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HomeMy WebLinkAboutCity Council - 12/03/2024Approved Minutes Eden Prairie City Council Meeting 7 p.m. Tuesday, Dec. 3, 2024 City Center Council Chambers 8080 Mitchell Road Eden Prairie, MN 55344 ATTENDEES City Council Members: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey City Staff: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Amy Markle, Police Chief Matt Sackett, Fire Chief Scott Gerber, and City Attorney Maggie Neuville MINUTES 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 Getschow explained the role of the HRA and its agenda item. On September 3, 2024, the HRA approved the proposed 2025 HRA property tax levy and budget. Also on September 3, 2024, the Eden Prairie City Council adopted resolutions consenting and approving the proposed 2025 HRA property tax levy and budget. Minnesota Law authorizes the HRA to levy a tax with the consent of the City Council. IV. Proclamations and Presentations A. Adopt Resolution accepting Parks and Recreation Fall 2024 donations Markle pointed out that the donations, totaling $16,930, allow the City to offer special events, programs, and educational activities at little or no cost to residents. Businesses increase their exposure and interaction with the community and increase the ability of our residents to enjoy our programs. All donations for Parks and Recreation special events will be used to enhance the events and lower overall costs. Narayanan asked how much money Eden Prairie receives for the total amount of donations annually. Markle estimated $50,000 to $60,000 in annual donations. MOTION: Narayanan moved, seconded by Nelson, to adopt Resolution No. 2024- CITY COUNCIL MEETING AGENDA December 03, 2024 Page 2 090 Accepting multiple fourth-quarter 2024 donations to Parks and Recreation. Motion carried 5-0. V. Approval of Agenda and Other Items of Business MOTION: Nelson moved, seconded by Narayanan, to approve the agenda as published. Motion carried 5-0. VI. Minutes A. City Council Workshop held Tuesday, November 12, 2024 B. City Council Meeting held Tuesday, November 12, 2024 MOTION: Toomey moved, seconded by Narayanan, to approve the minutes of the Council workshop held Tuesday, November 12, 2024, and the City Council meeting held Tuesday, November 12, 2024, as published. Motion carried 5-0. VII. Reports of Advisory Boards and Commissions VIII. Consent Calendar A. Clerk’s List B. Adopt Resolution No. 2024-091 accepting donations and in-kind contributions C. Approve contract for accounts payable payment processing with Corcentric D. Nexus Innovation Center by Endeavor Development approve Development Agreement and adopt Resolution No. 2024-092 rescinding Resolution No. 2024- 062 E. Three Oaks Estates by Nathan Haasken approve amendment to Development Agreement F. Approve amended fitness network location services (FNLS) agreement for Community Center silver and fit membership program with American Specialty Health Fitness, Inc. and adopt Resolution No. 2024-093 conditionally approving the amended FNLS G. Award bid for I.C. 25-6340 lime residuals hauling and disposal from 2025 through 2027 to Huls Brothers Trucking, Inc. H. Award contracts for 25-6253.1 water treatment chemicals for 2025 I. Approve change order no. 2 for Prairie Center Drive and Franlo Road intersection CITY COUNCIL MEETING AGENDA December 03, 2024 Page 3 improvements project J. Approve construction contract amendment for repair of Viking Drive traffic signal pole with Egan Company K. Approve construction contract to perform structural repair of sanitary sewer manhole with Minger Construction Co. L. Approve 2025 replacement vehicle and equipment purchase and declare vehicles scheduled for replacement as surplus M. Declare property as surplus and authorize disposal MOTION: Narayanan moved, seconded by Toomey, to approve Items A-M on the Consent Calendar. Motion carried 5-0. IX. Public Hearings and Meetings A. Adopt Resolution No. 2024-094 certifying 2025 property tax levy, adopting 2025 budget, and approving 2025 HRA tax levy Getschow explained on September 3, 2024, the Eden Prairie City Council adopted a resolution certifying the proposed 2025 City budget and property tax levy. Wilson pointed out the purpose of the meeting is to solicit public input on the City’s proposed tax levy and budget for next year. Calculations for the City showed the budget to be $62,778,864 and the certified levy to be $49,978,940 before fiscal disparities distribution. The net tax levy after fiscal disparities distribution of is $47,444,147. She provided more details on various budget items. Wilson noted the 2025 proposed budget maintains City services with a budget increase of 4.3% in the general fund and a total budget increase of 4.1% which includes the capital levy and debt service payments. The tax levy is budgeted to increase 5.8%. Getschow explained the budget process is ongoing, and Staff consistently survey the community regarding quality of life. He detailed the goals for the 2024-2025 budget and then provided information on median value property, property tax impacts, class rate schedules, and unique impacts on local taxes. Getschow showed comparably cities and their respective tax levies. John Miller, 18616 Twilight Trail, stated his tax increase was 17 percent even though his home was only slightly above the median. His son recently moved to Eden Prairie and experienced an 18 percent increase. Miller claimed Staff CITY COUNCIL MEETING AGENDA December 03, 2024 Page 4 presented faulty numbers, and the actual increases are unsustainable. The Council has an option to pursue an alternative path or else the community may incite violence and want to hang the Mayor. He recommended the Council decrease or maintain the tax levy in the future. He provided examples of cost- savings the City could pursue such as reducing services, decreasing the size of government, and re-engineering the tax process. Steve Wagner, 9325 Wilderness Cove, claimed the City’s taxes have increased 46.5 percent since 2019. His taxes increased by ten percent even though his property value only increased by three percent. The social security cost of living adjustment was merely 2.5 percent. The increases are unsustainable. Wagner made comments regarding hanging the Mayor. He suggested information on the tax calculations be presented to the community earlier on. Wagner added some City programs are overfunded. He suggested the Council lobby with State officials to create real change. Case stated violence is very real in their society, and the comments that he should be hanged are highly inappropriate. The Council serves the City and are fellow community members. Councilmembers have discussed the budget at 13 meetings in the past two years. MOTION: Nelson moved, seconded by Freiberg, to close the public hearing. Motion carried 5-0. MOTION: Toomey moved, seconded by Nelson, to adopt Resolution No. 2024- 094 certifying the 2025 Property Tax levy to be $49,978,940, approve the 2025 Budget of $62,778,864 as reviewed by the Council, and approve the HRA tax levy and budget of $220,000. Case reiterated the tax system in Minnesota is extremely complicated. Eden Prairie doesn’t have control over 75 percent of its resident’s taxes. Ultimately, the budget reflects the values of the community, and the Council is elected to implement said values. The City regularly surveys the community to gather feedback. Case stated the City’s finances are transparent and available for review by any parties. The calculations are correct. Minnesota implements a higher tax burden on homes about each city’s median value. 88 percent of the City’s budgetary increases are for wages and benefits for Staff. Case pointed out Eden Prairie has a great tax base and a majority of residents love living in the City. In comparison to similar cities, Eden Prairie has a low tax rate. At the end of the day, the Council can only set the City’s budget. Nelson added the largest portion of the budget is for the Police Department and CITY COUNCIL MEETING AGENDA December 03, 2024 Page 5 Fire Department; public safety is important for each family in Eden Prairie. The next largest portion is for Parks and Recreation, which is the most prized amenity among residents. Next is Public Works which provides utilities and street maintenance, and they consistently look for new and innovative ways to serve the City. She thanked the Staff for their consistent efforts to care for the Eden Prairie community in a cost-effective manner. Narayanan stated the budget process always starts with a community survey. He noted agreement with Case that some of the public comments were inappropriate. Any specific concerns with the budget can be discussed with Getschow. The survey showed a desire for increased public safety efforts. Parks and Recreation is one of the main reasons people move to Eden Prairie. Also, the Public Works services are superior to other areas. He thanked the Staff for their hard work and dedication to the community. Narayanan noted it is important to compare Eden Prairie to other cities to understand the quality of its services. He doesn’t want to live elsewhere because of the City’s services, amenities, and community. He stated he wouldn’t want the ambulances to be slower or for the snow to be removed less effectively. VOTE ON THE MOTION: Motion carried 5-0. B. Approve first and second readings of Ordinance No. 15-2024 updating 2025 fee schedule for administration of official controls and adopt Resolution No. 2024-095 approving summary Ordinance Getschow stated the proposed Ordinance establishes a fee schedule for the City’s costs in administering Official Controls pursuant to Minnesota Statutes Section 462.353, Subd. 4. There were no comments from the audience. MOTION: Narayanan moved, seconded by Freiberg, to close the public hearing and to approve first and second readings of Ordinance No. 15-2024 updating the fee schedule for administration of official controls and adopt Resolution No. 2024-095 approving the summary for publication. Case pointed out that the Council relies on Staff’s expertise to set the fee schedule. VOTE ON THE MOTION: Motion carried 5-0. C. Adopt Resolution No. 2024-096 approving 2025 fees for city services CITY COUNCIL MEETING AGENDA December 03, 2024 Page 6 Getschow noted the proposed Resolution updates the fee schedule for the City’s services not covered by ordinance. He provided examples of various fees. There were no comments from the audience. MOTION: Nelson moved, seconded by Narayanan, to close the public hearing and adopt the 2025 Fee Resolution. Motion carried 5-0. D. Adopt Resolution No. 2024-097 approving five-year bond Capital Improvement Plan and providing preliminary approvement for issuance of bonds thereunder, adopt Resolution No. 2024-098 approving 2025 to 2034 CIP Getschow explained the process for bonding and the Capital Improvement Plan (CIP). The City plans for capital maintenance and improvements by preparing a CIP. The CIP represents a framework for planning the preservation and expansion of capital including equipment, facilities, and infrastructure. It sets forth the estimated schedule, timing, and details of specific improvements by year, together with the estimated cost, the need for the improvement, and sources of revenue to pay for the improvement. It is a working plan and as circumstances warrant actual spending will differ throughout the period. All projects over $20,000 are brought back to the City Council at the time of execution for final review and approval. Wilson provided a funding summary for various offerings in Eden Prairie. She noted the City plans to remodel existing vacant space on the west side of the City building of approximately 73,000 square feet for the Police Station, which would include enclosed parking for police vehicles and 23,000 square feet for city office or meeting space. She also detailed significant engineering, fleet, Parks and Recreation, and Fire Department projects. Wilson then presented a graph with projected debt levies. Getschow pointed out City plans to issue capital improvement bonds to pay for the Police Department remodel. The debt was planned for once the Community Center debt ended. The statute covering the issuance of capital improvement bonds, Minnesota Statutes, Section 475.521, as amended, requires a public hearing on the bond capital improvement plan and the issuance of bonds thereunder. The maximum amount of bonds expected to be issued for the project is $26.5 million. The Council can issue any amount of bonds less than this amount. Nelson noted Eden Prairie having the highest bond rating is key to saving money. Wilson explained bond ratings and their history. Narayanan asked how much money the City receives from the State in a typical ten-year period. Wilson explained the residents only pay the $400,000 portion CITY COUNCIL MEETING AGENDA December 03, 2024 Page 7 of the tax levy. Getschow added they are profits from positive years and enterprise fund revenues. There were no comments from the audience. MOTION: Narayanan moved, seconded by Toomey, to close the public hearing, adopt Resolution No. 2024-097 approving Five-Year Bond Capital Improvement Plan and Providing Preliminary Approval for the Issuance of Bonds Thereunder, and adopt Resolution No. 2024-098 approving the 2025 to 2034 Capital Improvement Plan. Case explained the process for a referendum and options for community input. The Police Station is a necessity for the community and the renovation has been planned for a number of years. Toomey added the Police Station was built 30 years ago when there were 45 officers. Today, the Police Department has over 70 officers. The indoor parking will prolong the life of the vehicles and the sustainability improvements will also save the City money. VOTE ON THE MOTION: Motion carried 5-0. X. Payment of Claims MOTION: Nelson moved, seconded by Narayanan, 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 XII. Petitions, Requests, and Communications XIII. Appointments XIV. Reports A. Reports of Council Members B. Report of City Manager C. Report of Community Development Director D. Report of Parks and Recreation Director E. Report of Public Works Director CITY COUNCIL MEETING AGENDA December 03, 2024 Page 8 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 Freiberg, to adjourn the meeting. Motion carried 5-0. Mayor Case adjourned the meeting at 8:51 p.m. Respectfully submitted, ________________________ Sara Potter, Administrative Support Specialist