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04/29/1986 - City Council Special 0039 MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL EAGAN, MINNESOTA APRIL 29, 1986 A special meeting of the Eagan City Council was held at the Eagan Municipal Center on April 29, 1986, at 6:00 p.m. with the following were present: Mayor Blomquist, City Councilmembers Smith, Egan, Wachter, and Ellison. Also present were Administrative Assistant Hohenstein, City Attorney Hauge, Director of Finance Van Overbeke, and City Administrator Hedges. FINANCIAL UPDATE City Administrator Hedges reported that development of the 1987 budget will begin in late May, which allows more time for administrative review for submitting a budget for City Council consideration. He further stated that a capital improvements budget for 1987 through 1991 is being developed and should be available for review in mid June. Director of Finance Van Overbeke stated that with the recent passage of H. R. 3838 and extension of the tax exempt status in various municipal bond issues until September 1, 1986, it is suggested that the City consider the sale of bonds prior to that date. The Director of Finance and City Administrator suggested that the sale date be considered for July 1, that would allow for the issuance of the Sperry Tax Increment Financing Bond, a State Aid Municipal Bond, and General Obligation Special Assessment Bonds for various public improvements. After a review and discussion by the City Council there is general agreement that bonds should be sold this summer to avoid higher interest rates caused by a taxable status'on the bonds. There was direction given to not allow the tax increment financing for the Sperry project to exceed $700,000. There is also a general agreement that Municipal State Aid Bonds sale should be authorized at its maximum to allow for the construction of certain collector road improvements throughout the City. The timetable for July 1 sale of all three bond issues was presented and discussed with action to be taken at a future City Council meeting. GENERAL LIABILITY AND WORKMEN'S COMPENSATION INSURANCE RENEWAL City Administrator Hedges stated that a letter was received from First Insurance Valley View informing the City that Home Insurance Company will be unable to renew coverages for the City of Eagan on July 1, 1986. He stated that the non-renewal notice is no reflection of the City of Eagan's experience, loss prevention measures, or ability to procure insurance at renewal. However, it is simply a decision by the Home Insurance Company to withdraw entirely from the municipal insurance market in the State of Minnesota. The Director of Finance and City Administrator briefly reviewed alternatives for the City of Eagan and after discussion by the City Council a motion was made by Mayor Blomquist seconded by City Councilmember Egan to direct a review of the City's alternatives for providing general liability and workmen's compensation insurance effective July 1, 1986. COMPARABLE WORTH UPDATE City Administrator Hedges provided a brief update on the status of the comparable worth study that is nearing completion by the Control Data Business Advisors Group. He stated that according to the Metropolitan Area Managers Association the results of the study will be distributed in mid May for review and consideration by City Administration and the City Council. The 1 O0140 Special Council Minutes April 29, 1986 City Administrator further indicated that the results will require a great deal of review by City staff and City Council and therefore utilization of the Personnel Committee may be the most efficient for reviewing and compiling results for review by the full City Council. City Councilmember Egan stated that as Chairman of the Personnel Committee he was agreeable to review the comparable worth results and compile some suggestions for later consideration by the City Council. After a brief discussion and a motion by Mayor Blomquist, seconded by City Councilmember Smith with all members voting in favor, the Personnel Committee was directed to review the comparable worth results as prepared by the Control Data- Business Advisors Group for the Metropolitan Area Managers Asspciation. DOWNZONING At 7:00 p.m. Mayor Blomquist announced that the City Council would discuss with the staff present and Paul Hauge, the City Attorney, the potential for the City Council becoming involved in modifications of zoning and the Com Guide uses within the city. City Administrator Tom Hedges stated that he had discussions at the Developer's Task Force about the current law in Minnesota regarding the potential for downzoning or rezoning property within a municipality, and had asked the City Attorney to review the current status of such issues. Paul Hauge made a presentation including a letter dated April 25, 1986, submitted to the Council and reviewed with the City, some of the cases that the City has been involved in, both at the Supreme Court and District Court levels in approximately the last six years, relating generally to zoning. Case law in Minnesota which controls the direction that Courts would take in the event that a City Council determines to rezone specific parcels or amend the Comprehensive Guide, generally include the following criteria: It is advisable to follow a specific and determined plan with a consultant's review of the underlying issues including the existence of utilities, the basic infrastructure of the property, long term intended use for the land, existing zoning and land use designation, etc... Councilmembers expressed their opinions as to whether the City should take a more aggressive stand when requests are being made to rezone property and such rezoning does not appear to conform with the general city's zoning or welfare. Further, whether it may be advisable to change the land use and zoning of the property to a less dense character, and whether in the current comprehensive guide review process, the Council should seriously consider making revisions to the current designations. After discussion, upon motion by Mayor Blomquist, seconded Councilman Wachter, it was resolved that the staff be directed to review parcels of property within the City during the Comprehensive Guide Review process that may be appropriate for revised zoning and land use and provide the City Council with proposals regarding such changes, including recommended criteria necessary to be followed by the Council in order to implement the changes. All members voted in favor. 7 00141 Special Council Minutes April 29, 1986 JOINT BORNSVILLE/EAGAN CABLE COMMISSION MEETING The meeting was temporarily suspended from the Conference Rooms to reconvene in the City Council Chambers and join the Burnsville City Council and Joint Burnsville/Eagan Cable Commission for a work session on the current status of the transactions regarding the sale of Group W. The discussion was regarding potential sale transactions and lasted approximately 1 hour and 45 minutes whereby members of the Cable Commission, its Legal Council Tom Creighton and Cable Administrator Ralph Campbell provided detailed review of the proposed sale transactions. It was stated that a public hearing is scheduled for Thursday, May 8, 1986, at which time the sale transactions will be further reviewed and considered by the Cable Commission. ADJOURNMENTS The meeting was adjourned at approximately 9:45 p.m. TLH (00 ULAN .2 &A 4, Ci y Clerk