Loading...
11/23/1987 - City Council Special MINUTES OF A SPECIAL CITY COUNCIL MEETING Eagan, Minnesota November 23, 1987 A special meeting of the Eagan City Council was held on Monday, November 23, 1987 at 5:30 p.m. at the Eagan Municipal Center Building. Present were Mayor Blomquist and City Councilmembers Egan, Smith, Ellison, and Wachter. Also present were City Administrator Hedges and Administrative Assistant Hohenstein. JOINT CITY COUNCIL/CABLE COMMISSION MEETING City Administrator Hedges indicated that the Council would be asked to address three items related to the Joint Cable Commission including the apparent matter of alternatives for public access programming production, the 1988 Cable Commission budget and the hiring of a cable staff position to replace the cable administrator. Hedges introduced Tom Creighton of O'Connor and Hannon, the Joint Cable Commission's legal counsel. Creighton indicated that he wished to review some background issues pertaining to local access and the current situation. He stated that Hauser, the current owner of the cable franchise, indicated at the time of the system's sale, that he wished to divest local access programming from the obligations of the franchise. He said that local access included all public, educational and governmental channels and programming. He indicated that the 5% franchise fees and local access availability were considered fair compensation from the company for relatively exclusive use of public right-of-ways and easements for the operation of a for-profit business. He stated that cable companies were willing to agree to these arrangements to acquire franchises in the early years of the industry. Among the types of local access, he indicated that government access has developed well in Eagan, educational access has not been developed to any degree and that pure public access is developing but is expected to do so slowly. He stated that in the aftermath of the original franchising process, cable companies began to reassess the conditions under which they provide cable service. In particular, he said that companies do not like local access programming because it draws money away from the profit-making portions of the business. He stated that municipal governments typically don't want to manage public access either for personal, practical or philosophical reasons such as avoidance of the appearance of censorship of a particular medium. Creighton stated that cable companies also wish to minimize their public access responsibilities because it is an area which results in significant complaints and problems for the company. Creighton stated that the key issue is to determine whether the Burnsville and Eagan City Councils continue to believe that public programming is important and if it is important, is it important enough to keep. He said that because the company wishes to get out of the public access obligation, it implies that if the Council wishes to keep access, it should address how it is to be managed. Special City Council Minutes November 23, 1987 Page Two Creighton stated that there are numerous options. He said one is to insist on the status quo because it is part of a contract between the two communities and their cable provider. Ellison asked if there wasn't an enforcement mechanism to require continued provision of public access by the company. Creighton stated there was a requirement within the franchise agreement but that the absence of a definable product or meaningful bottom line means that enforcement is difficult. He also stated that federal challenges to local access our working their ways through various courts. He indicated that the current decisions are contradictory and none seem to be controlling at the present time. He stated that the key issue in the courts is a first amendment challenge versus the idea that public access is a reasonable exchange for a near monopoly franchise. Creighton stated that there are alternate means of providing local programming which include non-profit corporations, municipal ownership or a straight subcontracting of the obligation by the franchisee. He further stated that his advice is that councils and commissions may wish to reserve judgment on the particular types of programming entities and see what proposal is forwarded by the Company. Regardless of what entity is chosen, Creighton stated that the company should be required to at least fund the entity at the same level they agreed to support local programming in the franchise. Therefore, he said that the primary funding source ought to be the Company with secondary funding sources including partial franchise fees, being foundations, grants and other sources. He stated that he anticipates the Company to send out parts of proposals in December and January to gauge response from decisionmakers and that actual negotiations may begin in January or February. He asked that the Council-give the Cable Commission adequate latitude to negotiate on behalf of the two cities, in exchange for which the commission will attempt to over- communicate the direction of negotiations and their intentions in that regard. Mayor Blomquist asked Cable Commission Chair Paul Wood for his opinion in regard to public access. Wood responded that the philosophy of the Burnsville Eagan franchise was to provide a cable communications system not just a television system. He said that unless this philosophy has substantially changed, it would be ill advised that local programming is no longer important. He further stated that it was required in the franchise because it was anticipated that it would not occur naturally due to ratings or commercial demand. Creighton stated that some commissions are considering the possibility of an adverse decision in the courts and view these negotiations as the opportunity to get as much as possible before a negative decision is rendered. Ellison asked if the Company might be free to overturn a new contract if provision of the service is found unconstitutional. Creighton responded that any contract would need to be structured in a fashion to minimize that possibility but that it was still a possibility. He further stated that he anticipates it to be an issue which Burnsville and Eagan must approach together because the system is not divisible based on its physical structure. fl. 1J Special City Council Minutes November 23, 1987 Page Three Hedges asked Creighton how he would view staffing of the Commission in the immediate future. Creighton stated that the cable staff probably need not be as administratively oriented as it has been in the past. He stated that a need exists for substantial organization during the negotiation and implementation phase of the public access issue and that certain communications needs could be met for both cities by an individual with greater technical expertise. He stated that ultimately, he anticipated that both cities would have a communications specialist who would support the individual cities on matters of not only cable production but other communications such as newsletters, press releases, promotions and the like. The Council indicated general support of the concept of allowing the Cable Commission to proceed with negotiations on behalf of the City provided that substantial communication is maintained between Commission and Council on a regular, progress basis. Mayor Blomquist indicated that while Chair Wood was present she wished to address several issues. She indicated that she had received requests that the cable cast be extended to include the full agenda for all councils and commissions. Wood indicated that he would bring that before the Commission. Blomquist also requested that microphone extensions be located for all mike locations in the Council Chambers. In that regard, she indicated that staff should request a review of the Council Chamber by the Burnsville Cable Consultant. Mr. Creighton left the meeting at 6:40 p.m. The Council next took up the joint cable commission budget. City Administrator Hedges asked Administrative Assistant Hohenstein to review the budget for Council consideration. Hohenstein outlined the assumptions which went into the budget preparation and format. He also reviewed cash flows as they pertain to the different funds established under the budget and the development of trust funds for cable franchise fees to be established by each city. He then itemized certain line items and categories of the Cable Commission budget and local programming budget as presented. Ellison asked if there were any major changes from the original budget which had been reviewed by the Council. Hohenstein responded that the major capital items with specific use and benefit by particular cities had been removed but that the remaining items were substantially consistent with the original budget. He stated that the number of line items have been substantially reduced and that the many items were included within the condensed version before the Council. He also stated that a substantial advertising and promotion budget had been included in the local programming budget to help develop interest in and activity for a local programming entity regardless of its form. He stated that the nature of the local programming entity chosen could result in a budget amendment but that the two budgets as presented represent the best available and the anticipation of need as originally developed by Mr. Campbell and reviewed by City staff. Smith indicated that the two budgets as presented did not raise substantial questions but that the independent management of the newly established trust funds raised questions as to the original intent of Special City Council Minutes November 23, 1987 Page Four franchise fee mangement. Smith stated that the fees were intended to flow to the cities and then directly to the Commission without an intervening mechanism. He stated that he had originally argued for fees to flow directly to the Commission and that Burnsville's manager had indicated a need to control the purse strings at the municipal level. He said that the compromise was to have them flow through the cities to the Commission but that it was never intended for the cities to expend funds independently. Wood stated that the Burnsville perception resulted from the new manager and new mayor since decisions were made on the original franchise. He stated that it's very important that the cities approach this in a uniform manner and suggested additional direct discussion with the Burnsville City Council. Hedges stated that it was important that joint discussions by the Council or selected members of the Councils be entered into before any of these funds are expended. Smith agreed, stating that the original intention was to remove the Councils from the temptation to use fees for what could be interpreted as non cable-related items and to introduce the Cable Commission into the decision structure as a means of determining cable relatedness. Council took no official action on the budget but forwarded it to the Commission for consideration at its next meeting. The issue of replacing the staff position on a full-time basis was next discussed. Hedges indicated that the demands of cable could not be absorbed by current staff without substantially reducing staff attention to other duties. Wood stated that the issue of cable staff had been raised in the past and that on each occasion, the Commission had determined that a full- time staff persons was necessary. Hohenstein reviewed several reasons why a staff position was required including the substantial commitment of time necessary for the public access negotiations, the potential for future issues of a similar magnitude due to the deregulation of the industry as a result of the Cable Act, the existence of numerous issues including the development of educational access, the improvement of government programming and the futher development of certain franchise required system elements and the necessary communications between the commission, councils and public as the system continues to mature. Upon motion by Mayor Blomquist, seconded by Smith, with all members voting in favor, the Council directed staff to advise the Burnsville City Council of the need to hire a new cable staff position, to prepare any job description based primarily on technical skills and secondarily on administrative skills, and to advertise the position with a sunset window of one to three years in anticipation of changes with the structure of the commission and the industry. PUBLIC ENTERPRISE (UTILITY) BUDGET The City Administrator presented a draft 1988 Public Enterprise Budget that includes expenditures/revenues for sewer and water utilities and street lighting. He stated that the major capital expenditure in the Water Department budget is a cost of $800,000 for the construction of a four million gallon reservoir to be located at Lexington Avenue and Diff ley Road. The City Administrator further stated that the main increase in the sewer utilities is waste removal which represents a proposed amount to be paid to the Metropolitan Waste Control Commission for the treatment of sanitary sewage. Special City Council Minutes November 23, 1987 Page Five City Administrator Hedges stated that the Director of Public Works is proposing two (2) new employees for the utility division. A maintenance employee to assist in the expanding sanitary sewer and storm sewer preventative maintenance cleaning program and a sewer maintenance supervisor are both recommended. The City Administrator provided a breakdown of all proposed expenditures, including additional capital outlay that is proposed by the Director of Public Works. The City Administrator reviewed the proposed expenditures and revenues for the streetlighting utility. He reminded the City Council of the arrangement whereby a developer and utility company install all streetlight standards as a part of the development agreement and once the subdivision is turned over to the City for perpetual maintenance, a bill is received from the power companies for electricity consumed from residential streetlights. The actual cost for electrical consumption, in addition to a small fee for administration, is billed to residents who benefit by the streetlight standards. Director of Finance VanOverbeke was present and reviewed the proposed receivables for all three (3) utilities. There were a number of questions raised regarding depreciation, the proposed 1988 utility rate structure, and other related concerns. After a final review, it was determined by the City Council that the proposed Public Enterprise Fund Budget, including water, sewer, and streetlighting utilities, be presented for final ratification at a December City Council meeting. RECAP/PROPOSED 1988 GENERAL FUND BUDGET City Administrator Hedges reviewed all budgetary adjustments that were made at the last workshop session held on September 13. He stated that the final general fund budget that was represented at the September public hearing in October mill levy certification, is $8,652,100. He further represented that this budget amount includes changes that were directed by the City Council consisting of the space needs analysis study reduction from $15,000 to $5,000; the delayed hiring of a Community Development Director April 1 instead of January 1; the elimination of the half-time custodian position; the elimination of the full-time fire chief position, the Fire Department clerk-typist position increase from half-time to full-time; the elimination of the paver/grinder, sign truck, and street sweeper; and the increase in the contingency by $1,470. The City Administrator stated that total budgetary reductions are $214,000, resulting in the $8,652,100 budget. FEE SCHEDULE Director of Finance VanOverbeke reviewed the proposed changes to all fees that are charged by the City for various services. He stated that those changes in the fee schedule that are approved by the City Council would become effective January 1, 1988. After a detailed review of all fees with various questions by the City Council, it was recommended that the fee schedule be placed on the December 1, 1987 City Council agenda for further consideration and ratification. Special City Council Minutes November 23, 1987 Page Six EAW/EAGAN HIGH SCHOOL & DAKOTA HILLS MIDDLE SCHOOL PROJECT The City Administrator presented a resolution confirming the City of Eagan's commitment to resolve water-quality-related issues of the Eagan High/Dakota Hills Middle School grading and construction activity. He stated that the proposed resolution reaffirms the City of Eagan's commitment to protecting and maintaining City water bodies and makes every reasonable effort to address the Fish Lake water quality issues that will be raised by the high school and middle school construction. City Administrator Hedges stated that the resolution is a requirement to satisfy water quality concerns that were raised by the Minnesota Pollution Control Agency. After a review of the resolution, City Councilmember Smith stated that a letter should include the fact that the Dakota County Soil and Water Conservation District has been retained to assist the City of Eagan in ensuring protection and maintenance of area water bodies and enhancing water quality with respect to development issues related to erosion and grading matters. In a motion by City Councilmember Egan, seconded by Councilmember Smith, with all members voting in favor, a resolution entitled "Eagan High/Dakota Hills Middle School Water Quality Study" was approved and the City Administrator was directed to prepare a letter emphasizing the City's commitment to enhancing water quality and all City water bodies and submit the same to the Minnesota Pollution Control Agency. R87-90.1 NEGATIVE DECLARATION/EAW FOR EAGAN HIGH/DAKOTA HILLS MIDDLE SCHOOL City Administrator Hedges also stated that all issues that were pertaining to the Environmental Assessment Worksheet for the Eagan High School/Dakota Hills Middle School project have been satisfied and, therefore, the City staff is recommending that a negative declaration be considered. After further review, and on a motion by City Councilmember Egan, seconded by Councilmember Ellison, with all members voting in favor, a negative declaration was approved for the Eagan High School/Dakota Hills Middle School project, realizing that all conditions of the Environmental Assessment Worksheet have been satisfactorily mitigated by the school district. SPECIAL USE/SALE OF CHRISTMAS TREES - STEVE ZENDER City Administrator Hedges stated that the City Clerk's office has given a sales permit to Mr. Steve Zender for the purpose of selling Christmas trees in the parking lot of the Thomas Lake Shopping Center that is currently being constructed. Apparently, after the permit was issued, it was discovered by the Planning Department that Christmas tree sales is an approved use in a neighborhood business district; however, it requires a conditional use permit in a limited business district and Thomas Lake Center is zoned "limited business." City Administrator Hedges stated that since the Zenders' have proceeded with the development of the sales lot and have approximately five hundred trees inventoried on site, it is recommended that the City Council consider the granting of a special use permit, realizing that the error in not seeking a conditional use permit is the City of Eagan's and any delay for processing a conditional use permit would cause a substantial financial hardship on Mr. Zender. After further discussion, a motion was made by City Councilmember Egan, seconded by Councilmember Ellison, with all members voting Special City Council Minutes November 23, 1987 Page Seven in favor, that Steve Zender be issued a special use permit for the purpose of selling Christmas trees at Thomas Lake Center which is zoned "limited business" for the remainder of 1987. ADJOURNMENT There being no further business, the meeting was adjourned at approximately 10:15 p.m. TLH La.- December 21, 1987 Dated City Clerk TLH/af