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03/24/1998 - City Council Special MINUTES OF THE SPECIAL MEETING OF THE EAGAN CITY COUNCIL EAGAN, MINNESOTA 00102 MARCH 24, 1998 A Special City Council meeting was held on Tuesday, March 24 at 5:00 p.m. in the Community Room of the Eagan Municipal Center building. Those in attendance were Mayor Egan and City Councilmembers Awada, Blomquist, Masin and Wachter. Also in attendance were Senior Planner Ridley, Assistant to the City Administrator Hohenstein, Director of Public Works Colbert, Director of Finance VanOverbeke, Chief of Police Geagan and City Administrator Hedges. VISITORS TO BE HEARD Mayor Egan acknowledged the audience and there were no visitors to be heard. YANKEE DOODLEIPILOT KNOB ROAD PARK & RIDE SITE City Administrator Hedges stated that the City has received correspondence from the Minnesota Valley Transit Authority (MVT A) requesting the expansion of parking spaces and a potential retail convenience center for the Yankee Doodle RoadIPilot Knob Road park and ride site. Senior Planner Ridley reviewed in concept why and what the MVT A is considering for retail. He stated that the type of retail would be convenience related such as a coffee shop, dry cleaners and other services that would accommodate the park and ride site user. City Councilmember Blomquist stated a certain number of parking spaces would be required for the retail which impacts the total parking spaces desired for those persons using the MVT A bus service as a park and ride site. Senior Planner Ridley stated that the proposal is to double the number of spaces, and it is believed that a majority of the persons using the retail service would be the same as those utilizing the park and ride site for the bus service. As a result, he stated that the spaces counted for the park and ride site will be shared in calculating the number of spaces for the retail service. City Councilmember Wachter stated that he is in support of the concept that would encourage the MVT A to proceed ahead with the development proposal. City Councilmember Masin stated that she also supports the concept and further indicated that the City still needs to address a location for a transit hub. Mayor Egan stated that significant investment, both public and private, has been made in the area and that any development by MVTA must be consistent with the City's goals in this major commercial area. Mayor Egan further stated that any capital costs for infrastructure that may be necessary to construct a transit hub should be the financial responsibility of the MVTA. After a brief discussion, it was agreed by the City Council that the Yankee Doodle Road/Pilot Knob Road site would not adequately handle a transit hub. City Councilmember A wada stated that if a retail service is to be included at the park and ride sites, possibly the MVT A should consider ownership and leasing the space to retailers as an entrepreneurial effort. 00103 Page 2/Special City Council Minutes March 24, 1998 Mayor Egan summarized the discussion stating that the staff should work with the MVT A in an effort to further develop the Yankee Doodle/Pilot Knob Road park and ride site with the retail concept that is not in competition with existing retail in the area, but provides satellite locations for existing retail to serve the transit rider. And, further, that a planning effort should be coordinated with the MVT A to consider a site for a transit hub. T.H. 55 TIF REDEVELOPMENT AREA City Administrator Hedges stated that staff has held several meetings to discuss a comprehensive development plan for a land area generally surrounded by T.H. 149, T.H.. 55 and Blue Gentian Road. He stated that City staff had been coordinating meetings with land owners to discuss potential development concepts as well as a master transportation plan. The City Administrator introduced Kim Imre, representative ofT.M.1. Coatings, who was in the audience and has expressed an interest in developing a portion of the site under discussion. Anne Kor, owner of the Airliner Motel property, was also in the audience. Assistant to the City Administrator Hohenstein provided a summary of various actions that have taken place in the Highway 55 redevelopment area stating that the City has possession of all five homes on Lawrence Avenue and Linde Lane. Both Wispark and the Imre family have also acquired a number of properties and, in addition to other property owners in the area, staff and MnDOT have been working on a traffic circulation pattern for the entire area. He further stated that staff is requesting general direction with respect to several points: I.) Should staff continue to encourage cooperation among the remaining property owners to bring about a comprehensive redevelopment and incorporate the City properties at this time? 2.) Should the City solicit proposals from existing property owners, partnerships of property owners or outside developers for the redevelopment of the City owned property? 3.) Is the City in a better position to solicit proposals at the present time with several property owners or in the future, if additional consolidation of ownership occurs? 4.) Under which circumstances would the City underwrite any additional redevelopment costs besides the acquisition of Lawrence and Linde homes? 5.) Under what circumstances would the City be willing to facilitate redevelopment of the homes on Blue Gentian Road? City Counci)member Awada asked specific questions about the City of Eagan's role in an RFP process. Mayor Egan asked how many parcels are still remaining in the redevelopment area? Assistant to the City Administrator Hohenstein reviewed a drawing of the TIF district showing the various properties and also explained the survey that was mailed out to each of the residential property owners on Blue Gentian Road. 00104 Page 3/Special City Council Minutes March 24, 1998 Senior Planner Ridley spoke on the transportation issues stating that access to Trunk Highway 55 has become an issue. City Councilmember Awada further questioned why the City has a role in plans for the redevelopment of the area. Assistant to the City Administrator Hohenstein replied stating that staff is facilitating the Council's vision of bringing about a comprehensive redevelopment plan for the area to replace the hodge-podge development scheme that had taken place. City Administrator Hedges stated that an important reason for the City facilitating development opportunities for the Highway 55 redevelopment area is to assure a comprehensive street and utility plan for the area which provides for better long range planning and better development opportunities. Mayor Egan asked how the streets would be financed. Assistant to the City Administrator Hohenstein stated that the streets would be financed by the adjacent property owners. City Councilmember Masin stated that the MVT A should also be involved in the planning efforts since transportation is becoming important to business and the community. City Councilmember Blomquist asked who are the developers and, specifically, how many developers are interested in the Highway 55 redevelopment area? Assistant to the City Administrator Hohenstein stated that, at the present time, the two parties expressing the most interest are the Imres and Wispark. City Councilmember Blomquist stated that it might be advantageous for the City to work with those developers to create two (2) parcels. Assistant to the City Administrator Hohenstein stated that the City is asked on a continuing basis by prospective developers about how the City's property in the area can be acquired. City Councilmembers discussed how the City's property should be disposed and there was a consensus that a master plan be developed, including the City property. Following a review of the entire Highway 55 redevelopment area, a sale would be considered at a later date. City Councilmember Wachter commented on the single family residences along Blue Gentian Road stating that it will be a matter of time and those properties will be included in a commercial development. Mayor Egan asked how the homes, which were acquired by the City through Tax Increment Financing, will be sold or moved. Assistant to the City Administrator Hohenstein stated that there are five (5) homes and according to recent inspections, two are able to be moved, one is on a slab and has no value to be moved and the two additional homes could be sold for salvage, stating that they were built in sections and it is not feasible to move the homes. Mayor Egan stated that once a master plan is completed for the Highway 55 redevelopment area, the City Council will give further consideration on how the City properties should be sold. It was also noted that the City Council will review roadway concepts and traffic analysis of the Highway 55 redevelopment area at a special workshop meeting on April 21 . SCHEDULE PUBLIC INFORMATIONAL MEETING/WINTER TRAIL MAINTENANCE City Administrator Hedges stated that at the request of the City Council, this workshop item has been scheduled to address the continued requests being received by the City regarding expanding the current winter trail maintenance program. He stated that the discussion should focus on the process of presenting program proposals to the public and providing direction to 00105 Page 4/Special City Council Minutes March 24, 1998 staff as to what should be presented at the public informational meetings. City Councilmember Masin stated she feels strongly about having a public informational meeting and further stated that she has received a number of calls from the public requesting winter trail maintenance. Mayor Egan stated he agrees and would like to proceed in the near future with a public informational process. City Councilmember Awada stated that, in her opinion, the City needs to provide more winter trail maintenance opportunities than currently exist under the pilot program. City Councilmember Blomquist stated that in her contacts out in the community, this is clearly the highest priority in regards to a City issue among groups of residents which she is in contact with. She further stated that clearing trails from residential areas to commercial areas is a main factor. City Councilmember Blomquist stated that, at the public informational hearing, the City should provide a variety of ideas as to winter trail maintenance alternatives for commercial, bus stops, recreational destinations, schools and other related areas where trails are utilized during winter months. Director of Public Works Colbert stated that it is important to determine the scope of a winter trail maintenance program, stating that the range of options are to continue the current limited maintenance program, expand to the entire system deleting internal and duplicate trails, or expand the entire system which is 100 plus miles. He further stated that direction will need to be given on how to finance the increased costs associated with program expansion such as increase taxes or reduce other existing programs, and to what level of service should be provided and stated that the time frame selected for completing the trail maintenance program will vary in cost depending on the expectation and policies as to how soon and frequent the snow should be removed. Mayor Egan agreed with City Councilmember Blomquist stating that the City must define through public process what type of service the trail system should provide in winter months, whether it be recreational or transportation, which will allow the City Council to help prioritize the winter trail maintenance program. City Councilmember Masin asked if staff can explain what the additional costs of the winter trail maintenance program alternatives mean to the taxpayer. Director of Public Works Colbert stated that the cost will vary depending on the scope of the winter trail maintenance program and, further, that this information will be available at the public hearing. City Councilmember Masin further stated that, in hef opinion, no one should walk on major county roads and, at a minimum, trail routes should be plowed adjacent to these roadways. City Councilmember Wachter stated that he would like additional information on the pros and cons of snow removal if it is performed by private property owners adjacent to trails. City Councilmember Blomquist suggested that ordinances be solicited from other cities and reviewed for consideration at a future work session. She stated that cities, such as West St. Paul, have had winter trail maintenance programs for a number of years and it may be of interest to determine how those communities handle their trail maintenance policy. City Councilmember A wada stated that it is not cost affective to do the entire community Of, in other words, all 100 miles of trails, but it would be agreeable to looking at some options that increase the amount of trail maintenance performed at this time. 00106 Page 5/Special City Council Minutes March24, 1998 City Administrator Hedges stated that staff can research ordinances from other communities for presentation at a future work session. He further stated that it would be helpful for the City Council to review alternatives prepared by the Director of Public Works at the work session, so there is an understanding as to what staff is to present at the public informational meeting. After further discussion, Mayor Egan stated that a work session will be held on April 7 at 5:00 p.m. for the purpose of reviewing information from the Director of Public Works on options to present to the public for the winter trail maintenance program and, further, that ordinances and policies from other communities will also be available for review. YMCA PROPOSAL Don Chapdelaine, Chairperson of the Southwest Area YMCA Board of Directors, appeared and commented on a partnership proposal the YMCA presented to the City of Eagan, requesting that the City contribute $75,000 toward the capital cost of a building addition that could be used for YMCA teen programs. He stated that all staffing, equipment, training and program expenses would be the responsibility of the YMCA. Tim Staley, Executive Director of the Southwest Area YMCA, was also present and stated that the YMCA currently has 7,000 members of which 80 percent ofthe total memberships are Eagan residents. He stated that the next largest enrollment is from the City of Rosemount. Mr. Staley stated that the YMCA has a full-time employee doing youth outreach work with teens and at risk kids which fits well with the proposed teen center addition. He stated the addition would be used by teens as a hangout and supported comments from Mr. Chapdelaine that the operational costs are the full responsibility of the YMCA. City Councilmembers asked various questions about the proposed addition and how it relates to the other functions of the YMCA and, in response, Mr. Staley provided a drawing illustrating the location of the teen addition. He stated that the teen center will compliment other facilities such as the computer lab, gyms, pools, fitness center and new climbing wall. He stated all these program areas will also be available for use by teens during specific times. Mayor Egan asked how the City would fund the $75,000 request and, further, asked if there will be a problem with church and state if the City contributes to the YMCA? City Administrator Hedges stated there certainly are funding options available to the City Council if a determination is made to contribute the $75,000 capital request to the YMCA; however, the church and state portion of the question should be deferred to the City Attorney's office for further clarification. Michael Vincent, an Eagan resident, also appeared and stated that he would like to share a concept for a teen room on the mezzanine level of the Civic Arena. He stated that for the past several months he has been involved with teen group meetings that are being held in the Community Room of the Municipal Center building every other Sunday evening. He stated that a teen center with no scheduled programs is what teens prefer. Mr. Vincent stated that, along with the Director of Parks & Recreation, he has looked at the Civic Arena mezzanine level as an area that would provide a good space for teens and other groups. He stated that the Director of Parks and Recreation has concurred that an area enclosed for use by the Hockey Association and other groups as a meeting area would be beneficial to the City. Mr. Vincent further stated that he has had conversation with outside groups about donations to construct and furnish the room and is 0010'] Page 6/Special City Council Minutes March 24, 1998 quite confident that there should be no expense incurred to the City of Eagan ifthe City Council concurs with this idea. He stated that Parks and Recreation Department will set policies regarding the use of the facility. He further stated that the location of a teen center with the Civic Arena has a great deal of value given the location to the Aquatic Pool Facility, Police Department and other services that are provided at the Municipal Center campus. Karen Luchka, an Eagan High School student, appeared and stated that through various surveys their group has conducted, teens have responded that they would like a place to hang out in a safe environment. City Councilmember Wachter asked Ms. Luchka if the proposed teen center for the YMCA facility will satisfy the needs the teens have expressed about a place to hang out. Ms. Luchka stated, in her opinion, both the YMCA and the Civic Arena could exist given the number of middle school and high school age kids living in the Eagan community. Mayor Egan stated that there is some risk to the City to contribute $75,000 for a teen center that is on the Eagan boundary with Inver Grove Heights and only receive recognition. He further asked Mr. Vincent where approximately $50,000 would come from to finish the facility at the Civic Arena. Mr. Vincent stated that his contact with the Lions Club, Best Buy and other businesses would provide the necessary capital to construct the facility. He further stated that according to the Director of Parks and Recreation, the Municipal Center campus is the right place for a teen center facility. City Councilmember Wachter stated that he is supportive of providing a facility and opportunities for teens, however, questioned the Civic Arena location. He stated that there would be some expense to the City in supervising, providing programs and future needs. City Councilmember Wachter stated that he would like a recommendation from the Advisory Parks and Recreation Commission on this matter. Ms. Luchka, representing the teens, stated that their group is recommending adult volunteers and a security camera at those times when the facility is used as a teen center. Mr. Vincent stated that the operational costs should be at a minimum suggesting expenses such as heating and electricity. City Councilmember Wachter further questioned whether enclosing an area on the mezzanine level will jeopardize or take away viewer space for hockey games and other Civic Arena events. Mr. Vincent stated that, according to the Director of Parks and Recreation, there is interest in building a pro shop and, further, the Parks and Recreation Department would like a heated room for hockey and other registration that occurs in the building. City Councilmember Masin stated that the teens are excited about using the Civic Arena for a teen facility stating the location on the Municipal Center campus is an appropriate site for reasons stated by Mr. Vincent. Mayor Egan asked the City Administrator to comment on how the City Council should proceed with the teen center proposals. City Administrator Hedges stated that it is his recommendation that both of these proposals be referred to the Advisory Parks and Recreation Commission for a recommendation. City Councilmember Awada agreed and asked that the Police Department provide a report on whether combining a teen center function with the Civic Arena could present any risks or conflict in uses to the City. City Councilmember Blomquist stated that she would need additional information on staffing, costs and the pros and cons for considering a teen center at the two (2) locations. City Administrator Hedges stated that the Advisory Parks and Recreation Commission could review this at their April meeting. 00108 Page 7/Special City Council Minutes March 24, 1998 Mayor Egan stated that this item would more than likely come back to the City Council at a regular City Council meeting in either Mayor June, and then thanked Mr. Vincent and Ms. Luchka for their presentation and comments. TOBACCO ORDINANCE City Administrator Hedges stated, that during the 1997 Legislative Session, a state law was passed with the primary purpose of reducing illegal youth access to tobacco products. He further stated that considerable discussion has taken place at the state, county and city levels regarding the appropriate mechanism to implement the law in individual cities. Director of Finance/City Clerk VanOverbeke stated that Dakota County cities have discussed the merits of having a similar ordinance county wide. He further made reference to a letter that was addressed to all communities from the County Administrator, Public Health Director and Dakota County City Managers Group. Director of Finance VanOverbeke reviewed the Model Tobacco Ordinance that was developed using a League of Minnesota Cities Model Ordinance. He stated that there are additional options for reducing youth access to tobacco that will require policy direction by the City Council before the Tobacco Ordinance is finalized. He reviewed five (5) options which include; 1.) a complete ban on vending machines, 2.) further regulation of self service of tobacco, 3.) consider regulation requiring sellers to be above the legal age of 18, 4.) offer incentives to passed compliance checks, and 5.) establish the amount for administrative penalties. Director of Finance VanOverbeke first reviewed the potential ban of vending machines stating that the current Tobacco Ordinance states that vending machines cannot be in buildings where minors have access. After some discussion by the City Council, since evidence has proven that compliance checks conducted in the establishments where minors are not allowed, they have found that not only can minors enter, but have successfully purchased tobacco. The new ordinance should provide language that includes a complete ban on vending machines. Director of Finance VanOverbeke presented a second option regarding the ban on self service tobacco stating that the proposed ordinance bans all self service which is stronger language than provided in the state law. He stated that the minimum state law bans only the self service of tobacco sales when it involves a single package of tobacco. He stated that many establishments sell a tobacco package, combining two or three packages of tobacco into a multi- pack, which is permissible under the self service regulation. After a brief discussion on this item, City Councilmembers agreed that the self service sales regulation should be consistent with the Minnesota State law banning only single packages of tobacco under the self service regulation. The Director of Finance also reviewed compliance checks and the administrative penalty issues that require public policy direction. Chief of Police Geagan reviewed the results of compliance checks that are made on a routine basis by the Police Department. He further stated that he would prefer that the ordinance require the City to conduct the compliance checks stating that it would be virtually impossible for the County Sheriff's Department to run compliance checks on 50+ establishments that currently sell tobacco products in the community. After 00109 Page 8/Special City Council Minutes March 24, 1998 further discussion on the item, City Councilmembers detennined that the City of Eagan should enforce the ordinance and provide the compliance checks. Director of Finance VanOverbeke stated that the fmal policy consideration is in regards to the administrative penalties. He stated that the penalties arrived at by the Legislature were a compromise. Chief of Police Geagan stated that tobacco sales, in many cases, represents a high percentage of retail sales for those establishments selling tobacco. He stated that increasing the license fees will not have nearly the impact that a license revocation would have if an establishment violates the Tobacco Ordinance. After further consideration, it was the consensus of the City Council that the fines be left as presented in the proposed ordinance. Direction was provided that a regulation requiring sellers to be above the legal age of 18 could cause a hardship, additional enforcement problems and would probably not improve compliance and, therefore, should not be considered. Director of Finance VanOverbeke stated there are other regulations the City Council could consider such as limiting the number of tobacco licenses within a prescribed distance of schools and putting a cap on the number of tobacco licenses that the City may issue to establishments. City Councilmembers stated these requirements are not necessary for the ordinance. City CounciJrnember Wachter stated he would like public policy that would restrict the number of advertising signs for tobacco products for each establishment. City Councilmember A wada questioned whether signs have a significant influence on young people using tobacco related products. After further discussion and a consensus by the City Council, Mayor Egan asked that the restriction of advertising signs for tobacco related products be referred to the Planning Commission for their consideration when the sign ordinance is reviewed. Mayor Egan thanked the stafffor its work in coordination of the Tobacco Ordinance and, further, stated that other Dakota County cities such as Apple Valley, Bumsville and Rosemount should be consulted in an effort to have some continuity with neighboring cities in the adoption of Tobacco Ordinances. GENERAL FUND BALANCE City Administrator Hedges stated that the City has maintained a policy that the fund balance from the General Fund be at a level of30 to 35 percent of the following year's operating budget. He further stated that the level is detennined to be the amount necessary to provide adequate working capital for operations and to provide an additional reserve to deal with any emergencies, revenue shortfalls or opportunities. City Administrator Hedges stated that due to very successful years of operations in both 1996 and 1997, the Fund Balance has become higher than the overall policy target set by the City Council and, in order to meet the 35 percent level of the 1998 budget, a transfer of$4,122,612 is available. Director of Finance VanOverbeke stated, along with the City Administrator, they have discussed various alternatives for the use of the money. He stated that the most appropriate use of the available fund balance is to transfer it to the Equipment Revolving Fund and to the Debt Service Fund to defease those bonds. He further stated that the elimination of future tax levies through the use of the money is the highest priority and provides the most obvious and direct 00110 Page 9/Special City Council Minutes March 24, 1998 benefit to the community. City Councilmernber Awada asked what is remaining in the total Bond Fund and, further, the breakdown necessary for the Equipment Revolving Fund. Director of Finance VanOverbeke stated that $2.415 million is necessary to defease the outstanding bonds and, further, that to fund the Equipment Revolving Fund would require $1.7 million. City Councilrnernber Blomquist stated that the City should not consider equipment certificates which causes a tax liability on the community and further supports the prepayment of bonds. She was also in agreement with the recommendation to transfer the remaining portion of the General Fund balance to the Equipment Revolving Fund. Mayor Egan and City Councilrnember A wada both agreed with City Councilmember Blomquist on her recommendation. Mayor Egan also provided reasons to not use the funding for trail maintenance, Community Investment Fund, park site acquisition and other possible uses. Director of Finance VanOverbeke stated that this item would be placed on the next regular City Council Consent Agenda as an action item. OTHER BUSINESS City Administrator Hedges presented a letter addressed to the City Council from Larry Poppler that raised questions about assessments the City levied for the improvement of Pop pIer Lane. He stated that Mr. Poppler would like an opportunity to present his case requesting a fair reduction of the street assessments to the City Council. City Councilmember Blomquist stated that Mr. Poppler has raised some valid concerns and she would be supportive of a meeting to consider the issues that were raised in his correspondence to the City. City Councilmember Awada stated that the Public Works Committee and City Council met on numerous occasions to discuss the Poppler Lane assessments, and as a result of those meetings, an agreement was reached between the City and the Popplers. As a result of the negotiated agreement, it was her opinion that this matter had been resolved by both parties. City Councilrnember Wachter stated that as Chairperson of the Public Works Committee, he would be agreeable to sending a letter to Mr. Larry Poppler that addresses the action that was taken by the City Council during the fall of 1996. Mayor Egan stated that a letter from City Councilmember Wachter, as Chairperson of the Public Works Committee, is an appropriate remedy. City Councilmember Wachter expressed concern that if residents are not in agreement with the street construction policy and their responsibility to participate in the cost, possibly the City should have the final assessment meetings to determine whether the street reconstruction projects should proceed ahead. City CounciJrnember A wada stated that the City has had a successful street reconstruction program for the past six to seven years, and it has only been in the last year that the street reconstruction policy has been questioned starting with the Oak Chase neighborhood. She further stated that at the time the street reconstruction policy was adopted in the early 1990' s, the City Council considered either increasing the general property taxes citywide to pay for 100 percent of the street reconstruction cost or to fund a portion of the cost from City funds and require that neighborhoods receiving the benefit by the street reconstruction would participate in the cost. City Councilmember A wada stated that it would not be fair to all the neighborhoods that have paid special assessments to have their property taxes increased to subsidize the street reconstruction improvements in those remaining neighborhoods that require repairs. 00111 Page 10/Special City Council Minutes March 24, 1998 Director of Public Works Colbert stated that there is a process that allows the City Council to hold the final assessment hearing prior to awarding a contract and obligating the City to the project. He stated that some communities have utilized this process which allows the City Council, based on the number and/or strength of objections and appeals to the proposed fmal assessments, to determine whether or not to proceed with the project as proposed. Mayor Egan stated that to change the street reconstruction process and include a pre- assessment hearing step might politicize the capital improvements program and, unless neighborhoods were in complete agreement on the special assessment, their streets would not be improved and, as a result, the City Council would no longer be responsible for maintaining its street infrastructure in neighborhoods. City Councilmember Wachter shared the methodology of how streets were constructed in the early to mid 1970's stating that the quality of engineering design, inspection and construction has improved immensely during the 1980's and 1990's. City CounciJrnember Masin stated that it would he difficult to change the methodology of the street reconstruction since the program has been ongoing for approximately seven (7) years. However, in her opinion, a program whereby the City pays the full cost of the street improvements is a better policy. City CounciJrnember Blomquist stated that she is in concurrence with City Councilmember Masin and that the City should consider funding the entire street reconstruction program since benefit is difficult to determine to each property owner since street reconstruction is a city's responsibility for maintenance and repair. City Administrator Hedges reminded the City Council that work sessions are scheduled for April 7 and 21 and, further, that the groundbreaking ceremony for the Sleep Inn Hotel is scheduled for 1l:00 a.m. on March 30. There being no further business, the meeting was adjourned at 8:40 p.m. March 24, 1998 Date TLH