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City Council - 06/06/2000 APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL TUESDAY JUNE 6,2000 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: 3. Mayor Jean Harris, Councilmembers Sherry Butcher, Ronald Case, Ross Thorfinnson, Jr., and Nancy Tyra-Lukens CITY COUNCIL STAFF: City Manager Chris Enger, Parks & Recreation Services Director Bob Lambert, Public Safety Director Jim Clark, Public Works Services Director Eugene Dietz, Community Development and Financial Services Director Don Uram, Management Services Director Natalie Swaggert, City Attorney Roger Pauly and Council Recorder Peggy Rasmussen I. ROLL CALL/CALL THE MEETING TO ORDER Mayor Harris called the meeting to order at 7:03 p.m. Councilmember Thorfi mson was absent. H. PLEDGE OF ALLEGIANCE HI. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Butcher added Item XII.A.1., Report on Eden Prairie Foundation and Item XH.B.2., Request for a Workshop. Mayor Harris added Item XI.A., Appointment to Eden Prairie Foundation. MOTION: Butcher moved, seconded by Tyra-Lukens, to approve the agenda as published and amended. Motion carried 4-0. IV. MINUTES A. CITY COUNCIL WORKSHOP HELD TUESDAY,MAY 16,2000 MOTION: Case moved, seconded by Butcher, to approve the minutes of the City Council Workshop held Tuesday, May 16, 2000, as published. Motion carried 3-0,with Mayor Harris abstaining due to her absence. B. CITY COUNCIL MEETING HELD TUESDAY,MAY 16,2000 MOTION: Butcher moved, seconded by Case, to approve the minutes of the City Council Meeting held Tuesday, May 16, 2000, as published. Motion carried 3-0,with Mayor Harris abstaining due to her absence. CITY COUNCIL AfflVUTES June 6,2000 Page 2 C. SPECIAL CITY COUNCIL MEETING HELD TUESDAY, MAY 30, 2000 MOTION: Tyra-Lukens moved, seconded by Butcher, to approve the minutes of the Special City Council Meeting held Tuesday, May 30, 2000, as published. Motion carried 3-0,with Mayor Harris abstaining due to her absence. V. CONSENT CALENDAR A. CLERK'S LICENSE LIST B. EDEN PRAIRIE MINI-STORAGE EXPANSION by Two S Properties, Inc. 2 d Reading for Site Plan Review on 1 acre. Location: 7921 Eden Prairie Road (Resolution No. 2000-82 for Site Plan Review) C. ADOPT RESOLUTION NO. 2000-83 APPROVING FINAL PLAT OF SETTLERS RIDGE FIFTH ADDITION D. ADOPT RESOLUTION NO. 2000-84 RELATING TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, GIVING THE PROJECT PRELIMINARY APPROVAL SUBJECT TO A PUBLIC HEARING (MICRO DYNAMICS CORPORATION PROJECT) E. ADOPT RESOLUTION NO. 2000-85 APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR LINCOLN LANE STREET AND STORM SEWER IMPROVEMENTS,I.C. 52-196 F. ADOPT RESOLUTION NO. 2000-86 APPROVING PLANS AND SPECIFICATIONS -AND ORDERING ADVERTISEMENT FOR BIDS FOR FOREST HILLS ROAD STREET AND STORM SEWER IMPROVEMENTS,I.C. 98-5466 G. APPROVE CHANGE ORDER NO. 1 FOR 2000 STREET STRIPING H. RECEIVE FEASIBILITY REPORT AND ADOPT RESOLUTION NO. 2000-87 SETTING PUBLIC HEARING FOR HIGHVIEW DRIVE/LAKELAND TERRACE AREA STREET AND UTILITY IMPROVEMENTS,I.C. 98-5406 I. ADOPT RESOLUTION NO. 2000-88 APPROVING PLANS AND SPECIFICATIONS FOR INSTALLATION OF EMERGENCY PRE- EMPTION (EVP) ON 18 EXISTING TRAFFIC SIGNALS THROUGHOUT EDEN PRAIRIE J. ADOPT RESOLUTION NO. 2000-89 APPROVING CONSTRUCTION COOPERATIVE AGREEMENT NO. PW-59-49-98 FOR THE CSAH 1 (PIONEER TRAM CONSTRUCTION PROJECT FROM HENNEPIN TOWN ROAD TO TH 212 (FLYING CLOUD DRIVE),I.C. 94-5369 CITY COUNCIL MINUTES June 6,2000 Page 3 I K. AUTHORIZE PUBLICATION OF NOTICE OF INTENT TO FRANCHISE L. AMEND POLICY ON ASSESSMENTS LIMITS FOR HOMESTEAD PROPERTIES M. APPROVE RESOLUTION NO. 2000-90 AUTHORIZING THE I-494 CORRIDOR COMMISSION TO EXECUTE TRAFFIC STUDY AND GOLDEN TRIANGLE REIMBURSEMENT AGREEMENTS WITH THE CITY OF EDEN PRAIRIE, N. APPROVE RESOLUTION NO. 2000-91 AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE TRAFFIC STUDY AND GOLDEN TRIANGLE REIMBURSEMENT AGREEMENTS WITH THE I-494 CORRIDOR COMMISSION Tyra-Lukens asked Dietz for a summary of the landscaping plans in the construction cooperative agreement for the Pioneer Trail project contained in Item J. Dietz replied Hennepin County would be paying an additional $100,000 toward the cost of landscaping, beyond the amount that would be required for tree preservation and replacement, a total of approximately $300,000. The residents of Pioneer Trail were promised that a committee of residents would be convened to assist the City in the selection process for hiring a landscape consultant. The committee has been convened, and landscaping is expected to be done in 2002. MOTION: Tyra-Lukens moved, seconded by Case, to approve Items A-N on the Consent Calendar. Motion carried 4-0. VI. PUBLIC HEARINGS/MEETINGS A. OAK PARKE 2" ADDITION (Cole Property) by Thompson Land Development. Request for Planned Unit Development Concept Amendment on 11.27 acres of the 162.4 acres of Eden Orchard PUD, Planned Unit Development District Review with waivers on 11.27 acres, Zoning District Change from Rural to RM-6.5 on 3.99 acres and from Rural to R1-13.5 on 1.66 acres and Preliminary Plat on 11.27 acres into 31 lots and 4 outlots. Location: 17251 Cedarcrest Drive. (Resolution No. 2000-93 for PUD Concept Amendment, Ordinance for PUD District Review and Zoning District Change, and Resolution No. 2000-94 for Preliminary Plat) Enger said the official notice of this public hearing was published on May 25, 2000 in the Eden Prairie News and sent to 19 property owners. Lee Johnson, of Thompson Land Development, showed a map of the Eden Orchard PUD as approved a year ago. At that time the PUD did not include a five-acre piece that is now included. This project is a replat of 20 existing twin home lots in the existing Eden Orchard PUD, and a subdivision of the adjacent Cole property into 10 twin home lots and 1 single-family lot. CITY COUNCIL MINUTES June 6,2000 Page 4 The four outlots are platted, and all of them would be owned by the homeowners association. Outlots B and D can be made into a conservation easement; a total of 4.8 acres. Outlot C would be dedicated to the City as public right of way for the extension of Cedar Crest Drive. The developer is requesting a variance to the frontage width from 24 feet to 22.76 feet. The lot width waiver is needed to create the outlot for the construction of a trail which will connect Harrison Drive and Cedar Crest Drive. The tree loss on five acres is 23.3 percent, compared with 28.3 percent overall in the PUD. The required tree replacement is 1,736 inches. Uram said the Community Planning Board voted 8-0 at its May 8 meeting to recommend approval of the project. Mayor Harris asked if anyone wished to address the Council regarding this project. No one did. MOTION: Tyra-Lukens moved, seconded by Butcher, to close the public hearing; and adopt Resolution No. 2000-93 for PUD Concept Amendment on 11.27 acres; and approve lst Reading of the Ordinance for PUD District Review and Zoning District change from Rural to RM-6.5 on 3.99 acres and from Rural to R1-13.5 on 1.66 acres; and adopt Resolution No. 2000-94 for Preliminary Plat on 11.27 acres into 31 lots and 4 outlots; and direct Staff to prepare a Developer's Agreement incorporating Board and Staff recommendations; and direct Staff to issue an early land-alteration permit to Thompson Land Development to proceed with construction at their own risk. Motion carried 4-0. B. BRYANT LAKE REGIONAL PARK PHASE H by Hennepin Parks. Request for Planned Unit Development Concept Review on 167.6 acres and Planned Unit Development District Review with waivers within the Rural Zoning District on 167.6 acres. Location: 6800 Rowland Road. (Resolution No. 2000- 92 for PUD Concept Review, Ordinance for PUD District Review and Zoning District Amendment) Enger said official notice of this public hearing was published on May 25, 2000, in the Eden Prairie News and sent to 129 property owners. Alex Meyer, the landscape architect for the project, explained that this is Phase II of the development. The first phase was completed in 1993 and 1994. Phase II involves adding four parking lot areas with a total of 85 spaces, two restroom facilities, a picnic shelter, and additional paved trails throughout the park consistent with the master concept plan approved in 1993. Hennepin Parks has $500,000 left over from the original $3 million grant to use for these improvements. At the north end, the bike/hike trail loop will be constructed to connect with the Minnetonka trail system and another bituminous trail connection will be made from the new driveway to the Wooddale Church property where the City controls an easement for trail purposes. CITY COUNCIL MINUTES June 6,2000 Page 5 One parking lot has eight spaces, which would be reserved for handicapped persons, who would have trouble walking down the hill from the other parking lots. One of the new restroom facilities is also located here and will require a lift station for sewage removal. A variance is being requested for the restroom and parking lot, as they are both located within 200 feet of the shoreline. Case asked where people could park now to get to the disc golf course. Meyer replied they park at the existing gravel parking lot,which will be paved. Mayor Harris asked if Hennepin Parks plans to have a ranger on site, as mentioned at the meeting of the Community Planning Board. Karen Bowen, Director of Operations, said they plan to have a Public Safety Officer at the park throughout the summer. Uram stated the Community Planning Board voted 8-0 at the May 8, 2000 meeting to recommend approval of the project with a restroom facility setback waiver from 200 feet to 148 feet. Mayor Harris asked if anyone wished to address the Council. Rachel Soffer, 11599 Raspberry Hill Road, said she is representing the residents of Raspberry Hill Road. One problem they have had with the addition of the disc golf course is the parking situation. Teen-aged boys are parking on Raspberry Hill Road in order to avoid paying for parking in Bryant Lake Park. They drive recklessly as they come onto the street. There are 24 children living on Raspberry Hill Road, 20 under the age of eight, making this a public safety issue. The residents had never expected traffic and noise on this road. It is a short road that branches into two cul-de-sacs. The boys in the cars are playing loud music and leaving litter behind. The residents have asked the boys to use the parking lot provided in the park, but the boys have just responded with bad language. After two no parking signs were put up, the boys just parked farther up the road into the cul-de-sacs. All of the residents support having the entire Raspberry Hill Road posted no parking. They are worried about their children's safety. Stephanie Willette, 6630 Golden Ridge Drive, said she doesn't approve of taking down three trees to put in the eight-space parking lot near the lake. She doesn't believe the parking lot is needed as she seldom sees anyone in the park, and she is there frequently. Regarding the new trail for biking, she has never seen bikers, only walkers using the trails. MOTION: Butcher moved, seconded by Case, to close the public hearing. Motion carried 4-0. Mayor Harris asked for the status of the "action plan" Hennepin Parks was to develop. CITY COUNCIL MINUTES June 6,2000 Page 6 Karen Bowen responded the "action plan" was put together and included removing one of the baskets for the disc golf course closest to Rowland Road. In addition, they have published three pieces of information urging parking within park boundaries and describing neighborhood concerns, and put the same information on the Park District's Web page. They have also increased the number of public safety officers and entry gate staff to educate the public. The public safety officer said he has had no complaints in the past week. Regarding posting no parking signs, neighbors are in support of that and Bowen believed it would be a good idea. Mayor Harris asked when the other parking lot is to be constructed. Bowen replied they have a deadline of December 31 to use that money for parking lots. The biggest complaint she hears from visitors is there are not enough shaded areas where people can picnic, and the Park District hopes to provide that. Enger said Police Chief Clark would speak to the issue of parking. Clark said his department has been cooperating with Hennepin Parks to monitor the parking problem. They have tried to have squad cars in the area as much as possible. When officers have been there they have not seen the problem. Restricting Raspberry Hill Road to parking by permit only would require a number of things, including an ordinance change by the City. It would also require decisions about who would manage the permits, how they would be distributed, etc. It may create other problems and, eventually, the residents would probably come back to ask for a change. Also,this would create a unique parking requirement,which Clark would not want to see duplicated throughout the City. Butcher said in other parts of the City there are problems with teen-agers parking where they aren't wanted. She asked Clark what he would recommend neighbors do about this. In her neighborhood, they write down the license numbers and call the police. Then the police go to the homes of the owners of those cars. Clark said he would like to see preventive efforts given more time. If that doesn't result in changes, he would go to the next step, which would be to post "No Parking" on the whole length of Raspberry Hill Road. Clark listed the items in the "action plan." (1) Hennepin Parks will continue to distribute educational materials and increase the presence of public safety officers to educate park patrons. (2) Due to the proximity of Raspberry Hill Road to the main park entrance, the City will post permanent "No Parking" signs along the east side of the Raspberry Hill Road from Rowland Road to the point where Raspberry Hill Road branches into two cul-de-sacs, or approximately the first 150 feet. (3) The Eden Prairie Police Department will continue to monitor the area frequently. (4) The City staff will meet with Hennepin Parks at the end of July to reevaluate the situation. Tyra-Lukens said if there would be an effort to include neighbors in the meeting at the end of July. Clark said they would be invited. CITY COUNCIL MINUTES June 6,2000 Page 7 Mayor Harris said she favored giving the plans that are in place time to see if they will work. Butcher said she would hate to see a productive activity, such as disc golf, not continue. She would recommend using the "neighborhood watch" idea to notify the police when there is a problem. Tyra-Lukens said she believed this is a good activity for kids and would like to get them to cooperate. She would not be averse to putting up signs stating no parking between certain hours, if there is no improvement before the meeting in July. She wondered if the lower parking lot could be moved to avoid the tree loss. Meyer stated he believed the trees referenced that are marked to come down were in a windstorm last year and need to be removed as a safety measure. Through their research with the Park District, they believe there is a need for additional parking, and the eight-car parking lot is a prime area. Because of the steep slops they cannot make a trail down, so that is why this road would be built down to the parking lot for handicapped people. Mayor Harris stated the disc golf course, already in place, is a separate issue from the approval of Phase II. She asked City Staff and Hennepin Parks to work together to eliminate the problem of parking in the neighborhood. MOTION: Tyra-Lukens moved, seconded by Butcher, to adopt Resolution No. 2000-92 for PUD Concept Review on 167.6 acres; and approve 1st Reading of the Ordinance for PUD district Review with waivers within the Rural Zoning District on 167.6 acres. Case said, after the July meeting he would like to hear a report about this parking issue on Raspberry Hill Road. If the neighbors still have issues, he would like to see additional signage. Also, everything being done at this meeting is very consistent with the 1993 Phase I plan. Hennepin Parks has built in phases, as the money was available. Motion carried 4-0. D. VACATION 00-04 — VACATION OF DRAINAGE AND UTILITY EASEMENT IN PART OF BEARPATH SECOND ADDITION (Resolution No. 2000-97) Enger said official notice of this public hearing was published on May 4, 2000, in the Eden Prairie News and sent to 10 property owners. The property owner has requested this vacation to remove underlying drainage and utility easements from the property to enable the combination of lots. The property received final plat approval by the City Council on May 2, 2000, as Stringer Addition. Replacement easements have been dedicated on the plat. CITY COUNCIL MINUTES June 6,2000 Page 8 Mayor Harris asked if anyone wished to address the Council on this public hearing. No one did. MOTION: Case moved, seconded by Butcher, to close the public hearing; and adopt Resolution No. 2000-97 vacating the drainage and utility easements as described in the resolution. Motion carried 4-0. E. ORDER IMPROVEMENTS AND PREPARE PLANS AND SPECIFICATIONS FOR CEDAR FOREST FIRST ADDITION STREET AND UTILITY EVIPROVEMENTS,I.C. 99-5491 (Resolution No. 2000-98) Enger said official notice of this public hearing was published on May 25, 2000, in the Eden Prairie News and sent to 63 property owners. Dietz reviewed the process for special assessments. Although the City received a valid petition from the neighborhood for these improvements, in the process of going through the feasibility study additional properties were brought into the process for development in the future. Therefore, the Council should consider that these improvements are being done on the Council's own motion, which requires a four-fifths majority vote to advance the project. Al Gray explained the project, which will provide lateral street and utility improvements to approximately 45 residential properties in and adjacent to Cedar Forest First Addition, as well as utility improvements benefiting approximately 18 land parcels in the area around the First Addition. Cedarcrest Drive and Valley Road may be extended westerly into the properties along the west boundary of the subdivision when development occurs. Existing homes on these properties currently take their street access to Cedarcrest Drive and Valley Road. The width of Cedarcrest Road is 35 feet. The City is proposing it be reconstructed at 28 feet in width. The City estimates the total cost of the improvements at $710,000, including street construction. Forty-eight lots would be assessed $14,790 each. The average frontage is 150 feet per lot, which explains the higher-than-average assessment. An outlet storm sewer is required for the existing pond. The City proposes to put one in adjacent to Riley Creek. The cost of providing the pond outlet is estimated to be $96,000. About 96 units in undeveloped properties would benefit from the system, in addition to the neighborhood, so the assessment would be about $1,000 per unit. The remainder of the system cost is included with lateral storm sewer and included with street improvements. Watermain improvements are estimated to cost $216,280. Each of the 45 lots in Cedar Forest First Addition and the two homes on adjacent parcels to the west will receive similar benefits of access to potable water and improved fire protection. It is proposed to assess each of the benefited properties $4,600. CITY COUNCIL MINUTES June 6,2000 Page 9 A pumping station will be needed to pump sewage west into the sanitary sewer system being installed in Oak Parke. The system costs are divided into lateral and subtrunk accounts. Based on $211,000 lateral cost and 47 lateral units, it is proposed to assess each lot in Cedar Forest First Addition and Parcels 49 and 50 $4,490 for lateral service. Based on $316,510 subtrunk cost and 247 subtrunk units, it is proposed to assess each of the parcels receiving subtrunk benefit $1,280 for each assigned unit. In addition, trunk utility assessments of$520 are proposed for each residential property receiving lateral sewer and water service. Properties not assessed for trunk at this time will be assessed at the time of development. Staff has had two neighborhood meetings and mailed out two surveys to assess property owner opinions. From the responses to the surveys, 56 percent of the neighborhood was in favor of proceeding with the project. City Council has approved an increase in the maximum amount to be assessed for improvements for homesteaded properties to $19,600, to reflect current project costs and benefit. The total proposed assessment to each residential property for this project is $25,160 and will be adjusted to the recommended maximum for 47 homesteaded parcels. This adjustment would amount to $5,560 per parcel, for a City expense of$261,320. These parcels are allowed exclusion from sewer and water assessments for five years, if not immediately needed. Tyra-Lukens said she understands that the adjustments totaling $261,320 will be paid for by all Eden Prairie residents. Gray said this amount would be financed out of utility funds. Tyra-Lukens asked, if this was a new development, wouldn't this amount be covered by the developer who would then pass the cost on to the owner through the lot cost. Gray replied yes, the developer would cover it. Mayor Harris asked if anyone wished to address the Council. Kelly Trickey, 17181 Cedarcrest Drive, asked when this project would be going out to bid, provided the Council approves it. Dietz replied they plan to award the contract on August 1, so construction could start two weeks after that date. He estimated substantial completion of the utilities by the end of this construction season,with street improvements completed by mid-summer 2001. Ms. Trickey asked how the area will look in August, September and October. Dietz replied it will be difficult, at best, to maintain access to the neighborhoods during that time. If there is dry weather the work will go more quickly. Gray said at the end of the cul-de-sac there will be a very deep excavation for the sewer line. Dietz added it will take three to four months to finish the worst of that work. Ann Rannow, 17150 Cedarcrest Drive, asked why this work couldn't be done in one construction season. Regarding the environmental issue of the drainage pond near Riley Creek, she asked why a pond could not be placed in that development when it occurs. Riley Creek is beautiful and she hates to see a drainage pond destroy this area. CITY COUNCIL MMWTES June 6,2000 Page 10 Dietz replied that a NURP pond would be there to protect the water in the creek. When the area to the west and east is developed, they will be required to construct their own NURP ponds to deal with water generated in that neighborhood. All new residential properties are required to have NURP ponds. With regard to the construction season, Dietz said the City's goal is to substantially finish the project this year, hoping to have utilities and curb and gutter in. Usually they can extend the construction season to the end of November, but sometimes bad weather forces it to end October 31. Restoration behind the curbs and the last lift of asphalt on the road will go in next year. Nick Hedlund, 17181 Cedarcrest Drive, asked how long there would be a problem with access and if it would be solved before winter. Gray responded that during construction, on occasion people will have to park on the streets and walk some distance to their homes. They will attempt to make it possible to drive through and have a way in and out. Hedlund asked how long that situation would last. Gray replied they would make it a usable road for the winter, although in the worst case it might only be a gravel road. MOTION: Butcher moved, seconded by Case, to close the public hearing and adopt Resolution 2000-98. Motion carried 4-0. F. WELTER'S TRAILHEAD by Ray and Carole Welter, Jr. Request for Planned Unit Development Concept Review on 5.22 acres, Planned Unit Development District Review with waivers on 5.22 acres,Zoning District Change from Rural to R1-13.5 on 5.22 acres, and Preliminary Plat on 5.22 acres into 4 single-family lots, and 1 outlot. Location: 9630 Crestwood Terrace. (Resolution No. 2000-95 for PUD Concept Review, Ordinance for PUD District Review and Zoning District Change, and Resolution No.2000-96 for Preliminary Plat) Enger said official notice of this public hearing was published on April 6, 2000, in the Eden Prairie News and sent to 35 property owners. No one representing the developers was present. Uram stated the Community Planning Board voted 6-0 to recommend approval of the project to the City Council at its March 27, 2000 meeting. The City Council continued this item at its April 18 and May 2, 2000 meetings for the developer and City to work out cost sharing for storm sewer installation and erosion restoration. This project is for four single-family lots. Due to the topography, the developer is requesting lot-frontage waivers of 76 feet for Lots 1 and 2, and side- yard structure setbacks of 5 feet minimum one side/total of 15 feet both sides, for Lots 3 and 4. Rationale for the waivers includes anticipated width needed to accommodate a City trail along the east side of the property. The developer and City have agreed to share the costs for storm sewer installation and erosion restoration, each paying 50 percent. Dietz said, regarding the cost-sharing arrangement, 50 percent is included as part of the Cedarcrest storm sewer project because it depends on bringing utilities CITY COUNCIL MINUTES June 6,2000 Page 11 through the Cedarcrest project, which depends on the Eden Apple Orchard project. So timing will be sequential. Lambert said the Settlers Ridge development required a way to get the trail out to Dell Road. This is ahead of the development of the Cedarcrest project. It will allow developing a trail out to Crestwood Drive and eventually to the City park. Mayor Harris asked if anyone wished to address the Council. No one did. MOTION: Case moved, seconded by Butcher, to close the public hearing and adopt Resolution No. 2000-95 for PUD Concept Review on 5.22 acres; and approve 1"Reading of the Ordinance for PUD District Review with waivers and Zoning District Change from Rural to R1-13.5 on 5.22 acres; and adopt Resolution No. 2000-96 for Preliminary Plat on 5.22 acres into 4 single family lots and 1 outlot; and direct Staff to prepare a Developer's Agreement incorporating Commission and Staff recommendations. Motion carried 4-0. Mayor Harris called a recess at 8:35 p.m. The Council meeting resumed at 8:45 p.m. VII. PAYMENT OF CLAIMS MOTION: Case moved, seconded by Tyra-Lukens, to approve the Payment of Claims as submitted. Motion was approved on a roll call vote, with Butcher, Case, Tyra- Lukens and Harris voting"aye". VIII. ORDINANCES AND RESOLUTIONS IX. PETITIONS,REQUESTS AND COMMUNICATIONS X. REPORTS OF ADVISORY BOARDS & COMMISSIONS A. COMMUNITY PROGRAM BOARD RECOMMENDATION ON THIRD RINK TASK FORCE Lambert explained the events leading up to formation of the Third Rink Task Force in February 2000. The City Council decided to form a citizens' task force. Approximately half had an interest in figure skating or hockey and half did not. That committee met for about two-and-a-half months. The City Council asked the task force to determine if there is a need for a third rink and if there is,what is the need, and if that need justifies and makes a rink financially feasible; i.e., could it be constructed without cost to Eden Prairie. Lambert introduced the co-chairs of the Third Rink Task Force, Pat Richard and John Schmelzle, to talk about the results. Pat Richard said he has been involved in the community since 1985 and so was interested in serving on this task force. He felt his involvement was very objective, as he has no children involved in hockey or figure skating. The task force came up with information that was discussed at length and very candidly. CITY COUNCIL NIINUTES June 6,2000 Page 12 The Eden Prairie Hockey Association, Figure Skating Club and City Staff pulled together figures for the report. They came to the conclusion that there is a need for a third sheet of ice and that need is for about 1,500 hours on a third sheet of ice, without taking away from the other two sheets of ice. Most of that need is from October through March, during the hockey and figure-skating season. As to whether a third rink is financially feasible without cost to the City, he didn't believe the task force was to decide how it could be done, but if it could be done. It could be done if they are able to find financial sponsorship from private organizations to make up the difference between how much ice time can be sold and the cost of construction. Richard said the Hockey Association would like the opportunity to go to the next step. First, would the City be willing to allow a facility to be named after a significant financial donor? Second, could it be built on city/school property, and third, could the Hockey Association and Figure Skating Club go forward and get a more specific cost estimate? John Schmelzle, representing the Eden Prairie Hockey Association, commended the work of City Staff in compiling the report, especially how other communities are doing with regard to ice rink facilities. He was challenged by others on the task force to justify the numbers in the report. He is very confident in the results. The Hockey Association and Figure Skating Club would like to find a way to build a facility for the kids of Eden Prairie to handle the growth in figure skating and hockey, especially girls' hockey. He would like to be able to prove they can get the funding. That is why the need to get the closest possible estimate of construction costs. Butcher said she thought all the figures were impressive in terms of information. She asked how far into the future a rink would continue to have high use and remain viable. Schmelzle replied the task force asked anyone who had anything to do with enrollments, and could not find anybody who went out more than five years with projections. They looked at other communities and the life cycles of their rinks. For example, Edina just added a third rink last year and the Eden Prairie Hockey Association is the same size and still growing. He would like to have seen projections for 20 years, but they weren't available. Based on information from the Minnesota Amateur Hockey Association and other organizations, they don't see the interest in hockey dropping off. He has not seen any rink that had to go out of business. Tyra-Lukens said she was very impressed with all the work done so quickly, and it is obvious they went into a lot of detail. She asked the co-chairs to convey thanks to the task force. Mayor Harris asked about the difference between Eden Prairie and Edina hockey associations in the number of hours used on the ice, and wondered if that reflects the fact Edina has more time ice time available. CITY COUNCIL MINUTES June 6,2000 Page 13 Schmelzle replied yes, they have the ice right there in Edina. Eden Prairie Hockey Association rents wherever they can get the ice. This past season they went as far south as New Prague and as far north as Maple Grove and New Hope. However, it is getting more difficult to secure ice at other arenas because most of the ice they buy at the arenas farther away is for prime time, not at 6:00 a.m. or 9:00 P.M. Case said he remembered when people used outdoor rinks in the winter more than indoor rinks. Schmelzle agreed, but said they can't depend on the outdoor ice. The past two years they have had a hard time with outdoor ice because of the warm winters. Also, all the programs have become bigger and more competitive. The idea of the hockey program is to give every kid who wants to play hockey a chance to play, and the numbers have been growing, partly because girls' hockey has grown significantly. Case asked Enger if, in all the discussions with General Growth about the indoor rink at Eden Prairie Center, a proposal was ever made that the Eden Prairie Hockey Association would basically build it. Enger replied General Growth was planning to promote a general ice arena, not specifically programmed for hockey, but wanted something that would be compatible with the Eden Prairie Center. They were looking at it from a business perspective. They thought the Hockey Association would be the primary user of the ice,but they did not seek a partnership. Swaggert said the Community Program Board met on May 23 to review the Third Rink Task Force Report. They revisited the purpose of the task force and found that "based on the information from the Third Rink Task Force Report, there is a present need for additional facilities, but the long-term need and the feasibility of constructing and operating a third rink at no cost to the City was not established." The Program Board cited three additional conditions that require approval by the City Council in order for the project to be feasible. (1) Allow the use of park land located at the Community Center site for the purpose of constructing a third rink. (2) Depart from current City policy and permit naming the Community Center or an ice arena within the Community Center after a corporate sponsor (assuming funding is sufficient to make the project feasible). (3) Agree to carry the risk of$1 million in debt and$100,000 in annual operating costs against anticipated revenues to support this project if the Eden Prairie Hockey Association is not able to do so in the future. Mayor Harris said the Program Board has identified three conditions that need individual discussion. Before doing that, she wanted to thank the task force for their work. CITY COUNCIL MINUTES June 6,2000 Page 14 MOTION: Tyra-Lukens moved, seconded by Butcher, to thank the Third Rink Task Force for their work and accept their finding that a current need exists for additional ice time of 1,278 hours with sale of up to 1,500 hours being feasible, and that between $2 and $3 million additional dollars are needed to make a third sheet of ice feasible. Motion carried 4-0. MOTION: Tyra-Lukens moved, seconded by Butcher, to accept the finding of the Community Program Board that"based upon information from the Third Rink Task Force Report, there is a present need for additional facilities, but the long- term need and the feasibility of constructing and operating a third rink at no cost to the City was not established." Motion carried 4-0. Mayor Harris asked Lambert where a third rink would be constructed. Lambert replied the task force developed two concept plans connected with the Community Center. Concept one would place the third rink perpendicular to the other two rinks, and concept two would place the third rink between the second rink and the high school. They would both be partially on City-owned property and partially on school property. Concept one would allow 77 additional parking spaces. They would not decide which plan at this point,however,but would meet with the School District to discuss which one is more acceptable. Case said Councilmembers indicated at a workshop with the Hockey Association that it would be a good idea to connect a third rink to the Community Center. Mayor Harris said a motion is needed that Council is comfortable with permitting use of park land at the Community Center for these purposes. They would also have to direct Staff to work with the School District. Lambert said when the City added the second rink they moved the boundaries of the property to accommodate the City. Direction from the Council would be to direct Staff to hold discussions with the School District to determine if they are amenable to changing the School District boundaries again so that the rink would be built entirely on City property. MOTION: Case moved, seconded by Butcher, to direct Staff to begin discussions with the School District regarding the possibility of a third sheet of ice being built somewhere around the Community Center. Motion carried 4-0. Mayor Harris said there is also the question of whether the City would permit naming of the ice arena or the whole Community Center after a corporate sponsor. Tyra-Lukens said the City has already allowed a score board at Miller Park to be partially sponsored. This is one of those changes that has taken place over the years and she felt comfortable with it. Butcher said she would draw the line at alcohol or tobacco sponsorship. She wondered how much revenue sponsorship would really produce. CITY COUNCIL MINUTES June 6,2000 Page 15 Lambert said they are talking about something bigger than having a corporate name on a scoreboard or placard. They are talking about naming the rink or changing the name of the Community Center. That is what it is going to take, however, because it would cost $2 to $3 million to build the rink. The sponsor's name could be on the whole Community Center or just the third rink. Case asked if they would get half of the cost covered. Lambert replied that to make this feasible, they would need the difference between $1 million and the actual cost of the rink. The cost of the rink is expected to be $3.5 to $4 million. Council would be directing the Hockey Association to obtain $2 to $3 million. The sponsor would have to know what they would get for this amount of money. Council needs to decide what it is comfortable with in terms of sponsorship. Case said he thought residents and taxpayers would view this favorably if City dollars are not being spent. He wanted to do what is best for the people of the City. He felt comfortable about it. Mayor Hams said she was comfortable with it also. Tyra-Lukens said ideally she would like to name just the rink after a corporate sponsor. There is also a pool in the Community Center, and it may need improvements at some time, so the City might need a corporate sponsor for that part of the Community Center. Enger asked for clear direction to the Staff. If Council wants to keep sponsorship to the naming of the rink Council should say so now. Mayor Harris said she believed Staff has a sense of what the Council wants. She would like to remain flexible on the naming issue and have guidance from the Staff. MOTION: Butcher moved, seconded by Tyra-Lukens, to depart from current City policy and permit naming a facility after a corporate sponsor. Motion carried 4-0. Enger said there is a significant risk to the City when it gets involved in lease revenue bonds. The Program Board pointed out the concern about not being able to forecast ice usage for more than five years, while the debt would be carried for 20 years. Uram explained that even though the City is not responsible for payment of the debt service, it impacts the City in intangible ways, such as the City's bond rating. Because the City issues the debt, it will be responsible for the payment of that debt if anything happened to the rink itself. It is hard to project what will happen in 10 years, and 20 years is even more difficult to project. Uram said he also doesn't know what will happen with the tax situation. The debt service payment for the second rink is covered through the operating expenses of the Community Center, and the City has levied taxes for that. In this situation, where it would not CITY COUNCIL MINUTES June 6,2000 Page 16 be covered by a tax levy, they would be looking for another source of funds to pay the debt service. Lambert said they are not proposing to ask a corporate sponsor to fund the entire cost of construction. They would be asking the sponsor to cover the difference between the $Y million the City can cover through revenue bonds and the actual cost of the arena, which is expected to be $3 to $4 million. The Community Center can easily sell 1,500 hours-of ice per year on a third rink from October 15 to March 15 when everyone wants ice time. That would cover the $100,000 yearly operating cost, and $1 million of debt would be covered through lease revenue bonds. Uram said that depends on how the City structures the bonds. They can have level debt payments or start with a lower debt service payment and then gradually increase it. Case inquired if it is correct to say City Staff is not concerned about having to support the $1 million plus the $100,000 operating costs in the next five years; it is really beyond five years that the City is concerned about. Uram replied even if it is not a financial cost to the City, there are intangible costs. Butcher asked if the Hockey Association had offered some funding assistance. Lambert replied the Hockey Association indicated it would apply for a Mighty Ducks grant of$250,000 and that they would match that amount. He assumed they would be able to provide$250,000, even without the Mighty Ducks grant. Mayor Harris asked what is the possibility that fees would decline as ice is built in the area. Lambert replied that in the Task Force Report they anticipated the fee being $140 per hour for the next 20 years. It is more likely that 20 years from now, during the winter months, the fee will be $200 per hour. Fees for ice time from March until October is going in the other direction, however, because that is when there is competition between rinks to sell ice time. Very likely, over the next 20 years there will be one or two rinks not operating at all in the summer. In the first years of having a third rink, the Community Center would probably sell time in the summer months, but they did not count that time in the Task Force Report. Minnetonka is talking about building a third rink. Staff will monitor what is going on in the communities around Eden Prairie, and if a couple of other rinks are built before the City's gets built, Staff would do another feasibility study, because the area is close to being saturated with rinks. Mayor Harris said, before making a commitment, Council should consider what the impact on the City would be in terms of its strategic planning and capital improvements, etc. CITY COUNCIL MINUTES June 6,2000 Page 17 Tyra-Lukens said she would like to see that information, but to bear in mind that the task force was conservative in their figures. However, it would be good to know how much this would impact the City in terms of other debt. Lambert said the task force had that same discussion and so they ratcheted down the number of hours the Community Center could sell and compared their figures with Edina, which is similar in size to Eden Prairie. The report was conservative and only talked about what they know they can sell in the winter, and they believe they can sell 1,200 to 1,500 hours. Regarding the financing, he asked if the Council is comfortable with the $1 million referendum. The City would be building a $4 million facility and the bond people would be pleased if somebody else is funding the other $3 million, because the risk would be on the entire facility and the City only has to sell bonds for one-fourth of the cost. Uram said what Staff will do is look at the debt structure and put numbers to it. He recommended minimizing the term by looking at a 10-15-year debt structure so the City could get it off the books. Case referenced the three conditions requiring Council approval, which the Program Board listed. He pointed out that if the first two conditions work out,the third one becomes much less of a concern. He would support the Hockey Association going ahead. The City subsidizes hockey now, as well as other sports. If the City were looking at liability of $10,000 a year, Council would consider that reasonable. Enger said if the Hockey Association is going out in earnest to get a$243 million commitment, they need to know the City is willing to go forward with this. If the Hockey Association can obtain funding, that has no bearing on the risk the City is expecting to cover for the $1 million. It has nothing to do with the idea that the ice arena might cost $344 million. It only has to do with how many hours of ice can be sold to cover the debt service. He didn't believe it made any difference whether the City obtains other funding commitments as to what the bond rating would be and the risk to the City. Staff needs to find out if Council wants to minimize the term down to 10 or 15 years,because that might support less than$1 million in debt. That makes the gap bigger and the Hockey Association needs to know this before going out to raise money. Staff could come back with this information for the next Council meeting. Case said Eden Prairie built the transportation hub with two other cities. He believed there could be partnership potential with Minnetonka, Chanhassen or Chaska. He asked if Council shouldn't direct Staff to pursue contact over the next month and see if that holds any possibility whatsoever. Mayor Harris said this was a very good idea and should be included in all Council motions. Enger said this would directly follow the efforts for the joint public safety training facility in collaboration with five other communities. CITY COUNCIL MINUTES June 6,2000 Page 18 MOTION: Butcher moved, seconded by Case, to evaluate the risk of$1 million in debt and $100,000 in annual operating costs against anticipated revenues to support this project. Motion carried 4-0. Mayor Harris said there should be other directions to Staff, as there are implications beyond the commitment of land. MOTION: Tyra-Lukens moved, seconded by Case, to direct City Staff to work with the School District to monitor parking at the High School, Community Center, and Round Lake Park for one year based upon all new uses, to determine adequacy of parking should a third rink be added at this site; and determine the general impacts of the proposed third rink on the High School, Community Center and parking facilities and activities; and obtain School District permission for siting the third rink utilizing a part of the High School Property. Motion carried 4-0. Lambert explained that it might be difficult to do a joint project for a multi- community arena. The City would need to have at least 1,278 hours available for the Eden Prairie Hockey Association. It will be difficult for the City to find enough hours between October 15 and March 15 to rent to other cities. They would ask what they are going to get out of it,because there would not be any ice time to share. This sounds like a good idea, but the ice time isn't there to be shared with other communities. MOVED: Butcher moved, seconded by Tyra-Lukens, to direct the Eden Prairie Hockey Association to demonstrate the financial feasibility of a third rink, at no cost to the City, by obtaining funding commitments necessary to cover the balance of the cost of the facility ($2-$3 million) prior to further City Council Action. Motion carried 4-0. XI. APPOINTMENTS A. APPOINTMENT TO EDEN PRAIRIE FOUNDATION Mayor Harris thanked Councilmember Butcher for serving on the Eden Prairie Foundation for the past four years. As she is not able to continue, Mayor Harris said she asked Councilmember Tyra-Lukens to serve as the new Council representative and she has agreed. Councilmember Butcher was appointed as alternate representative when Councilmember Tyra-Lukens is unable to attend meetings. Council agreed to these appointments by consensus. XII. REPORTS OF OFFICERS A. REPORTS OF COUNCILMEMBERS CITY COUNCIL MINUTES June 6,2000 Page 19 1. Councilmember Sherry Butcher's Report on the Eden Prairie Foundation Councilmember Butcher asked everyone to watch for a publication that the Eden Prairie Foundation recently published. The publication reviews the Foundation's mission and commitment to the community and provides a way for the foundation to raise funds. 2. Councilmember Sherry Butcher's Request for a Workshop Councilmember Butcher referenced the previous City Council meeting, when she talked about the people the City has contracted with to provide services, and about having these people come to one of the workshops to describe what they do for the City. She asked Staff to set up a workshop where that could take place. The other request she had was if this could be done in the Council Chambers in order for other people to see this presentation. Enger said Staff would provide a date when this can be done. B. REPORT OF CITY MANAGER 1. Special Assessment Workshop Enger said there are a number of special assessment issues coming up and this would be an opportunity for the Council to talk about the philosophy of how those special assessments are done. He suggested doing this at the June 20 Council Workshop. Also, the State Legislature has eliminated levy limits for the next year, and discussion with the Council would be important as to how this falls into the City's budget year and to discuss other related organizations such as Southwest Metro Transit. Southwest Metro Transit had agreed with all the cities in the region to keep their levies at the same amount. They have now requested having the levy higher than the City has. He would like to discuss this with the Council. C. REPORT OF PARKS AND RECREATION SERVICES DIRECTOR 1. Water Quality Proposal for Round Lake Lambert referenced the plan authorized by Council earlier this year for staff to use the money originally budgeted for operating the swimming beach at Round Lake to provide a swimming curtain and pump fresh water behind the curtain through aeration. The goal was to be able to open the swimming beach in 2001 by maintaining clean enough water behind the curtain and to discourage geese from using the area. CITY COUNCIL M NUTES June 6,2000 Page 20 Since that time, Lambert met with a company called Greener Pastures Development Corporation. It has developed a product called "Clarify" that contains micro organisms, which consume a wide range of manmade pollutants to clean up small ponds. The City had contracted with them to clean up the ponds by the water treatment plant. Mark Miles, CEO of Greener Pastures,believes they can clean up Round Lake,bringing it from a eutrophic condition to a low meseutrophic condition by the end of the summer. After reviewing the Barr Engineering Company's reports, Mr. Miles is quite sure he can make some significant changes to Round Lake by September 1. Lambert calls this an experiment because they have not done a lake of this size and depth. Mr. Miles has indicated that the first year cost to clean Round Lake and the adjacent ponds would be $40,000. If it works the cost will go down each year after that. Staff believes the concept should work on lakes as well as ponds. The original estimate was $50,000 to clean up the lake using a swimming curtain and pumping fresh water behind that curtain. It also included a plan to keep the geese out. Staff recommends delaying any investment in a water curtain until determining the results of this proposal by Greener Pastures. Lambert referenced three options to make improvements at the beach, which were previously distributed to Council. Option B was recommended by Staff. This includes a barrier tied to boulders under the water to keep the geese out. The City also wants to extend the stone fence from the playground area. They would also discourage geese by putting pepper spray on the grass, using a dog to harass the geese, and also removing geese from the area. Staff recommends the Council request the Watershed District to do this as a joint project, splitting the cost, and to monitor water quality to determine if this truly is the answer to long-term water quality improvement of Eden Prairie's lakes and ponds. Case asked how the City would fund the cost if the Watershed District declines. Lambert replied this amount was budgeted to operate the beach this summer. However, he believed the Watershed District would be willing to find out if the Greener Pastures' system works. Butcher pointed out that if it does work it would save the City a lot of money. Lambert said it would also save the Watershed District a lot of money because they are obligated to clean up all the lakes and ponds in the City. MOTION: Butcher moved, seconded by Case, to authorize staff to enter into a contract with Greener Pastures Development Corporation, Inc., to treat Round Lake and the detention pond directly serving Round Lake, to bring the water quality to a TSI reading of 38 or less by September 1, 2000, and further to petition the Riley-Purgatory-Creek Bluff Watershed District to consider sharing the cost of this pollution reduction effort and CITY COUNCIL NIINUTES June 6,2000 Page 21 conducting the water quality monitoring before, during, and after treatment during the summer of 2000. Motion carried 4-0. D. REPORT OF COMMUNITY DEVELOPMENT AND FINANCIAL SERVICES DIRECTOR 1. 1999 Comprehensive Annual Financial Report(CAM Uram introduced Steve Wischmann, a manager in the accounting firm of Kern, DeWenter, Viere, Ltd., which reviewed the City's annual financial report. Mr. Wischmann said the City received an unqualified certificate of achievement,the highest that can be achieved. About 70 percent of the City's revenues come from property taxes, 21 percent from licenses and general services. Expenditures were up a little over 4 percent from 1998,but under the budgeted amount. The accounting firm will issue a separate report for new financial standards coming in 3- to 4 years that will materially change the way things are presented in the financial report. The company will work with Staff on this. Uram said the new standards Mr. Wischmann referred to will be discussed with Council in a future workshop. It makes sense to implement this over the next couple of years. MOTION: Tyra-Lukens moved, seconded by Case, to accept the 1999 Comprehensive Annual Financial Report(CAFR). Motion carried 4-0. E. REPORT OF PUBLIC WORKS SERVICES DIRECTOR F. REPORT OF PUBLIC SAFETY SERVICES DIRECTOR G. REPORT OF MANAGEMENT SERVICES DIRECTOR H. REPORT OF CITY ATTORNEY XIII. OTHER BUSINESS A. COUNCIL FORUM INVITATION Mayor Harris said Council Forum is held the first and third Tuesdays of the month from 6:30 —6:55 p.m. in Heritage Room II. This will be scheduled time following City Council Workshops and immediately preceding regular City Council Meetings. It is important, if you wish to visit with the City Council and Service Area Directors at this time, that you notify the City Manager's office by noon of the meeting date with your request. CITY COUNCIL MINUTES June 6,2000 Page 22 XIV. ADJOURNMENT MOTION: Tyra-Lukens moved to adjourn the meeting. Mayor Harris adjourned the meeting at 10:15 p.m.