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HomeMy WebLinkAboutCity Council - 10/20/2015 APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, OCTOBER 20, 2015 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Ron Case, and Kathy Nelson CITY STAFF: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, City Attorney Ric Rosow, and Council Recorder Jan Curielli I. CALL THE MEETING TO ORDER Mayor Tyra-Lukens called the meeting to order at 7:00 PM. Council Member Nelson was absent. II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION IV. PROCLAMATIONS/PRESENTATIONS A. LEGACY AWARD FROM CONSERVATION MINNESOTA John Anderson, West Metro Community Coordinator for Conservation Minnesota, said the Legacy Destination Award is given to recognize cities around the state for conservation and the arts. The award is being given to Eden Prairie for work done in the area of water conservation. He noted the work done by the City included coordination with the Riley-Purgatory-Bluff Creek Watershed District on a restoration plan for Staring Lake and reviewed some of the grants Eden Prairie has received in the area of the arts and conservation. He presented the Legacy Award to Mayor Tyra-Lukens. Tyra-Lukens thanked Mr. Anderson and noted this is just one of the awards we have received in the area of conservation and natural resources and is an example of our commitment to wise use of our resources. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Tyra-Lukens added Item XIV.A.1. CITY COUNCIL MINUTES October 20, 2015 Page 2 MOTION: Aho moved, seconded by Butcher Wickstrom, to approve the agenda as amended. Motion carried 4-0. VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY, OCTOBER 6, 2015 MOTION: Case moved, seconded by Butcher Wickstrom, to approve the minutes of the Council workshop held Tuesday, October 6, 2015, as published. Motion carried 4-0. B. CITY COUNCIL MEETING HELD TUESDAY, OCTOBER 6, 2015 MOTION: Butcher Wickstrom moved, seconded by Case, to approve the minutes of the City Council meeting held Tuesday, October 6, 2015, as published. Motion carried 4-0. VIL REPORTS OF ADVISORY BOARDS & COMMISSIONS VIIL CONSENT CALENDAR A. CLERK'S LICENSE LIST B. APPROVE PURCHASE OF NEXT GENERATION MOBILE AND PORTABLE RADIOS FROM MOTOROLA SOLUTIONS INC. C. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH HTPO FOR ROUND LAKE PARK PHASE II DESIGN SERVICES D. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH WSB & ASSOCIATES FOR THE MINNESOTA RIVER VISTA PROJECT E. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH WSB & ASSOCIATES FOR STARING LAKE PLAYGROUND IMPROVEMENTS F. APPROVE AMENDMENT NO. 1 TO MNDOT CONTRACT 01730W04 FOR PAINTING FASCIA BEAMS ON MNDOT BRIDGES OVER TH 212 MOTION: Aho moved, seconded by Case, to approve Items A-F on the Consent Calendar. Motion carried 4-0. IX. PUBLIC HEARINGS/MEETINGS A. MILLER REZONING by David and Karen Miller. Request for Zoning District change from Rural to R1-13.5 on 1.32 acres; first and second reading of the ordinance for Zoning District change from Rural to R1-13.5 on 1.32 acres. Location: 7555 192nd Ave W. (Ordinance for Zoning District Change) CITY COUNCIL MINUTES October 20, 2015 Page 3 Getschow said the subject property is located at 7555 192nd Street and is 1.32 acres in size. The minimum lot size required in the Rural zoning district is 10 acres. Therefore, the property is non-conforming in terms of lot size. The property is an unplatted legal lot of record. There is an existing single family home on the property, built in 1950. The applicant is proposing to tear down the existing home and re-build a new home further to the east. The applicant is seeking a rezoning to remedy the non-conforming status of the parcel. The proposed house location complies with the setback requirements of the R1-13.5 zoning district. The Comprehensive Guide Plan designates the property as low density residential, and the rezoning request is in conformance with the Guide Plan. The property owner is not subdividing the property at this time. However, the property owner has indicated their intent to locate the new home on the property so as not to preclude future opportunity for subdivision of the property. To illustrate possible future subdivision, the applicant has submitted a drawing showing approximately where a new property line and house may be located. Any future subdivision would require review and approval by the City. The Planning Commission voted 5-0 to recommend approval of the project at the September 28, 2015 meeting. There were no comments from the audience. MOTION: Butcher Wickstrom moved, seconded by Aho, to close the public hearing and to approve first and second reading of the ordinance for zoning district change from Rural to R1-13.5 on 1.32 acres. Getschow said the Council can approve only first reading of the ordinance tonight because all of the Council Members must be in attendance to pass both first and second readings. MOTION: Butcher Wickstrom moved, seconded by Aho, to amend the motion to withdraw second reading of the ordinance. Motion carried 4-0. VOTE ON THE MOTION AS AMENDED: Motion carried 4-0. B. RESOLUTION NO. 100-2015 APPROVING 2015 SPECIAL ASSESSMENTS Getschow said there are three major projects included in the 2015 Special Assessments. The first major project includes the Eden Prairie Road improvements; the second project includes Shady Oak Road Phase I improvements; and the third is the Shady Oak Road Phase 11 improvements. He said the Eden Prairie Road improvements were ordered two years ago and include a large number of assessments. Rod Rue, City Engineer, gave a PowerPoint presentation reviewing the Eden Prairie Road assessments. He said the original feasibility report for the two phase construction of the road was completed in December 20, 2012, and staff was asked to look at different philosophies on assessments. The amended feasibility report was approved in August 2013. In October of 2013 a contract was awarded and the first phase of construction was completed late this summer. The feasibility report for the CITY COUNCIL MINUTES October 20, 2015 Page 4 second phase, which includes the final section of the road that goes down to Flying Cloud Drive, will be presented sometime in 2016 with construction sometime in 2017. He noted the construction costs for the first phase came in dramatically lower than the estimated cost of$4 million. Rue reviewed a graphic showing the Phase I area divided into four sections, each of which will be assessed differently. The green area will be assessed just for the over- sizing of Eden Prairie Road and the creek crossing costs; the blue area properties are assessed the same costs as those in the green area plus sewer and water costs; and the yellow area properties have an additional assessment for the storm sewer as well as those included in the blue area assessments. The tan section includes properties with frontage on Eden Prairie Road that will be assessed for all of the costs plus one-half of the street construction of Eden Prairie Road. He said the MAC parcels have a final assessment of just under $599,000, which will be deferred until they sell the property. Tyra-Lukens noted Items 2 and 3 for Phases I and 11 of the Shady Oak Road improvements affect only United Healthcare Services and will be considered separately after discussion of Item 1. Chris Bunn, 9850 Eden Prairie Road, asked about the process he can use to appeal the assessment. Rosow replied in order to appeal he would need to file a written objection tonight and within 30 days after tonight's meeting he would have to appeal to the Hennepin County District Court by serving a notice on the Mayor or the City Clerk of Eden Prairie and then filing the notice with the District Court within ten days after serving the notice to the Mayor or City Clerk. He said the notice should state his intent to appeal the assessment and include his property address and his signature. Mr. Bunn asked what role his appeal has tonight. Rosow replied tonight's hearing is the first step and gives an opportunity to tell the City Council why you think the assessment should not be approved in the amount that has been proposed. The City Council has the discretion to change the amount of the assessment. Mr. Bunn said he was concerned that the frontage costs of Eden Prairie Road are being assessed to some of the properties but is not being assessed to all of those who will use the road. The residents who live along Eden Prairie Road are not receiving the majority of the benefit of the improvements to Eden Prairie Road because it is a through street between Flying Cloud Drive and Pioneer Trail. Eden Prairie Road has a lot of traffic that is not from the residents who live along the road. He believed the City has the responsibility to cover part of the costs for road improvements. He asked the Council to reconsider how the assessments are being assigned for the Eden Prairie Road residents. Ellis replied there was discussion in 2013 about how the road would look. At that time City staff s recommendation was to cul de sac the road, because only 7% of the traffic uses that section of the road as a cut through. The public and the City Council expressed a desire not to cul de sac the road, so the City offered to pay for the majority of the cost for the final section of road down to Flying Cloud Drive. He CITY COUNCIL MINUTES October 20, 2015 Page 5 noted this section of Eden Prairie Road is not a collector road, rather it is a neighborhood road. Case said Mr. Bunn made a couple of points about the benefit to his property because it lacks depth. Case noted there will not be a lot of homes that will be going off Eden Prairie Road. Ellis replied staff did look at the value of this particular parcel. The other properties that are away from Eden Prairie Road paid for the value of the road in front of their homes when they purchased the lot. This particular property has access off Eden Prairie Road for the second lot so it could be two lots. The parcel is on Eden Prairie Road and will pay for one-half of the roadway, water, sewer and storm water drainage. Case commented the second lot seems different and asked if the 5.2%interest will begin to accrue immediately but will not be owed until division and sale. Rue replied this is a homesteaded parcel with potential for more development and is assessed with one unit of assessment for the homesteaded parcel. The balance of the assessment on the property with the potential for development is deferred until time of development with the interest accrued until that time. Case said he was concerned about the potential value of the second parcel because development of that parcel really does not seem viable. The interest accrued on the lot could eventually outpace the value of the lot. He believed we have to be able to connect our assessments to a real benefit. Ellis noted our assessments are based purely on the benefit to the lots. Rosow said the Council could start the interest on the deferred assessment at a different time if it wished to do so. Mr. Bunn was concerned that the study showing only 7%through traffic was done at the wrong time as he was quite sure there is more than 7%through traffic. He said his second lot would not have access to Eden Prairie Road, rather it only has access to Beverly Drive. He said he has more pressure to sell and develop with the 5.2%interest rate, and he was not sure he can afford to stay in the area. Chris Kline, 9700 Eden Prairie Road, said he concurred with Mr. Bunn about the situation. He said he is being assessed for nine units and was concerned whether the access to those nine units would be from Eden Prairie Road or by a cul de sac. He did not want a four-way intersection constructed in his backyard. He has a problem with elevations on his property and does not know how he would subdivide it into nine units. He noted his parking was taken away, and he cannot get internet or cable service. He didn't understand why the road is 32 feet instead of 28 feet, and suggested the City consider paying for the four feet of extra road as well as the extra landscaping being put in. He believed everyone should bear the same costs. Rue said the 32 foot road is fairly consistent with collector roads as well as some of the main neighborhood roads. Eden Prairie Road is a main road through the neighborhood and does allow parking on one side. He said there will be a trail along Eden Prairie Road that continues to the proposed park on the MAC property and then on down to Flying Cloud Drive. This trail is part of a regional trail system. He said there is always a need to determine a feasible way to develop small parcels, and they look at a way to make another road connection through an area which has CITY COUNCIL MINUTES October 20, 2015 Page 6 roads that were designed with that in mind. There is an option to have either a north/south connection or an east-west connection through the Kline property. With that connection, the Kline parcel had the potential for nine and possibly ten or more lots. Case was concerned if we would logically approve nine lots in that area, based on what is in there already. Rosow commented communities have to deal with this all the time. Staff comes up with what they believe is a reasonable number of properties to be assessed. In later years the property may come in for development and the rules may have changed. If it comes in with fewer units, that might change the situation and a rebate could be offered to the property owner if he had already paid for more units. The Council has to determine if staff has properly analyzed this, but would also have the opportunity in the future to manipulate legally the number to conform to the future development if there are fewer number of units developed. Case said he could see that nine lots would make sense if we look at values in Eden Prairie. He felt the benefit would be justified because the property has a potential value. He thought the land value will hold up, and did not believe we would be driving someone off their property. Rosow said the statute allows the Council to require that the interest be paid yearly on a deferred assessment, or it can be added to the principal but not paid currently. The statute also provides that the interest accrued prior to December 31 of the year the first installment is paid is forgiven. He noted it would be wise to have the same method of interest accrual on all the deferred parcels. Tyra-Lukens asked what would happen in that case because we did not defer the assessments done in earlier years. Rosow replied the Council has the option every year to look at the circumstances. The way it was done in the past does not bind the Council in the future. He noted there have been some discussions this year with a property owner who is 15 years into an assessment and did not realize the interest was accruing. Aho had questions about the division of property and the units assigned to the property. He was more comfortable that it doesn't actualize until the property is developed. He asked what really happens in terms of the City's finances if we defer or forgive the interest because the City is bearing the costs when we improve the road. Ellis replied the costs will be there, so it would be a cost the City would have to absorb. Getschow noted that the assessment rolls show it is not a large number on several properties because development has already occurred in that area. Whenever the City does an assessment project, we don't know how many prepayments will occur without having accrued any interest. The City is financing the project over time, and that is why there is an extra 2% added to the interest rate. We have to make the debt payment over time. Aho said it is fair to defer or forgive the interest if you defer the development. Case said government has to be careful to be perceived as fair, so it would be important to abide by prior precedent. His concern is with the perception of Eden Prairie Road being a somewhat more major road than the average neighborhood CITY COUNCIL MINUTES October 20, 2015 Page 7 road because it could serve as an alternative to Spring Road. Homes that sit right on major roads are at a slight disadvantage if they develop or rebuild. He asked if the second lot on the Bunn property would have access to Beverly or Eden Prairie Road. Rue replied the Bunn property is a corner lot and has the option of putting a driveway off Beverly or off Eden Prairie Road. He noted staff believed the long term use of some of these properties is to be combined with others in the area. Case asked if the assessment of the Bunn's second lot would be viewed in another class if it were perceived not to be on Eden Prairie Road but rather to be combined with another property. Rue replied the nearby lots in Reeder Ridge were assessed for frontage on Eden Prairie Road even though they do not have direct access onto that road. Tyra-Lukens commented everyone in Eden Prairie is funding the interest on bonds when we choose to defer interest on the assessments. She said over half of the amount for properties in Item 1 is deferred, and that is a lot of interest that all the other taxpayers in Eden Prairie would have to come up with to pay the bonds. Mike Miller, 16870 Beverly Drive, asked how the City arrived at the interest rate of 5.2%, especially in comparison with the treasury rate of 1.3%, and if the rate would be changeable over the 20 years if rates stay down. He noted he has paid over 37% of his purchase price in property taxes over the time he has lived in Eden Prairie. Getschow said the percentage is based on the rates we were tracking at the time the project started plus 2%. The Council would be approving this rate for this assessment at this particular time. Aho asked where the 2%figure comes from. Getschow said that is added onto the rate we receive and would cover a number of prepayments of assessments that might otherwise leave a gap in the total amount received. This debt is combined with other projects because we do not issue debt for just one project at a time. MOTION: Case moved, seconded by Butcher Wickstrom, to close the public hearing. Motion carried 4-0. Case asked that Items 2 and 3 be covered under a separate motion from Item 1 so he could recuse himself on Items 2 and 3 but vote on Item 1. Aho was concerned whether we came to a decision on what we are going to do regarding forgiveness of interest and the options Mr. Rosow reviewed. The consensus was to vote on Items 2 and 3 before discussing forgiveness of interest for Item 1. MOTION: Aho moved, seconded by Butcher Wickstrom, to adopt the portion of Resolution No. 2015-100 approving the Special Assessments for I.C. 11-5799 and LC.11-5800 presented in the fall of 2015. Motion carried 3-0-1,with Case abstaining. MOTION: Case moved, seconded by Butcher Wickstrom, to adopt the portion of Resolution No. 2015-100 approving the Special Assessments for I.C. 01-5537 and CITY COUNCIL MINUTES October 20, 2015 Page 8 Supplementals. Case said he knows the property in Item 1 very well, and the viability is different throughout. There has to be a benefit, and he was concerned that the interest being accrued over time might exceed the value of the Bunn property. The interest could be deferred, but he was concerned about setting precedent. Aho said we do need to be consistent and fair to everyone. It is hard to look at it this year and come up with a new method of how we deal with interest on the properties. He noted if the property is never developed, it will not be assessed. Tyra-Lukens said approving assessments is always difficult, and it is not a perfect system. She did not think there was any perfect system because every lot is unique. Her inclination would be to go forward with this in order to be fair to all people in the community. There is an appeals process for individual property owners, and they could make a case to District Court. Case noted the City does not put money away for the roads and, typically, we ask people to pay to build the road in front of their house for the first time. For the second rebuild, we can do major assessments or we could pay for the improvements out of the General Fund, which would raise taxes three or four times what they are now. It is possible to come up with a franchise fee to prorate the rebuilding of roads, and that is what we now do here in Eden Prairie. He believed we are facing this situation now because Eden Prairie Road was not built to standards the first time. As the years go by we will have gone into a better system. We have made some big decisions going down the road on how we will rebuild our roads. VOTE ON THE MOTION: Motion carried 4-0. X. PAYMENT OF CLAIMS MOTION: Aho moved, seconded by Case, to approve the payment of claims as submitted. Motion was approved on a roll call vote,with Aho, Butcher Wickstrom, Case, and Tyra-Lukens voting "aye." XI. ORDINANCES AND RESOLUTIONS A. FIRST READING OF ORDINANCE AMENDING CITY CODE CHAPTER 5 AND SECTION 2.33 RELATING TO MASSAGE LICENSING Getschow said this ordinance updates the existing language in the Code relating to massage licensing, revising the procedures and updating the regulations to address concerns from the Police Department relating to enforcement. The Code currently provides for the licensing of massage therapists and massage enterprises. This ordinance updates accreditation requirements, clarifies and updates prohibited activities, provides additional requirements to qualify for licensing, and provides additional exemptions from the license requirement. In addition, the ordinance revises the procedures for issuance, renewal and suspension/revocation. The CITY COUNCIL MINUTES October 20, 2015 Page 9 ordinance provides that initial applications are reviewed by the Police Department and then approved or denied by the Council. The ordinance also sets up a procedure for appeals. The ordinance also amends City Code Section 2.33 to provide authority for background checks of applicants for massage licenses. He said the City Attorney drafted the revision. MOTION: Butcher Wickstrom moved, seconded by Aho, to approve the first reading of an ordinance amending City Code Chapter 5 and Section 2.33 relating to massage licensing. Motion carried 4-0. B. FIRST READING OF ORDINANCE AMENDING CITY CODE CHAPTER 8 RELATING TO PARKING AND CAMPING Getschow said existing City Code Section 8.04 prohibits parking of recreational vehicles for more than 24 hours within the City except at a designated campsite. Section 8.04 references a specific state statute that defines recreational vehicles. The state statute that contained this definition has been repealed. The City Attorney recommended amendment of the section. This ordinance removes the reference to the repealed definition and further revises the language to clarify the prohibition against camping, living or sleeping in any parked vehicle within the City except at designated campsites. This prohibition is similar to prohibitions in many neighboring cities. Aho asked if there are designated campsites in Eden Prairie. Lotthammer replied there are no permanent sites. Butcher Wickstrom asked if a boat is considered a recreational vehicle. Rosow replied the boat would have to be placed on a trailer so the ordinance would prohibit anyone from living in the boat on a street. MOTION: Aho moved, seconded by Case, to approve first reading of an ordinance amending City Code Chapter 8 relating to parking and camping. Motion carried 4-0. C. FIRST READING OF ORDINANCE AMENDING CITY CODE CHAPTER 4 MICRODISTILLERY COCKTAIL ROOM ON-SALE & MICRODISTILLERY OFF-SALE LICENSING Getschow said earlier this year the Council updated City code to match state law regarding tap rooms. After the code change was made we received an inquiry regarding opening a microdistillery. State law authorizes a microdistillery licensed by the state to provide a sample of distilled spirits manufactured on its premises in an amount not to exceed 15 milliliters per variety per person. No more than 45 milliliters may be sampled by any person on any day. A microdistillery may sell cocktails to the public if issued a license by the municipality in which it is located. Municipalities, including a city such as Eden Prairie with a municipal liquor store, are authorized by state law to issue the holder of a microdistillery licensed under state law a microdistillery cocktail room CITY COUNCIL MINUTES October 20, 2015 Page 10 license. A microdistillery cocktail room license authorizes on-sale of distilled liquor produced by the distiller for consumption on the premises of or adjacent to one distillery location owned by the distiller. The holder of a microdistillery cocktail room license may also hold a license to operate a restaurant at the distillery. A distiller may only have one cocktail room license. No single entity may hold both a cocktail room and taproom license, and a cocktail room and taproom may not be co-located. The state law also limits the amount of off-sal distilled spirits and addresses the hours for off-sales. Aho asked if we are just trying to be consistent with state law. Rosow said that was correct, but this would enable the City to issue licenses for a microdistillery. However, the City would not be in violation of state law if the Council decided not to issue the licenses. MOTION: Butcher Wickstrom moved, seconded by Case, to approve first reading of an ordinance amending City Code Chapter 4 relating to Microdistillery Cocktail Room on-sale and Microdistillery off-sale licensing. Motion carried 4- 0. D. FIRST READING OF ORDINANCE AMENDING CITY CODE CHAPTER 5 RELATING TO FOOD TRUCKS Getschow said the ordinance regulates food stands including nonmotorized food carts, mobile food units (food trucks) and seasonal stands. The purpose of the ordinance is to promote safety through regulation and to protect fair competition through limits on permitted operations. As many other cities have done, the ordinance prohibits food trucks from operating for more than 21 days annually in the City unless affiliated with a local licensed food related business. Getschow said the ordinance (1)requires that all food stands obtain appropriate state licensing; (2) limits the operation of food stands to the office, industrial and rural zoning districts, except it allows operation in residential zones in conjunction with a special event such as a graduation party; (3)limits the hours of operation to between 6 am and midnight, unless in conjunction with a special event in a residential zone where operation is limited to between 7 am and 10 pm; (4) allows operation on private property with the written permission of the owner; (5)prohibits operation on public streets; (6) allows operation within City park property only with the written permission of the Parks and Recreation Director; (7)regulates the size, storage and signage related to food stands; (8)regulates matters such as fire extinguishers, power supplies and propane gas for safety and compliance with applicable law; and (9) requires that all food stands maintain insurance. Getschow noted we will soon see our City food truck. We have also had other inquiries about this. The ordinance matches the requirements for state licensing. MOTION: Aho moved, seconded by Case, to approve first reading of an ordinance amending City Code Chapter 5 relating to food trucks. Motion carried CITY COUNCIL MINUTES October 20, 2015 Page 11 4-0. XII. PETITIONS, REQUESTS AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS 1. Bee Keeping and Pollinators--Mayor Tyra-Lukens Tyra-Lukens said she was concerned about an issue some residents brought to her attention. The City recently allowed beekeeping within the City of Eden Prairie, and we have had 8-10 people who have since asked to keep bees. Bees and other pollinators are losing numbers rapidly, and a lot of the decrease is thought to be due to the use of neonicotinoids in insecticides. Neonicotinoids are very dangerous to pollinators. The insecticide enters the entire plant structure and also goes into the soil. Communities all across the country are looking at this issue. She would like the City to look at our use of neonicotinoids and to buy plants that do not contain them. This is something that has risen to the forefront of concern with our environment and our food supply. She asked staff to go back and see what we can do about this situation and perhaps make a greater effort to educate residents. Case asked staff to bring back information from the League of Minnesota Cities about what other cities are doing. Getschow said staff will do that, and noted the Conservation Commission has had some discussion in this area as well. B. REPORT OF CITY MANAGER C. REPORT OF THE 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 XVL ADJOURNMENT CITY COUNCIL MINUTES October 20, 2015 Page 12 MOTION: Butcher Wickstrom moved, seconded by Case, to adjourn the meeting. Motion carried 4-0. Mayor Tyra-Lukens adjourned the meeting at 8:38 P.M.