Loading...
05-08-2023 City Council Regular Meeting MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES MAY 8, 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, Councilwoman Schubert, Councilman McDonald, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT: None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie Howley, Director of Public Works/City Engineer; George Bender, Assistant City Engineer; Eric Maass, Planning Director; Jerry Ruegemer, Park & Recreation Director; Ari Lyksett, Communications Manager; Andrea McDowell-Poehler, City Attorney; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Pamela McGrann 6540 Fox Path Eric Carlson 7100 Ches Mar Drive PUBLIC ANNOUNCEMENTS: None. CONSENT AGENDA: Mayor Ryan asked to remove item D7 from the Consent Agenda to discuss under General Business. Councilman McDonald moved, Councilman Kimber seconded that the City Council approve the following consent agenda items 1 through 6 and 8 through 11 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated April 24, 2023 2. Receive Park & Recreational Commission Minutes dated March 28, 2023 3. Receive Commission on Aging Minutes dated March 17, 2023 4. Approve Claims Paid May 8, 2023 5. Approve a Memorandum of Understanding with the Rotary Club of Chanhassen for the 2023 4th of July Celebration 6. Award Contract for 2023 Pavement Striping City Council Minutes – May 8, 2023 2 7. This item was moved to Item G1 under General Business. 8. Resolution 2023-37: Approve Application of Chanhassen Brewing Company to Dispense Intoxicating Liquor off premises in City Center Park Plaza during the 2023 Chanhassen Summer Concert Series 9. Resolution 2023-38: Approve Limited Use Permits with MnDOT 10. Resolution 2023-39: Call for Assessment Hearing for the 2023 Mill & Overlay Project No. 23-04 11. Ordinance 708: Approve Amendment to Section 2-46.13(b) of Chanhassen City Code Amending Economic Development Commission Membership All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. Pamela McGrann, 6540 Fox Path, was not able to attend the open house for the redevelopment of the City Campus and commented that she has been appreciative of how carefully the City Council handles the budget and prioritizes expenses. In looking at the plans and evaluation by the construction company, she is in favor of adding on to the current building and would rather see a more cost-effective solution like an addition. Reasons include making economic sense, unforeseen expenses such as spending more money on fire and police as the city grows, and spending money on human capital (mental health services) rather than construction capital may be important going forward. She also spoke about increased regulation and higher quality water and sewer coming down the pike noting that the water in Chanhassen has chemical compounds that are probably higher than they should be. She believes guidelines will lower the acceptable amount and thinks the City Council may want to consider an addition to the building and putting some money into human capital. PUBLIC HEARINGS. 1. Resolution 2023-40: Accept the Bids and Award the Contract for the 2023 City Pavement Rehabilitation Project; and Resolution 2023-41: Adopt Final Assessment Roll Assistant City Engineer Bender gave a presentation on the 2023 City Pavement Rehabilitation Project, key dates related to this project, the approved plans and specifications, and six responsive bids received on April 7, 2023. He shared about public notice including notification letters and assessment amounts, two open houses, and tonight’s public hearing. Mr. Bender explained that the significant decrease in special assessment amounts is thought to be primarily due to existing market conditions at the time of the bid. He presented the remaining schedule, overall budget including Alternatives No. 1 and 2, and staff finding that the project is within budget, the final assessment amounts are within the standard range the city typically sees, and are reasonable for the work being specified. City Council Minutes – May 8, 2023 3 Mr. Bender stated that staff recommends the City Council hold a public hearing and adopt a resolution accepting the bids and approving a contract to Northwest Asphalt with Alternatives No. 1 and 2 included. Staff also recommends that the City Council adopt a resolution adopting the final assessment roll for the 2023 City Pavement Rehabilitation Project No. 23-01. Mayor Ryan asked for a summary of the public feedback so far. Mr. Bender noted that the vast majority are in favor of the project; as always there are some who question how it is funded and do not like the assessments. After discussion, sometimes they can come to an understanding of why it is funded through assessment and not through taxes. Councilman von Oven asked if the city has adjusted communication for the future in thinking about 2024. Mr. Bender replied in the affirmative, noting the city has sent a notification letter to the properties affected by the 2024 projects. After budgeting is done and the Capital Improvement Map is adjusted, the city will send a notification to the 2025 properties. Director of Public Works/City Engineer Howley stated the city sent the 2024 notifications one month ago and today, 30 of those have signed up for Notify Me. Mayor Ryan opened the public hearing. Eric Carlson, 7100 Ches Mar Drive, noted he did not receive an invite to the open house on May 2. He is here to address the Ches Mar portion of the project, noting the quoted costs were in the range of $5,500 if completed with other projects or $7,500 if it was standalone. Mr. Carlson’s assessment came in at $8,344.75, a 51% increase from what was quoted on the project. He is also representing Barb Johnson, age 81 and on a fixed income, noting the additional cost is concerning. He noted the road has not been maintained in the 11 years he has lived on Ches Mar Drive and a neighbor stated there has not been any rehabilitation work done on the road in 21 years. Due to lack of maintenance, the road is much worse than they believe it should be had it been maintained. Mr. Carlson’s concerns were stated clearly in January in a meeting with Mr. Bender and now they are being asked to pay 51% more than what they had agreed to. He is here representing two of the three parcel members in stating they feel that the cost difference of $2,844.75, exceeding what they were told the combined project estimate would be, should be the city’s responsibility. Mr. Carlson stated that they pay tax dollars to maintain the road and their road has not been maintained. The road clearly needs to be replaced and he appreciates the City Council’s consideration. Mayor Ryan closed the public hearing and returned the discussion to the City Council. City Council Minutes – May 8, 2023 4 Councilwoman Schubert asked whether there is a precedent if the City Council tabled the Ches Mar Drive project until the next meeting and voted on everyone else but that area, as she wants to be sure they are addressing Mr. Carlson’s concerns. Mr. Bender deferred to Attorney McDowell-Poehler as he does not believe that in his time with the city an individual area has been tabled. Attorney McDowell-Poehler agreed with Mr. Bender. Mayor Ryan noted that is something the City Council can consider. She asked Mr. Bender to explain how the assessment went from the understanding of $5,500 to $7,500 and to over $8,000 as that is where the confusion lies. Mr. Bender explained that at that time the city was looking at a mill-and-overlay project; after additional engineering and geotechnical information, it was determined that a mill and overlay is appropriate for the project. He agrees with Mr. Carlson that the road is not in good condition and that does not lead to a mill-and-overlay project being successful. Mr. Bender noted no guarantees were presented at the aforementioned meeting and there was discussion about going to full-depth reclamation (FDR) which explains the range of numbers presented at the time. He understands the difference between $7,500 and $8,300 is a bit more and agrees with that; he presented an area that the city tried to help those property owners noting there are two Carver County park parcels on Ches Mar Drive which are included in the assessment calculation creating five parcels rather than three parcels. He noted that the problem is that there are only three parcels on that stretch of road which is why the assessment number is higher. Mayor Ryan asked who was involved in the conversation mentioned and if the price ranges were shared with residents. Mr. Bender noted it was himself, Project Engineer Erik Hendrickson, and the 4-5 residents who attended the meeting. Those discussions are an initial “feeling out” process to see if residents want something done for the road, which was the primary point of the discussion and included the city trying to give estimated ranges on the project. Until the design process happens, it is hard to estimate costs and Mr. Bender noted they were much higher on this project. Mayor Ryan asked about the comment that the road has never been touched, asked about mill and overlay versus full-depth reclamation, and the question whether this road has never been touched before. Mr. Bender stated that as far as he is aware it has not received major rehabilitation such as a mill and overlay or a full-depth reclamation; however, it would have received regular maintenance such as pothole patching. Mr. Howley clarified that in adding Ches Mar Drive, the Bramble project, and some of the other roads, it was the acknowledgment that some roads do not have utilities underneath them that City Council Minutes – May 8, 2023 5 have not received any maintenance. Staff, with Mr. Howley as Director, noted they owe it to the residents to do something because the roads are in tough shape, which the city acknowledges 100%. The outreach spoken about with Mr. Bender was a discussion that the city was thinking about doing something and whether the residents were comfortable with it; if they were fine with a gravel road, they could turn it into a gravel road. If the residents would rather invest some money in assessments, the city could do a project. He noted that was the “feel-it-out” of the meeting and Mr. Bender acknowledged that they clearly thought it would be a mill and overlay, which was not correct. He noted the road would fall apart immediately with a mill and overlay and needs to be a full-depth reclamation. Had the city known that at the time, the numbers would have been a lot closer to those noted this evening, if not higher. Prices are high because of how unique the project is, and he would argue the cost of the project is not because the city has not maintained it for 50 years; if they had one mill and overlay 30 years ago, they would still be doing a full-depth reclamation tonight. He noted the City Council could assess whatever they want but it might be difficult to decide and noted if they table there is a construction schedule that would give or take losing two weeks. Mayor Ryan noted it has not been done and asked whether it is allowed to table the individual project while still allowing to move forward with the other projects. Attorney McDowell-Poehler will defer to City Manager Hokkanen’s idea which is to adopt the resolution tonight. The City Council can always adjust it, if it is appropriate, for those residents after the fact. This would be an amendment to the resolution to the assessment amount. She noted it could be at the next meeting or two or at any time. Councilman Kimber asked where the initial $5,500 estimate came from as it is a big jump. Mr. Bender noted it would have been a range associated with a mill and overlay or a full-depth reclamation job due to additional expenses associated. A mill and overlay was estimated at around $5,500 and a full-depth reclamation was estimated in the $7,500 range. Councilman Kimber asked about the percentage changes, noting Mission Hills is 35% lower than the initial assessment and Saddlebrook at 26% lower than the assessment, and Ches Mar Drive is only 3% lower. Mr. Bender noted that it is a length versus the number of roadways versus the number of parcels. However, it is based on the numbers given by the contractor and noted that they break down the numbers by individual area in the bid. He shared about the two smallest areas with lineal footage and the contractor having to move equipment around. He would speculate to say that it is based on the length versus the number of properties. Councilman von Oven asked how it became a full-depth reclamation. Mr. Howley explained that the city received more information from a geotechnical investigation that changed the project from mill and overlay to a full-depth reclamation. City Council Minutes – May 8, 2023 6 Councilman von Oven clarified that in a February meeting the $8,619 would have been communicated with all three property owners on the street. Mr. Bender replied in the affirmative. Mayor Ryan noted Mr. Carlson did not get notification of that meeting and so was unaware. She asked if Ches Mar Drive is removed, would Northwest Asphalt rebid the entire project. Mr. Bender thinks it is a smaller area and a conversation would have to be had with Northwest. It could be a reasonable ask from a change-order perspective. Attorney McDowell-Poehler agreed and does not know if the contract has language regarding the removal of projects or decreasing the scope of work. Mr. Howley noted the city looked at that, but the language could not be added because it was too extensive. Attorney McDowell-Poehler stated that the city may need to negotiate with the contractor and perhaps need to rebid it if changes were significant. Mayor Ryan stated that if the city pulls Ches Mar Drive from the project the price could be higher in the future. Mr. Bender agreed. If the city asked Northwest to start in a different area than Ches Mar Drive, he thinks they would be receptive, given what was discussed tonight. Mr. Howley clarified that if Ches Mar Drive were a project by itself, bid alone, it would likely be higher than the price the city has received. Mr. Bender agreed. Councilman Kimber heard that the road needed repair, so the city changed the scope and thus the amount changed. In taking out Ches Mar Drive and looking at the other six projects, the average price change was about 3% and asked if the city could apply that same discount to Ches Mar Drive which puts them at $2,005 less than the assessment. Councilwoman Schubert asked if the city would then need to apply the discount to the two county properties. Mr. Bender clarified that the two county properties are not being assessed but are included in the calculation to benefit the three properties that are being assessed. They are non-revenue properties. City Council Minutes – May 8, 2023 7 Councilman von Oven asked what they tell people over the next three years that see a final assessment and are not receiving a discount. He noted opening that Pandora’s Box makes him extremely nervous. He would want to know something specific about this case that can be reproduced as a solution in the future. Councilman McDonald stated there is a reason the road hasn’t been taken care of in 20 years and in his experience, they may not have wanted it. He is not in favor of giving a discount because once the city does that, they are in trouble. Other streets in the past years have approached the city for a discount and they do not want to get into that business as it has become a question of fair application across the board. He is sorry the assessment went up, however, they cannot do a mill and overlay. He noted that if they pull the project, the price could go up another $2,000 on top of the $8,000. Mr. McDonald clarified that if the city gives a discount, it is coming out of the pockets of their neighbors. Councilman Kimber understands that it would set a future precedent and thanked Councilman McDonald for his explanation. Councilwoman Schubert would like to table for two weeks and get more information on past pothole patching, as well as why the property owners were not notified. She would feel more comfortable voting with those answers. Mayor Ryan initially wanted more information like Councilwoman Schubert. She does not know how that would change the situation, and she is very concerned about precedent if the council starts changing assessments for some neighborhoods over other neighborhoods. Going forward she wants to send notifications with clear communication on the project so they are not in a situation like a mill and overlay versus a full-depth reclamation. Councilman McDonald moved, Councilman von Oven seconded that the Chanhassen City Council adopt Resolution 2023-40, accepting the bids and approving a contract to Northwest Asphalt with Alternatives No. 1 and 2 included and adopt Resolution 2023-41 adopting the final assessment roll for the 2023 City Pavement Rehabilitation Project No. 23-01. The motion carried with a vote of 4 to 1. Councilwoman Schubert voted nay. Councilman McDonald asked whether the city could lengthen the time period of the assessment to lower the annual costs for those property owners. Attorney McDowell-Poehler noted that the City could do that and would have to adopt a new assessment resolution. She would need to look into it. Ms. Hokkanen explained that the policy states that an assessment of this amount can be paid back over 10 years. She will work with Mr. Howley regarding communication and options the council can consider. City Council Minutes – May 8, 2023 8 GENERAL BUSINESS. 1. Resolution 2023-42: Authorize Entering into a Joint Powers Agreement with Carver County for Trail Rehabilitation along County Highways 17 and 101 Mayor Ryan noted receiving several comments from residents about the safety of crossing around the Lake Susan Hills area. There will be a road and trail project, however, crosswalks and flashing lights are a concern with the rate of speed people travel on the road. She would like to open a conversation and put a little pressure on Carver County to address the concern of the residents. Mr. Howley noted that the city is leveraging Carver County’s road project to repave the city’s trails. The Traffic Safety Committee has received concerns about a particular intersection at the crest of the hill. The city developed a pedestrian crossing policy and if it were a city road (pedestrians and bikes take priority over vehicles), the policy would require an improvement such as markings, zebra crossings, paint, and signs. The county has its own policy (vehicles take priority over pedestrians), and an issue here is the number of people who utilize the crosswalk. If it is not 20 in an hour, it does not check the box for the county. With this project, it would be the time to improve the crosswalk and the city will make a recommendation for an improvement there, however, it is the county’s road, and they could decide to do it or not to do it. He heard from the county earlier that if pedestrian volumes increased, they would be happy to do a project. Mayor Ryan spoke about the Avienda project coming with people biking/walking into the city’s downtown. Councilwoman Schubert asked about the best way to communicate to the county. Mr. Howley wants to be sure the city remains a good partner with the county and does not want to “throw them under the bus.” Residents could find transportation safety staff on the county’s website. Councilwoman Schubert moved, Councilman Kimber seconded that the Chanhassen City Council adopt a resolution authorizing entering into a Joint Powers Agreement with Carver County for trail rehabilitation along County Highways 17 and 101. All voted in favor and the motion carried unanimously 5 to 0. COUNCIL PRESENTATIONS. Mayor Ryan thanked everyone who came and planted trees on Arbor Day. She congratulated Daisy Anderson who was awarded Firefighter of the Year in the Chanhassen Fire Department. ADMINISTRATIVE PRESENTATIONS. None. CORRESPONDENCE DISCUSSION. None. City Council Minutes – May 8, 2023 9 Councilman Kimber moved, Councilman McDonald 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 8:29 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk