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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 Special City Council Meeting Minutes irTb September 12, 1996/Page 2 • 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 Special City Council Meeting Minutes September 12, 1996/Page 3 06:"„27 • 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 S