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City Council - 09/07/1999 - Workshop APPROVED NIINUTES EDEN PRAIRIE CITY COUNCIL WORKSHOP/FORUM TUESDAY, SEPTEMBER 7, 1999 5:00-6:55 PM, CITY CENTER TRAINING ROOM CITY COUNCIL: Acting Mayor Nancy Tyra-Lukens, Councilmembers Sherry Butcher-Younghans,Ronald Case, and Ross Thorfinnson,Jr. CITY STAFF: City Manager Chris Enger,Financial Services Director Don Uram,Public Safety Services Director Jim Clark,Parks &Recreation Services Director Bob Lambert,Public Works Services Director Eugene Dietz,Management Services Director Natalie Swaggert, City Engineer Al Gray, Assistant City Engineer Rod Rue, and Recording Secretary Peggy Rasmussen I. CALL MEETING TO ORDER—ACTING MAYOR NANCY TYRA-LUKENS Acting Mayor Nancy Tyra-Lukens called the meeting to order at 5:15 PM. Mayor Jean Harris was absent. The following city residents were in attendance: Perry Forster, 9505 Highview Drive, Debbie Gjervold, 9965 Garrison Way,David and Carol Quanbeck 16150 Hillcrest Lane. Chris Enger stated some of these residents have requested to speak and have submitted written information,which has been made available to Council and Staff. H. APPROVAL OF AGENDA MOTION: Thorfinnson moved, seconded by Case,to approve the agenda as published. III. SPECIAL ASSESSMENT POLICY Dietz said the special assessment policy and revision of the cap was discussed during a public hearing on street and storm sewer improvements for Lincoln Lane at the July 20, 1999, City Council meeting. Council suggested bringing this subject to a workshop to discuss further. Dietz explained the current cap of$15,000 on special assessments was set in 1989. Most City projects were constructed between 1990 and 1993, with no significant projects since that time. However, the City is now extending utilities into the southwest area and it is time to look at revising the cap. The procedure for updating the cap is to use the "Engineering News Record" Construction Index (CCI). In 1989, the CCI was 4,805, and in 1999 the CCI is 6,605. If this last number were used to compute the cap, the new cap would be $20,600. However, a lower cap of$19,600 is obtained by using the average 1990-1993 CCI of 5,065. This results in the City having a higher share of the cost, but also takes into account environmental benefits, earlier connection, encouraging projects, reducing maintenance and providing public safety protection (by supplying water for fire hydrants). COUNCIL WORKSHOP MINUTES September 7, 1999 Page 2 The City Staff looked at the increase in home values in selected neighborhoods. The average increase was 41.9 percent. If the cap were raised from$15,000 to $19,600, it would represent an increase of 31 percent. The City will appraise some typical homes to show if the increased value of the home equals or is higher than the increased assessment. Enger asked Dietz what is the philosophy of assessments. Dietz said the purpose of government is to do things that people cannot do individually to obtain an upgrade to urban standards in the area. Case said there are two ways to assess properties; either spread the assessment cost among everybody or assess it directly to the property owner. He asked what factors determine the method used. Dietz replied that a decision was made in 1989 that everybody has to pay for improvements that occur in front of their property. Enger stated Staff is proposing in the CIP to fund paving replacement to the level of about $2.5 million in the future. If the City can get all improvements paid for by the property owner the first time,then the City can maintain them through ad valorem taxes. Tyra-Lukens inquired how many areas of the City are involved in improvements requiring special assessments. Dietz showed a map indicating where 528 septic systems are in place. Many of them are on either State or County roadways, and those people would not have to pay for the road,just for sewer and water. About 220 of the 528 are adjacent to developments, and people living in those areas would not be involved in paying special assessments for various reasons. A $300 increase in the cap would help reduce City expenditures,but it would still cost the City about$23,000-$25,000 for those neighborhoods that don't have City sewer or water. Dietz said the next time a feasibility study is brought forward in a public hearing Staff will propose this new cap. The City wishes to encourage development projects and so prefers a basic assessment on the development rather than individual assessments. Enger stated the lot unit has an impact on what the homeowner would be assessed. Dietz explained the City assesses according to the lot unit, not according to the amount of frontage a property has. If a lot is large enough to be made into two lots, the owner is charged for two lots, but payment with interest can be deferred on the second lot until development occurs. With regard to indexing, Dietz said the CCI comes out quarterly in the "Engineering News Record"so the City probably will have to change the index on an annual basis. Because adopting a cap to special assessments is a policy issue, the City Council adopted it by a motion in 1989. A revision would be handled the same way. Dietz explained the cost analysis for rebuilding Hillcrest/Alpine streets. The improve- ments include road reconstruction, curb and gutter, storm sewer and water, and landscaping. The City would pay the cost of removing the old road and replacing it ($480,000); the neighborhood would pay for curb and gutter and storm sewer and water ($680,000). Each property owner would be assessed about $9,000 (lot unit cost) plus $6,616 (CCI=3.35 x 1,975 =$6,616). COUNCIIl WORKSHOP MINUTES September 7, 1999 Page 3 Letters were received from residents of Hillcrest and Alpine streets, asking why the City doesn't plan and budget for these projects. Dietz said the City could consider waiving the 9 percent administrative cost ($62,000). Doing this would result in a lot unit cost of $8,076 rather than$9,000,which would be assessed over 20 years at 8 percent interest. Although the City is making a large commitment for about two miles of streets, the road is old and is expensive to maintain. A roadway lasts twice as long when curb and gutter is added and when storm sewers provide good drainage. A road should last 40 years, although most are designed for 20 years. Thorfinnson said he would be interested in finding out what neighboring cities do with regard to assessing the cost on an individual basis or spreading the cost around to all residents. Dietz said Staff would be willing to research this. Most Minnetonka roads were not built with curb and gutter, and there are different soil conditions. He believes it comes down to what the City can afford to do; there isn't enough money to pay for all improvements. Eden Prairie is a high-growth community and most residents have paid for improvements in front of their houses. Tyra-Lukens asked if the issue of speed humps on residential streets is ready for further discussion. Dietz responded it has not been scheduled for a workshop yet. In Burnsville, if a neighborhood wants this done, they are charged for it, and it is quite labor-intensive. Al Gray said he has heard that some neighborhoods later ask to have them removed. Tyra-Lukens asked to have this item added to the Council's workshop schedule, as Sunrise Circle residents are waiting for an answer. Enger said he would put it on the workshop schedule. David Quanbeck, a Hillcrest Lane resident attending the meeting, said he doesn't understand what was meant by saying there aren't storm sewers in this area. Dietz replied there are storm sewers but none of them are up to current standards regarding spacing and locations. Rue said most of the storm sewers are located only in low areas. The City would be adding to the number of storm sewers,not replacing all of them. Quanbeck said he believes the original streets were built with poor subsoil base and a stable pavement would not be possible. Dietz responded the City doesn't use this type of base any longer. Rue said Hillcrest has an unusual, full-depth design that has very little gravel. Perry Forster asked if Lincoln Lane is a paving project, and was told that it is. Forster asked what is the timetable for bringing the question of increasing the cap for special assessments before the Council. Dietz said a decision has not been made yet. He believes it may be added to a feasibility study. Enger said it could go through the public hearing process or could be done at a public meeting. Dietz noted the previous policy decision was on the Council agenda. Enger said City Staff could notify the people who are here this evening when it is on the City Council agenda. Dietz said Staff would probably have to do some specific home appraisals before that date, in order to prove the increases in home value compared to the proposed increase in the cap. Thorfinnson said he is concerned about setting a precedent in the Hillcrest area by having the City cover administrative costs. The City's ClP does not provide enough funds to COUNCIL WORKSHOP MINUTES September 7, 1999 Page 4 maintain roads at a new level or upgrade to a new level unless we can do this for everybody else during the next 20 years. Dietz responded he agreed; some overlays have been done and some milling and patching. However, nothing that has been discussed with Hillcrest residents is set in stone. Case said the direction in which Staff is heading would set a precedent. Lincoln Lane would not come near the cap. IV. SUBURBAN RATE AUTHORITY Due to time constraints,this subject was held over to another workshop. V. OTHER BUSINESS VI. ADJOURNMENT MOTION: Thorfinnson moved, seconded by Butcher-Younghans, to adjourn the meeting. Acting Mayor Tyra-Lukens adjourned the meeting at 6:30 p.m. COUNCIL FORUM—6:30-6:55 PM A. RUTH CHARCHIAN ON PRESERVE PARK PROPOSED RENOVATION Ruth Charchian, 10960 Northmark Drive, said she also was speaking on behalf of concerned neighbors living adjacent to the park. Her husband and several neighbors were present. Ruth Charchian said when the park was being completed in 1979, City Staff responded promptly to her requests for a design change, and there was a high level of communication. When the renovation of the park was announced this year, she had expected similar treatment. However, she has experienced difficulty in getting information and a lack of forthright, open communication with the members of the Parks, Recreation and Natural Resources Commission and Parks and Recreation Services. She gave four examples of the lack of communications. The residents were told at the April 19 meeting that the renovations would begin in 2000 (supported by a March 26 letter to residents). However, they have recently been notified renovations would begin the week of September 6. They were not given information about the latest design configurations. Mrs. Charchian submitted a petition from neighbors requesting the City Council halt renovations to the park, scheduled to begin the week of September 6, 1999, so that they can be discussed and evaluated with the residents, the Preserve Association and its Design Review Committee. Tyra-Lukens asked Mrs. Charchian what the objection is to moving the hockey rink. She replied it is going to be located adjacent to the street, within 200 feet of the houses across the street, and the noise from hockey pucks being hit is the main objection. The reason for moving the hockey rink and playground equipment is no longer apparent, as a free-skating rink is not going to be developed. The plan COUNCIL WORKSHOP MINUTES September 7, 1999 Page 5 to move the playground to where the hockey rink is now will put it next to a swamp and pond, and the Preserve Association is very much against this. Tyra-Lukens asked if her written presentation has been sent to the Parks, Recreation and Natural Resources Commission. Mrs. Charchian said it has not. Enger said Bob Lambert could not be present at this meeting, and he would want to hear what Lambert and Commissioner Brown say about the issue. The renovation of Preserve Park has gone through the process necessary for approval by the Parks Commission and City Council. This item was probably not appropriate for a Council Forum. Council established the guidelines for items they would discuss. However, it is important for Staff to look into this matter further and find out why so many people appear to be unhappy. Case said he had received some of the calls from residents and encouraged them to come to the forum. This is the only resource for people to present their concerns to the Council and he would not like to cut people off from it. When the process doesn't work there has to be a final way to reach Council and Staff. Butcher-Younghans said it appears the process for renovation of the park was followed. The Parks, Recreation and Natural Resources Commission is a citizen advisory group, and the meeting they held in April is part of the process. Acting Mayor Tyra-Lukens said something like this happening at this point in time makes it difficult to do anything now, because a vote has been taken. The City needs to look at communications with the neighbors near the park. Thorfinnson said he didn't think this issue should have been presented at this time. However, it can be brought to the attention of a Councilmember. Case disagreed, and said this issue is exactly what belongs at a forum. Acting Mayor Tyra-Lukens said Council needs a communication from Enger after he has received answers from Lambert on the issues raised. An evaluation of the Council Forum, and what subjects are appropriate, could be added to a Council Workshop agenda. Enger said when he hears the other side of this issue from Commissioner Brown and Bob Lambert, he will convey this information to Council and to Ruth Charchian. However, the Council has voted approval of the park renovation and will not reopen the subject. Hilde Dalgaard said the rationale for moving the hockey rink now has changed. Sam Charchian, Chair of the Preserve Association, said there has been no communication with the Design Committee at all. The Preserve Association did not receive information about the April 19 meeting. Case said he received a suggestion to put the Council/Staff Workshop agenda on the City's web site.