City Council - 07/17/2018 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY,JULY 17, 2018 CITY CENTER
5:00—6:25 PM, HERITAGE ROOMS
6:30—7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher
Wickstrom, and Kathy Nelson
CITY STAFF: City Manager Rick Getschow, Police Chief James DeMann, Fire Chief George
Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah,
Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Katie O'Connor
Workshop - Heritage Rooms I and H(5:30)
I. 2019 BUDGET (5:30-5:50)
City Manager Getschow presented the overall 2018-2019 budget and updates to the major
overarching City goals. The two year budget was approved in 2017 and there have been
minor updates. The two year adopted budget was balanced. The City has maintained the Aaa
bond rating, and the City still maintains high quality services for a reasonable price.
Mayor Tyra-Lukens inquired if the budget has become balanced if expenditures were less
than projected or revenue exceeded estimates. Finance Manager Kotchevar stated both have
factored into balancing the budget when it was not initially balanced.
Council Member Aho inquired if expenditures were less in specific areas for this budget
cycle. Kotchevar replied in 2017 the City spent slightly over 100 percent in total. Some areas
came in under budget for expenditures and some are over, which equates to near 100 percent.
Revenues exceeded the proposed budget, therefore the budget was balanced.
Getschow stated the City is innovative yet conservative and efficient with the budget. The
City continues to review fees and charges annually. This year's capital improvement plan
(CIP) projects have a focus on sense of community and sustainability. The current year's
levy is a 3.9 percent increase and the proposed 2019 levy is 3.2 percent. The 2018 budget had
a 4.1 percent increase and the proposed 2019 budget increase is 2.9 percent.
Council Member Aho inquired about the difference in the budget increase and the levy.
Historically, the budget increase is slightly higher than the levy. Getschow responded the
levy constitutes about 70-75 percent of the budgets revenue. The percentages have varied in
years past. There have been years the budget increase is the same as the levy and years there
has not been a levy increase.
Getschow stated debt has remained the same, and the general fund has a 2.9 percent increase.
Historically the capital levy decreased from $1,000,000, and it is now at a moderate increase
with a current balance of$400,000. Tyra-Lukens inquired if the Council has determined how
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July 17, 2018
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long the capital levy should maintain a moderate increase. Kotchevar stated the City reviews
the needs periodically and the contributions of revenue and liquor operations. Getschow
stated there will be discussions on the projections of the capital levy for the 2021 budget.
Aho noted it is necessary to review this periodically based on fluctuating revenue and
franchise fees.
Getschow reviewed the general fund revenue and stated the majority of the increase in
revenue is attributed to the community center. The City reevaluates membership fees every
two years. Aho inquired if the increase is due to increased memberships or increased fees.
Kotchevar stated it is due to both. Tyra-Lukens inquired if these increases could also be
attributed to food sales and fitness classes. Kotchevar stated those, as well as ice rental, factor
into increased revenue. Council Member Butcher Wickstrom inquired if there is a cap for the
amount of memberships. Kotchevar stated Parks and Recreation Director Lotthammer and
Community Center Manager Verley could answer that question best. Getschow added there
is likely much more capacity than there are current members.
Council Member Nelson noted it is problematic that the community center has limited time
for open swim for kids to utilize the pool and slides. Getschow replied staff will review those
times.
Getschow reviewed the general fund expenditures by department. Administration has a
proposed decrease due to no election in 2019. 86 percent of the proposed budget is made up
of wages, benefits, insurance, and utilities. Wages are a proposed three percent increase for
cost of living and additional budgeted increases are for step increases. Health insurance
increases cap at 5.5 percent. Larger increases in the Fire Department are due to the change to
duty crew in recent years. There are still uncertainties with fiscal disparities, but there will be
more clarity in August prior to the Council setting the preliminary levy. Despite those totals,
the proposed levy would not increase. Aho inquired if there is any forecasting for the fiscal
disparities. Kotchevar responded she anticipates fiscal disparities slightly decreasing but is
not certain what numbers the City will receive from the County.
Getschow stated the City has experienced growth in tax base but not a growth in tax rate. The
City has consistently been in the lowest quartile for tax rate, which is lower than most
surrounding cities and Minneapolis. Next steps are to set the preliminary tax levy and budget
in September and adopt the final tax levy and budget in December.
II. VENTURE WORKFORCE HOUSING & INNOVATION CENTER DEVELOPMENT
(5:50-6:20)
Economic Development Manager Lindahl presented on Venture Lane, Minnesota
Department of Transportation (MnDOT) owned land that could be purchased by the City. In
the City's most recent strategic plan for housing and economic development, a desire was
expressed to purchase this property and possibly develop housing or an innovation center
with a collaborative space concept. MnDOT is willing to re-convey 3.92 acres to the City,
appraised at a value of$1,167,000. It is likely worth more to be sold to a developer.
Lindahl stated the land is surrounded by highway with good access and visibility. There is a
desire for vertically integrated mixed use development with a combination of housing and
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July 17, 2018
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retail, specifically space for co-working shared offices. Fueled Collective, formerly CoCo,
has a similar model. The Reserve also has a similar model and provides a combination of
open space, conference room space, and offices. Next steps include a request for proposal
(RFP) in late August, a purchase agreement before Council in January or February 2019, and
potentially the site acquisition in September or October 2019.
Tyra-Lukens inquired who the RFP would be sent to. Lindahl replied there is an ongoing list
of developers, and he will be adding to that list with further research of businesses.
Aho inquired if there would be a focus on startup businesses and mentorship. Lindahl stated
staff would look into that.
Butcher Wickstrom inquired if businesses have been asked what they would like to see in
Eden Prairie. Lindahl stated the City is conducting another business survey this year, which
would be timely. Aho noted the Chamber of Commerce would be a good resource. The City
should encourage a partnership between area schools, such as Hennepin Technical College
(HTC), and local businesses to help promote and fill jobs that require a specific skill set.
Nelson added, students may be unaware of businesses' needs while they are in school.
Butcher Wickstrom added a very high percentage of graduates from technical colleges start
their own businesses. Lindahl noted 1 Million Cups, an organization that inspires
entrepreneurs, could potentially be a part of the innovation center as well.
III. CONCEPT FOR REDESIGN OF BIRCH ISLAND ROAD (6:20-6:30)
Public Works Director Ellis presented with the intention to receive feedback from Council.
The Federal Railroad Administration (FRA) has a risk index formula for a corridor. To
establish a quiet zone, the risk index has to be lower than the national average which may
require improvements to the road. The safest thing that can be done with a railroad crossing
is to eliminate the crossing. Staff reviewed the transportation network and met with traffic
engineers and emergency response personnel to determine the impact of closing off Birch
Island Road. Staff determined there are enough alternative routes. The road would be closed
off with cul-de-sacs at the properties near the railroad crossing. To keep neighborhoods
connected, a paved pedestrian trail would be created. The trail design would incorporate
switchbacks, at grade, for safety measures similar to the railroad crossing near Eden Prairie
High School.
Ellis stated Twin Cities and Western Railroad Company (TCWR) and MnDOT approve of
the design. After speaking with property owners in the area, the overall feedback is in
support of closing the road connection.
Butcher Wickstrom inquired if Indian Chief Road will require road improvements. Ellis
responded the Indian Chief Road risk index is low because the crossing is grade separated.
The road is in good condition, and the bridge is owned by TCWR. The change in traffic
would be minimal, and therefore improvements would not be necessary. If the Council is
considering supporting the Birch Island Road closure, staff would like to hold a
neighborhood meeting.
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July 17, 2018
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Aho inquired if TCWR would be responsible for a portion of the cost if the City replicated
the Indian Chief Road crossing at Birch Island Road. Ellis responded the City most likely
would be responsible for the full funding. Nelson noted the neighborhood would likely
support the closure if the tradeoff is to not have the noise of the train horn.
Ellis stated Birch Island Road is low-volume with an estimated 320 vehicles per day. The
road reconstruction is budgeted at 1.5 million dollars in upcoming years. Aho inquired what
the cost would be to close off the road. Ellis replied the estimated cost of the project would
be about$200,000-$250,000, but it would be funded by MnDOT's closure program with
minimal cost to the City. Staff also proposed installing a gate or closure barrier at the end of
the cul-de-sacs to restrict driving and discourage loitering.
Open Podium - Council Chamber (6:30)
III. OPEN PODIUM
A. JOHN MALLO
John Mallo, 14000 Forest Hill Road, stated gun control has had a history of
racism when gun ownership was denied to newly freed slaves. The NRA has
historically supported gun control in order to deny rights to minorities. Stand-
your-ground laws statistically have not favored minorities. Assault weapon bans
have had a positive effect on gun violence.
Butcher Wickstrom noted there was an additional opportunity for Eden Prairie
residents to provide their opinions on the subject via City Connect. Getschow
added the online dialogue comment period timeline recently ended.
B. RICHARD HODNE
Richard Hodne, 13454 Essex Court, has been a resident for 31 years and a
member of the NRA and Gun Owners Caucus. He spoke against the action the
Council is taking, and he encouraged the Council to not support the moratorium.
C. LEE ZIESMER
Lee Ziesmer,business representative located within the City, stated this action is
fear based. St. Paul and Minneapolis do not have gun shops,but their crime rates
are exponentially higher. He stated the City cannot legally zone these businesses
since they are licensed.
Tyra-Lukens stated, if gun shops are not allowed in St. Paul or Minneapolis it
must be legal to zone.
IV. ADJOURNMENT