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City Council - 11/20/2001 APPROVED MINUTES EDEN PRAIRIE, CITY COUNCIL TUESDAY,NOVEMBER 20,2001 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Jean Harris, Councilmembers Sherry Butcher,Ron Case, Jan Mosman, and Nancy Tyra-Lukens CITY STAFF: City Manager Carl Jullie,Parks &Recreation Services Director Bob Lambert, Public Works Services Director Eugene Dietz, Community Development and Financial Services Director Don Uram, City Planner Michael Franzen, City Attorney Ric Rosow 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. H. PLEDGE OF ALLEGIANCE III. COUNCIL FORUM INVITATION Mayor Harris said Council Forum is held the first and third Tuesdays of the month from 6:30 — 6:50 p.m. in the Council Chamber. This will be scheduled time following City Council Workshops and 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. From 6:50 -7:00 p.m. there will be an Open Podium in the Council Chamber immediately preceding regular City Council Meetings. Anyone wishing to speak at the Open Podium may do so without advance notice to the Council or staff. IV. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS MOTION: Tyra-Lukens moved, seconded by Butcher, to approve the agenda as published. Motion carried 5-0. V. MINUTES A. CITY COUNCIL MEETING HELD TUESDAY,NOVEMBER 6,2001 Case made a correction on page 7, the second line of the second paragraph, which should read". . .members of the Board got their information packets too late . . ." MOTION: Butcher moved, seconded by Case, to approve the minutes of the City Council Meeting held Tuesday, November 6, 2001, as published and amended. Motion carried 5-0. CITY COUNCIL MINUTES November 20,2001 Page 2 VI. CONSENT CALENDAR A. ADOPT RESOLUTION NO. 2001-170 APPROVING FINAL PLAT OF SUNNYBROOK PLACE B. ADOPT RESOLUTION NO. 2001-171 AUTHORIZING AMENDMENT OF PROJECT MANAGEMENT AGREEMENT FOR SUMMIT PLACE SENIOR HOUSING DEVELOPMENT C. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH SEH INC. FOR DESIGN AND CONSTRUCTION SERVICES FOR EDEN PRAIRIE ROAD SOUTH OF RILEY CREEK,I.C. 5537 D. APPROVE SECOND AMENDMENT TO PURCHASE AGREEMENT WITH WOODLAKE SANITARY SERVICE, INC., FOR ACQUISITION OF THE PARKS AND PUBLIC WORKS STORAGE FACILITY SITE E. APPROVE THE PROPOSED CONTRACT FOR SRF TO PREPARE AN UPDATE TO THE COMPREHENSIVE PARK, OPEN SPACE, TRAIL AND RECREATION PLAN Jullie explained, regarding Item E, that the City has just received the final contract agreement from SRF, and the Council will be approving that agreement. MOTION: Tyra-Lukens moved, seconded by Mosman, to approve Items A-E on the Consent Calendar. Motion carried 5-0. VII. PUBLIC HEARINGS/MEETINGS A. SHADY VIEW ADDITION by First Industrial L.P. Request for Planned Unit Development Concept Review on 5.14 acres, Planned Unit Development District Review with waivers on 5.14 acres, Zoning District Amendment within the I-2 Zoning District on 5.14 acres, and Preliminary Plat on 5.14 acres into 2 lots. Location: 7152-7198 Shady Oak Road. (Resolution No. 2001-172 for PUD Concept Amendment, Ordinance for PUD District Review and Zoning Amendment and Resolution No. 2001-173 for Preliminary Plat) Jullie said official notice of this public hearing was published in the November 8, 2001,Eden Prairie News and was sent to 10 property owners. Franzen explained that this is the subdivision of 5.14 acres into two lots so that two existing buildings can be sold separately. This was before the Community Planning Board on November 13, 2001, and they voted 7-0 to recommend approval of the project. Mayor Harris asked if anyone wished to address the Council. No one did. CITY COUNCIL MINUTES November 20,2001 Page 3 MOTION: Butcher moved, seconded by Case, to close the public hearing and approve I"Reading of the Ordinance for Zoning District Amendment within the I- 2 District on 5.14 acres; and adopt Resolution No. 2001-172 for PUD Concept Amendment; and adopt Resolution No. 2001-173 for Preliminary Plat on 5.14 acres into two lots; and direct Staff to prepare a Developer's Agreement incorporating Commission and Staff recommendations. Motion carried 5-0. B. HENNEPIN VILLAGE by The Pemtom Land Company. Request for Comprehensive Guide Plan Change from Office to Medium Density Residential on 17.7 acres and from Office to Neighborhood Commercial on 4.5 acres, and from Medium Density Residential to Office on .7 acres, Planned Unit Development Concept Review on 249 acres, Planned Unit Development District Review with waivers on 28.3 acres, Zoning District Change from Rural to R1-9.5 on 10.3 acres and from Rural to RM- 6.5 on 18 acres, Site Plan Review in the RM-6.5 District on 18 acres, and Preliminary Plat on 28.5 acres into 125 lots and 2 outlots. Location: South of Flying Cloud Airport, east of Eden Prairie Road, and north of Highway 212. (Resolution No. 2001-174 for Comprehensive Guide Plan Change, Resolution No. 2001-175 for PUD Concept Review, Ordinance for PUD District Review and Zoning Change, and Resolution No. 2001-176 for Preliminary Plat) Jullie said official notice of this public hearing was published in the November 8, 2001,Eden Prairie News and was sent to 45 property owners. Dan Herbst, with The Pemtom Land Company, said the idea for this project came from the City's past, inspiring simple, functional farmstead architecture, similar to the vintage homes in the area. A historic architectural theme is proposed for both the single-family homes and the townhouses. Dwight Jellie, an engineer with Westwood Professional Services, said that topography, soils, an archeological survey, historical and Native American issues, were all considered in this project. Herbst said the location of the site is near Flying Cloud Airport and the Riley Creek area. Pemtom has been concerned about the archeological features, the location of Riley Creek and the steep slopes on the property. Hennepin Village includes four sites with 184 single-family homes, 511 townhouses, 4.5 acres of neighborhood commercial, 71 acres of office, and 71 acres of open space. There will be areas on the project to shop, live and work, without having to travel long distances. The single-family homes along Eden Prairie Road would be screened from view, and there would be no garages facing the road. The streetscape, driveways and garages would be to the rear of the houses. The walkout townhomes are the only ones having garages to the front. The pedestrian part of the plan is also critical. Pemtom proposes more than 4.28 miles of sidewalks and 4.9 miles of trails, which would connect the Riley Creek system with Eden Prairie Road and Spring Road. This would tie in with the trail system down to the Minnesota River. CITY COUNCIL MINUTES November 20,2001 Page 4 Herbst asked for concept approval, specifically for Site A, where there will be two housing types — single-family and walkout townhomes. In addition, he asked for approval of the preliminary plat, preliminary grading and landscaping plan. This site will have 125 homes on 30 acres. They want to create unique features in each neighborhood. Herbst said the plan contributes trails, open space and amenities to the City. Pemtom will be providing a total of about 73 acres of private and public open green space to Eden Prairie. Clustering allows for more green space, less grading and removal of fewer trees. Herbst said the Community Planning Board was concerned that the property line between the prairie bluff land and the private housing be physically defined. Pemtom is planning to grade the entire system down three-to five feet and a berm, so there would be definition between public and private land. Herbst said the Guide Plan change from office to commercial and residential is extremely important in order to have adequate open space and amenities. The Planning Board was also concerned about clear definition between Site A and the east-west runway of Flying Cloud. MAC has provided a safety zone and screening, and the City will be providing a crossover road between Eden Prairie Road and Spring Road. The City staff and Planning Board did not want to change 17.7 acres from office to residential because of its proximity to the airport. Most housing would be built away from the perimeter of the property, and the noise levels from aircraft are less than some other locations in the City. He has met twice with MAC representatives and with residents, and has not received any negative comments from MAC. Herbst acknowledged the housing does not meet the City's affordable housing goals. However, he said this is a unique opportunity to put townhomes $190,000 to $250,000 range on some of the most unique property in the City. He cannot build less expensive homes because of the cost of land. The other concern the City has is the loss of potential jobs by converting the Guide Plan on 17.7 acres from office to housing. However, he believes the City is extremely strong on jobs and obviously needs more homes than jobs. He also believed that adding a commercial area would be a great amenity to those living there. The City wants to construct a connector road with the first phase and to charge the cost to the homes built there. Herbst believed that would be too much of a burden to the homeowners on Site A. He suggested that the City, the developer and the neighbors work together to resolve this issue. The impact of a crossover road would be substantial. The original allocation of that road to Sites A and B is $1,950 per lot on lot development costs. If they have to build a crossover road with Site A, it would raise the cost of each lot by $5,000 and raise the price of each home by $11,000- $12,000. If they were to take out the 17 acres to change the Guide Plan, it would eliminate 118 homes and would add $9,100 to each home. Adding these together, reducing the density and charging the entire cost of the crossover road to Site A, would raise the price of each home in Site A to $20,800. He asked the City to consider that. CITY COUNCIL MINUTES November 20,2001 Page 5 Case asked if the donation of land is in lieu of cash park fees. Herbst replied no, Pemtom would do both. Franzen said the Planning Board voted for six of the elements in the project. They voted against the Guide Plan change from office to medium-density residential on 17.7 acres in Site C. The City wondered how such a change would affect discussions with MAC. However, since the Planning Board meeting, the City has received a letter from MAC, which indicated they are not in opposition to the Guide Plan change. As a result, staff recommended approval of the Guide Plan change from office to medium-density residential. Mayor Harris asked if anyone wanted to speak to the Council on this project. Dean Edstrom, 10133 Eden Prairie Road, said he would like to preserve the wilderness area as well as possible. The bluffs would be affected by this development. He expressed concern on the issues of environmental density, airport and safety and transportation and traffic. The City is on record as recognizing the environmental sensitivity of the area. The City should consider something with less density, such as single-family homes on five-acre lots. The airport is likely to be expanded and, if that happens, there will be more safety issues with this property. Regarding traffic concerns, he didn't believe the proposal adequately addressed the transportation problem. He would like to see traffic go on County Road 4 to reach Highway 212, not on Eden Prairie Road. Existing Eden Prairie Road should be linked to existing Spring Road. It appeared from the plan that County Road 4 is to be realigned along proposed Charlson Road. He would not want this proposal adopted without having Spring Road become the main north- south artery. He recommended deferring the project until further study can be made of all the issues. MOTION: Case moved, seconded by Mosman, to close the public hearing. Motion carried 5-0. Butcher stated this is a plan for a community that is about neighborhoods and incorporation of natural landscapes that fit into the topography and also into the historical aspects of the site. It is the most complex project she has seen since becoming a member of the Council. It is an example of sustainable development, where housing is clustered in an area in order to maintain the natural resources so everybody can enjoy them. She liked having the neighborhood convenience area because there are no places to shop close to that area. However, she would like to see the commercial area designed with the architectural details of Hennepin Village. More housing is needed in this region. The whole region will be growing by 650,000 people over the next 15 years. This is a good way to meet that need. Butcher said overall, this project fits well into the growth of the southwest portion of the City by using density transfer to utilize open space for all to enjoy. However, the location of the townhouses in proximity to the airport is a concern and may require special treatment of this site. Also, private landowners need to be cautioned against encroaching on the natural areas. CITY COUNCIL MINUTES November 20,2001 Page 6 Mayor Harris said the plan was delightful. It reflects many of the concepts the City has for this area. The historical, cultural and archeological resources are preserved, and 70 acres of open space would be donated to the City. It also addresses the need for a spectrum of housing and uses a unique style of architecture with a well- thought-out design. She was also concerned about proximity to the airport, which requires some discussion on developing housing in that area. Case said he wished to respond to the issues raised by Dean Edstrom. On the issue of environmental density, Case believed the City would not have 70 acres of dedicated land without density transfer. On the airport safety issue, that is a no-win issue and has always been difficult to answer. With regard to traffic, townhomes do not generate as many trips as single-family homes do. Case said the City needs more small commercial areas, which came out of the Senior Issues Task Force. In years past, the Council has talked about wanting to have neighborhoods like those provided in this project. The 17.7 acres of residential in Site C that the Planning Board debated does not directly pertain to the airport discussion issue. In former discussion the Council has discovered that this area is outside the current or future 60 dBA DNL contour line. Case recommended that staff meet with the developer before the second reading to review any additional noise-abatement ideas on how all the homes in this development could be made more soundproof. Case said he liked this project because it has new homes that have an old look,with the ambiance of front porches and gables. He also liked the trails and open spaces. This development is what the Council wanted to see in the southwest corner of the City. Tyra-Lukens said she believed this is a beautiful neighborhood, building a community within the City. She liked the effort to work with the geography of the site regarding architecture. She asked what type of architectural controls Pemtom will have over the builders to make sure it looks this way and the price point. Herbst replied they will incorporate these requirements into their declaration of covenants and architectural documents to ensure that the houses will look the way they want them to look. They are working with Mike Franzen on a diversity plan so that identical homes are not adjacent or across from one another. Part of their next step with the City would be to bring back the type of architecture and covenant articles for approval. He said he doesn't have as much control of the price point. Tyra-Lukens asked Dietz about the issue of the crossover road, where it will go in and who pays for it. Dietz replied the crossover road is a very important element both in terms of concept and also in terms of traffic. The City wants to make certain it happens and that is why they want to put it into the first phase of the project, concurrent with the development of Site A. He didn't necessarily expect to put the cost burden just against Site A. It could be shared with Site B. The City wants to build the crossover road during the early part of the project. City staff and the developer could look into ways to make sure it is built at a certain time. CITY COUNCIL MINUTES November 20,2001 Page 7 Perhaps it could be handled privately between the builder and the developer. Tyra-Lukens asked Dietz to address the location of the crossover road. Dietz replied he believed it would be better to have it farther south along Eden Prairie Road to cross over to Spring Road. When he met with Herbst and his consultants, they said chose the location farther north. There is the possibility the connecting road would have to be constructed with a 10 percent grade rather than 8 percent, which would be preferable. Case asked if Eden Prairie Road would be closed off at Highway 212 at some time, and how would they keep cut-through traffic from occurring? Dietz said they believed Spring Road will continue to be County Road 4, but realignment of Eden Prairie Road over to Spring Road is being done as part of this development process, and those who buy property there need to pay for it in order for it to be built. The City doesn't expect proposed Charlson Road to take the place of Spring Road as County Road 4. Mayor Harris asked for suggestions to ensure the cost would be shared between Sites A and B. Dietz replied all of Site A is being built without the connection,but as a cul de sac with Spring Road as one entrance point. He would like to see the road connection under construction before Site A is completed. If nothing else, the corridor should be graded. There may be a way to phase the work. He hoped there would be some way to deal with it privately and to recognize that Site B would also benefit from the road. However, the City would consider working out a special assessment agreement that required the road to be built when Site A is 50 percent constructed. Tyra-Lukens said that could be included in Council's conditions. She believed it was very important to have a crossover road built there. Mosman said she was pleased that Pemtom will be using an infiltration system rather than just NURP ponds, which is a more desirable way to handle storm runoff, because the area has steep slopes that could easily erode. The clustering of homes is desirable rather than five-acre lots,because the clustered homes do protect easily erodible land and vegetation. She asked Dietz when Charlson Road will be built to serve the potential residential and commercial areas. Dietz said the City has not reached agreement with MAC in terms of getting right of entry to construct the project. The City has envisioned the Charlson area infrastructure improvements would be built in two phases. The first phase would build Eden Prairie Road to Riley Creek and around the southwest corner of Grace Church. The second phase would be everything else. Herbst has discussed this with him and said his goal is to get Site A constructed, so he would need the first phase of roadway improvements plus some of the second phase. The first phase is designed, the second phase is partially designed. It will be nearly impossible as a City project to get everything in place to begin work on Site A next spring. Perhaps there could be some cooperative effort between the City and Pemtom. That would be the desirable way to move this project along. CITY COUNCEL MINUTES November 20,2001 Page 8 Mosman said she believed the commercial part of the project is vital to the success of the whole project. Regarding the airport noise, she contacted the control chief at the airport tower and was told the planes would not be flying over this property when they are taking off. They make a curve to the south away from residential elements. They couldn't curve and come back over this property. Mosman asked where the Dornkemper house is located. Herbst said the residence is on the right side as you enter Settler's Ridge off Pioneer Trail. They have cut into the siding and found 15-inch hand-hewn logs in great condition. He had John Gertz look at the house several times and a log restoration expert. One option is to leave the house where it is and restore it in place. Mr. Gertz said that would be the best thing to do. Herbst would have to buy the land back. It would eliminate a couple of townhomes from the plan. They could give it to the City and make it a permanent feature of the City. The other is to move it,perhaps to the neighborhood convenience center where people could look at it. However, he believed it would probably be best to keep the house where it is. Butcher said it is a good idea to leave the house in place. She thanked Herbst for caring about preserving the house. She wondered if it might be prudent to protect the City as well as the developer with regard to notifying potential buyers that the houses are near the airport. Rosow replied a notice is sufficient. That is usually the developer's responsibility to give to the builders and realtors. He recommended directing the developer to attach some notification to the initial sale documents. He recommended staff have this discussion with the developer before the 2"a Reading. Rosow said he would like an answer from Herbst about the timing of the road connection. It is critical that the City knows it will be built. Herbst said he realized the road is important to the area and he would work out something with City staff, perhaps having a bond. He had no problem with the other issue that buyers be notified about proximity to the airport. That would be put in the declaration of covenants, and he would have buyers sign a disclosure statement before they buy the home. Franzen recommended the Developer's Agreement include specific architectural features in Site A for the townhomes. To assure special architectural features for the houses, he recommended having a manual that would list what the architectural features should include. Mosman noted the number of acres in the motion do not add up to the total acres in the development. Franzen said he would look into that. The numbers on the plan are correct. MOTION: Case moved, seconded by Butcher, adopt Resolution No.2001-174 for Comprehensive Guide Plan Change from Office to Medium Density Residential on 17.7 acres; and from Office to Neighborhood Commercial on 4.5 acres, and from Medium Density Residential to Office on .7 acres; and adopt Resolution No. 2001- CITY COUNCIL MINUTES November 20,2001 Page 9 175 for Planned Unit Development Concept Review on 246.5 acres and approve lst Reading of the Ordinance for Planned Unit Development District Review with waivers and Zoning District Change from Rural to R1-9.5 on 10.3 acres and from Rural to RM-6.5 on 18 acres; and adopt Resolution No. 2001-176 for Preliminary Plat on 28.3 acres into 125 lots and 2 outlots; and direct Staff to prepare a Developer's Agreement incorporating Staff and Board recommendations and the following Council conditions: (1) constructing for sound mitigation, (2) airport disclosure, and(3) crossover road to be worked out with Staff. Motion carried 5-0. C. CHARLSON, BROWN AND STANDAL AUAR by Charlson, Brown, and Standal. The Alternative Urban Area-wide Review (AUAR) is an environmental review to consider an overall development scenario for a large site, rather than incremental impacts of individual projects or phases of one large project over a period of time. This is a comprehensive review of drainage, wetland, traffic, water quality, and historic, cultural and natural resources on 318 acres. The AUAR is based on the existing guide plan. Location: South of Flying Cloud Airport, east of Eden Prairie Road, and north of Highway 212. (Resolution No. 2001-177 for Alternative Urban Area Review) Jullie said official notice of this public hearing was published in the November 8, 2001 Eden Prairie News and was sent to 45 property owners. Franzen said the initial reason for doing an environmental review was because of the anticipated construction of Charlson Road and Eden Prairie Road. Since there is adjoining property to this road, staff thought it would be a good idea to include both and to examine them at the same time. This is a comprehensive review of environmental impacts, including traffic, drainage, wetland, water quality, historic, cultural and natural resources. The Community Planning Board voted 7-0 to recommend approval of the project at its November 13, 2001 meeting. Mayor Harris asked if anyone wished to address the Council. Dean Edstrom, 10133 Eden Prairie Road, asked for clarification on whether Charlson Road or Spring Road would be designated County Road 4. The depiction of the Charlson property included in the documents indicates Charlson Road would be the future County Road 4. Dietz replied Spring Road would continue to be County Road 4. This is a conflict within the document and should be clarified. Jeff Strate, 15021 Summerhill Drive, had two questions about the AUAR. If the office development proposed along Charlson Road comes in, will it be necessary to have an Environmental Assessment Worksheet (EAW) prepared by the developer or will the AUAR be sufficient? Will this AUAR be amended in time in case more things are discovered in the future about this area that are not known at present? CITY COUNCIL NIINUTES November 20,2001 Page 10 Franzen replied the AUAR does address future land use in this area. The office area is also consistent with the amount and location of office in the Guide Plan, so would not need to be addressed by a separate document. It depends on whether the change would be a material change to the document. If so, the AUAR would have to be redistributed to all agencies in the review list. MOTION: Mosman moved, seconded by Butcher, to close the public hearing and adopt Resolution No. 2001-177 for Alternative Urban Area Review. Case said he would like to have Mr. Dietz explain the discrepancy in the location of County Road 4. Dietz replied he was unaware of any change in designation of County Road 4 from Spring Road to Charlson Road. Hennepin County would have to review the plans at some point. His understanding was that Spring Road would remain County Road 4. Dean Edstrom was correct that the plan shows Charlson Road as the future County Road 4. He said he would look into that. Case said he wanted Council's resolution to be contingent on correcting that mistake and with the understanding that Spring Road will remain County Road 4. Tyra-Lukens wondered if Charlson Road were designated County Road 4, would Hennepin County participate in paying for its construction. Dietz replied there was no participation in realignment of County Road 4. Tyra-Lukens said that means there would be no incentive for the County to designate Charlson Road as County Road 4. Motion carried 5-0. VIH. PAYMENT OF CLAIMS MOTION: Case moved, seconded by Mosman, to approve Payment of Claims. The motion was approved on a roll call vote, with Butcher, Case, Mosman, Tyra-Lukens and Harris voting"aye." IX. ORDINANCES AND RESOLUTIONS X. PETITIONS,REQUESTS AND COMMUNICATIONS A. Discussion Regarding Possible Increase from 5-to 7-Member Council Rosow said the State Statutes under which the City is organized allow the City to put to a vote of the residents the question on whether the Council should be increased from five to seven members. That would involve electing two additional members to the Council. The process to follow is for the Council to pass an ordinance that spells out the question, and in addition has to specify the election that would accomplish the change. The next regular City election is in November 2002,when the question of increasing the number of members would be voted on. If approved, one additional CITY COUNCIL MINUTES November 20,2001 Page 11 Councilmember would be elected in November 2003, for a one-year term, and one would be elected for a three-year term. Rosow said he has discussed with the City Clerk how voting would be done in 2003, an off-election year, and she stated this would involve combining with school district elections in November or a special election could be held earlier in 2003. Mayor Harris said her original reason for proposing this is because of the increasing growth in diversity of Eden Prairie. It would be an opportunity for more residents to participate on the Council. Tyra-Lukens asked Rosow if the State Statutes only allow the City to go from five to seven members. Rosow said a Statutory City, such as Eden Prairie, would only be allowed to go from five to seven members. Butcher said she really supported going from five to seven members because, in the past election, there was a demonstrated interest in serving on the Council. There is a renewed interest in citizenship in this country, which is a positive thing. The Council should increase to allow more people to be involved. She believed it would be confusing to add the City's elections to the school district elections; so it would be better to have a separate, special election. Mosman said she was trying to get specific feedback from various people on this question, from the League of Minnesota Cities and elected officials from other cities and their staffs. She was surprised at the amount of negative feedback she received from individuals. The Council should really consider carefully if this would be the right thing to do for the City and if there are any other options. Some of the negative things she heard were that more Councilmembers mean less responsibility is taken by each member to be informed about issues, there is more cost to the city, and more staff time taken away from other work to take care of requests from Councilmembers. There is a concern that when there are more members they would start representing special interests in the city. Tyra-Lukens said she believed there would be some merit in looking at this issue. She proposed forming a citizens'group to look into this. At a time when the City is trying to reign in the cost of government, an election could wait until it is time for the regular election rather than holding a special election. A task force could look into whether there is a need for a change, the direct and indirect costs, and what the City would gain. They could also find out what the experience of other cities has been that have gone from five to seven members, and whether any have gone back from seven to five. They could also look at the question of Council compensation. Case said Council has not had a well-documented study of this yet, and he believed they were getting ahead of themselves. However, he believed it is time to reevaluate the City's structure. He has never heard anything from citizens about the size of the Council, but he has heard some issues about whether this is the best City structure. There should be a discussion about cities that have chosen to be Charter cities. He agreed with establishing a task force and said there are many CITY COUNCIL MINUTES November 20,2001 Page 12 well-qualified citizens who can serve on it. The Council should have the establishment of a task force as a Workshop topic in January or February, or have staff develop a charter for a task force for discussion by the Council Mayor Harris said a study by a task force to look into the pros and cons is a good idea. She asked staff to determine what the task force's mandate would be. After this study, the Council can decide whether or not it wants to expand the size of the Council. MOTION: Case moved, seconded by Tyra-Lukens, to direct staff to bring to the Council, in January or February 2002, a charter for a task force to discuss the issue of increasing the size of the Council and candidates who might serve on it, along with a possible time table for reporting to the Council. Motion carried 5-0. XI. REPORTS OF ADVISORY BOARDS & COMMISSIONS XII. APPOINTMENTS XIII. REPORTS OF OFFICERS A. REPORTS OF COUNCILMEMBERS B. REPORT OF CITY MANAGER C. REPORT OF PARKS AND RECREATION SERVICES DIRECTOR D. REPORT OF COMMUNITY DEVELOPMENT AND FINANCIAL SERVICES DIRECTOR 1. 2002/2003 Budget Update Uram said on December 4 a public hearing will be held by the City Council on the City's 2002/2003 Budget. Staff has identified two issues to discuss as part of the budget process. These are (1) the overall tax impacts and Levy Limits, and(2) Capital Improvements. In considering the City's property tax levy, one of the items the Council considers is the impact on the median value home. For 2002, the median value home is $230,600. For all taxing jurisdictions, the net tax on the median value home is expected to decrease from $3,686 to $2,816, or a reduction of 23.89 percent. The City's portion of the tax is expected to increase from $751 to $836, or 11.3 percent. The net tax on the median value home is only increased by$7. For all taxing jurisdictions, a decrease in the levy of$215,000 impacts the median value home by only two-tenths of one percent. At the September 18 CIP Workshop, the Council reviewed the 2002-2007 C1P. To fund capital projects through 2012, an annual revenue stream of CITY COUNCIL NIINUTES November 20,2001 Page 13 $1.2 million is necessary. This dedicated revenue source includes a transfer of$700,000 from the liquor enterprise and a $500,000 general fund levy. The current budget reflects a transfer of$1.1 million to the CIP. In addition to these projects, staff identified between $33 million and $44 million of unfunded capital projects. The recommendation to increase the levy was to begin to provide funding for these projects. Case said the Governor claims cities are taking advantage of taxes going down. He asked if other cities are trying to get money back through increasing the levy limits. Uram said approximately 50 percent of cities said they were going to levy the maximum amount and 50 percent of cities said they would levy less. Case asked if the Council will be looking at the unfunded capital projects. Uram said there are$33 million to $44 million of unfunded projects beyond what the City had provided money for. Those are significant costs to go back to the voters for a referendum. They include a water park, third sheet of ice, youth athletic fields, and a golf course. Case said the City has heard that people want them and the City could ask people to vote for them through a referendum. 2. Firefighters Relief Association Pension Benefit Plan Discussion Uram explained he has been working with the Board of Trustees over the past year regarding a pension increase. In 2000 the State Legislature changed the maximum pension cap, which would allow a pension increase of$4 per month per year for the next four years. Currently retired Eden Prairie fire fighters receive $40 per month per year of service. This amount has been in effect since 1998,when it was increased from$30 to $40. The Board of Trustees has been working on a pension plan that would incorporate a performance-based benefit increase into the Eden Prairie Fire Fighter Relief Association bylaws. The trustees expect to present this plan to the City Council early next year for review and approval. Prior to that, the trustees have requested the Council approve a pension increase from the current $40 to $44 starting on January 1, 2002. A formal request will be made to amend the bylaws at the December 18 City Council meeting. There will be no impact to the City budget because of this increase. Just using the rate of inflation over the past four years covers that$4 increase. 3. Sister City Program Uram showed a video about Daquikhing, a city in China that is a Sister City of Hennepin County. Staff has been working with Commissioner Johnson's office and Hennepin County to explore the possibility of Eden Prairie establishing a Sister City relationship with a city in China. Uram pointed out that at the time President Nixon went to China, he recognized China's importance in the future world economy. It is believed CITY COUNCIL MINUTES November 20,2001 Page 14 China's economy will be the largest in the world by 2030. As trading partners, the United States is third, behind Taiwan and Japan. This indicates what a great opportunity there is now to try to make a difference in what the future of Eden Prairie will be. With Commissioner Johnson's support and Mayor Harris's direction, Eden Prairie can establish a Sister City in China. It is a long-term process and may take two years to develop. Uram said he would like to proceed with doing that. Lisa Woo, the City's Information Technology Coordinator,was born and raised in China and is a good resource for the City. Butcher asked if there is a role for Habitat for Technology in establishing a Sister City. Uram said the growth in Eden Prairie has come largely from technology. That organization was formed last year and could be a partner in this. Jim Smiley, one of the organizers, spoke to the Council in recent months about Habitat for Technology. Uram said he and Mr. Smiley are both on the Board of Directors. The group is geared toward everything that has to do with computers. With their connections, experience and knowledge,they bring a level of expertise to the Sister City program. Butcher said she supported this program, and it positions the City for the future. Tyra-Lukens said a cost to Eden Prairie would probably be the point person in this program,but it would be a greater cost not to get involved. Case said the Sister City program emphasizes partnerships where the cost can be spread across a number of organizations. Eden Prairie businesses will be the ones to benefit. Mayor Harris said Governor Ventura is going to China in June to talk about trade. The Sister City program will take a couple of years to put together. The cost cannot be projected at this time,but it will not be excessive. 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 1. Report on City/MAC Discussions Rosow said City staff has been engaged in discussions with MAC's staff regarding expansion of the Flying Cloud Airport, Ordinance 51 and related issues on and around the airport. CITY COUNCIL MINUTES November 20,2001 Page 15 Two of the seven meetings that have been held were attended by Mayor Harris and Case and two commissioners from MAC. In addition, he met five times with staff from MAC involving all of their top people. The meetings have gone very well. They have been exploring a variety of options to amend Ordinance 51 that would keep in place the restrictions to protect the community. The City's goals are to: (1) Ensure the community is protected from adverse noise impacts; (2) Maintain the character of the airport as it currently is operating; therefore also maintaining the character of the community; (3) Ensure any agreement we enter into would be something that would contain elements that were enforceable by the City. Rosow said to date the discussions have been very fruitful. They have been trying to reach agreement on operations at the airport, adverse impacts to the community, and whether they are at a point where they can report back as to specifics. There are some very difficult issues to confront, specifically enforceability. In fact, there is a third player not taking part in the discussions, which is the FAA. Whatever the two sides do, they are aware of the fact the FAA has an important role to play in any restrictions on the airport, so that is a very difficult issue. The City has had wonderful cooperation from MAC's staff at the highest levels working on these issues. There has not been a situation where they have to ask someone else for a decision; they can make decisions right then. Relationships between the two entities has been strained in the past and discussions we're trying to overcome those obstacles, as well as Ordinance 51. XIV. OTHER BUSINESS XV. ADJOURNMENT MOTION: Tyra-Lukens moved, seconded by Case, to adjourn the meeting. Motion carried 5-0. Mayor Harris adjourned the meeting at 9:50 p.m.