11/21/1996 - City Council Special 00427
MINUTES OF A SPECIAL MEETING OF THE
EAGAN CITY COUNCIL
Eagan,Minnesota
November 21, 1996
A special meeting of the Eagan City Council was held on Thursday, November 21, 1996, at 5:00
p.m. at the Eagan Municipal Center. Present were Mayor Egan and City Councilmembers Awada, Hunter, Masin
and Wachter. Also present were Director of Parks&Recreation Vraa, Director of Public Works Colbert, Police Chief
Geagan, Fire Chief Jensen, Chief Building Official Reid, Finance Director/City Clerk VanOverbeke, Utilities
Superintendent Schwanz, Parks Superintendent Olson, Street Superintendent Erhart, Administrative Intern Davis
and City Administrator Hedges. The purpose of the meeting was to respond to questions regarding the proposed
1997 General Fund Budget and to review the proposed Five-Year C.I.P. (1997-2001), including Part I (Fire
Administration), Part II (New&Replacement Vehicles)and Part III (Parks).
VISITORS TO BE HEARD
Mayor Egan asked if there were any visitors to be heard. There was no one present who wished
to speak.
GENERAL DISCUSSION REGARDING PROPOSED 1997 GENERAL FUND BUDGET QUESTIONS
City Administrator Hedges explained the memos in the packet regarding the City's participation in
the Dakota County Economic Development Partnership and distributed an additional memo dated November 18,
1996, written by Assistant to the City Administrator Hohenstein, in response to a question from Councilmember
Wachter. Councilmember Wachter explained his concern about the potential budget implications of today's
spending decisions, for example, paying for additional police officers when grant funds end. After considerable
discussion, the City Council framed an additional question of whether cities were required to belong to the
Partnership to benefit from or to use the GIS services. In other words,can individual cities pay for GIS as a separate
• service and not pay through membership and, if so, what would be the cost? Staff was directed to research these
specific questions and respond with a subsequent memo. Councilmember Masin inquired about the City's Economic
Development Commission's reasons or basis for requesting membership. City Administrator Hedges explained the
difficulty of fairly evaluating the economic benefit of membership given the fact that Eagan had paid a reduced fee
and because of that staff had not actively participated in areas other than GIS.
Mayor Egan expressed a concern that the information regarding clerical staff support doesn't
explain how positions are reviewed. Councilmember Hunter noted that the analysis and recommendations he
expected were not included in the memos. He further explained his desire for a brief return on investment analysis
of clerical positions. Councilmember Awada suggested a comparison of the number of positions five (5) years ago
to the number of positions today. Mayor Egan noted that what employees actually do today has changed
substantially over the years through utilization of technology. He suggested a base zero analysis of employees and
what they are doing and asked if it is appropriate to have the same numbers. Councilmember Hunter noted that in
the private sector, there is a diminishing use of clerical personnel as more employees do not dictate but use E-mail
and type their own memos. City Administrator Hedges explained that staff had evidently missed the previous
direction and had tried to identify existing clerical positions and how those positions function both in traditional
clerical roles and in providing services to the public. He noted that with this additional expectation, a more detailed
analysis and review would be undertaken.
The information regarding the City's training appropriations was determined to be adequate and no
additional questions were raised. City Administrator Hedges noted that while the aggregate number is large, the
total represents approximately 1%of the total budget which is quite low compared to the private sector and industry
standards.
Mayor Egan felt that the information on clothing allowances/uniforms was on target.
Councilmember Awada stated that the uniform survey is not accurate in that certain employees in the surveyed
businesses are required to buy certain items in addition to what is provided by the employer. She feels that in most
businesses, the employees still pay for parts of the required uniforms. Councilmember Hunter stated that there are
• tons of benefits in working for the City, including paid time off, and he can't see giving them more. The City Council
reached consensus that a hold-the-line stance on providing or requiring additional uniforms should be taken.
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November 21, 1996
Consensus was reached that the City take-home vehicles material was adequate. There were no
additional questions and no problems with the existing situation.
Councilmember Awada suggested that the memo on the police building mechanical system noted
oversizing for subsequent expansion to the building as a significant contributor to overbuilding and cost today. She
was unsure why this had been incorporated. City Councilmember Wachter explained that it was done for economic
reasons down the line if expansion becomes necessary. He stated that he has no problem with how the system was
designed and built. Police Chief Geagan also noted that the roof was designed to allow expansion of the second
floor if it becomes necessary at some point in the future. Councilmember Awada stated that she had no interest in
pursuing this issue any further.
General discussion about the cost for MVTA ridership followed. Consensus followed that the
cost/subsidy is an issue which should be pursued,although the 1997 levy is fixed and will be levied either by the City
or by the Metropolitan Council. Councilmember Masin asked that the MVTA be represented at the City Council truth-
in-taxation public hearing.
City Administrator Hedges introduced the signal preemption funding issue by asking Director of
Public Works Colbert to explain his findings regarding potential State financial assistance. Colbert explained that he
will be completing an application for funding from the State in the amount of $150,000 to $200,000. City
Administrator Hedges suggested that the City Council decide how they wanted to fund the signal preemption and
then take the grant or State contribution off the top. Mayor Egan suggested the two most appropriate funding
sources would be 1/2 from the Major Street Fund and 1/2 from the General Fund Fund Balance. He stated a
reluctance to use the Community Investment Fund instead desiring to use those resources on higher profile projects
with a longer life. The City Council concurred with the funding scenario outlined by Mayor Egan.
PROPOSED FIVE-YEAR C.I.P.(1997-2001)
• City Administrator Hedges began the discussion of the proposed C.I.P. by explaining that Part I
contains only Fire Administration projects, including a new fire administration building and a future fire training
center. Fire Chief Jensen presented a site plan and schematic building design along with cost estimates prepared
by Art Dickey of Art Dickey & Associates. General discussion followed covering facility requirements, cost and
construction. Councilmember Wachter inquired about whether or not the needs of the ambulance providers were
programmed into the proposed facility. Fire Chief Jensen responded that they need approximately what they
currently have, including living quarters and two (2)bays for ambulances. Councilmember Awada stated that before
a budget is approved, we need to have this information reviewed. Her calculation is that the projected cost is $110
per square foot and that the basement is too expensive. Councilmember Wachter noted that since there is no land
cost,additional money could be put into the building. Councilmember Awada added that office space can be built for
$70 per square foot and the proposal is a huge amount of money. City Administrator Hedges discussed the City's
experience with a construction manager and said what staff is looking for is a number for the budget to complete
Part I of the C.I.P. Councilmember Hunter asked about using a pre-bid conference, trying to solicit suggestions of
ways to reduce the construction cost. Director of Public Works Colbert explained how the City routinely uses pre-bid
conferences, siting the maintenance facility expansion as an example. Colbert could not remember suggestions that
helped lower overall cost, as most discussion revolved around clarification of the specifications. It was his feeling
that potential bidders try to take advantage of potential areas of savings to enhance their chances of winning the bid
and are reluctant to openly share them. Councilmember Wachter suggested that $1.5 million be placed in the
budget,while Councilmember Awada stated that she thinks that is way too much. Mayor Egan suggested that more
information be obtained regarding the square foot costs, perhaps from Arthur Dickey. City Administrator Hedges
suggested a two (2) part process; first, determine if the City Council desires to move ahead and second, what
process should be followed? He further suggested that someone from the business community who does not have a
conflict be invited to evaluate the project to provide objective outside input. A motion was made by Wachter,
seconded by Masin and passed 4-1 with Awada voting against, to go ahead at a budget of $1.5 million.
Councilmember Hunter asked a question about the balance in the Community Investment Fund. Finance Director
VanOverbeke said that a complete review is underway and a full analysis will be presented to the City Council in the
near future.
City Administrator Hedges began the discussion of the Part II C.I.P. by asking Fire Chief Jensen to
explain the Fire Department's use of the Part II allocation. Chief Jensen responded that the City Council had
recently approved the purchase of a pumper/telesquirt unit which requires all Fire Department allocations through
•
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• November 21, 1996
1999, at a savings. General discussion followed regarding the use of advances and who and how does anyone
benefit from the alleged savings. Councilmember Awada noted that there was an arrangement in place with the
allocation system, including borrowing or advancing and saving and we should stick with the system.
Police Chief Geagan covered the Police Department's Part II C.I.P., noting consideration of the
potential downsizing of squad cars to the Taurus/Lumina size. He stated the plan is to try two(2)smaller vehicles in
1997. Councilmember Wachter stated he is not in favor of getting smaller cars because of the safety issue. Chief
Geagan responded that the smaller cars have not previously had a full frame, although the new ones have better
built frames. The safety issue is not as big a problem as it once was. Councilmember Awada stated that
departments should stick with their allocations and that a comprehensive review of the details is not necessary. City
Administrator Hedges suggested that the management team further study the issue and come back to the Council
with a new program. Councilmember Awada suggested and others concurred that all departments be approved to
spend their 1997 budgeted allocations and not budgeted requests. Director of Parks& Recreation Vraa pointed out
the new program related to the purchase of the trash compactor to be used for maintenance operations in the Park
Department. The City Council concurred with this approach and complimented staff on the expected savings to the
operating budget. Councilmember Awada suggested that the new program take into consideration savings to
operating budgets resulting from C.I.P. allocations and expenditures. Councilmember Hunter suggested more
formal pooling of computer equipment in the MIS Department with distribution of equipment from there to allow better
management. He also felt this method would provide more efficient reaction to changing technology.
Councilmember Awada expressed concern about the cost to buy today's top of the line computers which cost about
twice as much as next year's top of the line. Mayor Egan asked if there is enough money to complete the 1997
Street Department purchases as outlined. Superintendent Erhart responded that through utilization of the carry-
forward, adequate funds are on hand for these purchases. City Administrator Hedges pointed out that the Part II
equipment for water and sanitary sewer had previously been reviewed and that those departments are required to
abide by the same replacement schedule.
• City Administrator Hedges opened the discussion of the Part III (Parks) C.I.P. by noting that the
presentation this year is much more limited in scope. The Part III C.I.P includes only 1997 projects at this point at a
total estimated cost of $985,000. Director of Parks & Recreation Vraa explained the balance in the Park Site
Acquisition and Development Fund. Councilmember Awada suggested that we need to assume that all the money
available is the $2 million in the PSA&D Fund and then decide which projects it will be spent on. Vraa mentioned
preliminary discussions with School District 196 representatives covering the possibility of increased sharing.
Councilmember Hunter noted how people are saying that all governments, including county, city and school, should
be working more closely together. Mayor Egan stated how important creative government has been in the past and
how important it is now. Concern was expressed that any additional sharing result in a positive cash flow and not in
a subsidy. City Administrator Hedges summarized the Part III C.I.P., saying that someone needs to look at park
needs, prioritize them and present that information. This review may need to involve the EAA and should determine
operating cost consequences related to capital decisions. This review should provide concrete direction to the
Director of Parks&Recreation.
EXECUTIVE SESSION
An executive session was held to discuss dispatcher labor negotiations. In attendance were
Mayor Egan, Councilmembers Awada, Hunter, Masin and Wachter, Finance Director/City Clerk VanOverbeke and
City Administrator Hedges.
ADJOURNMENT
The meeting was adjourned at 8:35 p.m.
November 21, 1996 • NI, '
Date ` City Clerk
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