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City Council - 06/14/2022 - Workshop APPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, JUNE 14, 2022 CITY CENTER 5:00 – 6:25 PM, HERITAGE ROOMS 6:30 – 7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey CITY STAFF: City Manager Rick Getschow, Police Chief Matthew Sackett, Fire Chief Scott Gerber, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Jay Lotthammer, Administrative Services/HR Director Alecia Rose, Communications Manager Joyce Lorenz, City Attorney Maggie Neuville, and Recorder Katie O’Connor Workshop - Heritage Rooms I and II (5:30) I. 2023-2032 CAPITAL IMPROVEMENT PLAN Council Member Nelson was not in attendance. Case noted there are some instances timelines for projects have been changed when there were many requests from constituents. Getschow provided the example of body cameras for the police department being a project completed sooner than anticipated. The Capital Improvement Plan (CIP) provides an overview of anticipated projects. All of these projects would come back to the Council individually for approval at a meeting. Narayanan inquired what percentage is delegated to various projects. Getschow responded projects fluctuate every year, so no percentage is assigned. For example, there may be more road projects one year than the next. Sustainability projects are classified differently. Case added assigning percentages may look good, but it would limit the Council. Tammy Wilson, Finance Manager, stated the presentation will be a review of the proposed CIP and will provide an opportunity for Council to provide feedback and direction. The CIP will come before the Council on December 6 for a public hearing and adoption. The CIP provides systematic planning, scheduling, and financing of capital projects. It preserves and expands capital in a way that is sustainable and affordable for Eden Prairie citizens. It consists of various funds and funding sources. With the CIP, the City is able to maintain infrastructure, continue a strong pay-as-you-go program, have debt levels remain stable, and maintain the City’s bond rating. Wilson stated when referencing the summary by department, you can see community development decreased by $6,180,000. All of the Tax Increment Finances (TIF) projects City Council Workshop Minutes June 14, 2022 Page 2 have been removed from the CIP and moved over to the Strategic Plan for Housing and Economic Development. TIF projects will still be done the same way. Getschow added most of these funds were through Community Block Development Grants (CBDG) and housing rehabilitation loans. It didn’t necessarily fit under the CIP. Getschow noted the City is not decreasing capital spending. The budget has increased by five million dollars. Narayanan inquired what is considered a capital project. Wilson responded anything over $25,000 and with a life of three years or more. Narayanan inquired about computers. Wilson replied computers are in the IT operating budget. Wilson provided differences between the proposed projects and the 2021 to 2030 CIP were highlighted. Engineering is estimated to decrease by nine million dollars, but it depends on the projects. Park and Recreation increased primarily for the Round Lake shelter and Miller Court project. Utility vehicles are now being included under the fleet fund. Case inquired if electric vehicles (EV) have increased the fleet services proposed amount. Ellis responded yes. There are greater increases for larger vehicles such as the heavy equipment. Narayanan inquired the information technology (IT) proposed projects. Getschow replied most of it is attributed to network and fiber infrastructure. Toomey inquired if the proposed projects for the police department include a building remodel or new offices. Getschow replied there will be some further discussion on plans for changes and how the City would like to use the open office spaces from the vacancy of United Natural Foods, Inc. (UNFI). Using some of that space would mean less space to rent but also less buildings to maintain. The remodel would be at least three years away, but there would even be a possibility to reimagine the meeting spaces. The funding is in this plan. Case stated the City’s police department entrance is much less desirable than other cities. If the police department were to be on the other side of the building, there could be a more defined entrance. Getschow added another possibility is to consider how to remodel the current entrance. Narayanan inquired about what is included in community development. Getschow stated those funds are designated for entry monument signs, economic development, and projects related to light rail transit (LRT). Wilson stated the total proposed amount for 2023 projects is $30,409,485, and the 2024 projects total $24,571,100. The CIP includes many funds, one of which is the capital maintenance and reinvestment fund. It is projected the year 2023 will start with around $10 million dollars of fund balance. By 2023 the total fund balance will be around two million dollars. There are dedicated revenue sources for the fund, but one time revenue is sometimes transferred into this fund. For example, if there is excess fund balance in the general fund. Those funds are not included in the projections. This is how the CIP is meant to operate as far as projections. Case inquired about what has caused a fund balance transfer. Wilson replied some examples are excess development revenue or the American Rescue Plan Act City Council Workshop Minutes June 14, 2022 Page 3 (ARPA) funds. Getschow added the City budgets more than has been spent. We are conservative with how we budget development revenue. Wilson stated liquor operation funds, tax levy, antennae revenue, and rent from the Smith House are all projected in the capital maintenance and reinvestment fund balance. Some of the projects being funded out of the capital maintenance and reinvestment fund include engineering projects such as roadway maintenance, American Disability Act (ADA) ramp improvement program, West 70th Street East segment, and Willow Creek Road bridge and culvert replacement. The projects for 2023 and 2024 in engineering amount to $5,170,000. Freiberg asked about what roadway maintenance includes. Ellis noted this is better referred to as roadside maintenance which includes repairing fences, repainting sound walls, and replacing portions of guardrail. Getschow noted the presentation will run through projects based on their funding source. Wilson stated the next slide reviews fire department projects from the capital improvement and reinvestment fund. This does not include the purchase of fire trucks. Those will be funded with debt. The projects, such as City building security cameras and serve system, radio replacement, and rescue tool replacement, for 2023 and 2024 amount to $5,388,900, Parks and Recreation projects for the next two years amounts to $18,405,000. One of the larger projects in 2023 is the Round Lake Park building reconstruction. This project is budgeted at $1.3 million dollars, but it did come in about double the cost. The rest will be funded by the park improvement fund. Some of the other department projects to highlight are police, totaling $1,359,500, infrared laser sights replacement and rifles. Sustainability projects include installing additional EV charging stations for $80,000. Toomey inquired how many EV chargers the project includes. Rick Clark, Facilities Manager, stated this would be a dual fast charging station at Purgatory Creek. Narayanan asked if there is a charge to use this station. Clark replied yes. The project is under the assumption of Xcel paying to install the infrastructure. Wilson added fleet services mobile vehicle lifts and removal of in-floor hoists amounts to $30,000. Wilson noted the park improvement fund total projects amount to $6,990,000. This includes Miller Court Indoor Court Facility, Round Lake Park building reconstruction, park amenity upgrades, and Outdoor Center Master Plan Improvement. The economic development fund projects total $1,855,000. This fund gets revenue from the daycare center rental income and other purchased and sold land. The ending balance would be $1.8 million. Some of the projects include the West 70th Street East segment, entry monument signs, Town Center/Eden Road entry plaza, station area bike racks and plantings, and City West entry monument and art. Narayanan inquired about the cost of the entry monument sign. Getschow noted the total is for one to two signs and possibly over a bridge. Toomey inquired about the station area bike racks and plantings total. Klima responded this includes all bike racks and landscaping that was agreed upon for LRT. Getschow added these are locally funded improvements to the Metropolitan Council’s standard plan the City is required to pay for. City Council Workshop Minutes June 14, 2022 Page 4 The City will maintain these plantings. There are certain areas the Metropolitan Council has agreed to maintain with mowing. Freiberg inquired about the City West Entry Monument Art. Klima responded this is designated money for an art structure to be placed at the City West station plaza area. Case stated there are concerns from County Commissioners about a change in legislature and therefore a possibility of the LRT not being completed. He is optimistic no one would want to pay for the demolition, but there are many uncertainties about where the funds would come from to finish the project. Wilson stated there are $4.4 million dollars dedicated to sustainability projects. Some of the sustainability projects include EV charging stations and fire station one heating, ventilation, and air conditioning (HVAC) system. Other projects include $2.5 million for rink one, $500,000 for City Center HVAC, and $600,000 for LED lights. The facilities internal service fund is funded by user charges from the general fund. The total cost of projects over ten years is $7.6 million dollars. The Community Center makes up $570,000 in 2023 including rebuilding the gym floor. Case inquired why the flooring requires replacement. Lotthammer replied the flooring was installed in 2007, and it is a rubber material rather than wood. Wilson stated the Maintenance Facility projects, totaling $300,000 in 2023, include a vehicle gate and rooftop unit. The City wide building restoration costs are reoccurring. Some of the other projects include the City Center heat pump replacement happens annually; seal apparatus bay floor at Fire Station three; water and sewer at the DorenKemper house; roof, apparatus bay floor drain repair, and seal apparatus bay floor at Fire Station two; and HVAC replacement at Fire Station one. Wilson stated in regard to IT projects the internal and external network is a project spanning ten years at about $1.7 million dollars. Narayanan noted workstation upgrades is included in CIP. Rose added these upgrades include laptops with doc stations to have the ability for a virtual environment if needed. Narayanan inquired about cyber security. Getschow noted much of the work done with the network works towards preventing cyber security issues. Freiberg inquired if the City is vulnerable to attacks. Getschow noted the City tries to have the most robust firewalls possible, and there is insurance if this were to become an issue. Wilson stated fleet services projects total $20.6 million dollars. This includes vehicle and equipment replacement, mobile vehicle lifts and remove of in floor hoists, and maintenance shop upgrades. The transportation fund sources its funds from leftover assessments or municipal state aid (MSA). The projects total $2.4 million and include signal operations and improvements, Prairie Center Drive (PCD) Singletree regional center signals, PCD and Franlo intersection and traffic signals. Case inquired if the City is working towards updating to the blinking left turn signal. Ellis stated there are probably a dozen of the more expensive signals left to be done that qualify for this type of signal. City Council Workshop Minutes June 14, 2022 Page 5 Wilson stated the water fund is funded by citizens user charges. Water access charges will go towards well number 17 construction and the 101 water main loop. Case inquired where the new well is located. Ellis responded off Village Woods Drive to the west of Mitchell Road. They are currently drilling for the well. There have been neighborhood meetings, so they are aware there will be blasts during the drilling. Case inquired if this is through Prairie du Chein. Ellis replied yes. There is a raw water pipe that collects water from all the wells and it runs to the treatment plant and is dispersed out. Wilson noted the water funds larger projects will include the water meter change-out for commercial buildings and the Eden Prairie Road watermain replacement. Case inquired how the replacement will impact traffic. Ellis replied there will likely not be much of an impact to traffic. Wilson stated larger projects funded by the wastewater fund include Homeward Hills Road sewer lining and reoccurring sump pump collection. There are various smaller projects through the stormdrainage fund. Some of the other various funding come from MSA. These projects include the Dell Road design, funds for the county for the Pioneer Trail bridge design and the Eden Prairie Road bridge design. There is also funding through assessments and grants. The pavement management fund sources revenue from franchise fees. The fund balance is a little over $2 million dollars. At the end of the ten years the balance would be about $1.5 million dollars. These projects include franchise fee increases. Some of the larger projects are Pioneer Trail reconstruction for $1 million and Prairie Center Drive pavement rehabilitation for $755,000. Case inquired where the Pioneer Trail project is taking place. Ellis replied it is the old section by the community garden. Ellis stated there will be an upcoming workshop on franchise fees. Over the course of 60 years, a road should cost less than $6 a square foot. Today the City is sitting at a rating of about 86 or 87 out of 100 on the pavement condition index (PCI), on the lower cusp of excellent. At current funding levels, the City will likely be in the good rather than excellent in ten years for PCI. The City has been having to do more aggressive work sooner than expected due to not enough of a gravel base, and inflation is increasing project costs. 10 lane miles are in the category of very poor or poor. The goal is to improve those. Over the course of 10 years, with franchise fees, nearly every city street has been worked on. This has cost each homeowner about $780 total with franchise fees rather than being assessed. Wilson stated future debt would include three fire trucks and two skeeters in 2024, a couple more fire trucks in 2026, tower 41 in 2027, quint 11 in 2032, police remodel in 2025, and rink 1 ice in 2030. The projected debt levy would remain flat at $2.5 million until 2025. In 2026, it would slightly increase. The City policy states the annual debt levy shall remain less than 15 percent. With these debt issuances, it would be a little less than six percent. The City has maintained their Aaa Moody’s rating and AAA Standard & Poor’s rating. Open Podium - Council Chamber (6:30) City Council Workshop Minutes June 14, 2022 Page 6 II. OPEN PODIUM A. KARIN KEELING – CONSERVATION Karin Keeling, 11447 Anderson Lakes Pkwy, stated the City has 22,464 acres of land, and only 1,400 is undisturbed natural areas. Six percent is untouched. The Department of Natural Resources (DNR) letter stated they strongly recommend preserving prairie land. One percent of the remaining prairie land in the state is in Eden Prairie. Prairie lands are the habitat of the rusty patch bumblebee. She stated this is of great concern. Case responded the Council cares greatly about Eden Prairie and appreciates that the residents care. Less than about 50 percent of the City is developed when you consider places such as lakes and ball fields. The City has more open-space land than any other suburban city in the state of Minnesota. There are over 1,000 acres of park land and 4,500 acres of open space. Keeling stated she is referencing natural, undisturbed land. Case noted there will always be debates about undeveloped land getting developed. The City has to be careful to use tax dollars responsibly, and therefore decided not to purchase the land. The land in this example has been farmland for 60 years. The owner of the land has an approved development agreement. Had the City purchased this land for five million dollars, it would have been the most expensive acreage purchased in the history of Eden Prairie. III. ADJOURNMENT