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City Council - 09/07/2021APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, SEPTEMBER 7, 2021 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, City Planner Julie Klima, Police Chief Matt Sackett, Fire Chief Scott Gerber, City Attorney Maggie Neuville, and Council Recorder Jan Curielli 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. 2021 GREEN STEP CITIES AWARDS Getschow announced the City is a multiple-year recipient of the Green Step Cities Award. In 2021 the City achieved Step 4 and 5 levels for the Green Step Cities program. The steps are awarded based on the sustainability best practices completed by the City each year, as well as for reporting and improving on sustainability metrics from the previous year. Diana McKeown, representing the Great Plans Institute, noted Eden Prairie has been a long term member of the Green Step Cities program. She presented Mayor Case with two blocks for the Steps 4 and 5 achievements in the program to be added to the Green Step Cities awards received in previous years. Narayanan asked how many cities received the Step 5 award and if this is a nationwide program. Ms. McKeown replied it is a Minnesota program and this year 25 cities received the Step 5 award. Case thanked staff for their hard work over the years to compile and document the work done to achieve the Green Step Cities awards. B. ACCEPT DONATION OF $1,000 FROM INTERNATIONAL SCHOOL OF CITY COUNCIL MINUTES September 7, 2021 Page 2 MINNESOTA FOR PEOPLEFEST (Resolution No. 2021-65) Lotthammer commented we are very fortunate to have had the International School as partners on several programs over the years. In this case the International School of Minnesota gave $1,000 towards the two-week People Fest that took place this summer. MOTION: Narayanan moved, seconded by Nelson, to adopt Resolution No. 2021-65 accepting the donation in the amount of $1,000 from the International School of Minnesota to go toward PeopleFest! A Community Celebration of Culture. Motion carried 5-0. C. ACCEPT DONATION OF $500 FROM XCEL ENERGY AND $500 FROM INTERNATIONAL SCHOOL OF MINNESOTA FOR ARTS IN THE PARK (Resolution No. 2021-66) Lotthammer explained this item is to accept two donations for the Arts in the Park event, including $500 from Xcel Energy and $500 from the International School of Minnesota. Case noted he was impressed by the organization of the Arts in the Park event which included food trucks and many artists’ exhibits and booths. MOTION: Nelson moved, seconded by Freiberg, to adopt Resolution No. 2021-66 accepting the contribution in the amount of $1,000 for Arts in the Park from Xcel Energy ($500) and International School of Minnesota ($500). Motion carried 5-0. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS MOTION: Narayanan moved, seconded by Freiberg, to approve the agenda as published. Motion carried 5-0. VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY, AUGUST 17 , 2021 B. CITY COUNCIL MEETING HELD TUESDAY, AUGUST 17, 2021 MOTION: Toomey moved, seconded by Narayanan, to approve the minutes of the Council workshop held Tuesday, August 17, 2021, and the City Council meeting held Tuesday, August 17, 2021, as published. Motion carried 5-0. VII. REPORTS OF ADVISORY BOARDS AND COMMISSIONS VIII. CONSENT CALENDAR CITY COUNCIL MINUTES September 7, 2021 Page 3 A. CLERK’S LICENSE LIST B. ASIAN PLAZA by Xing Zhao. Second reading of Ordinance No. 11-2021-PUD-6- 2021 for Planned Unit District with waivers on 4.68 Acres; Resolution No. 2021-67 for site plan review on 4.68 Acres (Ordinance No. 11-2021-PUD-6-2021 for PUD District Review, Resolution No. 2021-67 for Site Plan Review, Development Agreement) C. APPROVE SECOND READING OF ORDINANCE NO. 12-2021 ENACTING A NEW CITY CODE CHAPTER 13 RELATING TO INCLUSIONARY HOUSING AND ADOPT RESOLUTION NO. 2021-68 APPROVING SUMMARY ORDINANCE D. ADOPT RESOLUTION NO. 2021-69 APPROVING EXTENSION OF PRELIMINARY PLAT FOR EDEN HEIGHTS EAST E. ACCEPT AWARD OF $7,447,401 OF AMERICAN RESCUE PLAN GRANT AND APPROVE USE OF FUNDS FOR PROVISION OF GOVERNMENT SERVICES TO THE EXTENT OF REDUCTION IN REVENUE DUE TO COVID-19 PUBLIC HEALTH EMERGENCY F. APPROVE AGREEMENT WITH PRESCRIPTION LANDSCAPE INC. FOR SNOW AND ICE MANAGEMENT SERVICES G. AUTHORIZE GRANT AGREEMENT WITH HENNEPIN COUNTY FOR HEALTHY TREE CANOPY GRANT H. APPROVE AGREEMENT WITH HTPO FOR PIONEER TRAIL RECONSTRUCTION PROJECT I. APPROVE CHANGE ORDER NO. 1 WITH BITUMINOUS ROADWAYS, INC. FOR 2021 PAVEMENT MANAGEMENT PROJECT J. APPROVE AGREEMENT WITH HTPO FOR NORTH MANOR ROAD DRAINAGE IMPROVEMENTS PROJECT MOTION: Nelson moved, seconded by Narayanan, to approve Items A-J on the Consent Calendar. Motion carried 5-0. IX. PUBLIC HEARINGS / MEETINGS A. OLYMPIC HILLS GOLF CLUB CLUBHOUSE RENOVATIONS by Aulik Design Build. Resolution No. 2021-70 for Site Plan minor amendment review on 82.31 Acres (Resolution No. 2021-70 for Site Plan minor amendment review) CITY COUNCIL MINUTES September 7, 2021 Page 4 Getschow stated the applicant is proposing an exterior façade remodel of the current clubhouse building. Two (2) additions are also proposed; a small entrance vestibule on the west side of the building and an approximately 1,400 square foot storage space on the east side of the building. The proposed changes include modifying exterior building elevations to a more modern façade that exceeds City Code requirements. He explained this is considered a minor amendment so the item comes directly to the City Council. The Planning Commission did not consider this proposal. Charles Peterson, architect with Aülik Design Build, reported they have worked with City staff for a couple of years on several projects as well as the renovation of the building that will bring the façade up to City standards. He introduced Dan Luther, owner of Olympic Hills Golf Club, who explained they decided to do a master plan for renovation of the building. The club house needed a fresh look and they want to make Olympic Hills a venue of which members and neighbors can be proud. Mr. Peterson gave a PowerPoint with renderings of the existing building façade and the course remodels recently completed. He showed details of the proposed two- phase renovation project. He explained they have many events in the ballroom and have need of centralized storage which will be provided in the new addition. They will make improvements to the drainage around the club house. He described the improvements made for water usage on the course they have completed since 2013. He displayed the materials planned for the project and showed the new elevations for all sides of the building. There were no comments from the audience. MOTION: Narayanan moved, seconded by Nelson, to close the public hearing, and to adopt Resolution No. 2021-70 for a site plan review on 82.31 acres Nelson commented it looks very nice, and those who use the facility should be pleased. Case noted he was pleased they are reinvesting in Eden Prairie. VOTE ON THE MOTION: Motion carried 5-0. B. JOHNSON RIDGE by Laketown Builders. Resolution No. 2021-71 for Planned Unit Development concept review on 2.1 Acres; First reading of ordinance for Planned Unit District review with waivers on 2.1 Acres; Resolution No. 2021-72 for preliminary plat on 2.1 Acres (Resolution No. 2021-71 for PUD Concept Review, Ordinance for PUD District Review, Resolution No. 2021-72 for Preliminary Plat) Getschow stated the applicant is requesting approval to develop 9995 Bennett Place into six (6) single-family lots. The parcel is located on Bennett Place south of Pioneer CITY COUNCIL MINUTES September 7, 2021 Page 5 Trail. 9995 Bennett Place currently contains a single family home that will be demolished before construction begins. The property is surrounded by single-family development. With a density of approximately 2.86 units per acre, the project is consistent with the Low-Density Residential guiding. The Planning Commission voted 7-0 to recommend approval of the project at the August 9, 2021 meeting. Harold Worrell, representing Laketown Builders, gave a PowerPoint presentation about the project. He described the site as being heavily wooded with mature trees and buckthorn and has a mixed sandy soil. It is flanked on two sides by a City outlot, and the outlot to the north serves as a driveway for 9977 Bennett Place. The plans include three walkout and three lookout home sites. There will be retaining walls to accommodate the grade between the existing adjacent home and the proposed community street. The homes will include electronic vehicle-ready garages. Case was concerned about the other house site being close to the cul-de-sac. Mr. Worrell explained there are two driveways side by side. Case asked about how the existing driveways and how they fit into the new development. Ellis explained the driveway will be replaced by the street. Case then asked if the current driveway sits on its own easement or if it is part of this property. Ellis replied the property is sitting on the City outlot which will become the cul-de-sac. We anticipated the development of this property, so we planned for this future cul-de-sac. Case commented that would mean it is not just an easement. Toomey asked Mr. Worrell to explain how the landscape plan depicts which trees will remain. Mr. Worrell replied the ones outlined in green are staying, and the black ones will be removed. There were no comments from the audience. MOTION: Nelson moved, seconded by Freiberg, to close the public hearing. Motion carried 5-0. Freiberg commented he liked the rendering showing the homes; however, he was concerned about the loss of heritage trees on this site. He understood there are issues involved in saving some of the trees, but he was particularly concerned about a 36- inch tree at the end of the cul-de-sac that is going to be removed. He asked if there is any way to save it. Mr. Worrell replied they don’t see any way to save the tree. Narayanan asked if the square footage of the homes includes basements. Mr. Worrell replied some will be up to 5000 square feet with a basement. Narayanan noted he appreciated their including charging stations for the homes. Case asked if the homes would be prewired for electronic vehicles. Narayanan noted that would mean 220-volt wiring. Mr. Worrell replied the wiring is there, but the connections will not be made. MOTION: Toomey moved, seconded by Narayanan, to adopt Resolution No. 2021- CITY COUNCIL MINUTES September 7, 2021 Page 6 71 for a Planned Unit Development concept review on 2.1 acres; to approve the first reading of the ordinance for a Planned Unit Development District review with waivers and a Zoning District change from R1-22 to R1-9.5 on 2.1 acres; to adopt Resolution No. 2021-72 for a preliminary plat to divide one lot into six lots on 2.1 acres; to direct staff to prepare a development agreement incorporating staff and commission recommendations and Council conditions; and to authorize the issuance of an early land alteration permit for Johnson Ridge at the request of the developer, subject to the conditions outlined in the permit. Motion carried 5-0. X. PAYMENT OF CLAIMS MOTION: Narayanan moved, seconded by Freiberg, 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 1. Resolution No. 2021-73 Certifying Proposed 2022 Property Tax Levy, Accepting Proposed 2022 Budget, Setting Date for Public Hearing, and Consenting and Approving HRA Tax Levy Getschow observed the Council has had many strategic planning sessions about the 2022 levy and budget including workshops and a review of the results of the community survey early this spring. There was a Council workshop in July to receive detailed updates on the budget for 2022 and 2023. Each year we adopt the tax levy and budget, and tonight we will be setting the preliminary tax levy and budget. All the information about this proposed levy and budget is available online. He noted our residents want us to maintain our high level of service across all our departments at a reasonable price. We also wanted to bring a balanced budget, and we had some work to do on that in July. This budget is balanced and includes updates on those items from July. For the past several years the preliminary budget has been very similar to the final budget. This action just sets a ceiling so there is room to maneuver within the budget. Getschow noted we will add to our Public Safety budget and will add a contract CITY COUNCIL MINUTES September 7, 2021 Page 7 with Hennepin County for a social services outreach person. We will add an additional dispatcher, another assistant Fire Chief, and an additional forestry position. More than 2/3 of our budget relates to our employees and the associated costs. The proposed levy and tax increase is 4.7%. When compared to some of our peer cities, only two of similar size are contemplating a levy lower than ours. Our debt levy is flat once again. He noted the tax impact for a median value home is an increase of about $82, and much of that increase is attributable to the increase in value of homes in Eden Prairie. Commercial property will see a decrease in taxes. He pointed out the City tax rate is lower than it was in 2018. That is attributable to growth in value but also to our very moderate budget increases. We have had moderate budget increases recently, and the overall budget for 2022 shows a 4.8% increase. Getschow explained Council approval tonight of this proposed tax levy and budget will be used to generate a statement to our tax payers sometime in November stating their taxes for 2022. The statement will include the tax amounts for other jurisdictions such as the county, school district and others. All of the taxing jurisdictions will hold public hearings about their tax levy. Our public hearing is scheduled for the first Tuesday of December. We have Council workshops scheduled prior to that date to discuss other budget items. Nelson thanked the staff for all the work done in preparing the budget. She appreciated the efforts to keep the budget low while keeping taxes low and keeping our services in place. Freiberg observed staff did a good job as they kept services at the same level and added some extras. Narayanan agreed with Council Members Nelson and Freiberg. He noted that about 25% of our total taxes goes to the City while the remainder goes to others such as Hennepin County and the School District. He observed Eden Prairie has the highest rating in terms of our bond rating. He asked how much someone with a home in the $400,000 range would pay in increased taxes. Getschow replied the value of a median value home has gone up about 4%, and the taxes will go up about 5%. Case asked about the share among the different tax base components. Getschow replied the impact on commercial/retail was less than that on residential because of the impact of COVID. Toomey also thanked staff for the hard work. Case reiterated tonight we are setting the maximum dollar amount we will tax entities across the City and that is driven by the budget we have set. In December we could choose to lower the maximum amounts. CITY COUNCIL MINUTES September 7, 2021 Page 8 MOTION: Nelson moved, seconded by Freiberg, to adopt Resolution No. 2021-73 that certifies the proposed 2022 property tax levy to be $43,102,554; sets December 7, 2021, as the meeting which will include discussion of the budget and provide for public comment; accepts the proposed 2022 budget of $55,617,390; and consents and approves the HRA tax levy of $205,000. Motion carried 5-0. Case commented the City’s budget reflects the values held by every City Council over the years. 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 Case acknowledged Finance Director Sue Kotchevar’s work for the City over the past many years. She is retiring the end of September. Getschow said Ms. Kotchevar heads the Finance Department, which is the department that prepares all the material for the budget decisions and has done much of the work necessary to keep our excellent bond ratings over the years. XVI. ADJOURNMENT MOTION: Narayanan moved, seconded by Nelson, to adjourn the meeting. Motion carried 5-0. Mayor Case adjourned the meeting at 8:10 p.m.