Loading...
02-13-2023 City Council Regular Meeting MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES FEBRUARY 13, 2023 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance led by Boy Scout Troop 337. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT: Councilwoman Schubert. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Kelly Grinnell, Finance Director; Charlie Howley, Director of Public Works/City Engineer; George Bender, Assistant City Engineer; James Monge, City Attorney; Jerry Ruegemer, Park and Recreation Direction; Ari Lyksett, Communications Manager; Sharmeen Al-Jaff, Senior Planner; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Boy Scout Troop 337 Curtis Lindahl 7264 Bent Bow Trail Anya Chase 8425 Mission Hills Lane Carrie Christensen 8681 Alisa Lane Mike Menzel 6490 Bretton Way Matthew Hoffman 931 Saddlebrook Trail Karen Engberg 910 Saddlebrook Curve Leslie Erickson 1831 Sunridge Court John Spiess 6610 Arlington Court Anders Jensen 1550 Bluebill Trail Jessica Hemrick 980 Saddlebrook Curve Tyler Schmidt 6699 Mulberry Circle CONSENT AGENDA Mayor Ryan asked to remove Item 20 from the Consent Agenda to Item 2 under General Discussion so that Ms. Hokkanen can provide an update to the public. Councilman McDonald moved, Councilman Kimber seconded that the City Council approve Consent Agenda items 1 through 19 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated January 23, 2023 2. Receive Park & Recreation Commission Minutes dated December 13, 2022 3. Approve Claims Paid February 13, 2023 City Council Minutes – February 13, 2023 2 4. Consider a Request for Approval for a Final Plat, Conservation Easement, Development Contract, and Construction Plans for Fox Ridge Estates 5. Approve Request to Extend Variance 2021-25 for 3703 South Cedar Drive 6. Approve Purchase, Park Equipment Replacement Schedule for South Lotus Lake Park and Sugarbush Park 7. Approve the Annual Renewal of Laserfiche Software License and Support Software 8. Appoint Luke Bame to the Economic Development Commission 9. Appoint Councilmember Josh Kimber to the SouthWest Transit Commission 10. Approve an Encroachment Agreement between the City of Chanhassen and Brian and Elise Bruner 11. Approve Financial Management Policies 12. Approve Infosend Proposal and Professional Services Agreement for Utility Billing Print and Mail Service 13. Approve Officer Change for Kwik Trip, Inc. as it Relates to the Off-sale 3.2 Malt Liquor Licenses for their Chanhassen Stores located at 2201 West 78th Street and 8921 Crossroads Boulevard 14. Resolution 2023-13: Approve Application of the Chanhassen American Legion Post 580 to Conduct Off-Premise Lawful Gambling at Hackamore Brewing Company 15. Resolution 2023-14: Approve Agreement with MnDOT and Twin Cities & Western Railroad Concerning Rail Signal Replacement at Great Plains Boulevard 16. Resolution 2023-15: Approval to enter into a I/I Grant Agreement with the Metropolitan Council Environmental Services (MCES) 17. Resolution 2023-16: Approve 2023 Enterprise Fund Budgets and 2023-2027 Enterprise Fund Capital Improvement Plan 18. Resolution 2023-17: Amend 2023 Cemetery Fund Budget 19. Resolution 2023-18: Designating Official Depositories for City Funds 20. Resolution 2023-XX: Authorize Abatement of Emerald Ash Borer Nuisance on Property Located at 951 West 78th Street - This item was removed from Consent Agenda and moved to General Business. All voted in favor and the motion carried unanimously with a vote of 4 to 0. VISITOR PRESENTATIONS. Curtis Lindahl of Troop 337, chartered by the Victoria Lions, thanked the Council for allowing the Troop to be present and noted they are participating in the Citizenship in the Community City Council Minutes – February 13, 2023 3 merit badge to learn more about how city government works. He shared about the Christmas tree pickup they do every year. PUBLIC HEARINGS 1. Resolution 2023-20: Conduct Public Improvement Hearing and Authorize Preparation of Plans and Specifications for the 2023 City Pavement Rehabilitation Project No. 23-01 Assistant City Engineer Bender gave a presentation on the project noting it is five miles of street rehabilitation by full depth reclamation. He shared about the project including water mains, curb stop valves, upgrades to inflow and infiltration for the sanitary sewer system, adding sump manholes, updating bolts in the valves, and pond maintenance. Mr. Bender noted public engagement included the 5-year Capital Improvement Map on the City webpage, a separate project webpage for the project, a mailing sent to all assessable properties, a postcard/invitation for the open house on February 1, 2023 with about 30 attendees with five comment cards received, and a notification letter about tonight’s public hearing. He shared about feedback received and recommendations including a Devonshire Drive sidewalk connection and Creek Run Trail center island removal. Mr. Bender spoke about the project funding, the city’s assessment policy, franchise fees, and utility-related costs, as well as the proposed project schedule in 2023 and 2024. Councilman Kimber asked for a summary of the comment cards received at the open house. Mr. Bender replied that notification was a theme from phone calls and comments received and the city is looking at improving that, as well as the way streets are funded in the city, and other comments were in regards to residents not wanting the sidewalk. He noted another theme was on retaining the center island foliage. Mayor Ryan asked for clarification on the project at Bramble and Ches Mar and the cost. Mr. Bender shared originally it was flagged as a mill and overlay but after further investigation into the roadway profile the road will not have the longevity that they would like it to have. Public Works Director/City Engineer Howley explained the city could continue to pothole patch the road but staff felt they owed it to the residents of Chanhassen to do something, noting they did want engagement from the public. The city heard from the residents that the pavement was not in good condition and that they wanted the city to do something. Staff really wanted to address the five areas and not ignore them which is why they are being addressed at this time. Councilman McDonald asked if at some point in the future sewer could be added to those areas. Mr. Bender replied more so in the Bramble area. Councilman McDonald asked why the city couldn’t put those sewers in now and have them for a hook up. City Council Minutes – February 13, 2023 4 Mr. Howley noted that is an approach the City could do; however, it would now be a full reconstruction because now they will need to add water main sewer, storm sewer, all new pavement, all new curb, stormwater best management practices, etc. He shared they would now be assessing 100% for water and sewer so those assessments become very big. The city must look at what needs to happen before the hook up can occur such as a lift station on the east side of Powers Boulevard, then getting from the area to the lift station. Mr. Howley clarified many big, expensive things would need to happen and that is why it is a balancing act. Councilman McDonald asked about the feedback from residents noting if it happens in the next ten years they just paid twice for the pavement. Mr. Bender shared that 10 years seems on the optimistic side for getting sewer hooked up, it will be spurred by development, and this neighborhood may not even petition to connect when it becomes available. He thinks it may be more in the 15-year time range and the full depth reclamation should last within 15-20 years. He noted the message from the public was that something needed to be done about the road at this point. Mayor Ryan opened the public hearing. Anya Chase asked how assessments are collected and asked if there is an email signup to receive digital notifications because she did not receive the notification in the mail. Carrie Christensen had several questions, comments, and concerns. She noted she lives on a relatively new road in the development which was built in 1994 and Mr. Bender has provided many pavement reports. She is still confused as to why that road and Alisa Court was slated for full reclamation as opposed to mill and overlay which would be able to maintain the road. According to Mr. Bender the average road is expected to be 40-50 years and now they are saying the reclamation will last 20 years. She spoke about two other areas receiving mill and overlay and stated she is curious about the five-year plan. If Lake Susan HillsWest was included in that plan, Ms. Christensen asked when the residents were notified that they were coming up in that plan? Why weren’t neighbors notified 2-4 years ago that they are coming up in the plan? She received a packet about the hearing tonight but did not receive anything on the open house and she had to find it online. Ms. Christensen said it is a little frustrating as it was not a full-fledged mailing. Leslie Erickson, 1831 Sunridge Court, asked if her neighborhood is still included in the plan? Mr. Bender shared that neighborhood is coming up in the next public hearing tonight. Matthew Hoffman, 931 Saddlebrook Trail, shared they have the original street which has degraded some. He spoke to Mr. Bender today about processes and he is not opposed to the project. His concern is that he received a mailer dated January 13 but due to the postal service it came around January 20. Mr. Hoffman was already committed to be out of town for the open house and could not attend. He is pretty disappointed in the communication process and agreed with Ms. Christensen that the five-year plan is news to him. He reiterated that communication is pretty poor and it is a big concern. City Council Minutes – February 13, 2023 5 Mike Menzel, 6490 Bretton Way, noted it sounds like this has been a policy and procedure for many years and has always been a 60/40 split on reclamation projects. He would like to make sure this has occurred in the past and these residents are not the first on the block to fund these types of road projects through assessments. Karen Engberg, 910 Saddlebrook Curve, spoke about her street and noted that is it a through- way to Powers Boulevard. She asked if the City is putting all charges on them or if there is a pro- ration as it is a through street. Jessica Hemrick shared that she and her eight-year-old have some ideas on how to make the street safer. She noted she and some neighbors were here in 2015 for the traffic study and the concern at the time was that it was a cut-through. The study found a higher-than-average threshold of vehicles cutting through which has led to more and more concern when getting mail from the mailbox or walking the kids across the street to the bus stop. She shared there has been some documentation since 2015 and if the city would like to have a conversation about some of their ideas, Ms. Hemrick is happy to share them. Anders Jensen noted the cost estimate differs from the assessment numbers he saw and asked if anything has changed since the January 13 mailer. He asked if the bolts for some of the sewers (shared during the presentation) were not changed to stainless steel, what is the life expectancy of those underground materials? He asked if they are really critical and need to be changed over. He spoke with his neighbors and no one has really complained about the roads and road condition on Bluebill Trail and wonders how often people have been complaining that the city felt it needed to happen in his neighborhood. John Spiess has been living in his home since 1988 and has seen so many roads being improved over time and people constantly walk on Pleasant View with no sidewalks. The speed limit is 25mph and wonders about a lower speed limit. He does not know how many people have been killed on Pleasant View but he does not think anyone has been killed on Devonshire yet. Mr. Spiess said it has been really great, after living here all these years, to see that when the roads were built it was three feet of gravel with the pavement on top, especially with the Chanhassen clay that expands and contracts. When he hears 50 years for streets, Mr. Spiess noted he has only been here for 34 years and asked if they can just overlay the roads some more and let them go to 50 years? Tyler Schmidt, 6699 Mulberry Circle, noted the assessments have been done since 1994 and asked what the precedent was to move it to an assessment back then. He also asked what other cities in Minnesota and outside of Minnesota do assessments versus funding roads via taxes and tabs. Mayor Ryan closed the public hearing. Mayor Ryan asked Finance Director Grinnell to share about franchise fees to answer some of the questions from residents. City Council Minutes – February 13, 2023 6 Finance Director Grinnell explained that for the special assessments process, there is a timing for the city to send notification. Assuming that assessments are adopted in April/May, residents would have 90 days from adoption of the resolution to pay off that special assessment without incurring any additional interest. The other option is to wait until the end of the year and one would have interest to pay from the day of assessment until the end of the year. The final option would be to have the assessment put on one’s property taxes. The interest rate the city charges is based on 2% above the bonding rate; her best guess is roughly 4-5% bond rate or 6-7% interest rate on the assessment. Mayor Ryan shared about the history of assessments and shared some cities have assessments and others have it as part of their levy. In 2017 or 2018 the City Council considered getting rid of the assessment and putting it on the levy which was over a year-long conversation. For as many people who thought it should be put on the levy, many more were still paying for assessments from the past. In talking about the city portion, assessment, and utility fees, the council understands it is all coming from residents as taxpayers. At that time the city council decided not to get rid of assessments and had multiple listening sessions and public hearings about the matter. One year later, a constant complaint from residents was that they live in a top-tier city and their roads were falling apart and that it was time for the city to start investing in infrastructure. Mayor Ryan noted the city had no way to pay for the deterioration of the roads as they were all coming due at the same time as the city was built. At that time the city council decided a franchise fee would be implemented to help pay for roads and upkeep. In 2019 the city approved the franchise fee. Mayor Ryan shared that every city does something different but this is what Chanhassen has implemented over the last five years in implementing a franchise fee and continuing the assessment practice. Councilman McDonald noted the city looked at it over two years and came up with lots of options to find what was most fair. He noted every city is different with some cities assessing 100% of roads to the residents and other cities building the money into their tax structure. He clarified after the two years the fairest system to everyone is the current system in Chanhassen, although he was in favor of getting off assessments. In two years, it always came back to how does the city treat people who have already paid assessments for up to 20 years? That was the stumbling block that the city could not get past in history. He noted the franchise fee came into being to help pay for the infrastructure of roads built in the 1980s. Mayor Ryan spoke about communication and apologized that the city failed; she noted in the past the conversation around communication was to put something online when a project came due, and for people to be able to get in touch with the contractor, and to communicate better regarding closures due to construction. Mayor Ryan stated looking forward the city can do better and they will do better. Mr. Bender shared about Alisa Lane and showed a slide on screen detailing the options regarding mill and overlay, utility improvements, Americans with Disabilities Act (ADA) improvements, and shared about warranty and legal issues in trying to adjust the project. He also clarified that when talking about a road section being able to last 40-50 years, they are talking about the life cycle. It is not the period between rehabilitations, it is that the city will do the right treatment at the right time, with benefit-cost analysis. He spoke timing from when the original road section is City Council Minutes – February 13, 2023 7 built until they must come in and do the most expensive treatment which is a reconstruction; that is where the timeline comes in. He also noted standards for roads have improved and changed since the 1980s. Mayor Ryan asked for clarification regarding “cut-through streets” and speed limits. Mr. Bender encourages people to go to the city’s website and look at the project page and assessment policy. He noted the city does not pro-rate roads based on traffic volumes. The assessment policy is written from a fairness perspective; for example, a corner lot will not receive two assessments. One is assessed based upon where their driveway is located and everyone, through the normal rehabilitation schedule, will receive an assessment specific to their neighborhood area. Some areas will be higher than others, with higher volumes than other roads, and Mr. Bender noted those roads are designed to carry that volume. Mr. Howley shared about the Traffic Safety Committee noting they look at cases and concerns from residents and discuss monthly. Sometimes action is involved and other times it is educational. He noted in this case, with communications from 2015, the city will look into the concerns raised by a resident regarding safety and the data collected at the time. He shared about speed limits, design, and road mitigation strategies that can help with speeds. Mayor Ryan asked for clarification regarding the bolt material underground. Mr. Howley noted the bolts are in the water main system on a valve and the city knows through experience when a valve blows up and a crew needs to dig it up to fix, it is mostly due to the bolts corroding. He clarified the city is being proactive so they do not have emergencies which cause shutdowns. Chanhassen has bad soils that react to the old metallic systems underground and experience tells them the bolts are corroding and they want to get out in front of the situation. He shared that the bolt work is water main work and not part of the assessment. Mr. Bender noted the city spends a lot more money on an emergency dig when one of those valves goes on one individual repair than on a project such as this one. He shared that it makes financial sense to do it now. Mayor Ryan asked for explanation on how the city evaluates roads and rates them. Mr. Howley said a consultant reviews one-third of the city every year to measure an Overall Condition Index (OCI) from 0-100. Every year the city looks at the Capital Improvement Plan and which roads should be done and whether things still make sense. They base it on “right treatment, right time” and explained how the city uses data, feedback, and the money available to spend on the projects. Councilman McDonald moved, Councilman von Oven seconded that the City Council adopt a resolution ordering the improvements and authorizes preparation of plans and specifications for the 2023 City Pavement Rehabilitation Project No. 23-01. All voted in favor and the motion carried unanimously with a vote of 4 to 0. City Council Minutes – February 13, 2023 8 2. Resolution 2023-21: Conduct Improvement Hearing and Authorize Preparation of Plans and Specifications for 2023 City Mill & Overlay Project No. 23-04 Assistant City Engineer Bender gave a presentation on the item noting after the areas discussed in the previous project had been moved, there are three areas left as noted in this project. He shared about neighborhood meetings in early January. He spoke about the pavement management program fund, assessment policy, estimated budget, and cost summary. Staff recommends proceeding with the project and moving into final design phase and preparing plans and specifications. Mayor Ryan opened the public hearing. Leslie Erickson noted her street was $48,000 and asked the city to explain the mill and overlay process. Mr. Bender replied a machine comes into take off a portion of existing bituminous between 3.5 to 4 inches and would then be repaved. Carrie Christensen asked when the residents were notified of the five-year plan regarding the Lake Susan Hills project. She is not arguing the assessment but she does want to use her money wisely and for everyone else’s benefit, she asked when the city is notifying so people can start budgeting for their assessments. Mayor Ryan noted the notification would have gone out in January; historically the city sends communication around the first of the year when they know what road projects are coming for that year. She stated they are changing that practice to be sure people have the opportunity to budget. She explained the five-year plan is on the city’s website. Mayor Ryan noted it is the city’s responsibility to improve the process. She apologized again and said the feedback received is how the city does better and improves in the future. Mayor Ryan closed the public hearing. Councilman von Oven shared that he had asked about Pleasant View Road and went looking for the plan; he was surprised that it is all out there in front of residents. During new hire orientation the previous week, Mr. von Oven’s questions were many of the same questions the residents had tonight. He noted they can bet there is another person on the city council committed to revise the way the city notifies people in advance so they can plan for them. Councilman von Oven moved, Councilman Kimber seconded that the Chanhassen City Council adopts a resolution ordering the improvements and authorizes preparations of plans and specifications for the 2023 City Mill And Overlay Project No. 23-04. All voted in favor and the motion carried unanimously with a vote of 4 to 0. City Council Minutes – February 13, 2023 9 GENERAL BUSINESS 1. Approve an Encroachment Agreement between the City of Chanhassen and ATT SHOPS, LLC (Chick-fil-A) Mr. Howley gave a presentation on the encroachment agreement noting that Chick-fil-A is expanding their drive-through to two lanes. He shared about an existing drainage and utility easement and the encroachment agreement clarifies that those improvements are on the property owner to take care of. Councilman Kimber moved, Councilman von Oven seconded that the Chanhassen City Council approves an encroachment agreement allowing the property owner of 445 West 79th Street to construct improvements on the property that will encroach into a public drainage and utility easement. All voted in favor and the motion carried unanimously with a vote of 4 to 0. 2. Resolution 2023-19: Authorize Abatement of Emerald Ash Borer (EAB) Nuisance on Property Located at 951 West 78th Street City Manager Hokkanen explained the city’s policy which is to do inspections and remove trees that need to be removed. EAB affects a tree’s structural integrity and makes the tree present a danger to people near the tree if it comes down. She shared about two sections of city code that allow the removal of infected trees. She noted the property owner is aware of the need for the trees to come down and they are making a plan for the removal of the trees. Ms. Hokkanen shared the city will need to get an administrative search warrant before going on a private property if the right-of-entry form is not signed. Councilman McDonald moved, Councilman Kimber seconded that the Chanhassen City Council authorizes abatement of the Emerald Ash Borer nuisance on property located at 951 West 78th Street. All voted in favor and the motion carried unanimously with a vote of 4 to 0. COUNCIL PRESENTATIONS Councilman Kimber thanked city staff for the training a few weeks earlier which was very informative and he learned a lot. ADMINISTRATIVE PRESENTATIONS: None. CORRESPONDENCE DISCUSSION 1. 2023 Building Permit Activity 2. Letter from Kennedy & Graven dated January 30, 2023: 2023 First Half Suburban Rate Authority Assessment City Council Minutes – February 13, 2023 10 Councilman McDonald moved, Councilman von Oven seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 4 to 0. The City Council meeting was adjourned at 9:14 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk