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04/06/1999 - City Council Special I / J 00102 MINUTES OF THE SPECIAL MEETING OF THE EAGAN CITY COUNCIL EAGAN, MINNESOTA APRIL 6, 1999 A Special City Council meeting was held on Tuesday, April 6, 1999, in the Council Chambers of the Eagan Municipal Center Building at 4:30 p.m. Those present were Mayor A wada and City Councilmembers Bakken, Blomquist, Carlson and Masin. Also present were Director ofPubIic Works Colbert, Director of Finance VanOverbeke, City Engineer Matthys, Streets Superintendent Erhart, Public Works Coordinator Struve, Director of Parks and Recreation Vraa and City Administrator Hedges, AGENDA ADOPTION In a motion by Councilmember Carlson, seconded by Councilmember Bakken, with all members voting in favor the agenda for the April 6, 1999, Special City Council meeting was adopted. VISITORS TO BE HEARD There were no visitors to be heard. STREET RECONSTRUCTION/OVERLAY POLICY City Administrator Hedges provided an overview and background on a special study that was directed by the City Council at a meeting on February 2, to research and address specific questions in regard to the City's street assessment policy. He further stated that staff was directed to prepare answers to five specific questions agreed upon by the City Council after considerable discussion on the various issues related to special assessments. In addition, the City Administrator commented that the Finance Committee met and discussed ideas for funding road repair including reconstruction, overlays and recycling projects. That report was also completed and included for City Council review. Public Works Director Colbert provided detail on each of the questions that were directed by the City Council at the special council workshop on February 9, Mr. Colbert provided background on the difference between special assessment and non-assessed project costs stating that there are other costs associated with special assessment improvement projects such as administrative costs, interest, bonding, legal fees, county recording fee and with some projects appraisals. The Director of Public Works further cormnented on the second question relating to the number of miles for private streets stating that in 1999 there are about eighteen miles of private streets. He further commented on special assessment versus tax impacts by referencing a table showing the tax impact on various properties for each $100,000 of additional tax levy and what the impact would be if an additional $800,000 were to be raised each year to replace the current special assessment revenue for the street rehabilitation program. Mr. Colbert stated that the burden for commercial/industrial property tax is greater than residential if the tax levy is to pay for street reconstruction. He also noted that commercial/industrial property pays 100 percent of street rehabilitation costs under the current assessment policy, so it is difficult to determine which would be the greater burden. Special City Council Meeting Minutes April 6, 1999 Page 2 001.03 Mr. Colbert also commented on a question that was related to townhome versus single family assessment ratio stating that single family/duplex rates are higher due to the greater number of trips per weekday generated on an average by these zoning categories. Referring to the study, he stated that the average number of trips per week day for single family/duplex units are 9.55, while condominiumltownhome average number of trips are 5.86 and apartments are 6.4, thereby, creating a premise for the reduced rate for town home and condominium dwelling for street reconstruction. Mr. Colbert commented on the final question relating to surveying other communities, stating that there is a great variance as to how cities finance their overlay or street reconstruction projects. He gave examples that Cottage Grove bases their assessment rating in direct proportion to the market value of each individual property, while other cities have a fixed and predetermined policy for their special assessment costs. Director of Public Works Colbert also provided a matrix of nineteen street rehabilitation public improvements that have been assessed over the past six years stating that the assessment revenue associated with street rehabilitation since the policy has been in affect in 1993 totaling $4.5 million. City Councilmember Masin asked about information on the differing assessment policies for roadway reconstruction giving the example of Lakeville. She also asked for clarification on how cities estimate the average percentage of construction projects recovered through assessments which varied from 25 percent in Minneapolis to 70 percent in Brooklyn Park. City Councilmember Blomquist asked if the average percentage of construction projects category took into consideration curbs and other improvements. She questioned the total of costs for special assessments versus non-assessed project costs suggesting that principal and interest and other expenses should be included in the study. City Councilmember Blomquist stated that it would take less staff time to levy for costs associated with street reconstruction overlays as opposed to all the requirements for implementing the street assessment policy. City Councilmember Bakken asked for further explanation on whether cities have had assessment appeals. Public Works Coordinator Struve stated that many cities have not experienced any appeals. Mayor Awada stated that Eagan has had three (3) appeals in six years, all from the Oak Chase neighborhood. City Councilmember Carlson questioned if the $8,000 listed as adriUnistrative costs is a cost savings if special assessments are not levied and, further, asked for staff explanation on cities whose costs are based on a predetermined rate adjusted annually. She further asked for more information on the predetermined base rates and how do the cities of Bumsville, Plymouth and Maple Grove arrive at the flat rate. Mayor Awada asked when the second wave of overlays would occur, at which Director of Public Works Colbert stated the readjusted schedule for Cedar Grove has been extended to approximately 2005. Mayor Awada questioned the City's previous practice of noticing residents of pending assessments based on the assessment policy for reconstruction stating that appraisals seldom allow for that amount to be assessed. She further commented that this practice misleads homeowners and she would prefer to represent a more accurate amount when the original notice is sent to property owners receiving a special assessment notice. Director of Public Works Colbert stated that a fixed amount could be established which would eliminate this issue. Mayor Special City Council Meeting Minutes April 6, 1999 Page 3 001.04 Awada suggested that the appraisal could be made before the project is authorized to determine a cap amount. City Councilmember Blomquist stated that other than Champlin, Eagan is the only city in the eighteen city report that requires appraisals and if this practice is to continue, the public should be able to see the appraisals. City Councilmember Carlson stated that it would be helpful to review the list of street reconstruction projects that remain under the City's current policy. Director of Public Works Colbert stated that according to the five (5) year C.I.P., there are no additional reconstruction projects planned beyond those the Council has already considered this year. City Councilmember Carlson further stated that why spend the amount of time on revising the policy if there are no streets planned for reconstruction in the foreseeable future. Mayor Awada stated that since the policy has worked for the past eight to nine years, it is her opinion that the City can continue with the current policy, but when the second round of overlays occurs in four to five years, a new policy should be given consideration at that time. City Councilmember Carlson stated that she would prefer to keep the policy as is with some small changes and consider a new policy in the future. City Councilmember Bakken agreed with City Councilmember Carlson stating that it would not be fair to the community to make any changes to the policy at this time. City Councilmember Masin asked for clarification about the City's responsibility to repair streets. Director of Public Works Colbert gave the history ofRahn Road and the limited liability and responsibility the City incurs with the condition of roadways before improvements are authorized by the City Council. Mayor A wada summarized the discussion stating that there appears to be a consensus of the City Council to continue with the current policy for street reconstruction/overlays with the understanding that there will be a pre-project appraisal for the last street reconstruction projects. She also asked for additional information on blended rates and would like additional information for consideration of the predetermined base/adjusted annually as to how costs are determined in Burnsville, Plymouth and Maple Grove for later consideration by the City Council. Mayor A wada further suggested that refinement to the existing policy and answers to questions raised by the City Council be further addressed at a future work session on the street reconstruction policy. Mayor Awada addressed Larry Poppler who commented that he be'Iieves the City and property owners would benefit if smaller projects were included in larger construction projects. He further suggested more consistency in project costs and raised a question as to why can't Oak Chase Road and Wilderness Run Road improvements be given a blended rate and would like that example to be considered when the Council further reviews the policy. City Councilmembers commended staff on an excellent report. DISCOVERY PARK City Administrator Hedges stated that City staff have had several meetings in recent weeks with the owners of Skyline Displays, Inc. regarding a proposal to develop Discovery Park, located adjacent to Skyline Displays at the intersection of Lexington and Yankee Doodle Road, for public use on their property. He further stated that there have been meetings held with the subcommittee of the Rotary Club to further consider their plans to participate in the funding of a Special City Council Meeting Minutes April 6, 1999 Page 4 00105 band shell to be located in Discovery Park. Director of Parks and Recreation Vraa reviewed some of the points that would need to be addressed in a legal agreement if the City and Rotary Club and others are to invest in the park. The property would continue to be owned by Skyline Displays until it is gifted to the City at some future date, Director of Parks and Recreation Vraa further reviewed the plan for Discovery Park. City Councilmember Masin asked questions about liability and if Skyline Displays can continue to own the property and how does this differ from the Caponi Art Park? Director of Parks and Recreation Vraa stated that the difference is that Skyline Displays intends to dedicate Discovery Park to the City in the future at no cost. City Councilmember Carlson asked how the park will be developed until it is turned over to the City. Director of Parks and Recreation Vraa stated that it is the intention of Skyline Displays to use their employees for park development. City Councilmember Bakken stated that he is in support of the plan for Discovery Park with the understanding that the City enter into a legal agreement providing protection for any investment and that the property will be dedicated to the City in a period of time no longer than fifteen (15) years. City Councilmember Blomquist also suggested that some property be retained for setback due to its location at the intersection of Lexington and Yankee Doodle Road. Mayor A wada thanked the Director of Parks and Recreation and City Administrator for the update on Discovery Park and stated that there appears to be a consensus to proceed with the legal negotiations necessary to work on a public/private relationship with Skyline Displays to develop Discovery Park with the understanding that the property will be dedicated to the City at some future date under an agreed legal document. OTHER BUSINESS There being no further business, the meeting was adjourned at 6:00 p.m. April 6, 1999 Date TLH