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01-08-2024 City Council Regular Meeting MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES JANUARY 8, 2024 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, Councilwoman Schubert, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT: None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie Howley, Public Works Director/City Engineer; George Bender, Assistant City Engineer; Jerry Ruegemer, Park and Recreation Director; Ari Lyksett, Communications Manager; Andrea McDowell Poehler, City Attorney; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Michael Kirsch, Kimley Horn Charles Littfin, 7609 Laredo Drive Brandon Williams, 7611 Laredo Drive PUBLIC ANNOUNCEMENTS: 1. Proclamation Designating January 9, 2024, as Bob Generous Day Mayor Ryan reviewed a portion of the proclamation about Bob Generous’ career and his service to the City of Chanhassen. Ms. Ryan designated January 9, 2024, as Bob Generous Day to recognize his substantial contributions to the city. 2. Commission Vacancies Mayor Ryan shared that the city is seeking individuals to fill vacancies on various commissions. The terms start in April and run for three years. Applications are available on the website through January 26, 2024. Ms. Ryan encouraged residents to get involved in the community. CONSENT AGENDA: Councilman McDonald moved, Councilman Kimber seconded that the City Council approve the following consent agenda items 1 through 18 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated December 11, 2023 2. Approve City Council Work Session Minutes dated November 27, 2023 3. Receive Planning Commission Minutes dated November 6, 2023 City Council Minutes – January 8, 2024 2 4. Receive Park and Recreation Minutes dated November 28, 2023 5. Receive Park and Recreation Minutes dated October 24, 2023 6. Receive Environmental Commission Minutes dated October 11, 2023 7. Receive Economic Development Commission Minutes dated November 14, 2023 8. Approve Claims Paid dated January 8, 2024 9. Approve Site Plan for Affinitech located at 2451 Galpin Court 10. Appoint Acting Mayor 11. Designate Official Newspaper 12. Appointments to the SouthWest Transit Commission 13. Appointments to the Fire Relief Association Board of Trustees 14. Amendment to the Investment Policy Section of the City of Chanhassen Financial Policies 15. Determining the City will not Waive the Statutory Tort Limits 16. Resolution 2024-01: Authorization of Electronic Transfer of Funds 17. Resolution 2024-02: Designating Official Authorized to Declare Official Intent Under Reimbursement Bond Regulations 18. Resolution 2024-03: Declaring Official Depositories of City Funds 19. ITEM POSTPONED: Approve Professional Services Agreement with SEH, Lake Ann Park Preserve All voted in favor, and the motion was carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. None. PUBLIC HEARINGS. 1. Adopt Wildlife Management Plan Park and Recreation Director Jerry Ruegemer shared that the city received concerns from multiple residents in 2023 regarding wildlife. The City Council reviewed these concerns and directed staff to create a wildlife management plan. The city would like to find suitable habitats for animal populations, reduce deer and animal-vehicle collisions, and address residents’ City Council Minutes – January 8, 2024 3 concerns about animal nuisances. The next step is for the City Council to hold a public hearing regarding the Wildlife Management Plan. The city contracted with Three Rivers Park District to complete aerial counts of deer to formulate population numbers and address concerns. Mayor Ryan opened the public hearing. There were no public comments. Mayor Ryan closed the public hearing. Councilwoman Schubert moved, Councilman von Oven seconded that the City Council adopt and approve the Wildlife Management Plan Upon Minnesota DNR approval. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. 2. Resolution 2024-04: Accept Feasibility Study, Conduct Public Improvement Hearing, and Authorize Preparation of Plans and Specifications for the 2024 City Pavement Rehabilitation Project No. 24-01 Assistant City Engineer George Bender reviewed the project schedule and proposed project areas and scope. The project would include public utilities reconstruction and rehabilitation specific to each area, storm system reconstruction, manhole structure rehabilitation, replacement of drain tile, and improvements to the sidewalks, ADA pedestrian ramps, and crosswalk improvements. Mr. Bender reviewed the new private property Infiltration/Inflow (I/I) grant program through the Metropolitan Council to allow property owners access to financial assistance to repair sanitary sewer laterals. Mr. Bender reviewed the city’s efforts in public engagement, including postcards, resident surveys, and an open house. He also provided an overview of the project funding, estimated budget and cost summary, and preliminary assessment amounts. He noted they were over budget and would need to consider ways to reduce project spending. Mr. Bender presented the project timeline with the plan to begin construction in May 2024 and complete the project in November 2024. Councilman von Oven asked for clarification of the colors shown on the preliminary assessment map. Mr. Bender shared that the yellows are single-family housing, and the oranges are multi- family dwellings such as duplexes or apartment buildings. The numbers included are trips per day multiplied by the units, which is how the residential equivalent unit is generated. Councilman von Oven asked how the blues were calculated. Mr. Bender shared that the blues are city property and the Chanhassen Elementary School. He explained that the frontages for the blues were mirrored from the east side of the road as opposed to the west side. The school was recently assessed. The oranges in the upper left side have the possibility of being developed. Mayor Ryan asked what the rationale of the assessment practice is if an apartment building with 60 units gets assessed for 45 trips, but the school is divided into six units but generates a tremendous number of trips. Mr. Bender responded that the city tries to keep the elementary school assessment in a reasonable neighborhood as it is a non-profit enterprise. City Engineer Charlie Howley stated this practice was precedent. Mayor Ryan asked if this was the precedent for all non-profits or just for schools. Mr. Bender responded that this is just the precedent for schools. City Council Minutes – January 8, 2024 4 Councilman McDonald stated that the project construction would be heavy in July and asked for a contingency plan for the 4th of July parade. Mr. Bender responded that this would be determined during the final design and would complete milestones where the contractor can and cannot work at certain times to maintain the parade route in a reasonable condition. Mr. Howley will coordinate with the Parks Department on the parade route and work with the contractor. Councilman McDonald asked if there have been any discussions with the Rotary to help them establish their plans. Mr. Bender stated he has not spoken with the Rotary yet but will follow up with them. Councilwoman Schubert asked how the assessments for the businesses were calculated. Mr. Bender responded that they used average trips per day based on the business itself and the square footage of the building divided by nine (9) to determine the residential equivalent units. Mayor Ryan shared that residents have reached out to her about the mill and overlay of Laredo Drive, which received work in 2008. She asked for an explanation of the rationale of the project scope. Many residents claim that Laredo Drive does not need this work. Mr. Bender shared that the purpose of the mill and overlay is pavement management. To be proactive and properly manage assets, the city plans to complete a mill and overlay every 20 years to maintain the road. The city hopes to see 60 years in the pavement management cycle through regular maintenance rather than just completing work on the worst roads in Chanhassen. Mr. Howley explained the Laredo/Del Rio/Santa Fe area was included in the project because there was an opportunity to add more value to receive better pricing. These roads would need to have the mill and overlay completed in a few years, but if it is completed now altogether, it is more affordable. Mayor Ryan asked if it was not best practice to update the worst roads from a financial perspective. Mr. Howley shared that maintaining current roads is more efficient and a better financial investment. Councilman McDonald asked if there was a full reconstruction of Laredo Drive four to five years ago. Mr. Bender stated there was a full reconstruction of Laredo Drive in 2008. Councilman McDonald remarked that the roads should still be in good shape and asked if there was normal wear and tear on the road. Mr. Howley responded that the road had received normal wear and tear but had cracks. By completing a mill and overlay in the 15 to 20-year period, the road would not have to be reconstructed at 40 years, but the pavement life can be extended to 60 years. Councilman Kimber asked for clarification on the preliminary assessment costs between Chan View and the Laredo/Del Rio/Santa Fe area. Chan View is receiving full reconstruction. Mr. Bender stated the areas are calculated separately. A $3,000 assessment for a mill and overlay fits into the regular assessment. The Chan View area is impacted by high density and calculates below the average on a reconstruction project. Councilman Kimber asked if Del Rio continues to a cul-de-sac, why is only a portion of it being completed in this project? Mr. Bender responded that only a certain portion of the Del Rio Drive cul-de-sac falls into the projected budget. City Council Minutes – January 8, 2024 5 Mr. Howley shared that the price to rebuild a road with an overall condition index of 0 to 40 is the same. The price to rehabilitate a road with an overall condition index of 50 to 70 is the same. The price to rehabilitate a road with an overall condition index of 70 to 100 is the same. Mr. Howley shared that the treatment is the same once you reach a certain point in pavement degradation. There is a normalization in the mill and overlay areas in the assessment on Laredo Drive, which has not been factored in. These numbers are not finalized yet. Councilwoman Schubert asked if the end goal is to have a 60-year life span on roads, if this always includes mill and overlay, or if it includes sealing and cracks. Mr. Bender responded that the mill and overlay is necessary to reach the 60-year life span. Mayor Ryan opened the public hearing. Charles Littfin, 7609 Laredo Drive, shared this is the second assessment in 16 years and believes the assessed price is over the limit. He questioned who is paying the fair share to redo Laredo Drive. He stated the bank and post office should be assessed in this project because they have exits on Laredo Drive. The city has parks on Laredo Drive with parking lots, so the city should contribute more to the project. He stated that Del Rio Drive is falling apart and should be prioritized. Mr. Littfin said residential roads last between 20 and 30 years. He does not want to be taxed and assessed again for the cost of the road when many other residents drive on the road to go to the school. Mr. Littfin had previously asked Mr. Bender why they were completing Laredo Drive, and he claimed Mr. Bender stated they were completing Laredo to keep costs down on the additional roads in the project. Brandon Williams, 7611 Laredo Drive, shared that the math does not make sense. The assessment values are higher with road maintenance rather than road reconstruction. Mayor Ryan closed the public hearing. Mayor Ryan asked Mr. Howley and Mr. Bender to explain why the post office and bank are not a part of the assessment. Mr. Howley stated that the assessment is based on the location of the primary access to the business. Mayor Ryan stated this assessment rule makes sense for a residential property but stated a commercial property generates more trips than a residential property. She questioned whether it would make sense to consider these properties differently than a residential property. Mr. Bender responded that the city could reconsider the assessment policy from a commercial perspective if desired. Mr. Howley stated there needs to be a good precedent set moving forward. Mayor Ryan asked how the school parking lot and city access to the parks are factored into the assessment. Mr. Bender shared that there could be a different normalization technique if desired. When assessing the school, they were basing the information on past precedents. Mayor Ryan asked if the past precedent is based on the dollar value or on the residential equivalent unit. Mr. Bender shared that the past precedent considered past assessment processes. The number would change based on the residential equivalent unit for trips. City Council Minutes – January 8, 2024 6 Mayor Ryan asked if Laredo Drive is being added to the project to minimize project costs. Mr. Bender responded that this was not the case. Mr. Howley shared that each subproject area is standing on its own for math. The opportunity of the project proximity does provide cost savings for everybody. Councilwoman Schubert asked if Frontier Trail would be close enough to be included in the project and if the Laredo Drive rehabilitation project could be moved to a different year. Mr. Bender shared that Frontier Trail is a full reconstruction rather than a rehabilitation. Councilwoman Schubert asked for clarification on proximity for project considerations. Mr. Bender shared that there is too much length to include Frontier Trail in the current project. Mr. Howley shared that there is no set proximity requirement. Generally, Laredo Drive would be close to Frontier Trail to provide savings. The proximity requirement is an estimation. Mayor Ryan asked for clarification on waiting for reconstruction rather than rehabilitation. Mr. Howley shared inflation would impact the reconstruction costs in the future. Mayor Ryan asked if there were any concerns about making an investment in a road that would have heavy equipment traveling on it in the next three to five years. Mr. Bender stated Laredo Drive has a thicker section near the entrance of the school to help carry the load. Mr. Howley added that they are aware that the upcoming Civic Campus project could impact Laredo Drive and that traffic circulation could be discussed. The roads are designed for a certain number of vehicles. They can analyze this impact a bit further. Councilman McDonald recalled that a similar discussion with these questions for Laredo Drive was brought up 16 years ago. He encouraged staff to look back at the records for the answers. He questioned why Laredo Drivee needs to be redone with a pavement condition index rating of 81. He asked the city to reconsider including Laredo Drive in this project. Councilman Kimber questioned whether assessing a road every 15 years was the best practice. This would only include 75 miles of reconstruction. There are roads that need more attention sooner. He requested a long-term plan to consider all city road maintenance. Mayor Ryan asked if portions of the project could be removed and if an alternate bid would change the motion. Mr. Howley said the motion does not allow the city to bid on the project in the way they see fit. Mayor Ryan stated there had been communication to city staff to consider Laredo Drive as an alternate bid, looking at commercial project assessment and long-term planning for road projects. Councilman Kimber asked if the reassessments on the school would be included. Mayor Ryan confirmed this information. Councilman von Oven asked if Laredo Drive were to be removed from the project, when would it be revisited in the future. Mr. Bender stated Laredo Drive would be degrading on a normal curve, and they might find another opportunity to package it with another nearby project, or it might be a stand-alone project in 3-5 years. There might be less discount for the project. Mr. Howley said roads are rated every three years in the city. The overall condition index might City Council Minutes – January 8, 2024 7 increase or decrease depending on multiple factors. If it stays in the mill and overlay range, this could be considered in the future. Councilman von Oven moved, Councilman Kimber seconded that the Chanhassen City Council adopt a resolution accepting the feasibility study, ordering the improvements, and authorizing the preparation of plans and specifications for the 2024 City Pavement Rehabilitation Project No. 24-01. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. GENERAL BUSINESS. None. COUNCIL PRESENTATIONS. None. ADMINISTRATIVE PRESENTATIONS. None. CORRESPONDENCE DISCUSSION. None. 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 8:43 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk