09/30/1997 - City Council Special
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MINUTES OF A SPECIAL MEETING
OF THE EAGAN CITY COUNCIL
Eagan, Minnesota
September 30, 1997
A special City Council meeting was held on Tuesday, September 30, 1997 at 5:00 p.m., in the
Community Room at the Eagan Municipal Center Building. Present were Mayor Egan and City
Councilmembers Awada, Blomquist, Masin and Wachter. Also present were Director of Finance
VanOverbeke, Director of Parks and Recreation Vraa, Chief of Police Geagan, Director of Public Works
Colbert, Superintendent of Utilities Schwanz, Superintendent of Parks Olson, Superintendent of
Recreation Peterson and City Administrator Hedges. Mayor Egan acknowledged that there were no
visitors to be heard.
GENERAL FUND BUDGET REVIEW
City Administrator Hedges stated that questions were raised at the August 26 special City Council
meeting regarding the draft 1998 General Fund Operating Budget. He stated that questions included
1) what does the boulevard mowing cost and are their alternatives to continue the existing program,
2) can recreation program revenues be increased or expenditures decreased to reduce the amount of
revenue required from other sources to provide these programs, and 3) at what level has the contingency
account historically been funded. City Councilmember Wachter questioned whether the current time
cycle for mowing all City boulevards could be extended to a 20 - 25 day cycle to reduce costs.
Superintendent of Parks Olson presented information on the consequences of mowing at extended cycles
stating that the City has received complaints about the grass accumulation on streets and other related
problems. Mayor Egan stated that there is a fundamental fairness that the City maintain its City
boulevards adjacent to private property at the same height and frequency that is expected of its business
and residential properties. City Councilmember Blomquist complimented staff on an excellent report and,
further stated that there is no additional apparent cost savings to them in the way the City is providing its
boulevard mowing. City Councilmembers concurred with the study and Mayor Egan thanked
Superintendent of Parks Olson and Director of Parks and Recreation Vraa for their response to questions
regarding the cost effectiveness as to how the City performs its boulevard mowing.
City Administrator Hedges and Director of Parks and Recreation Vraa provided information on the
analysis that was performed by Parks and Recreation staff to present ideas for consideration that reduce
expenditures and/or enhance revenues to offset a greater portion of the park program expenses. As a
part of the presentation, short term solutions were reviewed that eliminate Evening in the Park concerts
and other programs that could reduce expenditures. Philosophical differences practiced in other
metropolitan communities and how the park programs are funded and, finally, longer term entrepreneurial
options were presented for discussion.
City Councilmember Wachter asked if the City had attendance figures on use of the wading pool
and further suggested that consideration be given to charging in the future for that service. He further
stated that the wading pool might be a good location for a concession trailer that would generate revenue
through food sales. City Administrator Hedges suggested that the concession trailer be placed adjacent
to the wading pool and used for both the ticket sales and food sales if a decision is reached by the City
Council to charge for that recreational service. Director of Parks and Recreation Vraa stated that many
other cities uses a facility based revenue stream for many of their services such as the wading pool. City
Councilmember Masin stated that in reviewing the list of entrepreneurial options that it was her
suggestion that the City consider family oriented facilities which are presently lacking in the community.
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September 30, 1997/Page 2
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City Councilmember Awada stated that she is supportive of programs that will generate a positive cash
flow, are self-sustaining and provide additional revenue for the general fund.
City Councilmembers discussed the list of entrepreneurial options provided by the Director of
Parks and Recreation that range from the concession trailer, a golf driving dome, rope tows for tubing at
Blackhawk Hills to charging students for parking in the Northview parking lot. City Administrator Hedges
stated that staff is looking for direction as to whether they can begin exploring these ideas with the
understanding that any and all programs will be pursued in concept before any pUblic dollars are
expended or a program is implemented that will require a City Council review and action.
City Councilmember Blomquist stated that she would like for the City Council to consider a cap on
park programs at the 1997 budget amount and transfer the difference between 1997and a proposed
budget for 1998 to a street fund to be designated for street repair. City Councilmember Masin stated that
she has reservations on the City brokering the Fourth of July Celebration due to the present success and
involvement of volunteers and further questioned whether the City should promote beer sales on public
property. City Councilmembers concurred that the City should not take over the Fourth of July
Celebration, however, on the question of beer sales agreed that it should be given consideration and may
be okay under certain circumstances. City Councilmember Awada stated that this information and
discussion is exactly what the City Council requested and the City should establish as a long-term seven
to eight year goal a zero budget gap for recreational programming. City Councilmember Masin stated
that the City Councilor APrC should evaluate options and determine what programs are best for the
community in future years. City Administrator Hedges stated that the information should be presented to
the APrC for their review and consideration.
Mayor Egan, again thanked the staff for a thorough response to the City Council's question on
alternative revenue sources and further that a long-term direction be given to the staff and APrC to
explore in concept programs that will work toward a goal that achieves a zero budget gap for all
recreation programming.
City Administrator Hedges and Director of Finance VanOverbeke reviewed the history of
contingency funds that date back to 1982. City Councilmember Blomquist stated that it is her recollection
that certain contingency amounts were larger in the 1980's due to a Council determination to budget for
certain programs such as comparable worth. She further suggested that the contingency fund be
reduced by $100,000 and transferred to a special street fund for the purpose of maintaining and
rehabilitating City streets. City Councilmember Awada stated that additional funding for the street
maintenance/rehabilitation budget should be considered when the pavement management program is
readdressed by the City Council. City Councilmember Wachter concurred with Councilmember Awada
stating that the Public Works Committee is planning to review the Street Maintenance/Rehabilitation
program prior to the City Council's review later this month and suggested that the street fund be reviewed
separately and money transferred at a later date, if that is the City Council's determination after
completing a comprehensive review of the pavement management program. After further discussion,
there was general agreement by the City Council that the contingency budget would remain as presented
for the 1998 General Fund Operating Budget.
1998 PUBLIC ENTERPRISE FUND BUDGET
City Administrator Hedges stated that a draft budget for calendar year 1998 has been prepared for all
Public Enterprise Funds, including the water utility, sanitary sewer utility, street lighting, storm
drainage/water quality utility and the Civic Arena.
City Administrator Hedges reviewed the water utility budget stating that the budget for 1998 would
be an actual decrease of $15,300 from the 1997 budget. He stated that a major reason is the shift in
capital expenses that include a $400,000 expenditure for land purchase from Blue Cross/Blue Shield to
expand the maintenance facility campus which is offset by decreases in capital expenditure for large
acquisitions that were budgeted for 1997. He further stated that the sanitary sewer utility budget is
proposed to increase by 1.8% from 1997 to 1998.
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Director of Public Works Colbert commended Superintendent of Utilities Schwanz for his
excellence in coordinating personnel and service delivery in an effort to hold the costs down. He stated
that the result of good budgeting and management practices will be reflected when the utility rates are
reviewed. After a brief discussion and questions by the City Council, Mayor Egan thanked the City
Administrator and Director of Public Works for the very favorable annual budget proposal for the water
and sanitary sewer utilities.
City Administrator Hedges provided a brief overview of the proposed 1998 storm drainagelwater
quality budget. City Council member Blomquist stated that she has a philosophical difference with how
the storm drainagelwater quality utility operation is funded. She stated that the charge for the program
should no longer be included in the utility bills and the total cost returned to the general fund. City
Councilmember Blomquist further stated that the utility fee charged on the utility bills is merely a tax,
however, the customer cannot deduct the expense as a tax. Director of Public Works Colbert stated that
by shifting the storm drainagelwater quality utility budget from the General Fund to the Public Enterprise
Fund several years ago has allowed the City to charge all parcels, including tax exempt, for the storm
drainage/water water quality utility program. Mayor Egan stated that there were several public hearings,
informational meetings and considerable thought given at the time the storm drainage/water quality utility
budget was shifted from the General Fund to the Public Enterprise Fund. He stated that he continues to
support the storm drainagelwater quality utility fee stating that the cost is very nominal at approximately
$5.60 per quarter on a residential billing. Mayor Egan further stated that among many justifications for
charging all parcels a storm water utility charge is the environmental results the Storm DrainagelWater
Quality Utility Management Program provides the community. City Councilmember Blomquist stated that
she is in support of the program, however, if there is not concurrence to shift the cost back to the general
fund, every effort should be made to eliminate any other fees being tacked onto the utility bill. Director of
Finance VanOverbeke stated that with the exception of intersection and neighborhood street lighting,
there has been no discussion or consideration of any other charges to be included on utility bills.
City Councilmember Masin stated that she understood from a comment from Water Quality
Coordinator Rich Brash that water quality was not improving. Director of Parks and Recreation Vraa
stated that it was his understanding that in fact the water quality has improved on five of the seven class
one water bodies. Recent storms in July had increased the run off and that lakes were now more
turbulent resulting in the appearance of poor water quality.
After further review and consideration by the City Council, there were no changes proposed for
the Storm Water Utility Budget.
City Administrator Hedges presented a budget for the Civic Arena stating that three months of
operations for the second sheet of ice are included in the budget proposal.
After questions regarding depreciation and other costs, City Councilmembers concurred on the
draft 1998 Civic Arena Budget. Mayor Egan thanked the City Administrator and staff for all the work on
the Public Enterprise Fund Budget and, further, that a final ratification of the Public Enterprise Fund
Budgets will be given consideration at a regular City Council meeting in December.
MUNICIPAL CENTER MASTER PLAN
Greg Ingraham representing Ingraham and Voss, and Paul Dahlberg representing ACC
Architects, both appeared to participate in the review and discussion of the municipal master plan
proposal. City Administrator Hedges introduced the item. City Councilmember Wachter asked whether
the County is agreeable to allow the City to use a portion of the library site? Director of Parks and
Recreation Vraa stated that he has met with County staff from the Physical Development Department on
site to review the concept plans. They indicate that the library may undergo an expansion in
approximately ten years, and therefore they needed to study the issue and to review it with the library
board and others. He went on to say that the county staff neither approved nor rejected the idea as
unworkable. City Councilmember Wachter stated that Plan C provides more possible expansion
alternatives for the library and the City. He further stated that he would like the swimming pool to have
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September 30, 1997/Page 4
the capability of having roof enclosure in the future. Mr. Paul Dahlberg representing ACC Architects
stated that the pool could be designed for a future roof enclosure if the original design considers this type
of expansion. He stated that the footings and other structural infrastructure would have to be constructed
to accommodate load factors for a future roof enclosure. Both Mayor Egan and City Councilmember
Wachter expressed their support of concept C as presented by the consultant. City Councilmember
Awada asked if either plan could accommodate a wading pool. Mr. Ingraham stated that a wading pool
could be included in either of the alternatives, however, it will require additional space given the fact that a
wading pool needs to be separated from the regular swimming pool. City Councilmember Awada raised
concerns about concept C stating that the large parking area shown on the north side of the swimming
pool is not convenient for the Civic Arena and asked the consultant why he supported concept Cover
concept B. Mr. Ingraham stated that concept C provides good visibility for the swimming pool which is an
important marketing feature. He further stated that it also keeps the active pool further away from
residents located on the east, utilities are more economical and the parking lot provides a better direct
access to the swimming pool which is an important consideration.
City Administrator Hedges stated that a short term alternative for the amphitheater might
be a plaza area designed for small concerts adjacent to the swimming pool. He stated that this type of
concept would allow the community to enjoy concerts on a small scale and once the interest grows, an
amphitheater could be built at another location.
City Councilmember Masin asked that with all the facilities being considered, an amphitheater,
wading pool, swimming pool and parking, whether the municipal center site is adequate for these
facilities. She stated that possibly the site should be considered for parking expansion and consider
another location for a swimming pool and amphitheater. City Councilmember Wachter stated that the
location in the center of the community is very desirable for a pool and feels there is adequate space for
both parking and a swimming pool. City Councilmember Masin stated that she is unsure about the site
and feels the uses, in addition to the parking, are not compatible given the amount of land. City
Councilmember Blomquist stated that she is uncertain about the financing for a pool, stating that there
are no funds available for a municipal pool complex. City Councilmember Wachter stated that the City
has funds to build a swimming pool and the question before the City Council is whether those funds
should be expended.
City Councilmember Awada suggested that the City Council continue the discussion on the
municipal center master plan until a future date and in the meantime arrange for a tour of a municipal
swimming pool such as the St. Louis Park complex. She further stated that concept B, in her opinion,
would be better suited as a site for the swimming pool with some modification. City Councilmembers
continued discussion focussed on directing the consultant to provide some modification to plan B, the City
Administrator to arrange a tour of the St. Louis Park complex and continue any further consideration of
the municipal center site master plan until a future work session.
SECOND ICE SHEET PLANS AND SPECIFICATIONS
Paul Dahlberg presented revised drawings for the second sheet of ice based on the Councils
previous direction to pull the building back to the South and to relocate the bathrooms. In response to a
question about parking, he suggested that temporary parking lot, USing class five material, could be
constructed in the area identified in the site planning where there would be swimming pool parking. City
Councilmembers concurred with plans for a second sheet of ice but deferred a decision on the extent and
location for a temporary parking lot until further refinement of the site master plan.
After review and further consideration for the second sheet of ice by the City Council, Mayor Egan stated
that by consensus of the Council, ACC Architects can proceed with plans and specifications for the
second sheet of ice and, further that the item be placed on a future Consent Agenda for ratification.
CITY INVESTMENT POLICY
City Administrator Hedges stated that along with Director of Finance VanOverbeke, they have
discussed the preparation of a policy statement that would establish certain standards governing the
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September 30, 1997/Page 5
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investment of City funds. He also stated that the Director of Finance has prepared an investment policy
for City Council review and consideration. The City Administrator stated that this policy statement is
presented to establish standards governing the investment of City funds as a matter of official City
Council policy.
After a brief discussion, City Councilmembers expressed their appreciation for the official
investment policy and commended the Director of Finance for his excellence in managing all City funds.
Mayor Egan stated that this item will appear on a Consent Agenda at a future regular City Council
meeting.
SPECIAL ASSESSMENT POLICY FOR PROJECTS 714 AND 715
Director of Public Works Colbert stated that staff is looking for direction on how to prepare the
final special assessments for public improvement Projects 714 and 715. He stated that action will be
taken at the October 7 meeting to schedule publiC hearings for both projects at the November 4 City
Council meeting. Colbert provided a breakdown of the costs and reasons for each of the alternatives
outlined in his report for Project 714 which is the Donald Avenue improvements. Mayor Egan stated that
if the City represented a certain cost estimate at the original public hearing, we should stay within that
amount. Colbert stated that the amount represented at the publiC hearing for Donald Avenue, (Project
714), was $660 per lot. City Councilmember Awada asked what amount should the City have
represented at the public hearing. Director of Public Works Colbert responded that the per lot special
assessment would have been $991 for Project 714 based on the completed scope of improvements. He
further stated that the difference is approximately $11,000 of contribution by the City to the project.
After further review, there was a general concurrence by the City Council that the estimated
amount represented at the original public hearing of $660 per lot should be the amount used for the final
assessment roll. Mayor Egan stated that the residents are expecting this special assessment amount
and in actuality will be receiving more road improvement than was presented at the original hearing.
Director of Public Works Colbert reviewed the special assessment amount for Project 715 which
was Heine Strasse street rehabilitation project. He stated that this special assessment improvement will
cost approximately $75 per lot more than was represented at the original public hearing. After reviewing
the reasons for the increase, City Councilmembers directed the Public Works Director to prepare the final
assessment roll for Project 715, based on the estimate contained in the feasibility report presented at the
original public hearing.
COMMUNITY COLLECTOR ROADS
Director of Public Works Colbert presented an issue that has arisen with the proposed develop of
the Brown property which is located south of Cliff Road, west of the Walden Heights development and
east of the Beacon Hills development. He stated that Thomas Lake Road will be extended through the
property which is designated as a city collector street in the Comprehensive Guide Plan. He further
stated that Lundgren Brothers, the developer of the subdivision, would like to propose driveway access
onto Thomas Lake Road which is not recommended under the cities thoroughfare plan for city collector
roads. Director of Public Works Colbert further stated that a similar situation is occurring on the Bieter
property with the extension of Johnny Cake Ridge Road through that parcel to connect with Deerwood
Drive and serving Blackhawk Middle School. He stated that the most recent development plans
submitted by Pulte show direct driveway access to Johnny Cake Ridge Road. City Councilmember
Blomquist and Mayor Egan stated that with all the access out of the Brown property it may not be
necessary to classify Thomas Lake Road as a city collector street south of Cliff Road. They concurred
that the alignment of Thomas Lake Road from Covington Lane to Cliff Road should be indirect to
discourage through traffic and promote the many alternate access points. City Councilmember Awada
suggested that staff work with Lundgren Brothers in an effort to limit driveway access on Thomas Lake
Road close to Cliff Road.
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September 30, 1997/Page 6
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After receiving concurrence and direction by the City Council, Director of Public Works Colbert
suggested that the City's thoroughfare plan be revised to eliminate Thomas Lake Road as a city collector
street south of Cliff Road.
Director of Parks and Recreation Vraa also commented on the Brown property and proposed
development by the Lundgren Brothers stating that their proposal for parkland dedication is not consistent
with the City's plan. He stated that residents in Walden Heights have been counting on a community park
that would serve their subdivision and the future development of the Brown property. After discussing the
proposal as presented by the Lundgren Brothers, the City Council concluded that the park as proposed
would be too small and the original intent for a park sized to serve both developments should be pursued
with the developer dedicating his full obligation.
OTHER BUSINESS
City Administrator Hedges stated that the City has received plans for a 16 screen first run theater
to be located on Cliff Road, west of Rahn Road and adjacent to the Taco Bell Restaurant. He further
stated that he has implemented a reorganization of the Administrative Assistant position that was held by
Liz Witt in the Finance Department. He stated that along with the Director of Finance, alternatives have
been reviewed for several months. He stated that the Administrative Secretary position will be upgraded
to a shared title of Deputy Clerk. Her responsibilities will include all records retention and responsibility
for licenSing and the City's front counter reception area. He further stated that Barb Hand, a half time
accounting position in Finance, will be expanded to full-time and assume all purchasing and other Deputy
Clerk responsibilities. The City Administrator further stated that an entry level clerical position will be
hired to work from 10:00 a.m. to 2:00 p.m. as a backup for the front counter in Finance and Administration
and ultimately will be shared with Community Development and Engineering to assist with customer
service coverage for noon hours and other appropriate scheduling. The City Administrator stated that by
spreading the responsibilities of the Administrative Assistant position, there will be some cost savings to
the City along with enhanced customer service. City Councilmembers expressed their appreciation for
the continued reorganization objectives that save public dollars while addressing improved methods for
meeting service delivery objectives. City Administrator Hedges stated that once the TSP's are completed,
this item will be placed on a consent agenda for official ratification.
Director of Public Works provided an update on the proposed Meadowview road assessments
(615R) informing the Council that the final assessments significantly exceeded the preliminary estimate
due to unexpected easement acquisition costs and including all previously unassessed costs from the
previous project (615) from 1991 to 1006. The Council expressed appreciation for the background prior
to the final assessment public hearing.
ADJOURNMENT
There being no further business, the meeting was adjoumed at 9:15 p.m.
September 30, 1997
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