08/10/2004 - City Council Special
MINUTES
SPECIAL CITY COUNCIL MEETING
TUESDAY
AUGUST 10,2004
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 Communications Garrison, Director of Community Development Hohenstein,
City Planner Ridley, Director of Administrative Services Van Overbeke and Director of Public
Works Colbert.
I. ROLL CALL & AGENDA ADOPTION
Mayor Geagan called the meeting to order.
City Administrator Hedges requested that the City Council add to their agenda the
consideration of the Municipal Cooperative Agreement with MnDDT for Project 859 (Lexington
Avenue/TH55/Blue Gentian Road-intersection reconfiguration).
Councilmember Fields moved, Councilmember Tilley seconded a motion to adopt the
agenda as presented, and include the Municipal Cooperative Agreement as the first item of
business. Aye: 4, Nay: 0 (Councilmember Carlson not yet present)
II. VISITORS TO BE HEARD
There were no visitors to be heard.
III. MUNICIPAL COOPERATIVE AGREEMENT
City Administrator Hedges introduced the item noting that the Municipal Cooperative
Agreement with MnDDT is required in order to get funding from MnDDT for the project. Hedges
added that the agreement must be approved before the bid advertisement.
Councilmember Carlson arrived at 5:40 p.m.
Councilmember Tilley moved, Councilmember Maguire seconded a motion to approve the
Municipal Cooperative Agreement with MnDDT for Project 859. Aye: 5, Nay: 0
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August 10, 2004
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IV. LOCKHEED MARTIN STORM SEWER AGREEMENT / GRADING PERMIT
Mayor Geagan thanked representatives of Lockheed Martin for being present and noted that
he and City staff members have had previous meetings with Lockheed Martin over this issue.
City Administrator Hedges introduced the item noting that during the fall of2000, the City
entered into negotiations with Lockheed Martin (LM) to obtain right-of-way to accommodate
Central Parkway. This involved incorporating several old easement and assessment agreements into
a new comprehensive master agreement. Hedges added that in an effort to address storm drainage
obligations, LM has never paid a storm water trunk assessment. It was agreed that no storm sewer
assessments would be charged to LM until such time in the future when significant development or
expansion of the LM property causing more impervious surface would occur. Hedges noted that in
an agreement that was executed by both LM and the City of Eagan in December of 200 1, which
specifically defined "significant development" to be: "an increase in the impervious surface area of
the LM property in excess of 30,000 square feet." Hedges noted that LM is now proposing to shift
and add parking to their corporate entrance to enhance property security, which according to
conditions in the agreement has triggered the need to pay the trunk storm sewer charges of
$302,481.73 (2004 rates).
Public Works Director Colbert gave an overview of discussions held with LM thus far on
the issue of the grading permit and storm water trunk assessments. Colbert noted that the City
Attorney has opined that the agreement between the City and LM is being properly applied given
the increase in impervious surface.
Director of Administrative Services VanOverbeke provided background regarding the
financing of the storm sewer trunk infrastructure within the City. VanOverbeke also summarized
the corporations within Eagan that have paid the trunk storm sewer assessments.
Kevin Darrenkamp, General Counsel for LM, presented LM's case regarding why the
company believes they should not be required to pay the storm water trunk assessment charge.
The City Council discussed LM's position, as well as the agreement that was executed
between LM and the City in 2001. It was suggested by the Council that the assessment charge be
amortized over a fifteen year period. There was City Council consensus that they would like to see
an amortization plan in place for LM and that this issue needs resolution before the grading permit
will be issued. The Council added that the permit will be issued contingent on LM's payment.
V. CEDAR GROVE REDEVELOPMENT RFP DISCUSSION
City Administrator Hedges introduced the item noting that on April 13, 2004, the EDA and
City Council approved a Request for Proposals (RFP) for a master developer to undertake the
remaining development activities in the portion of the redevelopment area bounded by Highway 13,
Nicols Road, Cedarvale Parkway and Silver Bell Road and authorize its distribution. Hedges noted
that proposals were solicited from a number of prospective developers and one proposal was
received. The one proposal submitted was from the partnership of Ryland Homes, a national
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August 10,2004
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residential developer, and SchaferIRichardson, a Twin Cities developer and property management
company that is the current owner of the Cedarvale Mall. Hedges thanked the developers and City
staff for their work on this project thus far.
Director of Community Development Hohenstein provided an overview of the RFP process
that has taken place thus far and introduced Jim Prosser of Ehlers and Associates.
Mr. Prosser provided the Council with a presentation on suggested redevelopment strategies
in Cedar Grove.
Director of Community Development Hohenstein acknowledged the Cedar Grove business
owners and residents that were in the audience. Hohenstein then introduced Chris Enger and Brian
Sullivan of Ryland Homes and Brad Schafer of Schafer/Richardson. The representatives then
provided the City Council with a presentation of their redevelopment proposal for the Cedar Grove
Area.
The City Council discussed the presentations provided by Ryland Homes and
Schafer/Richardson. The City Council discussed ways in which the community could have input
into the redevelopment plans. It was suggested that a community open house be scheduled to help
develop more refined plans. There was discussion regarding the financial clarity of the plan and the
expectation that the development will be financially feasible. There was an inquiry as to what the
expectations of the City are from the developer, e.g. land assembly, condemnation, development
agreements, etc. Jim Prosser noted that potential expectations of the developer could be: 1.)
financial assistance; 2.) assistance with land assembly; and 3.) permitting/land use considerations.
The City Council recessed at 7:26 p.m. to allow for a change in tapes by the production crew
and a City Council break.
The City Council reconvened at 7:47 p.m.
Director of Community Development Hohenstein noted that the questions raised at tonight's
meeting would be responded to and provided back to the City Council. There was City Council
consensus that the next step would take place on the August 17 Economic Development Authority
agenda, at which time the EDA could consider the approval of a preliminary designation of the
Ryland SchaferIRichardson partnership as the master developer for the Cedar Grove
Redevelopment District.
VI. CONSIDER EQUIPMENT REQUEST BY THE EAGAN FIRE DEPARTMENT
City Administrator Hedges introduced the item noting that the Eagan Fire Department,
through its Apparatus Committee, is requesting City Council consideration to sell two existing fire
apparatus and to purchase two new pieces of equipment. It was noted that the request requires
modification to the approved 2004 Part II CIP and includes use of funds for equipment originally
contemplated in 2005. The Fire Department has concluded that purchasing the two units at the
same time will result in an overall lower cost to the City and with an expected increase in steel
prices in October, consideration should be given to making the purchase at this time.
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August 10,2004
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Director of Administrative Services provided a summary of financing options available to
fund the two pieces of equipment.
The City Council discussed the replacement and financing plan for the two pieces of
equipment. Eagan Volunteer Firefighter Mike Scott was present to respond to questions from the
City Council.
There was City Council consensus to fund the two pieces of equipment from the Equipment
Revolving Fund - fund balance. The Council directed that formal consideration be scheduled on
the August 17, 2004 City Council agenda.
VII. RECEIVE FEEDBACK FROM BURNSVILLE CITY COUNCIL AND
TELECOMMUNICATIONS COMMISSION REGARDING PROPOSED
POLITICAL PROGRAMMING AND BECT ACCESS RULES
City Administrator Hedges opened the item noting that on July 13, the Eagan City Council
provided feedback on three different options regarding political programming rules and gave
direction that it preferred the more restrictive Option 2. Hedges added that noting the current
election season and the fact that there have been no complaints about the existing political
programming rules in the last 19 years, the City of Burnsville suggests approving the balance of the
updated operating rules and continue to operate under the existing rule to provide open access for
political programming. It was also Burnsville's recommendation that the Telecommunications
Commission continue to study the matter through the 2004 election season and report back if any
changes are recommended.
Communications Director Garrison provided an overview of the discussion that took place
at the July 28 Telecommunications Commission meeting at which time the Commission agreed with
the recommendation of the City of Burnsville. Garrison also added that Commission Attorney Mike
Bradley has advised that Option 2 for the political programming rules would likely be legally
upheld for the government access and community access channels, but not on the public access
channels.
The City Council discussed the recommendation of the City of Burnsville and BETC.
There was City Council consensus that the balance of the access rules can proceed ahead
and be scheduled for the August 17 Consent Agenda. It was also the consensus of the Council that
the Eagan Communications Committee meet with the Burnsville Communications Committee to
further discuss the political programming rules.
VIII. CONSIDER FINANCE COMMITTEE RECOMMENDATION
RE: FLOW RIDER
City Administrator Hedges introduced the item noting that at the direction of the City
Council staff has looked at enhancement opportunities at Cascade Bay in an attempt to maintain
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August 10, 2004
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high visibility and popularity in the metro area. Hedges noted that staff also made it a goal to
engage and retain more of the teen population as active participants at Cascade Bay and thus has
been investigating the Flow Rider feature. Hedges also noted that upon seeing the video
presentation of the Flow Rider feature, the City Council directed the Finance Committee to study
the issue in more detail. Hedges added that the Finance Committee met on July 20, 2004, however,
made no recommendation, but asked that consideration be brought back before the full City
Council. City Administrator Hedges suggested that the City Council consider conducting an
engineering analysis to look at the potential Flow Rider site and whether the site is suitable for the
Flow Rider.
The City Council discussed the prospective Flow Rider feature. It was noted that the ECVB
has expressed their interest in marketing this feature across the country. There was City Council
consensus to proceed with an engineering feasibility study, to include soil samplings, on the
potential site for the Flow Rider. The Council requested that upon receiving the findings of the
feasibility study, the issue come back to the City Council for a discussion regarding the potential
financial implications of the Flow Rider feature. There was consensus that no action would be
scheduled for an upcoming City Council agenda until the Engineering Feasibility study findings are
complete.
IX. REVIEW OF PROPOSED CITY PROCLAMATION POLICY
City Administrator Hedges introduced the item noting that per the request of the Council at
the July 13 Special City Council Workshop, the draft policy pertaining to the consideration of
proclamations and resolutions has been back to a workshop for further Council discussion.
There was City Council consensus to modify the policy to insert that the City will only
consider proclamations or resolutions that pertain specifically to "City of Eagan" local government
service delivery. The Council directed that the revised proclamation policy be included on the
August 17,2004 Consent Agenda.
X. 2005 GENERAL FUND BUDGET UPDATE
City Administrator Hedges provided an update to the City Council on the 2005 General
Fund Budget process. He noted that the City's budget team has met with each of the Department
Directors to discuss the departmental requests that have been submitted. Hedges also noted that per
the direction of the Council, the estimated market value homestead credit will not be used as a
revenue source in balancing the 2005 General Fund Budget, but will be set aside with potential uses
noted for consideration if and when the state actually makes payment to the City. Hedges noted 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 l5, 2004.
City Administrator Hedges also informed the City Council that he has requested that all
departments provide an overview of their operations and budget requests during the budget
workshop on August 24.
XI. OTHER BUSINESS
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August 10, 2004
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There was no other business to be discussed.
XII. ADJOURNMENT
Councilmember Maguire moved, Councilmember Carlson seconded a motion to adjourn the
meeting at 8:30 p.m. Aye: 5, Nay: 0