Loading...
10/22/1991 - City Council Special MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota October 22, 1991 A special meeting of the Eagan City Council was held on Tuesday, October 22, 1991 at 5:00 p.m. in the lunchroom of the Eagan Municipal Center building. Those present were Mayor Egan, Councilmembers Gustafson, McCrea, Pawlenty and Wachter. Also present were Police Captain Aszmann, Director of Parks & Recreation Vraa, Director of Community Development Runkle, Director of Public Works Colbert, Director of Finance VanOverbeke, Recycling Coordinator Hageman, Assistant to the City Administrator Hohenstein and City Administrator Hedges. The purpose of the meeting was to allow a presentation by the Solid Waste Abatement Commission regarding results of the Environmental Quality. Survey, to review further recommendations for the draft 1992 general fund budget and to review a proposal to designate the new legislative district boundaries and the revised voting precinct boundaries within the City of Eagan. City Administrator Hedges also stated that a course of action would have to be discussed at the end of the meeting regarding a recent flushing of tanks at the new water treatment plant, inadvertently causing a sewage discharge problem for approximately five (5) homes adjacent to the facility. ENVIRONMENTAL QUALITY SURVEY Kris Hageman, the City's Recycling Coordinator, along with six (6) members of the Solid Waste Abatement Commission including its Chair Dennis Seiz, Ken Ische, Terry Davis, Terry Jacobs and Craig Seim reviewed the Environmental Quality Survey that was distributed to businesses throughout the community as a waste management survey during the spring of 1991. Councilmembers commended the Solid Waste Abatement Commission for its ongoing work, and more specifically, the survey. There were a number of questions raised regarding the type of questions and responses to the questions in the survey, and a further reference was made about support for a recycling fee. City Councilmembers also had questions regarding education of residents on certain recycling efforts and again expressed appreciation for the survey. City Councilmember Pawlenty emphasized his desire to see more education on household toxic wastes and the type of plastics that can be recycled. City Councilmembers made reference to the various mandates that were presented in the survey before thanking members of the Solid Waste Abatement Commission for their commitment to the recycling effort. PROPOSED 1991 GENERAL FUND BUDGET City Administrator Hedges reviewed topics for consideration that relate to the status of the proposed 1992 general fund budget. He stated that the draft budget document should include $245,000 for fire equipment, therefore adjusting the total of the equipment revolving fund to $708,400. City Administrator Hedges stated that direction will be necessary regarding how the equipment revolving fund is to be funded in 1992 and further, a funding level should be established at the next workshop session to finalize the 1992 general fund budget. City Councilmembers stated that the main funding Issue is whether to use equipment certificates exclusively in 1992 or allocate all or a portion of the $262,913 equipment revolving fund balance for vehicles/heavy equipment approved and purchased in calendar 1992. City Administrator Hedges stated that the equipment revolving fund will be reviewed in further detail along with a finalization of the five (5) year capital improvements program at the November workshop. Director of Finance VanOverbeke, in response to questions by the City Council at a previous meeting, reviewed the impact fiscal disparities has had on the amount of property tax required to finance local government services and the local tax capacity rate. He stated that there are a number of variables which affect any particular city contribution and distribution of the fiscal disparities program. Director of PAGE 2/EAGAN SPECIAL CITY COUNCIL MINUTES OCTOBER 22, 1991 Finance VanOverbeke explained how fiscal disparities is calculated and because the counties use lags and value and tax rates for timely administration as well as final adjusted values, he explained it is difficult for any city to follow through the process. He further stated that he will work with Dakota County to gather the necessary material to provide answers to the Council's questions about the current impact of fiscal disparities. Director of Finance VanOverbeke reviewed the results of a utility rate survey, that was also requested by the City Council, stating that the comparison cost with several other cities is difficult to evaluate without analyzing interdepartmental transfers, bonding status and other related costs. to determine if the rates are a fair comparison. City Administrator Hedges presented the draft 1992 public enterprises budget, stating that personnel is recommended at the 1991 level, there are no new programs and further that any increase to the sanitary sewer, water and storm sewer utility budget is due to inflation and growth of the system. City Administrator Hedges reported that the City Engineers Association is requesting legislative authority for the local transportation utility. Director of Public Works Colbert presented a concept for a local transportation utility further stating that this type of utility revenue would provide an alternative source of funding for cities to keep up with replacement/repair needs of their transportation infrastructure. He further stated that the City Council has discussed an alternative to special assessments for redevelopment and reconstruction of streets and the transportation utility provides that funding option. City Administrator Hedges stated that direction by the City Council to support a local transportation utility authority would allow for a presentation before a mini-legislative session on October 29 or 30 and further that official action would be required by the City Council for implementation if the authority Is granted by the State Legislature. City Councilmember Gustafson supported the concept as an important alternative for financing street improvements both for on-going and future construction and volunteered to represent the City Council, along with the City Administrator and Director of Public Works, at the legislative hearings scheduled for Wednesday, October 30, at the Woodbury City Hall. City Councilmembers were in consensus that the City should pursue a legislative authority for a local transportation utility that could be used for preserving and reconstructing City streets throughout the community. City Administrator Hedges presented additional reduction options for draft 1992 general fund budget stating that due to inflation and community growth coupled with reduction in local government aids, limitations on property tax and decreasing revenues associated with new development, most line- item expenditures have been reduced as far as possible. He further stated that further reductions will impact service delivery objectives causing inefficiencies and a net loss of service to the community. The City Administrator reviewed additional budget reductions, including a one percent reduction in the proposed personal service allocation for 1992, a reduction in the City's match for fire relief due to the additional State funding, elimination of capital for a parking lot expansion on the west side of the municipal building and the reallocation of other expenses, such as auditing costs, a delay in the hiring of police officers for 1992 and other related actions that provide a total general fund net reduction in the amount of $121,010. The City Administrator further stated that this adjustment includes an increase in insurance allocation and the reinstatement of a contingency budget in the amount of $50,000. City Councilmembers discussed the draft general fund budget and expressed concern that the operating budget, as proposed, is not keeping pace with either inflation or growth in service delivery demands without an additional infusion of revenue or a downsizing of local government services. City Councilmember Pawlenty stated that the quality of service delivery will be reduced unless the amount of local government services are reduced or revenues are allocated to continue services at the present funding level. PAGE 3/EAGAN SPECIAL CITY COUNCIL MINUTES OCTOBER 22, 1991 City Councilmembers and staff further discussed the pros and cons of furthering privatization and reliance on contractual services as an option to downsizing the reliance of fuN-time staff to provide City services. City Administrator Hedges stated that the employment base for providing delivery of service has historically been and continues to be small with a heavy reliance on privatization and contractual services. After further discussion, City Councilmembers agreed that additional studies should be made to determine what services might be candidates for privatization and, more Importantly, what Is the impact on the community both in the cost savings and service delivery it privatization is considered for other services. Mayor Egan concluded discussion on the proposed 1992 budget, including general fund, public enterprise fund and capital equipment and thanked the staff for their presentation and recognized that the City Council will again review the final revisions including the five (5) year CIP at their November workshop session in preparation for the truth-in-taxation hearings scheduled for early December. REDISTRICTING AND REVISED PRECINCT BOUNDARIES Director of Finance VanOverbeke reviewed the proposed redistricting boundary lines and each of the twenty precincts as prepared by staff. He further explained the status of court action that will determine the new House and Senate boundaries which could impact the information that was presented for both redistricting and precinct boundaries. City Councilmembers raised a number of questions regarding certain boundary lines for precincts and further what would happen if a redistricting boundary line is changed as a result of the court action. The Director of Finance explained that the information as presented is preliminary and a final plan acknowledging input by the City Council will be presented for a formal ratification later pending the outcome of the court action. NEW WATER TREATMENT PLANT/SANITARY SEWER DISCHARGE ISSUE Director of Public Works Colbert reported on a problem that occurred on Friday, October 18, to several residents located on Lakeside Drive and Lakeside Circle as a result of flushing tanks at the water treatment plant. He stated that the chemical potassium promaginate, which is used in the water filtration process and concentrated iron deposits, were in the large tanks at the new water treatment plant and the contractor included a north sanitary sewer line that flows toward Lakeside Drive in addition to a sanitary sewer main that flows toward Cliff Road to expedite the discharge of water. Director of Public Works Colbert further stated that the sanitary sewer main located to the north of the treatment plant is designed for residential discharge and as a result of added pressure, floor drains at lower elevations in approximately five (5) residential dwelling units backed up and water, debris and the chemical potassium promaginate caused flooding in basements of the residences. Both City Councilmembers McCrea and Wachter reported that Glen Christianson, whose home was impacted the most, had informed them of the problem over the weekend and took the opportunity to review the water damage that had occurred in the lower level of their home. Director of Public Works Colbert stated that the insurance companies had been notified and the question to the City Council is whether the City should provide assurance to the residents that certain costs above the settlement value by the insurance company will be guaranteed as a matter of public relations. City Councilmember McCrea stated that homeowners should not be responsible for any payment for the replacement of floor and wall coverings, furniture or any other household improvements or goods impacted by the flooding. City Administrator Hedges stated that the City is working with its insurance carrier as well as the insurance carrier for the contractor regarding this claim. In a motion by City Councilmember Wachter, seconded by Councilmember McCrea, all members voting in favor, the City Administrator and Director of Public Works were directed to assure proper replacement for any damage that was sustained as a result of the October 18 water treatment plant discharge for the PAGE 4/EAGAN SPECIAL CITY COUNCIL MINUTES OCTOBER 22, 1991 five (5) properties and pursue financial restitution through the properties' insurance company and both the City's insurance carrier and the insurance company for the contractor. OTHER BUSINESS There were no other items for further business. ADJOURNMENT The meeting was adjourned at approximately 7:45 p.m. TLH October 22. 1991 Date City Clerk