City Council - 07/19/2005 - Workshop APPROVED MINUTES
EDEN PRAIRIE CITY COUNCIL WORKSHOP
& OPEN FORUM/OPEN PODIUM
TUESDAY,JULY 19, 2005 CITY CENTER
5:00—6:25 PM, HERITAGE ROOM II
6:30—7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Nancy Tyra-Lukens, Councilmembers Brad Aho, Sherry Butcher, Ron
Case, and Philip Young
CITY STAFF: City Manager Scott Neal, Police Chief Dan Carlson, Fire Chief George Esbensen,
Public Works Director Eugene Dietz, Parks and Recreation Director Bob Lambert, City Planner
Mike Franzen, Communications Manager Pat Brink, Assistant to the City Manager Michael Barone,
Liquor Store Managers Mitch Dean, Holly Smith and Bill Lempesis; City Attorney Ric Rosow, and
Recorder Lorene McWaters
Heritage Room H
I. UPDATE ON 312 PROJECT BY ZUMBRO RIVER CONSTRUCTORS & MNDOT
Scott Risley of Zumbro River Constructors and Jon Chiglo of MnDOT gave a PowerPoint
presentation on the Highway 212 Project. The project update included a review of
interchanges, noise mitigation measures, and environmentally sensitive areas.
Chiglo said it is now easier to get information on the project by going to the website
www.mndot.,izov or calling 952.368.3041. Open houses on the project are scheduled for
August 2 in Chaska; August 3 in Chanhassen; and August 4 in Eden Prairie. The
groundbreaking ceremony will take place on August 20 at the Chaska Freshman Center from
11:00 a.m. to 2:00 p.m.
Councilmember Aho asked about tree loss and mitigation. Mayor Tyra-Lukens said she had
heard some homeowners were being contacted by the contractor about removing trees on
private property. Chiglo said MnDOT will be dealing directly with any trees issues and any
questions of this type should be directed to him.
II. UTILITY OPERATIONS REVIEW
Sue Kotchevar gave a PowerPoint presentation on the Utility Enterprise. She reviewed the
history of the water system, dating back to 1971 when the first 10 miles of truck water mains
were installed. She also reviewed the financial position of utility capital, and reported that
total net assets as of December 31, 2004, were $120,765,362. The quarterly miscellaneous
fee for each connection generates approximately $1.2 million in revenue annually; and SAC
and WAC charges generated $1.8 million in revenue in 2004. Staff is not proposing change
in fees for 2006/2007.
Council Workshop Minutes
July 19, 2005—page 2
As of December 31, 2004, total net assets of utility operations was $2,988,851.
Since 1998 water revenues have increased 4.3 percent annually and sewer revenues have
increased 1.8 percent. Expenses have increased 3.5 percent. Staff is recommending an
increase in water fees of$.05 per 1,000 gallons in 2006. This would result in an increase of
approximately $140,000 to $160,000 in revenue annually.
Total net assets of the storm drainage enterprise as of December 31, 2004, were
$28,127,806. Revenue has increased an average of 2.3 percent annual since 1998.
Kotchevar reported that a new utility billing system will be implemented in January 2006.
The new system will feature improved reporting capabilities, service order tracking, and an
online payment option and account review.
Mayor Tyra-Lukens said she would like Finance to look into a monthly billing option at
some point. As a resident, it would be helpful to know how much water you are using on a
more frequent basis. It would be nice to track an account online on a monthly basis, even if
not being billed on a monthly basis.
III. LIQUOR STORE OPERATIONS REVIEW
Kotchevar reviewed the history of the City's liquor operation, dating back to the opening of
its first store in 1977. Kotchevar also reviewed the results of the liquor business plan
prepared for the City by McComb Group. The report evaluates trade area and market share;
projected sales; the possibility of adding store locations; and competition.
The report indicates Eden Prairie liquor stores as good or better than their primary
competitors. The report projects increasing sales through 2010. The report recommends
hiring a merchandising specialist, retaining a portion of future profits for capital needs, and
changing outdoor signage to incorporate the City's new logo.
Coucilmember Aho asked how much work it would take to separate the liquor store
operations from the rest of the budget. He said it can be confusing when that is lumped in
with the rest of the City's general operations. Neal suggested that perhaps on the check
register it could be called out more precisely to make it easier to understand.
Mayor Tyra-Lukens said it was worth the cost of the study for McComb Group to confirm
that we really do not need a fourth liquor store.
Councilmember Butcher wants to make sure word gets out to the community that the
municipal liquor stores allow the City to control access to alcohol and profits are returned to
the community.
Council Workshop Minutes
July 19, 2005—page 3
Council Chamber
II. OPEN FORUM
Ned Hirschler said residents living near Midwest Asphalt were not informed by the City
about the L.G. Everist aggregate transfer proposal in a timely manner. He asked if there is
any way a list of concerned residents could be compiled. He said sound, visual effects, and
truck traffic are concerns residents have in relation to the proposal. City Manager Scott
Neal said Rick Everist has agreed to meet with the neighborhood group during the Council
meeting, so the discussion item for L.G. Everist is being pulled from the Council agenda.
Neal said staff will be discussing ways in which residents can be kept better informed of
future developments with Midwest Asphalt and L.G. Everist.
III. OPEN PODIUM
IV. ADJOURNMENT