03/12/1991 - City Council Special
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MINUTES OF A SPECIAL MEETING OF THE
EAGAN CITY COUNCIL
Eagan, Minnesota
March 12, 1991
A special meeting of the Eagan City Council was held on Tuesday, March 12, 1991 at 5:30 p.m.
in the lunchroom of the Municipal Center building. Present were Mayor Egan, City Councilmembers
Gustafson, McCrea, Pawlenty and Wachter. Also present were Director of Community Development
Runkle, Director of Public Works/Engineering Colbert, Director of Parks & Recreation Vraa, Police Chief
Geagan, Fire Chief Southom, Director of Finance VanOverbeke and City Administrator Hedges.
DRAFT 1991/1995 CAPITAL IMPROVEMENTS PROGRAM
City Administrator Hedges reviewed funding source options for those projects that are identified
in the draft five-year capital improvements program (1991-1996). He briefly reviewed the proposed capital
improvements program budget stating that each project is supported by a special study, such as the
needs analysis that was recently completed for the Municipal Center Law Enforcement Building, Master
Planning for fire stations and parkland development studies and many other improvements relating to the
community's infrastructure. The City Administrator presented, for discussion purposes, the draft five (5)
year CIP expenditures and funding sources by category, including: Category I) expenditures that are
financed from funding sources including community investment funds, GO bond referendum, general fund,
equipment revolving, park site fund and grants and Category II) projects that are financed from special
assessments, major street construction, user fees and franchise fees. He reported a grand total of the
five (5) year CIP at $45,424,042, which represents expenditures proposed in the Category I at
$21,874,993, while Category II is the difference or $23,549,049.
Director of Finance VanOverbeke explained funding restrictions by revenue source which include
community investment fund, GO bond referendum, general fund, equipment revolving fund, park site
acquisition and development fund, grants, special assessments, major street fund, user fees and franchise
fees. City Administrator Hedges reviewed public policy issues that were related to the proposed CIP that
require direction by the City Council. As an example, projects that were identified in Category I, for the
most part, would either be financed through the community investment fund or a GO bond referendum.
The total of these projects is $16,018,500 and assuming availability in the community investment fund of
approximately $4.8 million, a significant GO bond referendum would be necessary to fund all the projects.
He further reviewed public policy decisions which include the prioritization of certain capital needs, which
capital programs should be financed by the community investment fund and which should be financed
by a bond referendum and a schedule which ranges from beginning construction of the highest priority
in 1991/1992 to a delay of the capital projects in 1993 through 1995 or beyond this five (5) year CIP.
Mayor Egan expressed his appreciation for a detailed explanation and information as prepared
by the City Administrator as a result of the February 28, 1991 work session when City Council first
reviewed the formal draft 1991-1995 capital improvements program. City Councilmember Gustafson
stated a need for creating a balanced park system which includes an ice arena and outdoor swimming
pool in addition to the traditional parkland improvements that include athletic fields, neighborhood parks
and other open space. He expressed a need to re-prioritize the overall parkland development in order
to balance parkland facilities for the community. City Councilmember McCrea suggested that an ice arena
and outdoor swimming pool could be self-supporting for operational expenses and further suggested a
creative review of all funding sources to consider financing the proposed ice arena/outdoor swimming
pool. City Councilmember Pawlenty expressed a concern about the increase in property taxes and how
the public might react if certain capital projects are authorized that could generate more general fund tax
burden due to operational expenses. Mayor Egan suggested that the City consider a lease back proposal
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March 12, 1991
for Fire Station #6 as suggested by Opus Corporation as an alternative method of financing. City
Councilmember Gustafson suggested that the City contact our school districts to review their schedule
for bond referendums and explore the potential for combined City/school referendum as it relates to the
City's capital projects that are identified for funding as a result of the GO bond referendum issue. Mayor
Egan expanded on City Councilmember Gustafson's comments, stating that there is a similarity between
City and school programming for Parks & Recreation which is reason for contacting the school districts
to explore joint facilities. City Councilmember Gustafson further indicated a desire to explore a bond
referendum as a method of financing the third community athletic complex. City Councilmember Pawlenty
asked about the time table in financing the CIP. The City Administrator responded by indicating a desire
to adopt 1991-1995 capital improvements program by June of this calendar year. The City Administrator
further indicated that each year the capital improvements program would be modified as part of the
general operating budget for the next year. City Councilmember Wachter stated he is in support of
formalizing a five (5) year capital improvements program, however, with the legislative uncertainty of
increased property taxes and decreasing local government aids, he has concerns about constructing an
ice arena without voter approval. City Councilmember Gustafson also stated his support for the capital
improvements budget as presented as a working document. Other City Councilmembers agreed that the
capital improvements program, as presented, is an excellent working document and once staff has an
opportunity to further modify the funding scenarios, it will be used as a guideline and be proposed for
adoption during the summer of 1991.
City Councilmembers further discussed the probability of financing certain capital projects from
the community investment fund as opposed to using general obligation bonds which requires a bond
referendum. There were a number of advantages and disadvantages discussed.
City Councilmember Wachter asked Chief of Police Geagan to explain law enforcement needs which
is a vital part of the proposed capital improvements budget. Chief Geagan stated that the existing
building was designed and occupied with a ten (10) year expectation and the department is now
experiencing its thirteen year in the building. He further indicated that most operational areas are
extremely tight causing inefficiencies in day-to-day operations. City Councilmember McCrea asked if the
expansion does not occur during 1991-1993, what are the implications for police services. Chief Geagan
responded that each year the Police Department continues to expand its personnel and operations to
correspond to an increasing residential population and expanding employment base. He stated that
eventually the Police Department will suffer as a result of inefficiencies, lacking an adequate work space.
City Councilmember Pawlenty suggested the City staff consider lease space for certain administrative
operations, allowing the Police Department to expand in the existing building. City Councilmembers asked
that staff consider leasing space as an option, however, expressed a desire to consolidate its services
at one location and further that leasing is not always a cheaper alternative.
Mayor Egan suggested that the City Council provide some specific direction to the City Administrator
for finalizing a draft five (5) year CIP. City Councilmember Pawlenty suggested the fire station
improvements be considered in 1992, more than likely as a bond referendum. He further suggested that
any further consideration for financing the ice arena be held up until a final committee report is received
and that park improvements be financed as indicated in the existing CIP document. Mayor Egan
suggested that the law enforcement expansion be considered with the fire station referendum as a
multiple question. He further suggested that the City talk to all three (3) school districts about an Ice
arena/pool consolidated bond referendum. City Councilmembers also suggested that the YMCA proposal
may provide part of the solution for the park facility needs and could help reduce the cost of a proposed
ice arena/outdoor swimming pool. Mayor Egan suggested that the capital improvements funding column
include space for private contributions, including schools, foundations and other revenue sources. City
Councilmember McCrea stressed to the City Council and staff that our community and the school districts
continue to consolidate needs to lessen duplication of facilities.
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March 12, 1991
Mayor Egan summarized the proposed capital improvements budget stating that the draft 1991-1995
CIP is a working document and directed the City staff to continue its research and refinement at a future
City Council workshop.
PERSONNEL COMMITTEE RECOMMENDATION/GIN KNIGHT
City Councilmember Gustafson stated that the Personnel Committee has reviewed a request by Gin
Knight that the City of Eagan reimburse a surrender fee in the amount of $3,151.26 that IDS required as
a result of her moving deferred compensation funds to the approved ICMA fund. He further stated that
the Personnel Committee has reviewed all the facts and feels there has been a great deal of
misunderstanding on everyone's part over the past fifteen (15) years and due to Gin Knight's long-time
employment status and dedication to the community as a 241 year employee, has recommended that
the City allocate $3,151.26 to her ICMA deferred compensation account. In a motion by Mayor Egan,
seconded by City Councilmember McCrea, the City Administrator was directed to place this item on the
March 19, 1991 City Council agenda for ratification.
OTHER BUSINESS
There being no further business, the meeting was adjourned at approximately 9:15 p.m.
TLH
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March 12. 1991
Date City Clerk