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City Council - 12/03/1991 EDEN PRAIRIE CITY COUNCIL • APPROVED MINUTES TIME: 8:00 PM Tuesday, December 3, 1991 LOCATION: City Hall Council Chambers 7600 Executive Drive COUNCILMEMBERS: Mayor Douglas Tenpas, Richard Anderson, Jean Harris, H. Martin Jessen and Patricia Pidcock CITY COUNCIL STAFF: City Manager Carl J. Jullie, Assistant to the City Manager Craig Dawson, City Attorney Roger Pauly, Finance Director John D. Frane, Director of Planning Chris Enger, Director of Parks, Recreation & Natural Resources Robert Lambert, Director of Public Works Gene Dietz, and Recording Secretary Roberta Wick PLEDGE OF ALLEGIANCE ROLL CALL All Councilmembers present. I. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS MOTION • Anderson moved, seconded by Pidcock, to approve the agenda. Jullie requested that the following items be added to III. Consent Calendar: (D) Eden Prairie Auto Center by Accent Real Estate, Ltd. 2nd Reading of Ordinance 31-91-PUD-10-91 and Developers Agreement; (E) Resolution Supporting Efforts to Reduce Pollution of the Minnesota River (Resolution No. 91-253). Jullie also requested that two items be added to X.C. Report of Director of Public Works: (2) Contract for Purchase of the Eaton Corporation Building for Public Works Facility; (3) Proposal from Summit Environmental Engineering & Consulting, Inc. for services regarding the Purgatory Creek Wetlands Issue. Anderson requested the additions of the following items under X.A. Reports of Councilmembers: (1) Relationship Between Staff, Council and Mayor; (2) Snow Plowing. Tenpas requested the addition of (3) Fire Fighters Relief Association;- (4) Traffic Signal at Prairie Center Drive and Singletree Lane; (5) Charity Event. Pidcock requested the addition of (6) Street Light on Harmony Place. Agenda approved as amended 5-0. • Eden Prairie 2 December 3, 1991 • City Council Minutes Approved II. MINUTES A. City Counctf Meeting held Tuesday, November 19, 1991 MOTION Pidcock moved, second by Anderson, to approve the minutes from the City Council Meeting held November 19, 1991. Moron approved 5-0. Ill. CONSENT CALENDAR A. Clerk's License List B. SOUTHWEST SUBURBAN CABLE COMMISSION - 1991 CATV Relief extension - 2nd Reading of Ordinance No. 37-91 and CATV Relief Ordinance Amendment, Ordinance No. 57-88, Providing for the Continuance of Certain Aspects of the CATV Relief Ordinance, As Amended, and Restructuring the Manner in which Local Programming was Funded; Approval of Restated Performance Agreement; Approval of Consent Agreement and Guaranty of Performance • C. Approval of South Hennepin Regional Planning Agency Joint Powers Agreement D. EDEN PRAIRIE AUTO CENTER by Accent Real Estate, Ltd. 2nd Reading of Ordinance 31-91-PUD-10-91, Zoning District Amendment within the C-Reg-Ser District on 16.2 acres; Approval of Developer's Agreement; Adoption of Resolution 91-262, Approving Summary and Ordering Publication of Ordinance 31-91-PUD-10-91; Adoption of Resolution 91- 226, Site Plan Review on 16.2 acres for development of a 158,000 square-foot automobile dealership to be known as Eden Prairie Auto Center. Location: Southeast corner of Valley View Road and Plaza Drive. (Ordinance 31-91-PUD-10-91, Zoning District Amendment; Resolution 91-262, Summary and Publication; Resolution 91-226, Site Plan Review) E. Resolution Supporting Efforts to Reduce Pollution of the Minnesota River. (Resolution 91-263) MOTION Pidcock moved, seconded by Anderson, to approve the Consent Calendar. Jullie called Council attention to a memo dated December 3, 1991 regarding the Eden Prairie Auto Center and stated that the vehicular display would include a variety of vehicles in addition to automobiles. • He also pointed out there had been a change in the enforcement conditions which were utilized in the prior Eden Prairie Ford agreement. Eden Prairie 3 December 3, 1991 • City Council Minutes Approved He said assurances from the developer had been received that there would be compliance with City Code. He also said that the Welsh-Sierra Limited Partnership (Bingo Hall at the Eden Prairie Legion) should be omitted from the Clerk's License Application List because City Code precluded the issuance of such license to a private, for-profit corporation. Consent calendar as amended approved 5-0. IV. PUBLIC HEARINGS A. GOLF POINTE by Associated Investments, Inc. Request for Comprehensive Guide Plan Change from Medium-Density Residential to Low-Density Residential on 2.24 acres, Zoning District Change from Rural to R1-13.5 on 2.24 acres with variances to be reviewed by the Board of Appeals, Preliminary Plat of 2.24 acres into 5 single-family lots. Location: South of Valley View Road east of the abandoned Chicago Northwestern Railway (Resolution No. 91-227 - Amending the Comprehensive Municipal Plan; Ordinance No. 29-91 - Rezoning from Rural to R1-13.5; and Resolution No. 91-259 Approving the Preliminary Plat) • Jullie said notice for the public hearing was properly published in the November 21, 1991 issue of the Eden Prairie News and mailed to surrounding property owners. Tom Robertson, representing Associated Investments, Inc., explained the details of the project by the use of maps and drawings. He pointed out that the plan was a change from the original development proposal for townhouses approved in April 1988. The reason for the change was that the demand for townhouses was down, and therefore it had been decided to propose five single- family houses on the property. Enger said the Planning Commission had recommended approval of the item at its October 28, 1991 meeting on a 4-0 vote subject to the recommendations of the staff reports of October 4 and October 25, 1991. Lambert said the Parks, Recreation and Natural Resources Commission recommended approval of the project at its November 18, 1991 meeting on a 5-0 vote. Anderson said he believed there was a possibility of building a trail in the area and requested that staff investigate gaining public access to a trail in the creek area in the development. • Jessen asked Pauly what the City's liability was due to errant golf balls with the approval of a development close to a golf course. Eden Prairie 4 December 3, 1991 . City Council Minutes Approved Pauly said the Cite would not -incur any additional liability in this case because he believed the development was a reasonable distance from the golf course. There unere no comments from the audience. MOTION Pidcock moved, second by Harris, to close the public hearing, adopt Resolution No. 91-227 to Amend the Comprehensive Municipal Plan, and approve first reading of Ordinance No. 29-91 for Rezoning. Anderson asked Pauly if the City had any liability in allowing the development close to a floodplain area. Pauly said approval was appropriate on any areas outside of the floodplain area and in his opinion the City would not incur any liability for this reason. Motion approved 5-0. MOTION Pidcock moved adoption of Resolution No. 91-259 to approve the • preliminary plat and direct staff to prepare a development agreement incorporating commission and staff recommendations. Seconded by Harris. Motion approved 5-0. B. RICE MARSH LAKE PUD by the Pemtom Company for a Planned Unit Development Concept Review on 129.8 acres, Planned Unit Development District Review on 129.8 acres with waivers, Zonis District Change from Rural to R1-9 on 24.8 acres and from Rural to R1-13.5 on 105 acres, Site Plan Review, and Preliminary Platting of 129.8 acres into 204 single family lots, 3 outlots, and road right-of- way for construction of a residential development to be known as Rice Marsh Lake P.U.D. Location: North of Rice Marsh Lake, just east of Chanhassen-Eden Prairie city limits (Resolution No. 91-245 - Approving the PUD Planned Unit Development Concept Amendment; Ordinance No. 31-91-PUD-11-91 - PUD District and Rezoning frm Rural to R1-9.5 and R1-13.5; and Resolution No. 91-246 - Approving the Preliminary Plat) 3ullie said notice for this public hearing was properly published in the Eden Prairie News and mailed to surrounding property owners. Dan Herbst, representing The Pemtom Company, explained the project with the use of maps and drawings. He pointed out that this was the George Schroers farm, west of Dell Road and South of Highway 5. He said the proposal included three distinct neighborhoods with separate entrances. The overall development would be called • Winfield, with three neighborhoods called Winfield North with R1-9.5 Eden Prairie 5 Decembenr .3, 1991 • City Council Minutes AIpproved lots, Winfield Meadows, and Winfield on the Lake in which the. properties would be next to the lake. The plan had 19 fewen7 Ilots than the proposal which had been previously approved. He s�did there would be eight ponds on the site which would be used' ff+ar sedimentation purposes and treatment of storm water, and whiidh would also be amenities to the site. There would be a sidewallk and trail system in the development. There would be approximately 32 acres dedicated to the City. He said the plan was to develop tare area in four phases. The proponent also requested approval.o f .-a limited early grading permit, subject to approval from the Wa#barshed District, because of the unknowns the new agency rules beinj made to regulate wetlands. He believed a early grading permit couild possibly avoid a year or year-and-a-half moratorium in obtaining proper permits for development near wetlands. Enger said the Planning Commission reviewed the item at its November 4, 1991 meeting and recommended approval on a 4-L'-4D vote, with Norman voting Nay because she was concerned about the: shoreline lot variances. The Planning Commission's approval vw.as subject to the recommendations of the staff report dated Novesmber 1, 1991 and the plans submitted by the proponent dated Novembx+-�,r 1, 1991. Enger reviewed several items included in the staff repmrt, . pointing out specifically that there would have been more trees :loss than originally anticipated. There was a significant area of ToTge oak trees in the southeast portion of the property and the proponent had reworked the plan by eliminating two lots in ceder to bring the tree loss down to the 46% recommended by the Plamm- ng Commission. Lambert said the Parks, Recreation, and Natural Resources Commission reviewed the proposal on December 2, 1991 and recommended approval on a 5-0 vote according to the November 27., 1991 Planning Staff memorandum and the November 1, 1991 Planning Staff report. The major issues discussed were the tree loss proposal and park dedication fees. The Commission recommended giving some value to the dedicated 32 acres and reduce the cash park fees by $100 per lot. The Commission was concerned about trail construction and the developer had agreed to develop the trail within the park before the houses were built. Harris said she was pleased to hear the trails would be built at the same time as the houses. Jessen asked whether an advanced grading permit in this case would the City get into the same bind as it had in the Purgatory Creek floodplain situation because of changes of rules along the way. • • Eden Prairie 6 December 3, 1991 City Council Minutes Approved Dietz said that, assuming approval by the Watershed District, all permits would be in place for the project. The design standards for the ponds to which the proponent was being held was beyond what had been done in the previously-approved PUD and were consistent with what the Board of Water and Soil Resources plans contemplated. The uncertainty was where the permitting process would be in six months and possibly there would be a moratorium on permits, a situation that the proponent was attempting to avoid. Conrad Fiskness, 8033 Cheyenne Avenue, Chanhassen, asked if the northern border of the property abutted the DataSery Property. Dietz said that was correct. Fiskness asked if the holding pond at the center of the property was the existing pond at the southern edge of the DataSery lot. Herbst said no and that it was a new pond. There were no further comments from the audience. MOTION Jessen moved, seconded by Harris, to close the public hearing. Motion approved 5-0. • Anderson asked what the approximate cost of the houses on the R1- 9.5 lots would be. Herbst said they would be between $130,000 and $150,000. Anderson said he believed this was within the guidelines set by the Human Rights and Services Commission. Anderson said he was concerned about approving an early grading permit for the purpose of complying with the federal guidelines before January 1, 1992. Herbst said that the Corps of Engineers had issued a permit for the grading. The proponent's concern was that the new authority given to the Board of Water and Soil Resources could delay issuance of additional permits that would be needed. MOTION Pidcock moved to adopt Resolution No. 91-245 approving the PUD Concept Amendment and approve first reading of Ordinance No. 31- 91-PUD-11-91 for PUD District and Rezoning from Rural to R1-9.5 and R1-13.5. Seconded by Jessen. Motion approved 5-0. MOTION Pidcock moved to Adopt Resolution No. 91-246, approving the preliminary plat, and to direct staff to prepare a development agreement incorporating commission and staff recommendations. Seconded by Jessen. Motion approved 5-0. • Eden Prairie 7 December 2, 1991 City Council Minutes Approved MOTION Pidcock moved to allow the limited grading permit with the understanding that the developer proceed at its own risk. Seconded by Harris. Motion approved 5-0. V. PAYMENT OF CLAIMS MOTION Anderson moved, seconded by Pidcock, to approve payment of claims. Motion for payment of claims approved with Anderson, Harris, Pidcock, Jessen, and Tenpas all voting "AYE". VI. ORDINANCES & RESOLUTIONS VII. PETITIONS, REQUESTS AND COMMUNICATIONS A. _Petition for the Closure of the Heritage Road/Highway 5 Intersection (Continued from November 5, 1991) Tenpas said he would recommend continuing this item to anotier date • as full notification had not been sent to the neighborhood involved. Dietz recommended including the item on the January 21, 1991 agenda. Chris Geason, 7470 Atherton Way, said he had not received notification by mail of the meeting on this issue and wanted to be sure that he received proper notification of the next meeting. Dietz informed the Council and audience that any notification of meetings to date had been done by residents petitioning for the closure. MOTION Pidcock moved, seconded by Jessen, to continue this item to the January 22, 1992 Council meeting. Motion approved 5-0. VIII. REPORTS OF ADVISORY BOARDS, COMMISSIONS, & COMMITTEES A. Heritage Preservation Commission - Request Approval to Award Contract to Tellus for Historical Survey and Context Study Jullie said the Heritage Preservation Commission had interviewed consultants in November, 1991 to undertake a historical contest survey and had recommended Tellus Consultants, Inc. be retained to identify the local historical resources in Eden Prairie. The cost of the study would be $19,000. Funding had been secured for all but • $2,500 and this amount would be available in the Historical and Cultural 1991 budget. Eden Prairie 8 Decemberr 3, 1991 • City Council Minutes AVpproved MOTION Jessen moved, seconded by Harris, to retain Tellus Consultant, Inc. to identify the local historical resources in Eden Prairie and- tkhdt $2,500 be appropriated from the 1991 Historical and Cultural tiludget. IX. APPOINTMENTS A. Appointment of Resident to Two-year Term on Southwest MetrcD Transit Commission. Jullie said that this was for a two-year term which rotated between the three member cities. Traditionally the representative had: lbeen a bus rider in the Southwest Metro Transit system. Four candi-&Ates were listed in the agenda packet. It was the consensus of the Council that the candidates be interviewed at approximately 6:30 PM prior to the council meetiing of December 17, 1991. Staff was requested to contact the candi&ates and notify them of the time and place of the interviews. • X. REPORTS OF OFFICERS A. REPORTS OF COUNCILMEMBERS 1. Relationship Between Staff, Council, and Mayor. Anderson said he was concerned about the relationship lween the Council and the City Manager as it related to interference on the part of individual councilmembers or the mayor with the staff in the performance of duties. He said he would like 'the policy on operating procedure clarified. Tenpas requested that Pauly review the law in this matter. Pauly said that essentially under a Plan B City, the Count/City Manager form of government, any direction to staff was to be made through the City Manager. This did not mean that individual councilmembers could not receive specific information from staff members. However, general direction to the staff and specific requests for action was to be implemented through the City Manager. Pauly stated further that Council had the responsibility to set policy. That policy was to be implemented through the City Manager, who in turn, guided the City staff. Harris said she understood this to mean that the Council's role • was to establish policy and the city manager's role was to implement that policy. She asked if the right of Councilmembers Eden Prairie 9 December 3, 1991 • City Council Minutes Approved to request information included the right to manage or micro- manage the functions of the City. Pauly said this right did not include requesting some actions to be taken by individual staff persons. Harris asked that if a request for an action were to be made by an individual councilmember, was it necessary that the request reflect the opinion of the majority of the Council. Pauly said it would depend on the request. An individual's request for action could be appropriate in a minor, non-policy matter, but in any major type of actions that might be required, the Council as a whole must determine what that direction would be. Tenpas asked if it was appropriate if a councilmember called a special meeting which involved a personnel issue, for the purpose of letting the person know in advance what was to be discussed at the meeting and what the councilmember planned to suggest as an action. Pauly said he believed informing someone of the subject of the discussion was appropriate, and he believed it would be a courtesy to the person involved. Pidcock asked that if it was appropriate for a staff member to ask a councilmember for an opinion on making a bid, for example. Pauly said that in order to make the system work, it would have • to be appropriate. From the staff perspective, a lot of time could be wasted if it did not get some informal idea of where the Council stood on certain issues. Pidcock asked if the City Manager had the authority to make an offer on any property in the name of the Council when the Council had indicated that it had an interest in the property. Pauly said this was correct as long as the offer was contingent upon ultimate Council approval. Anderson said he understood that the daily operations of the City were the responsibility of the City Manager. He also said he understood that policy was set by the majority of the Council and therefore it was the majority of the Council that gave the direction to the City Manager. Pauly said this was correct. He asked Pauly if there was any recourse if the majority of the Council believed there was interference in the daily operation of the City by one of the councilmembers. Pauly said if an interference went to the point where it became a violation of a statute, it could constitute misconduct in office. He said there was no remedy available to the Council as a whole other than to adopt a resolution either correcting the direction given or give a counter-direction. Harris said she had been concerned about confusion that had been growing as to roles and responsibilities as it related to Council versus City staff, particularly unilateral initiatives of members of the Council and negotiations that could lead to some • confusion on the part of the public. She said she would like to establish ground rules that would in a general way govern the Eden Prairie 10 Decembear 3, 1991 • City Council Minutes Approved Council/staff relationship in the future. Pauly said that_ithey key principal was that Council gave the general policy directions, made specific decisions required by statute, amd had the direct authority to employ the City Manager. Individiudl councilmembers had the right to interact with staff for pi poses of gathering information, and staff had the prerogative tm interact with councilmembers for the purpose of getting cqpinions on various issues. Harris asked who had responsibility Aur "the actual conduct of the City's business and discharging Commi-dil's policies. Pauly said this was the responsibility of the CitV Manager. Harris asked if this included negotiations on behalf of the City. Pauly said it did. Jessen observed that Council operates in different styles; att different times and Council routinely assigns to one or metre councilmembers the responsibility for a specific issue. E'mr example, he said that Anderson and he were assigned to investigate the Purgatory Creek Wetlands issue, Pidcock watts assigned to represent the Council on the Southwest Area Metro Transit Commission, and Tenpas and Harris were given tll-- assignment to evaluate the City Manager performance. Ini .a, more structured system, these assignments would be given to tdhe • staff. He said he believed the model to be followed by C7amncil was more collegial, more constructive, and gave support is the staff. Harris said she saw a real difference between assignments -given by Council to individual members and individual initiatives; outside of those discussed and delegated by Council. Tenpas said that the specific issue being discussed was the review of the City Manager. He said he had some concerns that he wanted to present to the entire Council before the rev-iew took place. He decided to not call each member at home, but rather have a meeting to discuss his concerns in an effort to keep all councilmembers informed of what he believed was happening in the community. It was also his intent to be open and honest with the City Manager. Pidcock said she believed that when actions by any one of the councilmembers interfered with the morale and the operation of the staff, it was a serious matter. She said she believed the City had an excellent staff and when reprimanding was necessary, the manager had done it. She believed the Council should be careful to stay within the policy issues and not be involved in management. • • Eden Prairie 11 December 3, 1991 City Council Minutes Approved Anderson said that in the past the city manager's evaluation had always been done with the full Council and the mayor, after which it had been turned over to the manager and discussed with him. He was upset that this had not happened this year. He said that he had heard that the mayor had asked the city manager to resign without the authorization of the full Council. Furthermore, the mayor had not discussed the evaluation with Councilmember Harris. He believed the mayor's actions were inappropriate and not within the duties of a mayor. Tenpas said that he believed it was appropriate to meet with the city manager to tell him what he planned to present in a meeting that was supposed to have been held at 6:00 PM on December 3, 1991. He believed the conversation was a healthy one. He said he had not asked the city manager to resign. Harris said she believed an action had been taken that involved actions and/or options that had not been discussed with the Council. She believed that discussion should have preceded a meeting with the city manager. Tenpas said that he believed this discussion should have been • held in private. Anderson said he disagreed because Tenpas had taken the action on his own initiative without direction from Council. Harris said that she wanted the press and the public to know that her evaluation of Jullie on a Scale of 1-5, 5 being excellent, was over 4. Anderson and Pidcock commented that their evaluations were very similar. Jessen said that he believed the press should not be present for a city manager evaluation meeting, and the meeting should have been held at 6:00 PM. He believed the manner in which the issue had been brought up was very poor. Harris believed there was a larger issue which was the taking of unilateral actions. She stressed that the role of the Council was to establish policy and the role of the city manager was to carry out that policy. Anderson added that he believed that Council had not given the city manager or City staff good direction in 1991. i • Eden Prairie 12 December 3, 1991 City Council Minutes Approved 2. Snow Plowing Anderson said he knew that residents of the City had been frustrated with snow plows depositing snow in driveways that the property owner had already cleared. He said he believed it would help if the City policy on snow plowing were published in the newspapers so the residents would understand the procedures and would therefore know what to expect after a snowfall. Dietz said he would prepare such an item for the newspapers. 3. FireFighters Relief Association Tenpas said that the FireFighters Relief Association would like the Council to look at the long-term pension program of the volunteer Fire Department as it related to amounts paid and total years for vesting. There was some concern in the volunteer Fire Department that it had become more difficult to recruit people and to keep them for any length of time. Tenpas would like staff to do some preliminary work on the problem and bring it before Council for further discussion. Tenpas said this would probably effect the 1993 budget at the earliest because of the . amount of planning that would be involved to obtain appropriate legislation. 4. Traffic Signal at Prairie Center Drive and Singletree Lane Tenpas asked if there was a way to get a signal light at this location with TIF funds as the Wal-Mart Store would be constructed and operating quite soon. Dietz said that at the December 17, 1991 Council meeting, the TIF improvement projects would be summarized and authorization requested to hire a consultant at that point. 5. Charity Event Tenpas said he would like to do something to help needy people in need in the community, and he would like to suggest a charity basketball game between City Staff, Council, and School Board to raise money specifically for PROP. He requested staff to work on a recommendation for this project. Council agreed with this suggestion. 6. Street Light on Harmony Place Pidcock stated that one of the street lights in this area had been knocked down and she asked whether or not arrangements for repair had been made. Dietz said that Northern States Power • was responsible for the repairs and had been contacted on this matter. Eden Prairie 13 December 3, 1991 City Council Minutes Approved B. REPORT OF CITY MANAGER 1. Radio Tower Replacement Jullie said bids were opened on November 21, 1991 for replacement of the radio tower at the police station. Only one bid had been received, which was considerably over the estimate made last year. There had also been a lengthy review process by the Federal Aviation Administration which specified the height of the tower. There was a very narrow construction window and it was important to begin construction very soon. Jullie said there were funding transfers that could be made to accomplish this construction. He requested the Council authorize an agreement with Tim's Tower Service in the amount not to exceed $96,359 as well as authorizing the transfer of funds to accomplish the funding of the project. MOTION Jessen moved to authorize the transfer of funds and contract with Tim's Tower Service to build the new radio tower at the • police station in the amount not to exceed $96,359. Seconded by Harris. Motion approved 5-0. 2. Discussion of General Fund Budget Jullie called Council attention to the memorandum of November 29, 1991 outlining the capital outlays that were proposed in the 1992 budget. He also called attention to Dietz's memo of November 29, 1991 presenting the estimated costs related to two trail constructions: One along County Road 4 for approximately $140,000; and the second was the County Road 1 trail at a cost of approximately $225,000. Also included was a memo from Lambert which included a letter from Deborah Campbell-Potter, Chair of the Historical and Cultural Commission, requesting an increase in the historical interpreter's hours which would be approximately a $7,000 increase. He spoke about the additional information relating to the proposed 1992 employees salary program as well as budget items with health and life insurance. Jullie said that in applying the potential salary administration program to the budget, he believed that the amount for benefits could be reduced by approximately $50,000 from the amount that had been proposed. Another item for scrutiny was the liquor enterprise profits and Jullie called attention to a memo of December 3, 1991 relating to the potential availability of an additional $175,000 that should be available from liquor operations in 1992. He reminded Council that the budget must . be approved by December 20, 1991. • Eden Prairie 14 December 3, 1991 City Council Minutes Approved Jessen said that he believed a 10.3% tax rate increase was difficult to justify at the present time. He said that he believed a 4% salary adjustment was high based on wage settlements in the market place. He also suggested that the Council consider carefully the cost of health benefits as health insurance premiums had risen 22% in the past year and were expected to rise at a similar rate next year. Natalie Swaggert, Director of Human Resources and Community Services, said that over the past four years, the City had transferred more and more of the health care cost to the employees. Currently the City was paying 66% of the health insurance premiums, with the employee paying 34%. The industry norm was 67% paid by the employer. Anderson asked if the employees had ever been surveyed to find out if they would rather take the increase in health care benefits or on the paycheck. Swaggert said no such survey had been done to date. Tenpas said he believed it was necessary for the City to look at ways to decrease spending in this time of recession. • 3. Discussion of Enterprise Funds Budget Jullie said this was the sewer and water fund program, the bulk of which was for the operation of the water plant. On the sewer fund the major billing was from the Metropolitan Waste Control Commission, and customer rates were based on water consumption. The liquor operations were also included in this budget. Tenpas asked what the status was of the third liquor store. Jullie said that the Prairieview Center location had been recommended by a consultant but the decision had been made to delay a decision because of the Highway 5/212 project. Also, there was not an appropriate facility available at the present time in the Prairieview Center. Another viable alternative could be the location near the new Cub Foods store. John Frane, Finance Director, said the Prairie Village Mall store had a 31% increase in sales this past year, and the Preserve Village Mall had had a 20% increase in sales. Tenpas said he would like Council to discuss maximizing profits from the liquor sales. • • Eden Prairie 15 December 3, 1991 City Council Minutes Approved C. Report of Director of Public Works 1. Award Contract for Purchase of Sewer Jetter Dietz said this item was included $87,000 in the proposed 1992 budget. However, because delivery of the sewer jetter takes six months, he was requesting that Council authorize award of the contract to Flexible Pipe Tool Company in the amount of $72,471. MOTION Harris moved to approve Resolution No. 91-261 awarding the contract for a sewer jetter to Flexible Pipe Tool Company. Seconded by Pidcock. Motion approved 5-0. 2. Contract for Purchase of Eaton Building for Public Works Facility Pauly called Council attention to the Purchase Agreement for Building No. 3 from the Eaton Corporation which included seven acres of land and certain easements for drainage and sprinkling, for a price of $1,037,500. This amount would be paid in cash at the closing. He said Eaton would like to close in 1991 if • possible. Pauly said a copy of the environmental review from Eaton Corporation had been received and Eaton Corporation had agreed to provide the City with an indemnity agreement. The agreement stated that if there were any hazardous substances on the property which the City purchased, Eaton would indemnify the City against any liability for those substances as well as the cost of any defense. The same indemnification would apply to the property being retained by Eaton Corporation. Deitz said the building was 66,000 square feet and he believed it met the needs for maintenance equipment and the central location was a very good one. He said the proposal was to purchase the building by making a loan from the Utility Reserve Fund and repay it as the current facility was sold to MnDOT for the Highway 212 project. He said this was the only mechanism available to finance the purchase. The old facility, excluding the fire station portion, had an estimated value of $3 million. MOTION Jessen moved to approve the purchase agreement with the Eaton Corporation for Building No. 3 for use as a public works facility, with funding to come from an internal loan from the Utility Reserve Fund. Seconded by Harris. Motion approved 5-0. • Eden Prairie December 3= 1991 City Council Minutes approved 3. Proposal from Summit Environmental Engineering & consulting, Inc. Dietz said that Linda Fisher from the Larkin Hoffman law firm had reviewed the data in the files regarding the fill areas near wetlands along Prairie Center Drive. She had proposed adding another consultant to come to a conclusion about how much wetlands had been filled from the City's perspective, rater than allowing the Corps of Engineers to make the determination. He called Council attention to a proposal from Summit Environmental Engineering and Consulting, Inc. which would provide the services which Ms. Fisher believed to be necessary. The services would be charged on an hourly basis, with the top cost expected to be approximately $8,500. MOTION Pidock moved to retain Summit Environmental Engineering and Consulting, Inc. as recommended by staff. Seconded by Anderson. Motion approved 5-0. XI. OTHER BUSINESS • XII. ADJOURNMENT MOTION Pidcock moved, seconded by Anderson, to adjourn at 11:00 PM. Notion approved 5-0. •