11/07/1996 - City Council Special • MINUTES OF A SPECIAL MEETING OF THE 00395 EAGAN CITY COUNCIL
EAGAN, MINNESOTA
November 7, 1996
A special meeting of the Eagan City Council was held on Thursday, November 7, 1996 at
5:00 p.m., at the Eagan Municipal Center Building. Present were Mayor Egan and City Councilmembers
Awada, Hunter and Masin. City Councilmember Wachter was absent. Also present were Director of
Finance VanOverbeke, Director of Public Works Colbert, Superintendent of Utilities Schwanz, 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 presented the results of the municipal portion
of the general election which declares Bea Blomquist 9,601 votes and Sandra Masin 8,015 votes as being
elected to four year terms. He stated that Shawn Hunter received 7,310, Paul Bakken 6,241, Mark Miller
4,297 and Ron Hanson 3,643. Mr. VanOverbeke further stated that 72% of the registered voters voted in
the general election. There was general discussion covering the number of voters actually casting ballots
compared to the number who do not vote for particular offices. In official action with a motion by City
Councilmember Awada, seconded by City Councilmember Hunter, with all members voting in favor, the
results of the 1996 municipal portion of the general election for two City Council seats were approved.
• REGULATIONS FOR DISTRIBUTION OF ON-SALE LIQUOR LICENSES
City Administrator Hedges stated that the City Code provides regulatory language for the
distribution of 18 on-sale liquor licenses. He stated that with the additional eight approved as a result of
special legislation, Council direction is necessary to determine how those licenses should be distributed,
i.e. hotels, restaurants with a valuation of$350,000, or other restaurants. Mayor Egan stated that there
should not be a concentration of licenses in one area such as the Promenade. Director of Finance/City
Clerk VanOverbeke stated that the present special legislation approving the eight additional licenses will
always guarantee eight additional licenses above the normal statutory allocation of licenses which is
currently 18 and will more than likely be increased to 24 with the federal census in the year 2000. Al Baker
appeared and stated that he has had a conversation with the liquor control commissioner who has stated
that it was not his intent to issue the additional licenses forever. He further explained that the law was
written to help a growth community to reach the next census when the number automatically changes by
statute. Mr. Baker sated that in his opinion, which appears to be shared by the State Liquor Control
Commissioner, the number of licenses should be reduced once the City reaches the new allocation in the
year 2000. Director of Finance VanOverbeke stated that if the eight are reduced at the next census, the
total number of licenses could be reduced as a result of that action.
After further discussion, City Councilmember Masin stated that she would support three
licenses for hotels. City Councilmember Awada stated that the City should not regulate the distribution of
licenses, allowing the licenses to be granted according to demand. She further stated that the regulation
relating to the $350,000 valuation should be removed from the City Code and again reiterated her position
that on-sale liquor licenses should be issued on a first come first served basis. City Councilmember Hunter
stated that he would support withholding four licenses for hotels, omitting the legislation relative to the
$350,000 valuation and designating all other licenses in the category of restaurants. Doron Jensen, owner
of Jensen's Supper Club,was present and stated that there is a difference between the issuance of on-sale
liquor for a large bar with no food and a restaurant that serves on-sale liquor. Director of Finance
VanOverbeke stated that the City Code does not allow a bar/lounge without a restaurant under current
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November 7, 1996/Page 2 0039
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language. City Councilmember Awada stated that she would support language to eliminate that restriction
and allow the free market place to determine the type of establishment. City Councilmember Hunter and
Mayor Egan stated that they could not agree with allowing on-sale liquor licenses to be issued to
establishments that promote only bar/lounge and no family restaurant opportunities. City Councilmember
Masin stated that she does not want an applicant to be issued a license that is not used and suggested
a reasonable time frame such as two years. After further discussion, and in a motion by City
Councilmember Awada, seconded by Councilmember Hunter with all members voting in favor, the City
Attorney's office was directed to prepare an ordinance amendment that amends the City Code to distribute
three licenses for hotels and all remaining 23 licenses would be designated as restaurants and, further,
that no license could be held for more than two years if the license is not used.
Jennifer Hearon, representing the Dakota County Chamber of Commerce, stated that liquor
proprietors have raised concerns about local hotels serving liquor during wedding receptions and other
events without a proper license. Mr. Al Baker, representing Al Bakers Restaurant, raised several concerns
regarding language in the City Code which appears to be unnecessary and/or out dated. City Administrator
Hedges stated that it might be appropriate to consider a task force comprised of on-sale liquor license
holders and the City Clerk to review issues presented by Mr. Baker. The City Council agreed that the code
change to the distribution and the comprehensive review could take place in two phases.
Mr. Baker asked the City Council what the direction will be for the number of licenses in
the future. He further stated that the 26 licenses could be totally consumed in the next year, stating
examples of how that could occur. His question to the City Council is how would they respond to the
saturation of licenses. City Councilmember Awada stated that she would pursue special legislation for
more licenses. Mr. Baker asked who the licenses are for? Mayor Egan stated that on-sale liquor licenses
are issued to serve the community not the developers. City Councilmember Awada further stated that
government should not dictate the number of liquor establishments, no different than gas stations.
Representatives of on-sale liquor license establishments including Chills, LaFonda, Jensen's, Richard's,
Cherokee Sirloin and Al Bakers were present and provided a number of reasons as to why liquor licenses
are different than gas stations and other businesses, suggesting that the City Council should provide some
limits on the number of licenses. General discussion followed regarding the free market philosophy versus
the more regulatory approach to the issuance of on-sale liquor licenses.
PUBLIC ENTERPRISE FUND BUDGET/CIVIC ARENA
City Administrator Hedges provided introductory comments regarding the overall enterprise
fund budget. Director of Parks and Recreation Vraa presented the Civic Arena budget, stating that the City
should finish with a positive cash flow balance in its first year of operation. City Councilmember Awada
stated that the community should be made aware of this information and proposed that an article be
prepared for the City's newsletter, newspaper and the reader board.
Director of Parks and Recreation Vraa stated that the budget was prepared with two
scenarios for operation, including 1)adding a summer ice program from June 15 through the month of July
or 2) keeping dry floor from early May until August. City Administrator Hedges stated that his budget
proposes the addition of summer ice which will provide additional operating funds. He further stated that
the arts and craft show, home and garden and other dry floor events. After reviewing the Civic Arena
budget, there was a consensus by the City Council that the option for summer ice programs from June 15
through July be approved.
PUBLIC ENTERPRISE FUND OPERATING BUDGET/SEWER AND WATER UTILITY
City Administrator Hedges stated that there is a recommendation for a full-time Engineering
Technician position that will help develop/maintain the GIS system and create new data support interface
between the GIS and Hanson software for the water utility. He further stated that this work has been
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November 7, 1996/Page 3 003,97
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coordinated by part-time/seasonal, however, to maintain the amount of infrastructure in the 34 square mile
community, there is a need for continuity and more resource allocation. The City Administrator stated that,
again, the use of part-time seasonal help to support both the water and sanitary sewer operations is
included in the operating budget.
Director of Public Works Colbert stated that there is an overall decrease proposed in the
water and sewer utility budgets. He stated that in order to compare the 1996 operating budget with the
proposed 1997 budget for water and sewer utilities, the $1.5 million reservoir proposed for the Cliff Road
Trunk Highway 3 quadrant needs to be considered as a one time major capital expense. The Director of
Public Works reviewed several line item accounts stating that in many cases the budget will decrease such
as the expenditure for distribution parts, gate valves, hydrants, insurance, electricity which also is proposed
to decrease and a significant decrease of $146,700 is proposed for the Seneca Treatment disposal
charges. The main increases are for certain repairs proposed in the water utility and for sewer service
repairs. He further stated that included is the proposed replacement/renewal for the Highview Avenue
sanitary sewer main lining and repair, further eliminating infiltration, in the amount of$35,000 and the repair
of the Widgeon Way lift station in the amount of$35,000.
City Councilmember Masin asked about the cost for copying maps and other utility
engineering related data that was identified in the budget. Director of Public Works Colbert stated that with
the availability of the GIS application, there is more request for data by developers, contractors and in some
cases which require an appropriate fee schedule.
PUBLIC ENTERPRISE FUND OPERATING BUDGET/STREETLIGHTING
• City Administrator Hedges stated that the streetlighting budget reflects primarily the cost
of energy for neighborhood lights, community intersection lights and certain traffic lights. He stated that
the overall budget is proposed as a decrease at $13,200 from the 1996 budget. Director of Public Works
Colbert stated that he has had recent discussions with Dakota Electric regarding a maintenance program
for streetlighting fixtures. After some elaboration on the program, City Councilmembers expressed their
appreciation for pursuing the most cost effective method for maintaining streetlighting.
PUBLIC ENTERPRISE FUND OPERATING BUDGET/STORM DRAINAGE/WATER QUALITY
City Administrator Hedges stated that the operating budget for storm drainage/water quality
was prepared based on the criteria the City Council established in 1995 that allocated service fees to 70%
operations, 10%renewal and replacement and 20%expansion modification with the understanding that CIP
expenditures in 2001 and beyond are placed on as pay as you go basis. Director of Parks and Recreation
Vraa reviewed the proposed operating budget, stating that the proposed budget for 1997 is slightly less
than projected a year ago when detailed water quality was considered by the Council. He stated there are
no additional personnel requested for water quality. Director of Parks and Recreation Vraa provided a brief
review of the operations budget and projects proposed under renewal and replacement and expansion
modification for 1997.
PROPOSED FIVE YEAR CIP (1997 - 2001)/STORM WATER UTILITY
Director of Parks and Recreation Vraa provided an explanation for the proposed five year
CIP for storm water utility, stating that the total budget is estimated at$1,347,500, which includes$357,500
of expansion/modification for conveyance, $805,000 of expansion/modification for water quality and
$225,000 for renewal and replacement of the existing system. Mr. Vraa provided a more detailed
• explanation for the water quality improvements under expansion/modification proposed in 1997. He stated
that Fish Lake alum injection, Pond JP15 bypass, Schwanz Lake access, Fish Lake outlet reconstruction
and wetlands bank land acquisition are all capital projects proposed at $225,000.
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November 7, 1996/Page 4
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PROPOSED FIVE YEAR CIP (1997 - 2001) STREETS/HIGHWAYS
Director of Public Works Colbert stated that there are four improvements proposed as a
part of the collector and arterial CIP which include 1) Lone Oak Road (1997), Dodd Road (1998), Yankee
Doodle Road extension (1998) and Pilot Knob Road/I 35E (2001). He further stated that the total for
collector and arterial improvements for the five years is$7,485,600, a portion of which is funded by Special
Assessments to adjacent benefitting properties.
PROPOSED FIVE YEAR CIP (1997 - 2001) OTHER TRANSPORTATION IMPROVEMENTS
Director of Public Works Colbert reviewed the categories for local street improvements
which include reconstruction, resurface/replace, overlay and urban upgrade. He further stated that urban
upgrade is a category that pertains basically to gravel, unimproved and/or rural street sections that need
full construction to bring it up to urban standards.
He also provided a review of the street sealcoat program which is funded by a general fund
contribution of$50,000 per year and the difference being the full responsibility of the major street fund.
Director of Public Works Colbert also reviewed the CIP program for upgrading signal lights
at major intersections. He reviewed projects proposed at Diffley and Rahn in 1997 (study only), TH 13 at
Blackhawk Road in 1998, TH 149 at Lone Oak Parkway in 1999, and Lexington/Wescott which is
programmed in the"future"category. He stated that the Dakota County five year CIP has programmed the
intersection for reconsideration in 1997, based on the warrants and evaluation of preventable accidents.
• The Director of Public Works also stated that lower priority signals will not be approved by the County until
this intersection's deficiencies have been corrected with signalization. City Councilmember Masin stated
that she is pleased that the Diffley at Rahn signal study is proposed for 1997.
Director of Public Works Colbert provided a brief review of those streetlights proposed for
installation at major intersections, reminding the Council that this portion of the CIP does not include local
residential neighborhood lights or continuous streetlighting within any particular area or along any corridor.
He stated that the streetlighting that is proposed is based on an inventory of needs along collector and
arterial streets.
PROPOSED FIVE YEAR CIP (1997 - 2001) WATER AND SEWER UTILITIES
Director of Public Works Colbert reviewed the CIP for water/trunk distribution, water
operations and facilities, sanitary sewer trunk conveyance, sanitary sewer facility and operations and storm
sewer trunk conveyance. He stated that many of the major CIP elements pertain to trunk water main
installations and a one million gallon stand pipe water tower associated with the Inver Grove Heights joint
powers agreement.
City Administrator Hedges stated that this concludes the presentations for the Public
Enterprise Fund Operating Budget and proposed five year CIP Part III. He further stated that Part I and
Part II and park expansion under Part III, for the five year CIP will be presented at the November 21 special
City Council workshop.
OTHER BUSINESS
• There were no items for consideration under Other Business.
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November 7, 1996/Page 5 0a3
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EXECUTIVE SESSION
The City Council did adjourn to an executive session to provide direction to the City
Administrator regarding union negotiations with the Police Dispatch unit. The meeting was adjourned at
8:30 p.m.
TLH
November 7, 1996
Dated City Clerk
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