12/12/2005 - City Council Special
MINUTES
SPECIAL CITY COUNCIL MEETING
DECEMBER 12, 2005
5:30 P.M.
EAGAN ROOM ? EAGAN MUNICIPAL CENTER
City Councilmembers present: Mayor Geagan, Councilmembers Carlson, Fields,
Maguire and Tilley.
City staff present: City Administrator Hedges, Assistant to the City Administrator Miller,
Director of Community Development Hohenstein, City Planner Ridley, Director of
Communications Garrison, Director of Administrative Services VanOverbeke and
Administrative Intern Walz.
I. ROLL CALL AND AGENDA ADOPTION
Councilmember Tilley moved; Councilmember Maguire seconded a motion to adopt the
agenda as presented. Aye: 5, Nay: 0
II. VISITORS TO BE HEARD
There were no visitors to be heard.
III. 2006 BUDGETS / RESPONSE TO COUNCIL INQUIRIES
City Administrator Hedges introduced the item noting that the Council raised a few
questions regarding the 2006 budgets this past fall, to which staff is now bringing back responses
for Council discussion.
City Administrator Hedges summarized the proposed consulting services/fees for the
Technology Working Group. It was noted that the originally proposed budget allocation of
$49,500 for consulting services to conduct a business feasibility plan and engineering study has
since been reduced to $21,500. The City Council requested that when the feasibility plan and
engineering study are completed, that staff also present to the Council the operating and
marketing expenses associated with the plan.
City Administrator Hedges provided an overview of the 2006 health insurance costs for
the City. Hedges also highlighted the findings of the Joint Health Insurance Committee of the
High Performance Partnership (HiPP) Project with communities in Dakota County. Hedges also
added, that while consulting is currently underway with the joint health insurance committee, the
City remains on its own with regard to health insurance coverage.
City Administrator Hedges summarized questions the Council previously raised with
regard to the General Fund fund balance. Hedges noted that at the August 9, 2005 Special City
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December 12, 2005
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Council meeting, the Council requested a detailed report on how the fund balance has increased
and what funds are included in the State Auditor?s calculation of the fund balance. Hedges
provided a summary of the differences in how the City and the State Auditor?s office define the
fund balance. The City Council discussed the use of the fund balance to pay off existing debt.
Director of Administrative Services VanOverbeke summarized the various uses of the fund
balance and the impact of the fund balance on City bond ratings. The City Council directed staff
to review the CIP and existing debt to provide options to the City Council on how the fund
balance could be used for purchases and/or debt payoff. The Council requested that this
information be presented in increments, i.e., what expenses could be paid off with the fund
balance if the City preserved a 39 percent fund balance, 38 percent, etc.
City Administrator Hedges provided an overview of the difference between the 2004
Community Center budget actual numbers and the 2004 budgeted numbers.
Mr. Hedges noted that the final consideration of the 2006 General Fund Budget will take place at
the December 20, 2005 City Council meeting.
IV. PRELIMINARY REVIEW OF 2006 CDBG APPLICATION
City Administrator Hedges introduced the item noting that the US Department of
Housing and Urban Development (HUD) provides block grant funding for programs that
conform to national objectives and eligible activities that meet Community Development Block
Grant (CDBG) Program regulations. Hedges added that the City of Eagan?s CDBG allocation is
administered through a subrecipient agreement with the Dakota County CDA. Hedges noted that
Eagan?s fiscal year 2006 available funding amount will be approximately $215,500, an estimated
10 percent reduction from the 2005 CDBG funding level.
Director of Community Development Hohenstein summarized the uses of the 2005
CDBG funding and presented a list of proposed items for CDBG funding in 2006. There was
City Council consensus to allocate $11,000 to Youth and Family Development Services, $25,000
to a park structure in Carnelian Park, with the remaining balance of the funding going towards
the Cedar Grove Redevelopment Area, which will include funding towards acquisition,
relocation, and demolition.
The City Council briefly discussed a Rental Housing Inspection Pilot Program. The
Council requested that staff provide the City Council with a summary of the rental housing
programs currently in place in other communities, including the City of Burnsville.
Community Development Hohenstein noted that a resolution regarding the 2006 CDBG
funding will be brought back to the City Council at the December 20, 2005 City Council
meeting.
V. CONVENIENCE GAS CANOPY SIGNAGE
City Administrator Hedges introduced the item noting that the Council formally
discussed this item at the September 20, 2005 and November 1, 2005 City Council meetings.
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Hedge noted that the City Council previously requested the City Attorney research whether LED
canopy signage could be restricted to gasoline prices only. Hedges added that the attorney has
stated that canopy signage can be restricted.
Community Development Director Hohenstein provided an overview of the attorney?s
findings and the options available to the City Council.
Tom Nelson from IdentiGraphics addressed the Council and noted that the locations
where they are requesting the canopy signage is at gas stations that currently do not have their
own pylon signs.
The City Council discussed the request of Mr. Nelson. There was City Council
consensus to support the current code interpretation that does not allow gas station canopy
signage other than corporate names and logos. The Council directed staff to work with Mr.
Nelson to attempt to improve the signage at the locations of his gas stations by working within
our current City ordinance. Per the direction of the Council, staff will follow up on the City
Attorney?s recommendation to amend the City Code to formally codify that interpretation.
VI. ARCHITECTURAL EXTERIOR DESIGN STANDARDS FOR
COMMERCIAL/INDUSTRIAL DEVELOPMENT
City Administrator Hedges indicated that, at the request of the City Council, a draft
ordinance regarding exterior design standards for commercial/industrial development has been
drafted by the staff and Advisory Planning Commission. Hedges added that this item is intended
as a check point to determine how the City Council would like to proceed.
Upon discussing the draft ordinance, the City Council directed staff to proceed with the
ordinance amendment process, beginning with formal APC consideration.
VII. BUILDING SIZE/SCALE STANDARDS
City Administrator Hedges introduced the item noting that Councilmembers have asked
that information be gathered pertaining to building size and scale. Director of Community
Development Hohenstein summarized the research that staff conducted, including other cities?
bulk standards. Hohenstein added that bulk standards include minimum building and parking
setbacks, green space, off-street parking and maximum building coverage and height.
The City Council discussed options associated with the City?s bulk standards. There was
City Council consensus that the City should limit the square footage of buildings in areas zoned
as Neighborhood Business (NB). The Council added that if a developer was seeking additional
square footage, the developer could ask for a Conditional Use Permit. The Council suggested
that the APC consider setting the maximum size for a building in the NB district at 25,000 s.f.
and that buildings larger than that would require a CUP.
The City Council directed this item to the APC for consideration of an ordinance
amendment to Chapter 11.
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VIII. CEDAR GROVE REDEVELOPMENT DISTRICT ? REVIEW CEDAR GROVE
REDEVELOPMENT PLANS / SCHAFER RICHARDSON
City Administrator Hedges introduced the item noting that the purpose of tonight is to
review a presentation regarding the proposed redevelopment plan for the Cedar Grove
Redevelopment District core area, to review the proposed Tax Increment Financing
Development Agreement, and to identify any additional information that may be necessary in
order to consider the plan and agreement at the public hearing on the December 20, 2005 EDA
agenda. Hedges added that the product being considered tonight is a result of many meetings by
City Council and Cedar Grove stakeholders over the past few years. Hedges also added that a
neighborhood meeting was recently held on December 8, 2005 regarding the proposed plans.
City Administrator Hedges recognized the consultants and interested parties in the audience.
Community Development Director Hohenstein briefly overviewed the activities
associated with the Cedar Grove Redevelopment to date and referred the City Council to the deal
points in the packet that summarize the development agreement. He introduced David Frank of
Schafer Richardson, as well as the other consultants working on the Cedar Grove Redevelopment
Project who were in attendance.
David Frank of Schafer Richardson presented a proposed concept plan for the Cedar
Grove area. Mr. Frank noted that per the direction of the City Council, Ryland Homes is
currently customizing their proposed product for the area to meet the Cedar Grove District
Standards for architecture and finish materials. Mr. Frank also highlighted the proposed phasing
of the projects, while noting that the phasing is dependent upon property acquisition, market
forces, etc. and therefore the timing of the phasing could change.
The City Council discussed the proposed plan and phasing.
Director of Community Development Hohenstein summarized the City?s approach to
property acquisition in the Cedar Grove area. Hohenstein also provided a summary of feedback
received from the neighborhood meeting held on December 8.
The City Council discussed water features and public places within the area. The
Council asked if it would be possible to add a water feature (e.g. fountain) to the holding ponds
along Highway 13. Director Hohenstein noted that he would inquire into the water feature,
including the cost, with Public Works Director Colbert.
The City Council discussed the financing of the affordability components within the
project area. Director Hohenstein summarized how the City and the developer reached the 20
percent affordability mark. The City Council voiced their hope that the public places within the
project stay intact throughout the phasing of the project. Director Hohenstein noted that each
phase of the development would come through the City?s regular development process for
consideration.
The Mayor and City Council thanked the consultants for their work on the project.
Mayor Geagan noted that a public hearing on the proposed plan and proposed Tax Increment
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Financing Development Agreement will take place at the December 20, 2005 City Council
meeting, under the Economic Development Authority (EDA) agenda.
IX. OTHER BUSINESS
There was no other business.
X. ADJOURNMENT
Councilmember Maguire moved; Councilmember Tilley seconded a motion to adjourn at
7:405 p.m. Aye: 5; Nay: 0