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CC 2015 12 14 CHANHASSEN CITY COUNCIL REGULAR MEETING DECEMBER 14, 2015 Mayor Laufenburger called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge to the Flag. COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilman McDonald, Councilwoman Tjornhom, Councilwoman Ryan, and Councilman Campion STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Paul Oehme, Kate Aanenson, Todd Hoffman, Greg Sticha, and Roger Knutson PUBLIC PRESENT: Amy & Ron Dvorak 4061 White Oak Lane Mayor Laufenburger: Well good evening and welcome to this council meeting. Those of you that are present in the chamber as well as those of you that may be watching at home on Mediacom Cable Channel 8 or 107.2. For the record all members of the council are present this evening and we’re delighted to have those of you in the chamber with us as well. First item is just to review the agenda. Those of you that may have an agenda in front of you, item H-1 has been deleted from the agenda for this evening. That’s new business on the Gateway Medical Building. That has been deleted. Council members are there any other modifications to the agenda at this time? There being none we will proceed with the agenda as printed. CONSENT AGENDA:Councilwoman Tjornhom moved, Councilman McDonald seconded to approve the following consent agenda items pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated November 23, 2015 2. Receive Planning Commission Minutes dated December 1, 2015 3. Receive Park and Recreation Commission Minutes dated November 24, 2015 Resolution #2015-76: 4. 2016 Street Reconstruction Project 16-01: Accept Feasibility Study; Call Public Hearing Resolution #2015-77: 5. 2016 Street Mill and Overlay Project 16-05: Accept Feasibility Study; Call Public Hearing Chanhassen City Council – December 14, 2015 Resolution #2015-78: 6. Approve Joint Powers Agreement with Carver County for CSAH 61 (Flying Cloud Drive) Improvements from CSAH 101 to Charlson Road in Eden Prairie Resolution #2015-79: 7. TH 5 Acceleration Lane Improvements: Approve Zero Dollar Permit to Construct (Temporary Easement) for Stormwater Improvements on City owned Property at the NE Corner of TH 5 and Market Boulevard; Approve Land Use Permit for Trail from CSAH 17 to the Carver/Hennepin County Line Resolution #2015-80: 8. Approve Bid for Recoating Lake Lucy Water Reservoir 9. Glaccum Highlands: Approve Revisions to Development Contract nd Resolution #2015-81: 10. Reflections 2 Addition: Accept Streets & Utilities Resolution #2015-82: 11. Approve Joint Powers Agreement with Carver County for Powers Boulevard and Pleasant View Road Intersection Improvements Resolution #2015-83: 12. Trunk Highway 101 EAW Preliminary Design: Approve Resolution Authorizing Loan Application and Purchase of Property Through Metropolitan Council Right-of-Way Acquisition Loan Funds (RALF). 13. Bethel Fellowship Church: Approval of Interim Use Permit to Operate a Church on Property Zoned Industrial Office Park (IOP) and located at 1252 Park Road. Applicant: Jonathan Wall/Owner: Core Minneapolis Industrial Portfolio, et al. 14. Approval of Shared Services Agreement Between the Excelsior Fire District and the City of Chanhassen; Part Time Administrative Support Specialist for the Chanhassen Fire Department 15. Approval of Upholding Monetary Limits on Tort Liability as Established by Minnesota Statute 466.04 Resolution #2015-84: 16. Approve Resolution Accepting Donation from Mount Olivet Rolling Acres 17. Approval of City Council Minutes dated December 7, 2015 All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS: None. 2 Chanhassen City Council – December 14, 2015 PUBLIC HEARING: REVOCATION OF CONDITIONAL USE PERMITS. Mayor Laufenburger: Ms. Aanenson, good evening. Kate Aanenson: Good evening Mayor, members of the City Council. As part of the annual duties of the planning department we review all conditional uses and interim use permits. Let me clarify. Not all of them. We put them on a schedule to make sure that they’re in compliance. As a part of that if there’s an interim use or conditional use that is no longer being used then in order to clean up the property we recommend that those be revocated by the City Council as is the process so tonight we’re looking at 4 conditional use permits and I’ll go through each of those briefly. This is the public hearing as we’ve stated on here and if the conditional use hasn’t been used for 6 months it can become void but most of these have been longer than 6 months so we didn’t just get right to the 6 months and then notify property owners. So again all the property owners have been notified that the conditional use is being voided and then again we are requesting the public hearing. So the first one is on 330 Pleasant View Road. A conditional use permit. This conditional use permit is to allow a horse in the RSF district. This was done back in 1980’s and this is no longer a permitted use with horses in the residential so up until then it’s been legal non-conforming. There has not been horses on this property so this is one that the staff is recommending that we revoke. Mayor Laufenburger: Can we? Kate Aanenson: Yep. Mayor Laufenburger: Ms. Aanenson can we deal with all of these together after? Kate Aanenson: We have all the findings, yep. Mayor Laufenburger: Okay. Kate Aanenson: All the motion will be in one motion. If you have questions on each of those, I’m sorry I’ll pause and if you have questions on any of these. Mayor Laufenburger: You can pause and staff, or if council has any questions. Kate Aanenson: Okay great. The second one is on Lakota Lane. As you are aware this is part of when we officially mapped the new 101. This is a property that the City has bought. There is a horse stable on this property. It’s under a conditional use. In this zoning district horses are permitted. A conditional use is not, no longer being applied. This would be an interim use and again an interim use is where we put a deadline on such as such time these improvements become available. Sewer and water, those sort of things so while the owner of that property is renting it back from the City, there still will be a horse on there but the conditional use is no longer applicable. That also helps us as we clean up the property or as you know we’re trying to 3 Chanhassen City Council – December 14, 2015 acquire properties down there. There’s less encumbrances on the property so with that the homeowner is satisfied that to continue to keep the horse on the property but there will not be a conditional use with that. Any questions on that one? I’m sorry. Councilman Campion: Kate… Kate Aanenson: Yep, there will be a horse on the property but there will not be a conditional use for a stable or anything like that so she can keep her one horse on there. She’s not boarding horses. That sort of thing so her own personal use. Councilman Campion: Okay. Kate Aanenson: The Bluff Creek Inn, again this is for a bed and breakfast. A bed and breakfast is a conditional use. Is a conditional use within the zoning district. Again that’s been changed to an interim use in the zoning district back when this was approved so it hasn’t been used as a bed and breakfast for a number of years so with that we are recommending again revocation of the conditional use. So again if that was to come in today we’d have it go under the interim use where we’d put a definite timeline on that. And then finally a conditional use for an antenna on this property. This property is zoned rural residential. A cell tower is a conditional use so someone else in this zoning district could do a cell tower. Those are permitted within. Again a conditional use would require a public hearing before the Planning Commission and then be approved by the City Council but that conditional, the tower is no longer there. It is not being used so with that to clean up the property we are recommending that you also consider revocation of that conditional use. So that concludes the 4 properties so at this time, again we did notify all the property owners. People within 500 feet if they had questions so there is standards for all of the resolutions for all of those, for all 4. Pretty much they’re all consistent. No longer in place. That sort of thing if anybody had questions on the resolution I’d be happy to answer that but we are recommending you open a public hearing and then suggested a motion for you. Mayor Laufenburger: Alright, thank you Ms. Aanenson. That concludes the staff report at this time. First of all before I open the public hearing, are there any questions from council to Ms. Aanenson? Alright, at this time I will open the public hearing. That means that anybody who is present in the chamber who would like to speak to any of these, any of these revocation of the conditional permits, you may do so at this time by simply stepping to the podium. State your name and address and also the perhaps the CUP under which you would like to speak. Is there anybody in the chamber that would like to speak to this conditional use permit revocation at this time? Alright there being none I will close the public hearing for the revocation of these conditional use permits. Bring it back to council. Any comment or question from council or motion? Councilman McDonald: How about a motion Mr. Mayor? 4 Chanhassen City Council – December 14, 2015 Mayor Laufenburger: Councilman McDonald. Councilman McDonald: I would propose that the City Council approves the resolutions revoking conditional use permits 1982-02, 1984-07, 1985-04, 1996-04 and adopts the attached Findings of Fact and Decision. Mayor Laufenburger: We have a motion. Is there a second? Councilwoman Tjornhom: Second. Mayor Laufenburger: Thank you Councilwoman Tjornhom. Is there any further discussion? I just have one question Ms. Aanenson if you wouldn’t mind. The, when we set up these conditional use permits and we have a number of them in the city, is that correct? Kate Aanenson: That’s correct. Mayor Laufenburger: We monitor these kind of we go out and inspect to make sure that the conditional use is being adhered to and complied with is that correct? Kate Aanenson: That’s correct. I think we talked to you about that when we did the 61 corridor. We have a lot of interim uses and conditional uses down there but yes. That’s something that we do with the expectation that the surrounding properties conditional uses are permitted. You can put conditions on to mitigate that so we want to make sure it was hours of operation are limited, those are the kind of things. No outdoor storage. Those are the kind of things that we make sure that they’re being good neighbors and follow up on. Mayor Laufenburger: Okay. So obviously these 4 properties when they come off of conditional use then we will, they will no longer be on the rolls to be inspected for that. Kate Aanenson: That’s correct. Mayor Laufenburger: Is that correct, okay. Alright, thank you. Any further discussion? Resolution #2015-85:Councilman McDonald moved, Councilwoman Tjornhom seconded to approve the resolution revoking Conditional Use Permit #1982-02 and adopts the attached Findings of Fact and Decision. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Resolution #2015-86:Councilman McDonald moved, Councilwoman Tjornhom seconded to approve the resolution revoking Conditional Use Permit #1984-07 and adopts the attached Findings of Fact and Decision. All voted in favor and the motion carried unanimously with a vote of 5 to 0. 5 Chanhassen City Council – December 14, 2015 Resolution #2015-87:Councilman McDonald moved, Councilwoman Tjornhom seconded to approve the resolution revoking Conditional Use Permit #1985-04 and adopts the attached Findings of Fact and Decision. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Resolution #2015-88:Councilman McDonald moved, Councilwoman Tjornhom seconded to approve the resolution revoking Conditional Use Permit #1996-04 and adopts the attached Findings of Fact and Decision. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: Next on our agenda is new business. I indicated that item H-1 has been deleted. Let’s move to item 2. AMENDMENT TO CITY CODE CHAPTER 4 CONCERNING FEES. Mayor Laufenburger: Is there a staff report? Greg Sticha: Yes, good evening Mayor and City Council. Mayor Laufenburger: Mr. Sticha, good evening. Greg Sticha: On an annual basis staff presents to council recommended changes to the City’s Chapter 4 of our ordinance in regards to fees. This evening we presented in front of you a list of items staff is proposing for changing the City fees. A few items and I’ll briefly review those with you first this evening. One, the first item is an amendment to change Section 4-15 which applies to the liquor license investigation fee. The background check that is done by Carver County to amend it to $250 rather than $100 as per what we are paying the County for that service. The second item is in regards to building permit fees. Staff is recommending a 3 percent change in Table 1-A of the building permit fee schedule to account for increased costs in regards to credit card processing fees the City is being charged. Of note the City has not amended it’s building permit fees in regards to Table 1-A since 2009 so it has been 6 years since we’ve seen any increase in that particular table. The other 3 major areas are in regards to the City’s utility funds and I’m going to go over each of those funds very briefly and talk about what the council went through over the last 3 months to come to this evening’s change in the fees for all of it’s utility funds. The City goes through an extensive process with a financial advisor to monitor our 3 city utility funds. The water, sanitary sewer and storm water funds. Based on this year’s findings and direction from City Council we’ll be amending the city code in terms of fees for each of those utilities as follows. First the water fund. One item of particular and I guess very significant importance that the council discussed over the last several months, and actually we’ve had been discussing over the last several years is when to build a west water treatment plant. Council has put this as a priority rather sooner rather than later. We’ve had the plant scheduled anywhere from 2017 to 2023 in our long term financial planning models. Council felt it was important to make sure that that treatment plant get built in 2017-2018 time frame. 6 Chanhassen City Council – December 14, 2015 Therefore in terms of the water proposed rates for 2016, in order to achieve a water treatment plant in 2017 staff’s recommended changes for user charges would be an increase of 5.5 percent in 2016 and connection charges increase of 5.5 percent for 2016 for the water utility rates. In terms of storm water utility rates not impacted by the water treatment plant staff is recommending a 2 percent increase in user charges and a change in how to account for connections for storm water fees, and again council and staff had a significant discussion in September and October on how we currently account for storm, our storm water connections and certainly not going to rehash all of that for council but the outcome of those discussions was a revision to how the City charges for it’s storm water fees and going away from a model that was rather complicated to a much more simpler model and it’s included within the ordinance and within the memo. It’s a per acre fee depending on the development type and the amounts are listed on page 3 of my memo for each of the various development types. Lastly on the sanitary sewer side staff is recommending a 3 ½ percent increase in sanitary sewer user charges and a 2 percent increase in connection charges for that particular utility fee. All of these increases are exactly in line with what we discussed with council in our previous water treatment studies with Ehlers and Associates are the City’s financial advisor. And I believe that is all of the changes staff is recommending to Chapter 4 of the city code in terms of fees. Mayor Laufenburger: Alright, thank you Mr. Sticha. Any questions for Mr. Sticha from council? I have one Mr. Sticha. If this ordinance passes when do these fees take effect? st Greg Sticha: All of the fees except for the building permit fee would take effect January 1 of 2016. We did put a codification within the building permit fee to allow people who are finding st out about this last minute that they have until April 1 where we will honor the 2015 fee for st building permit fees up until April 1. Mayor Laufenburger: So if any citizens have any remodeling projects or any new construction or if any developer wants to come forward they can avoid the increase in fees by submitting their st permit and paying for their permit between now and April 1, is that correct? Greg Sticha: That is correct. Mayor Laufenburger: Okay, alright. Very well. Any other questions of staff? Anybody care to make a motion on this proposed adoption of ordinance? Councilwoman Ryan: Mayor I’ll make a motion. Mayor Laufenburger: Councilwoman Ryan. Councilwoman Ryan: I propose that the City Council adopts the attached ordinance amending Chapter 4 of the Chanhassen City Code revising the fees for 2016. Mayor Laufenburger: Thank you. Is there a second? 7 Chanhassen City Council – December 14, 2015 Councilman Campion: Second. Mayor Laufenburger: Thank you Councilman Campion. Is there any further discussion? Councilwoman Ryan moved, Councilman Campion seconded that the City Council adopts the attached ordinance amending Chapter 4 of the Chanhassen City Code revising the fees for 2016. All voted in favor and the motion carried unanimously with a vote of 5 to 0. CONSIDER APPROVAL OF VARIOUS AMENDMENTS TO CITY CODE. Mayor Laufenburger: Would this be you Ms. Aanenson? Kate Aanenson: Yes it is. Mayor Laufenburger: Alright. Kate Aanenson: Thank you Mayor, members of the City Council. Again as part of our duty as on the planning staff we look at the city code and make sure that we’re current with some of the nomenclature and changes that may have occurred through the State so we did, are making some recommendations to you. Chapters 1, 7, 18, and 20. We did have a work session with the City Council and we also had a work session with the Planning Commission and a public hearing was held by the Planning Commission on Chapters 18 and 20 which is under their jurisdiction. So the Chapters 1 and 7 are under your jurisdiction but I’m going to go through all the changes kind of in a summary format and if you have questions I’d be happy, I’ll kind of pause after each one and feel free to ask questions. We’ll start with Chapter 18 under Subdivisions. So under delineations and wetlands we wanted to clarify that where any plat adjoins a lake or a pond that they have to delineate that portion of a wetland when it’s adjoining so again the recommendation for that is to clarify what’s intended with that. Under Chapter 20-28, undue hardship. That was a change that went through the State Statute has been changed from practical difficulty. From undue hardship to practical difficulty. We changed it in one section of our code and we didn’t change it in others so really just kind of a Scribner’s error. Just correcting that. Changing the wording in another place in the code so they’re consistent. This is another change under 20-921. Building permits are required for buildings over 200 square feet. Currently that was a change in the State law. Our code says 120 square feet so even though we don’t require a building permit I just want to remind, we still always check on zoning permits to make sure they’re not placing a structure in an easement. They’re not over their hard cover but they don’t need a building permit for something over 200. It used to be 120 square feet so again changing the ordinance to be consistent with the new regulations. Mayor Laufenburger: So we are essentially complying with the State Statute. 8 Chanhassen City Council – December 14, 2015 Kate Aanenson: That’s correct. Mayor Laufenburger: Is that correct? Kate Aanenson: That’s correct. So the next one would be site plans. Often times we do a site plan agreement in place of a development contract when there’s no public improvements so we would still with a site plan agreement, and these can be large projects where we would still require security. A letter of credit for landscaping. Any other private utilities that may need to go in such as storm water so we would require a letter of credit. They’d go through the same process so we’re recommending that we also get security. We’ve been doing this but we want to make sure it’s clearly spelled out in the ordinance, specifically developers want to know how we’re going to draw down on those and typically we try to be very expedient on that. When everything’s in we make an immediate draw and then we have a warranty over time so we’re following the same process we would use with the development contract but this would be with a site plan agreement. Any questions on that? Okay. And then interim uses in the RSF. We’re just again correct citation is what’s on there for private stables and horses. Pretty straight forward on that. Just sliding or correct again kind of a Scribner’s error on that one. Another one that there’s a little bit of ambiguity on is keeping of animals. Want to clarify that. We say, we define farm and there’s some ambiguity on what that means so we’re making that 10 acres or more. We get that question a lot. The people that want to have goats. Chickens. That sort of thing so we’re clearly setting the expectation of what should be. The parking standards. This is probably where we had the most analytics on and a little detailed report on that one. We’ve come to discover that when we have a multi-tenant building we’re probably short on when we have 2 restaurants. Short on that and we have a single restaurant user we’re probably a little too much parking requirement on that so as you can see in the staff report we surveyed a number of other cities to see what they do and what we learned is people are all over the map. We know when you have adjacent parking that people will use it. For example Noodles, the new Noodles if they are over you can creep into Target and it may not be a problem. Maybe this time of the year but normally it wouldn’t be a problem. There’s other places where there isn’t a place to maybe. Mayor Laufenburger: Creep. Kate Aanenson: Creep. That’s a good word, thank you Mayor. Mayor Laufenburger: Technical term for parking. Kate Aanenson: I appreciate the help there. So what we did is after looking at those communities and try to come up with I think Bob Generous did a great job kind of giving you some good analytics. Looking at what would be a good ratio when we have 2 restaurants. We want to make sure that we’ve got enough parking so we are recommending changes in a couple different ways. One we don’t accommodate for restaurants at fast food that have drive thru. That that accommodates some of their parking and we know we’ve got a couple new restaurants 9 Chanhassen City Council – December 14, 2015 coming in that have drive thru’s and they really know their customers and what percentage goes through so taking some of that data and applying that so looking at not just for restaurants in a shopping center but also what a drive thru restaurant would accommodate so we are recommending different ratio of parking standards so the thresholds are spelled out in the ordinance. Unless you have specific questions that’s really kind of the nuts and bolts of it. Mayor Laufenburger: So just to clarify one thing. These are, this is an ordinance so this will be part of the laws of the land for Chanhassen. Kate Aanenson: That’s correct. Mayor Laufenburger: But isn’t it also true that if a developer comes forward with a unique set of circumstances because of the plot of land or whatever it might be, we work with that developer to determine if it’s necessary perhaps for a variance to that ordinance, is that correct? Kate Aanenson: You’re correct. We do allow for proof of parking. Mayor Laufenburger: There we go. Kate Aanenson: So that would be the word. It’s a little bit different testing on variance but that would allow them to show their operations which they know very well. Kind of what their peak hours are so, and then also their number of employees. You know kind of the shift changes sometimes are where we have the problem so you’re right. We allow them to proof of parking to demonstrate their need. Mayor Laufenburger: Okay, thank you. Kate Aanenson: And then finally we’ve had a couple issues on existing lots where the slope going into a house may exceed our grade for a driveway and what that forces someone to do is go in and ask for a variance and sometimes in order to go less than 10 percent you need a variance on the hard cover so what we’re saying in those circumstances that we would leave that up to the City Engineer to review that and see if there’s, through minor tweaking of that, if they can meet it so they wouldn’t need a variance for the steepness of the driveway and it doesn’t put them into another category trying to get a hard surface variance by trying to make it be a switchback or something like that so we think that the City Engineer can make the call on that one if it would be, again most of these are existing lots of record. We certainly don’t encourage that or wouldn’t approve those in new subdivisions that are coming in so these are the circumstance of where you have existing lots of record and there’s some of those out there so that would be our last recommendation and with that I’d be happy to answer any questions you have and they’re just recommending a motion then to approve the ordinance changes. Mayor Laufenburger: Ms. Aanenson you spoke to Chapters 18 and 20. 10 Chanhassen City Council – December 14, 2015 Kate Aanenson: Yes. Mayor Laufenburger: Were there also changes to Chapters 1 and 7? Kate Aanenson: Yes. One would have been the definition and that would be in farm animals and Chapter 7 was the one regarding building structures without, the 120 to 200. That would be under the building. Mayor Laufenburger: I’m looking at one in my packet that refers to open fences or decorative fences. Kate Aanenson: Oh, I skipped over that one. Mayor Laufenburger: Is that part of it? Kate Aanenson: Yes, that is also a part of one too. Mayor Laufenburger: Just for the record I wasn’t sure if that was. Kate Aanenson: Yes, thank you. Mayor Laufenburger: Could you just take a moment to explain that? Kate Aanenson: I’ve got to find that, sorry. Mayor Laufenburger: I believe that’s part of Chapter 1. I have it right in front of me and it’s short. Should I just read it? Kate Aanenson: Thank you. Mayor Laufenburger: And then you can comment to it. So Chapter 1 is General Provisions. Open fences or decorative fences such as wrought iron fences or a column or rock type quarter posts, these fences are permitted in the front yard and may be as tall as 6 ½ feet. There is currently no definition for what was intended. Kate Aanenson: That’s correct because right now we have people that want to put solid fences in their front yard which is not permitted, thank you. Mayor Laufenburger: Okay, so essentially we’re providing definition. Kate Aanenson: That’s correct and that’s what Chapter 1 is, correct. 11 Chanhassen City Council – December 14, 2015 Mayor Laufenburger: Okay. I think that includes it all. Any questions for staff? Any comments or motion regarding ordinances amending Chapters 1 and 7 and Chapters 18 and 20? Councilwoman Tjornhom: I’ll make the motion Mr. Mayor. Mayor Laufenburger: Councilwoman Tjornhom thank you. Councilwoman Tjornhom: Mr. Mayor I’d like to make the motion that City Council approves the ordinance amending Chapters 1 and 7 and the ordinance amending Chapters 18 and 20 and the adoption of a summary ordinance for Chapters 18 and 20 for publication purposes. Mayor Laufenburger: Thank you Councilwoman Tjornhom. Is there a second? Councilman McDonald: Second. Mayor Laufenburger: Councilman McDonald gets credit for that one. Any further discussion? Councilwoman Tjornhom moved, Councilman McDonald seconded to approve the Ordinance amending Chapters 1 and 7 and the Ordinance amending Chapters 18 and 20; and adoption of a Summary Ordinance for Chapters 18 and 20 for publication purposes. All voted in favor and the motion carried unanimously with a vote of 5 to 0. CONSIDER APPROVAL OF RESOLUTION ADOPTING THE FINAL LEVY, 2016 BUDGET AND 2016-2020 CAPITAL IMPROVEMENT PROGRAM (CIP). Mayor Laufenburger: Is there a staff report Mr. Sticha? Greg Sticha: Yes, good evening Mayor and council. This evening the council’s going to be asked to pass a final tax levy and budget for taxes payable in 2016 and I’m going to go through a brief power point that kind of explains to our audience at home as well as here in council chambers how the City Council came to the proposed, the proposal in front of them. The budget process actually starts way back in June and the City Council has had several meetings on the entire budget over the last few months. City staff reviews the budgets in June and July. The Finance Director, myself and the City Manager review the department head requests that were submitted back in June and July. In August the city staff presents to City Council for the first time a detailed budget. General fund budget discussing all the various line items of all the various departments within the city for their analysis on a more in-depth level. In September the City Council passed a preliminary tax levy. That number is used as part of the Truth in Taxation statement process. The statements that went out about 3 weeks ago or maybe 4 weeks ago now that the citizens received. We held a public budget meeting last Monday to discuss the information on those statements and then this evening, tonight the council will be asked to adopt a final budget and levy for taxes payable in 2016. Taking a look at the general fund expenditures, and this would be general fund only, the total expenditures proposed for the 12 Chanhassen City Council – December 14, 2015 general fund are $10,486,000 with no real significant changes within various departments but with a total spending increase of 3.1 percent. On the revenue side for the general fund again a balanced budget so you’ll see the same number that you saw on the expenditure side of the budget. Proposed increase of $10,486,000 or increase of $321,000 to a total of $10,486,000 in proposed revenues for taxes payable in 2018. 2016. Excuse me. Mayor Laufenburger: Were you testing me Mr. Sticha? Greg Sticha: Yes. I think I did that twice now. I did it in the resolution earlier in the week and now actually in my presentation so. Mayor Laufenburger: You may think it would be fun to be 2018 but there are 25,000 people in Chanhassen that can’t wait to get til 2016 alright. Greg Sticha: You’re absolutely correct. Taking a look at the City’s general fund expenditure history, this graph just shows total general fund spending since 2006 and the change from year to year. So what changes in the 2016 budget as compared to the 2015 budget? Most expenditure line items remain relatively flat. The 3 percent increase would kind of indicate that. The 3.1 percent. 1.6 percent increase. Wage increases of 2.7 percent were originally included in the budget the City Council saw in August and September. Since that time staff has worked with council on this number a little bit. We had to make some adjustments to achieve the scenario 2 as the City Council called it when they set a preliminary levy back in September. One of the modifications we had made at that time was changing wage increases of 2 ½ percent. We’ve had some changes within the budget itself that allowed for that to be reinstituted back to 2.7 percent and then earlier this evening council also gave direction to staff on allocating $14,000, and I’ll talk about that item here in a minute. Budgeted permit revenue, we did increase $20,000 and you saw that in front of you just a few minutes ago. The increase in table 1-A of the building permit fees will general about $20,000 a year in new building permit fee revenue. The health care contract for the City came in at an 11 percent increase. Staff previously to about October had been budgeting 13 percent so that modification was made since the preliminary levy was set in September. New growth for taxes payable in 2016 is estimated at 1.87 percent by Carver County. This would include the decertification of TIF District 4 which the council did earlier this fall. And a slight change since our last meeting is the $14,000 in enrollment changes. City staff electing different enrollment status in our various health care plans resulted in $14,000 in savings. Early this evening staff was directed by council to apply that amount towards wage increases which would bring wage increases to 2.85 percent for 2016. So taking a look at how this impacts the overall levies. Some of the numbers got changed, oh excuse me, since our last meeting so take a look at the 2016 preliminary column as I made the updated changes directed by City Council. In that column I have not made the changes in the other columns. Excuse me for that. Mayor Laufenburger: So your, I know Mr. Sticha you made these changes within the last half hour after we. 13 Chanhassen City Council – December 14, 2015 Greg Sticha: I did. Mayor Laufenburger: Council directed staff to come back with a recommendation. So what you’re showing as the column heading 2016 preliminary is actually, it is the final recommendation from staff in accordance with the direction that City Council gave you, is that correct? Greg Sticha: That is correct. Mayor Laufenburger: Okay. Greg Sticha: The preliminary levy was $10,679,621. Staff is now recommending a final levy of $10,629,621. That would result in a levy increase of 1.39 percent. You can see that in the bottom corner of this page and with again a reminder that new growth was 1.87 percent. This final levy would be less than new growth. So this slide again not updated at this point in time but you can see the purple bar represents new growth which is, and of course would still be 1.87 percent. With the changes made earlier this evening the total levy would be an increase of 1.39 percent so this green bar would be obviously a little below where you see it on this slide right now. So how does the levy as instituted with the preliminary levy impact taxpayers? With the preliminary levy of $10,679,000 the average home changed in value by about 1.4 percent. We’ve taken a number of the Truth in Taxation property tax statements of the residents. What we’re seeing is if your home changed in value by about 1.2 percent your city portion of your property taxes saw zero dollar change as compared to the previous year. With the changes implemented by council earlier this evening that number will be higher and will result in the majority of homes seeing a reduction in their city portion of their property taxes for 2016. Taking a look at what a, what makes up a property tax statement for a home in School District 112, one of the two school districts within city boundaries. City portion of your entire property tax bill being 20 percent and the other 80 percent the other 3. Two major jurisdictions and then 5 percent accounting for the Mosquito Control District and a couple other small districts within the taxing authority of the city. So how does the City compare in terms of budgeted expenditures to some of our like cities within the metro area? We do this every year for the City Council to kind of monitor how our budgeted expenditures compared to some of our key financial strategy cities as the City Council calls them and taking a look at your 2014 as compared to 2015 budgeted expenditures, which is the most current data available on the State Auditor’s website you can see Chanhassen has budgeted expenditures with an increase of 2.47 percent. The average of our comparable cities being just under 4 percent. You can see some cities with slight reductions and other cities with significant increases. It’s typically been the goal of this City Council and previous city councils to keep the change in budgeted expenditures relatively stable from year to year. Trying to avoid fluctuations of either decreases followed by double digit increases which can make it much more difficult for a homeowner to manage their bills I guess for all of us here if your property tax statement, your property tax bill goes down by a significant percentage one year and then up by a significant percentage the next year, it can be kind of frustrating and this 14 Chanhassen City Council – December 14, 2015 council and previous councils has taken the approach of a very steady moderate approach to it’s spending changes from year to year. Taking a look at how we compare to other cities within Carver County, our budgeted expenditures again no different than previous years. The lowest steady increase from year to year. You can see Waconia did have a significant decrease this past year. The previous year they had a significant increase. The average being 4.65 percent within Carver County. So on a per capita basis how does Chanhassen compare to our comparable cities in terms of per capita spending for 2015? Chanhassen at or near the top at $422 per person. The average being $504 and from a year to year basis we are either number one or number two every year for the last several years. And comparing on a per capita basis to other Carver County cities, the lowest of all the significant or large Carver County cities, the average being $478. And how does the City’s tax rate compare to all the other cities within Carver County? The City’s tax rate is the lowest within Carver County. The second closest would be Chaska. Very close to our tax rate. Significant achievement over the last several years. This is the second year that our tax rate is lower than Chaska’s so we now can say we do have the lowest tax rate within Carver County and. Mayor Laufenburger: We don’t say that to gloat though do we Mr. Sticha? Greg Sticha: No. Mayor Laufenburger: It’s just that’s the way the numbers roll. Greg Sticha: That’s a point of fact that’s all. So based on all that information, based on the numerous meetings the City Council had over the last several months staff is recommending adopting a total levy of $10,629,621. A general fund budget of $10,486,000 and a CIP for years 2016 through 2020 in the amount of $156 million dollars. Of note on the CIP item of $156 million 54 percent of that number or $84 million dollars is actually contributions from other agencies so we are not authorizing spending of $156 million this evening. That’s simply a planning financial document that we use to account for all of our next 5 years planned construction and capital needs. That’s all I have in terms of presentation. Mayor Laufenburger: Thank you Mr. Sticha. Are there any questions of Mr. Sticha? I have a couple just if I may. Let’s talk about the CIP a little bit. This $156 million dollars. You mentioned that this is a plan and talk a little bit about some of the plans that are in that capital, CIP. It stands for capital improvement project is that correct Mr. Sticha? Greg Sticha: That’s correct. Mayor Laufenburger: Just talk a little bit about what are some things that we as a City Council ask to be included in the CIP. Greg Sticha: The most significant would be road construction projects throughout the city. The majority of which are either funded with state or federal dollars. They’re included as a part of 15 Chanhassen City Council – December 14, 2015 our planning document so that we keep track of our portion of whatever funding source that we might have within that project but by far the most significant portion of our CIP are street improvements. Road improvements. Significant projects such as the 101 river crossing. The 61 corridor construction project. All of those are included in this document so. Mayor Laufenburger: So we include them in this document because they affect the citizens of Chanhassen even though the financial impact may be nil on the citizens of Chanhassen, is that correct? Greg Sticha: That is correct. Mayor Laufenburger: Okay. So that’s road construction. What else is in there? Is street repairs in there too? Greg Sticha: Street repairs. Utility fund improvements which in a lot of cases can be in conjunction with the road construction projects. There’s also our equipment purchases are included within this. That’s actually a relatively small portion of the entire amount so for example for 2016 there are $67 million in CIP dollars that are allocated to that year. Roughly only a million or less is for actual equipment. Of the $67 million, $57 million is contributions from other agencies so. Mayor Laufenburger: So also there are, there’s dollars allocated for things like parks and trails and things like that. Greg Sticha: That is correct. For 2016 there are $775,000 allocated for park and trail improvements the largest of which would be Bandimere Community Park improvements for 2016 at $400,000 and then a couple other smaller projects included within that number. Mayor Laufenburger: So my point in asking these questions is really the CIP is a planning document that the council and staff use to anticipate what we would like to have happen in the future. Do we ever deviate from the CIP Mr. Sticha? Greg Sticha: Absolutely. Like you said this is a planning document only. This does not give staff blank checks to go out and already purchase any of these items. Any item over $20,000 per the City’s purchasing policy will come before council again for final approval. This just kind of gives staff a course or plan for the year of things that need to be studied and brought forward to council one more time for a final discussion in terms of what vendor we may go with or who may do the construction on a particular project so as you said this is simply a planning document. This is not final approval of any one of these projects or pieces of equipment. Mayor Laufenburger: Good, okay. I appreciate that clarification. Any other question or comment from staff? Then I would look for either a, oh. 16 Chanhassen City Council – December 14, 2015 Greg Sticha: I just noticed something on the CIP number. What, within my resolution. Mayor Laufenburger: $918,300. Greg Sticha: Yes. Disregard my power point and use what is in the actual resolution. The $918,300. Mayor Laufenburger: Okay. Councilman Campion: Minus 50 for the general. Mayor Laufenburger: Well keep your, I would say whoever makes this motion is going to need to be very agile and nimble and on their feet because we’ve used a few different numbers here. Councilman Campion: I’ll make the motion. Mayor Laufenburger: Councilman Campion, do you have a motion? Councilman Campion: I have a motion. The City Council adopts a resolution establishing the 2016 final levy at $10,629,621 and approves the total general fund expenditure of $10,486,000 and a CIP for years 2016 to 2020 in the total amount of $156,918. $156,918,300. Mayor Laufenburger: That’s very nimble Mr. Campion. Have a motion. Councilman Campion: After a few tries. Mayor Laufenburger: Is there a second? Councilwoman Ryan: Second. Mayor Laufenburger: Thank you Councilwoman Ryan. We have a valid motion and a second. Any future discussion? Resolution #2015-89: Councilman Campion moved, Councilwoman Ryan seconded that the City Council adopts a resolution establishing the 2016 final levy at $10,629,621; approves the total general fund expenditure of $10,486,000 and a CIP for years 2016 to 2020 in the total amount of $156,918,300. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: Mr. Sticha, my compliments to your entire staff for navigating us through this process. Both arduous as well as flexible process so thank you very much Mr. Sticha. Greg Sticha: Thank you. 17 Chanhassen City Council – December 14, 2015 ADMINISTRATIVE PRESENTATIONS: None. COUNCIL PRESENTATIONS: None. Mayor Laufenburger: Let me take this opportunity to, well each year it is the City Council’s responsibility to review the performance of our City Manager, Mr. Todd Gerhardt who is accountable directly to the council. It is my privilege to share the results of the 2015 performance evaluation for City Manager Todd Gerhardt. The City Council met in executive session on November 23, 2015 to review Mr. Gerhardt’s performance for this past year. We also considered his compensation for 2016 and earlier this evening we met directly with Mr. Gerhardt to provide our observations and comments with him directly. The summary that I’m about to give reflects these discussions. The City Council rated Mr. Gerhardt’s performance for 2015 as exceptional indicating that he consistently achieves the highest level of performance in his duties and often achieves above the level of expected or anticipated results. Now folks to begin each year the City Council working with city staff establishes annual goals and strategies. These goals then become the work plan that City Manager Gerhardt operates against throughout the year. Working with his department heads and City Council Mr. Gerhardt guides and coordinates these strategic initiatives along with the normal day to day operating all aspects of city services for the community. Some of the key highlights of this past year, and by no means all of them but some include developing a section on the City’s website that would provide an easy and simple entry into all activities within the city. This section of the website was then evaluated by an independent non-profit organization dedicated to encouraging and promoting government transparency. The Chanhassen Transparency section was given a rating of A+. Number two, Mr. Gerhardt guided the City Council through a review, a design and final mapping of the 101 corridor from Pioneer Trail to CSAH 61 Flying Cloud Drive including the successful acquisition of a key right-of-way parcel. The City is now well underway to have this project shovel ready when funding is made available and Mr. Oehme can’t wait until those funds are available so he can build a road. In addition to that the Highway 101 bridge or the land bridge opened this November. A significant milestone in not only the city of Chanhassen but also in our partnering community of Shakopee and in the counties of Scott and Carver County. Congratulations on that bridge opening Mr. Gerhardt. Thirdly he successfully analyzed, reviewed and modified the City’s stormwater classification and acreage charges to apply a fair and a more consistent means of providing incentives and credits to property owners for effective stormwater management. He secured Met Council approval on a comp plan amendment for effective land use resulting from the CSAH 61 corridor study. This gives us the authority to proceed with development of roughly 200 acres along our southern border. He provided valuable guidance to the 3 members of the council, Councilman Campion, Councilwoman Ryan and Mayor Denny Laufenburger. These 3 members of the council with brand new roles this year. Todd your patient coaching and encouraging for each of us is not only strongly evident in the time that you spent with us. It’s also vital to insuring that the council has every piece of information that we need to make the best decisions for the city. Next you set in motion the transition plan to insure that when our 18 Chanhassen City Council – December 14, 2015 longtime employee Karen Engelhardt retires January, 2016. Have you gotten her to change her mind yet? Todd Gerhardt: We’re both in denial. Mayor Laufenburger: Anyway when she retires in January, 2016 the effective administration at city hall will continue without a hiccup. Perhaps a tear will be shed but in the true spirit of Karen’s let get her done attitude city hall will continue to hum along. You secured funding from the Met Council Regional Solicitation for a new trail section from the intersection of 41 and 5 west to the Arboretum entrance on the south side of Highway 5. Mr. Oehme I believe that construction is planned for 2017 or 18? Paul Oehme: I believe it’s ’18. Mayor Laufenburger: 18. Well and many other accomplishments as well Mr. Gerhardt and when you add them all together they equal 7 which is exactly where CNN Money Magazine placed Chanhassen in this year’s rankings of the best places to live in America. Todd we all know that you do not seek these awards for the City but everything that you do, the way in which you guide and coach your team. Encouraging and leading the professional city staff is exactly why the City is recognized prominently as a city of character, quality of life for all the citizens to enjoy. Mr. Gerhardt has been with the City of Chanhassen for the last 28 years, am I right on that? Todd Gerhardt: (Yes). Mayor Laufenburger: And he’s been city manager since 2001. His knowledge, his experience and experience has produced wisdom serves the citizens, the professional staff and the City Council in a most effective manner. His judgment, integrity and his concern for others are the hallmark of his leadership. Congratulations on a great year Mr. Gerhardt. And based upon these discussions I move that the City Council approve this performance evaluation and a salary action of 2.85 percent increase for 2016 which is consistent with the average increase that was just approved in the budget for 2016. I would ask for a second to that motion. Councilman McDonald: Second. Mayor Laufenburger: Thank you Councilman McDonald. Is there any discussion at this time? Mayor Laufenburger moved, Councilman McDonald seconded to approve the City Manager’s performance evaluation and a salary increase of 2.85 percent for 2016. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: Mr. Gerhardt did you want to make any comments? 19 Chanhassen City Council – December 14, 2015 Todd Gerhardt: I would. Obviously I didn’t do this all by myself so as I stated in my review you know I have the pleasure of having a great set of department heads. Hard working employees throughout the organization but it comes from their passion everything that you just remarked about and you know if I didn’t have that support and the hard working employees we just wouldn’t accomplish the list that you just read and I want to thank them. And I also want to thank the Mayor and council for your leadership. Things work well when you’ve got great leaders and I think I can attest to that over the years and seeing the great leadership we have here. Good things happen so thank you. Thank my department heads and all city employees for all their hard working and dedication so thank you. Mayor Laufenburger: Well congratulations Mr. Gerhardt and congratulations to all the department heads and the entire city staff. All professional staff. The commissioners. The Planning Commission, Senior Commission, Environmental Commission, Park and Recreation Commission all contributed to making this just a great year. So you can rest on your laurels for about a day and then start thinking about 2016 alright Mr. Gerhardt. Todd Gerhardt: Sounds good. I’ll take that day. Mayor Laufenburger: Any other council presentations? CORRESPONDENCE DISCUSSION. None. Mayor Laufenburger: Before we adjourn I would just like to say that this concludes for three of us first year in this new role on the City Council and on behalf of the entire council I want to thank all the citizens of Chanhassen for participating in making this a significant year and we expect 2016 to be even better. And before we adjourn I just want to wish everyone a very happy holiday and a very prosperous new year and I would be remiss if I didn’t say on behalf of our public safety department, please drive safe and arrive alive wherever it is that you’re traveling. Now may I have a motion to adjourn? Councilwoman Tjornhom 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 8:00 p.m. Amy Dvorak: Mayor? Mayor Laufenburger: Yes ma’am. Amy Dvorak: May I approach? Mayor Laufenburger: You may talk with us. The council meeting is adjourned but you’re welcome. 20 Chanhassen City Council – December 14, 2015 Amy Dvorak: We apparently misunderstood how the meeting was proceeding. Mayor Laufenburger: Okay. Amy Dvorak: So we are here this evening, actually if I could just speak for one quick minute. Mayor Laufenburger: Sure. State your name please. Amy Dvorak: Certainly. My name is Amy Bell Dvorak and Chanhassen resident for 20 years. We built our home in Oaks of Minnewashta in 1996 and…from Chanhassen to support specifically in this park a pickleball court so we have a number of people here specifically tonight just to speak to that for pickleball court in our park and in Chanhassen. Jerry can you just say something real quick? Jerry Mass is our president of our pickleball club association. Southwest Metro Pickleball Club. We’re about 300 members strong and growing and so we just want to let the City and the Park and Rec groups of people know that we appreciate what we have and note that our Roundhouse Park is way in the northwest corner of Chanhassen and people kind of forget where they are but we are there and we need some support and funding for our park. Thank you so much. Mayor Laufenburger: Ms. Dvorak I, I should have made that clearer perhaps. Extended a deeper invitation during our visitor presentation. That would have been a very appropriate time for you to make your comments so my apologies. But let me address a question to Mr. Hoffman if I may. Mr. Hoffman you’re familiar with the desires of the group regarding Roundhouse Park, is that correct? Todd Hoffman: I am. Mayor Laufenburger: Okay. Is there anything in the CIP plans that would prevent us from doing something like what these residents want? Todd Hoffman: No. Currently in 2017 there’s $135,000 schedule for a sport court of some type. What that is we do not know but there was $225,000 for a double tennis court. In August at their discussion the Park and Recreation Commission modified that. They don’t know exactly if they want to build a combination court. Tennis, pickleball and basketball or pickleball only and I need to apologize. I spoke to Ms. Dvorak beforehand and I gave her some misinformation off of my notes that I scheduled, I said that was going to happen in 2016. It’s scheduled in 2017 $135,000 at Roundhouse for a sport court so really what needs to happen next spring is we need to get together again with the neighborhood and talk about what will that court be and when will it be built at what funding level. Mayor Laufenburger: So Mr. Hoffman the Park and Recreation Commission obviously considers needs throughout the city right? 21 Chanhassen City Council – December 14, 2015 Todd Hoffman: Correct. Mayor Laufenburger: And they have a, it may not be a finite budget but they have a ballpark budget that you present to the City Council and we kind of give you approval to move forward with that. So it seems to me your practice has always been to listen to the residents. Listen to the citizens whatever neighborhood they might be in to try to accommodate their desires, is that true? Todd Hoffman: That’s correct, yep. Mayor Laufenburger: Ms. Dvorak I again I apologize that we had miscommunication on when was the appropriate time to speak. Amy Dvorak: No problem. Mayor Laufenburger: But rest assured your, this City Council listens to recommendations and we do our very best to try to evaluate what’s the best thing we can do with the monies that are available to us either through park dedication fees or through whatever source of funds those might be. Amy Dvorak: Okay. Mayor Laufenburger: I am delighted that pickleball is so prominent amongst not just a certain few but apparently we are gathering people who play pickleball from other cities around, surrounding Chanhassen is that correct? Amy Dvorak: Right and all ages. There’s young people that are you know 10 to 12 years old that are playing. We were playing last evening and there was a young married couple in their early 20’s. It’s a sport that families can play and that’s why it’s important to have it where families can get to without getting in a car and going so kids can just go and play. It’s an inexpensive sport for a lot of people to get involved in. Pick up play anytime. Mayor Laufenburger: Does it require shoes? Amy Dvorak: No. Whatever, tennis shoes you happen to have in your closet will work just fine. Mayor Laufenburger: Is some manufacturer making a million dollars on pickleball racquets? Amy Dvorak: I don’t think they’re making a million dollars but interestingly enough there used to be about 5 years ago there was maybe 5 or 10 manufacturers making pickleball paddles. There are now 89 manufacturers making pickleball paddles so it has grown tremendously. They’re teaching it in schools. In your last Eastern Carver Community Education there is pickleball listed in there for grades of children in grades 6 and 8 so. 22 Chanhassen City Council – December 14, 2015 Mayor Laufenburger: Does it promote fitness of all ages? Amy Dvorak: Absolutely. Even for someone like me who has to work hard to get out there and do it but it’s great fun. Great way to get exercise. You laugh at yourself so that’s the best form of exercise there is. Mayor Laufenburger: So you don’t have to be good in order to play? Amy Dvorak: No. No requirements other than you can, you have to laugh at yourself. You have to be able to laugh when you whiff the ball that’s all. Mayor Laufenburger: Alright Ms. Dvorak I would ask that you continue to advocate for the passion that you have and that you represent with these other folks and make sure that Mr. Hoffman and the park commission understand the importance that you place on this and I’m sure the council will be reviewing this in the near future. Amy Dvorak: Okay, thank you very much. I appreciate your time this evening. Thank you very much for staying late. Appreciate that. Mayor Laufenburger: Thank you very much. You got to see public service in action here so thank you. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim 23