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City Council - 03/15/2011 APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, MARCH 15, 2011 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Ron Case, and Kathy Nelson CITY STAFF: Interim City Manager Jay Lotthammer, Public Works Director Gene Dietz, Community Development Director Janet Jeremiah, City Attorney Ric Rosow and Council Recorder Jan Curielli I. ROLL CALL/CALL THE MEETING TO ORDER Mayor Tyra-Lukens called the meeting to order at 7:05 PM. All Council Members were present. II. COLOR GUARD/PLEDGE OF ALLEGIANCE Mayor Tyra-Lukens thanked Cub Scout Pack 597, sponsored by St. Andrews Lutheran Church, for presenting the colors. III. COUNCIL FORUM INVITATION IV. PROCLAMATIONS /PRESENTATIONS A. EDEN PRAIRIE READS UPDATE Jeanne Zetah, Sue Stewart and Molly Koivumaki provided an update of the current Eden Prairie Reads selection, Outcasts United, a book about refugee soccer players. Ms Zetah said there will be a panel presentation on April 26 in the Heritage Room at City Center with four panelists from different countries who will discuss their experiences as refugees in this area. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Lotthammer added Item XIV.B.1. Update on Health Insurance MOTION: Butcher Wickstrom moved, seconded by Nelson, to approve the agenda as amended. Motion carried 5-0. XIV. REPORTS G. REPORT OF FIRE CHIEF (Taken out of sequence) Tyra-Lukens said our hearts go out to the people of Japan as their government deals with the crisis there. CITY COUNCIL MINUTES March 15, 2011 Page 2 Chief Esbensen distributed copies of the Flood Response Policy for Eden Prairie. He said the last major flood event was the 1987 storm when we received a total of 16-17 inches of rain. He said this year we expect Hwy 61 west of Lions Tap to close as well as Riverview Road. The Nine Mile Creek Watershed District looked at the potential impact on Bryant Lake and,based on a series of assumptions, identified several properties there that have potential for flooding. He reviewed the location of those properties and said we have an inventory of sandbags, sand, and poly that could be used to help protect the properties. He said the City would supervise the construction of levees but would not provide the labor. Esbensen said we will mail information to those in the Bryant Lake neighborhoods who have private water wells. Tyra-Lukens asked if we have emails for people who live in that area. Esbensen said we are looking at the Code Red system to see if we have information on these properties. Tyra-Lukens thought it was wise to use the Code Red system and it may encourage people to sign up for the system. Nelson asked if the City has responsibility for getting rid of the polluted sand if sandbags are needed. Esbensen said our policy talks about the residents bringing the bags back to the curb line. Nelson asked if we have any idea of the cost to do that. Dietz said we would not incur a great deal of cost, and there is a demolition landfill in Shakopee where we could dispose of the sand. Nelson said she has received emails about flood insurance and asked if people need to worry about that here in Eden Prairie. Esbensen said our building code specifies a building should be a foot or two above the 100-year flood level. He said this model is one possible scenario and if we get a different one the situation would change. He noted Bryant Lake does not flood regularly so this is taking a worst case scenario. He said each homeowner needs to make the decision to determine what their level of risk is. The City can't make absolute statements about the need for flood insurance. Case said some residents have had situations with NURP ponds where the water came within 10-15 feet of backyards. He asked if we have a list of problematic areas from the last ten years so we could mail information to those residents. Esbensen said the Public Works Department is very diligent in tracking those situations. Butcher Wickstrom thanked Mr. Esbensen for being very forward thinking and proactive on this. She was happy that we have trained our CERT volunteers to respond to situations like this. She thought it would be good to put the information on the website so people are aware of it. Esbensen said we have not yet put it on the website pending the Council's approval of the policy. Lotthammer said the policy somewhat falls under some of our standard operating procedures; however, in the past we have had the policies concurred with by motion of the City Council. CITY COUNCIL MINUTES March 15, 2011 Page 3 Aho said this is based on a possible scenario, and there is no way to perfectly predict what will happen. He understood it is good for the City to say we will provide sandbags and materials and help coordinate the efforts. His concern is that if something did happen that was truly extraordinary and affected a large number of properties, we may be putting ourselves at risk where we may not be able to provide materials and expertise to all the properties. Esbensen said they have ramped up their sandbag inventory by a factor of three. There are all kinds of wild card scenarios where we wouldn't have enough sandbags. Aho said his only concern is that we may be putting the City at risk if we state our policy is to provide materials and we then get caught short. Tyra-Lukens asked if Mr. Aho was suggesting that the policy should have some caveat regarding the sandbag material being available for those properties that are identified as possible flooding locations. Aho thought there should be some way to put a limit on our liability. Rosow said the policy could be modified so that the Director of Emergency Management is designated as the responsible authority in the City to manage distribution of sandbags and sand materials and state that the City will endeavor to provide materials to the extent possible within its resources, including financial. Dietz said in his 30 years with the City we have never had spring flooding as a result of snow melt. This scenario could happen,but this is based on a ten-day snow melt with a record April rainfall on top of it. He maintained that we were tested by the super-storm and we should not think doomsday. The drainage system in Eden Prairie was based on a Comprehensive Guide Plan that assumed we would grow to 100,000 in population so we have a level of conservative design in the system. We had very little flooding in the super-storm of 1987. He thought it is important to have these plans in place. The only modeling that has been done for snow melt is this one for the Nine Mile Creek Watershed District. There are some areas that we repaired after the 2005 rains and there has been very little flooding since that time. MOTION: Case moved, seconded by Butcher Wickstrom, to approve the Flood Response Policy with the modifications suggested by City Attorney Rosow. Motion carried 5-0. VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY, MARCH 1, 2011 MOTION: Case moved, seconded by Aho, to approve the minutes of the City Council workshop held Tuesday, March 1, 2011, as published. Motion carried 5-0. B. CITY COUNCIL MEETING HELD TUESDAY, MARCH 1, 2011 MOTION: Aho moved, seconded by Nelson, to approve the minutes of the City Council meeting held Tuesday, March 1, 2011, as published. Motion carried 5-0. CITY COUNCIL MINUTES March 15, 2011 Page 4 VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS VIII. CONSENT CALENDAR A. CLERK'S LICENSE LIST B. APPROVE SECOND READING OF ORDINANCE 3-2011 AMENDING CITY CODE 11.03 RELATING TO MINIMUM WIDTH OF LOTS AT THE RIGHT- OF-WAY LINE AND ADOPT RESOLUTION 2011-28 APPROVING SUMMARY ORDINANCE C. EDEN POINTE PARKING LOT EXPANSION 2010 by Liberty Property Limited Partnership. Second Reading of Ordinance 4-2011 for Zoning District change from Regional Commercial to I-2 on 2.98 acres and Resolution 2011-29 for Site Plan Review on 5.82 acres Location: 7300 & 7400 Flying Cloud Drive. (Ordinance No. 4-2011 for Zoning District Change, Resolution No. 2011-29 for Site Plan Review) D. AWARD THE BID FOR THE CONSTRUCTION OF THE RICE MARSH TRAIL TO MINNESOTA DIRT WORKS E. APPROVE DECLARATION OF RESTRICTIONS AND COVENANTS ON HAWTHORNE OF EP OUTLOT F. AUTHORIZE AGREEMENT WITH HENNEPIN COUNTY FOR PARTICIPATION IN THE WETLAND HEALTH EVALUATION PROJECT G. APPROVE ENVIRONMENTAL LEARNING CENTER REPAIRS H. AWARD 2011 MAINTENANCE MATERIALS CONTRACT I. ADOPT RESOLUTION NO. 2011-30 APPROVING TWO CONTRACTS WITH THE STATE OF MINNESOTA FOR THE INSTITUTION COMMUNITY WORK CREW (ICWC) J. ADOPT RESOLUTION NO. 2011-31 RELATING TO THE ISSUANCE OF $1,260,000 TAXABLE GENERAL OBLIGATION WATER AND SEWER REVENUE BONDS, SERIES 2011A K. ADOPT RESOLUTION NO. 2011-32 RELATING TO THE ISSUANCE OF $3,735,000 GENERAL OBLIGATION BONDS, SERIES 2011B L. ADOPT RESOLUTION NO. 2011-33 CALLING FOR A PUBLIC HEARING MAY 3, 2011 TO CONSIDER MODIFICATIONS TO TAX INCREMENT FINANCING (TIF) DISTRICT#15 —SUMMIT PLACE SENIOR APARTMENTS CITY COUNCIL MINUTES March 15, 2011 Page 5 MOTION: Aho moved, seconded by Case, to approve Items A-L on the Consent Calendar. Motion carried 5-0. IX. PUBLIC HEARINGS/MEETINGS A. RIDGE AT RILEY CREEK 4TH ADDITION by JMS Custom Homes, LLC. Planned Unit Development Concept Review on 0.65 acres, Planned Unit Development District Review on 0.65 acres, Zoning District Amendment within the R1-13.5 Zoning District on 0.65 acres, and Preliminary Plat of 0.65 acres for two single family lots. Location: 9707 Sky Lane. (Resolution No. 2011-34 for PUD Concept Review, Resolution No. 2011-35 for Preliminary Plat) Lotthammer said official notice of this public hearing was published in the February 17, 2011, Eden Prairie News and sent to 19 property owners. Jeremiah said this is a little unusual as it was just reviewed by the Planning Commission at their meeting last night. The unapproved minutes from that meeting are printed on goldenrod paper for the Council's review. She said the City made an error in the property noticing on this project, and in order to give the residents enough time to come out and be heard, the Planning Commission's hearing of the item was delayed until last night. She said there was some discussion at the Planning Commission meeting regarding how construction access would be handled, and the current thinking is that it would be along Sky Lane. She said the lot meets all the requirements with regard to zoning. Dietz said the whole issue of access is a dilemma for us. The development agreement has two solutions: one is for the developer to provide access through the MAC property and the other is that Eden Prairie Road/Beverly Drive/Sky Lane would be overlaid. He noted there would be rent for access through the MAC property. At some point as additional property is developed, we will have to make a decision on this. Jeff Schoenwetter, JMS Custom Homes, said his company has been very active in Eden Prairie over the past 25 years. There are only 18 lots left in Riley Creek, and they continue to try to do great things for the community. He said this project was approved by a unanimous vote of the Planning Commission, and it also received a favorable recommendation in the staff report. MOTION: Case moved, seconded by Butcher Wickstrom, to close the public hearing; to adopt Resolution No. 2011-34 for Planned Unit Development concept review on .65 acres; to approve 1 st reading of the ordinance for Planned Unit Development district review, and zoning district amendment within the R1-13.5 Zoning District on 0.65 acres; to adopt Resolution No. 2011-35 for preliminary plat on .65 acres into 2 lots; and to direct staff to prepare a development agreement incorporating staff and commission recommendations and Council conditions. Motion carried 5-0. CITY COUNCIL MINUTES March 15, 2011 Page 6 X. PAYMENT OF CLAIMS MOTION: Nelson moved, seconded by Case, to approve the payment of claims as submitted. Motion was approved on a roll call vote, with Aho, Butcher Wickstrom, Case, Nelson, and Tyra-Lukens voting "aye." XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS B. REPORT OF CITY MANAGER 1. Update on Health Insurance (Taken out of sequence after Item C.2.) C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR 1. First Time Homebuyer Down Payment Assistance Jeremiah said in 2010, the Eden Prairie City Council approved a plan to use $50,000 in CDBG funds to assist with the acquisition of affordable housing for income eligible families, with a preference given to veteran, active duty or retired military personnel. In researching options to assist potential homebuyers, staff discovered the need for down payment assistance was the most likely barrier keeping residents from purchasing homes. Staff would like to tweak the program and are proposing the First Time Homebuyer Down Payment Assistance Program that will provide a deferred, zero interest loan of up to $25,000 to assist with down payment costs, closing costs and principal reduction, which are all in accordance with HUD requirements. The program will use the $50,000 allocation, plus an additional $150,000 in program income to assist home buyers. The loan is repayable when the property is sold, is no longer the borrower's principal place of residence, or after 30 years has passed. She said there will be preference points for living or working in Eden Prairie and for a family with children. Nelson said she assumed the people that would be eligible for this would be fully capable of paying it back. Jeremiah said there would be a substantial process that the applicants would have to go through in order to prove they meet the eligibility requirements and are able to pay back the loan. She said we would collaborate with CAPSH the organization that coordinates our car repair program. Their staff would meet one-on-one with the prospective homeowner and would make a recommendation with respect to the CITY COUNCIL MINUTES March 15, 2011 Page 7 readiness of the applicant. They also provide a training program on the responsibilities of home ownership, the need to maintain insurances, and the responsibilities with regard to the program. Nelson asked if we have looked at putting our volunteer firefighters in the point preference. Jeremiah said we have not discussed that,but we did discuss putting in a veteran's preference, and some of the volunteers are veterans. She said we have handled it more through marketing and have marketed the program a lot to our volunteers and police staff. Case asked what the income qualification levels are. Jeremiah said it ranges from a maximum of$64,400 for a family of four to a maximum of$45,100 for a household of one. MOTION: Butcher Wickstrom moved, seconded by Nelson, to approve the use of CDBG funds for a First Time Homebuyer Down Payment Assistance Program. Motion carried 5-0. 2. Housing Improvement Areas Jeremiah said they have been working on a financing tool called a Housing Improvement Area (HIA), which is a defined area within a city where housing improvements are made and the cost of the improvements are paid in whole or in part from fees imposed on the properties within the area. She said it is particularly helpful with regard to maintaining town home and condominium properties when they are having problems coming up with money for maintenance in their common areas. This tool is initiated by the owners of the property, and 50% of the owners must sign the petition. It can be vetoed by 35% of the owners. It uses the City's resources with regard to borrowing to provide low interest money to make the required improvements to the property. The individual homeowners would then pay it back through a fee on their property tax statements. This gives them the opportunity to finance it over a period of time and gets the property maintained so their values are maintained. She said no action is requested tonight; however, it would require a public hearing and would be in ordinance format when they do bring it forward. B. REPORT OF CITY MANAGER 1. Update on Health Insurance Lotthammer said we have been trying to contain costs, and we just had bids come back in response to our RFP. Three companies met our qualifications: Health Partners, Medica and B1ueCross/Blue Shield. Health Partners and Medica came back with a 14% increase, and B1ueCross/B1ueShield came back at 24%. Staff has met with the consultants on this and believe we can work with Health Partners to reduce the 14% down to 12%, which fits what we have budgeted. CITY COUNCIL MINUTES March 15, 2011 Page 8 Lotthammer said this obviously isn't sustainable long term so we have been discussing how we might approach this for the long term. He noted we agreed in our union contract to not make changes in the coming year. Over the last several years we have eliminated our highest option plan and introduced a high deductible. We have increased co-pays on prescription drugs and office visits and have initiated our"Way-to-Go"program. Unfortunately, our claims experience has been running at 145% of what we have been contributing. He said we have been looking at an option where employees take risk assessments by the health care provider to help lower costs. He said we have talked about options with our consultants and have been working with an employee group to get their feedback. Lotthammer said we believe we have legitimate pricing coming back to us, but staff believes long-term we need to relook at this to make sure we stay competitive. He said staff will come back at a later date after doing more research to give a better idea of the plans we would recommend. Nelson said she asked the question last fall about why we weren't looking at more of a cafeteria type plan where employees can pick and choose benefits. She knows of other cities that use that, and many corporations are going to that. She would like to see that included in what we are looking at. D. REPORT OF PARKS AND RECREATION DIRECTOR 1. Award Bid for Flyins! Cloud Athletic Fields Lotthammer said staff is asking the Council to let us go forward with a contract for construction of the expansion of the Flying Cloud Athletic fields. He said there is $1,200,000 remaining from the 2005 referendum to fund the construction, so all the construction can be accommodated from referendum dollars. He said there were 16 bidders ranging from $1,200,191.77 to $1,883,612.00. The consultant and staff are recommending the contract be awarded to the lowest bidder, Chard Tiling and Excavating, Inc. There is a parcel on the MAC property adjacent to our site that needs grading, and that was included as a separate line item so the costs can be segregated. The MAC will reimburse us for that cost, which is about$19,000. He said construction will probably start in late April or early May with construction continuing this season and next. The fields should then be in shape for play in 2013. Case said he didn't recall ever seeing any clear details of the grading. He said the current parking area is on the most westerly side and it then drops off very steeply after that. The trees near there are not particularly special but they do make a nice break, He asked if there is any way to keep the trees if it doesn't interfere with grading. Lotthammer said because of the amount of cut and fill we need to make, it will not be possible to keep the trees. Case said he was talking about the trees on the ridge near the parking lot. Lotthammer said some of those can stay. Case said there are 100's of them CITY COUNCIL MINUTES March 15, 2011 Page 9 along that ridge, and he thought we could keep some of them. It would provide a nice break between the current parking lot and the new area. MOTION: Case moved, seconded by Nelson, to award the bid for the construction of the Flying Cloud Athletic Field expansion to Chard Tiling and Excavating, Inc. Motion carried 5-0. E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS On behalf of the entire Council, Tyra-Lukens expressed her appreciation and thanks for the great job Mr. Lotthammer has done as Interim City Manager. XVI. CLOSED SESSION TO DISCUSS REAL ESTATE NEGOTIATION Rosow said the Council will go to closed session to discuss a counter offer for the purchase of the Rogers property on Duck Lake Trail. He said the meeting will be tape recorded, and the tape recording will be preserved for eight years after the meeting. The recording will be made available to the public after all the real property discussed at the meeting has been sold or purchased. The Council moved to closed session at 8:15 PM. The Council returned from closed session at 8:32 PM. MOTION: Aho moved, seconded by Butcher Wickstrom, to pass on the opportunity to purchase the property at Duck Lake Trail. Motion carried 5-0. XVII. ADJOURNMENT MOTION: Case moved, seconded by Nelson, to adjourn the meeting. Motion carried 5- 0. Mayor Tyra-Lukens adjourned the meeting at 8:34 PM.