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City Council - 02/03/2015 APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, FEBRUARY 3, 2015 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: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, City Attorney Ric Rosow, and Council Recorder Jan Curielli I. CALL THE MEETING TO ORDER Mayor Tyra-Lukens called the meeting to order at 7:00 PM. All Council Members were present. II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION IV. PROCLAMATIONS/PRESENTATIONS A. EDEN PRAIRIE FTC ROBOTICS TEAM Tyra-Lukens welcomed members of the FIRST Tech Challenge (FTC) robotics team at the Eden Prairie Middle School. Representatives of the team presented a video they had produced, reviewed the FTC program, and provided a demonstration of the robot they had assembled. B. CERT-CSU PROGRAM Assistant Chief Rik Berkbigler gave an overview of the Eden Prairie CERT-CSU initiative. The program is funded by Hennepin County and trains community members to support community disaster recovery and outreach/prevention activities with culturally specific languages and cultural insight. He noted recruits for the CERT-CSU program will undergo a six-week training program. Tyra-Lukens asked if funding is available to sustain the program or just to get the program started. Assistant Chief Berkbigler said it is funded by the Medical Resource group in Hennepin County. CITY COUNCIL MINUTES February 3, 2015 Page 2 Nelson asked if there are age limits for the program. Assistant Chief Berkbigler said many of the members of CERT are retired, but there is no upper age limit. Case asked about the attrition rate and if the trained members could join another community's CERT team. Assistant Chief Berkbigler said they run a class about once a year and the costs are minimal. Several nearby cities have a CERT program so they could join those programs. Aho asked if the upcoming training is only for CSU. Assistant Chief Berkbigler said the training is basically for the CSU people,but there are five-six people interested in CERT who are going through at the same time. C. PUTNAM OSTENSON LAND DONATION (Resolution No. 2015-27) Lotthammer said Mr. Putnam and Mr. Ostenson, long-time developers in the City, have offered to gift Outlot D, Westover Woods, to Eden Prairie. The outlot is located adjacent to the trail crossing under Anderson Lakes Parkway where Purgatory Creek flows under the road. The addition of the outlot would expand the width and buffer of the trail corridor. MOTION: Butcher Wickstrom moved, seconded by Case, to adopt Resolution 2015-27 accepting the gift to the City of Outlot D, Westover Woods, Hennepin County, Minnesota from James L. Ostenson, Patrice E. Ostenson, Richard A. Putnam and Janet L. Putnam. Motion carried 5-0. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Case added Item XIV.A.1. MOTION: Aho moved, seconded by Nelson, to approve the agenda as amended. Motion carried 5-0. VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY,JANUARY 20, 2015 MOTION: Butcher Wickstrom moved, seconded by Case, to approve the minutes of the Council workshop held Tuesday, January 20, 2015, as published. Motion carried 5-0. B. CITY COUNCIL MEETING HELD TUESDAY,JANUARY 20, 2015 MOTION: Case moved, seconded by Aho, to approve the minutes of the City Council meeting held Tuesday, January 20, 2015, as published. Motion carried 5- 0. CITY COUNCIL MINUTES February 3, 2015 Page 3 VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS VIII. CONSENT CALENDAR A. CLERK'S LICENSE LIST B. APPROVE PURCHASE OF 2015 78' QUINT LADDER TRUCK FROM E- ONE C. AWARD CONTRACT FOR TENNIS AND BASKETBALL COURT RECONSTRUCTION AT FRANLO PARK TO MINNESOTA ROADWAYS COMPANY D. APPROVE SUBORDINATE FUNDING AGREEMENT 01 FOR TOWN CENTER NORTH-SOUTH ROAD WITH METROPOLITAN COUNCIL FOR THE SOUTHWEST LIGHT RAIL TRANSIT PROJECT E. APPROVE SUBORDINATE FUNDING AGREEMENT 02 FOR GOLDEN TRIANGLE TRAIL WITH METROPOLITAN COUNCIL FOR THE SOUTHWEST LIGHT RAIL TRANSIT PROJECT F. APPROVE SUBORDINATE FUNDING AGREEMENT 03 FOR SOUTHWEST STATION TRAIL WITH METROPOLITAN COUNCIL FOR THE SOUTHWEST LIGHT RAIL TRANSIT PROJECT G. APPROVE SUBORDINATE FUNDING AGREEMENT 04 FOR THE TECHNOLOGY DRIVE EXTENSION WITH METROPOLITAN COUNCIL FOR THE SOUTHWEST LIGHT RAIL TRANSIT PROJECT H. APPROVE SUBORDINATE FUNDING AGREEMENT 05 FOR LOCALLY REQUESTED CAPITAL IMPROVEMENT ENVIRONMENTAL DOCUMENTATION WITH METROPOLITAN COUNCIL FOR THE SOUTHWEST LIGHT RAIL TRANSIT PROJECT I. APPROVE RELEASES OF AGREEMENTS REGARDING SPECIAL ASSESSMENTS NO. 02-08 AND NO. 02-09 MOTION: Nelson moved, seconded by Butcher Wickstrom, to approve Items A-I of the Consent Calendar. Motion carried 5-0. IX. PUBLIC HEARINGS/MEETINGS X. PAYMENT OF CLAIMS MOTION: Case moved, seconded by Butcher Wickstrom, 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." CITY COUNCIL MINUTES February 3, 2015 Page 4 XI. ORDINANCES AND RESOLUTIONS A. FIRST READING OF AN ORDINANCE AMENDING CITY CODE CHAPTER 5 RELATING TO REGULATION OF PEDDLERS, SOLICITERS AND TRANSIENT MERCHANTS Getschow said the regulation of peddlers, solicitors and transient merchants is problematic as it must balance the protection of residents with the Constitutional protections of speech, expression and religion. The City Attorney recommended updating the City's Code section addressing these activities to ensure compliance with the current laws. Rosow said the ordinance is an attempt to bring the code provisions into compliance with more recent court rulings that deal with protection of speech and expression and religion. It deals specifically with the process to apply for a permit and specifies in more detail the grounds for denial. It provides a more defined process of approving a request for a permit and provides for a public hearing for granting a permit. He said the intent of the ordinance is the same: To regulate the activities of those who go door to door and make sure they are properly registered in the City. Aho noted that one section states the person is not allowed to shout or have amplification of sound and asked if that would prohibit an ice cream truck from going through a neighborhood. Rosow replied that regulation has been in the ordinance prior to this amendment. The code deals with door-to-door activities, and enforcement of the code is based on a complaint being made. Tyra-Lukens asked how this would affect groups such as Girl Scouts selling cookies or groups selling Christmas wreaths. Rosow said such groups would be exempt. Tyra-Lukens asked if there is a stipulation regarding children from Eden Prairie only. Rosow said there is no such stipulation. Nelson asked how this would affect a neighbor going around with a petition or a politician campaigning. Rosow replied those are not commercial activities and would not fall under this ordinance. Nelson asked if all children's activities can continue. Rosow said those are exempt from the ordinance. Case asked if there is a stipulation regarding different types of amplification. Rosow said it is difficult to distinguish between a bell being rung by an ice cream peddler and one being rung by someone selling other items. He suggested staff could discuss this with the Police Department between first and second readings to see if there is some way to limit it. Aho said he was concerned about some of the more objective language, such as that in Subd. 8, Restrictions. He asked who would make the determination of what is reasonable. Rosow replied they tried to make the regulation as objective as possible with the overlay of trying to protect our residents from noisy behavior. He said CITY COUNCIL MINUTES February 3, 2015 Page 5 there was a lot of discussion about what is a reasonable person. He noted the court applies the reasonable person standard on a regular basis to judge if conduct is offensive, so it is a recognized legal standard. The court would apply what is acceptable within the community. Aho asked if the reasonable person criteria would be applied by the person on the scene at the time. Rosow said charging someone in violation of the ordinance would most likely be done by means of a police report taken at the scene which would include witness testimony. MOTION: Case moved, seconded by Butcher Wickstrom, to approve the first reading of an ordinance amending City Code Chapter 5 by amending Section 5.37 relating to the regulation of peddlers, solicitors and transient merchants. Motion carried 5-0. B. FIRST READING OF AN ORDINANCE AMENDING CITY CODE CHAPTER 9 BY ADDING SECTION 9.17 RELATING TO POINT OF SALE INSPECTIONS Getschow said both Items B and C are related to creating a Point of Sale inspection program in the City. There have been discussions related to a Point of Sale, or Truth in Housing, inspection program for quite a while. It was budgeted for in the current year's budget. Prior to implementing the program, we need to amend ordinances to create the program and regulate the independent evaluators. Kevin Schmieg, Building Official, said the purpose of putting the code in place is to stop problems before they reach a point where properties are substandard, such as the property discussed at tonight's Open Podium. He reviewed the progression of codes that are in place for properties in the City. Through aging and without proper maintenance, properties disintegrate and become substandard. This code amendment will set minimum standards for the community, not just for a neighborhood. He said the average age of a single family home in Eden Prairie is 30 years. The majority of homes are over 25 years of age--the age at which we begin to see significant problems. Schmieg said the Point of Sale Compliance Report will be required for any dwelling unit listed for sale. The report can be completed by the City or by independent inspectors. The cost for inspection by a City employee will be $185, and there will be a$30 filing fee. The program is expected to be revenue neutral. He reviewed the list of items that would be inspected, the process for correcting the deficiencies, and the appeal process. Tyra-Lukens noted we have been talking about this for a lot of years. She asked about the effect of the ordinance on those who buy houses for rehab purposes who would be given 180 days to make the necessary corrections but would also have the appeal process to extend the time beyond 180 days. Schmieg replied if there is progress on correcting the deficiencies, there would be no reason not to allow the extra time. Tyra-Lukens asked if the code covers multi-family dwellings, such as condos. Schmieg replied it does. Tyra-Lukens asked if the items required would be CITY COUNCIL MINUTES February 3, 2015 Page 6 items over which the condo owner would have control. Schmieg said that varies by the by-laws of each association and often the exterior maintenance is not the owner's responsibility. Tyra-Lukens noted we are trying to align our rental housing guidelines with owner- occupied homes and asked if our regulations are any more restrictive than any of the other 12 cities that have Point of Sale programs. Schmieg said there are many different formats, and some cities'programs are far more detailed. This code will give Eden Prairie a tool for dealing with distressed properties. Aho asked about the timing if someone wanted to put their property up for sale and got an inspection that found deficiencies but who wanted to defer making the changes. Schmieg said the realtors wanted the deficiencies to be identified prior to a listing so that everybody has knowledge of the deficiencies. The owner would need to have a copy of the report displayed for prospective buyers. Aho commented most banks require an inspection of a property so most people will do their own private inspection. He was concerned about a duplication of effort. He would also not want people to rely on this inspection rather than a full home survey. He asked what the liability to the City would be if issues were found after the buyer purchased a home that had been inspected by us. Schmieg said there will be an exclusion statement as part of the report. They never discourage anyone from having another inspection to address things we don't inspect. We are looking at this for the long term and want to establish a minimum standard for the community. Aho was concerned we could be pushing people out of Eden Prairie with some of these regulations. He has been hearing a lot of concern from realtors the last couple of days and thought it would be good to re-engage with the realtors and get more input. Rosow said this program is very similar to other regulatory processes we have where we do inspections. There is no greater liability for this than any of the other inspections we do. The laws are protective of the City in these circumstances. The obligation undertaken is for protection for the public and not for the buyer, so there is no duty owed to the buyer. Aho asked if we would have to hire more people to do the inspections and what the expected timing would be to complete a home inspection. Schmieg said they would add one full time inspector, which is already included in the budget. We also allow independent evaluations so there are options to use other inspectors. The independent evaluators would need to provide us with a copy of the compliance report and pay the $30 fee. Nelson asked about the extent of damage necessary before a roof would be listed on the report. Schmieg said there would need to be a lot of hail damage or curling or missing shingles. Nelson asked how we would treat deficiencies that would result from water damage in a one-time rain event. Schmieg said those items would be disclosed at the time of the listing. Nelson asked if it would be written up if they fixed the problem. Schmieg replied it would not be a defect if it had been repaired. Nelson asked if the deficiencies found on the initial report can be fixed before the CITY COUNCIL MINUTES February 3, 2015 Page 7 property goes on the market so they could get a new report. Schmieg said the goal is to get a clean report. Rosow noted those types of issues are matters covered by the truth in housing disclosure statement mandated by State law, and that is a separate process. Nelson asked about the exemption for sales by the sheriff. Schmieg said those are typically purchased by the banks. The banks would have to display the report when they sell the property. Rosow said another party can come in and bid against the bank for those properties; however, they would have to pay off the bank for the default and back payments. Tyra-Lukens asked if there would be another fee for the re-inspection report. Schmieg said there would not. Aho said Subd. 7.C. states that all the deficiencies in the report must be repaired and re-inspected prior to the building being offered for sale. He asked how they would get to the point where they don't have to have things done. Rosow said that language should probably be corrected to say the deficiencies must be corrected before the sale is consummated. A professional closer would know which communities have these regulations in effect and would require a re-inspection report to be submitted at the closing. MOTION: Butcher Wickstrom moved, seconded by Nelson, to approve the first reading of an ordinance amending City Code Chapter 9 by adding Section 9.17 relating to Point of Sale inspections, with the correction to Subd. 7.0 suggested by City Attorney Rosow. Case asked about how the real estate community was included in developing the code. Schmieg noted about five years ago staff met with several real estate groups in the City, and they gave a list of concerns they had about a Point of Sale program. He thought their concerns would be the same today. Aho believed there is a feeling of being caught off guard. He would like to encourage staff to again reach out to groups such as the Minneapolis Area Association of Realtors before second reading. Case agreed that was a good idea,but he noted we have been having this conversation for five years in public meetings that anyone can attend. He believed this is a needed program for the City in the long term. VOTE ON THE MOTION: Motion carried 5-0. Tyra-Lukens said those who have concerns can contact Mr. Schmieg or the Council Members regarding certain points before second reading of the ordinance. CITY COUNCIL MINUTES February 3, 2015 Page 8 C. FIRST READING OF AN ORDINANCE AMENDING CITY CODE CHAPTER 5 BY ADDING SECTION 5.76 RELATING TO THE REGULATION OF INDEPENDENT EVALUATORS Getschow said Item B. would require that we have licensing for independent evaluators. He said staff will confer on the timing and rollout of the program and will use the time before second reading to receive feedback. He said there is no immediate time constraint so there is time to reconnect with the realtor community. MOTION: Butcher Wickstrom moved, seconded by Case, to approve the first reading of an ordinance amending City Code Chapter 5 by adding Section 5.76 relating to the regulation of Independent Evaluators. Motion carried 5-0. XII. PETITIONS, REQUESTS AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS 1. Update on the Ice Castle Event--Council Member Case Case asked for an update on the Ice Castle event. Lotthammer said we are about mid-way through the time for the Ice Castle event. We have a one-year agreement with them and a$5,000 damage deposit. Staff wants to get through the spring melt to see how much repair will be needed. He said the event was intended to open on December 26,but they weren't able to open then because the weather was too warm. The structure was completed shortly after that when the weather turned colder. The Ice Castle attracted a very large number of people on Martin Luther King weekend. Staff worked with Ice Castles about interior parking and traffic control. He said they are trying to encourage people to exit out onto Dell Road in order to avoid the difficult left turn situation onto Eden Prairie Road. They have been paying for police officers for traffic control outside of the parking area. Attendance at the event is now at 58,000. He believed it has had a positive impact on local businesses. They plan to make an evaluation of many factors at the end of the event. Butcher Wickstrom asked if there is a large range of ages for attendees. She has heard how much people enjoyed it so she thought it has had a positive impact. Lotthammer replied there has been a range of ages, including church youth groups and school-age groups. Butcher Wickstrom asked if it accessible to wheelchairs. Lotthammer said they have a kick sled or sleigh that can be used to tour the structure. CITY COUNCIL MINUTES February 3, 2015 Page 9 B. REPORT OF CITY MANAGER C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR 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 Aho, to adjourn the meeting. Motion carried 5-0. Mayor Tyra-Lukens adjourned the meeting at 8:40 PM.