08/24/2004 - City Council Special
MINUTES
SPECIAL CITY COUNCIL MEETING
TUESDAY
AUGUST 24, 2004
5:30 P.M.
EAGAN ROOM - EAGAN MUNICIPAL CENTER
City Councilmembers present: Mayor Geagan, Councilmembers Carlson, Fields, Maguire
and Tilley.
City staff members present: City Administrator Hedges, Assistant to the City Administrator
Miller, Director of Administrative Services VanOverbeke, Chief Financial Officer Pepper, Forester
Hove, Superintendent of Recreation Asfahl, Parks and Recreation Administrative Coordinator
Mesko, Superintendent of Streets Struve, Chief Building Official Schoeppner, City Planner Ridley,
Battalion Chief Diloia, Director of Communications Garrison, Police Chief Therkelsen, Captain
McDonald, Director of Community Development Hohenstein, Superintendent of Parks Olson and
Public Works Director Colbert.
I. ROLL CALL & AGENDA ADOPTION
Mayor Geagan called the meeting to order.
City Administrator Hedges noted that item III. Contract 04-04 Lexington Ave. - TH 55 to
Lone Oak Road - Street Improvements (Contract Award) is asked to be continued to September 7
due to timing issues associated with MnDOT.
City Administrator Hedges requested that the City Council add a tobacco license request for
CVS Pharmacy to their agenda.
Hedges also noted that the City received a ruling from the Court of Appeals that the City
prevailed in the Dahline v. the City of Eagan lawsuit.
Councilmember Tilley moved, Councilmember Maguire seconded a motion to adopt the
agenda as modified. Aye: 4, Nay: 0 (Councilmember Fields not yet present)
II. VISITORS TO BE HEARD
There were no visitors to be heard.
Special City Council Minutes
August 24, 2004
Page 2 of 4
III. CVS TOBACCO LICENSE
City Administrator Hedges distributed the tobacco license application of CVS Pharmacy.
CVS is requesting the license at the August 24 Workshop because their grand opening precedes the
next regular City Council meeting.
Councilmember Carlson moved, Councilmember Maguire seconded a motion to approve the
tobacco license application of CVS Pharmacy. Aye: 4 Nay: 0 (Councilmember Fields not yet
present)
IV. CONSIDERATION OF DRAFT 2005 GENERAL FUND BUDGET AND
PROPOSED 2005 LEVY CERTIFICATION
City Administrator Hedges introduced the item noting that preparation of the 2005
Preliminary General Fund Budget began this past June. Since that time, the budget team has met
with each of the departments on two occasions to finalize the City Administrator's recommended
budget. Hedges informed the Council that the City must certify a proposed levy to the County
Auditor, adopt a proposed budget, and select dates for the initial and continuation Truth and
Taxation Hearings no later than September 15. Hedges noted that formal City Council action to
comply with those requirements is currently scheduled for the September 7,2004 regular City
Council meeting. Hedges added that the purpose of the workshop is to consider the Preliminary
General Fund Budget only; and, the Enterprise Funds will be before the City Council for their
consideration later this year. City Administrator Hedges provided background on the 2005
Preliminary Budget and noted that Department Directors were instructed to target an inflationary 3
percent increase or less in each department. Hedges noted that the Preliminary Budget that is
certified can be decreased, however, the amount certified cannot be increased. Hedges noted that
the City of Eagan has historically been a relatively low service delivery-City committed to limited
government. He also cited the recent community-wide survey undertaken in the summer of 2002,
which showed that Eagan compares very favorably, meaning a higher percentage of approval,
compared to Eagan's neighboring cities and Dakota County. Hedges noted that Eagan is the lowest
in per capita spending in Minnesota cities over 50,000 in population. Hedges informed the Council
that per their direction, the 2005 Preliminary Budget does not include revenue calculations for the
Homestead Market Value Credit. The supplemental funding sources included with the 2005
Preliminary General Fund Budget were summarized, including the Public Utility Fund Balance,
General Fund Renewal and Replacement, and the Part II CIP. Hedges concluded by highlighting
the proposed City market value, tax capacity, and Community Center bond debt service. City
Administrator Hedges introduced the Department Directors to provide overviews of the
departmental budgets being recommended by the City Administrator.
Director of Community Development Hohenstein, Chief Building Official Schoeppner, and
City Planner Ridley provided an overview of the Community Development proposed budget. The
Council discussed the proposed budget and inquired about the increase in conferences, training,
dues and memberships.
Special City Council Minutes
August 24, 2004
Page 3 of 4
City Administrator Hedges provided an overview on the Mayor and City Council and
Administration budgets. City Administrator Hedges reminded the Council that should the Council
wish to adjust the compensation for the Mayor and City Council, the change in compensation would
go into effect beginning January 2005. Hedges also noted that per the direction of the Council, an
organizational study is currently underway to determine appropriate resource allocation within the
City. The City Council requested that staff provide the Council with a spread sheet that identifies
shifts in the budget for one department to another.
Councilmember Fields arrived at 6:l5 p.m.
Director of Administrative Services provided an overview on the Information Technology,
City Clerk and Finance Department budgets. The City Council asked staff to provide a best
estimate on the potential costs if the Charter is adopted.
City Administrator Hedges provided an overview on the Legal Services budget. The City
Council asked Hedges to bring back information as to why Legal Services has increased
significantly since 2002.
Director of Communications Garrison provided an overview on the proposed
Communications budget. The City Council discussed the budget and, in particular, discussed the
City providing live web casting of City meetings which would allow a digitized, searchable video
record of each meeting available to the public.
The City Council recessed at 7:00 p.m.
The City Council reconvened at 7: 1 0 p.m. following a short break.
Police Chief Therkelsen and Captain McDonald provided an overview of the proposed 2005
Police budget. Police Chief Therkelsen noted the attrition levels anticipated within the next decade.
Therkelsen provided an overview of the proposed reorganization within the department. The City
Council discussed the proposal, and inquired about the percentage of non-sworn staff within the
department as well as the depth of the Dispatch Center.
City Administrator Hedges introduced the proposed Fire Department budget and noted that
Chief Bob Kriha was out of town. Hedges introduced Day Battalion Diloia to summarize the Fire
Department proposed budget. The City Council discussed the proposed addition of a Dispatcher
within the Police Dispatch Center in order to handle the fire dispatch responsibilities. City
Administrator Hedges noted that the full-time Fire Chief position continues to be studied by the Fire
Department, but is not included in the 2005 budget proposal. The City Council discussed firefighter
recruitment, including the number of firefighters available during the day and night shifts. The City
Council also discussed the depth within the Dispatch Center and the importance of not burning out
valuable Dispatchers.
Special City Council Minutes
August 24, 2004
Page 4 of 4
Public Works Director Colbert and Superintendent of Streets Struve provided an overview
of the three Public Works Budgets, including Engineering, Streets and Highways, and Central
Services. The City Council discussed the proposed implementation of a salt only ice removal
experimental program in a portion of the City. Struve noted that by going to a salt only program,
the clean up costs and environmental impacts associated with winter sanding would be reduced.
The City Council voiced their support for the experimental program.
The City Council recessed at 8:00 p.m.
The City Council reconvened at 8:l5 p.m. following a short break.
Parks and Recreation Administrative Coordinator Mesko, Superintendent of Parks Olson,
Superintendent of Recreation Asfahl, and City Forester Hove provided an overview on the Parks
and Recreation and Tree Conservation budgets. The City Council discussed the proposed
maintenance position within tree conservation. The Council inquired as to whether the position
could be contracted. The Council also asked staff to come back with a break down as to the actual
increases or decreases within the Parks and Recreation Department that take into account revenue
offsets.
Upon completion of the departmental presentations, the City Council discussed the public
policy issues pertaining to the 2005 Preliminary Budget. The City Council directed that the Truth
and Taxation Hearing dates be scheduled for Monday, December 6, and Monday, December 13.
City Administrator Hedges noted that the preliminary tax levy will be scheduled for consideration at
the September 7,2004 regular City Council meeting at which time the Council will be asked to
adopt a preliminary levy. It was again noted by City Administrator Hedges that the preliminary levy
will serve as a starting point and can be adjusted downward; however, the levy cannot be increased
once the preliminary levy is adopted. The Council affirmed their support in the use of the
supplementary funding sources for the non-reoccurring appropriations included in the proposed
budget. The Council also reaffirmed its determination on the use ofthe fund balance as a
contingency for operations and as a savings account. The Council requested that they be provided
information regarding how funding levels within the contingency have changed over the past few
years. Staff was directed to bring back responses to questions raised at the August 24 Workshop to
the September 13 City Council Workshop.
V. OTHER BUSINESS
City Administrator Hedges distributed an unofficial copy of the Opinion which states that
the City prevailed in the Dahline v. City of Eagan Court of Appeals case.
VI. ADJOURNMENT
The City Council adjourned at 9:00 p.m.