11/01/1990 - City Council SpecialMINUTES OF A SPECIAL MEETING OF THE
EAGAN CITY COUNCIL
Eagan, Minnesota
November 1, 1990
A special meeting of the Eagan City Council was held on Thursday, November 1, 1990 at 5:30
p.m. in the Conference Rooms of the Municipal Center building. Present were Mayor Egan, City
Councilmembers Gustafson, McCrea, Pawlenty and Wachter. Also present were City Administrator
Hedges and Director of Finance VanOverbeke.
LABOR NEGOTIATIONS UPDATE
City Administrator Hedges along with Assistant to the City Administrator Duffy and Chief of Police
Geagan provided an update to the City Council regarding the status of labor negotiations with LELS on
behalf of the Police Association. He stated that a mediator was appointed from the State Bureau of
Mediation Services and a meeting was held with representatives of the City and Police Association present
to further discuss wage and insurance proposals that reached an impasse in the collective bargaining
process.
After a presentation by the City Administrator and further review of the contract proposal, there
was a unanimous roll call consensus that the City not revise its proposal stating that the offer was a fair
proposal.
CIGARETTE VENDING MACHINE LEGISLATION
City Administrator Hedges recommended that discussion considering the restriction for cigarette
accessibility to children by the possible removal of vending machine sales be continued to allow the City
Council to proceed with a joint meeting of the Advisory Parks Recreation Commission. Mayor Egan
received a unanimous consensus from the City Council that the cigarette vending machine legislation be
considered at a future work session.
JOINT PARKS RECREATION COMMISSION MEETING
Mayor Egan convened the joint meeting of the Advisory Parks Recreation Commission and
welcomed Commissionmembers George Kubik, Michele Swanson, Shawn Hunter, Jack Johnson, Dick
Carroll and John Griggs. It was noted that Commissionmember Ted Billy was absent. Also present were
Parks Recreation staff including Steven Sullivan, Landscape Architect/Parks Planner; Dorothy Peterson,
Recreation Supervisor II; John VonDeLinde, Parks Superintendent; and Ken Vraa, Director of Parks
Recreation.
City Administrator Hedges stated that the City Council met in a Special City Council meeting on
August 9 to review the proposed 1991 budget and, as a part of their review, questions were raised
regarding a number of expenditures including certain expenditure proposals for the Parks Recreation
budget. Director of Parks Recreation Vraa provided an indepth presentation, with periodic questions
and discussion by members of the Advisory Parks Recreation Commission and City Council, that
addressed how recreation programs should be financed, whether certain recreational services should be
provided by the private sector and a general cost breakdown explaining the types of services and the
expenses incurred by the Parks Maintenance Division. Following the presentation, City Councilmember
McCrea requested a further expenditure breakdown on the cost difference in maintaining passive and
active parklands. She also requested that staff provide a further cost breakdown for each operation and
service which allows the City Council to better evaluate the present and future costs for certain services
that are provided by the Parks Recreation Department. Since the City budget, in its present format, is
not a program budget, it was agreed that averages would be used to obtain the information. City
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November 1, 1990
Councilmember Gustafson stated that the proposed 1991 budget has severe constraints and is concerned
that the 7.9 percent increase as projected by Parks Recreation is not consistent with the average
increase of 3 to 4 percent for other departments, such as Police and Fire. The Director of Parks
Recreation stated that a $16,000 error was discovered in recalculating the budget which will lower the total
for proposed expenditures and further that much of the increase is caused by expanded or new programs
that are offset by the compliment of a revenue source, therefore do not represent a true increase in the
budget. City Councilmember Gustafson further stated that certain programs, such as funding
maintenance and operations for park shelter buildings that are used by adults, may lower funding
opportunities for youth programs. He further stated that he was in agreement with City Councilmember
McCrea that additional analysis is necessary to project and determine the cost for maintenance of active
parklands which helps the City Council assess its overall priorities of where our budget dollars should be
distributed. City Councilmember Gustafson further stated that emergency services are essential, therefore
Police and Fire could receive additional budgetary allocations in the future that could impair certain
programs or maintenance that is provided by their departments. Therefore, it is necessary to carefully
analyze whether certain services or programs can be reduced or eliminated to continue with balanced
budgets.
Commissionmember Kubik spoke highly of the programs that have been implemented in recent
years by the Parks Recreation Department given the small amount of staff. Commissionmember Griggs
suggested that the City explore low investment/high gain opportunities that will generate more revenues
for the City's general fund by planning certain market opportunities for the Parks Recreation
Department. He further stated that the Advisory Parks Recreation Commission should be given an
opportunity to address these opportunities and provide some recommendations to the City Council.
Commissionmember Kubick stated that the City must be careful to not move too quickly with a business
philosophy versus service concept without readdressing the overall Mission Statement of the City's Park
Recreation objectives and existing staff limitations.
City Councilmember Pawlenty stated that he would like to see all programs expenditure neutral
and asked that staff quantify all expenditures that are offset by revenues which allows the City Council
to readdress an actual proposed increase for the Parks Recreation Department.
Mayor Egan thanked the Advisory Parks Recreation Commission for meeting with the City
Council and further stated that it is the objective of the City Council to have more meetings with its
advisory commissions for the purpose of evaluating existing and proposed policy.
CAPONI ART GARDEN CONCEPT
City Administrator Hedges stated that Mayor Egan and City Councilmembers Pawlenty and
Wachter along with the City Administrator and Director of Parks Recreation met with Mr. Anthony Caponi
on Saturday, October 20, to discuss the Caponi Art Garden concept. Mayor Egan summarized the
meeting and stated that those in attendance at the meeting with Mr. Caponi are suggesting that the City
Council and Advisory Parks Recreation Commission further discuss the proposal and reach a
consensus on the level of commitment the City should make to the project, specifically as it relates to any
implementation of City resources. Members of the Parks Recreation Commission and City Council both
agreed that institutional support from the City of Eagan is necessary in order to pursue foundation dollars
for funding the project. City Councilmember Wachter stated that the proposed Art Park concept is a
unique opportunity for the community and would be enjoyed by residents of the City and region for many
years into the future. After further discussion, there was a consensus by both members of the Advisory
Recreation Commission and City Council that a resolution be drafted to show support and request
community assistance and that said resolution be considered by the City Council at the November 8
meeting. There was also a clarification that if City resources are to be used, there would be a written
agreement with Mr. Caponi that the allocation of City personnel be repaid by a foundation once financial
resources are received to fund the project.
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November 1, 1990
BLACKHAWK PARK SHELTER DISCUSSION
City Administrator Hedges stated that the Council had raised questions in regard to the cost for
the operation of park shelter buildings. Blackhawk Park will be proposed to have a building, which the
Lions Club have indicated they would help fund. Commissionmember Hunter said he was a Lions Club
member and the Club had over $100,000 to put toward a building; and that the July 4th celebration at
the park was not a condition for giving the money. In response to concerns of the neighborhood, City
Councilmember Pawlenty stated that a compromise with the neighborhood for the use of the park and
the building should be an objective given the community park designation.
PROPOSED 1991 GENERAL FUND BUDGET CONSIDERATION
City Administrator Hedges reviewed additional information as requested by the City Council at the
August 9 special City Council meeting regarding certain funding considerations for the 1991 General Fund
Budget. He briefly remarked on contractual services/use of consultants the City is relying on for general
govemment operations, a comparative analysis of attorney's fees, the increase for Fire Department officers
and other proposed expenditures.
EQUIPMENT REVOLVING FUND
COMMUNITY INVESTMENT FUND
PROPOSED 1991 PUBLIC ENTERPRISE FUND
City Administrator Hedges presented the proposed Public Enterprise Fund for 1991 which
includes the sanitary sewer, water and streetlight utilities in the amount of $6,065,125. The City
Administrator stated that with the exception of an adjustment in the streetlighting rates to allow for the
administrative cost transferred to the general fund, there were essentially no changes in the proposed
Public Enterprise Fund. The City Administrator further explained that there are no new personnel or
operational changes in any of the three utilities. He stated that certain capital equipment items have been
requested for small equipment items. The City Administrator stated that the garage expansion debt is
itemized as a part of the capital expenditure under the water and sewer utilities as proposed. Director
of Finance VanOverbeke reviewed the Public Enterprise Fund net income worksheets, explaining the
grand total revenue, revenue available for operations and expenditures including/excluding depreciation.
City Councilmembers expressed their satisfaction in the Public Enterprise Budget as presented. The City
Administrator further stated that the storm water utility fund is complete and will be presented at the final
budget session for consideration.
City Administrator Hedges continued a review of the proposed 1991 budget by outlining the
Equipment Revolving Fund expenditure as proposed in the amount of $988,560. After a discussion by
the City Council, direction was given to prioritize each of the proposed capital needs and reduce the
amount of the Equipment Revolving Fund as proposed by $300,000-$400,000.
Director of Finance VanOverbeke presented the concept of a Community Investment Fund that
would allow for appropriate financial management of the accumulated balances in special assessment
funds. He further stated that all surplus monies and each improvement fund which remains after all the
costs of each improvement have been fully funded which are not transferred to another spare
improvement fund would be transferred to the Community Investment Fund. City Councilmembers
discussed the Community Investment concept and asked that the Director of Finance and City
Administrator revise the draft policy to consider 1) the investment fund as a ratio to the general fund, 2)
modify the restrictive limits on the principal, 3) provide historical analysis on how the funds were
accumulated and 4) consider using a portion of the principal prior to the establishment of the Community
Investment Fund.
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November 1, 1990
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ESCROW COLLECTION ORDINANCE IMPLEMENTATION
Director of Finance VanOverbeke presented information on how the Escrow Collection Ordinance
was being implemented and asked what, if any, changes the City Council desired to make to that
implementation. The City Council expressed satisfaction in the process as it is being used and directed
staff to continue the implementation without modification.
ADJOURNMENT
There being no further items, the meeting was adjourned at approximately 9:30 p.m.
TLH
City Clerk