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CC 2016 02 08 CHANHASSEN CITY COUNCIL REGULAR MEETING FEBRUARY 8, 2016 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 Ryan, and Councilman Campion COUNCIL MEMBERS ABSENT: Councilwoman Tjornhom STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Paul Oehme, Kate Aanenson, Todd Hoffman, Greg Sticha, and Roger Knutson Mayor Laufenburger: Thank you and welcome to this evening’s council meeting. For those present in the chamber as well as those watching on cable channel 8 or 107.2 Mediacom at home. Just for the record all council members are present with the exception of Bethany Tjornhom who has an excused absence this evening. She’s not feeling well. First council members are there any modifications to the agenda this evening? If not we will proceed with the agenda as printed. Very well. PUBLIC ANNOUNCEMENTS: None. CONSENT AGENDA:Councilman McDonald moved, Councilwoman Ryan seconded to approve the following consent agenda items pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated January 25, 2016 2. Receive Planning Commission Minutes dated January 19, 2016 3. Award of Quote, Greenwood Shores and Carver Beach Park Shelters Resolution #2016-11: 4. Approve Consultant Contract with Kimley-Horn for Sewer and Water Feasibility Study Extension to TH 101 South of Pioneer Trail Resolution #2016-12: 5. Approve Consultant Contract for Traffic Study Along Market th Boulevard between TH 5 and West 78 Street 6. Approval of 2016 Key Financial Strategies and Legislative Priorities Chanhassen City Council - February 8, 2016 Resolution #2016-13: 7. Resolution of Support for the Appointment of Elise Ryan to the Board of Directors for Metro Cities 8. Award of Quote, Portable Restroom Contract for 2016-2017 to Imperial Porta Palace All voted in favor and the motion carried unanimously with a vote of 4 to 0. VISITOR PRESENTATIONS. None. 2016 MILL AND OVERLAY PROJECT 16-05: PUBLIC HEARING; ORDER PLANS AND SPECIFICATIONS. Mayor Laufenburger: Is there a staff report Mr. Oehme? Paul Oehme: Good evening Mayor, City Council members. I’d like to go over the feasibility study and briefly discuss the proposed improvements for this summer. So I’ll put, so for tonight’s meeting I’d like to just give a brief background on the project. Scope of the work that’s proposed for these areas. The cost and financing of the project. The schedule and I’d like to request that a public hearing be opened for the project. So with that the two project areas for the mill and overlay for 2016 are in Fox Chase area which is just north and say a little bit west of Lake Lucy and Trolls Glen which is on kind of the south western side of the city just off of Lake Minnewashta and both neighborhoods, they’re about a mile of streets that are proposed for improvements for this project. So I’d like to just talk about Trolls Glen project real quickly. The streets in this area are between 40 and 44 years old. They’ve been sealcoated 3 times already this, over their life and the streets have reached their expected life expectancy. The paving condition indexes are shown here. 11 and 15, 40, 55 which are below our standard for streets for sealcoating and minor maintenance so these streets are typically, can’t be improved with just th minor maintenance at this time. There’s also a section of street on 77 Street that’s not real, doesn’t show up very well here but extends over to Minnewashta Parkway. That’s in the city of Victoria city limits. We are talking with the City of Victoria and maybe partnering with them and including their section of street, which is basically the same condition of the city of Chanhassen’s street into our project. They would obviously pay for the cost for replacement and improvements of that section of street too plus engineering fees if the city were to take over the engineering and the construction administration of that section of road so that’s forthcoming. The proposed improvements for the project are, again it’s driven by the pavement condition so the pavement is alligatored and black cracked. Typically we, at this stage in their life it’s hard for just to overlay it so we’re, didn’t get good product so we’re looking at a full depth reclamation which is grinding up the pavement and using the asphalt, ground up asphalt for base course. Filling in some soft spots and repaving the entire streets with 4 inches of new asphalt. There is also some new curb that would be added. The streets would be, remain the same. These section of streets do have existing curb and gutter so we’re not proposing to widen the street. Just replace the asphalt. We are like I said replacing some of the curb that are out there. There’s a section of curb that’s non-existent right now. We’d like to extend that or include that in this 2 Chanhassen City Council - February 8, 2016 project as well just so it’s consistent throughout the other neighborhoods on Lone Cedar Lane. The utilities, staff has investigated the condition of the utilities in this area. Most of the utilities are in fairly good shape however there is a lot of sump pumps that discharge directly onto the road. We’d like to install some draintile to try to capture that water before it ends up in the gutter line in the street and causing freezing and icing conditions out here. There are some manholes that we’d like to fix at this time too. Some of the rings and some of the castings are deteriorated so those should be replaced. There’s a section of watermain we’d like to look at relocating. It’s in somebody, it’s in the back yard of a couple homes and we’d like to put that in the street at this time. The sanitary sewer we did televise and we did get the report back from the contractor that had televised this neighborhood. The sewer’s in fairly good condition. There is one sag that we might have to dig up but most of the sewer in this area is in pretty good condition. We did notice some I and I problems. Infiltration from the ground water and from the surface that we’d also like to take care of in this area as well. Moving onto Fox Chase. It’s about .6 miles of streets that we’re proposing to have rehabilitated. Streets in this area are about 30 years old. Again they were, this neighborhood has been sealcoated about 3 times. Their street life has reached it’s life expectancy and can no longer be maintained cost effectively with sealcoating and other minor maintenance improvements. Likewise with the Trolls Glen we’re looking at removing the or reclaiming the asphalt that’s existing. Using some of that material for some soft sub-grade issues I think we’re going to encounter and then repaving the streets with 4 inches of asphalt. Some new curb and gutter would also be proposed in this area. Curb that has settled and has broken up. Streets again would be the same width. We’re not looking at increasing the street width. Likewise with Trolls Glen there’s a, this area does experience high ground water table and a lot of the property owners discharge their sump pump into the street which causes icing and unsafe conditions during the winter months. We’d like to extend storm sewer into some of these areas along with draintile to capture that water before it ends up in the street causing icing conditions. The watermain being investigated is in good condition. We’re not anticipating any repairs necessary for that and also the sanitary sewer in this area is in good condition so we’re not planning to make any major improvements out here. There are some I and I issues that we’re going to be taking care of with the project but they’re pretty minor. Again this is just showing several other areas that, where sump pump discharges onto the road and causing icing problems at various locations throughout the project area. We have talked to some property owners in this neighborhood and there is a very big cul-de-sac out here that staff is looking at maybe decreasing the size and decreasing the impervious coverage. It’s about 9,000 square foot of asphalt that we could potentially remove. We’re going to be talking to the 4 neighborhoods, 4 property owners that are adjacent to this cul-de-sac. See if we can get some buy in from them so basically we’d remove the asphalt, which is shown in here in green. Replace, put some new curb back in here. Remove the concrete over existing concrete curb that’s at this location. Extend the driveways and then sod the area that is outside of the new cul- de-sac. So that’s, we’re still working with property owners on that and hopefully we should get some resolution on which way, which direction they would like to go in the next week or two. With that funding for the project has been budgeted in the 2016 capital improvement plan which is shown here. The street project is a little over $560,000 and then plus all the utility costs associated with each of the improvements are shown here for a total construction cost of 3 Chanhassen City Council - February 8, 2016 $637,000. So based upon the City’s practice of assessing 40 percent of the benefitting cost for the street project back to the benefitting property owners, the calculation is shown here for a proposed assessment at this time. So for Trolls Glen there’s 33 units in this area with an estimated construction cost of $250,000 so we’re looking at about a $3,000 assessment. Likewise for Fox Chase area there’s 50 units in that neighborhood and with an estimated construction cost of $310,000 for again an estimated assessment amount of $2,500. Again these are just estimated assessments at this time. If we go to bid we’ll recalculate those assessments based upon the lowest responsible bidder and make that the assessment amount. With all assessments property owners would have the opportunity to put those assessments on their taxes and the assessment rate would be 8 years at 2 percent plus prime so that number, the assessment or the interest rate is still unknown at this time until we get to April at the assessment time. If the th project would to move forward we’re anticipating approving plans and specs on March 14. Bid opening first week in April and then approving the bids and assessment hearing in May. Starting construction in June and substantial completion by the end of August. With that if there’s any questions I’d be more than happy to try to answer them. Otherwise I’d request a public hearing be opened at this time. Mayor Laufenburger: Alright thank you Mr. Oehme. Before we take this to a public hearing are there any questions from council for Mr. Oehme? Councilwoman Ryan. Councilwoman Ryan: Thank you. I’ll start with Trolls Glen. Paul Oehme: Okay. Councilwoman Ryan: So, well actually first with the City of Victoria, so if they agree to do that portion of the road do we do the work and they cover the cost associated with it? Paul Oehme: Absolutely. So we would actually prepare the plans and specifications for them. We would bid it out for them and then they would pay us for that work but they would also pay us for the engineering and the construction observation costs associated with that so there wouldn’t be any cost for the City of Chanhassen for that work. Councilwoman Ryan: Okay. And then and just terms of the kind of the flowage or the runoff th with that slope coming down 77, I know you and I have spoken with some of, about some of the residents on the, what is it the east side of Lone Cedar. Paul Oehme: Yep. Councilwoman Ryan: So when, could you just for general knowledge explain the benefit and the just the overall construction of that catch basin. th Paul Oehme: Yep, so right on 77 Street there’s a low point approximately about 100 feet just west of Lone Cedar so there’s going to be, the existing catch basins there we’re going to increase 4 Chanhassen City Council - February 8, 2016 the inlet capacity of those catch basins to try to capture that a little bit more of that water. The curb and gutter in that area is really, has moved around a lot and it’s now it’s holding water so we’re going to be removing all those curb and gutter that’s out there as well. Re-erecting in those catch basins and actually lowering the catch basins that were there right now so the water doesn’t stand on the pavement like it does today. Also on Lone Cedar Lane I think there’s a catch basin but with the cul-de-sac there we’re making some improvements to that catch basin as well so there’s no storm sewer outlet or pipes, culverts leaving the project that we’re going to replacing all the storm sewer that’s being proposed for this contract is within the existing right- of-way of the streets. Councilwoman Ryan: And so will you be building up the curb on the east side of Lone Cedar Lane? Paul Oehme: On Lone Cedar, I think there’s some spot repairs that we have to make here but again it’s mainly regrading that intersection so it flows better. Councilwoman Ryan: So there’s not that big pool at the bottom. Paul Oehme: Exactly. Councilwoman Ryan: Okay. Paul Oehme: Yep, exactly. Councilwoman Ryan: And then for the Fox Chase area, I was surprised that you could, your residents sump pumps can discharge onto the streets. How does? Paul Oehme: Well yeah our ordinance says that the sump pump discharge has to be about 10 feet back from the back of the curb and gutter. That’s not always feasible at times so, and when it is a lot of the water still runs onto our curb because of the lawn gets saturated and it naturally just goes onto our curb so property owners are, you know some of these properties have 2 sump pumps that are running 365 so they’re, it’s really tough to get rid of the water so we just want to make improvements out here to capture the water so it doesn’t stay on the street and it’s brought basically into the storm sewer system quicker than it is today. Councilwoman Ryan: Than it is today okay. And then finally just with the street reconfiguration, two questions is what are the benefits to the residents and the city for doing this reconfiguration and then will those property owners be assessed differently or is that included in the overall project? Paul Oehme: It’s included in our cost estimate right now so it’s, there’s several benefits. One is the drainage in this area would be improved I think. Basically we’d lower the street profile a little bit. The sump pump discharge would have more opportunity to soak into the lawn where 5 Chanhassen City Council - February 8, 2016 you can actually see where the water sits right now in our street so that would be lawn in the future so that would have better infiltration area. Infiltration area for the sump pump water to go. Also it’s less impervious so there’s going to be actually probably less water getting into our lakes and streams and when we’re replacing the hard surface coverage with sod so it gives the property owners you know a larger lawn too. More area to enjoy their property so. Councilwoman Ryan: Thank you. That’s it Mayor, thank you. Mayor Laufenburger: Alright, any other questions for Mr. Oehme at this time? Mr. Oehme I have one related to Councilwoman Ryan’s question. If you change this, the picture that you have right here and you’re changing that proposed right-of-way line, so moving it closer to the main street, are you actually changing property lines or would property lines remain the same? Paul Oehme: Well we’ve talked about that too and it’s up to the property owners. They would have to come and petition and we would work with them at no cost permit to relocate the property lines and vacate some of our right-of-way so their lawns would be, their lot would be a little bit bigger. We’d still like to dedicate or have a dedicated drainage utility easement out there because I know there’s some private utilities that are there plus their service, watermain services aren’t going to change so we still need access to those so, but yes the actual property lines can change. The right-of-way lines could change but we’d still like a drainage utility easement. Mayor Laufenburger: But obviously for example you’re showing some green space on there. If the property owners agree then we would actually remove the asphalt and the base and replace it with ground and sod it as well. Paul Oehme: Absolutely. Mayor Laufenburger: So we would essentially provide the property owners with what they wanted in the form of lawn. Paul Oehme: Exactly. Mayor Laufenburger: Okay, good. We may have some other questions after we open the public hearing. At this time I would like to open a public hearing on the 2016 mill and overlay project. If anybody is present in the chamber would like to speak relative to this project, either for Trolls Glen or Fox Chase I would invite you to do so. Simply come up to the podium and state your name and address so we know who’s speaking to us and we look forward to your comments. Welcome, good evening. Tom Heusman: Thank you. My name’s Tom Heusman. I’m a resident at 3861 Lone Cedar Lane. 6 Chanhassen City Council - February 8, 2016 Mayor Laufenburger: So you’re in the Trolls Glen. Tom Heusman: I’m in the Trolls Glen neighborhood, yes. My biggest concern was when we closed Lone Cedar my driveway, you closed Lone Cedar to Highway 5. Mayor Laufenburger: Removed the access onto Highway 5 right? Tom Heusman: Correct, yeah. Mayor Laufenburger: Okay. Tom Heusman: And the way my driveway was configured, I’m the last driveway before you get to Highway 5 so my driveway was curved towards Highway 5. Mayor Laufenburger: Just a second. Are you which, can you see what’s up there right now? How close are you to the number 40? Tom Heusman: I’m right at, basically right at the number 40. I’m the first driveway to the left if you were to come off Highway 5 onto Lone Cedar. Mayor Laufenburger: Using the old access. Tom Heusman: Using the old access, correct. Mayor Laufenburger: So you’re on the south side of Lone Cedar Lane? Tom Heusman: Lone Cedar, I would have been on the west. Mayor Laufenburger: Excuse me the west. Okay it’s the southwest side, okay. Tom Heusman: Right. Yeah. So what I’m, it’s really made it cumbersome for myself and guests to pull into my driveway because it’s an awkward turn now and I would look to try to see if we can work with this new proposal for a little bit of a redirection on, coming into my driveway. Paul Oehme: Sure and that’s something we can talk about. Maybe just a better radius. Tom Heusman: Correct. My radius right now curves towards Highway 5. Paul Oehme: Right, yep. Tom Heusman: For the old approach. 7 Chanhassen City Council - February 8, 2016 Paul Oehme: Because I think you’re up on the hill. Tom Heusman: I’m up on the hill. Paul Oehme: Right. Yeah we can definitely widen or have a different radius there to your driveway. Tom Heusman: That would be great and then the other comment was you know you had mentioned septic discharging. Paul Oehme: Sump pump? Tom Heusman: Sump pumps yes. Mayor Laufenburger: We hope it’s not septic. th Tom Heusman: Let’s hope not. Sump pumps on 77. This was really the first year that one of th the residents ran their tube and we had a pretty serious ice condition on 77. For the most part we haven’t had that issue and I’ve been in the neighborhood now 18 years so. Paul Oehme: Okay, yep. I think we’re planning or budgeted for about, I think 400 linear feet of draintile. Mayor Laufenburger: So if you don’t mind standing there just for a moment Tom. Tom Heusman: Yeah. Mayor Laufenburger: Paul can you explain when you put draintile in to capture the sump pump water, the draintile is actually placed just toward the home from the road, is that correct? Paul Oehme: Correct. Mayor Laufenburger: The assumption is that the water would go over the grass or whatever they have there, over the ground for a period of time and then it will seep down. Go to the draintile which will then collect the water and move it to the storm sewer quickly. Paul Oehme: Yes. So that’s one benefit. So the other benefit too is if their sump pump is underground already they can actually make a soft connect to our draintile actually so the water doesn’t have to discharge on top of their lawn and still freeze in the wintertime so there’s you know, there’s benefits to the property owners when we put that draintile in back there’s a lot of opportunities to connect into that and improve the drainage within your neighborhood. 8 Chanhassen City Council - February 8, 2016 Tom Heusman: The other point that I’d like to point out is along my property line, I’ve got 2 ½ acres off of Lone Cedar and I’ve got a fairly steep hill that goes down to the street so after we get a fair amount of rain you’ll see runoff from my hill probably 5 to 7 days after that rain and it’s running right down the street all the way down to the end where there’s a catch basin so. Mayor Laufenburger: But that’s not sump pump. That’s just water that’s in the. Tom Heusman: Correct. Mayor Laufenburger: In the topsoil and surface ground water. Tom Heusman: Right. Mayor Laufenburger: Okay. Tom Heusman: Yeah, that’s all I have. Thank you. Mayor Laufenburger: Thank you Mr. Heusman. Is there anybody else who would like to speak at this public hearing, either Trolls Glen or Fox Chase? That’s my 7 second rule so at this time I will close the public hearing and bring it back to council. Any other questions or comments council members? Paul just to related to Councilwoman Ryan’s question regarding Victoria, they are, are they following the same procedure that we are following regarding discussing the project so we assume that their council are conducting a public hearing, etcetera and if they decide not to do this we’re still going to do it. Paul Oehme: Yes. It’s our project would not be dependent upon the City of Victoria moving forward with their side. With their project. Mayor Laufenburger: Do you have any reason to believe that they will not go forward with this or? Paul Oehme: I don’t know. Mayor Laufenburger: Okay. Paul Oehme: I know they’re talking about it. I know they’re interested in it. It just makes sense to do it now so. Mayor Laufenburger: And they’re aware of our plans, our time table plans is that correct? Paul Oehme: Correct. 9 Chanhassen City Council - February 8, 2016 Mayor Laufenburger: Okay. Okay and this project after if, if we go forward with plans and specifications this project will come back to the council for review of the bids and awarding the bids and then there will also be an assessment, a final assessment hearing is that correct? Paul Oehme: That’s correct. Mayor Laufenburger: Okay, alright. At this time I’m ready to have any comment or a motion. Councilwoman Ryan: I’ll make a motion Mr. Mayor. Mayor Laufenburger: Councilwoman Ryan. Councilwoman Ryan: The City Council orders the preparation of plans and specifications for the 2016 Street Rehabilitation of Fox Chase and Trolls Glen areas, Project 16-05. Mayor Laufenburger: Thank you we have a valid motion. Is there a second? Councilman Campion: Second. Mayor Laufenburger: Thank you Mr. Campion. We have a motion and a second. Any further discussion? Resolution #2016-14: Councilwoman Ryan moved, Councilman Campion seconded that the Chanhassen City Council orders the preparation of plans and specifications for the 2016 Street Rehabilitation of Fox Chase and Trolls Glen areas, Project 16-05. All voted in favor and the motion carried unanimously with a vote of 4 to 0. AWARD OF BID, 2016A GENERAL OBLIGATION BONDS, EHLERS & ASSOCIATES. Greg Sticha: Good evening Mayor, council members. Earlier today the City undertook an award of bid process for issuing general obligation bonds, Series 2016A. I’m going to get into the specifics and have Mr. Ruff from Ehlers and Associates, the City’s financial advisors go over the results of that bid as well as him give a very brief description of the type of bonds that were issued today. This issuance was to cover two items. One is to issue debt for approximately $1.5- $1.6 million for a painting of a water reservoir. Lake Lucy water reservoir stand pipe and the other portion of the issue was to advance refund our public works bonds which were Series 2008A. So today’s issue accomplished both of those goals. The portion relating to the public works bonds for an advanced refunding and Mr. Ruff can convey very brief, let’s hope simple explanation of how an advanced refunding is slightly different than a regular refunding but in preparation for the bond sale today the City also went, underwent a credit examination essentially. A bond rating call with the City’s rating agency Standard and Poor’s last week. The results of that rating agency call that Standard and Poor’s reaffirmed the City’s AAA bond rating 10 Chanhassen City Council - February 8, 2016 for this issuance and all previous issuances as well. It’s a rating that applies to all of the City’s debt. Mayor Laufenburger: Congratulations Mr. Sticha. Greg Sticha: Yes, congratulations to all of us. Staff and council alike. What a rating agency rating of AAA essentially means to someone who might be listening at home or in the audience here this evening is it’s similar to a credit score if you were to go out and get a home loan. The better the credit score the cheaper you can borrow the money at a lower interest rate so having a AAA rating is certainly, from a financial standpoint very advantageous in terms of cost savings that you’ll save over the life of repaying the debt so that was fantastic news to hear as well. So with that I’m just going to turn it over to Mark Ruff from Ehlers and Associates and have him explain how the sale went today. Who was the low bidder and just kind of a brief description of how an advanced refunding is slightly different than a regular refunding. Mayor Laufenburger: Very good. Good evening Mr. Ruff. Mark Ruff: Mr. Mayor, members of the council. Thank you for the opportunity to speak. I will say though that Greg didn’t tell me I had to make it simple so I think I may have to refigure my speech but I know you are a sophisticated audience. I would say just highlighting Greg’s comments about the bond rating and the credit score, I mean you are as close to a perfect credit score as a city can get. The Standard and Poor’s has 7 categories that they break down a rating into and you have the highest possible score in 4 out of those 7. Of the remaining 3, one score is not as, the top score mainly because you’re a city in the state of Minnesota and because you can declare bankruptcy without any oversight of the state. The rating agencies don’t like bankruptcy and so they give every city in the state the second highest score in a sub-category. The two other categories where you don’t have the highest possible score is in the amount of debt but the only way you can get the highest possible score is to not really have debt so it’s a mixed bag in terms of a credit rating agency. You know a credit rating agency’s ideal city has 10 people and you know 14 commercial industrial facilities so we have to remember that. Mayor Laufenburger: We passed that back in what 1920. Mark Ruff: Right, we have to remember that a credit score is really about your ability to pay back a debt and so it’s not a quality of life measurement. It is a financial stability measurement. And the last category is the measurement of your budgetary surplus and you had a surplus in the budget. It just wasn’t high enough to get the highest possible score okay, so I’m just trying to give you a sense and that you really, it’d be very difficult to get the highest possible score in every single category and frankly I work with a lot of communities. I work with a majority of AAA rated communities in the state of Minnesota and they don’t have as good of sub-category scores as the City of Chanhassen does. 11 Chanhassen City Council - February 8, 2016 Mayor Laufenburger: Mark this is not a new rating for us. This if a confirmation but we received AAA rating from Standard and Poor’s, when was the first time do you recall Greg? Greg Sticha: I believe 2008. Mayor Laufenburger: Okay so we’ve maintained this rating of AAA has been confirmed by Standard and Poor’s at least for 4 times during this time is that correct? Mark Ruff: That’s correct. Mayor Laufenburger: Okay so, that’s good background. Mark Ruff: But it’s also once you get a AAA does not guarantee that it stays the same way. Mayor Laufenburger: I understand. Mark Ruff: There are certain cities across, you know there was a metro county that was downgraded from AAA to AA+ a few years ago by Standard and Poor’s and there is a western suburban city that was downgraded from AAA by Moody’s just a few years ago as well so it’s something that is not easy to maintain as well. So I just want to say congratulations to you and the council because that certainly is, from the standpoint of citizens while it may not be just purely a quality of life issue it is an indication of your fiscal management and thought very highly of. Mayor Laufenburger: Well Mark I know that on behalf of the entire city of Chanhassen we thank you and Ehlers and Associates for your role in helping us manage that and certainly thanks to Greg and the people in the finance department that provide the information that’s available. Also thanks to Todd for running a good ship here so yes we’re all part of it. Now let’s get down to business okay. Mark Ruff: Sure. The packet I handed out this evening is the results of the sale. The second page is a summary of the sale. We did receive 7 bids which is a very good number of bids. The bids were really national. There’s a few names on there I don’t see very often, specifically Fifth Third out of Cincinnati was the fourth highest bidder and then Wells Fargo out of their former Wachovia headquarters out in Charlotte, North Carolina who believe it or not we don’t see Wells Fargo bids all that often on bonds so those are two notable bidders. The winning bidder was Stifel, Nicolas out of Birmingham, Alabama. They had a low bid of 1.66 percent. Few, about a month ago you did actually pass a resolution authorizing us to go forward with this bond sale. That was a maximum of $7,150,000. Staff was able to find some cash to write down the amount of the bonds and then we had a premium bid on the bonds and so the net amount of the bond sale that we’re bringing forward to you this evening is $6,370,000. These bids are about 40 basis points lower than anticipated or almost a half a percent in plain language. Cost of issuance and underwriter fees were less than anticipated and the real good, the very good news is net of that 12 Chanhassen City Council - February 8, 2016 cash that you’re putting into this financing you are saving almost a million dollars in debt service. $928,000 in future value debt service net of all costs and net of cash that you have. In today’s dollars, which is the way the State of Minnesota wants us to measure it it’s over $750,000 so three quarters of a million dollars of savings just off of the refunding, which is a 12 percent savings figure meaning that you take the savings and divide it by the principal amount it’s 12 percent. The State of Minnesota’s minimum requirement for an advance refunding is 3 percent so you’re 4 times the minimum. Mayor Laufenburger: So what you’re saying by advance, by paying off the bonds from the public works building, is that correct? Mark Ruff: Correct. Mayor Laufenburger: So by paying those off in advance what’s that number? The net present value that we’re saying. Mark Ruff: $757,000, right. Mayor Laufenburger: Okay. Mark Ruff: And then advance refunding is simply a way of locking in savings for bonds that are not callable for 2 years so we have these public works bonds that were issued in 2008. Typically for a municipal bond it’s unlike your home mortgage. You can refinance as many times as you want to. With municipal bonds typically you only refinance once or at the most twice over the life of the issue. The advance simply means you’re doing it ahead of the call date where you give usually 8 to 10 years for bond holders where they know they can’t have their bonds prepaid so these bonds are pre-payable in February of 2018 so we’re going to take the money that we receive from the bond sale. We’re going to put it in an escrow. It will be held by US Bank and then in 2018 we’ll prepay those old bonds and your savings will start then for your budget year 2018 so I think the advance part of it confuses people sometimes but it’s really just this idea that you’re refunding ahead of the call date to lock in savings. Mayor Laufenburger: And we’re taking advantage of what we believe are attractive rates at this time and that certainly was reflected in the bids. Mark Ruff: That’s correct. I think if you as a council had believed that interest rates were going to stay as low as they are today then it would have been a little more financially advantageous to wait for 2 years so you wouldn’t have that money in the escrow and not earning as much interest. But I think largely our council, elected officials and staff is if this meets some minimum savings threshold and you have a higher than state average minimum in your debt policy then you should move forward and certainly at refunding a 12 percent savings is much higher than your minimum. It’s I think 3 times your debt policy and I said 4 times your state law requirement so none of us can predict the future. None of us know what interest rates are going to be but if these 13 Chanhassen City Council - February 8, 2016 meet your goals then we encourage you to move forward and I think your decision was very wise considering interest rates have dropped pretty substantially just even in the last month so the majority of the bond issue was the refunding portion as Greg mentioned. About a million five of the bond issue was for the water reservoir improvements. Attached to the summary then is in addition to the bids is a listing of the sources and uses of funds with the cash and the re-offering premium we mentioned and then the debt service schedules both together and then the individual purposes are broken out and then there is a page that lists the savings with and without the cash so the good news is is that’s starting in, for budget year 2018 you’ll have over $115,000 a year of budget flexibility because of this. Combination of the lower interest costs and the cash that you’re putting in to write down the debt service as well. Did I pass the test on simplicity Greg? Greg Sticha: Well done. Mark Ruff: Thank you. With that Mr. Mayor there is a resolution that you had in your packets. The modification would be this two fold. One is awarding the bid to Stifel, Nicolas and secondly would be the modification of the par amount. The principal amount to $6,370,000 from the original higher amount that was published after the cash. I think $6,655,000 was the money after the cash. Mayor Laufenburger: Alright thank you Mr. Ruff. Before you go, council have any questions of Mr. Ruff? Thank you very much Mark. So Mr. Sticha we just need to make sure we reflect the name of the low bidder. Stifel. Is it Stifel? Mark Ruff: Stifel. Mayor Laufenburger: Stifel, Nicolas and Company in Birmingham and then the amount, is that correct? Greg Sticha: Yes, $6.3. Mayor Laufenburger: $6,370,000. Anyone like to make a motion? Councilman McDonald: I’ll make a motion Mr. Mayor. Mayor Laufenburger: Councilman McDonald. Councilman McDonald: I’d like to make a motion that the City Council awards the bid for the general obligation bonds Series 2016A to Stifel, Nicolas and Company and in the amount of, is it the result of the sale? Mayor Laufenburger: $6,370,000. Councilman McDonald: Yeah, $6,370,000. 14 Chanhassen City Council - February 8, 2016 Mayor Laufenburger: Alright we have a valid motion. Is there a second? Councilwoman Ryan: Second. Mayor Laufenburger: Thank you Councilwoman Ryan. Any further discussion? Resolution #2016-15: Councilman McDonald moved, Councilwoman Ryan seconded that the City Council award the bid for the General Obligation Bonds Series 2016A to Stifel, Nicolas Company in the amount of $6,370,000. All voted in favor and the motion carried unanimously with a vote of 4 to 0. Mayor Laufenburger: Thank you Mr. Ruff, Mr. Sticha. MINNETONKA SCHOOL DISTRICT 276, 6421 HAZELTINE BOULEVARD: REQUEST FOR AN INTERIM USE PERMIT TO ALLOW SITE GRADING TO WIDEN THE MAIN ENTRANCE/EXIT DRIVEWAY AT MINNETONKA MIDDLE SCHOOL WEST. Mayor Laufenburger: Is there a staff report? Paul Oehme: Yes Mayor, City Council members. Mayor Laufenburger: Mr. Oehme, nice to see you again. Paul Oehme: Nice to see you too. So this request is from again the Minnetonka School District. The parcel is located at 6421 Hazeltine Boulevard. Just off of Highway 41, south of Highway 7. So the request is for an interim use permit. Typically these projects are pretty straight forward in nature. The reason why this triggers an interim use permit is because there is excess grading material on this project. Anything over 1,000 yards of material hauled off, or trucked in and trucked off the site requires an interim use permit. This project is, I think it’s 2,100 cubic yards of material that will be moved around. The plan that the school district would like to proceed with is the expansion of basically their entrance drive. Highway 41 is over here on the left hand side. The school is located over here so this is the entrance drive coming into the facility. There is one lane of traffic in and out. At this location there is a left turn and right turn lane as you get closer to 41. The school district would like to expand this location here to increase the capacity of the traffic exiting the facility during peak hour times. Also there’s some minor modifications to the main parking lot that the school district would like to take on and the some sidewalk or some trails next to the tennis courts that they would like to make at this time too. Some minor drainage and utility, drainage and stormwater improvements as well and then I think the parking lot would be overlaid after the project is done. Here’s just kind of the traffic flow of what the future access to the, in and out of the facility would look like so basically a designated right turn and left turn lane all the way through the entrance land just sort of for better queuing and better 15 Chanhassen City Council - February 8, 2016 stacking. More capacity of people waiting to get onto Highway 41 from the parking lot. With that I’d stand for any questions. Kate Aanenson: If I may add Mayor, members of the City Council. Mayor Laufenburger: Ms. Aanenson. th Kate Aanenson: This item did appear before the Planning Commission on January 19. There was a public hearing held. I just wanted to point out that there was nobody in attendance at that meeting. There was a few calls from some of the neighbors but staff had addressed those comments I think to the satisfaction of the neighboring properties so there wasn’t anybody at that meeting but they did, the Planning Commission did recommend approval of the interim use permit. Mayor Laufenburger: Alright, thank you Ms. Aanenson. Any questions of staff regarding this interim use permit? Councilwoman Ryan: I just have a couple questions Mayor. Mayor Laufenburger: Councilwoman Ryan. Councilwoman Ryan: Do you mind going back to the diagram? Paul Oehme: Sure. Councilwoman Ryan: This doesn’t totally have to do with the actual permit but it’s more of the design of the interior part of the parking lot. Are they still going to have, are they changing the parking lot so there is no more cut through in the middle of the parking lot? Right now at the school it’s basically split in half and I don’t know if that’s like supposed to be the walkway or what but it’s. Paul Oehme: North/south line? Councilwoman Ryan: Yes. Paul Oehme: I think that was one of the improvements that, I think it was this location here. Maybe that’s the, the school district representative is here. Maybe he can answer that question too but I think that was part of the improvement that was planned for the parking lot. Mayor Laufenburger: Is somebody from the school district here? Cliff Buhman: I’m here to represent the school. 16 Chanhassen City Council - February 8, 2016 Mayor Laufenburger: State your name. Cliff Buhman: My name is Cliff Buhman and I’m with Inspect. I’m the engineer of record on the project working with the City. And the plan for the school is to paint a crosswalk in the area where there is an existing crosswalk. So basically if you look at that little island just below the far right or east tennis courts. Mayor Laufenburger: Yep. Cliff Buhman: That little island that projects, that will be striped all the way across and there currently is an accessible walkway through there with a pedestrian ramp. Kate Aanenson: I was just going to add, that came up at the Planning Commission too. We have access from like 3 different directions that kids can walk to the school and so that was a concern. Mayor Laufenburger: So the concern is to protect the pedestrians that are arriving. Kate Aanenson: Correct. Right. Mayor Laufenburger: So that they have a safe walk route. Kate Aanenson: Correct, so they could come from the north. They come from the west and the south also. Mayor Laufenburger: Okay. Councilwoman Ryan: So the sidewalk does cut through the middle of the parking lot or does not? Cliff Buhman: No there is not a sidewalk there now. There’s an island that’s going to be removed and has part of a sidewalk on it but the drives obviously are contiguous but that will link that north/south and the pathways too to an existing pedestrian ramp that there is a sidewalk then on the south side. Councilwoman Ryan: On the south side, okay. Cliff Buhman: Yes. Mayor Laufenburger: Any other questions Councilwoman Ryan? Councilwoman Ryan: And then are there going to be sidewalks on the east and west side of the tennis courts or will it just remain that there’s the sidewalk on the, inbetween the courts. 17 Chanhassen City Council - February 8, 2016 Cliff Buhman: Yeah there are 2 paths. Part paths. Partial paths excuse me. Kate Aanenson: …I think there’s one on the. Cliff Buhman: It might show better. Kate Aanenson: You can kind of see on this the trails that come down. Councilwoman Ryan: Yep. Kate Aanenson: Yeah and then there’s an opening on the south side too and actually you can come over somewhere through on this side too. Cliff Buhman: Yeah. Mayor Laufenburger: So the north comes off of Melody Lane right? Kate Aanenson: Correct. Mayor Laufenburger: And then the south comes off, is it Bretton Court or in that area. And then the, on the east. Kate Aanenson: Yeah so you can come down through here. All the way through the tennis courts and that’s kind of what we’re talking about getting there and then from the south there’s that street on the end with the cul-de-sac and I believe there’s another opening somewhere on this side. Yeah. Mayor Laufenburger: Where the water tower used to be. Kate Aanenson: Correct. Todd Gerhardt: Kate can you point to the raised sidewalk in the parking lot I think is what Councilwoman Ryan’s talking about. Kate Aanenson: Oh this one right here. That’s currently there right now. Todd Gerhardt: Yeah, so that will be removed and will be striped as a sidewalk. Cliff Buhman: Crosswalk. Todd Gerhardt: Crosswalk. Cliff Buhman: Yes. 18 Chanhassen City Council - February 8, 2016 Todd Gerhardt: So with no curb. Cliff Buhman: No. Todd Gerhardt: Just pavement flat as the parking lot. Cliff Buhman: Yep, to grade. Councilwoman Ryan: Okay. Councilman Campion: And there will be a sidewalk around the perimeter then? Cliff Buhman: Yeah we’re retaining that. Councilman Campion: Okay. Mayor Laufenburger: Thank you Mr. Buhman. Cliff Buhman: You’re welcome. Thank you. Councilwoman Ryan: But, sorry Mayor. Maybe one more point. But will there be, you know right below the tennis court. Mayor Laufenburger: Where that white vehicle is? Councilwoman Ryan: (Yes). Just to the north of that will that, is that a sidewalk that then loops all the way around? Cliff Buhman: Yes that sidewalk continues all the way north and there’s another section that’s partial path down there but we’re going to continue that path onto the west of you on the lower tennis courts. Councilwoman Ryan: Okay. Cliff Buhman: And continue that one up and it will hook up with the one to the north. Councilwoman Ryan: Okay. Cliff Buhman: So we’ll actually have 2 new paths. Kate Aanenson: Yeah I think that shows up on the. 19 Chanhassen City Council - February 8, 2016 Cliff Buhman: Next one. Kate Aanenson: Yeah. Paul Oehme: It’s in the plans. Kate Aanenson: Yeah. So that’s detailed, it’s on the plans yeah. Mayor Laufenburger: Any other questions for staff? Thank you Mr. Buhman. Cliff Buhman: Thank you. Mayor Laufenburger: Mr. Oehme, when we grant, there was something about discussion about a traffic pattern, is that correct? Who wants to speak? Or a traffic study. MnDOT is completing a study which will provide us with more information about traffic in this area assisting in decision making regarding potential improvements. Is that still underway? Paul Oehme: It is. So MnDOT has done some preliminary investigation on Highway 41 with traffic and speeds and school district representatives and the City are talking to MnDOT about taking it to the next level, or looking at pedestrian movements and other ancillary information. Basically it’s a pedestrian movement study that MnDOT would like us to, school district to complete and the impetus and what we’re trying to get towards is a speed school zone along Highway 41 so. Mayor Laufenburger: During school movement hours. Paul Oehme: Exactly to reduce the speeds during those peak hours where traffic and pedestrians are coming in and out of the school campus so that’s what we’re shooting for. That’s you know there’s some pedestrian counts that have to be taken so I think we’re going to have to wait til spring to actually get some reasonable counts on that but I think we’re going to try to draft up a report here pretty quick and try to get you know MnDOT to buy into that so improvements can take place this year yet. Mayor Laufenburger: Mr. Oehme, this isn’t related to the movement of this grading stuff but the City Council participated with I think it was safe routes to schools and we did some crosswalk and flashing and median. Can you just speak to that? Or more importantly will the MnDOT study include potential changes to that or are those, is that construction secure? Paul Oehme: That construction’s secure and actually this last fall when MnDOT did the traffic study they actually did enhance the crosswalk that was out there that the City participated in and built so there’s some stop bars. Mayor Laufenburger: Yep. 20 Chanhassen City Council - February 8, 2016 Paul Oehme: Painted stop bars on the pavement and there’s some additional signage out there as well so now to take it to the next level is to the look at the school speed zone. That’s the next thing that we’re shooting for. Mayor Laufenburger: Okay. Alright. Councilwoman Ryan: Mr. Mayor? Mayor Laufenburger: Go ahead. Councilwoman Ryan: May I just make a comment. Mayor Laufenburger: Go ahead Councilwoman Ryan. Councilwoman Ryan: And again this is not related to the interim use permit but I would just like to make a public plea so to speak that MnDOT does do something. As a Minnetonka. Mayor Laufenburger: Parent. Councilwoman Ryan: Parent and a lot of friends. Mr. Bourgeois you’ve been very responsive so I appreciate your action on behalf of the school district but this is a serious concern to a lot of Minnetonka/Chanhassen. Minnetonka School District but Chanhassen residents of the safety of pulling in and out of Minnetonka Middle School West so I encourage the City and school district to continue to push MnDOT to do something here because I know that the residents would really appreciate it and I know we all feel the same way about keeping our students safe and it’s a, it has to be a priority. Paul Oehme: Absolutely. Councilwoman Ryan: So thank you. Mayor Laufenburger: Comment well noted. Thank you Councilwoman Ryan. Any further questions or comments on the interim use permit? I’ll entertain a motion. Councilwoman Ryan: I’ll make a motion. Mayor Laufenburger: Councilwoman Ryan. Councilwoman Ryan: I propose the City Council approve the Interim Use Permit to permit grading in excess of 1,000 cubic yards to allow parking lot alteration, widen the main entrance/exit driveway and stormwater improvements subject to the conditions of the staff report and adopts the Findings of Fact. 21 Chanhassen City Council - February 8, 2016 Mayor Laufenburger: Thank you, we have a valid motion. Is there a second? Councilman Campion: Second. Mayor Laufenburger: Mr. Campion thank you very much. Any further discussion? Resolution #2016-15: Councilwoman Ryan moved, Councilman Campion seconded that the City Council approve the Interim Use Permit to permit grading in excess of 1,000 cubic yards to allow parking lot alteration, widen the main entrance/exit driveway and stormwater improvements subject to the following conditions and adopts the Findings of Fact. 1.The applicant’s engineer shall adjust the slope of the expanded drive lane to convey runoff to the northeast gutter line. 2.The plans must be revised to label the catch basins to match the CB/MH Schedule on Page C5. 3.Slopes shall be labeled on all proposed pipes. 4.The note for the draintile shall be revised so that no sock is used on the draintile. 5.The applicant shall submit an erosion control plan (including additional detail plates) for this project per City Code §19-154. 6.A $5,000 escrow to guarantee restoration and erosion control measures will be required with the permit. 7.Staff will require that the applicant provide a proposed haul route for review and approval. 8.An as-built grading plan is required at the completion of site grading to ensure compliance with the approved grading plan. 9.MnDOT comments shall be incorporated into the plans. 10.The parking spaces and aisles must be adjusted to meet the Chanhassen City Code requirements. 11.The parking lot design shall be revised to provide a travel path for north-south pedestrians. 12.The applicant shall submit documentation to the city for how the queues will lay out with use of the gates. 13.The plan must follow all applicable State and Federal guidelines. 22 Chanhassen City Council - February 8, 2016 14.The applicant shall install a total of two islands in the reconfigured parking area and a minimum of four deciduous trees. 15.The interior width of the landscape islands or peninsulas shall be 10 feet. The applicant shall install perimeter landscaping to correspond to existing parking lot site conditions. All voted in favor and the motion carried unanimously with a vote of 4 to 0. Mayor Laufenburger: Thank you Mr. Oehme, Ms. Aanenson and thank you Mr. Bourgeois and Mr. Buhman. Say your last name again? Cliff Buhman: Buhman. Mayor Laufenburger: Buhman. Thought I had it right. Thank you. That concludes our agenda items for this evening. ADMINISTRATIVE PRESENTATIONS. Mayor Laufenburger: Mr. Gerhardt, any administrative presentations? Todd Gerhardt: Just a quick comment for Paul. Sorry about that Packer loss. We’re feeling for you every day. Little bit of a Packer fan above Paul on that one so. Mayor Laufenburger: Is there? Todd Gerhardt: Yeah. What I’d like to do is thank Todd Hoffman and his staff for a wonderful February Festival. What a perfect event. Thank you Mayor for the wonderful weather that we had and sunshine and it was just perfect but I think we really have to call out the Rotary group. Had a group of about a dozen gentlemen out there drilling 1,000 holes prior to the event and it’s not easy but they did have donuts to work towards so Todd splurged and donated donuts to the guys so. Also the Boy Scouts sold bait, s’more kits. Culver’s was out there. There’s a lot of work that goes into this. You know just showing up for a few hours and Culver’s has always been there and a big supporter of our special events in the community so a big thanks to them. Our Park and Rec Commission, they volunteer their time in helping out in the ticket area. They help out in the food concessions and beverage concessions so a big thanks to them. Chairman Cole Kelly was our emcee again this year. He does a fantastic job of emceeing the event and keeping everybody up to date on fish caught. The door prizes and so I appreciate his efforts and all the volunteers that participated in the event so just a great event and perfect. No injuries. That’s always good and Todd’s got a great team out there and do a fantastic job. Councilman Campion: I’d like to second those thanks. It was a pretty awesome event. I’ve been a couple times in years past but I brought my 4 year old out there who had never ice fished 23 Chanhassen City Council - February 8, 2016 before and neither had I and we had a great time. We didn’t catch a thing but we had fun and might not have caught anything because we were busy building a snowman which we named Culver and he had cheese curd eyes and a French fries nose but I, yeah that was a great event. Mayor Laufenburger: Yeah, let me echo that. I think that, and was it Katie’s first Feb Fest is that right Todd? Todd Hoffman: Yes it was. Mayor Laufenburger: Yeah, and Katie brought her mom. Katie Favro who’s our Park and Recreation specialist, she brought her mom and dad and her dad got a fish and caught a fish. Got rd a prize. That was good. The 23 Annual February Festival so this is becoming a tradition th surpassed only by the 4 of July I think in terms of festivals. Todd Gerhardt: Yes. Mayor Laufenburger: And Mr. Hoffman did you say there were over 600 fishing is that correct? Todd Hoffman: 633 fishing tickets sold. Mayor Laufenburger: Yeah fishing tickets sold and there were many other people that were there enjoying either the ice skating rink or the s’mores or the fire or the horse, the slight rides. We had horses from, I know Bob is one of the horses. Not sure the proprietor but lots of people were having fun. Kids were sliding on the hills. We ran out of parking. That’s a good indication that it was a fun event. Councilman Campion: And the Frozen sisters. Mayor Laufenburger: And the Frozen sisters were there, exactly. You know their names don’t you there Mr. Campion? Councilman Campion: Oh yes. Mayor Laufenburger: And what are they? Councilman Campion: Anna and Elsa I believe. Mayor Laufenburger: Anna and Elsa right so Anna and Elsa, I know you’re watching at home tonight so thank you very much for coming to February Festival. Anything else Mr. Gerhardt? Todd Gerhardt: We’re hosting the 112 Leaders Meeting this coming Friday in the Fountain Conference Room so it’s an opportunity where all the cities, city managers, school district and county commissioners for 112 area meet and discuss about collaboration. What’s going on in 24 Chanhassen City Council - February 8, 2016 their communities so it’s a great update. Good networking opportunity for the City of Chanhassen to host that. Mayor Laufenburger: Great, okay. Anything else? Todd Gerhardt: That’s it. COUNCIL PRESENTATIONS. Mayor Laufenburger: Council presentations. Any council member wishing to make a comment? I have a couple. First of all I just want to make a public comment. This was in our consent agenda but the council has approved a resolution in support of Councilwoman Ryan potentially as a candidate for serving on the Metro Cities Board. Metro Cities is an organization to which the City of Chanhassen belongs and there is an opening and I personally and publicly want to acknowledge that I think Councilwoman Ryan would be an excellent candidate on the Metro Cities Board. We don’t know whether or not that will happen. That’s done by the Board of Directors isn’t it? Todd Gerhardt: Correct, of Metro Cities yes. Mayor Laufenburger: Metro Cities so we wish you good luck in your appointment to that Councilwoman Ryan. Councilwoman Ryan: Thank you Mayor. Mayor Laufenburger: Also the Mayor will be in or out at. The Mayor is out this Saturday, I will be out at Dunn Brothers in the Cub Foods here in Chanhassen so from 9:00 to 11:30 if you’d like to stop in and have a cup of coffee and just chat about anything that’s on your mind. I’ll be available and look forward to seeing many people. And you don’t even have to buy something at Cub Foods but just come on in and sit down and we’ll have a nice chat. Anything on the correspondence packet? Todd Gerhardt: Mayor I did forget one other business that I should not have forgotten. The Chanhassen Villager gives us great publicity on the February Festival and I know the editor Richard Crawford was in attendance out interviewing people participating in the events and taking pictures so. Mayor Laufenburger: And posted 2 videos online too so. Todd Gerhardt: Yes. Mayor Laufenburger: So very good representation from the Villager. 25 Chanhassen City Council - February 8, 2016 Todd Gerhardt: Can’t thank them enough for helping us to get the word out about that and I believe strongly that’s how the participation gets up is those great articles that they provide for the event. Mayor Laufenburger: Good point. CORRESPONDENCE DISCUSSION. None. Councilwoman Ryan moved, Councilman Campion seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 4 to 0. The City Council meeting was adjourned at 8:00 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim 26