for the CIP has historically come from the Park Site Fund, and beginning with the
2012 budget, the City Council designated a $400,000 tax levy allocation to the Park Systems
Development and Renewal and Replacement Fund. Hedges stated that the CIP proposal presented by
the APrC to the City Council encompasses 2013 through 2017.
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August 15, 2012
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Director of Parks and Recreation Johnson summarized the proposed 2013 -2017 CIP proposal. Johnson
introduced Superintendent Olson who provided a presentation of the specific CIP projects proposed for
2013. Council discussed the issues. Mayor Maguire thanked the Advisory Parks and Recreation
Commission members.
The City Council gave direction to add the 2013 Parks and Recreation Capital Improvements Program to
a future consent agenda for formal consideration.
IV. 2013 GENERAL FUND BUDGET AND TAX LEVY
City Administrator Hedges introduced the item noting that preparation of the 2013 preliminary General
Fund Budget and 2013 tax levy has been ongoing since April 2012. Hedges added that the
appropriations in the current 2013 preliminary budget total $28,854,000. The proposed General Fund
Budget reflects an increase of $814,000, or 2.9 percent over the 2012 budget. Hedges provided an
overview of the proposed General Fund Budget as it relates to specific departments and operations, and
also summarized the public policy issues for the City Council's consideration.
Assistant City Administrator VanOverbeke and Chief Financial Officer Pepper provided additional
background pertaining to market value, total tax capacity and local tax capacity trends.
Mr. Hedges noted that the City is required to certify a proposed payable 2013 Property Tax Levy to the
County Treasurer - Auditor on or before September 17, 2012. Hedges added that formal action on the
levy and the preliminary 2013 General Fund Budget are scheduled for the regular City Council meeting
on September 4, 2012. Modifications to the 2013 budget and department adjustments as directed by
the City Council can continue beyond the September 17 deadline with final levy certification and budget
action scheduled for the December 18, 2012 regular City Council meeting. Hedges added the final
Property Tax Levy that is due at the County no later than December 28, 2012 can be decreased but
cannot be increased from the preliminary certification.
The City Council discussed the proposed 2013 budget and the proposed payable 2013 Property Tax Levy.
The Council reviewed three proposed staffing positions that were not included in the preliminary budget
proposal. There was consensus for the senior management team to continue to review the positions,
and it was noted that the positions would not impact the levy.
There was Council consensus that the budget level at a 2.9 percent increase and a levy increase of 3.3
percent is appropriate. It was noted that even with a 3.3 percent levy increase, the average Eagan
taxpayer would see a slight decrease on the City portion of taxes in large part due to declining property
values.
V. 2013 CIVIC ARENA BUDGET
City Administrator Hedges introduced the item noting the Civic Arena budget is presented to the City
Council in advance of other enterprise fund budgets as operations run on a September 1 year, matching
the ice rental business season. Hedges noted the 2013 Civic Arena budget is balanced and is increasing
by 7.93 percent from $963,200 in 2012 to $1,039,600 in 2013. It was noted that the proposed budget
also includes a $10 increase in prime -time hourly ice rates; however, even with the increase, this
positions the Eagan Civic Arena as having one of the lowest ice rental in the area.
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August 15, 2012
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The City Council discussed the proposed budget.
Councilmember Fields moved, Councilmember Hansen seconded a motion to approve the 2013 Civic
Arena Budget, 2012 -2013 rates, and the purchase of 2013 capital outlay items as presented. Aye: 5
Nay: 0
VI. ACCESSEAGAN FIBER UPDATE
City Administrator Hedges introduced the item as an update on the City's AccessEagan fiber network.
Assistant City Administrator VanOverbeke provided an overview on construction status, future issues
and implementation steps of the City's fiber network. VanOverbeke also noted that Phase I is almost
complete and Phase II fiber has been ordered and expected to be installed by the end of August.
Modifications have begun in the network room at the Fire Safety Center to provide for fire suppression.
There was Council consensus to proceed with the fire suppression /HVAC improvements as proposed.
Assistant City Administrator VanOverbeke discussed the implementation steps noting the timeline
proposed, including the soft launch in October 2012. The Council concurred with the proposed timeline
and concept of a soft launch.
The Council acknowledged that technology support is currently contemplated to be provided by existing
staff, and contractual assistance through LOGIS with the possibility of a full -time staff person proposed
for 2013. VanOverbeke noted that a City Code amendment will be needed in preparation for the
launching of AccessEagan, and there was Council consensus that the amendment be brought back to a
regular City Council meeting for formal consideration.
The Council directed the proposed AccessEagan rate structure be reviewed by the Finance Committee
prior to coming back to the Council as a whole. The Council directed that staff be given discretion to
adjust rates by up to 10 percent (compared to the rate structure proposed by the consulting firm of
Design 9) in order to respond to market demands. The Council directed any further changes needed to
the rates should go before the Finance Committee for review and recommendation to the Council as a
whole.
Assistant City Administrator VanOverbeke gave an overview of the marketing plan noting that Director
of Communications Garrison has analyzed the stakeholders to be addressed in a marketing effort as well
as various options to reach those stakeholders. The stakeholders identified by Director Garrison include
local industry users, two types of providers — those currently in the Twin Cities and those not currently in
the Twin Cities, and the general public, with the general public including a Legislative awareness
component. VanOverbeke also noted that the estimated start up cost of this one -year plan would be
$71,000 and that a 2013 Fiber Infrastructure Fund Budget is being prepared, and will be presented to
the City Council later this year.
There was Council consensus to proceed with the marketing plan and budget as proposed. Council
directed staff to focus solely on Phases I and II, and not proceed with Phase III at this time and to
evaluate fiber /conduit opportunities and partnerships as they become available. The City Council also
requested regular updates in writing regarding AccessEagan.
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August 15, 2012
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VII. OTHER BUSINESS
The City Council directed that an item be included on the August 21, 2012 City Council agenda to cancel
the Special City Council meeting scheduled for Tuesday, October 9, 2012 and schedule a Special City
Council meeting on Monday, October 22, 2012.
VIII. ADJOURNMENT
Councilmember Fields moved, Councilmember Tilley seconded a motion to adjourn at 8:30 p.m.
Aye:5 Nay:O
Date 64
Mayor
Clerk