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City Council - 06/15/2010 APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY,JUNE 15, 2010 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Ron Case, Jon Duckstad and Kathy Nelson CITY STAFF: City Manager Scott Neal, Parks & Recreation Director Jay Lotthammer, Public Works Director Gene Dietz, Community Development Director Janet Jeremiah, City Attorney Rick Rosow and Council Recorder Jan Curielli I. ROLL CALL/CALL THE MEETING TO ORDER Mayor Young called the meeting to order at 7:00 PM. All Council Members were present. II. COLOR GUARD/PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION IV. PROCLAMATIONS /PRESENTATIONS A. THREE RIVERS PARK DISTRICT UPDATE Neal said representatives from the Three Rivers Park District were unable to be here tonight. B. MRPA AWARDS OF EXCELLENCE Lotthammer said the Parks and Recreation Department has been selected to receive Awards of Excellence from the Minnesota Recreation and Parks Association (MRPA). Amy Peterson, a member of the Awards Committee for the MRPA, presented two awards to Lindsey Danhauser: the Programming and Events category award for the Eden Prairie Art Crawl, and the Administrative/ Management Strategies category award for the Eden Prairie Art Center. She presented a Park and Facility category award to Stu Fox for the Veterans Memorial. C. SENIOR CENTER GRANT FROM THE EDEN PRAIRIE FOUNDATION Lotthammer said the Eden Prairie Foundation is donating $3,240 to fund two dozen new cushioned arm chairs at the Senior Center. MOTION: Nelson moved, seconded by Aho, to accept the donation from the Eden Prairie Foundation in the amount of$3,240 to fund cushioned arm chairs at the Eden Prairie Senior Center. Motion carried 5-0. CITY COUNCIL MINUTES June 15,2010 Page 2 V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Case added Item XIV.A.2. Aho said he will be presenting Item XIV.A.1. because the Mayor has recused himself from that discussion. Rosow said Item VIII.K. should be approved with the understanding it will undergo further review. MOTION: Case moved, seconded by Aho, to approve the agenda as amended. Motion carried 5-0. VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY, MAY 18, 2010 MOTION: Case moved, seconded by Aho, to approve the minutes of the City Council workshop held Tuesday, May 18, 2010 as published. Motion carried 4-0- 1, with Young abstaining. B. CITY COUNCIL MEETING HELD TUESDAY, MAY 18, 2010 MOTION: Duckstad moved, seconded by Case, to approve the minutes of the City Council meeting held Tuesday, May 18, 2010 as published. Motion carried 5-0. VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS VIII. CONSENT CALENDAR A. CLERK'S LICENSE LIST B. APPROVE SECOND READING OF ORDINANCE NO. 10-2010 AMENDING CITY CODE CHAPTERS 5, 9 AND 11, RELATING TO RECYCLING AND ADOPT SUMMARY RESOLUTION 2010-41 FOR PUBLICATION C. ADOPT RESOLUTION NO. 2010-42 APPROVING MASTER UTILITY AGREEMENT WITH MNDOT FOR THE TH 169/I-494 INTERCHANGE IMPROVEMENTS, I.C. 01-5549 D. AWARD CONTRACT FOR THE RIVERVIEW ROAD POND REPAIR PROJECT TO G. F. JEDLICKI, I.C. 10-5772 E. APPROVE A TEMPORARY CONSTRUCTION AND MAINTENANCE EASEMENT FOR THE RILEY CREEK BANK STABILIZATION PROJECT, I.C. 08-5717 F. APPROVE AMENDED CONTRACT FOR COMPLETION OF BANK STABILIZATION PROJECT AND AUTHORIZE BIDS FOR A SEGMENT OF LOWER RILEY CREEK, I.C. 08-5717 CITY COUNCIL MINUTES June 15,2010 Page 3 G. APPROVE SUBMITTAL OF THE CITY'S ANNUAL STORMWATER PERMIT REPORT, I.C. 02-5585 H. ADOPT RESOLUTION NO. 2010-43 APPROVING REVOCATION AND DESIGNATION OF PORTION OF COUNTY STATE AID HIGHWAY NO. 39, I.C. 02-5576 I. ADOPT RESOLUTION NO. 2010-44 APPROVING APPOINTMENT OF ELECTION JUDGES FOR THE 2010 PRIMARY AND GENERAL ELECTION J. AWARD CONTRACT FOR 2010 BUILDING MAINTENANCE PROJECTS TO RESTORATION SYSTEMS, INC. K. AUTHORIZE THE CITY MANAGER TO SIGN REVISED ADOPTION AGREEMENT AND FLEXIBLE BENEFITS PLAN ADMINISTRATION AGREEMENT WITH GENESIS BENEFITS, INC. L. DIRECT CITY TO NOT WAIVE MONETARY LIMITS ON MUNICIPAL TORT LIABILITY ESTABLISHED BY MINNESOTA STATUTES 466.04 M. AWARD CONTRACT FOR STARING LAKE PARK BIKE TRAIL TO NORTHWEST ASPHALT, INC. N. APPROVE MODIFICATIONS TO POLICY GUIDELINES FOR COMMUNITY USE OF PARKS AND RECREATION RENTAL FACILITES RELATING TO COMMUNITY CENTER CATERING REQUIREMENTS O. ENTER INTO AN ENCROACHMENT AGREEMENT FOR PRIVATE USE OF PUBLIC PROPERTY WITH DENNIS F. AND KAY M. BERGMANN P. ADOPT RESOLUTION NO. 2010-45 AUTHORIZING THE ISSUANCE, SALE,AND DELIVER OF A MULTIFAMILY HOUSING REVENUE NOTE (PRAIRIE MEADOWS PROJECT), SERIES 2010 Q. ADOPT RESOLUTION AUTHORIZING LIMITED USE PERMIT FOR NON-MOTORIZED TRAIL R. APPROVE RENEWAL OF ANNUAL MAINTENANCE CONTRACT WITH MOTOROLA FOR THE DISPATCH CONSOLES AND THE NICE LOGGING RECORDERS. Duckstad said he would like to remove Items M and Q for special consideration. Case said he had questions about Items D, F and G. MOTION: Case moved, seconded by Aho, to approve Items A-L, N-P, and R on the Consent Calendar. CITY COUNCIL MINUTES June 15,2010 Page 4 Case asked if we are using the same company to rebuild the pond and the bank stabilization that we used before when the pond failed. Dietz said we are using the same engineering firm but there is a different contractor. Case asked if the plans were approved by the Lower Minnesota River Watershed District. Dietz said they reviewed the plans, and we made modifications to the plans to meet the reviews. Case asked about Item G. Dietz said there is a requirement of the MPCA that we submit on an annual basis. Regarding Item O, Case said he assumed the Bergman's have signed off on the agreement. Neal said they have signed off. VOTE ON THE MOTION: Motion carried 5-0. Regarding Item M, Duckstad said he has a bias in favor of trails; however he wanted to point out that particular trail will be a capital expenditure of$170,000. He noted for every dollar we spend on a City project, we take the same dollar away from a citizen of Eden Prairie. He thought this is an expenditure that should be delayed and pushed into the future so he objected to passing this capital expenditure at this time. Regarding Item Q, Duckstad said there is no particular project with this item,rather it is asking for a permit that will prepare for the letting of bids. He asked if there is some estimate of how much the capital improvement will cost. Lotthammer said we estimated our cost for the Staring trail(Item O) at $214,000 but the bid came in at$169,000. Our estimate for the Riley trail (Item Q) is about$200,000,but we won't know if that estimate is correct until the bids come in. Both of these trail projects are funded from the 2005 park bond referendum. We have come down to some of the last dollars to spend from that$2,000,000 referendum, and these are two of the last connections that would make use of those funds. Duckstad said the fact they are in the bond referendum doesn't compel us to spend it this year. He asked why it could not be done next year or after the economy recovers. Lotthammer said these are some of the best prices we have seen. If the building climate comes back, we will not get the good prices and we may not be able to do both trails. We have the funds available now, and these are sections of trails that have been identified for quite some time in the trails plan. We don't have to do them at any time,but he didn't know what happens down the road if we don't use the referendum funds. Duckstad said so that means there is no compelling need to build the trails this year. Lotthammer said there is no compelling reason why they have to be built,but staff recommends they be built. Neal said we don't want to build these trails just because we have the money available,but it behooves us to get the best value we can with public funds. In this case the voters approved these dollars on trails in 2005, and they can't be spent on anything else. Staff believes the best value is occurring right now because of the downturn in the construction market. These projects were contemplated five years ago when the referendum was approved. Duckstad noted there is nothing to say the prices won't be lower next year. Nelson asked if these dollars will be replenished. Neal said they will not be, unless there is another referendum. Nelson asked if the money can be used for any other CITY COUNCIL MINUTES June 15,2010 Page 5 park projects. Neal said they are dedicated for trail improvement and construction. Nelson asked why we have waited since 2005 to build them. Neal said there has been a slow pace of completing some projects every year through the design and construction phases. Nelson asked if there are a limited number of trails we can do this year. Neal said that was correct. Nelson said saving $44,000 on a trail is good use of referendum money. MOTION: Case moved, seconded by Nelson, to approve Items M and Q on the Consent Calendar. Young said he agreed with Council Member Duckstad on this item. He understood these are tax dollars,but it is equally true we can't spend them twice. He noted so far this year we have passed some form of trail project on almost every Consent Calendar. He said most of those projects have been trail reconstruction projects, and it is important to maintain what we have in these times,but now we are talking about building new trails. He thought it is an appropriate time to see if we are doing anything differently than we did two years ago. He thought we could use referendum dollars on maintenance,but it may not be the right time to make enhancements to the system. VOTE ON THE MOTION: Motion failed 2-3-0, with Aho, Duckstad and Young opposed. IX. PUBLIC HEARINGS/MEETINGS A. VACATION OF PORTION OF SANITARY SEWER AND WATERMAIN EASEMENTS ON LOT 1, BLOCK 1, INTERNATIONAL SCHOOL (Resolution NO. 2010-46) Neal said official notice of this public hearing was published in the May 27, 2010, Eden Prairie News and sent to one property owner. The property owner has requested the vacation of the sanitary sewer and water main easement over a part of Lot 1, Block 1, International School, to facilitate the addition of a track facility. Portions of the existing sanitary sewer and water main will be moved and new easements will be dedicated. He said staff reviewed this and support it. This will enable a project the City Council previously reviewed. There were no comments from the audience. MOTION: Case moved, seconded by Aho, to close the public hearing, and to adopt Resolution No. 2010-46 vacating a portion of the sanitary sewer and water main easements lying over, under and across Lot 1, Block 1, International School, according to the recorded plat thereof, Hennepin County, Minnesota. Motion carried 5-0. B. VACATION OF PORTION OF DRAINAGE AND UTILITY EASEMENTS ON LOT 1, BLOCK 2, WINDSOR PLAZA (Resolution No. 2010-47) CITY COUNCIL MINUTES June 15,2010 Page 6 Neal said official notice of this public hearing was published in the May 27, 2010, Eden Prairie News and sent to seven property owners. The property owner has requested the vacation of the drainage and utility easement over a part of Lot 1, Block 2, Windsor Plaza, to facilitate the proposed Randy's Bobby and Steve's property development. He said staff has reviewed the project and supports the request. There were no comments from the audience. MOTION: Aho moved, seconded by Case, to close the public hearing and to adopt Resolution No. 2010-47 vacating a portion of the drainage and utility easements lying over, under and across Lot 1, Block 2, Windsor Plaza, according to the recorded plat thereof, Hennepin County, Minnesota. Motion carried 5-0. C. WILLIAM HOAG REZONING by William Hoag. Request for zoning district change from Rural to R1-13.5 on .55 acres. Location: 12005 Sunnybrook Road. (Ordinance for zoning district change) Neal said official notice of this public hearing was published in the May 7, 2010, Eden Prairie News and sent to 27 property owners. This is a rezoning of a single family lot from Rural to R1-13.5 located at 12005 Sunnybrook Road. The proposed lot conforms to the requirements of the R1-13.5 zoning district for lot size and lot dimensions. The rezoning also included a variance request for average setback from 134 feet to 35 feet. This was approved by the Planning Commission on May 24, 2010. When 40% or more of a block is developed, the required setback shall be equal to or greater than the average setback of the principle structure on either side. The lot depth is 154.77 feet. Applying the average setback and rear yard setback requirement would make it impossible to build a house without granting front and/or rear yard setback variances. A staff report for second reading of the ordinance for rezoning is located under Ordinances and Resolutions. The 120-day review period expires on September 3, 2010. The Planning Commission voted 7-0 to recommend approval of the rezoning from Rural to R1-13.5 on May 24, 2010. Jeremiah said the applicant was unable to be here this evening, but they indicated they would like to move forward with the public hearing. There were no comments from the audience. MOTION: Case moved, seconded by Nelson, to close the public hearing, and to approve first reading of the ordinance for zoning district change from Rural to R1- 13.5 on .55 acres. Motion carried 5-0. D. 78TH STREET MARKET by Oppidan. Request for planned unit development concept review on 1.22 acres,planned unit development district review on 1.22 acres, zoning district amendment within the C-HWY zoning district on 1.22 acres and site plan review on 1.22 acres. Location: 8045 Flying Cloud Drive. (Resolution No. 2010-48 for PUD concept review; Ordinance for PUD district review and zoning district amendment) CITY COUNCIL MINUTES June 15,2010 Page 7 Neal said official notice of this public hearing was published in the June 3, 2010, Eden Prairie News and sent to 16 property owners. The project is a 7,600 square foot retail building that replaces the existing Marathon gas station and car wash buildings. The landscape plan has been revised for a decorative fence and plantings. The fence needs stone or brick columns to be consistent with the Lone Oak plan. The developer has agreed to add these to the plan. This will be a condition in the developer agreement. The 120-day review period expires on September 3, 2010. Jeremiah said this redevelopment is in conformance with the Major Center Area (MCA)plan's expectations for the property. There were no comments from the audience. MOTION: Duckstad moved, seconded by Aho, to close the public hearing; to adopt Resolution 2010-48 for planned unit development concept review on 1.22 acres; and to approve first reading of the ordinance for planned unit development district review with waivers, and zoning district amendment in the C-HWY zoning district on 1.22 acres; to direct staff to prepare a development agreement incorporating staff and commission recommendations and Council conditions; to approve and authorize issuance of a grading permit for West 78th Street retail project subject to release by the City Engineer upon determination that the final contract documents conform to plans stamp dated June 15, 2010, as approved by the City Council; and to approve and authorize issuance of a footing and foundation permit for the West 78th retail project subject to release by the Chief Building Official that the building permit conforms to plans stamp dated June 15, 2010, as approved by the City Council. Nelson asked if this property will still have an exit onto Flying Cloud Drive. Dietz said that exit will be closed. Case said the comment on tree replacement in the staff report indicates they can't meet the 200 caliper inches required, and he wanted to make sure staff believes they can't meet that. Jeremiah said we are satisfied with the solution. Staff has found that in the more urban redevelopments the applicants are having trouble meeting the tree replacement requirements, so we have used a variety of different amenities to meet the tree replacement requirement. We have received positive comments about the aesthetics for projects coming out of this process. Case noted in the past we have banked trees from a development for use in another area, and we have a lot of tree needs in the MCA. He asked if we could take money from those projects and plant tress in other areas. Jeremiah said we have talked about that option, but it would require an ordinance amendment. VOTE ON THE MOTION: Motion carried 5-0. E. CUMMINS GRILL HOUSE LANDSCAPE RESTORATION C.O.A. Certificate of Appropriateness for landscape restoration plan for the R. Cummins Homestead CITY COUNCIL MINUTES June 15,2010 Page 8 Neal said official notice of this public hearing was published in the June 3, 2010, Eden Prairie News and sent to five property owners. The Certificate of Appropriateness application is for landscape restoration over much of the heritage site. The site sustained construction related damages in many areas due to Hennepin County's roadway reconstruction project on adjacent Pioneer Trail (CSAH 1), and the City's subsequent ball field and parking lot reconstruction projects. The implementation of the landscape restoration plan is the mitigation agreed to by the City and Hennepin County transportation as stipulated in the Section 106 Memorandum of Agreement(MOA), between the Federal Highway Administration, Advisory Council on Historic Preservation and State Historic Preservation Office. Neal said the plan is found to meet preservation standards applicable to this application request based on the following: • That notice of the City Council public hearing was published in the local paper • That proper notice was given to property owners within 500 feet of the site • That the City's Parks & Recreation Director was present to provide oral and documentary evidence to the Heritage Preservation Commission (HPC) • That the HPC was presented with the application for review for the restoration of the John R. Cummins House landscape • That the application does meet the Secretary of the Interior's standards, and the specific criteria for Certificate of Appropriateness. These findings are listed in Exhibit A of the Certificate of Appropriateness. Neal said the Eden Prairie Heritage Preservation Commission held a public meeting on May 17, 2010, and reviewed the landscape preservation plan per City Code, Section 11.05, Subd. 8.C., criteria for Certificate of Appropriateness. The Commission voted in favor(7-0) to recommend that the City Council approve the application for Certificate of Appropriateness No. 2010-02-004. Jeremiah said it seems like a solution that satisfies all the agencies and the City's internal organization as well. There were no comments from the audience. MOTION: Case moved, seconded by Aho, to close the public hearing and to adopt the findings of fact and approve Certificate of Appropriateness #2010-02-004 for the John R. Cummins House landscape restoration plan, subject to the State Historic Preservation Office (SHPO) review and comment. Motion carried 5-0. F. 2010 CDBG FUNDING MODIFICATION (Resolution No. 2010-49) Neal said official notice of this public hearing was published in the May 27, 2010, Eden Prairie News. The Human Services Review Committee is recommending funding the vehicle repair program from the remaining $4,159 in 2010 CDBG Public Services funds. The Eden Prairie car repair program was established to meet the great need in the community and to help residents maintain self sufficiency. Since the inception of this pilot project in the fall of 2006 there have been 86 CITY COUNCIL MINUTES June 15,2010 Page 9 repairs made for Eden Prairie residents. From July 2009 to present there have been 15 repairs (20 repairs in 2009) for a total of$9,438.71. The assistance of the car repair program has helped clients who need their cars in order to get to work and/or to support themselves and their families. The program is administered, at no cost to the City of Eden Prairie, by Community Action Partnership of Suburban Hennepin (CAPSH). The repairs must be made in one of six participating garages in Eden Prairie, thereby insuring local distribution of the funds. Neal said to qualify for the program clients must meet both residency and CDBG income eligibility guidelines. Clients are required to provide the necessary documentation, including driver's license, proof of car insurance and ownership and income verification. Clients must also sign an agreement that they will not sell the car for 90 days following the repair. Repairs are limited to problems that impact safety issues. The car repair program will pay 75% of repairs, and the client is responsible for 25% of the initial garage estimate. The client portion must be paid before repairs are started. The program will pay up to $750 for repairs. Anything over this amount will be the responsibility of the client. Clients are able to access the program once every three years. Neal said this program was in previous CDBG public service programs, but it was not included in the current budget. There are some extra funds in the program that could be used for this, so it is being brought back as a mid-year adjustment. Nelson said she thought this is an opportunity we need to take. This is a case where businesses have seen a need for some of their clients to get cars repaired, and they have come together to allow it to happen at a reduced cost. We use a small amount of block grant money and cooperate with local businesses. She said she wished there were more than $3000 to put into it. Duckstad asked if this is a pass-through program where the City acts as a conduit for federal money that is passed down to the local level. Neal said that is correct. It is federal funding that comes to the City through the CDBG program. It is accounted for separately in our budget and has restrictions on it. Duckstad asked if the City provides any of this service or just acts as a conduit. Neal said in this case we are paying CAPSH to manage the program. Duckstad asked if there is any cost to the City in administering the program. Neal said there are some forms we have to fill out. Young said it was true the CDBG funds are pass-through dollars,but it is important to remember that we provide human services in two ways, through the CDBG and through our operating budget. One of his personal initiatives has been to reconcile our CDBG decisions with our own budget decisions because if we make better use of the pass-through dollars we can make better use of our tax dollars. He did not think being in the car repair business is as good a use of the dollars as some other programs could be, so he did not support this. Basil Wissner, 8293 Mitchell Road, asked where the extra funds came from. Neal said sometimes the agencies don't do their program to the extent they thought they CITY COUNCIL MINUTES June 15,2010 Page 10 were going to, and that is where these extra dollars come from. Jeremiah said at the time we did the initial CDBG allocation earlier this year we were required to do it by a certain date,but we only had an estimate of what the federal dollars would be for the year. When the actual amount came through it was $18,000 more than anticipated, and we received program income from a number of CDBG loan programs which get paid back into the CDBG program. She said we are proposing to spend only $3000 out of the extra $4100 for this program so we can have a reserve with the rest of the funds. Wissner said he recalled when the Council talked about allocating the funds they discussed coming back to the Council for approval if the amount was different. Jeremiah said that is what we are doing tonight for the public service portion of it. Molly Koivumaki, Housing and Community Services Manager, said the $15,000 additional was distributed in accordance with the previous allocations,but the public service piece was not allocated. Aho asked what takes place at the end of the year if the CDBG dollars are not allocated and spent. Koivumaki said we have 18 months in which to spend the funds. Aho asked if we could then apply them the next time we allocated CDBG funds if we did not spend the dollars through this program. Koivumaki said we could. Case thought that all of our CDBG funds go towards good uses. The programs never have enough funding, and he didn't know that any of the Council Members were prepared to say that it should all go to one of the programs. He said this program is very few dollars but it helps families in an area of their lives where they don't get help from other programs. We don't have enough dollars to spread the way the organizations would like,but we have enough to incentivize some of the programs we believe in. Nelson said this allows people to keep their jobs and keep paying taxes, and the program also supports the business community. She believes in supporting our business community and in trying to put through public/private programs to maximize the dollars. MOTION: Case moved, seconded by Nelson, to close the public hearing and to adopt Resolution No. 2010-49 approving the use of$3,000 in 2010 CDBG funds for vehicle repair program. Motion carried 4-1-0, with Young opposed. X. PAYMENT OF CLAIMS MOTION: Duckstad moved, seconded by Aho, to approve the payment of claims as submitted. Motion was approved on a roll call vote, with Aho, Case, Duckstad, Nelson and Young voting "aye." XI. ORDINANCES AND RESOLUTIONS CITY COUNCIL MINUTES June 15,2010 Page 11 A. WILLIAM HOAG REZONING by William Hoag Second reading of Ordinance 11-2010 for zoning district change from Rural to R1-13.5 on .55 acres (Ordinance NO. 11-2010 for Zoning District Change) Neal said this is final approval of a rezoning of a single family lot from Rural to R1-13.5 located at 12005 Sunnybrook Road. It was approved earlier tonight as Item IX.C., therefore the second reading will require a unanimous vote of the City Council in order to be adopted at the same meeting. MOTION: Case moved, seconded by Nelson, to approve second reading of Ordinance No. 11-20 10 for a single family lot from Rural to R1-13.5 on .55 acres. Motion carried 5-0. XII. PETITIONS, REQUESTS AND COMMUNICATIONS XIII. APPOINTMENTS A. STUDENTS ON COMMISSIONS Neal said we received 14 applications for the 2010-2011 Students on Commission program. Commission staff liaisons met to review and discuss the applications. The attached appointment recommendations are based on the students' stated Commission preferences and the quality of their applications. All 14 student applicants are being recommended for appointment. The fall Students on Commission term is from September 2010 through December 2010. The winter/spring term is from January 2011 through April 2011. An orientation session will be held during the late summer. MOTION: Case moved to appoint to the Arts & Culture Commission: David Mingo and Everett Keegan for the fall and winter/spring terms; Duckstad moved to appoint to the Conservation Commission: Rachel Wood and Joshua Auerbach for the fall and winter/spring terms; Aho moved to appoint to the Flying Cloud Airport Advisory Commission: Neeraj Ajgaonkar for the fall and winter/spring terms; Nelson moved to appoint to the Heritage Preservation Commission: Ian English for the fall and winter/spring terms; Case moved to appoint to the Human Rights and Diversity Commission: Ryan Borchardt and Salman Ikramuddin for the fall term, and He Li, Clayton Carlson and Alexander Borsch for the winter/spring term; and Duckstad moved to appoint to the Parks, Recreation, and Natural Resources Commission: Ethan Holdahl and Pranay Rao for the fall and winter/spring terms, and Shyam Raman for the fall term. Young seconded the motions. Motion carried 5-0. XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS 1. Report on the City Manager's Performance Review —Council Member Aho CITY COUNCIL MINUTES June 15,2010 Page 12 Aho said the Council met in closed session prior to this meeting to review the City Manager's performance relative to the stated goals for his performance. He said the review was very positive, and we have a consensus that Mr. Neal had achieved the goals we stated for him during a period of economic duress. He gave three examples of the stated goals. The first example was leadership through the budget process in delivering a zero growth budget which resulted in a zero levy growth while maintaining City services and a positive morale among the City employees. The second example was improvements in transportation with his role in directing staff to work with elected officials and MnDOT employees on the Hwy 169 improvements. The third example was safety with the completion and testing of an emergency management plan to ensure City operations during a disaster. He said the Council also discussed compensation and Mr. Neal offered a revision of his contract with some suggestions for changes. He said the Council would like to look at contract revisions prior to the next term of review and develop a revised contract for the City Manager. MOTION: Nelson moved, seconded by Case, to keep the City Manager's merit pay at the same dollar level as that in 2008 and 2009 so there is a zero dollar increase in the overall pay. Case said the total package was $157,171, which is exactly the same as last year. Duckstad said his concern is that we are still going through a difficult economy. There are too many people struggling to make ends meet so it is his position that, in the best interests of the taxpayers,he was not in favor of a merit increase or a compensation increase. Aho said as it stands right now the motion does not include any increase in total compensation over last year and the merit pay is identical to last year's merit pay. He felt it is appropriate for the City Manager to lead by example given that we have asked City employees to work with no increase in compensation. Duckstad said he was still opposed to the motion. He said his statements were made on the basis of what is best for the taxpayers. Case said he has voiced his discomfort with the whole term and concept of merit pay; however the goals set a year ago for the City Manager were accomplished so he should receive the merit pay. He proposed we do something sooner rather than later to look at eliminating merit pay and setting a total salary package. He noted the City Manager's salary package fits into the middle of the range for city managers of comparable cities. Rosow said Council Member Nelson's motion dealt with merit pay. The amount of merit pay was set at$4723 and that should be stated in the motion. He said the motion should reflect the fact that there is no increase in CITY COUNCIL MINUTES June 15,2010 Page 13 the base salary or other benefits that are specifically provided under the City Manager's agreement. AMENDMENT TO THE MOTION: Nelson moved, seconded by Case, to keep the City Manager's merit pay at$4,723, the same dollar level as 2008 and 2009, with no increase in his base salary or other benefits specifically provided under the City Manager's agreement. VOTE ON THE MOTION AS AMENDED: Motion carried 3-1-0, with Duckstad opposed. Young recused himself. 2. Goodrich-Remus Barn— Council Member Case Case said he found it very sad we might lose the building. He asked what the plans are if they don't find someone to buy it for$1.00 and move it. Dietz thought there is something on their website about two options, one to buy and move it and one to buy the land and the barn. Case asked staff to look into that and see if there is a way that we could contact the County. He hoped the Council would agree we have an emotional interest in it staying in the City and being privately owned. He would like staff to check it out and report back at the July meeting. Dietz said staff would do that. B. REPORT OF CITY MANAGER 1. Former KinderCare Building Lease Proposal Neal said Council and staff discussed selling the property when we purchased the building for the purpose of providing right of way to the Singletree project. It has been on the market, and there have been some offers on it. At this point those offers have been approaching about 60% of what we are asking for it. This property might be the key to future redevelopment in this area. Staff would like to have guidance from the Council about leasing the property as an interim use. We have received a number of bona fide proposals to lease the property, but when we had the original discussion with the Council the direction was to sell it. Aho said he was generally not in favor of the City being in the business of leasing commercial property, but in this case right now is a tough economic time to sell property. He thought it makes sense to lease it now in order to hold on to it and combine it with some nearby property in a redevelopment project. Nelson said she would hope we would look at a more flexible lease situation since we really don't have any idea how long we would need to lease the property. Duckstad agreed with the concept and would like to see Mr. Lindahl report back to the Council from time to time with a progress report. CITY COUNCIL MINUTES June 15,2010 Page 14 Neal said it was important for the Council Members to know that this property will stay on the tax roll because there will be a taxable use of the property. Staff has no desire to keep it as a City facility and wants it to be a privately-owned building. 2. Update on Discussions with MAC rmardins!JAZB and Flyins! Cloud Fields Expansion Neal said at our last meeting the Council received a report from the City Attorney that raised some concerns about the direction of the Joint Airport Zoning Board (JAZB) in two areas—zoning administrator duties and the indemnification offer. He said the JAZB had a relatively short meeting later that week and directed the respective staffs to get together and work out some compromises. He said he, Mr. Kipp and Mr. Rosow got together with MAC staff last week to discuss that. Rosow said MAC staff was genuinely surprised that the City did not want to be the zoning administrator. We discussed the rationale for our position and their position. hi their view, the City should be the zoning administrator for Eden Prairie because they believe the zoning ordinance affects every property in the City. Even without the zoning board in existence every property owner in the City ought to be obtaining some review for aviation purposes under federal law. From that point of view they thought it was better that our citizens not have to come here for everything else and then go to MAC as well in order to see that they were exempt from Zone C. He said we need to analyze that further to see if that is sufficient justification. They described it as a regulation that hasn't been activated or enforced with respect to the federal law that requires Zone C. He said staff will advise further on that issue. With respect to indemnification, Rosow said they questioned why we didn't like the indemnification they provided and gave us examples of communities around other airports where they negotiated and developed that language. We described our position that the language used in the indemnification had certain subjective paragraphs that allowed them to cancel the indemnification without a court reviewing it, and we preferred the statutory definitions and formats. He said they did not come to a meeting of the minds on that. It is a hard sell for their staff to go back to their commission and say all the other communities have accepted except Eden Prairie. However, there are different considerations and we can't consider to be bound by what other communities did when we weren't part of the discussions. They told us that this was something they wanted to do but didn't want to "ram it down the throat." If we didn't want to do it, they might report to the commission they can't resolve the ordinance. He said we are not very far away on the ordinance, but we need more discussion. Aho asked if the next meeting has been set up. Neal said at this point we do not have it set up. We told them we needed to have discussion on our end, particularly about the zoning administrator duties in the Zone C area. CITY COUNCIL MINUTES June 15,2010 Page 15 Neal said we also discussed the Flying Cloud ball fields, and we have the workings of an agreement on the ball field expansion. Staff hopes to bring it back to the Park & Recreation Commission and then to the Council in July. C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR 1. Den Road Lease Jeremiah said there is a lease proposal for a chiropractic clinic at the space formerly rented by Hollywood Video in the City's Liquor Store#2 building. They would take 2200 square feet on the southwest corner of the building. The terms are for five years with a $25 per square foot net rent for years one and two. She noted the rent for Hollywood Video was $21.66 per square foot. She reviewed the details of the lease proposal and said staff recommends approval. Neal said we have been working very closely with a commercial real estate broker and have reviewed a number of offers for the space. This one is the best offer we received. They are interested in the back of the building which leaves us some pretty good commercial space on the front of this building. He commended Mr. Lindahl for a lot of work on this project. Staff recommends approval, and the tenant is ready to execute the lease immediately. MOTION: Aho moved, seconded by Nelson, to approve a new lease between the City of Eden Prairie and Dr. Tory M. Robson for a Chiropractic Clinic at the City owned property located at 8020 Den Road. Motion carried 5-0. D. REPORT OF PARKS AND RECREATION DIRECTOR 1. Award Contract for the Miller Park Play Area Improvements to Blackstone Contractors Lotthammer said we designed a master plan for the play area several years ago with the intent of making this as barrier free as possible. We designed it as a two-phase approach with the first phase for the younger age group. The second phase is for 5-12 year olds. We currently have one new and improved half and one that is somewhat dilapidated. This contract would update and bring the second half into code compliance. The bids received were within the budgeted amount. Mike Garvin, 18503 Bearpath Trail, said he has received a lot of credit for the play ground and park but he really has had a small role. It was an idea he came up with but it has been carried out by everyone. The project was started in 2007, and we all should be extremely proud of what we accomplished. The response to the first phase has been incredible. He CITY COUNCIL MINUTES June 15,2010 Page 16 wanted to express how important it is to expand the park and make an extension of the first phase. He thought this component will compliment Phase 1 and give a broader spectrum of kids the opportunity to use it. Duckstad said this is a great park that is large and heavily used. There was a comment made that half of the park is somewhat dilapidated but he didn't share that impression. He said half of the park has been built because of the donation of the Garvin/Miller family. His problem is that he was in favor of Phase 2 but, due to the state of the economy and our budget constraints,he didn't see any need to put that side in right away. MOTION: Case moved, seconded by Nelson, to award the contract for Miller Park play area improvements to Blackstone Contractors in the amount of$401,430.25 for the base quote plus alternate A5,plus alternates A7 to A15, and deduct item D1. Case said we wouldn't be where we are today if former Councils and residents hadn't built the city we love today. There have been tough economic times over the past 30 years,but the City Councils continued to build the City. We are in tough economic times, and it is appropriate we raise questions when we spend money;however, he thought it is a mistake to question every single dollar that goes out just because we are in tighter economic times. That is what will make our City fail when we come into better times. He agreed we cannot do everything, but he believed we have to do enough. Young said the idea that we vote against everything is an oversimplification of the process. He said Council Member Duckstad asks reliable questions about how we are spending our money and that is appropriate in these times. He said he respected the reasons for Council Member Duckstad's belief even though he didn't agree with him on this particular issue. Aho thought it is critical that we evaluate every project we look at in terms of timing, especially the sizable projects. In this particular case he agreed that we need to do this park,but to do a$400,000 project at this time is not critical. There are no particular safety issues involved. He appreciated all the effort the Garvin and Miller families have put into this, and the community greatly appreciates it. He would like to see us move forward in a year or so when times get better. Nelson said the area around the boat does not seem to be in pristine condition and asked if there are any safety concerns about the age of any of the equipment. Lotthammer said some settling has happened near the southeast entrance to the older play structure due to drainage issues in that area. One of the play structures is in good shape, and we will keep that in place. It needs to be brought up to code but it has life left in it. Other equipment needs to come out because of the drainage issues and safety hazards. We started this as a phased approach to spread the financing out. CITY COUNCIL MINUTES June 15,2010 Page 17 Nelson asked if the money will replace unsafe portions of the play ground with barrier free equipment. Lotthammer said there are components that fit into the barrier free program and others that are structured towards people with non-mobility disability issues. Nelson said she couldn't condone keeping unsafe park equipment. This is a high use park area, and we should have safe equipment there. Duckstad said in the report it was mentioned that the other play components are 5-12 years old. His recollection is that most of it is five years old except for the boat. He asked how long these problems have existed. Lotthammer clarified that we talk about play structures as being appropriate for age groups. The term "5-12 years old" refers to the age group for which it is appropriate. The pieces we have in the older section have been in place for over 12 years and those were designed for 5-12 year old children. Duckstad said there wasn't anything in the report about safety issues. Lotthammer said if we feel it is usable we have been pushing all of these as far as we can. Duckstad said the report doesn't state any children have been injured over there, and asked if we have any records on that. Lotthammer said he didn't know of any recent injuries at that location. Aho said he was not in favor of keeping equipment that is unsafe and asked if Mr. Lotthammer would recommend we remove some of the equipment if we don't move forward. Lotthammer said there are a couple of areas we would want to take out of commission or rope off. Aho said given that we would spend money to take them out,he would change his mind and vote in favor of this. Young said this project is consistent with what we have talked about historically for this playground. VOTE ON THE MOTION: Motion carried 4-1-0, with Duckstad opposed. E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVI. ADJOURNMENT MOTION: Case moved, seconded by Duckstad, to adjourn the meeting. Motion carried 5-0. Mayor Young adjourned the meeting at 8:54 PM.