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03-18-2024 City Council Work Session MinutesCHANHASSEN CITY COUNCIL WORK SESSION MINUTES MARCH 18, 2024 Mayor Ryan called the work session to order at 5:30 p.m. 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; Eric Maass, Planning Director; Sam DiMaggio, Economic Development Manager; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Brian Grogan, Moss & Barnett Bob Loken, ESG Architects Nick Asta, Roers Companies Judy Harder, 541 West 78th Street BROADBAND/INTERNET UPDATE AND DISCUSSION Assistant City Manager Matt Unmacht introduced Attorney Brian Grogan from Moss & Barnett who assists the city with the complex issues with franchise agreements. Mr. Grogan reviewed the three franchise issues the city is currently working on: Mediacom (currently holds a franchise), MetroNet (currently holds a franchise but has not proceeded), and Comcast (considering a franchise). He provided a regulatory overview, that residents/businesses desire high-speed broadband due to changing needs, the impact on the right-of-way for the city, how local, state, and federal law apply to telephone, broadband, and cable, the availability of state and federal funding for broadband expansion, and pending legislation. Mr. Grogan reviewed the existing Mediacom franchise agreement which expired in December 2023 but has been extended through August 26, 2024. Current renewal issues include the requirement of providing a line extension to Hesse Farms, a 10-year term, and a PEG fee increase. Mr. Grogan reviewed the MetroNet franchise agreement and a fiber agreement that was granted on August 23, 2021, and expires in October 2031. Cable system construction has not started in the city and MetroNet is no longer interested in providing cable service, just broadband service. As a result, they would like the city to terminate their franchise agreement. However, the city is proposing a settlement agreement to terminate the franchise agreement but require MetroNet to comply with the existing fiber agreement which provides that fiber be connected to city buildings. Mr. Grogan stated that Comcast has approached the city verbally requesting a cable franchise to build out the entire city. A franchise application timeline was presented based on statutory regulations. It is anticipated that by the end of 2024, Comcast will have a franchise agreement and have started construction, Mediacom will renew their franchise agreement and compete for City Council Work Session Minutes – March 18, 2024 2 the same services, and MetroNet will attempt to provide broadband service including constructing fiber to city buildings. Mr. Grogan added that the city has remained open to all three providers. The city council expressed concern about Comcast following through with building out the city. Mr. Grogan explained that the contract with Comcast would include the exact locations to be built out. The city council also asked if the market would support the competition between the two providers. Mr. Grogan explained that broadband is a growing industry and in high demand. The city council asked about the impact of the wireless option competition. Mr. Grogan responded that it is an option for some. The city council also asked if a franchise agreement requires providing broadband and is it Comcast’s intent to provide these services? Mr. Grogan responded that Comcast would provide the entire suite of services which include telephone, cable TV and streaming, broadband, and a mobile option in partnership with Verizon. He guessed that Comcast would provide fiber to neighborhoods to serve clusters of homes. The resolution to extend Mediacom’s franchise agreement to August 26, 2024 is scheduled to be approved at tonight’s regular city council meeting. ARCHITECTURE DISCUSSION – CHANHASSEN CINEMA AND COUNTRY INN & SUITES REDEVELOPMENT PROPOSAL Planning Director Eric Maass introduced Bob Loken and Ryan Samsa of ESG Architects. Mr. Maass presented slides showing the elements to be reviewed including building color palettes, balcony options, window options, commercial entries (doors/windows, awnings, door handles, signage), and material as undulation, to obtain city council feedback on these features. Bob Loken of ESG Architects stated that the goal of the design is to break down the building into different masses/volumes to look like separate buildings to build visual interest and not look monolithic, as well as balance the contemporary vision of city hall. Ryan Samsa of ESG Architects presented a three-dimensional model of the buildings. He added that the goal is for the two buildings to look like siblings and not twins. Mr. Maass presented slides showing the alternative color schemes (champagne, platinum and bronze, and Brandywine) and asked the city council for a general color palette preference. The city council preferred the platinum and bronze model. Mr. Maass presented slides showing balcony and window options for city council discussion. Mayor Ryan recessed the work session at 6:55 p.m. Mayor Ryan reconvened the work session at 7:23 p.m. Mr. Maass reviewed the Chanhassen Cinema and Country Inn & Suites architecture presentation and asked the city council if there were any specific elements they wished to discuss. The city council expressed concern about the east building’s flat appearance from the south and asked that the same architectural elements from the west building be considered. Mr. Loken provided the next steps and the changes they will make before the next presentation on March 25. City Council Work Session Minutes – March 18, 2024 3 DISCUSS COMMISSION APPOINTMENTS City Manager Laurie Hokkanen explained how candidates are solicited and appointed by the Carver County Board of Commissioners to the Riley Purgatory Bluff Creek Watershed District Management Board and that traditionally the city has not had any input in the process. Ms. Hokkanen stated most of the city is located within the Riley Purgatory Bluff Creek Watershed District (RPBCWD) and she was approached by the RPBCWD District Administrator as to whether the city would be interested in getting involved in soliciting and recommending candidates to the Carver County Board for appointment. She added that the work that the RPBCWD does is very important and highly integrated with the work the city does, and it is vital to have a good relationship with them to accomplish shared goals. Ms. Hokkanen informed the city council that approximately two-thirds of metro cities are involved in the nomination process of watershed district managers. If the city council should choose to change the current nomination and application process, Ms. Hokkanen recommended that the city use a process like what is currently used for city commission appointments by advertising the opening, interviewing candidates, and recommending three candidates to the Carver County Board of Commissioners to interview and appoint to the RPBCWD. The city council discussed the options and directed staff to move forward with the city becoming involved in the appointment process. SHORT-TERM RENTAL ORDINANCE UPDATE MEMO As stated in the staff report for this item, Planning Director Eric Maass explained that there would not be a presentation and that if the city council had any feedback on the proposed ordinance, they should have contacted Planner Rachel Jeske. The city council accepted the recommendation in the staff report without any further discussion. MISSING MIDDLE HOUSING LEGISLATION City Manager Laurie Hokkanen referenced emails and the most recent Message from the Mayor concerning the pending legislation on affordable housing. Mayor Ryan indicated that if this legislation passes, the city’s comprehensive plan will no longer apply which means there will be no opportunity to solicit and obtain resident feedback. Mayor Ryan stated that her Message from the Mayor email was met with a supportive response from the residents. On Thursday, March 21, the Chanhassen Villager will also publish a letter to the Editor from the mayors of Victoria, Chanhassen, Chaska, and Carver to make residents aware of this legislation. CITY COUNCIL ROUNDTABLE Mayor Ryan referenced a recent citizen action request concerning communication from the city. Communications Manager Ari Lyksett presented the February 2024 Communications Report. City Manager Laurie Hokkanen added that copies of postcards sent to residents would be included in future City Council Correspondence Packets. Following city council discussion on this topic, staff were commended for their communication efforts to date, and directed to continue to explore options to improve the city’s communication efforts. Councilwoman Schubert asked about the status of installing charging stations in Chanhassen. City Manager Laurie Hokkanen responded there are no updates at this time due to uncertainty in the market. Ms. Hokkanen added that the city is currently working on applying for a state grant that would cover approximately half of the solar panels needed for the new city hall building. City Council Work Session Minutes – March 18, 2024 4 FUTURE WORK SESSION SCHEDULE April 15, 2024 (meeting rescheduled from April 8) • Downtown Design Guidelines Draft Plan Review • Highway 5 Update • City Manager Performance Review (CLOSED SESSION) April 22, 2024 • SouthWest Transit Update May 13, 2024 • Road Funding Discussion May 20, 2024 • SAC and WAC Policy Discussion June 10, 2024 • June 24, 2024 • Consider Draft Recommendations Updating SAC/WAC Policy Discussion • 2025 Preliminary Budget and Levy Discussion • City Council Roundtable Pending Items: Audit Presentation (May 13 or 20) Mayor Ryan adjourned the work session at 8:45 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk