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11-28-2022 City Council Work Session MinutesCHANHASSEN CITY COUNCIL WORK SESSION MINUTES NOVEMBER 28, 2022 COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilwoman Rehm, Councilwoman Schubert, and Councilman Campion. COUNCIL MEMBERS ABSENT: None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie Howley, City Engineer/Public Works Director; Kelly Grinnell, Finance Director; Jerry Ruegemer, Park & Recreation Director; Rick Rice, IT Manager; Jill Sinclair, Environmental Resource Specialist; and Ari Lyksett, Communications Manager. PUBLIC PRESENT: Ryan Pesch, University of Minnesota Extension Center for Community Vitality (via Zoom) Liz Kohane, 6870 Yuma Drive Mayor Ryan called the Work Session to order at 5:30 p.m. 2023 LEVY DISCUSSION Finance Director Kelly Grinnell reviewed that at the November 14, 2022 Work Session, budget details were narrowed down to where the final levy increase would be dependent on the total amount levied for trail maintenance. Ms. Grinnell distributed and presented a chart showing the annual city tax comparison from 2022 to 2023 for levy options of 5.2%, 5.9%, 6.2%, 6.3%, and 7.2%. A second chart was distributed and presented showing the monthly city tax increase for the same levy options. Mayor Ryan made a point of clarification that the comparisons provided are based on the assumption that the differential between 5.2% and 7.2% would go towards trails, and the budget surplus would be used for park renovations. Ms. Grinnell responded that her understanding that the consensus from the previous work session was that two of the three parks recommended for renovation would be funded; however, she added that there was an adequate fund balance to fund all three parks. Council discussed whether to allocate two or three parks in the budget. The consensus was to renovate two parks in 2023 and wait and see if additional surplus funds become available before making the decision to renovate the third park. Mayor Ryan surveyed the council on the levy increase amount they would support. City Manager Laurie Hokkanen reminded council that they do not need to come to a consensus at this meeting. Alternative motions can be provided in the staff report for final approval of the levy. The public hearing on the proposed budget is scheduled for Monday, December 12, 2022 at 7:00 p.m. EMERALD ASH BORER UPDATE Environmental Resource Specialist Jill Sinclair stated that the city is focused on two aspects of the Emerald Ash Borer (EAB) infestation: public trees in parks and right-of-way, and private trees which per city code are inspected and marked for removal if they are infested. Ms. Sinclair defined EAB and described how the insect infects the ash trees, and the signs and symptoms of infestation. Tonight’s presentation is to provide council with information on the status of the infestation and the expected exponential population growth. The city maintains an inventory of public ash trees, provides education City Council Work Session Minutes – November 28, 2022 2 and outreach, and performed phased tree removals in order to protect and preserve healthy ash. Approval of a contract with Rainbow Treecare to provide tree injection services is on tonight’s city council agenda. The city has treated about 700 ash trees with pollinator safe insecticide via trunk injection. Rainbow Treecare claims that these treatments are 99% effective. Starting now until March, city staff will be inspecting trees for EAB and marking them for removal. Untreated trees on private property can be a financial burden to property owners, particularly if there are a large number of infected ash trees in their yards. Ms. Sinclair described various options offered by other cities that provide assistance with tree removal on private property. Treatment is the best and easiest option; however, not everyone is going to treat their trees. Another option is to encourage residents to plant new trees by providing low or reduced-cost trees to residents. DISCUSS CITY COUNCIL APPOINTMENT City Manager Laurie Hokkanen congratulated Councilmember Rehm on her election to the State House of Representatives District 48B effective January, 2023. Since Councilmember Rehm’s term does not expire until December 31, 2024, a new council member will need to be elected or appointed. Ms. Hokkanen explained that the city can either hold a special election or appoint someone to complete the remaining two-year term. Historically the city has not held special elections to fill a vacancy due to the cost, and statute does allow appointment if there are two years or less remaining in the term. Ms. Hokkanen provided a proposed timeline for publication of the vacancy, interview schedule, and appointment date. Interviews were tentatively scheduled for Wednesday, January 18, 2023 at 5:30 p.m. DISCUSS 2023 LEGISLATIVE PRIORITIES City Manager Laurie Hokkanen explained that the city council annually adopts legislative priorities to help the city be more responsive in terms on lobbying on issues that are important to the city. Proposed changes for 2023 include reordering the issues in order of importance with Transportation being number one, adding the Local Option Sales Tax, and Carver County Issue No. 13 which provides new pathways to becoming a police officer or licensed deputy. Adoption of the 2023 Legislative Priorities is scheduled for December 12, 2022 prior to the legislative session starting on January 3, 2023. Mayor Ryan recessed the Work Session at 6:50 p.m. Mayor Ryan resumed the Work Session at 7:10 p.m. TREE POLICY DISCUSSION Environmental Resource Specialist Jill Sinclair presented concerns as to whether or not the city’s tree preservation ordinance was doing its job. This ordinance was adopted in 1994 because residents expressed concern about tree loss with development. It was designed to be a comprehensive and progressive approach focused on overall canopy cover, as well as allowing for flexibility to accommodate different site conditions and development proposals. Canopy cover reflects the health and viability of the community economically, environmentally, and socially. There is an opportunity to add an amendment to the existing ordinance for heritage trees and revise our standards for tree removal. Ms. Sinclair discussed that Chanhassen’s tree preservation city code is difficult to compare to other communities due to differences in expectations. There is no perfect tree preservation ordinance; however, all ordinances allow for excess tree removal and provide incentives for meeting requirements or providing penalties for not meeting requirements. Ways to improve the existing ordinance include reducing canopy cover removal allowed, increasing consequences, and adding heritage or legacy tree City Council Work Session Minutes – November 28, 2022 3 protection. Currently, the city’s ordinance allows a developer to go below the minimum which is most applicable for properties with minimal existing canopy of low quality. Also, the ordinance may be too lenient for high canopy cover sites. Changes could be to increase the penalty ratio or eliminate the option to go below the minimum. Ms. Sinclair stated that heritage or legacy tree preservation codes are based on a tree count method rather than a canopy cover method. Only trees of a certain size are counted. Some communities only count tree certain species of certain sizes which leaves a large number of trees unaccounted for and unprotected on wooded properties. A potential heritage tree addendum would be that heritage trees 25” DBH and larger require no net loss of inches (1:1 replacement inches), and applied to all construction sites in the city including development applications, renovations/additions, lakeshore alterations, etc. Ms. Sinclair provided a sample ordinance application with a heritage tree amendment and a minimum canopy standard. Ms. Sinclair recommended that the city keep the existing canopy cover as the basis of the tree preservation ordinance, add a heritage tree component, and increase the penalty for removing canopy in excess of minimum allowance or remove allowance and only allow minimum or above. Council discussed the current issues and proposed changes to the existing ordinance and directed staff to obtain feedback from the Planning and Environmental Commissions as well as developers prior to moving forward with an amendment. Ms. Hokkanen suggested that a draft proposal be created and presented at a future work session. DISCUSS LOCAL OPTION SALES TAX City Manager Laurie Hokkanen reviewed the purpose of a local option sales tax (LOST) as an option to fund regional park projects, specifically a public/private partnership with the developers of Avienda. The developers have brought in an architect and are talking to other private partners in an effort to move this partnership forward. The city hired the University of Minnesota Extension Office (UMEO) to do a study on the potential proceeds of a LOST and who would pay the sales tax. Ms. Hokkanen introduced Ryan Pesch, Extension Educator from the University of Minnesota Extension Center for Community Vitality, who authored the study. Mr. Pesch discussed the data and reviewed the methods and approach to attain the conclusions in the report, as well as highlighting portions of the report. Ms. Hokkanen reviewed the process of establishing a LOST: • City Council adopts a resolution indicating the city’s desire to ask constituents to consent to a LOST • Resolution submitted to the legislature to obtain approval • Legislature approves request • City holds referendum within two legislative seasons of receiving approval o Each project must be regional and a separate ballot question • If referendum passes, LOST can be implemented and tax can be collected for up to 20 years If the council is interested in moving forward with a LOST, Ms. Hokkanen suggested the following steps: • Pass the resolution on December 12, 2022, prior to the legislative session beginning on January 3, 2023 • January to May – work with the legislature to get approval as well as working with the Avienda partners to scope the project City Council Work Session Minutes – November 28, 2022 4 • Summer and fall – communicate to residents about the proposed project • November 7, 2023 – hold a special election if we are ready • November 5, 2024 – hold referendum in conjunction with the General Election if we were not ready in 2023 Mayor Ryan provided feedback received from the park referendum process to the Avienda team of the must-have facilities. They have been working with an architect on designing a building that would house three ice rinks, a large turf facility, a walking track, meeting facilities, add an environmental element using the terrain, and a restaurant component. No commitments have been made at this point but the developers have ideas and are talking to private businesses that are interested in being involved in leasing the space. The LOST is integral to making the partnership work. Council discussed how the public/private partnership would work. Ms. Hokkanen stated that is a big issue that would need to be worked out through a contract or joint powers agreement outlining what the city would be entitled to with our contribution. Ms. Hokkanen asked for council input on moving forward. FUTURE WORK SESSION SCHEDULE Date Item December 12 • Work Session Cancelled January 9 • January 24 • Civic Campus Update The work session adjourned at 8:40 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk