Loading...
CC 2010 09 13 CHANHASSEN CITY COUNCIL REGULAR MEETING SEPTEMBER 13, 2010 Mayor Furlong called the meeting to order at 7:15 p.m. The meeting was opened with the Pledge to the Flag. COUNCIL MEMBERS PRESENT: Mayor Furlong, Councilman Litsey, Councilwoman Ernst, Councilwoman Tjornhom, and Councilman McDonald STAFF PRESENT: Todd Gerhardt, Laurie Hokkanen, Kate Aanenson, Paul Oehme, Todd Hoffman, Greg Sticha, and Roger Knutson PUBLIC ANNOUNCEMENTS: Mayor Furlong: Thank you and welcome to everybody in the council chambers and for those that are here just sat through a quick Economic Development Authority meeting for the city so thank you for watching that. All the excitement that went with it. At this time I would ask members of the council if there are any changes or modifications to the agenda for the City Council this evening. If not, without objection we’ll proceed with the agenda as published. First item this evening is presentation of a Maple Leaf Award to an outgoing Planning Commission member, Debbie Larson so, I know she’s here. I’ll have her join me down in front. It’s my pleasure this evening to present the City of Chanhassen Maple Leaf Award to Debbie Larson who’s a member of our Planning Commission. Debbie was appointed to the Planning Commission in 2005 and since July of last year 2009 she has served as the Planning Commission Chair. During her tenure the Planning Commission accomplished a number of important goals and projects including the update of our 2030 Comprehensive Plan. Debbie’s also been involved in numerous development reviews including the Arboretum Business Park, Chanhassen High School, Chanhassen West Business Park, Crossroads of Chanhassen, Southwest Transit Chanhassen Station, and numerous other subdivisions including Apple Tree Estates, Boulder Cove, Lakeside, Pioneer Pass, The Arbors and The Preserve. Debbie’s been a resident of Chanhassen for about 25 years and her unique perspective as a business woman and long time resident was an asset to our Planning Commission. Her passion for the City was evident in her discussions and comments made. Debbie we’re going to miss you on the Planning Commission and wish you luck. Congratulations. Debbie Larson: Thank you very much. Mayor Furlong: Let me give you one of these. It says recognition of your service, it reads the City of Chanhassen Maple Leaf is presented to Debbie Larson, Planning Commission member 2005 to 2010 serving as Chair from 2009 to 2010. In recognition of outstanding service and dedication to the community by the Chanhassen City Council. Debbie Larson: Thank you. Mayor Furlong: Any thoughts or comments? Chanhassen City Council - September 13, 2010 Debbie Larson: Well no. It’s just been such a pleasure and I had no idea that it would have been 5 years. I mean…but it’s just been really neat to be able to you know work with all of you and work with the citizens and…time that I could help out you know on their behalf when I know they were having difficulties, it was kind of neat to be able to step in and assist them so, but it’s been fun and I wish I had time to stay on but I’m moving on. Mayor Furlong: Very good, well again thank you. Debbie Larson: Thank you so much. CONSENT AGENDA: Mayor Furlong: Item 1(g), we’d like to, we have some additional information that needs to come in that so we will pull that from the consent agenda and pick that up immediately after. Todd Gerhardt: Mayor, I do have one other item. 1(d), if we could pull that one and take care of it immediately too. It’s just simple resolution approving the motion that’s in the packet so something we can send down to the County showing that the assessments have been… Mayor Furlong: Okay, thank you. So items 1(d) and (g) will be picked up immediately after the consent agenda items in their entirety. Any other items? If not, is there a motion to adopt items 1(a) through (j) excluding (d) and (g)? Councilman Litsey: So moved. Mayor Furlong: Is there a second? Councilman McDonald: Second. Councilman Litsey moved, Councilman McDonald seconded to approve the following Consent Agenda items pursuant to the City Manager’s recommendations: a. Approval of Minutes: -City Council Work Session Minutes dated August 23, 2010 Receive Commission Minutes: -Planning Commission Verbatim & Summary Minutes dated August 17, 2010 -Park and Recreation Commission Verbatim & Summary Minutes dated August 24, 2010 Resolution #2010-73: b. Red Cedar Point Reconstruction Project 10-01(b): Call Assessment Hearing. Resolution #2010-74: c. Resolution Approving Carver County Resolution 27-10 Establishing County State Aid Highway 61. 2 Chanhassen City Council - September 13, 2010 e. Nick’s Storage, 1900 Stoughton Avenue: Approve Extension to Deadline for Installation of Stormwater Pond. f. Approve Amendment to Chapter 20 of City Code Concerning Political Signs. Resolution #2010-75: h. Call for a Public Hearing on the Proposed Modification to the Tax Increment Financing Plans for Tax Increment Financing District Numbers 4 and 5. Resolution #2010-76: i. Approve Resolution Calling for the Redemption of the 2004A G.O. Bonds. Resolution #2010-77: j. Approve Resolution Calling for the Advance Refunding Sale of the 2004B and 2005B Water Revenue Bonds. All voted in favor and the motion carried unanimously with a vote of 5 to 0. D. APPROVE ASSESSMENT REAPPORTIONMENT FOR PID 25.0262000, SEVER PETERSON PARCEL. Todd Gerhardt: 1(d) is a resolution approving the assessment reapportionment for PID 25.0262000. If you can include that in your motion. Mayor Furlong: Are these the items that were distributed to the council members? Todd Gerhardt: Yeah. Mayor Furlong: And Mr. Gerhardt, just for clarification the resolution simply adopts the original motion or recommended motion by the staff report but just in a resolution form? Todd Gerhardt: Correct. Mayor Furlong: There are no material changes. Todd Gerhardt: That’s correct. Mayor Furlong: Okay. Any questions on this? Councilman Litsey would you also like to move this resolution? Councilman Litsey: Sure. I’ll recommend that the City Council adopt a resolution apportioning the assessments for PID 25.0262000 per the attachment in the packet dated September 13, 2010. Mayor Furlong: Thank you. Is there a second? Councilwoman Tjornhom: Second. 3 Chanhassen City Council - September 13, 2010 Mayor Furlong: Moved and seconded. Any discussion on that motion? Hearing none we’ll proceed with the vote. Resolution #2010-78: Councilman Litsey moved, Councilwoman Tjornhom seconded that the City Council adopt the attached resolution apportioning the assessments for PID 25.0262000 (Sever Peterson Parcel). All voted in favor and the motion carried unanimously with a vote of 5 to 0. G. PIONEER PASS, NORTH OF PIONEER TRAIL AT BLUFF CREEK DRIVE, APPLICANT RYLAND HOMES: 1. FINAL PLAT APPROVAL. 2. APPROVAL OF DEVELOPMENT CONTRACT. Todd Gerhardt: Mr. Mayor, City Council members. In the staff report, first page, paragraph 3 under the proposed motion, the development agreement states the City will reimburse the developer. We left that blank here waiting for a number from our consulting engineer and that dollar amount is $13,174.40. The rest of that sentence for the trunk watermain over sizing within Bluff Creek Drive, we also included an up to $51,000 furnish and install a pressure reducing valve within Bluff Creek Drive. If we could include that in the staff report but would not modify the motion. So the motion would stand as written. Mayor Furlong: Okay. Any questions on that? Okay if not is there a motion to adopt, is the staff report referenced in the motion Mr. Gerhardt? Councilman Litsey: Yes. Mayor Furlong: Is it? Todd Gerhardt: Yep. Mayor Furlong: I’m just reading from, okay. Would somebody like to make the motion then? If there’s no discussion. Adopting the resolution of the modified staff report. Councilman Litsey: Sure, I’ll make the motion that the Chanhassen, or the council approves the final plat for the Pioneer Pass. Todd Gerhardt: Development contract. Mayor Furlong: This is item (g)(2). Oh I’m sorry, we’ve got to do the final plat though. We pulled them both off so that’s fine. Let’s start with that. You’re fine. Councilman Litsey: Okay. Mayor Furlong: We pulled (g) off but there’s 1 and 2 and this was referring to 2. 4 Chanhassen City Council - September 13, 2010 Councilman Litsey: Yeah, okay. Yeah we had two here so. Mayor Furlong: Yep, let’s start with the final plat. Thank you. Councilman Litsey: So we’re okay? Okay. The council approves the final plat for Pioneer Pass creating 41 lots, 5 outlots and right-of-way for public streets, plans prepared by James R. Hill Incorporated dated stamped received August 20, 2010 subject to conditions of the staff report as amended here this evening. Mayor Furlong: Okay. Thank you. Do you want to pick up item 2 at the same time? Councilman Litsey: Sure. That the council approve the development contract and the construction plans and specifications for Pioneer Pass conditioned upon the following, the applicant shall enter into the development contract and supply the City with a cash escrow or letter of credit for $2,878,643.46 and pay a cash fee of $174,896.90 and the applicant’s engineer shall work with the city staff in revising the construction plans to meet city staff standards. Or I mean city standards I should say. Mayor Furlong: Okay, thank you. That’s been moved. Do we have to reference the changes in the staff report at all with that motion or not? Roger Knutson: I think they’re noted in the meeting… Mayor Furlong: Thank you. Is there a second? Councilwoman Tjornhom: Second. Mayor Furlong: Made and seconded. Any discussion on that motion? So the motion before us is item (g), both 1 and 2. Is that correct? Todd Gerhardt: Yes. Councilman Litsey moved, Councilwoman Tjornhom seconded that the City Council approves the final plat for Pioneer Pass creating 41 lots, 5 outlots and right-of-way for public streets, plans prepared by James R. Hill, Inc., dated stamped received August 20, 2010 and subject to the conditions in the staff report. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman Litsey moved, Councilwoman Tjornhom seconded that the City Council approves the development contract and the construction plans and specifications for Pioneer Pass, conditioned upon the following: 1. The applicant shall enter into the development contract and supply the City with a cash escrow or letter of credit for $2,878,643.46 and pay a cash fee of $174,898.90. 5 Chanhassen City Council - September 13, 2010 2. The applicant’s engineer shall work with City staff in revising the construction plans to meet City standards. All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS: None. PUBLIC HEARING: MEDICAL ARTS PARKING LOT REHABILITATION PROJECT 10-05: ASSESSMENT HEARING; AWARD CONTRACT; APPROVE ASSESSMENT AGREEMENT. Councilman McDonald: Before you get going on this I will recuse myself from this because I do lease space there so I’ll just go sit and wait for you guys to make your decisions. Mayor Furlong: Okay, thank you. And it’s an unusual situation but I also, not for matters of a conflict of interest for potential for a perceived one in that I’m going to recuse myself from this item as well and ask Councilwoman Tjornhom to take over specifically with regard to the awarding of the contract so have fun. Councilwoman Tjornhom. Yeah, you guys and stay. We leave. Councilman Litsey: We still have a quorum. Barely. Councilwoman Tjornhom: We’ll move onto item 2 and it is, as the Mayor stated, regarding the Medical Arts and Colonial Square parking lot rehabilitation and so I’d like to open it up with a staff report. Paul Oehme: Thank you Councilmember Tjornhom. I’d like to just give a brief overview of the project itself and then talk about the assessment hearing and potential award of the contract. The th parking lot in question is located just north of 78 Street in the downtown district here and just west of Great Plains Boulevard. The parking lot encompasses, majority is used for the Medical th Arts buildings which are shown here. Address of 480 and 470 78 Street. It also includes parking accommodations for a restaurant on the west side of the parking lot and then also included in the project is a mall, strip mall parking lot as well so I’ll get into that discussion a little bit too. The building property owners and tenants have requested the City consider improvements to this parking lot. The parking lot is over 20 years old and we have been keeping up on the maintenance of the parking lot but it has deteriorated to a point where minor maintenance is no longer cost effective. The Colonial Square facility owner/manager is also the owner representative of the Medical Arts facility. Medical Arts buildings as well so he’s requested that his parking lot, which is currently on private property, be included in the improvement contract for the Medical Arts parking lot due to the fact that it’s contiguous with the parking lot that the City currently owns, maintains and also feels that he may get a better product out of the overlay of his parking lot plus cost savings as well. Getting into the larger project as well so the City has reviewed that request and finds it acceptable and we have incorporated that request into our bid package and contracts so. Agreement of maintenance states that the City is responsible owners, the City’s responsible for the maintenance but the, again the owners have petitioned the City for those improvements and any cost associated with 6 Chanhassen City Council - September 13, 2010 those improvements are assessed back to the benefitting property owners. So this drawing just kind of just shows you what the, quickly what the improvements are consist of. The full depth mill section of the parking lot is shown in the darker shaded area here. This area is typically in worst condition than some of the other areas within the parking lot so in this area the design calls for removal of all the pavement. Replacing some of the sub-grade that we intend to a final, move that asphalt away. Repairing that sub-grade. Poor sub-grade. Adding in some drain tile. Adding in some additional storm sewer that we think would help the drainage situation of the parking lot and then also do some landscaping restoration on the parking lot as well. There is some pedestrian ramps that are also included in the contract to meet the ADA requirements as well. The edge mill overlay areas is the lighter shaded areas. This area of pavement isn’t as, in worst shape as some of the other areas in the parking lot so we think that the parking lot in this area can be milled and then overlaid again with the 2 inch section of asphalt. And also and drainage improvements are included in the parking lot in the low spots here too. Some valley gutter and some additional storm sewer structures. That’s basically the scope of the project. The, again the assessments and the cost of the project is proposed to be paid for through the assessments at 100% of the cost plus some administrative fees by the City. The assessment terms proposed are over a 10 year period at 5.25% interest. The area shaded in red here is proposed to be assessed back to the benefitting property of 406, the Colonial Square parking lot. The rest of the assessment is spread out over the other parking lot area and assessed back to the three other buildings within the Medical Arts facility. These assessments are based upon the parking lot requirements. Parking needs of each of those facilities so that’s the percentage breakout of the assessments based upon their needs for the parking lot. And we did receive favorable bids at this time and they are approximately 30% lower than what was anticipated in the feasibility study so a good bidding environment so. As we move forward, if the project is awarded, we’d like to begin the construction as soon as we can. Hopefully in September here and the contract states that the project should be completed within 10 working days after the start of the project so it’s a pretty quick turnaround. So with that I would stand for questions but I would remind the council that, you know for the public hearing staff has not received any contestants at this time for the assessments but public testimony should be received for the project and if the property owner does wish to speak or submit a written objection, that written objection should be handed to staff prior to the closing of the public hearing. Any objections after the public hearing are invalid so with that I’d stand for questions and request that a public hearing be opened at this time. Councilwoman Tjornhom: Are there any questions of staff? Councilwoman Ernst: Paul, can you tell me, now I’m hearing in the notes it says 100% of the street improvement costs are going to be assessed back to the property, benefitting properties, but did I also hear you say that there’s going to be costs that are going to be incurred to the City? Paul Oehme: Well the costs incurred to the City are minor. We added some survey work that was done out here. We had some legal costs associated with the project. Assessment agreements and such. We just wanted to recapture those costs. Those indirect costs for the project and include those in the total project cost so minimum, there really isn’t any city cost associated with this project. It’s all being assessed back to the benefitting property owners. 7 Chanhassen City Council - September 13, 2010 Councilwoman Ernst: So is that the 5% indirect cost that we’re talking about? Paul Oehme: That’s correct. Councilwoman Ernst: And that’s going to be allocated and is included in the $256,000? Paul Oehme: The 256, yeah actually the final assessment amount is 200, yeah $256,000. That’s correct. Councilwoman Ernst: Okay, and that total will be assessed back to the property owners? Paul Oehme: That’s correct. Yeah the total bid that we received from the contractor, low responsible bidder was $236,820.50. Councilwoman Ernst: Okay, thank you. Councilwoman Tjornhom: Alright, any other questions? If not I’d like to now open this up to the public. If anyone in the audience would like to address this issue, please go up to the podium. State your name and address. Seeing no one, I’d like to close this public hearing and start the process and the first part of this process is awarding the contract. Or discussion of that. Paul Oehme: Sure, and I just wanted to make a note too. I did hand out a proposed updated motion too which includes approval of a special assessment agreement for the Colonial Arts portion of the project. The property owner has signed that agreement. That assessment waiver and we just wanted to make sure that gets included with the motion as well. The award of the contract, we did receive 7 bids and the lowest responsible bidder was Bituminous Roadways at $236,820.50. Councilwoman Tjornhom: Okay. Seeing no further comments, do I have a motion from council? Councilwoman Ernst: I’ll make a motion. Councilwoman Tjornhom: Councilwoman Ernst. Councilwoman Ernst: I make a motion that we accept the bids and award the contract for the Medical Arts and Colonial Square Parking Lot Rehabilitation Project 10-05 to Bituminous Roadways in the amount of $236,820.50. Councilwoman Tjornhom: Is there a second? Councilwoman Ernst: Just, so there’s a second part to it. Paul Oehme: Yep. 8 Chanhassen City Council - September 13, 2010 Councilwoman Ernst: I make a motion that we adopt the assessment roll for the City project 10- 05 Medical Arts and Colonial Square Parking Lot Rehabilitation. Paul Oehme: And can I add to that, and include. Councilwoman Ernst: And approve the attached Public Improvement and Special Assessment Agreement. Is that what you wanted to add Paul? Paul Oehme: That’s correct. Thank you very much. Councilwoman Tjornhom: Is there a second? Councilman Litsey: I’ll second that. Resolution #2010-79A: Councilwoman Ernst moved, Councilman Litsey seconded that the City Council adopts the assessment roll for City Project 10-05, Medical Arts and Colonial Square Parking Lot Rehabilitation and approves the attached Public Improvement and Special Assessment Agreement. All voted in favor and the motion carried unanimously with a vote of 3 to 0. Resolution #2010-79B: Councilwoman Ernst moved, Councilman Litsey seconded that the City Council accepts the bids and awards the contract for the Medical Arts and Colonial Square Parking Lot Rehabilitation Project 10-05 to Bituminous Roadways in the amount of $236,820.50. All voted in favor and the motion carried unanimously with a vote of 3 to 0. COMMON CENTS AUTO: REQUEST TO AMEND CONDITTIONAL USE PERMIT 97-04 TO INCLUDE THE CONTIGUOUS PROPERTY TO THE WEST OF 615 FLYING CLOUD DRIVE TO PERMIT PARKING OF USED VEHICLES; APPLICANT: CARL “DUFF” HANSON. Kate Aanenson: Thank you Mayor, members of the City Council. This item is located at 615 Flying Cloud Drive so it’s down kind of the bottom of the Y there. This property is zoned Business Fringe. The Business Fringe district is put in place to allow reasonable use of the property while we don’t have urban services. Some of the other uses down there, we have the dog kennels. We have the miniature golf, driving range down there so these, the intent of the Business Fringe district is to allow services that don’t need necessarily sewer and water but gives reasonable use of the property so having stated that there are some permitted use. The agricultural uses but there are conditional uses and then some interim uses. Again the conditional use would be at a time, such time that sewer and water becomes available we anticipate that a higher and better use will come on the property. So this property has some history to it. There’s two properties that are involved. There is a conditional use on Parcel A and this application is requesting to extend it over to Parcel B. Parcel A was a gas station and Parcel B was actually a drive thru restaurant. So currently Parcel A has the conditional use for auto sales and the request then is to actually move some of those auto sales onto Parcel B. So this would allow for individuals to bring their cars there to this parcel and have the owner, the applicant to kind of supervise what’s happening on that site so he would allow people to go to 9 Chanhassen City Council - September 13, 2010 that site. Lease a space. Pay him a fee and then they could advertise their vehicles for sale. So in discussing this with the Planning Commission and putting together the application, again the bottom of the Y, we wanted to make sure that it’s a clean site. That it’s not an eyesore. Currently the car lot itself is being, is organized in the fact that it’s striped and there’s some semblance of order. How you come in and how you go out of the site so we just wanted to make sure there wasn’t haphazard locations. There’s currently two access off of Flying Cloud Drive, County Road 61. You can see Access 2, 3 and 4 so one of the applications you can see in white there it says block the access, so that would be closed off so you’re trying to control the turning movements in there. People going in to look at cars. Driving by and seeing something they’re interested and pulling in. Again the control that we felt comfortable with is that there’s an owner on Parcel A so people aren’t just leaving vehicles there. He has the right to tow something or remove something that wouldn’t necessarily be allowed there so a couple concerns that we had is we wanted to see how the parking lot was going to be laid out so it just wasn’t haphazard and an eyesore and that there was some control. Access to the site and it’s an ongoing kind of th inspection. The Planning Commission heard this item on their August 17 meeting and they had some of the same concerns about you know just making sure it’s being operated properly as stated. We don’t typically allow people just to throw cars on a lot. Because there was a control point with somebody next door we felt comfortable with that. It does provide a service. They also wanted to see that the parking lot be striped in such a way that it appears more, a semblance of order. Not just something to drive in and leave your vehicle and so we asked the applicant to stripe the parking lot. This shows, I think he had requested over 100 so the Planning Commission felt like that may be too many. Kind of wanted to monitor that and asked the staff to go down and make annual inspections of that, and just so people can get around in there because not only is the parking lot being full. You also have people come to look at vehicles and they need a place to park to get in and out and they’re going to probably want to test drive it or pull or it’s kind of look at that sort of thing so they wanted to make sure that kind of take it in piecemeal basis. Bring a percentage on there. See how that’s working. How it’s operating and then certainly you know follow up with staff inspecting it. But having said that, making those changes, the applicant did supply this striped parking lot. We did go by today. It’s not striped yet. We want to make sure that happens yet this fall. There are some things coming on there. We want to make sure that they are again put in an area that would in a way on the property in such a way that it doesn’t detract from that area. That it’s an asset. Again that doesn’t just look haphazard and I think that certainly can be accomplished by the applicant. So having said that the Planning Commission did recommend approval of the application so this, what this is doing is reinstating the conditional use permit and amending it to the other piece. Moving it on Parcel A moving it over to Parcel B. So they did recommend approval of that with the changes in the staff report with the conditions of approval and the recommendations, excuse me. The Findings of Fact and the recommendations. So with that I’d be happy to answer any questions that you have. Mayor Furlong: Thank you. Questions for staff. Councilwoman Tjornhom: I have just one question regarding signage. Was that an issue at the Planning Commission? 10 Chanhassen City Council - September 13, 2010 Kate Aanenson: Yeah. There are some additional signs down there right now too so it does need to comply to the sign ordinance and I think that was one of the issues. Some of those control points that they want to make sure there was inspections on so it didn’t become, that kind of an eyesore so I noticed there was a few additional ones down there now so we’ll work with the applicant on that. Mayor Furlong: Other questions. Ms. Aanenson with regard to, this is amending a pre-existing conditional use correct? Kate Aanenson: That’s correct. Mayor Furlong: So they already have the right to conduct this activity on Parcel A. Kate Aanenson: Correct. Correct. Mayor Furlong: And they’re looking to extend it over to B. Is there any limit in terms of the number of vehicles that could be included? Kate Aanenson: Yes. Yes. Yes. Mayor Furlong: I thought I saw it but I don’t see it right now. Kate Aanenson: Yeah, it’s 75. Currently he has 20-30 striped. You can see some of them are in the drive aisles. That’s an older picture so I don’t want you to go by that. So what we had the applicant do is lay out a striping plan. Now there’s things bigger than cars down there. It could be a boat. It could be an RV. It could be a, so it’s all predicated on how that works. There are some stalls in there that don’t work because you can’t back out so the main goal, and I think the Planning Commission felt too that they wanted it to be, to look like a true sales lot. If you go back to the other slide, this property, the property across the street are both being operated as a used car lot. This is a little bit different. He’s allowing people to bring their own vehicle and lease the space to sell it for their own so there’s a control point with the owner but there’s a little bit more freedom there so it’s just controlling to make sure that people are putting the vehicles back or parking in such a way that there’s a semblance of. We have a contact person if there’s a problem which is a good thing too. Mayor Furlong: And the 75 vehicles, is that in the earlier conditional use? Kate Aanenson: It was the amended part. I think it should be underlined in the staff report. Oh excuse me, it was 75% of the stalls are impacted and I think that what we did is we counted. Mayor Furlong: That’s when you open up that curb. Kate Aanenson: Yep. Yep and so we originally had tried to put some numbers in there so we think on the Parcel A it was 25 cars and so instead of putting the 50 in there we said let’s see what works on the site and so we tried to say once it gets to 75% we wanted an access point 11 Chanhassen City Council - September 13, 2010 between the existing parking lot and then, so the people can go between the two for better circulation, and for control mechanism. Mayor Furlong: And I saw that but that only works with the access and opening that up. Kate Aanenson: Right. Right. Mayor Furlong: In terms of total number of cars. Kate Aanenson: No. Mayor Furlong: There’s no limitation on that? Kate Aanenson: No, it’s based on this site plan, and I’m not sure I’ve got the exact count on there but. Mayor Furlong: And does this cover both A and B? Parcels A and B? Kate Aanenson: No that would just be B. Mayor Furlong: That’s just B. Kate Aanenson: Correct. Mayor Furlong: And that’s how many adding? . Councilman McDonald: On page 6 of 7 you say that it’s 72 were submitted. Kate Aanenson: Okay, 72. Thank you. Mayor Furlong: 72 being added to what’s already on A? Kate Aanenson: Correct. Correct. Mayor Furlong: And that striping on A has about 25 cars? Kate Aanenson: Yeah, 23. 25. Yes. Mayor Furlong: Just over 100 total. Kate Aanenson: Right, yeah. So again if you go back, there’s 5 stalls that are kind of in such a way that you can’t really back out of them so it may be less than that, again if depending on the size of the vehicle. Again the goal is that originally the applicant didn’t want to have a parking plan and wanted to have as many as he could on the site and the staff felt that would really be a negative visual impact, and also trying to control what happens with the other car place across the street that doesn’t take on that same look so as people are driving by it looks orderly. And 12 Chanhassen City Council - September 13, 2010 then people can get in there to look at a vehicle without causing a traffic circulation or traffic problems when you get in the site. Mayor Furlong: Is the property on the north side, is that also operated under a conditional use permit? Kate Aanenson: That’s correct. Mayor Furlong: Okay. Kate Aanenson: And those have been in place for a number of years. Mayor Furlong: Alright. And I guess the question here is, is there anything that precludes the paved surface needing to be expanded and to add more onto… Kate Aanenson: No we looked at that. He’s using what’s on there right now. There’s a flood plain behind. I think the other issue too, just to control what’s on the property, we asked that all vehicles on the property, whether it’s a boat or, that they be currently licensed so it doesn’t end up just kind of being a storing place. It’s not intended for that so those are some of the things that we’re going to have to follow up on to make sure that it’s not a storage yard and it’s intended to be a place that things come and they go so. Mayor Furlong: Alright. And I guess I’m wondering if there should be, maybe we can ask the applicant in a minute. Kate Aanenson: A timeframe or? Mayor Furlong: Timeframe or just total number of vehicles that he’s expecting… Kate Aanenson: Yes. You can ask him that. I think we just felt his original response to that was overly optimistic to get on the site and still be able to move it over. Mayor Furlong: Right but looking, if he’s going to back out Parcel B is quite a large parcel relative to A. Kate Aanenson: Right. Yep, so that’s where we came up with the 75. Mayor Furlong: We can talk about that, okay. And then there’s nothing here that’s changing the size of the building or the. Kate Aanenson: No. Mayor Furlong: Activities within the building or service. Kate Aanenson: No. No, that does have a septic and we ask to get pumping reports and those have all been submitted and are. 13 Chanhassen City Council - September 13, 2010 Mayor Furlong: Current. Kate Aanenson: So it’s current, correct. Mayor Furlong: Okay. Thank you. Any other questions for staff at this time? Is the applicant here? Mr. Hanson. Carl Hanson: Yes. Mayor Furlong: I invite you to come up to the podium. Anything you’d like to address to the council this evening? Good evening. Carl Hanson: Yeah, my name’s Carl Hanson. I’m the one that’s throwing the dice at this. You know I don’t know, I might only need 5 spaces. I don’t know if this is going to work. You know it’s an owner to owner thing is real big in St. Paul. I had a lot of people you know that drive by there stop and ask, you know if I park my car here for the weekend, I don’t care. You know if you want to, go ahead. So a friend of mine said you know they charge people to do this in St. Paul. I guess throw you know 3, 4, 5 grand at this and see what happens. That’s all I’m doing. You know if it works it works. Create some activity down there. Maybe some of the other guys can get, make some money off of it too. The mechanics up on the hill. You know the garden place down the street. You know if we can create some activity. I mean we’re out there in never never land. We don’t even have sewer and water you know so it’s just a gamble. That’s all I can do nowadays. Throw the dice and hope you pull them out. But it’ll be you know, it’ll be kept up nice and clean. I mean I’ve thrown a lot of money into that building, other building already. I mean I think I’m the first one to ever pull a sign permit on that building. Thank you. Kate Aanenson: Let the record show you’re not the first. Carl Hanson: I’m not the first? I think her comment was, well you do want to be in compliance don’t you? But you know I’ve repainted everything in there. I put wood floors in the office and, I mean at least now you don’t mind walking in the place. You’re not going to catch something. So it’s, you know and the other place will be just as nice. I mean I’ve already contracted with a striping company to come over there and lay it our professionally so everything’s you know what we need to be and you know if it ends up to be you know 40 parking spots, fine. If it ends up to be 72, that’s fine too but it’ll meet all the specs. I mean that’s why I’m paying somebody else to do it so. Mayor Furlong: Okay. Carl Hanson: And it’ll be nice. And if it works, great. If it doesn’t, hell I’ve lost more in a poker game. Mayor Furlong: Alright. And I guess following up on my question to staff in terms of total number, you’re comfortable at basically the 105? The 72 above that. 14 Chanhassen City Council - September 13, 2010 Carl Hanson: You know if it starts to get too crowded, well you know at 75, I mean that’s fine. I mean if that’s all, if the guys that come out and lay out the lines find that they can only put you know 60 in there comfortably, then I’ll have 60 because I don’t know what’s going to be in there. I mean I’ve got one guy ask me if he can put a 30 foot antique wood boat in there. I said hell for money I’ll do you know put anything over there you know so I don’t know what I’m going to get. No idea. Mayor Furlong: Alright. Carl Hanson: I just know I’ve got some traffic. You know what comes of it comes of it. Mayor Furlong: Okay. Carl Hanson: Now what can you guys do to help me out with business down there? There’s got to be some ordinance you can pass, must go buy a car a Duff or something. Mayor Furlong: That would be a challenge. We’ll consider it. Any questions for Mr. Hanson? Okay. Very good. Any follow up questions for staff? Otherwise comments. Discussion. Councilwoman Ernst: I think it’s great. I like risk takers and I think it’s a great idea. Mayor Furlong: Okay. Councilman Litsey: Roll the dice and see what happens. Mayor Furlong: Sounds good. Is the, and just from a side standpoint Ms. Aanenson, by adopting the staff’s report that includes this 72 so that would be, if it started going significantly over that then there’d be another discussion about where is this going… Kate Aanenson: Right and we feel comfortable. Yeah we feel comfortable working it out, give him a call and going down there and checking. We’ve got a good relationship and again I think the positive thing is you’ve got a presence down there that you know that there’s somebody that we know that we can call if there’s a problem so. Mayor Furlong: Yeah, no I think it’s. Carl Hanson: I’m always there. Todd Gerhardt: We know where you are. Mayor Furlong: It’s a nice addition and in that area there’s still traffic along that road, even with the new 212. There’s still a lot of traffic and you know I agree with Mr. Hanson. If we can get people to think about stopping down there it might help some of the other businesses as well and create a little energy down there so that sounds great. Any other discussion? If not, Councilwoman Ernst would you like to make a motion? 15 Chanhassen City Council - September 13, 2010 Councilwoman Ernst: Sure. I make a motion that we approve the amended and restated conditional use permit 97-04 for a used car lot in the Fringe Business (BF) district, Planning Case 10-10 subject to conditions and adoption of the Planning Commission’s Findings of Fact and Recommendation as outlined in the staff report. Mayor Furlong: Thank you. Is there a second? Councilman McDonald: I’ll second. Mayor Furlong: Made and seconded. Any discussion on the motion? Hearing none we’ll proceed with the vote. Councilwoman Ernst moved, Councilman McDonald seconded that the City Council approve the amended and restated Conditional Use Permit 97-04 for a used car dealership to included the contiguous property to the west (PID 25-0362700) of 615 Flying Cloud Drive, for parking and display of used vehicles, Planning Case #10-10, subject to the following conditions and adoption of the Planning Commission’s Findings of Fact and Recommendation: 1.No vehicles which are unlicensed or inoperative shall be stored on the premises. 2.All repair, assembly, disassembly or maintenance of vehicles shall occur within a closed building except minor maintenance including, but not limited to, tire inflation, adding oil and wiper replacement. 3.No outside storage or display is allowed, except vehicles for sale or rent. 4.No outside speaker systems shall be allowed without approval from the city council. 5.Parking setback shall be applicable for car or truck storage or waiting areas. 6.No test driving of vehicles on local residential streets is allowed. 7.A landscaped buffer 100 feet from any residential zoning district. 8.All vehicle dealers shall be licensed by the state. 9.Parcels A and B shall comply with conditions of the Amended and Restated CUP 97-04. 10.The most westerly access on Flying Cloud Drive shall be blocked. 11.The island separating the two parcels must be removed when 75% of the parking stalls are occupied or the proposed expansion negatively impacts traffic on Flying Cloud Drive, including but not limited to congestion, accidents, traffic related complaints, etc. A pedestrian access between the parcels shall be provided and maintained prior to the removal of the landscape island. 16 Chanhassen City Council - September 13, 2010 12.The westerly parcel shall be striped and comply with city code. The applicant shall work with staff to provide a parking plan that meets ordinance. Stalls located on the east side of the lot abutting the landscape island, which is to be removed in the future, may be utilized until the island is removed. 13.Vehicle parking and display must maintain a minimum setback of 10 feet from the front property line abutting Flying Cloud Drive. 14.The parking lots shall be maintained in good repair. They shall be swept each spring and fall to limit debris from entering the Minnesota Valley National Wildlife Refuge located south of the parking lot and building. 15.Any changes to the site will require a Conditional Use Permit amendment. 16.All signs shall comply with City Code and require a separate sign permit. 17. Site inspections shall be conducted annually.” All voted in favor and the motion carried unanimously with a vote of 5 to 0. 2011 BUDGET: APPROVE RESOLUTION ESTABLISHING PROPOSED MAXIMUM LEVY, CERTIFICATION TO CARVER COUNTY. Greg Sticha: Good evening Mayor and fellow City Council members. I’m going to go through a brief power point discussing some of the items that the City Council’s already discussed in previous work sessions in regards to setting a preliminary levy and general fund revenue and expenditure budget. First I’m going to have to take a quick overview of the budget calendar of the remainder of the year. This evening we’ll be setting a preliminary levy and certifying with the County the preliminary tax levy for budget year 2011. The form needs to be given to the County by Wednesday actually to set the preliminary levy. The levy, the preliminary levy is used to send out the Truth in Taxation statements that will be going out here shortly from the th County. October 25 it’s staff’s plan to review the third quarter 2010 revenue and expenses data and also review the CIP document at that time. In addition we’ll be reviewing the utility fund th operations budget for 2011. On November 8 at our work session we’ll be discussing our annual nd utility rate study with our financial advisors Ehlers and Associates. On November 22 we’ll discuss any remaining items in regards to the budget, the CIP or the utility rate discussion to th clear up any of those last few items for any of those. On December 6 we’ll be holding a public budget meeting. This was formerly known as the Truth in Taxation Hearing. And then on th December 13 we will need to set a final 2011 tax levy and budget, adopt the 2011 through 2015 CIP and also set utility rates and all other fees for the upcoming 2011 year. I’m going to be going through 3 scenarios with you this evening and I wanted to go over some of the assumptions used in preparing the budget for all 3 scenarios. There were 5 similar assumptions that were used for all 3 scenarios. First we included a 2% wage increase for employees in 2011. Secondly we budgeted for a 25% increase in health care costs. We just received word back that that’s exactly where the bids came in at so we’re very fortunate we budgeted accurately for that line item. Thirdly all 3 scenarios include $108,000 in new construction or new growth. The City experienced about just over 1% in new construction or new growth for the upcoming budget year 17 Chanhassen City Council - September 13, 2010 or the current assessment year. We also have an increase in building permit revenue under each of the 3 of the scenarios, depending on which scenario that permit revenue item is slightly higher. And lastly the transfer for the roads or the revolving assessment construction fund remain the same under all 3 scenarios at $50,000. Scenario 1 is the first one I’m going to be going through with you this evening. Scenario 1 includes an increase in the levy from the prior year by about $230,000. Of that $230,000, $108,000 would be absorbed by new growth. The potential impact for Scenario number 1 would allow for all service levels to remain the same but it would increase budgeted permit revenues by $26,000 as compared to the 2010 budget. Currently we are tracking building permit revenue for an amount even higher than that for 2010 so staff felt comfortable with increasing that line item within Scenario 1. The residential impact for Scenario 1 would be an increase of about 1% or just over 1% or around $10 annual increase to the City’s portion of their property taxes for an average valued home in the City of Chanhassen. Scenario 2 would be an increase in the prior year levy by $108,200. The reason for that exact amount is that’s the entire amount of new growth that the City experienced for the upcoming budget year. Potential budget impacts from Scenario 2 would be all service levels would remain the same. It would cut approximately $77,000 expenses from Scenario 1. It would also increase permit revenue an additional $45,000 on top of what we are showing for Scenario 1. Bringing it to a level that we’re expecting to collect in 2010. Earlier this evening we went through the items in detail. Unless there’s, do we want to go through those this evening we certainly can at this point in time. Otherwise I’ll just keep on going with my presentation. Mayor Furlong: Okay, continue with your presentation. Greg Sticha: Residential impact for Scenario 2 would be no increase or the exact same property tax bill for the City’s share of property taxes on the average valued home for 2011. Scenario 3 would be an increase in the levy of the previous by just over $8,000. Potential impacts of Scenario 3 would be the same impacts of Scenario 2 and the City Council would have to find an additional $100,000 in expenses to cut from 1 of 3 levies that are listed on the levy impacts sheet that I’ll be pulling up here in just a minute. We’d have to have further discussion on which of those levies would need to be reduced in the upcoming months between now and setting the final th levy on December 13. The residential impact for Scenario 3 would be about a 1% or $8 decrease in the City’s share of property taxes to the average valued home in the City of Chanhassen. Staff’s recommendation is to set a preliminary levy using Scenario 1. Even though our health care costs did come in what we budgeted, there are still a few items that could change between now and December. Interest earnings within the fund, I’m still not clear and may not be clear even in December but depending on what the market does, that could have an impact on the general fund. In additional fuel costs, utility costs still between now and December could fluctuate and Scenario 1 gives you a little bit of flexibility in case any unforeseen or other instances where we would need to levy up for some other unforeseen matters would come up. The resolution in front of you this evening has really about 3 components to it. Line item 1 within the resolution sets the general fund revenue and expenditure budget. Line item 2 sets the aggregate total levy for all of the individual items, and I’ll go through the levy breakdown on this spread sheet. Each of the scenarios is listed here. Scenario 1 a total levy of $10,443,000. Scenario 2 a total levy of $10,321,390 and Scenario 3 at a total levy of $10,221,390. Also the third component of the resolution includes setting the dates for the public hearing and final 18 Chanhassen City Council - September 13, 2010 certification in December and I guess that’s all the information I have for City Council. If there’s any questions, I’d be happy to go ahead and answer them. Mayor Furlong: Thank you. Any questions for staff? Councilman Litsey. Councilman Litsey: Maybe just so the people listening understand why health insurance went up so much this year. That hasn’t been the case in the past. Maybe just. Greg Sticha: I’ll let Laurie comment on that. Councilman Litsey: But I mean it seems, it’s a lot but there’s, it hasn’t been that every year leading up to this so. Laurie Hokkanen: No. We were in a two year contract in 2008 and 2009 so in 2008 we had a 9% increase. In 2009 we had an 11% increase. Then that followed in 2007 I believe an 18% decrease for our health insurance. Councilman Litsey: Okay. I just, it puts it into context so thank you. Laurie Hokkanen: Absolutely. Councilman Litsey: Just so people see a big number. Thanks. Todd Gerhardt: Mayor, council. Back in 2005 we started implementing the health savings account and through that effort we’re now seeing our health insurance rate back to that 2005 level so over the last 5 years we’ve saved money by implementing that health savings account. Councilman Litsey: Good. Mayor Furlong: Any other questions for staff? Councilwoman Ernst. Councilwoman Ernst: Greg I think you’re the one that answered this before but for those listening for health insurance for families the City pays, the taxpayers pay 70% of that? For family. Greg Sticha: That is correct. Councilwoman Ernst: And 100% of individual health insurance. Greg Sticha: That’s correct. Councilwoman Ernst: Okay, thanks. Mayor Furlong: Thank you. Any other questions for staff? There have been 3 work sessions I think including the one earlier this evening on this and the work session that we had 2 weeks ago it lasted for a number of hours. It was a night dedicated to budget discussions so to the extent 19 Chanhassen City Council - September 13, 2010 that there were a lot of questions raised and answers given and so I think this is certainly something that we spent time on as a council at this point but, if there are no other questions for staff, certainly be happy to listen to comments. Anybody? Councilwoman Ernst. Councilwoman Ernst: Yeah. So I want to say that I think staff has done a great job of presenting. I really again I want to say it again this year how I like the flow of the presentation. It helps us retain the information. It makes a better flow for how you present the data and it’s much more clear this way so thank you for doing it that way. You know last year we spent $7,380,000 for our general fund and the, in Scenario number 3, which is really the highest decrease which is $8.20 decrease to our taxpayers from Scenario number 1. In all due respect I really think we need a Scenario number 4 in here and that being, and I think this is where we need to set our base at $7,380,000 which was our 2010 general fund. And I really feel very strongly about the fact that we should not increase our spending more than we did last year and based on the different options that were presented to us in the presentation, there was probably even more than $20,000 to $30,000 that we have as potential options for savings there. And then in addition I think we need to reconsider this 25% increase and pass some of that back on to the city staff. That’s generally, that’s not an uncommon occurrence for increase in health insurance to get passed onto the employee and I think that we should consider paying 100% of the individual insurance. Maybe that’s another way that we can find some of these dollars to make up for some of this, and I don’t know what all of that comes to but as I understand it we need to find $180,000 to get back to general fund of $7,380,000. Correct? Greg Sticha: One point of clarification. Councilwoman Ernst: Okay. Greg Sticha: The $77,000 that we talked about in expenditures at our previous meeting, that gets us from Scenario 1 to 2 so there isn’t another set of numbers similar to that that you were referring to that could get us from 2 to 3. So that gets us from 1 to 2. To get from 2 to 3 you would need an additional $100,000 so it would have to be stuff that we have not previously discussed with the City Council. Councilwoman Ernst: Right, and I agree with that. Greg Sticha: Okay. Councilwoman Ernst: We just have to find it somewhere else in the general fund. So that is my opinion on it and where we should set our base and then take a look to see if there are other options where we can find additional monies to decrease what we spent last year. Greg Sticha: Okay, thank you. Other comments. Councilman Litsey. Councilman Litsey: Sure. Little different viewpoint but I respect what’s been said. First of all I’ll compliment staff too. You’ve just done an outstanding job once again this year putting together the budget process and gathering the information when we’ve asked for it and laying it all out and coming up with I think you know 3 different budget scenarios to look at. Certainly 20 Chanhassen City Council - September 13, 2010 we can deviate from that but I’m comfortable staying within those scenario numbers presented. I very much agree that after the wage freeze of last year that employees should get the 2%. I think health insurance contribution is consistent with my knowledge of industry standards. Of what’s awarded in other municipalities. And you know there’s some things here that are just a little fluid right now and although I understand that this is an evolving process, this budget process and that you know we need to work on laying things out perhaps more as we go through this. I think it’s prudent to start out with Scenario 1 to give that flexibility to both the council and staff. By no means Scenario 1 is all that comfortable in my opinion. I think there’s a measure of good fortune that we’re counting on in terms of revenue. Anticipated revenue that may or may not be there so I don’t think Scenario 1 is starting out too high and certainly we will work towards perhaps a Scenario 2 or whatever makes, whatever’s prudent in the end I guess is what I would say. I do very much appreciate the council’s support this year and also staff putting together and being able to hear from the department heads before we set the preliminary levy. I think one good example of how that helped is we did identify a number of areas that perhaps we could reduce if we need to down the road. I don’t think at the preliminary, setting the preliminary levy stage is the point to do that because I think we don’t have enough solid numbers at this point but as the process evolves and those numbers stay consistent with what we’ve seen then I think it makes sense to look at what we’ve identified with 70 some thousand dollars…and moving more towards a Scenario 2 when we set the final levy in December so I just really think the process has been great this year. Again I appreciate the council’s engagement on, or engaging in the process and moving some things up so we could hear from staff earlier like I said, and very comfortable with staff’s recommendation. You’ve done a tremendous job. We all talk about what a great job staff does and how we rely on them for so many things and I have no reason why I would want to deviate from the recommendation tonight. It just makes a whole lot of sense and thank the employees for 2010 for what they’ve done to help balance the budget this year. I don’t think what we’re asking, what I’m looking at awarding them next year is by any means excessive. It’s certainly well deserved. They’ve done a stellar job day in and day out and I think that needs to be recognized best we can within these economic conditions so that’s it. Mayor Furlong: Okay. Thank you. Other comments. Councilwoman Tjornhom. Councilwoman Tjornhom: Yeah, that’s great. I don’t think my comment is going to be what Mr. Hanson’s comment was just before he left saying he was going to roll the dice and see what happens. That’s probably not a good approach to this budget year and certainly that’s not how I’m looking at it. I think as you look at other government agencies they tend to figure out their needs and what they want and then if there isn’t enough money they just go ahead and take it from the taxpayers again and again and again and I think historically this council has not done that. I think we have tried and strive to live within our means and spent what we need to spend and not spend what we don’t need to spend. Once again I think with this budget cycle we have met and we have discussed our needs and services with the different departments. What’s important to our taxpayers and that is the fundamental basics of life in Chanhassen or what we or the City is obligated to provide which is law enforcement, including fire. The fire department and the police department and our roads and our city sewer and water. Our parks. Our park programs. The maintenance of that. All these different things are in this budget and these are all things we enjoy and feel are important to maintain our level of life in Chanhassen and so I will be supporting Scenario 2. Starting there and then once again we decided to meet with the 21 Chanhassen City Council - September 13, 2010 different departments again and go through their budgets and see what we can live with and what we can’t live without and I think that’s an important process and that will then in the very end determine where we’ll be in December with our final levy but for right now I will be supporting Scenario 2. Mayor Furlong: Okay. Thank you. Mr. McDonald. Councilman McDonald: Well I too want to thank staff and my hats off to Councilman Litsey. It was good to have you do the presentation before we set the preliminary budget. I mean I feel very confident in where I stand because of that and that did help. One of the things that I guess I look at is Councilwoman Ernst talks about wanting to adjust the general fund. I think it’s premature to even begin to look at those numbers. You have to go down to the total because there are a number of things inbetween the general fund and the total that have to be addressed. You can’t just create a gap in there and not fill it and I think that’s part of the responsibility of council to do that and that’s why I talked in the work session today about we need more time to go through this. This is going to be a very difficult year. We’re going to have to make a lot of hard decisions but then I think we’ve known this day was coming for a couple of years. I mean at this point I’m not saying we’re going to take anything off the table. That’s why I think we need to go into a session and kind of look at our priorities because as my colleague to my left here correctly stated, we’re probably going to impact some services and there’s only about 6 things the City really does and all of them will impact citizens of this city and I thin we need to have deliberation and we need to look at that and the council needs to set priorities and then the staff can go back and meet those priorities so at this point you know I too am leaning towards Scenario number 2 because again I feel confident that as I added it up there’s $68,000 worth of cuts that were kind of identified just going through the different departmental budgets so I’m confident that the money to make up Scenario 2 plus the growth is there without really hurting us too much but then the question is can we go a little bit deeper than that and that’s why I think we need to set proper priorities and because we’re going to impact people. Are we going to wait 2 h ours to plow streets or are we going to do things as far as not planting as many trees in the parks or you know what, where’s this extra money going to come from? I too agree that yeah, city, well government in general should not grow but government of Chanhassen really isn’t that big. You know it provides very basic services and I’ve been doing this now for 3 years and every year I ask all the residents if you had to do without something, what would you do without and I always get a different answer so what that tells me is, and again when you look at the awards the City wins, we must be doing something right so I think we have to take our time and deliberate before we really start cutting back into the budget below just maintaining what we’ve done. And as I said, I think we need to discuss the whole thing about some of the assumptions that are in there and discuss that amongst the council and again that’s part of setting the priorities so right now I’m very confident that we can meet Scenario 2 and that’s where I would also like to start from. Mayor Furlong: Thank you. Before Councilman McDonald spoke we had a 1, 2 and 3 so clearly this is an issue, and yet when we’re talking about the differences between these scenarios we’re talking about 1% of the total budget. The difference between Scenario 1 and 2 and 2 and 3, about $100,000 plus or minus and while that’s real money, in the general fund which is about $10 million dollars now, it represents about 1% so it’s not as if, regardless of where we end up 22 Chanhassen City Council - September 13, 2010 here we are relatively close in terms of the overall. It’s more a question of where should we be at this point and where do we want to get to by December. One of my thoughts is simply that I don’t want to approve a preliminary levy tonight that I wouldn’t feel comfortable approving in December and with the current economy, the current business environment, to move forward with a budget that would include a tax increase is not something I’d be comfortable supporting in December and so from that standpoint you know I don’t feel comfortable supporting Scenario 1 even though as staff recommends, it provides the most flexibility going forward. I think the information that we received over the many hours that we’ve talked about this budget suggests to me that simply by going through and defining expense categories and line items more consistent with how we’ve been spending in recent years as opposed to where we’ve been budgeting in recent years gives us very good confidence that the expense changes and the revenue changes within the, moving from Scenario 1 to Scenario 2 really is based upon our history and how we’ve been operating and so it isn’t a significant change. In fact I don’t think there’s any real change in service there. Either we’ve been doing it already or we know we’re going to be doing it so it’s strong. With regard to continuing forward we simply haven’t at this point identified where those dollars are coming from and so while I, while Scenario 2 provides that, that no increase in property taxes which for the average homeowner that is you know someone with a home who’s assessed value has changed with the same amount as the average tax base, it does capture the new growth which has been our prime in recent years. As there’s new growth and development there’s new demand for city services and that’s been a reasonable practice that we’ve followed. With that aside I think it provides a preliminary levy that shows for the total taxes being collected no change for the actual owner. I think that’s an important message that our residents want to hear. Then it’s incumbent upon us over the next few months to take a look at the assumptions that were made in putting together the preliminary budgets, as well as other ideas and service levels. We talked tonight. In fact the one thing Mr. Sticha when you brought up the budget calendar, I think that was the original budget calendar in your proposal but at our work session tonight the council agreed to accelerate some of the discussions to later this money, if possible early October, start working with staff to look at different service levels. Certainly talk about as Councilwoman Ernst mentioned, you know our health care policies. What are the different policies that we have. If those are areas that the council wants to look at, discuss those would be the times to do that. But without taking a position on that tonight or putting us with a preliminary levy that would require some of those actions to be taken so I think at this point Scenario 2 seems to be the best balance. It provides, in my mind, the ability of the City to continue to provide services that it is providing now over the next few months. I think clearly I can see that the council and staff can work together. Identify those areas that different members of the council want to consider. Whether or not the majority of the council goes along with any of the recommendations or not, that’s something that we’ll work on and decide. But there are other items in there too that may be refined over that period of time and there are some things that we just haven’t talked about yet in terms of where there might be some other opportunities to dig a little bit deeper and make sure that we have sufficient dollars in the budget, either based upon what history says and whether that suggests that we can move numbers up or down so from that standpoint I think that tonight I’m going to support Scenario 2 because if we end up there I can certainly support it in December, though it would certainly be my hope and expectation that with our work here in the coming months we might be able to even lower the levy below that level if it’s prudent and appropriate to do so. Any other discussion? Councilman Litsey. 23 Chanhassen City Council - September 13, 2010 Councilman Litsey: Although I support Scenario 1 and I think it gives us better flexibility moving forward, one of the things that does give me pause for thought and consideration for Scenario 2 would be that we did hear from the department heads earlier on this year. We’ve got some reductions in expenses that we’ve taken a look at. I’m not saying that’s where we’re necessarily going to go. Like you mentioned there may be other areas or we may go in a totally different direction but the revenue side troubles me more because I think we’re relying on a little bit more optimistic revenue projections when it comes to building permits so I would still feel more comfortable with Scenario 1 but for the sake of compromise and I think we have in consideration of I think the good work the council has done and really has done their due diligence this year in looking at all factors ahead of setting the preliminary levy, I could, although prefer not to, could go along with Scenario 2. Mayor Furlong: Alright, thank you. Any other discussion? Mr. Sticha the resolution in the council packet had some open numbers. Clearly that makes sense given the variable but there’s two numbers. One is the first number 1 and number 2 bullet points on the resolution have open lines. Based on council’s discussion for Scenario 2, what should those numbers be for number 1 and number 2? Greg Sticha: For Scenario number 2, line item number 1 which would be the general fund revenue and expend budget would need to be $9,637,600 and for line item 2 the total preliminary levy would need to be $10,321,390. Mayor Furlong: And for clarification the number that you just read off, the 9 million 6 number for item number 1, that number could change. That is not a no greater than number. Greg Sticha: Correct. The only number that is essentially tying our hands at this point is the preliminary total levy. We cannot increase from that number. We can go down from that number. Mayor Furlong Okay. Alright. Thank you. Is there any other discussion? Is not, would somebody like to make a motion? Councilman McDonald I’ll do the motion. I just, I’ve got a question. Do you want me to read it as part the way it is in the resolution or is there something I’m missing? Todd Gerhardt: You can just read the title of the resolution and the two dollar amounts that go into the resolution. Councilman McDonald: Okay. I’ll make a resolution that the council adopt the preliminary 2011 budget establishing Truth in Taxation tax levies and public hearing dates for 2010, collectable in 2011. Be it resolved that the City Council, City of Chanhassen as follows. That the 2011 preliminary budget for the City of Chanhassen is adopted in the aggregate revenue and expenditure amounts for the general fund of $9,637,600 and that the total preliminary levy to be certified to Carver County by September 15, 2010 is $10,321,390. Mayor Furlong: And Mr. McDonald are you also moving the resolutions 3 through 6 are also. 24 Chanhassen City Council - September 13, 2010 Councilman McDonald: 3 through 6 would also be adopted as part of that. Mayor Furlong: Thank you. Is there a second? Councilwoman Tjornhom: Second. Mayor Furlong Made and seconded. Any discussion on the resolution? Resolution #2010-80: Councilman McDonald moved, Councilwoman Tjornhom seconded that the City Council approve the resolution adopting the preliminary 2011 budget, establishing the Truth in Taxation tax levies and public hearing dates for 2010, collectible in 2011 with the aggregate revenue and expenditure amounts for the general fund of $9,637,600 and the total preliminary levy to be certified to Carver County by September 15, 2010 of $10,321,390. All voted in favor, except for Councilwoman Ernst who opposed, and the motion carried with a vote of 4 to 1. Mayor Furlong: Thank you everyone and thank you staff. A lot of work. Clearly from the discussions this evening a lot of work to go but very important to the City and I think while there may be differences up here tonight I think we can certainly take a look at those ideas and suggestions over the coming weeks and come to a resolution as a council collectively with staff on the best way to move forward. That completes our items of new business this evening. COUNCIL PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: Todd Gerhardt: We had a couple of things. The Mayor and I met with the Easterly Carver County School District this last Friday. I have to get used to that. Easterly, and the topic was trails and each community gave an overview of their trail system and very interesting to see some of the components and how they’re going to touch down in Chanhassen. One of the key ones was the LRT trail down in southerly Chanhassen by Gedney Pickle and the Seminary Fen area. Carver County and City of Chaska are working closely and getting some grant monies to acquire some of the right-of-way down there to make that connection. That connection would ultimately connect with Chaska’s trail system but as we build our system up Bluff Creek Drive and the rest of the southerly part our community can just generally go right into Chaska. Another big project they’re working on is in Victoria and Chaska along Bavaria and Rolling Acres Road to take anybody that would like to go from Chaska to Victoria to the Luce Line trail up off of Highway 7. So Todd Hoffman attended the meeting along with the Mayor and myself. Did a great job of showing our overall trail plan. So good meeting there and I know that was one of our key financial strategies for the year and I think we’re going in the right direction and Victoria, Carver and Chaska are also investing in their trail systems so that was good news. Anything Mayor you wanted to add? Mayor Furlong: No, just want to thank Todd Hoffman, Director of Parks for being there. He made a very good presentation and just put up a map of our city with all the trails and it’s 25 Chanhassen City Council - September 13, 2010 amazing what’s been accomplished over the years one section at a time. And I think we have, what is it? The plan is for about 80 miles of trails in total. We’re 80% of the way there about. We know we’ve got some big additions coming up with the 41 trail this coming year which is a joint project with Carver County. Adding to our existing trail system with a trail that runs basically from Minnewashta, MMW, excuse me. Minnetonka Middle School West down 41 on the east side connecting to our trails at Longacres Drive, but then also an underpass into Minnewashta Park which will be, and then the County’s putting about a mile worth of trails back into the park there so it’ll be a great opportunity not only for residents but even the students at the middle school to have a safe access over to the park for their classes and recreation opportunities so there’s a lot of good things going on. We talked as well and may lead into another one of your comments about some of the other trail connections that we’re looking at in the future so it was a good meeting. I want to thank Mr. Hoffman for getting up early and joining us and making a good presentation. Todd Hoffman: You’re welcome. Todd Gerhardt: Yeah, the school district really appreciates it when a community has a comprehensive trail plan and connect those neighborhoods to the schools. They want the kids to be able to walk there. Ultimately I think it helps them on their budget side in reduced busing costs but also to get them there safe and to have that connection to the school. I know Minnetonka’s very appreciative. I know a lot of discussions on subdivisions up around Minnetonka Middle School West that we made trail connections to that school and now the extension of the trail on Highway 41. Another link to the school so they’re very appreciative from our discussions we had with them. The Mayor and I also got up early this morning and we met with Ed Snyder from the Arboretum. The new Executive Director at the Arboretum. It was nice to meet Ed. Came from Santa Barbara, California and we welcomed to a state that has four seasons and that he should. Councilman Litsey: Remind him of that in the winter right. Todd Gerhardt: We offered to take him ice fishing and to experience life on the lake but I think he’s really going to enjoy the Arboretum and watching it change before his eyes with the four seasons. So that’s going to be kind of cool but great guy. He’s meeting with a lot of people and we were fortunate to get on his schedule and talk a little bit about Highway 5 upgrade. Looking at potential accesses to the Arboretum into the future. Our trail connections. The trail connection at Minnewashta Parkway and into the Arboretum so he’s excited. We’re hoping to partner on some projects down the line in education and other improvements in and around the Arboretum. And then I want to thank my staff and city employees that participated in the Huffman Race this past weekend. Just a beautiful day on Saturday and the race was well attended. I think we had 225 participants and I was one of those and I started and finished so. Mayor Furlong: Same day? Todd Gerhardt: As much as everybody tells you they used a calendar on me, that’s not correct. It was the same day. 26 Chanhassen City Council - September 13, 2010 Mayor Furlong: Okay, good. Todd Gerhardt The sun was up and the sun was still up when I finished. It’s a great race. Nice course that went through a residential neighborhood. Appreciate the residents putting up with that inconvenience but a lot of the homeowners were at the end of the driveway cheering people on so it was a fun race and great time of year to have it. That’s all I have. Mayor Furlong: Okay. Thank you. Any questions for staff? Comments? Okay. Very good. CORRESPONDENCE DISCUSSION. None. Councilwoman Ernst 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 8:30 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim 27