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City Council - 12/05/2023 APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, DECEMBER 5, 2023 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 Amy Markle, 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 7:05 PM. All Council Members were present. II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION IV. PROCLAMATIONS / PRESENTATIONS A. ACCEPT DONATIONS FROM SPARK OF EDEN PRAIRIE AND ELIM SHORES FOR 2024 SENIOR CENTER SPECIAL EVENTS (Resolution No. 2023-111) Markle announced the City has received a donation of $250 from Spark of Eden Prairie and $500 from Elim Shores toward 2024 Senior Center special events. MOTION: Nelson moved, seconded by Freiberg, to adopt Resolution accepting the donation of $250 from Spark of Eden Prairie and $500 from Elim Shores toward 2024 Senior Center special events. Motion carried 5-0. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Narayanan added an item to XIV. Reports A. Diwali Event. MOTION: Toomey moved, seconded by Nelson, to approve the agenda as amended. Motion carried 5-0. VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY, NOVEMBER 14, 2023 CITY COUNCIL MINUTES December 5, 2023 Page 2 B. CITY COUNCIL MEETING HELD TUESDAY, NOVEMBER 14, 2023 MOTION: Narayanan moved, seconded by Freiberg, to approve the minutes of the Council workshop held Tuesday, November 14, 2023, and the City Council meeting held Tuesday, November 14, 2023, as published. Motion carried 5-0. VII. REPORTS OF ADVISORY BOARDS AND COMMISSIONS VIII. CONSENT CALENDAR A. CLERK’S LIST B. APPROVE SECOND READING OF ORDINANCE NO. 19-2023 TO ADOPT TENANT PROTECTIONS AND ADOPT RESOLUTION 2023-112 APPROVING SUMMARY ORDINANCE C. APPROVE SECOND READING OF ORDINANCE NO. 20-2023 TO AMEND CITY CODE, CHAPTER 11 RELATED TO REFORMATTING ZONING CODE REGULATIONS AND ADOPT RESOLUTION 2023-113 APPROVING SUMMARY ORDINANCE D. APPROVE SECOND READING OF ORDINANCE NO. 21-2023 TO AMEND CITY CODE CHAPTER 11.70 SIGN REGULATIONS AND ADOPT RESOLUTION NO. 2023-114 APPROVING SUMMARY ORDINANCE E. ADOPT RESOLUTION NO. 2023-115 ACCEPTING DONATIONS AND IN- KIND CONTRIBUTIONS F. ADOPT RESOLUTION NO. 2023-116 SUPPORTING APPLICATION TO DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) JOBS CREATION FUND (JCF) FOR NVE CORPORATION G. ADOPT RESOLUTION NO. 2023-117 APPROVING APPRAISAL VALUES FOR THE W 70TH STREET IMPROVEMENT PROJECT H. ADOPT RESOLUTION NO. 2023-118 APPROVING APPRAISAL VALUES FOR THE PRAIRIE CENTER DRIVE AND FRANLO ROAD INTERSECTION IMPROVEMENT PROJECT I. AWARD CONTRACTS FOR 24-6253.1 WATER TREATMENT CHEMICALS FOR 2024 AS INDICATED IN ATTACHED RECOMMENDATION OF AWARD J. AWARD CONTRACT FOR POND IMPROVEMENTS (POND 25-34-A AND 14-23-A) PROJECT TO FITZGERALD EXCAVATING AND TRUCKING INC. CITY COUNCIL MINUTES December 5, 2023 Page 3 K. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH STANTEC FOR CONSTRUCTION ADMINISTRATION FOR POND IMPROVEMENTS PROJECT L. APPROVE COOPERATIVE SERVICE AGREEMENT WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOR 2023-2024 DEER MANAGEMENT SERVICES M. APPROVE ONE YEAR COMMUNITY GARDEN PLOTS LEASE AGREEMENT WITH THE METROPOLITAN AIRPORT COMMISSION (MAC) N. AUTHORIZE AGREEMENT FOR PROFESSIONAL SERVICES FOR DESIGN AND CONSTRUCTION DOCUMENTS WITH STANTEC CONSULTING SERVICES FOR THE CONSTRUCTION OF A NEW RETAINING WALL AT THE RICHARD T. ANDERSON CONSERVATION AREA O. AUTHORIZE AGREEMENT FOR PROFESSIONAL SERVICES FOR DESIGN AND CONSTRUCTION DOCUMENTS FOR THE REHABILITATION OF THE WEST BLUFF OVERLOOK TRAIL AT THE RICHARD T. ANDERSON CONSERVATION AREA P. APPROVE CIP PURCHASE OF NORDIC PATROL PERSONAL PROTECTIVE EQUIPMENT AND ACCESSORIES Q. APPROVE RENEWAL OF TOWING SERVICES AGREEMENT BETWEEN CITY OF EDEN PRAIRIE AND ALLEN’S SERVICE INC, DBA MATT’S AUTO SERVICE R. AWARD CONTRACT FOR FINANCIAL ADVISORY SERVICES TO EHLERS S. ADOPT UPDATED CAPITAL ASSET POLICY MOTION: Nelson moved, seconded by Toomey, to approve Items A-S on the Consent Calendar. Motion carried 5-0. IX. PUBLIC HEARINGS / MEETINGS A. CREW CARWASH by Crew Carwash. Resolution for a PUD Concept Plan Review on 1.35 acres and First Reading of Ordinance for a PUD District Review with Waivers on 1.35 acres. (Resolution No. 2023-119 for PUD Concept Plan Review and Ordinance for a PUD District Review with Waivers) Getschow explained Crew Carwash is proposing to construct a new automatic car wash facility and a staffed, car interior clean building, replacing a Burger King CITY COUNCIL MINUTES December 5, 2023 Page 4 restaurant building that was removed in 2022. The property is located at the intersection of Eden Prairie Road and MN HWY 5. The property is 1.35 acres and is zoned Highway Commercial and is guided Commercial. The proposed car wash facility is a permitted use in the zoning district. Getschow noted the improvements include a 5,858 square foot automatic car wash building located on the west side of the site and a 6,193 square foot car interior clean building with an attached canopy to be constructed on the east side of the site. The building materials exceed the minimum requirements. Getschow pointed out three waivers are requested as part of the PUD concept plan review: impervious surface coverage of 61 percent, a 10-foot side yard setback along the eastern property line, and an 8-foot parking side yard setback. Staff supports the setback waivers due to the site being surrounding on three sides by public streets and the site provides access to the landlocked Starbucks parcel to the east. The impervious surface coverage waiver is supportable as it is a reduction from previous levels and the distance of the parcel from Mitchell Lake. Getschow added the Planning Commission voted 7-0 to recommend approval of the project at their recent. Jake Steen, 8300 Norman Center Drive in Bloomington, introduced himself as an attorney with Larkin Hoffman and representative of the applicant. He provided a presentation on Crew Carwash and summarized its history as a business. He explained the site design and the services offered by the proposed use. Additionally, Mr. Steen provided details on the requested waivers. Case asked how Crew Carwash plans to handle gray water. Mr. Steen stated the business attempts to capture as much gray water as possible; about 40 percent of gray water is captured and reused. He pointed out Crew Carwash uses fewer gallons of water than its competitors in each wash. Toomey asked about the height of the various sign options. Mr. Steen stated the height is 18 feet for each of the signs. Toomey asked if the wider sign base would pose a visibility issue. Mr. Steen stated the favorite option is the third option which is less wide, and the applicant is flexible. Nelson asked how many signs there would be. Katherine Rayner, representative of Crew Carwash, stated they are proposing three signs. Additionally, there would be smaller directional signage. Nelson asked if the signs meet the City’s requirements. Klima confirmed the signs meet the City’s requirements. Freiberg asked how far back the pylon sits from the curb. Mr. Steen stated he doesn’t know the exact measurement from the curb, but it will be moved 20 feet CITY COUNCIL MINUTES December 5, 2023 Page 5 away from the current location. Narayanan asked where the dirty water goes. Mr. Steen stated the dirty water goes to the sanitary system. Narayanan noted his preference for the smaller sign base. There were no comments from the audience. MOTION: Toomey moved, seconded by Freiberg, to close the public hearing, and to adopt a Resolution for a PUD Concept Plan Review on 1.35 acres; and approve the first Reading of an Ordinance for a PUD District Review with Waivers on 1.35 acres; and direct Staff to prepare a Development Agreement incorporating Staff and Commission recommendations and Council conditions. Motion carried 5-0. B. ADOPT RESOLUTION NO. 2023-120 SUPPORTING APPLICATION TO DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) MN INVESTMENT FUND (MIF) FOR NVE CORPORATION Getschow explained the City is applying for a $400,000 grant through the through the Department of Employment and Economic Development’s (DEED) Minnesota Investment Fund (MIF) to help fund a $6 million cleanroom expansion for Eden Prairie based NVE Corporation. DEED requires the City to apply for the grant on behalf of the business. DEED also requires a public hearing before application submittal. Getschow noted the recommendation is to adopt a resolution supporting application to the Minnesota Investment Fund by the City of Eden Prairie on behalf of Eden Prairie-based company NVE Corporation. Dan Baker, President and DEO of NVE Corporation, provided information on the business. He noted the project would create 23 jobs. MOTION: Nelson moved, seconded by Freiberg, to close the public hearing, and to adopt a resolution supporting application to the Minnesota Investment Fund by the City of Eden Prairie on behalf of Eden Prairie based company NVE Corporation. Motion carried 5-0. C. ADOPT RESOLUTION NO. 2023-121 CERTIFYING 2024 PROPERTY TAX LEVY, ADOPTING 2024 BUDGET, AND APPROVING 2024 HRA TAX LEVY Getschow explained on September 5, 2023, the Eden Prairie City Council adopted a resolution certifying the proposed 2024 City budget and property tax levy. All taxpayers were notified of the public hearing. According to State statute, the final levy amount must be certified to the county auditor by December 28, 2023. City CITY COUNCIL MINUTES December 5, 2023 Page 6 Council adoption of the final levy and budget will complete this process. Wilson summarized the purpose of the public hearing and noted it is a legal requirement. The meeting is to be held after property owners receive their proposed property taxes. Wilson stated calculations for the City showed the budget to be $60,322,771 and the certified levy to be $47,138,752 before fiscal disparities distribution. The net tax levy after fiscal disparities distribution of $2,316,660 is $44,822,092. The 2024 proposed budget maintains City services with a budget increase of 5.7% in the general fund and a total budget increase of 5.1% which includes the capital levy and debt service payments. The tax levy is budgeted to increase 5.6%. Wilson provided specific details on the budgets broken down for each Department. Narayanan asked how much is budgeted for the election. Wilson stated there is around $300,000 budgeted for the election. Wilson pointed out budget highlights include maintaining current services, base wage increase of three percent for employees, a nine percent increase in health insurance, a three percent increase in dental insurance, worker’s compensation insurance increase, election year funding, cadet program, and the increase of costs for gas and electric. Wilson explained the increase in market value for various properties in the City. It is due to inflation and additions to the tax base. Narayanan asked for the breakdown of market value for residential and commercial properties. Getschow stated he doesn’t have the exact number, but the Assessor would know the details. He noted the tax base is very diversified and has a higher proportion of commercial properties than similar communities. Wilson noted the median value home is $536,400 and would experience a $54 increase in taxes, which is a 3.5 percent increase. Apartments would experience a 1.9 percent increase and commercial properties would see a 3.8 percent increase in taxes. Getschow noted the property value increase was closer to four or five percent in comparison to the previous year’s seven percent increase in property values. Wilson added the monthly cost of services in Eden Prairie is about $131.83 for the median home. Getschow pointed out the quality of life in the City of Eden Prairie, citing community survey highlights. City-wide goals include community sell-being and safety, high quality, efficient services, preserved and beautiful environment, a sense of community, innovative and sustainable practices, and economic vitality. Both of those items inform the budget process. He summarized the goals of each Department and its impact on the budget. CITY COUNCIL MINUTES December 5, 2023 Page 7 Getschow showed a Class Rate Schedule for taxes payable. He noted it is a complicated process and various subsets of how properties are taxed. Case pointed out different cities have different rates, but Eden Prairie’s rate is lower overall. Getschow showed proposed 2024 tax levies for various cities. The average is around nine percent. He showed a slide of comparable cities’ historical levies, showing Eden Prairie has the lowest increase total since 2009. Getschow added commercial properties in the seven-county Metro area participate in a Regional Commercial Tax Base Sharing program. Eden Prairie is the fifth largest contributor to the program. Without fiscal disparities, the residential property tax for a median value home would be 5.9 percent less. The point of the program is to level the playing field for various cities to attract commercial businesses. Kavitha Reddy, 16651 Reeder Ridge, explained she has a 24 percent increase in property taxes, which is an increase of more than $3500. Her home is now valued over $1 million, but she paid closer to $700,000. She shared how a neighbor’s home with more updates was valued too similarly to hers even though the other property had extensive updates. A different home in her neighborhood had an 11 percent increase, but didn’t receive updates, similar to hers. Additionally, homes in her neighborhood are not selling at their initially listed prices. Case noted there is an alternative process to question property values. The issue at hand is setting the tax levy for the entire City. Vivek Gupta, 16757 Wuttke Crossing, noted he lives in the same neighborhood as Ms. Reddy. His home has not received any home improvements, but his home value increased 18 percent. He requested the Council lower the property taxes. Case agreed the process is difficult and impacts people differently. If the houses in the particular neighborhood aren’t selling well, the market impact will be reflected in future assessments. Getschow encouraged the commenters and other community members to participate in the property value assessment appeal process. He explained the process. MOTION: Nelson moved, seconded by Toomey, to close the public hearing, and to adopt a resolution certifying the 2024 Property Tax levy to be $47,138,752; and approve the 2024 Budget of $60,322,771 as reviewed by the Council; and approve the HRA tax levy and budget of $210,000. Case pointed out the budget reflects the values and goals of the community. VOTE ON THE MOTION: Motion carried 5-0. CITY COUNCIL MINUTES December 5, 2023 Page 8 D. APPROVE FIRST AND SECOND READINGS OF ORDINANCE NO. 22- 2023 UPDATING 2024 FEE SCHEDULE FOR ADMINISTRATION OF OFFICIAL CONTROLS AND ADOPT RESOLUTION NO. 2023-122 APPROVING SUMMARY ORDINANCE Getschow explained this 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 Toomey, to close the public hearing, and to Approve first and second readings of the Ordinance updating the fee schedule for Administration of Official Controls and adopt resolution approving the summary for publication. Motion carried 5-0. E. ADOPT 2024 FEE RESOLUTION NO. 2023-123 FOR CITY SERVICES Getschow explained this Resolution updates the fee schedule for the City’s services not covered by ordinance. There were no comments from the audience. MOTION: Toomey moved, seconded by Narayanan, to close the public hearing, and to adopt the 2024 fee resolution. Motion carried 5-0. X. PAYMENT OF CLAIMS MOTION: Freiberg moved, seconded by Nelson, 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 1. Diwali Event Narayanan noted South-Asian community leaders recently hosted a Diwali event. CITY COUNCIL MINUTES December 5, 2023 Page 9 The event celebrated a variety of cultures and was highly successful. 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 8:42 p.m. Respectfully submitted, ________________________ Sara Aschenbeck, Administrative Support Specialist