09/12/1996 - City Council Special • MINUTES OF A SPECIAL MEETING OF THE O 2
EAGAN CITY COUNCIL
EAGAN, MINNESOTA
September 12, 1996
A special meeting of the Eagan City Council was held on Thursday, September 12, 1996
at 5:00 p.m., at the Eagan Municipal Center Building. Present were Mayor Egan and City Councilmembers
Awada, Hunter, Masin and Wachter. Also present were Director of Finance VanOverbeke, Director of Parks
and Recreation Vraa and City Administrator Hedges.
VISITORS TO BE HEARD
There were no visitors to be heard.
CANVASS OF BALLOTS/MUNICIPAL ELECTION
Director of Finance/City Clerk VanOverbeke submitted the results of the Park Bond
Referendum held on Tuesday, September 10, 1996. He stated that there were 7,212 votes cast which
represent a total voter turn out of 21%. He stated that the voter turn out was higher than previous bond
referendums held on February 14, 1989 and May 19, 1992. City Councilmembers discussed reasons they
have heard as to why the referendum failed such as voters are conservative with their discretionary
spending, didn't clearly understand the question and the bond issue was not clearly sold by any group to
the community. Councilmembers concurred that these were a few of the reasons and, after further
discussion, and in a motion by City Councilmember Wachter, seconded by Councilmember Hunter, with
all members voting aye,the official canvass of ballots was completed and the primary election was declared
• an official election.
TRUTH-IN-TAXATION PUBLIC HEARING DATES
City Administrator Hedges stated that the dates recommended for the Truth-in-Taxation
hearings are as follows: Wednesday, December 4, the first regular City Council meeting and Truth-in-
Taxation hearing;Wednesday, December 11,the date for the continuation hearing; and Monday, December
16, the second regular City Council meeting of the month and the subsequent hearing for ratification of the
property tax levy and 1997 general fund operating budget. He stated that the City cannot hold the public
hearings on Tuesdays due to the fact that other jurisdictions have scheduled their Truth-in-Taxation hearing
dates on Tuesday nights and the law is clear that two taxing jurisdictions cannot hold their public hearings
at the same time. After further consideration and in a motion by City Councilmember Hunter, seconded
by City Councilmember Wachter, all members voted in favor, a resolution was approved for setting the
Truth-in-Taxation public hearing dates and changing the regular City Council meeting dates for the month
of December as follows: Wednesday, December 4, will be the first regular City Council meeting and Truth-
in-Taxation hearing; Wednesday, December 11, will be the date for the continuation hearing; and Monday,
December 16, at the regular City Council meeting, will be the subsequent hearing for ratification of the
property tax levy and 1997 general fund operating budget.
PRELIMINARY 1997 GENERAL FUND OPERATING BUDGET
City Administrator Hedges stated that budget adjustments were made at the August 26 and
September 3 work sessions, pertaining to the general fund operating budget. He stated that the
Administrator's budget presented at the August 26 work session totalled $16,171,200 and, due to six
reductions and one increase by the City Council, the budget has been revised to a new total of
• $15,952,100.
City Administrator Hedges stated that at the request of City Councilmember Wachter a
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September 12, 1996/Page 2
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meeting was held on this same day to discuss several budget issues pertaining mainly to Parks and
Recreation and General Government Buildings. City Administrator Hedges stated that City Councilmember
Wachter is asking that the City contact Dakota County Human Resources to pursue alternate funding for
the Youth Development Coordinator position. City Councilmembers discussed the issue and asked the City
Administrator to review what other cities and school districts are doing regarding the funding of this type
of position.
City Councilmember Wachter also raised a question regarding how uniforms are paid for
for Park Maintenance employees. He stated that he would like the City Administrator to further review the
clothing allowance and that a position should be developed for future union negotiations regarding a greater
participation by employees in the cost of uniforms. He further clarified his position on uniforms for building
inspectors and stated that it was his opinion that inspectors should be required to wear City uniforms at the
expense of the employee.
City Administrator Hedges stated that City Councilmember Wachter also raised a question
regarding why the governmental buildings budget has an expenditure to replace the pneumatic controls on
the old boiler and replacement of thermostatic control valves in the secretarial support pool at the Police
Department for a total cost of$14,900. After City Councilmember Wachter share his findings, having met
with the City Administrator and Director of Parks and Recreation, City Councilmember Hunter interjected
that this correction to the air handling system is essentially a change order to the project. City
Councilmembers expressed their ongoing dissatisfaction with the architect for what appears to be a design
failure.
City Councilmember Awada stated that her husband was informed by the subcontractor
S of the heating and ventilation system that the design and specs for the Police building and Municipal Center
building was considered an overdesign, resulting in a higher bid and cost to the City. Mayor Egan
suggested that the City might have a claim and asked the City Administrator to further investigate the issue
with the subcontractor.
City Councilmember Wachter also raised a question about the number of staff cars the City
is providing and suggested that the City Administrator provide a report on the cost benefit of providing staff
cars, mileage reimbursement or vehicle allowance.
After further review of the preliminary budget, a motion was made by City Councilmember
Hunter, seconded by Councilmember Awada, with all members voting in favor, that the preliminary 1997
general fund budget be approved at$15,952,100,with the understanding that any further modifications will
adjust the contingency until the final public hearing is held in December.
CERTIFICATION OF PROPERTY TAX LEVY
Director of Finance VanOverbeke presented the final property tax certification based on
the budget revisions that were presented by the City Administrator. Director of Finance VanOverbeke
stated that based on the budget reductions, the tax capacity rate is estimated to be reduced by 1.7%from
.22139 to .21763. He reviewed the comparison by year of City of Eagan taxes and other pertinent data
for City Council review. City Councilmember Masin asked how the MVTA transit levy would be presented
with the Truth-in-Taxation statements. Director of Finance VanOverbeke stated that each statement will
receive an explanation that the Met Council levy is being reduced by the same amount as the increase to
the local levy. City Administrator Hedges stated that staff is not completely clear as to how the transfer of
the transit levy from Met Council to the City of Eagan will affect the presentation of City taxes, stating as
an example the effect it might have in changing the number the Citizen's League reports and how the City
ranks in comparison to other communities in property taxes per a certain home valuation in the Metro area.
City Councilmember Awada stated that the total opt out transit levy is$1,738,193, and would challenge the
MVTA to provide some data on benefit to the community such as the number of users and other pertinent
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statistics. After further discussion and explanation about the MVTA levy, City Councilmember Hunter asked
that staff prepare a fact sheet on the transit levy for both City Council use and as a press release to the
local newspapers and information to be provided in the next City newsletter. City Councilmember Wachter
suggested that a similar fact sheet and information be provided regarding how fiscal disparities affects the
ad valorem tax levy. After further discussion on the matter, in a motion by City Councilmember Hunter,
seconded by Councilmember Wachter, all members voting in favor, the certification for the purposes of
calculating the Truth-in-Taxation notices was approved with an estimated net reduction in the City tax
capacity rate from .22139 to .21763.
CITI CARGO APPLICATION
Mayor Egan stated that he wanted to share a few observations and request direction from
the City Council relative to the conditional use permit Mardelann Addition that was denied at the September
3 City Council meeting, whereby Citi-Cargo Storage Company was asking for an outside storage of up to
145 semi trailers. He stated that he was concerned as to how quickly the item was reviewed and turned
down without any regard as to how Citi-Cargo might mitigate concerns the City Council has regarding their
outside storage proposal. Mayor Egan stated that Citi-Cargo is a client and reminded the City Council of
his conflict of interest relative to any action on this item. He further stated that the applicant feels there are
mitigation measures that could satisfy concerns that Blue Cross/Blue Shield of Minnesota has regarding
the proposed outside storage and,further, homes to the east of Trunk Highway 13 will not see the site and
that should not be a concern or reason for denial of the conditional use permit. Mayor Egan stated that
the applicant would like an opportunity to come with a revised plan if the City Council would give their
consideration. City Councilmember Awada stated that possibly a half building could be designed to cover
the outside storage which eliminates the site concerns expressed by Blue Cross. Mayor Egan stated that
the applicant did indicate they are willing to provide a blacktop of parking lot within two years. City
Councilmember Hunter stated that the applicant must address all of the concerns that have been raised
by the City Council and mitigate any issues that the surrounding corporations have raised as concerns such
as Blue Cross/Blue Shield of Minnesota before he will reconsider the application. City Councilmember
Masin agreed, stating that her big concern was how the outside storage will look in relationship to the
surrounding businesses.
After further discussion, City Councilmembers agreed that with the understanding
expressed to Mayor Egan,the applicant Citi-Cargo could represent their conditional use permit if the issues
discussed at both the September 3 and this meeting are resolved to the satisfaction of the corporate
neighbors and the City of Eagan.
OTHER BUSINESS
There being no Other Business, the meeting was adjourned at 6:20 p.m.
t TLH
September 12, 1996 f
Dated � City Clerk
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