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04-10-2023 City Council Regular Meeting MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES APRIL 10, 2023 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilman von Oven, Councilman Kimber, and Councilwoman Schubert. COUNCIL MEMBERS ABSENT: None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie Howley, Public Works Director/City Engineer; Don Johnson, Fire Chief; Eric Maass, Planning Director; Jerry Ruegemer, Park and Recreation Director; Priya Tandon, Recreation Supervisor; Bob Generous, Senior Planner; Andrea McDowell-Poehler, City Attorney; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Leigh Stoakes, Xcel Energy Len Simich, SouthWest Transit Jay Scott, Solomon Real Estate Group PUBLIC ANNOUNCEMENTS: 1. Presentation of Certificates of Appreciation and Maple Leaf Awards to Outgoing Commissioners Mayor Ryan presented Certificates of Appreciation to Markus Fischer, Environmental Commission (2020-2023); and Linda Haight, Commission on Aging (2020-2023). She shared background and history of the Commission Members and thanked them for their service within the City. Mayor Ryan presented Maple Leaf Awards to Karl Tsuchiya, Park & Recreation Commission (2017-2023); and Jerry Cerchia, Commission on Aging (2018-2023). She shared background and history of the Commission Members and thanked them for their service within the City. 2. Invitation to Civic Campus Open House and Facility Tours Mayor Ryan invited the public to City Hall for a chance to tour the building and learn more about the upcoming Civic Campus project from 4:30 p.m. to 7:00 p.m. on Thursday, April 20. She noted the City Council will host a Listening Session at 7:00 p.m. to collect feedback from the public about the project in an informal meeting. City Council Minutes – April 10, 2023 2 CONSENT AGENDA: Councilman McDonald moved, Councilman Kimber seconded that the City Council approve consent agenda items 1 through 17 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated March 20, 2023 2. Receive Planning Commission Minutes dated March 7, 2023 3. Receive Park & Recreation Commission Minutes dated February 28, 2023 4. Receive Commission on Aging Minutes dated February 17, 2023 5. Approve Claims Paid dated April 10, 2023 6. Adopt Juneteenth as a City Holiday and incorporate into Chanhassen Personnel Policy 7. Approve Transfer of Historical Documents and Photos to the Carver County Historical Society 8. Approve Certificate of Compliance - Arboretum Business Park 6th Addition 9. Award 2023-2025 4th of July Fireworks Contract 10. Approve an Encroachment Agreement between City of Chanhassen and Dawn L. Miller. 11. Authorize Execution of a Stormwater Maintenance Agreement with SCP PE Chan, LLC 12. Authorize Execution of Stormwater Maintenance Agreements with Dawn Miller 13. Authorize Purchase of Plow Attachments for Light Duty Pickup Trucks 14. Resolution 2023-31: Approve Settlement Agreement for Parcel 10 as part of the CSAH 101 Improvement Project 15. Authorize Execution of Banking Services Agreement 16. Resolution 2023-32: Authorize Entering Into Teva, Allergan, CVS, Walgreens, Walmart National Opioid Settlements 17. Pothole Patching Contract Change Order All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. None. PUBLIC HEARINGS. None. GENERAL BUSINESS 1. Appointments to the Commission on Aging Councilman McDonald moved, Councilman Schubert seconded that the Chanhassen City Council appoints the following Commissioners to the Commission on Aging for one-year City Council Minutes – April 10, 2023 3 terms ending March 31, 2024: Laura Baumtrog and Gwendolyn Block. All voted in favor and the motion carried unanimously with a vote of 5 to 0. 2. Ordinance 705: SouthWest Village - PUD amendment and Site Plan amendment to allow a Multi-Tenant User and a Drive-Through for a Coffee Shop, 680 SouthWest Village Drive Senior Planner Generous gave a summary of the staff report noting this is an amendment request and site plan approval for SouthWest Village. The proposed PUD is consistent with the land-use designation and staff would recommend approval. In 2006 an overall site plan was approved. As part of the amendment, the applicant is requesting permission for a coffee shop drive-through and revising the commercial building from 8,500 square feet to a 12,600 square-foot footprint. They are also requesting revisions to permit signage on the south side of the building and expand the monument sign. He showed the proposed plans on screen and shared about site plan review on the building, coffee shop, and drive-through stacking area. A traffic study was done, and Mr. Generous noted there should not be problems with traffic circulation on site. He noted that stormwater improvements will be made on-site and architectural details were shown on screen. Staff and the Planning Commission recommend approval of Planning Case #2023-04, PUD Ordinance Amendment and Site Plan prepared by Westwood Professional Services, Inc., dated 02/17/2023, subject to the conditions of the staff report and adoption of the Planning Commission's Findings of Fact and Recommendation. Councilman McDonald asked about signage, specifically the 2-foot expansion to the monument sign and signage above the drive-through. Mr. Generous replied as part of the current Ordinance, Staff does not recommend those signage changes. He provided the language necessary to permit signage on the south side of the building and noted that signage would not be illuminated. Mayor Ryan asked, for consistency, what signage is on the development on the west side of Highway 101? Mr. Generous does not think there is separate monument signage. Mayor Ryan wants to be sure they do not experience stacking issues at the coffee shop. Mr. Generous noted new standards in the city require additional stacking and the Applicant anticipates a 10-stacking and has provided for 14-stacking. There is also an area that cars could back up into that would not impact access to the rest of the site. Jay Scott, Solomon Real Estate Group, and Len Simich, former CEO of SouthWest Transit and owner’s representative for the agency approached the podium. Mr. Scott noted staff has been wonderful and they have been working closely to prevent questionable or challenging issues. Mr. Simich shared about signage on the site noting additional signage helps from a tenant standpoint as there is always concern about whether people will be able to find their business. He City Council Minutes – April 10, 2023 4 stated they can live without those two signs, but they would like them, and the applicant understands about not having the signage lit. He has a concern about the second patio as they are looking at redoing the entire plaza area for emergency access and would like to utilize that space better versus creating another area of hardscape. The council discussed signage and the patio on site. Councilman Kimber is fine with the drive-through sign and struggles with the signage on the building near the patio. Mr. Generous explained either the applicant would need an entrance at the spot indicated on the screen, or the city would need to amend the design standards to permit signage on that side of the building. Mr. Scott explained that the signage in the design was intentional to create architectural interest noting they are glass panels and not doors. Mayor Ryan asked to discuss the monument sign. Councilman McDonald wants this to be successful and any business wants people to know they are there. He thinks the monument sign should be increased and is in favor. He feels the same about the signage on the north face and is in favor of amending the PUD. Councilman von Oven watched the Planning Commission meeting and is not a fan of setting precedence. He is perfectly fine with the monument sign; however, he feels the signage is only allowed because the patio is a loophole to get a sign. He is in favor of allowing the applicant not to create a patio, allowing offices on the side and not having a sign, and creating a precedent. Part of the reason they have this Ordinance is to prevent buildings from looking like strip malls with signs everywhere. The signage above the drive-through would be part of an amendment to the PUD and would not create a precedent. Councilwoman Schubert would rather not see unnecessary hardscape on the north side and does not have a problem with signage on that side without forcing a door there. She is not a huge fan of the monument sign but could probably be convinced. She is fine with the drive-through sign if it is not illuminated. Councilman Kimber spoke about the monument and thinks it is important to have that two-foot expansion. Regarding the drive-through sign, it is important to identify the business that is there and is important. He struggles with the north elevation side and noted the tenant is membership- based with one access in and out with limited access on who is entering and exiting. He also understands the precedent that would set. Mayor Ryan supports the monument sign, is not in favor of the sign on the north side, and is fine with the signage on the south side for identification of the business. She asked how big the menu sign would be. City Council Minutes – April 10, 2023 5 Mr. Generous does not have the details, however, it would be oriented to the drive-through area rather than off-site. Councilman McDonald moved, Councilman Kimber seconded that the Chanhassen City Council adopts the SouthWest Village Planned Unit Development – Mixed Use/Transit Oriented Development, PUD, amendment ordinance and site plan approval for a 12,600 square-foot, one-story commercial building with a drive-through coffee shop subject to the conditions of approval in the Planning Commission staff report, and adopts the Planning Commission's Findings of Fact and Recommendation. He would like to add language that signs along the side of the retail buildings are allowed without an actual entrance, and to allow the monument sign expansion. The motion carried with a vote of 3-2. Councilman von Oven and Mayor Ryan voted nay. 3. Ordinance 706: Xcel Service Center - Rezoning from A-2 to PUD, Site Plan Review, and Wetland Alteration Permit, 1891 Arboretum Boulevard Senior Planner Generous gave a summary of the item noting that the city will be re-addressing the site due to access from the south and the buildings will be A through D for fire purpose designations. The existing site is a farm field with a small wetland in the south-central area and a wetland running diagonal from the northeast corner ending with a stream into a tributary into Bluff Creek. Mr. Generous explained the PUD district is specifically designed for the Xcel Service Center development and the proposed rezoning is consistent with the Comprehensive Plan. Staff recommends approval. He explained the project and showed design plans on screen. The PUD has been amended so that any wall signage on the south elevation will not be illuminated. Screening fences are proposed for the storage areas with additional landscaping between the building and Coulter Boulevard. Mr. Generous walked the council through architectural materials on the buildings and a proposed communications tower. Due to co- location difficulties with another tower, the city recommends Xcel be permitted to have a tower but also provide co-location opportunities for the future. He shared about landscaping, stormwater improvements, grading and erosion control, and sanitary sewer on the site. Mr. Generous explained wetland alteration with credits from Sibley County and the Army Corps of Engineers’ approval of wetland credits which is in process. Staff and Planning Commission recommend approval of the rezoning and site plan approval. Leigh Stoakes, Project Engineer with Xcel Energy, stated they are looking forward to this project and have been working on it for many years. He thanked city staff for their cooperation and support. Councilman Kimber asked if the EV charging stations on the site are for Xcel Energy or for residents. Mr. Stoakes replied it would be strictly for Xcel Energy. Councilman Kimber asked whether there would be a gate on the property. Mr. Stoakes replied there are two security gates. City Council Minutes – April 10, 2023 6 Mayor Ryan thanked Xcel for the change regarding the lighting impact in the neighborhood and asked for clarification regarding the communications tower, the location, and the visual perspective. She noted a concern regarding letting other people lease structures onto that tower. Mr. Stoakes explained that as a requirement for Xcel to have the tower, they are to design it to allow another user onto the tower. Mayor Ryan asked if that adds other equipment to the tower. Mr. Stoakes replied in the affirmative, they would need to add an antenna or other device needed on the tower, as well as to lease space from Xcel for the supporting equipment. Mr. Generous noted it is because of City Ordinance. Mayor Ryan asked if the city has to allow it. Attorney McDowell-Poehler explained the theory that in order to avoid having separate, large cell towers throughout the city, there is a requirement that they must co-locate within a certain distance. Therefore, there would be one large tower with multiple antennas upon it. Mayor Ryan asked how big the structure could ultimately get. Mr. Stoakes replied it is called a monopole structure which is 150 feet tall with one antenna extending another 20 feet. Overall, it is roughly 170 feet high. Mr. Generous explained the other antennas would be at lower elevations. Mr. Stoakes clarified that the antenna allows radio communications between dispatch and crews in the field and is a critical operational function. He shared that the other tower noted in the Staff Report was too low to provide the coverage Xcel needs. In co-locating to that tower, they would need to extend the tower, the estimate was another 60 feet, and below the tower was not enough physical space for an equipment shed and backup generator Xcel would need. Mayor Ryan noted the aesthetics of the communications tower is a concern in that area. She asked about the number of vehicles in storage, maintenance on the trucks, and proximity to Bluff Creek, runoff, and wetlands. Mr. Stoakes replied there will be spaces for 34 vehicles, and a fleet maintenance garage to do repairs, they have stormwater and spill-management plans through Xcel’s environmental group so as not to impact the environment and creek. Mayor Ryan asked about the height of the daycare center. Mr. Generous replied it is approximately 50 feet. City Council Minutes – April 10, 2023 7 Mayor Ryan asked about the building in the plans. Mr. Generous noted it is about 63 feet. Councilman von Oven thinks there are always concerns regarding the tower and the city is in the current situation because the previous tower did not plan for someone like Xcel to come in. He thinks these facilities need towers and the city is doing the right thing by looking at it this way. As a city requires that, he thinks there is ample space at the top and bottom of the tower for co- location, so the city does not need to do this again. He noted an earlier “dumb” question about why, with modern technology, they need a tower that is this high, then he realized Xcel is an energy company and needs it when the electricity goes out. Mr. Stoakes replied in the affirmative, noting it is also a safety thing when crews are in the field and something is not right or expected, they can communicate back to dispatch and know to check in to be sure they are not doing something they shouldn’t. Communication both ways is very important. Councilman von Oven noted there are cell phones so why is a communications tower needed? Mr. Stoakes is not the radio expert but noted the system is built around the radio system. Yes, there are cell phones and they are perhaps used for some part of communication. The radio allows dispatch to talk to multiple crews at once so everyone is hearing the same thing; crews can also talk to other crews. With a cell phone, it is one-to-one, while a radio allows talking to multiple people at once. Councilman McDonald stated the city has faced this problem before and noted studies many years ago regarding bad cell phone coverage at Bluff Creek. A cell tower was put in place for cell usage. To Mr. Stoakes’ point, cell phones do not go everywhere, and in an emergency, that is what radio communications are for, and that is why Xcel has a generator to back things up and stay in communications. The tower does not bother him as much and he shared previous concerns regarding a tower in a rural area near the Eden Prairie airport, and he has not heard any complaints since that time about the tower. He thinks the city required the tower to be painted a certain color. He also thinks cell phones would be the tenants to add to the tower which is critical for the city to have good communications. He is in favor of the project and the tower. Councilman McDonald noted by relocating to the other tower would put the height at 210 feet and would be much more of an eyesore. Mayor Ryan appreciates the Council’s questions being answered and the discussion as she anticipates the questions of “what were you thinking” in the future after the tower is built. She thinks having a better understanding of the need and the use is helpful. She clarified Xcel is building the tower to maximize height for their needs. Mr. Stoakes replied in the affirmative noting they would not need to be any taller. Councilman von Oven moved, Councilman Kimber seconded to adopt an ordinance rezoning the property to Planned Unit Development – Office Industrial Park, PUD, site City Council Minutes – April 10, 2023 8 plan approval for five buildings, a communication tower and screened outdoor storage, and a wetland alteration permit, subject to the conditions of approval in the Planning Commission staff report, and adopts the Planning Commission's Findings of Fact and Recommendation. All voted in favor and the motion carried unanimously with a vote of 5 to 0. COUNCIL PRESENTATIONS. 1. Report on City Manager's Performance Review Mayor Ryan gave a verbal report from a closed session on March 20, 2023, regarding City Manager Laurie Hokkanen. City department heads were asked to provide feedback about Ms. Hokkanen’s city and staff leadership, communications skills, opportunities for professional growth, and an open-ended question for additional comments. The feedback from the team was overwhelmingly positive and Mayor Ryan shared comments including Ms. Hokkanen restoring trust and allowing open and honest conversations, she takes each employee’s strengths and uses them, encourages feedback and that staff is being listened to, is an advocate and supporter of employees and devoted to creating and maintaining a positive working environment as an employer of choice. The City Council also provided extensive feedback regarding communication, strategic planning and budgeting, leadership and innovation, policy, and problem-solving. Mayor Ryan stated that the City Council could not have been more positive regarding how the past two years have gone and explained Ms. Hokkanen’s team environment and positive culture with staff, support of City Council initiatives, and incredible depth of knowledge, is hard-working and transparent, and has instilled trust from residents, staff, and Council. Mayor Ryan noted the City Council voted to approve both the cost-of-living and step- increase for this year. She thanked Ms. Hokkanen for all she does for the city. Councilman McDonald gave a salute to Mr. Ruegemer and the Recreation Department on the Easter Egg Hunt. He was amazed at the number of children and families that came, everyone had a good time with lots of laughter and happiness. He appreciates everything city staff did. ADMINISTRATIVE PRESENTATIONS. 1. Receive 2022 Park and Recreation Department Annual Report Recreation Supervisor Tandon gave a summary of the Annual Report with a brief presentation. She shared the Park and Recreation Department mission statement, and spoke about a Community Day held in August, the 55+ Senior Expo, a summer concert series, and expanded youth and adult programs. Ms. Tandon highlighted trail and facility projects including the Lake Ann Park Preserve project, the Park Equipment Replacement Fund, new playground equipment for Roundhouse Park, and $34,520 in concession revenue. She noted the Park and Recreation Department hosts 10 events throughout the year with over 80,000 attendees across all events. Ms. Tandon shared about the Senior Center attendees and events, the Park and Recreation Center, inclusion support for youth and adults, park maintenance, and partnerships with organizations throughout the community. City Council Minutes – April 10, 2023 9 Mayor Ryan thanked staff for everything they do and stated they do a great job and are the reason that Chanhassen is recognized as being a great community. 2. Implementation of Electronic Sign-in Process for Visitor Presentations, Public Hearings, and Open Houses City Manager Hokkanen stated the city is introducing a new process for those that which to speak at a City Council meeting. She noted two iPads in the chambers to provide electronic sign- in for those attending public hearings, listening sessions, and visitor presentations. Benefits go both ways, as the city will capture correct and legible spelling for the Minutes, and have the opportunity to add someone to the city’s email list. The person coming to speak will also have a clear way of understanding how to participate in a City Council meeting and Ms. Hokkanen wants to make sure it is a good experience for the public. CORRESPONDENCE DISCUSSION. 1. 2023 Building Permit Activity Councilwoman Schubert moved, Councilman von Oven seconded, to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 8:52 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk