12/08/2008 - City Council Special
MINUTES
SPECIAL CITY COUNCIL MEETING
MONDAY, DECEMBER 8, 2008
5:30 P.M.
EAGAN ROOM – EAGAN MUNICIPAL CENTER
City Council members present: Mayor Maguire, Councilmembers Bakken, Fields,
Hansen and Tilley.
City staff present: City Administrator Hedges, Director of Administrative Services
VanOverbeke, Director of Communications Garrison, E-TV Supervisor Jeff Ongstad, City
Engineer Matthys, Public Works Director Colbert and Chief Financial Officer Pepper.
I. ROLL CALL AND AGENDA ADOPTION
The Mayor called the meeting to order.
Councilmember Bakken moved; Councilmember Fields seconded a motion to adopt the
agenda as presented.
Aye: 4 Nay: 0 (Councilmember Tilley not yet present.)
Councilmember Tilley arrived at 5:42 p.m.
II. 2009 E-TV BUDGET
City Administrator Hedges introduced the item, noting that on May 13, 2008 the City
Council gave direction on a desired location for a new community television studio because its
joint lease with the City of Burnsville at the previous studio was set to expire at the end of
December 2008. Hedges added that on July 15, 2008 the City Council approved the
Memorandum of Understanding with Thomson Reuters Corporation to build a new Eagan
television (E-TV) public access studio on their corporate campus and a separate Memorandum of
Understanding with Burnsville to govern the sharing of a mobile production van, and a division
of equipment from the old facility. Hedges summarized the proposed 2009 E-TV budget.
Communication Director Garrison and E-TV Supervisor Ongstad responded to questions
of the City Council regarding the proposed budget.
The City Council directed the 2009 E-TV budget to the December 16, 2008 City Council
meeting for formal consideration.
III. PRESENTATION ON EAGAN RAIN GARDENS
City Administrator Hedges introduced the item noting that in June of 2007, the City
Council approved the 2008 – 2012 Capital Improvement Plan (CIP) for Public Works
Infrastructure Part III. Hedges added that this is the first CIP that included water quality
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December 8, 2008
Page 2
improvements as part of the five (5) year program that typically addresses street and utility
improvements.
City Engineer Matthys provided a summary of the rain garden program that has been
implemented in the City of Eagan as part of the CIP. Matthys noted that 21 rain garden locations
now exist in the City of Eagan. Mr. Matthys and Barr Engineering consultant, Fred Rozumaiski,
provided a presentation on the purpose and effectiveness of the rain gardens.
The Eagan City Council discussed the rain gardens and suggested possible education of
the public through the City of Eagan newsletter regarding work that residents could do via
independent landscaping that would provide the same or similar benefit as rain gardens.
IV. FUNDING OF OTHER POST EMPLOYMENT BENEFITS (OPEB)
City Administrator Hedges introduced the item noting that since the financial audit that
was completed in December of 2003, and continuing with all subsequent audits, the City’s
independent auditors have been working with staff regarding the Government Accounting
Standard Board (GASB) work on development and implementation of new accounting standards
related to the reporting of Other Post Employment Benefits (OPEB).
Director of Administrator Services VanOverbeke provided a summary of the work that
has been done over the past five years with regard to OPEB. VanOverbeke provided a summary
of the new GASB standards, and provided public policy questions and a proposed funding plan
for the City Council’s consideration.
The City Council discussed the recommendations of staff and directed that the following
action be included on the December 16 City Council agenda:
To approve the following implementation steps and funding sources for Other Post Retirement
Benefits (OPEB) to meet the requirements of the Governmental Accounting Standards Board
(GASB).
Implementation Steps:
1.Set up a trust using the Public Employee Retirement Association as the
Administrator and the State Board of Investments for investing the trust assets.
Take the necessary steps internally to use the trust to process premium payments
and to retain the necessary consulting services to meet the GASB Statement
requirements.
2.Use City resources to finance the Unfunded Actuarial Accrued Liability and to
pay the 2008 and 2009 Normal Costs.
3.Transition to operating departments paying the annual Normal Cost for benefits
related to employees by department over a period of time. The Benefit Accrual
Fund would contribute $125,000 toward the Normal Cost in 2010 and continue a
contribution declining by $25,000 per year, ending in 2014 with a $25,000
contribution. As the Benefit Accrual Fund contribution declines, the operating
departments’ contributions increase until the operating departments are paying the
full annual Normal Cost in 2015.
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December 8, 2008
Page 3
4.Since operating departments would be paying for future benefits on an on-going
basis, the City policy of requiring staff vacancies to accumulate funds be
discontinued after all the related vacancy requirements currently in place have
been concluded.
Funding Plan:
Total Funding Uses:
Actuarial Accrued Liability$ 4,766,441
2008 Normal Cost 161,591
2009 Normal Cost 161,591
Total$ 5,089,623
Resources:
Advanced From General Fund$ 1,778,473
Benefit Accrual Fund 2,311,150
Risk Management Fund 1,000,000
$ 5,089,623
The total dollar amount transferred to the trust may be adjusted per additional advice from the
City’s auditors to ensure proper accounting and reporting for the fiscal years involved.
Adjustments will be made through the Benefit Accrual Fund as necessary.
V. OTHER BUSINESS
Mayor Maguire noted a recent article that appeared in the Pioneer Press regarding
difficulties that residential builders are having in this economic climate.
VI. VISITORS TO BE HEARD
There were no visitors to be heard.
VII. ADJOURNMENT
Councilmember Fields moved; Councilmember Bakken seconded a motion adjourn the
meeting at 7:20 p.m.
Aye: 5 Nay: 0