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HomeMy WebLinkAboutCity Council - 03/15/2022APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, MARCH 15, 2022 7:00 PM, CITY CENTER CITY COUNCIL Mayor Ron Case, Council Members Mark Freiberg, PG Narayanan, Kathy Nelson, and Lisa Toomey CITY STAFF City Manager Rick Getschow, Public Works Director Robert Ellis, Parks and Recreation Director Jay Lotthammer, Community Development Director Julie Klima, Police Chief Matt Sackett, Fire Chief Scott Gerber, and City Attorney Maggie Neuville I. CALL THE MEETING TO ORDER Mayor Case called the meeting to order at 7:00 PM. All Council Members were present. II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION IV. PROCLAMATIONS / PRESENTATIONS A. ACCEPT DONATION FROM ELAINE SAMPSON FOR ART CENTER EQUIPMENT (Resolution No. 2022-46) Lotthammer stated the donation is from Elaine Sampson and will go to the Art Center to purchase two new wheels and bats for ceramics. He noted the Sampson family has contributed to the Center in the past. Case pointed out the Sampson family has contributed large amounts regularly. MOTION: Nelson moved, seconded by Freiberg, to adopt the Resolution No. 2022-46 accepting the donation in the amount of $10,000 from Elaine Sampson to go towards Art Center equipment and programs. Motion carried 5-0. B. ACCEPT DONATION FROM EDEN PRAIRIE LIONS CLUB FOR OUTDOOR CENTER EQUIPMENT (Resolution No. 2022-47) Lotthammer explained this item is to accept a donation for Staring Lake CITY COUNCIL MINUTES March 15, 2022 Page 2 Outdoor Center. This donation from the Lions Club will go towards purchasing items to support the fishing and canoeing programs. Case noted he is a member of the Lions Club and all of the funds raised by the Lions go back into the community. He added there is an upcoming fish fry and a pancake event. MOTION: Freiberg moved, seconded by Toomey, to adopt Resolution No. 2022-47 accepting the donation of $700 from Eden Prairie Lions Club for Outdoor Center equipment. Motion carried 5-0. C. RECOGNITION OF READERS CHOICE AWARDS Lotthammer introduced Valerie Verley, Community Center Manager, to present the Reader’s Choice Awards. Verley stated the Sun Current 2021 Reader’s Choice Award for “Best Recreational Center” has been awarded to the Eden Prairie Community Center. This is the seventh year in a row where the Community Center has received the recognition for “Best Recreational Center.” Additionally, this is the second year where Round Lake Splash Pad has been recognized for “Best Water Park.” Verley explained the Reader’s Choice award winners are selected during a six-week voting period by print and online readers through a Reader’s Choice Survey. Organizations located within a regional territory around Eden Prairie are among this year’s 2021 award winners in various categories. Case added the Community Center has been seriously impacted by the pandemic, and Staff has done a great job maintaining services despite the challenges. D. CITY ASSESSOR UPDATE Case stated members of the Council have been receiving phone calls regarding assessments, so it wanted to hear from the City Assessor. Getschow noted it is been busy for the Assessment Team. He introduced Jon Thompson, City Assessor, to continue the Staff presentation. Thompson stated the time has been unprecedented in terms of residential real estate value. He explained all taxable property values are estimated as part of the annual assessment process. Estimated market values are based on recent open market sales. The 2022 assessment increase is a result of the current real estate market. Eden Prairie experienced similar growth as surrounding communities, also consistent throughout Minnesota and most national real CITY COUNCIL MINUTES March 15, 2022 Page 3 estate markets. Thompson stated the annual assessment must meet statutory requirements such as oversight by the Department of Revenue (DOR), statistical measures of quality, and assessment profession standards and ethical practice. Thompson noted the assessment date is January 2. There are 22,824 active parcels in Eden Prairie, 20,401 are residential properties, and 738 parcels are commercial, industrial, and multi-family. The remaining are exempt or state assessed such as railroads or utility sites. Thompson stated nearly 22,000 parcel values are estimated every year. For most residential properties, this is accomplished utilizing an industry-wide standard process of computer-assisted mass appraisal. Estimates use ongoing and cyclical process of collecting and verifying data, analyzing open market sales, and developing and applying rates to properties. Thompson stated in Minnesota, sales analyzed in setting the 2022 assessment occurred between October 1, 2020 and September 30, 2021, known as the sales ratio study. Case asked if the sales ratio has to be within a certain range. Thompson stated the State’s standard is for the sales ratio to be between 90 percent and 105 percent. Case asked if there is a consequence for being outside of the range. Thompson stated the State DOR would step in and correct the assessment, which is dictated by statute. Most assessors in Hennepin County aim for 95 or 96 percent sales ratio. Narayanan asked if they can look at later sales cost in comparison to the assessed value to see if it was at the 95 or 96 percent sales ratio. Thompson stated it is not individual properties but an average across many sales. Narayanan asked if the assessments are usually under the sale value. Thompson stated the sales have to be adjusted to the sale date, and half will be over and half will be under the assessment because they use a median number. He noted market values are subjective. Thompson stated a statistical median ratio is used by the DOR and Minnesota Tax Court as evidence the assessor has met an acceptable level of assessment. Additional statistical measures are used in ensuring a quality assessment. Sales must be adjusted to the assessment date as mandated by the DOR. Thompson noted a linear regression analysis of sale ratios in the 21-month study is used to calculate market condition trends. The annual residential trend for Eden Prairie is 12.8 percent. For single family homes, the trend is 14.3 percent annually, a townhome is 12.3 percent annually, and a condo is 9.9 percent annually. CITY COUNCIL MINUTES March 15, 2022 Page 4 Thompson showed a slide with a graph depicting market trends in comparison to assessment growth. Overall assessment growth is the adjustment required to reach desired target for all properties. Following analysis of sales, properties must be adjusted consistently to ensure equality. Thompson showed a slide with five years of residential sale counts. Eden Prairie residential sale volume increased 28 percent over previous study. Not all sales are qualified for the sales ratio study. A significant amount of residential sales were used to set accurate values. Using 343 sales since September 30, 2021, the current median value for 2022 is 99.3 percent. Thompson stated Eden Prairie’s overall assessment growth went from $11.8 billion to approximately $13.45 billion, which is an increase of 14 percent. In Eden Prairie, there was a 19 percent increase in single family home values. Narayanan asked how much of the $13.45 billion value is from new construction. Thompson stated the total amount for new construction is around $128 million, which includes brand new buildings and additions. Thompson noted Hennepin suburbs had an increase of 18 percent for single family homes. Minneapolis had the lowest in the area at 10 percent, which is still high. Thompson stated the Homestead Market Value Exclusion (HMVE) was introduced in 2011 to replace the Homestead Credit. This deduction to the Estimated Market Value (EMV) results in a property’s Taxable Market Value (TMV). Homesteaded properties are eligible for the HMVE. The exclusion amount is based on the total EMV, with the maximum exclusion go #30,400 at an EMV of $76,000. Thompson stated the 2022 tax impact on an EMV property $302,700 receives about $10,000 HMVE, which would effectively reduce annual tax bill by $120, using the 2021 tax rate as an estimate. Nelson stated people have been self-reporting online 15 to 25 percent. She asked if the report was faulty math or true. Thompson stated every property will go up a little bit differently. The increase is to get the property to the 95 percent median. Half will be above and half will be below the median. The growth, year over year, is what is required to get the study to 95 percent. Some neighborhoods had a higher increase at around 30 percent, but some neighborhoods may have gone up 8 percent. Toomey asked who sets the HMVE. Thompson stated it is set by the State legislature. Toomey pointed out Eden Prairie does not set the number. CITY COUNCIL MINUTES March 15, 2022 Page 5 Thompson stated there is a Local Board of Appeals and Equalization. Residents may complete an appeal, which is outlined on the valuation notice. It starts with a call to the Assessor’s Office, and the appeal will be reviewed by a Staff appraiser. Most appraisers on Staff have previously worked in the private sector, and a majority of appeals reach an agreement or understanding at that level. Thompson stated an appeal can appear before an appointed Board of experts. He noted the Board is primarily real estate brokers from Eden Prairie. The first meeting is on April 6, 2022, and it will be reconvened on April 21, 2022. Applications are requested by March 25, 2022. Reviews are held at the City Center at 7:00 p.m. in Council Chambers. Freiberg asked how long it would take the Assessor’s Office to return calls of residents. Thompson stated they try to return calls within one day, but there is an extremely high volume of calls currently. He stated they are looking at two or three days currently. If homeowners turn in the application, they will not lose their ability to appeal the assessment. Freiberg stated people need to feel they are treated correctly. The sooner the calls are retired, the better it will be. He noted the formulas are very complicated to explain to people, and it is difficult to understand. He thanked Thompson for his work. Thompson confirmed it is a complex property tax situation, but Staff is working hard to process requests to reach a resolution. Nelson stated she has received questions about the tax increase proportion in comparison to the increase of a home value. Thompson stated just because a home value increases, there may not be an increase in taxes of the same proportion. It is difficult to say what the tax increases will be as the budget is set in the fall. All residential properties went up in value, so it will likely result in an effective tax rate. It is too early to predict the impact of the tax. Case stated the assessment is what drives the tax which will be derived from it. A tax rate is the amount per $1,000 the City will get from all properties across the City. If the City had a zero percent increase in the budget and levy, the taxes wouldn’t increase. If they raise the same amount of money from taxes and they spread it across a multi-billion dollar tax base, it will keep taxes the same or decrease them. Case noted Eden Prairie is a healthy City and is trying to keep the tax low, but the residents are still seeing an increase in home value by being in such a healthy City. The desire for people to be in Eden Prairie is increasing the home values in the City. Thompson added if an assessed value increases, the Council doesn’t see any money for an increase. CITY COUNCIL MINUTES March 15, 2022 Page 6 Thompson stated all properties on the Board’s agenda may appear before the County Board of Appeal and Equalization, which starts June 13, 2022. Appointment is recommended by May 18, 2022. A similar process is organized by Hennepin County, and the meeting is held downtown. The final appeal option is tax court. The filing deadline for tax court is May 1 of the payable year. Narayanan thanked Thompson for the explanation. He stated the Council has been receiving emails from community members, and it is important for them to have all of the information to respond. He pointed out the City only gets one third of a percent of the property tax increase. Case thanked Thompson and the Staff for their work. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS MOTION: Nelson moved, seconded by Narayanan, to approve the agenda as published/amended. Motion carried 5-0. VI. MINUTES E. COUNCIL WORKSHOP HELD TUESDAY, MARCH 1 , 2022 F. CITY COUNCIL MEETING HELD TUESDAY, MARCH 1, 2022 MOTION: Narayanan moved, seconded by Toomey, to approve the minutes of the Council workshop held Tuesday, March 1, 2022, and the City Council meeting held Tuesday, March 1, 2022, as published. Motion carried 5-0. VII. REPORTS OF ADVISORY BOARDS AND COMMISSIONS VIII. CONSENT CALENDAR A. CLERK’S LICENSE LIST B. JOHNSON RIDGE by Laketown Builders. Second Reading of Ordinance for Planned Unit Development District Review with waivers and Zoning Change from R1-22 to R1-9.5 on 2.1 acres (Ordinance No. 7-2022-PUD-4-2022 for PUD District Review with waivers and Zoning Change, Development Agreement) C. ADOPT RESOLUTION NO. 2022-48 APPROVING FINAL PLAT OF ELLIE ADDITION CITY COUNCIL MINUTES March 15, 2022 Page 7 D. ADOPT RESOLUTION NO. 2022-49 APPROVING FINAL PLAT OF JOHNSON RIDGE E. DECLARE OBSOLETE EQUIPMENT AS SURPLUS F. APPROVE PURCHASE OF REPLACEMENT RAD 57 MONITORING DEVICES FROM MASIMO SYSTEMS G. APPROVE PURCHASE OF SIX NEW LAPTOPS AND DOCKS FROM HP INC FOR FIRE DEPARTMENT CHIEFS ’VEHICLES H. ADOPT RESOLUTION NO. 2022-50 ESTABLISHING PRECINCT BOUNDARIES AND POLLING PLACES I. APPROVE AGREEMENT WITH REPUBLIC SERVICES FOR DROP OFF DAY EVENT MATERIAL DISPOSAL J. APPROVE CONTRACT FOR 2022 CRACK SEALING TO ASPHALT SURFACE TECHNOLOGIES CORPORATION K. APPROVE AGREEMENT WITH BLUE WATER SCIENCE FOR 2022 WATER QUALITY MONITORING PROGRAM L. AWARD CONTRACT FOR CSAH 61 LANDSCAPING TO CEDAR RIDGE LANDSCAPING, INC. M. APPROVE CHANGE ORDER FOR REGIONAL CENTER ROAD WATER MAIN LINING PROJECT N. APPROVE AGREEMENT FOR PURCHASING GOODS AND SERVICES WITH RESPYRO FOR HOMETOWN CELEBRATION FIREWORKS O. ADOPT RESOLUTION NO. 2022-51 AUTHORIZING PREPARATION OF FEASIBILITY REPORT FOR DELL ROAD IMPROVEMENTS P. ACCEPT QUOTES AND AWARD CONTRACTS FOR EAB INFESTED TREE REMOVALS MOTION: Toomey moved, seconded by Narayanan, to approve Items A-P on the Consent Calendar. Motion carried 5-0. IX. PUBLIC HEARINGS / MEETINGS CITY COUNCIL MINUTES March 15, 2022 Page 8 A. SCHULMAN ADDITION by Tammy Schulman. First and Second Reading of Ordinance for Zoning Change from Rural to R1-13.5 on 2.47 acres, Resolution for Preliminary Plat of 2 lots on 2.47 acres (Ordinance No. 8-2022-PUD-5-2022 for Zoning Change, Ordinance Summary, Resolution No. 2022-52 for Preliminary Plat) Getschow stated the applicant is proposing the creation of two single-family lots. The applicant owns two properties on Riverview Road totaling 2.477 acres. These properties consist of 12076 Riverview Road and a 0.47 acre strip of land which previously was used as a road. The preliminary plat proposes to alter the property lines to divide the 2.477 acres more evenly to create two buildable lots. The existing single family home will be kept as part of this project. The new lot is proposed to be developed with a single family home at a future date. Tammy Schulman, applicant, showed a slide with a photo of the overview of the historic site. Currently, the house is on the far west side which was done to make room for power lines in the 1950s. She noted there is an easement in the middle of the current lot. Ms. Schulman stated the property is currently zoned as rural. The driveway is currently on a neighboring property, and they are working it out. They are requesting to rezone from rural to R1-13.5. They wanted to subdivide the lot into two single-family lots. They would also need to relocate the driveway for the existing home to fall within the property line. Case stated when there is a housing development, they will place the houses with similar setbacks along a road. However, it may not make sense to use the same setback for the new property as the existing property. Klima stated they would use the setbacks detailed in R1-13.5 and would be further determined at the time of its build. There were no comments from the audience. MOTION: Toomey moved, seconded by Freiberg, to close the Public Hearing, approve the 1st and 2nd Reading of the Ordinance No. 8-2022-PUD-5-2022 for a Zoning District Change from Rural to R1-13.5 on 2.477 acres, and adopt a Resolution No. 2022-52 for a Preliminary Plat to divide 2 lots into 2 lots on 2.477 acres. Motion carried 5-0. B. CHICK-FIL-A by Chick-Fil-A. Resolution for Planned Unit Development Concept Review on 1.27 acres, First Reading of Ordinance for Planned Unit Development District Review with waivers on 1.27 acres (Resolution No. 2022-53 for PUD Concept Review, Ordinance for PUD District Review with waivers) CITY COUNCIL MINUTES March 15, 2022 Page 9 Getschow stated Chick-Fil-A is part of Flying Cloud Commons retail, the third phase of the Castle Ridge Redevelopment project. Flying Cloud Commons was approved by City Council on February 2, 2021. As the project nears closer to construction, Chick-Fil-A is seeking to make alterations to their site and requests additional Planned Unit Development (PUD) waivers. The overall layout and building architecture remain the same from the previously reviewed and approved plans. Joe Vavrina, Senior Project Manager with HR Green, stated Chick-Fil-A is family-owned and privately-held. They are closed on Sundays, which is a tradition honoring the founder. There are 2,600 locations. The franchisee operator will be a local resident. The purpose is for improved engagement in the community and success of the restaurant. He added since 1970, Chick-Fil-A has awarded more than $110 million in scholarships. Mr. Vavrina showed the site plan overview. He stated the plan changes are due to the pandemic. Chick-Fil-A has been looking for ways to move people more effectively through the drive-thru lane, and the requested changes are to do just that. The proposal is to continue the two lanes throughout the entirety of the drive-thru and to add a canopy in the pick-up space. There is flexibility in use of the outer lane based on the need of the operator and guests. Mr. Vavrina stated the request includes a setback reduction for the canopy, a waiver in island size for the entrance area, and waiver for the size of order boards, which is slightly over Code. There is still a good amount of landscaping to protect light and sound from the surrounding area. The building itself remains the same materials, and the canopy would tie into the proposed exterior materials. Freiberg asked if the second lane would be similar to then Chanhassen location. Mr. Vavrina stated St. Louis Park doesn’t have two lanes the entire time. Chanhassen goes from two lanes to one lane to two lanes, similar to the original Eden Prairie proposal. The sites will receive upgrades, but it hasn’t happened yet. Toomey asked why the canopy isn’t attached to the building. Mr. Vavrina stated it is more cost-effective to keep the canopy free-standing. Nelson stated the presentation didn’t show any trees or flowers, but the proposal includes trees and flowers. Freiberg stated there will be a combination of trees, shrubs, flowers, grasses, and more. He explained the landscape plan gives a better idea of the landscaping than the exterior materials slides he showed. CITY COUNCIL MINUTES March 15, 2022 Page 10 Narayanan noted the two lanes under the canopy looks like a bank. He asked how the second lane gets food. Mr. Vavrina stated team members will walk from the window to hand the orders to the second set of cars. Narayanan asked if two lanes would be a safety concern. Mr. Vavrina stated there is a lot of signage and cars are moving very slowly to receive their food. He noted Chick-Fil-A has not had any issues with the model, and customer service times have increased. Narayanan asked if Chick-Fil-A offers free Wi-Fi. Mr. Vavrina confirmed there is free WIFI in the restaurant. There were no comments from the audience. MOTION: Narayanan moved, seconded by Freiberg, to close the Public Hearing, adopt a Resolution No. 2022-53 for Planned Unit Development Concept Review on 1.27 acres, approve the first reading of the Ordinance for Planned Unit Development District Review with waivers on 1.27 acres, and direct Staff to prepare a Development Agreement incorporating Staff and Commission recommendations and Council conditions. Motion carried 5-0. C. CUMMINS-PHIPPS GRILL HOUSE COA by City of Eden Prairie. Certificate of Appropriateness for roof replacement. Getschow stated the City was able to get a grant to replace the roof on the Cummins-Phipps-Grill House. The property is on the National Register of Historic Places, and the City owns and maintains the property. The City is requesting approval of a Certificate of Appropriateness (COA) to replace the roof on the home, shed, and outhouse. Heritage Preservation Commission (HPC) reviewed the COA request and recommended the City Council approve the COA. Case asked if the house being on the National Register of Historic Places drives the need for the public hearing. Getschow stated it may be required even if it wasn’t on the National Register. Case added the National Register of Historic Places is very picky, and Eden Prairie has two properties on the Register. Cummins was a renowned horticulturalist. The second site is Camp Edenwood, which is one of only two tuberculosis children’s camps still in existence from the 1920s. Toomey noted her concern about a wood shingle roof due to a fire hazard, but she learned they will be treated with some sort of fire retardant. There were no comments from the audience. CITY COUNCIL MINUTES March 15, 2022 Page 11 MOTION: Freiberg moved, seconded by Nelson, to close the Public Hearing and adopt the Findings of Fact and Approve Certificate of Appropriateness 2022-01-004 for the replacement of the roofs at the Cummins House site. Motion carried 5-0. D. REDEVELOPMENT PLAN MODIFICATION, ESTABLISHMENT OF TIF DISTRICT, AND TIF PLAN FOR BLUE STEM NORTH Getschow stated the Council preliminarily approved the project. Greco Properties is requesting Tax Increment Financing (TIF) for Blue Stem North located at 6901 Flying Cloud Drive in the Golden Triangle. The TIF would be used to pay for the affordable units. Case stated TIF is Tax Increment Financing which is a State legislative tool which allows a party to take future tax revenue to pay for current projects they may not be able to afford otherwise. Taxpayers are not impacted by the type of financing. Ultimately, the projects are meant to increase a tax base for the community. There were no comments from the audience. MOTION: Toomey moved, seconded by Narayanan, to close the public hearing, direct staff to include the Redevelopment Plan Modification for Redevelopment Project Area No. 5, establishment of TIF District No. 26, and adoption of a TIF plan on a future City Council meeting agenda, and recommend that Staff include the TIF Plan and the TIF Development Agreement on a future HRA meeting agenda. Motion carried 5-0. E. VACATION OF RIGHT-OF-WAY AND EASEMENTS FOR ELLIE (Resolution No. 2022-54) Getschow stated the developer of the Ellie Addition has requested the vacation of right-of way of Lincoln Lane as dedicated on the plat of Lincolnwood Addition. They have also requested a vacation of the 13-foot wide drainage and utility easement. There has been an Objection from CenterPoint Energy and Comcast regarding existing facilities in the Lincoln Lane right-of-way. Case asked if there would be a new right-of-way. Ellis explained the parties are negotiating who will pay for the relocation of the utilities. Once they receive the confirmation of no objection, they can move forward. There were no comments from the audience. MOTION: Nelson moved, seconded by Narayanan, to close the public hearing, and adopt the Resolution No. 2022-54 vacating Right-of-Way and CITY COUNCIL MINUTES March 15, 2022 Page 12 Easements. Motion carried 5-0. X. PAYMENT OF CLAIMS MOTION: Narayanan moved, seconded by Toomey, to approve the payment of claims as submitted. Motion was approved on a roll call vote, with Freiberg, Narayanan, Nelson, Toomey and Case voting “aye.” XI. ORDINANCES AND RESOLUTIONS A. FIRST READING OF ORDINANCE AMENDING CITY CODE SECTION 5.76 RELATING TO MOBILE FOOD VENDORS AND 9.05 RELATING TO FIRE CODE PERMITS Getschow stated this ordinance amends City Code Section 5.76 relating to mobile food vendors to require certain mobile food units, such as food trucks, to obtain an operational permit from the Fire Code Official. Getschow added the ordinance also removes the 21-day annual limitation on mobile food vendor operation and expands the list of zoning districts within which mobile food vendors may operate. The ordinance also makes a housekeeping-type revision to City Code Section 9.05 to clarify the types of permits which the Fire Code Official may issue. Getschow explained Staff have been looking to ease requirements for food trucks in the City. After discussion with the Chamber of Commerce and City Council, they decided to allow food trucks to be in most commercial zoning areas. There are a few neighborhood-commercial areas which are excluded as they have been identified as inappropriate. Freiberg noted the baseball stadium is City property, and they have had problems with food. He asked if the new Ordinance would allow for the stadium to host food trucks with the appropriate permits. Getschow stated they have in the past and would continue to allow the trucks to be in City parks. Nelson asked if the health codes are handled by the County. Getschow stated food trucks need to get permits from the Department of Health and to display those permits. The Ordinance just allows the Fire Department to do an inspection for other health and safety items. Case asked if a food truck wanted to park permanently somewhere with permission at the mall, would the Ordinance permit such a thing since they would be lifting the 21-day portion. Klima stated a food truck could park on a more permanent basis because they are removing the 21-day portion of the Ordinance. Case added when a Council works to expand an idea such as a food truck based on recommendations by residents and businesses, it is an CITY COUNCIL MINUTES March 15, 2022 Page 13 iterative process. MOTION: Toomey moved, seconded by Freiberg, to approve first reading of an ordinance amending City Code Chapter 5, Section 5.76 relating to Mobile Food Vendors and Chapter 9, Section 9.05 relating to Fire Code permits. Motion carried 5-0. B. FIRST READING OF ORDINANCE AMENDING CITY CODE CHAPTER 13 TO ESTABLISH AFFORDABLE HOUSING TRUST FUND (AHTF) Getschow stated the proposed ordinance will establish an Affordable Housing Trust Fund thanked to the work of the Housing Task Force. The Fund would support the production and preservation of affordable housing, create new housing opportunities for new or current residents and qualify the City for potential federal or state matching funds. Getschow noted the City does have tools to support affordable housing such as TIF, but there are more moneys available to cities which have trust funds. They won’t make an initial deposit, but they will be able to receive additional matching funds in the future with the creation of such a Trust Fund. He added many neighboring communities are setting up similar ordinances. Narayanan asked if a resident wanted to donate to the Trust Fund, would the funds be tax deductible. Getschow stated it depends on what a tax consultant would say as he has heard both ways. Narayanan stated not every donation to the City is tax-deductible. It would work to donate the money to a local foundation with the direction for the foundation to donate the money to the City for a specific purpose. MOTION: Narayanan moved, seconded by Freiberg, to approve first reading of an ordinance amending City Code Chapter 13 by adding a new Section 13.04 establishing an Affordable Housing Trust Fund. Motion carried 5-0. XII. PETITIONS, REQUESTS, AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS 1. City Manager Performance Review Case stated the City Council has the responsibility for one employee, CITY COUNCIL MINUTES March 15, 2022 Page 14 which is the City Manager. The City Manager hires and oversees the rest of the employees and departments. Therefore, it is the role of the Council to review the performance of the City Manager in a confidential session, which was held March 1, 2022. Case read a statement from the closed session meeting. In the meeting, Getschow explained the highlights of the City’s efforts and initiatives for 2021. The Council overwhelmingly praised Getschow’s skills and leaderships. Case stated the Council determined an increase in his salary to the State’s cap and additional paid time off (PTO). There would be a total compensation packages of $218,000. The Council directed Staff to determine the salary and PTO amounts based on the allocation. MOTION: Toomey moved, seconded by Narayanan, to increase the City Manager’s salary to $198,286.40 and provide an additional 210 hours of paid time off to be placed in a dedicated account. Case stated he has been around several city managers, and Eden Prairie has the best City Manager in the State of Minnesota. He explained Getschow leads a group of people who enjoy working in Eden Prairie. Case noted Eden Prairie has been voted the best place to work. Case noted city managers outside of Minnesota, where there is no cap, can make $350,000 to $400,000 each year. There could be a drain of amazing managers to neighboring states if the cap in Minnesota is not adjusted. Narayanan confirmed they receive a lot of praise about Getschow, especially when they attend meetings or conferences with other cities. He added if the salary were in the private sector, the person would be responsible for a $5 million budget and be at a director level. Getschow handles a $50 million budget and has navigated COVID-19 and other complexities. Nelson thanked Getschow for running such a phenomenal City and keeping the Council happy. It is a skill, and very few cities have such luck with a city manager. Freiberg thanked Getschow for being a good leader, communicator, and anchor. Eden Prairie’s City Manager is the best in Minnesota. Freiberg added Getschow is always available for the Council’s questions. Toomey thanked Getschow for all of his hard work and answering all CITY COUNCIL MINUTES March 15, 2022 Page 15 of her questions. Case pointed out the City Manager has a unique role because the person receives direction from the Council and goes out to implement the direction. The Council doesn’t always have background in managing departments such as Police or Fire, and the City Manager must also be able to manage all departments and push back on the Council when needed. VOTE ON THE MOTION: Motion carried 5-0. B. REPORT OF CITY MANAGER C. REPORT OF COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVI. ADJOURNMENT MOTION: Narayanan moved, seconded by Nelson, to adjourn the meeting. Motion carried 5-0. Mayor Case adjourned the meeting at 8:47 p.m. Respectfully submitted, _________________________ Nicole Tingley, City Clerk