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Home My WebLink About2025-11-12 Special Work Session Meeting MinutesMINUTES OF THE EDINA CITY COUNCIL SPECIAL WORK SESSION COMMUNITY ROOM, CITY HALL WEDNESDAY, NOVEMBER 12, 2025 5:00 P.M. 1.0 CALL TO ORDER Mayor Hovland called the special work session to order at 5:02pm. 2.0 ROLL CALL Answering rollcall were Members Agnew, Jackson, Pierce, Risser, and Mayor Hovland. Staff in attendance: Scott Neal, City Manager; Ari Lenz, Assistant City Manager; Jeff Matlock, I.T. Specialist; Nelly Chick-Brewer, Assistant Finance Director; Pa Thao, Finance Director; Chad Millner, Director of Engineering; Zoe Johnson, City Management Fellow; MJ Lamon, Special Projects & Engagement Manager; Ross Bintner, Engineering Services Manager; Nate Kaderlik, Assistant Director-Utilities; Jennifer Bennerotte, Communications Director; Stephanie Hawkinson, Affordable Housing Development Manager; Bill Neuendorf, Economic Development Manager; and Thomas Brooks, Diversity, Equity & Inclusion Manager. 3.1 UTILITY RATE STUDY UPDATE At the work session, City Manager Neal introduced a continued discussion on the Utility Rate Study, referencing the Oct. 7 session. Nick Anhut, the City’s Financial Advisor from Ehlers, led the presentation, outlining the study’s goals: maintaining financial health of utility funds, promoting conservation and equity, informing capital planning, and estimating bill impacts. The study is intended to guide 2026 rate implementation and reflects updated capital needs projections developed in collaboration with city staff. Anhut presented recommendations for each utility fund. For the water fund, a 5.25% annual rate increase was proposed to meet $114 million in capital needs, with no immediate changes to the current tier structure. For the sewer fund, a 9.25% annual increase was recommended to address $91 million in capital needs and anticipated MCES charge increases. The stormwater fund recommendation included a one-time 15% increase in 2026 to support $98 million in capital improvements. Council members discussed the importance of balancing sustainability with affordability and the risks of delaying investment in infrastructure. A significant portion of the discussion focused on the potential addition of a fourth tier to the residential water rate structure. Council members expressed interest in using a fourth tier as a conservation tool to target high water users, typically in the 85th–90th percentile. Staff and Anhut explained that such tiers are often used to influence behavior without significantly impacting quality of life. Council also discussed equity between residential and commercial users, with staff clarifying that commercial customers already pay proportionate rates based on usage and infrastructure needs. While some members expressed concern about commercial rates, the Council did not pursue changes to the commercial tier structure. Next steps include a first reading of the proposed utility fee ordinance at the Dec. Page 1 2 Council meeting, followed by a second reading on Dec. 16. Council directed staff to prepare for the potential addition of a fourth residential water tier, with the option to notify the public of future changes through an initial ordinance. Council members emphasized the importance of tying conservation messaging to broader budget impacts to help residents understand the connection between water use and overall taxpayer costs. 3.2 TASK FORCE REPORT AND RECOMMENDATION City Manager Neal opened the discussion by providing context for the Human Rights and Engagement Task Force’s formation and progress. DEI Manager Brooks shared reflections on the group’s work over the past year, emphasizing the value of stepping outside the traditional commission structure to explore new approaches to community engagement and inclusion. Task Force Member Dawkins presented the group’s process, timeline, and key findings, which centered on recruitment, communication, inclusion, and collaboration. The task force recommended establishing a new Accessibility, Belonging, and Community (ABC) Commission through ordinance, with a proposed scope that includes advising on city policies, fostering inclusive neighborhoods, and advancing community wellbeing. Council members engaged in a discussion about the proposed commission’s role and potential work plan. Council member Risser highlighted the importance of accessibility in upcoming city projects, while Council member Jackson raised questions about how the commission’s scope would translate into actionable items. Brooks and Dawkins acknowledged past limitations with rigid work plans and emphasized the need for a more flexible, advisory role that brings diverse perspectives to city initiatives. Staff clarified that the Multicultural Advisory Committee (MAC) would continue to serve as the City’s rapid-response group for human rights-related issues, while the proposed ABC Commission would focus on broader, long-term community engagement and inclusion efforts. Council members expressed general support for the direction of the task force’s work, while requesting further development of specific work plan examples. Mayor Hovland and Council member Pierce affirmed the City’s commitment to this work and the importance of maintaining capacity within staff and advisory bodies to respond to emerging issues. Council member Jackson suggested potential work plan items such as mapping engagement gaps and reviewing accessibility policies. The task force and staff agreed to return with more detailed recommendations to help shape the commission’s future role. 3.3 MOTION TO CLOSE SESSION Motion by Member Jackson, seconded by Member Agnew to closer session as permitted by M.S 13D.05 Subd. 3 to discuss the sale of real property located at 5146 Eden Avenue. Motion carried. 3.4 CLOSED SESSION Economic Development Manager, Bill Neuendorf, brought this topic to the City Council to discuss the sale of property located at 5146 Eden Ave as changes to the original proposal require more conversation between staff and City Council. 3.5 MOTION TO MOVE TO OPEN SESSION Minutes/Edina City Council Work Session/November 12, 2025 Page 2 Motion by Member Jackson, seconded by Member Agnew, to move back into open session. Motion carried. 4.0 ADJOURNMENT Mayor Hovland adjourned the meeting at 8:02 p.m. Respectfully submitted, Sharon Allison, City Clerk Minutes approved by Edina City Council, December 2, 2025. James B. Hovland, Mayor Audio copy of the work session available. The closed session is non-public. Sharon Allison (Dec 3, 2025 11:41:38 EST)