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CC 2017 09 25 CHANHASSEN CITY COUNCIL REGULAR MEETING SEPTEMBER 25, 2017 Mayor Laufenburger called the meeting to order at 7:10 p.m. The meeting was opened with the Pledge to the Flag. COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilwoman Tjornhom, Councilman McDonald, Councilwoman Ryan, and Councilman Campion STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Paul Oehme, Greg Sticha, Steve Ferraro, and Roger Knutson PUBLIC PRESENT: Nicole N 2851 North Manor Road Mason McClellan 1525 Hemlock Gary Dohse 6251 Teton Lane Rollie Neve 7635 Nicholas Way Tom Bakritges 6035 Culligan Way Paul & Carol Prenevost 6351 Minnewashta Woods Lita & Randy Cantin 6694 Nez Perce Drive Kristyn Vickman Chanhassen Lorenzo Binggeli Chanhassen Frank Ernst 840 Cree Drive Michael Leonard 8129 Stone Creek Drive Robert Rabe 6307 Teton Lane Mayor Laufenburger: Thank you and welcome to those of you that are in the chamber for the council meeting this evening as well as those of you who are watching via Mediacom cable network at home or wherever you may be and also joining on the website livestream. I would also like to make note for the record that all members of the council are present this evening. Our first action this evening council members is to approve the agenda. Council members are there any modifications to the printed agenda in front of us this evening? There being none. Oh. Councilman McDonald: Mr. Mayor I’d just say I’ll make a motion to approve the agenda as written. Mayor Laufenburger: That motion. Is there a second? Councilwoman Tjornhom: Second. Mayor Laufenburger: Thank you. Chanhassen City Council – September 25, 2017 Councilman McDonald moved, Councilwoman Tjornhom seconded to approve the agenda as written. All voted in favor and the motion carried unanimously with a vote of 5 to 0. PUBLIC ANNOUNCEMENTS: None. CONSENT AGENDA: Councilman McDonald moved, Councilwoman Tjornhom seconded to approve the following consent agenda items pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated September 11, 2017 2. Receive Planning Commission Minutes dated September 5, 2017 3. Receive Park and Recreation Commission Minutes dated August 22, 2017 4. Chanhassen High School-2200 Lyman Boulevard: Approve Fireworks Display Permit for the Chanhassen High School Storm Chasers Booster Club for October 13, 2017. th 5. 470-480 West 78 Street-Medical Arts Building: Approve Sign Plan Modification. 6. Resolution #2017-62: Accept $500 Donation from Charter Bank for 2017 Senior Holiday Party. 7. Fawn Hill: Approve Maintenance Agreement with Riley-Purgatory-Bluff Creek Watershed District for Storm Water Pond Maintenance. 8. Fawn Hill: Approve Revision to the Development Contract. 9. Foxwood: Approve Revision to the Development Contract. 10. Xcel Energy 115 Kilovolt Electric Transmission Line Project: Approve the City of Chaska as the Responsible Government Unit for Preparation of the Environment Assessment for the Project. All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS: Mayor Laufenburger: Our next item on the agenda this evening is the visitor presentations. Visitor presentations are part of every council meeting and at this time anyone wishing to address the council on a matter that is not on the agenda, you may address to the, step to the 2 Chanhassen City Council – September 25, 2017 podium. I would remind you that you’re making a presentation to the council but visitors are welcomed. Good evening. Frank Ernst: Good evening. My name’s Frank Ernst, 840 Cree Drive, Chanhassen. Nearly 70 years ago I came to Chanhassen with my family. I currently live in the house that we built 36 years ago. This is only the fourth time I have felt compelled to speak at a Chanhassen City Council meeting. I’m here to share my thoughts about some of the actions that took place at the th September 11 meeting. The first concern I will address tonight can be viewed on the council video of that meeting at 3 hours and 20 minutes. A council member during their presentation chose to single out a resident and criticize them because they may have chuckled. After her comment many residents, including myself spoke out against these actions. The Mayor was quick to silence the citizens but made no attempt to reign in the council member. The council member speaking during this time period stated she had calls concerning the matter being discussed. She said she had been screamed at. Accused of getting a financial gain. Not being able to think for herself. My wife and I spoke at that meeting and our comments can be heard or viewed on the video recording of that minute, mine beginning 1 hour 52 minutes and my wife’s 2 hours, 42 minutes. I would like to share that since my wife and I spoke we have experienced similar attacks as those expressed by the council members. I have copies of 23 emails that have been sent to our home since we spoke and shared our thoughts at that meeting. These emails criticized, belittle and threaten us. The first of these were received at 7:48 p.m. Tuesday, th September 12. I’m going to share these verbatim. They are a little bit messed up. The language and the punctuation and stuff but I’ll do my best. Expressing my disappointment regarding your ability to have the ability to understand a biker rallying for a council meeting. Please know that I’m a dedicated member of Bethel Fellowship and videoed you and Frank for the whole meeting. I will gladly show anybody how you behaved and just for the record all I have heard from anyone at the church is that they agree with me. Well that photo was the start. I am done being nice. I recorded all 3 hours of your behavior. My wife did respond to that email. She responded what is it? I didn’t receive anything. We then got an email that said Frank. You always are worth the cheap shot calling me a democrat. That’s so disappointing. The next one came, church is so important that I don’t want to stop anymore from going to heaven. You and Frank need a place to feel accepted. I will keep you in my prayers. The next one came and this sounded like a warning. It said you should feel defensive. And then we got one, while I do have you and Frank on video I have moved on and your gang are so wrong but needed someone to be angry at. The petition was so misleading. I thought only democrats out of desperation did that. I guess you took a play from Hillary Clinton. Please attention to the Park and Rec Plan that Councilwoman Ryan approved. Get your check book out. Once again you’re inconsistent and unstable. She wants a $50,000,000 plus new facility. Let’s see if you show up for that. She wanted pass through a consent agenda and me being the liberal that I am I requested a public hearing. Pastor Jon contacted me because you tried to explain your behavior. While I sti have you acting juvenile I know that he is probably the only positive person you know. I will be speaking at other churches this weekend but please know I will be back. You talked to Pastor Wahl. No I didn’t show him your behavior. We will never will be friends partly because I think the whole biker thing is for old people that lives are so broken that’s all they have. I have such a 3 Chanhassen City Council – September 25, 2017 wonderful family. Nothing in my family is broken. You are so sad. And again we were warned. I have a full army ready. These emails had a couple things in common. The first one I would like to share is that 19 of these emails came from an email address connected to Fish Partner Network.org. I don’t know if FISH, Families and Individuals Sharing Hope share this person’s view or not is a question I will seek to answer. I think the actions that took place at the 9/11/17 council meeting and the content of these emails, the insults, threats, and actions demonstrate that this council member is no longer willing or capable to serve the best interest of this community or residents so I ask that the council member that wrote these emails, Councilmember Bethany Tjornhom step down from her seat on the Chanhassen City Council. Mayor Laufenburger: Okay, thank you Mr. Ernst. Frank Ernst: In addition for the record of concern for future retaliation I make a formal request that she make no attempt to communicate with my wife or I by phone, email or other electronic communication unless it’s done in the official capacity of council member or preferably former council member. I will have a packet of all the emails for each of the council members and the city manager. Mayor Laufenburger: Thank you Mr. Ernst. You can provide that information to the City Manager. Is there anybody else who would like to speak at this time? Randy Cantin: Randy Cantin, 6694 Nez Perce, Chanhassen, Minnesota. I’m in full support of Frank Ernst. Mayor Laufenburger: Just a moment. I want to give him an opportunity to finish his work. Okay, now you go ahead Mr. Cantin. Sorry. Randy Cantin: I’m in full support of what Frank Ernst is requesting from the Mayor and the City Council. Mayor Laufenburger: Thank you Mr. Cantin. Is there anybody else who would like to speak at this time? Michael Leonard: Michael Leonard, 8129 Stone Creek Drive, Chanhassen. Mayor Laufenburger: Thank you Mr. Leonard. th Michael Leonard: I find that after the meeting on September 11 that I think the most upsetting thing about the council meeting that night was the calling out of a council member of a citizen that basically I think, and Mr. Mayor you said it well. We were very well behaved that night and I think you mentioned that more than one time and I don’t know what kind of bad blood exists between Councilman Ernst, former Councilman Ernst and current Councilmember Tjornhom but I, I’m not sure the difference between which word I should use. If it’s despicable, juvenile or 4 Chanhassen City Council – September 25, 2017 junior high. Since most people don’t know what junior high means I’m going to use junior high. Thank you. Mayor Laufenburger: Thank you Mr. Leonard. Anyone else wish to speak at this time? Rollie Neve: I’m Rollie Neve. Excuse me, Rollie Neve, 7635 Nicholas Way in Chanhassen and I support Mr. Ernst’s comments. Mayor Laufenburger: Thank you Mr. Neve. Anyone else? There being none I will close the visitor presentations at this time and move to the next item on our agenda. FIRE DEPARTMENT/LAW ENFORCEMENT UPDATE. Mayor Laufenburger: Is Assistant Chief Jim Van Asten here this evening? Welcome Chief. Assistant Chief Jim Van Asten: Thank you. Mayor Laufenburger: Nice to have you here. Assistant Chief Jim Van Asten: Good evening Mayor and council. Obviously I’m in lieu of Don. He’s out of town so I got chosen to do the council this evening. Fire department staffing. Staffing is at 39 of 45 paid on call firefighters. We have newly hired Fire Marshal Don Nutter. th Began his employment on Monday, September 11. Don and Mark Littfin will be spending the th remainder of September together prior to Mark’s last day on September 29. Don is a licensed firefighter and will augment the day with the response while on duty. We have 7 new probationary firefighters who started at the Southwest Academy and they’ll be attending Monday and Wednesday evening classes from now until March of 2018. In the fire department responded to 60 calls for service in August. Significant calls included 33 EMS calls including 5 motor vehicle accidents, 3 structure fire responses. Two were mutual aid responses to Eden th Prairie and one was a major loss on Leslee Curve unfortunately on August 26. Training occurred since the last fire update, we had emergency medical responder training and vehicle th extrication training. On September 11 the annual fire open house took place in the evening. Most of our fires, many of our firefighters, many of our retirees and spouses and a group of th Lion’s hosted yet another great open house. On September 13 a crew and Don covered the City of Wayzata with Engine 11 so their department could attend the wake of fallen officer Bill th Matthews. And on September 14 a 3 person crew, including the CSO assisted with traffic th control for the funeral services. On September 15 command staff attended the Carver County Joint Ops Chiefs Meeting. And the Fire Marshal report. A small fire occurred Monday, th September 11 at 7:19 a.m. on Pleasant View Road. The fire was in the garage and out upon our arrival. The cause was spontaneous combustion of rags used for staining. Building projects in various stages of plan review/construction include Powers Ridge Senior Apartments, Tweet Dental, Chanhassen West Water Treatment Plan and a few other smaller remodeling projects. th The open house that I spoke of earlier was moved from October to Monday, September 11 this 5 Chanhassen City Council – September 25, 2017 year. We had good weather and attendance. We were fighting a little bit with the Monday Night Vikings game but a lot of people came out and enjoyed themselves. And final preparations are being made with our 4 Chanhassen elementary schools for station visits. We’ll have over 1,500 children from grades preschool to third grade visiting the fire station during National Fire thth Prevention Week which runs from October 8 to the 14. The children will learn fire safety, spray a real fire hose, visit with firefighters and watch firsthand how firefighters look with all their gear on. It’s a great way for us to reach out and talk a little fire prevention education. Mayor Laufenburger: Thank you Chief. Just a moment. Any questions or comments from council? How soon can you start recruiting those youngsters for fire duty? Assistant Chief Jim Van Asten: When they turn 18. Mayor Laufenburger: Oh 18, okay. Assistant Chief Jim Van Asten: But I think we really do a good job putting a bug in their ear when they’re, they sure seem excited when they come over. Mayor Laufenburger: Alright, thank you very much Chief. Assistant Chief Jim Van Asten: Thank you. Mayor Laufenburger: Appreciate it. Let’s hear from Lieutenant Kittelson, our monthly public safety update. Good evening Lieutenant. Lt. Eric Kittelson: Good evening Mr. Mayor, council members. I have the monthly law enforcement update for you this evening. Monthly calls for service for August summary. We had 59 Group A crimes as compared to 52 in the month of July. 20 Group B crimes as compared to 19 in July. We had 428 miscellaneous non-criminal calls for service. 411 traffic issues. One administrative task for a total of 948 calls for service in the month of August. We had 57 individuals were arrested in 33 incidents and charged with 81 crimes. There were 71 citations issued. Most of those were for speed, no proof of insurance and driving after suspension and we issued 218 verbal warnings. Training update. Deputies attended Range in the month of September and qualified with their primary firearms and conducted training drills to increase their proficiency. Community relations updates. Sergeant Anderley participated in the Fire th Department open house on September 11. Sergeant Breunig attended Act on Alzheimer’s on th September 12 and Sergeant Pufahl and his Team Two staff participated in the Chanhassen st Night on the Town on September 21. Community policing project update. This is one of our goals for the year was to divide the city for follow up’s. Not for primary calls for service but for additional follow up so residents near Herman Field Park have concerns with possible activity in the park after hours so Deputy Heitz and Deputy Cory Hansen will be meeting with those residents to develop a strategy to proactively police the area to deter criminal activity and Deputy 6 Chanhassen City Council – September 25, 2017 Heitz and Hansen are assigned to that area of Chanhassen as part of our 2017 community policing project. And that concludes my report. I’ll stand for questions. Mayor Laufenburger: Alright. Who’s the newest addition to your team? Lt. Eric Kittelson: That’s close. That’d be Deputy DeRosier probably who’s on the power shift. Mayor Laufenburger: Is he, did he join us this year? Lt. Eric Kittelson: Yeah. He’s been with us for the entire year. Mayor Laufenburger: Has he? Okay. Alright, very well. Council members, any question for Mr. Kittelson? Lieutenant Kittelson. Alright, thank you very much Lieutenant Kittelson. Appreciate your report. MINNEWASHTA MANOR AREA STREET & UTILITY RECONSTRUCTION PROJECT 2016-01: PROJECT UPDATE. Mayor Laufenburger: Mr. Oehme is this your’s? Paul Oehme: Yes. Mayor Laufenburger: And this, I think this is something that was discussed at the last council meeting and you were going to bring it back, is that correct? Paul Oehme: That’s correct. Mayor Laufenburger: Go ahead Mr. Oehme. Paul Oehme: Thank you. Mayor, City Council members. We briefly discussed this project at our last council meeting and like the mayor indicated I would like to bring it before you tonight for a little bit more detailed discussion on it and what the staff has planned moving forward. So just for tonight I’d like to just give a brief background on what the project included. Review the construction progress to date and then talk about the new schedule that we’re looking at. The project itself was a reconstruction of about 1.1 miles of streets in the Manor area or Washta Bay area. It included new watermain, repairing some sanitary sewers that were out here installing curb and gutter, new storm sewer and then paving all the streets in this area. The original schedule was to get going on the project the end of May. Most of the utility started being st reconstructed in June. We tried to have all the substantial work done before our September 1 and then pave the wear course and final lift of asphalt in the following year. We did have the project proposed to be constructed in two phases. Getting it all done this year. The green area was the first phase that the contractor worked on. It included Minnewashta Woods Drive, Orchard Lane, a portion of Tanagers, Sandpiper Trail and North Manor as well. All south of 7 Chanhassen City Council – September 25, 2017 Highway 7. The section in yellow here was proposed for Washta Bay Road and then North Manor as well, and again we were planning to have this completed this construction season. Unfortunately we did run into several delays. The main issue that the contractor ran into was some of the small utilities. The gas. The electric. The phone was mismarked in the field when we went to, in pre-design phase we have the contractor mark all that, all the lines in the field and then we have a surveyor mark those tick marks or the paint marks and then put those on plans so the contractor has an indication of where he can work around. Unfortunately a lot of those locations that we found that were marked in the field last year were not exactly where they were located actually in the field so the contractor, we had to talk to the small utilities. Get them back out there, especially the gas company. Relocate some of that gas main and then also some phone and some other utilities have to be moved as well. This delayed the contractor for delays when the utilities were being moved. In some instances the utilities could not be moved so the contractor had to work around those utilities which slowed the process down as well. We did have 11 rain days, not including this week, for the project as well which did slow the project down. The contractor was diligent we thought. He did installation wise he did perform to the level of the contract. We were a little disappointed that he wasn’t working some Saturdays. Maintenance of some of the streets were poor in some instances. He did come back during the weekends and maintain some of the roads but overall the contractor met the specifications. The proposed schedule now, we don’t think we’re going to be able to complete the project all this year so what staff is proposing is to complete the roads in Phase I shown here and then also the, all of Tanagers here that’s shown in the little darker green and then all of North Manor this year yet. Unfortunately we don’t think we’ll be able to complete Minnewashta Bay this year just due to the weather forecast for November-December so that would be postponed until the next year. So just working for this year we’re looking at trying to get all the utilities completed by the second week in October. Road construction would take place that following week. Curb and rd gutter would take place after that. Grading and paving about October 23 and then restoration shortly thereafter so that would be in the green. All the green would be completed this year. Moving on for next year if we can start in May, we would finish up all of Minnewashta Bay here and have the project completed about mid-July weather permitting again. There’s approximately 51 days of work, working days out here to complete the rest of the project. With that if council’s okay with moving the schedule that does impact some of the assessments that are proposed to be levied this year. Staff feels that to be consistent with our past assessment practice of assessing properties that the road are completed that year, we would propose that the assessments just for Minnewashta Bay Road in that Phase II area be delayed one year so that we can finish that section of street and those assessments wouldn’t be payable this year and next year. And then delay the time when the assessments consistent with what was being proposed this year for the st entire project of October 1 and then just move that back to 2018 for the Minnewashta Bay area. There’d be no change to the Phase I schedule that I showed you. We feel confident we’ll be able to finish that section of road this year and being consistent with what our past practices is, that if the project’s completed those assessments would kick in and then in order to do that we would have to hold a public hearing for the change of the assessments for the Washta Bay Road and th staff is proposing to hold that on October 9 so that would be the next council meeting. So with that if there’s any questions I’d be more than happy to answer them. Steve Ferraro our city 8 Chanhassen City Council – September 25, 2017 inspector for the project is here tonight too if you have any questions for him. Any on site questions so. Mayor Laufenburger: Alright thank you Mr. Oehme. In just a moment I’ll ask the council if there’s any questions or comments but I would also, for the public record, you provided a resolution that you’re asking the council to pass this evening. This is a resolution calling for an assessment hearing for a supplement assessment for the 2016 street improvement project so this resolution is simply the resolution calling for a public hearing, is that correct? Paul Oehme: That’s correct. Mayor Laufenburger: And that’s statutory, is that correct Mr. Knutson? Roger Knutson: That’s correct. Mayor Laufenburger: So this is a document that we need to have in place tonight in order to th pass the resolution in order to have the hearing on October 9. Roger Knutson: That’s correct. Mayor Laufenburger: Okay, alright. So just wanted to state that. That was not provided as part of the packet is that correct? Paul Oehme: That’s correct. Mayor Laufenburger: Okay. Are copies of that resolution available to the? Paul Oehme: They are. Mayor Laufenburger: They are? Okay. Paul Oehme: Yep. Mayor Laufenburger: So if anybody would like to see that they’re welcomed to. So let’s bring this to the council for a moment. Council any questions on what Mr. Oehme is describing regarding Phase I and Phase II of this project? Councilman McDonald: Mr. Mayor? Mayor Laufenburger: Mr. McDonald, go ahead. Councilman McDonald: Last week when the residents came forward I guess what we became aware of was that they’ve suffered a significant inconvenience with their lives. What has 9 Chanhassen City Council – September 25, 2017 changed and what are we going to do about it? And if you’re talking about not being able to fix a section of that what impact will that have upon the residents in that area? Paul Oehme: So moving forward Washta Bay Road, there’s still utilities that would have to be replaced in that section of road. You know the road has to be completely removed and replaced. The utilities in that area will be relocated prior to the start of that second phase which I think really hampered the ability of the contractor to perform his work in a timely manner which lengthen out the project and created a lot of hardship I think on the properties so I think moving forward you know lessons learned here are the utilities. If we can get those out of the way and make sure that they’re in a location where the contractor can work expediently through the area I think and try to decrease the amount of time for each of the phases of the project, installing the watermain. Installing the storm sewer. If we can quicken that pace I think that was the biggest burden on the property owners. That things were just slow going, moving forward and I think that’s what created a lot of hardship. We did have a lot of rains this summer too and I think maintenance of the public, of that gravel or the street that was removed was difficult and we had a lot of problems getting in and out with delivery trucks and garbage trucks. They were always rutting up the roads and that created a lot of I think ruts and difficulty for the property owners to access their property so trying to lengthen the time. Decrease the time that you know all those, all the utilities are being put in would, is something that we’re going to really work on in the next phase. Councilman McDonald: Okay but when. Todd Gerhardt: Mayor and council? Mayor Laufenburger: Mr. Gerhardt, go ahead. Todd Gerhardt: Paul you’re explaining Phase I of the project, not Phase II correct? Paul Oehme: Well moving forward I’m talking about Phase II that the utilities should be out of the way and finishing up the rest of the project is going, it should go a lot quicker. A lot smoother than that first phase. Todd Gerhardt: But Phase II still has the blacktop down. Paul Oehme: It does, right. Todd Gerhardt: So nothing has been touched as a part of Phase II as a part of this construction. Paul Oehme: That’s correct. It’s still the old road bed that’s out there and we’re planning to leave that in place until next year. Todd Gerhardt: So the inconveniences that have been you know. 10 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: Endured. Todd Gerhardt: Endured this past summer has everybody in Phase I. Paul Oehme: It has, yeah. Todd Gerhardt: And those people on Phase II they had to drive through Phase I to get out. Paul Oehme: Well the Phase II there’s an access off Highway 7 so most of those people in Minnewashta Bay area should have access off Highway 7 so they shouldn’t have gone through the construction this summer. Todd Gerhardt: But the plan is still to get Phase I completed before the November timeframe. Paul Oehme: Exactly, yeah most of Phase I, that lighter green area that I showed you, this section has all been paved now so the contractor’s working on utilities. Starting utilities in North Manor and Tanagers this next week here so those areas there’s less utility work out there so those areas actually should move pretty quick. Councilman McDonald: Okay you made a comment about small utilities that weren’t marked or weren’t properly, that’s a small utility? Paul Oehme: So that’s kind of lumped into one area. So it’s the gas companies. The electrical power. It’s the, I think there’s some fiber out here. There’s telephone cable. Those utilities that are underground we found that they were, most of those were mismarked last year or the year before when we had the surveyor come and mark them. Councilman McDonald: Okay then for right now the area in green is paved so there shouldn’t be any problem with that access to the neighborhood by the residents. Paul Oehme: Right. Councilman McDonald: And the part in yellow, the pavement hasn’t been removed. Paul Oehme: That’s correct. Councilman McDonald: So between now and then they’ll have full access within the neighborhood to their homes and we won’t be going through what they did before with streets that didn’t exist. Paul Oehme: Exactly. 11 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: Mr. Oehme, is all of the part that is marked in green, both light green and dark green, is all of that paved at this time? Paul Oehme: No it’s not. North Manor, the darker green is not paved and then Tanagers Lane, the darker green here, that has not been paved yet. Mayor Laufenburger: And when will that be paved? rd Paul Oehme: We’re trying to have everything paved by October 23. That week. Mayor Laufenburger: Okay. Councilman McDonald: Okay, no more questions Mr. Mayor. Mayor Laufenburger: Okay, thank you Mr. McDonald. Councilmember Ryan, go ahead. Councilwoman Ryan: Mr. Oehme I’m guessing that you spoke with the neighbors since the last meeting. Paul Oehme: We actually moving forward, we’re looking at a neighborhood meeting before the thth October 9 meeting so I think October 5 we’re planning on having a neighborhood meeting. So I spoke to a few property owners in Phase I after the last meeting but we’re having a neighborhood meeting, what it will be next week already. Councilwoman Ryan: And based on when the represent, I wrote down your notes but I apologize I didn’t write down your name. When. Mayor Laufenburger: Nicole. Councilwoman Ryan: Nicole spoke as the representative, is there a delta or what’s the delta between what she was asking for on behalf of their residents and what the staff has, what the plan that you have put forward? Mayor Laufenburger: Well actually I think. Councilwoman Ryan: I know the request had to do with the road assessment and reduce some of those fees. Paul Oehme: Yep. Councilwoman Ryan: So I know you’re asking for us to vote on the delaying of the second phase of the assessment. 12 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: You’re not asking for action on that tonight. Paul Oehme: We’re not. Mayor Laufenburger: The only action you’re asking for tonight is that we approve a resolution that calls for a public hearing. So that’s the only action we’re taking tonight. Councilwoman Ryan: I understand but I’m just trying to. Mayor Laufenburger: Oh okay, alright. I apologize. Councilwoman Ryan: Right. I’m just trying to figure out or have a better understanding of are we communicating with the neighbors. And if you say that there’s a meeting in October then before the public hearing then that would be. Paul Oehme: Yeah, I think the notices after this meeting then they’ll go out I think tomorrow. Councilwoman Ryan: Okay. Paul Oehme: For that neighborhood meeting. Councilwoman Ryan: And then just in terms of the contractor by having another, or maybe it doesn’t have anything to do with the hearing but can we hold the contractor to higher standards? Are we in conversations with the contractor for Phase II to make sure that they’re aren’t delays and obviously rain is going to come in the summer. If we’re saying that it’s a 51 day project, just want to make sure that we have things in place to make sure that this isn’t an inconvenience again. Paul Oehme: Right, well construction unfortunately is an inconvenience. Councilwoman Ryan: Right. Paul Oehme: There’s no getting around it. It’s just managing it as best as we can to, in expediting the process and moving along as quick as we can so those are the things that staff is trying to work on. Unfortunately we came under a lot of unforeseen change in condition clauses that were on Phase I that delayed our ability to move the project along as rapidly as we would have liked to. Councilwoman Ryan: Are we keeping the same contractor for Phase II? Paul Oehme: It’s all one contract, right. Councilwoman Ryan: Thank you. 13 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: Anyone else? Mr. Oehme, frankly I was puzzled by this notion about the mismarking of the utilities. Can you explain that just a little bit? Apparently that mismarking of the utility locations caused some delays. Was that done by, what’s the number that I call if I want a mark? Paul Oehme: Gopher State One. Mayor Laufenburger: 811, is that what it is? Paul Oehme: Yep. Mayor Laufenburger: Does 811 mark these or did you actually go to the, Mr. Ferraro do you want to answer that question please? Steve Ferraro: Sure Mr. Mayor. Mayor Laufenburger: Thank you. You understand my question? Steve Ferraro: Yes. Who marks the underground utilities? Mayor Laufenburger: Yes. Steve Ferraro: Yes that would be Gopher State One call, comes out to mark the utilities. They would mark the small utilities. The gas main location. The CenturyLink telecommunication. Xcel Energy would be the power. Mediacom would be cable TV and then Jaguar Communications would be a fiber optic. Mayor Laufenburger: So Gopher State, they mark all of those? Steve Ferraro: They mark all of those yes. Mayor Laufenburger: Okay. Steve Ferraro: So what. Mayor Laufenburger: Is that common for them to mismark? Steve Ferraro: So it’s not, no. I spoke at great lengths with CenterPoint Energy. As you know CenterPoint Energy has been around for a long time. It used to be Minnegasco and so CenterPoint through the course of them becoming who they are now had purchased a bunch of smaller utility companies and as they purchased their infrastructure they also obtained their records. However their records from back in the 50’s and 60’s were not very accurate. 14 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: Okay. Steve Ferraro: So they run into situations where they try to locate the utilities where they think it is and it’s just not there. Mayor Laufenburger: Okay. So how does that manifest itself as a problem? I would assume that if the contractor comes, anticipates a gas line is going to be you know below the yellow line or whatever that is. Steve Ferraro: Yep, yep. Mayor Laufenburger: And they oh, it’s not there. Steve Ferraro: We hit it and you might rip through it. We’ve done that on this project where you just flat out rip through a gas line and then they have to come out and fix it and the fire department gets called and yeah. That or their infrastructure, their gas main is in the way of our storm sewer pipe that we’re trying to install. Mayor Laufenburger: So in the case of CenterPoint, I’m sorry to drill down on this one but if we hit their gas line because it was improperly marked who fixes that and who’s responsible for paying for fixing that? Steve Ferraro: If it was mismarked it would be CenterPoint. Mayor Laufenburger: Okay, alright. That’s good. Okay. Steve Ferraro: But it still doesn’t get you back the time. Mayor Laufenburger: I understand. I understand that represents the inconvenience or that could contribute. That could be one of the factors that would contribute to the inconvenience to the local residents. Mr. Oehme you, in this resolution, and I’m not going to read it entirely but in the resolution there’s a portion of it that says, essentially it talks about delaying the assessment on th Phase II. Is that correct? And will we see the details of that at the October 9 meeting? Paul Oehme: You will. Mayor Laufenburger: Okay. So we will get from you a proposed modification at that time. Paul Oehme: Correct. Mayor Laufenburger: Is that correct. 15 Chanhassen City Council – September 25, 2017 Paul Oehme: That’s right. Mayor Laufenburger: Okay. So the action that you’re asking for tonight is a project update, which you provided but you’re also asking that the council consider and potentially approve a resolution calling for an assessment hearing on this project specifically Phase II and for that th hearing to take place on October 9. Paul Oehme: That’s correct. Mayor Laufenburger: Okay, am I saying that correctly Mr. Knutson? Roger Knutson: Yes you are. Mayor Laufenburger: Okay, alright. So having said that just for clarification is there any discussion relative to the resolution that was put in front of you this evening council members? Is there anyone that would like to make a motion approving this resolution? Councilman McDonald: Mr. Mayor I’ll make the resolution calling an assessment hearing for a supplement assessment for the 2016 street improvement Minnewashta Manor Project No. 16-01. Mayor Laufenburger: Okay, and you’re calling for approving that resolution is that correct? Councilman McDonald: Approving that resolution. Mayor Laufenburger: Okay. Is there a second? Councilman Campion: Second. Mayor Laufenburger: Thank you Mr. Campion. Any further discussion on this? Todd Gerhardt: Mayor, City Council members. Mayor Laufenburger: Mr. Gerhardt. Todd Gerhardt: After approving this resolution I would hope that you would open up for comments from the other property owners that may not be in agreement with staff on our proposed assessment practice for Phase I. We believe we’re going to get the work completed yet this year. It’s two months later and there were substantial delays based on weather, small utilities, but I think it would be good to listen to that feedback again. Mayor Laufenburger: Okay. And are you suggesting that we vote on this resolution before or is it acceptable to hear the public comment before we vote on this resolution? 16 Chanhassen City Council – September 25, 2017 Todd Gerhardt: Nope, I think you should go ahead with this resolution because we need to hold a public hearing at our first meeting in October. Mayor Laufenburger: Okay, we have a motion and a second. Any further discussion on this resolution? Resolution #2017-62.5: Councilman McDonald moved, Councilman Campion seconded that the Chanhassen City Council approve a resolution calling for an assessment hearing for a supplement assessment for the 2016 street improvement Minnewashta Manor Area Street Reconstruction Project No. 16-01. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: Now Mr. Gerhardt you make a good suggestion. A public hearing is not part of this particular item but at Mr. Gerhardt’s suggestion I think it’s worthwhile. If there is anybody in the council chambers with us this evening that would like to speak on this project, project Phase I, Phase II. Anything related to Minnewashta Manor you are welcomed to address the council at this time. Just simply state your name and address please. Nicole Nejezchleba: Good evening council members, my name is Nicole Nejezchleba and I live at 2851 North Manor Road. Mayor Laufenburger: Welcome back. Nicole Nejezchleba: Thank you. Whoo, alright. I’m going to take you back a little bit because there’s a lot of talk about Phase I and Phase II and I love it when people shift things around and rd you’re not noticing what’s happening because back in the day, January 23 I was at the City Council hearing and we talked about this project. Mayor Laufenburger: Just a moment. Nann can you. Nicole Nejezchleba: Oh thank you. Mayor Laufenburger: Nicole has placed something. Okay. Nicole Nejezchleba: Thank you so much. Mayor Laufenburger: Alright. Nicole Nejezchleba: So the area marked in yellow is what the City provided to the residents. That is the Minnewashta Manor Road construction improvement area. It encompasses 6 roads. It encompasses North Manor Road, Orchard Lane, Minnewashta Woods Drive, Sandpiper Trail, Tanagers and Washta Bay Road. All of these roads were supposed to be completed this year by 17 Chanhassen City Council – September 25, 2017 st September 1. Now the only road that is going to be done next year supposedly is Washta Bay Road. The only residents that are part of the resolution you voted on live on Washta Bay Road. Mayor Laufenburger: Just a moment. The resolution that we just passed, is that what you’re saying? Nicole Nejezchleba: That is correct. Mayor Laufenburger: Okay, alright thank you Nicole. rd Nicole Nejezchleba: At the council hearing on January 23, I should back up. A lot of the residents showed up for all the info sessions that the City held for this project asking many questions of content in terms of what will be done and one of the questions was how are you going to deal with the assessment. People had many suggestions. I who live right here 300 feet away from Highway 7. Mayor Laufenburger: North Manor. Nicole Nejezchleba: North Manor felt why don’t we just do, do it by how much we use the road. How many linear feet. Other people felt maybe we should do it by lot size. Market value. But we heard from the City that that’s divisive because somebody’s always going to get the short end of the stick so what we were told by city staff was, that our fairness standard is that we treat all units equally. We feel all units benefit equally and all units are going to pay equally so that means all 59 units in this road construction project were assessed $8,156. Mayor Laufenburger: Right. rd Nicole Nejezchleba: Okay? After the info session City Council held a hearing on January 23 and echoed staff’s message. These are quotes from the Minutes. City Council said we the City treat everybody equally. Every parcel is considered equally beneficial. 59 property owners are proposed to benefit from this project. Each benefitting unit will be assessed $8,156. Now the assessment, excuse my math. My husband critiqued me on this. Every unit is paying $8,156 and it’s for 6 roads. I did sort of very simple math. Divided the assessment by 6. He objected to it saying well each road isn’t the same. That doesn’t make sense. I’m like well for me it does. We all contribute equally to each one of the 6 roads. Whether we drive on it. Whether we board on it. Whether we use it. We all pay for it and we were okay with that. It made sense to us. The nd due date that staff came up with for the assessment is October 2. Let’s be clear, all the people in Phase I. We’ve now been added to Phase I. We were Phase II. Switcharoo. You’re still nd October 2 so all the individuals that you will have this lovely neighborhood meeting with will not be all of the units. It will be 19 units out of 59 that you will hear input on. The due date that ndnd staff proposed was October 2. It was October 2 for a specific reason. They felt that it was st one month after the substantial completion of the project which was scheduled for September 1 so it gave them enough time to collect the assessment after substantial completion. As you hear 18 Chanhassen City Council – September 25, 2017 yourself we’re 2 months behind. Now the projected completion date is middle of October. Sorry, end of October which is one month away. North Manor Road, the road that I live on, we just had temporary. Mayor Laufenburger: That’s the dark green right? Nicole Nejezchleba: That’s the dark green and it’s the part that runs almost like a frontage road to Highway 7. We just got temporary water today. We don’t have any utilities in. Right here. I’ll show you. This part and this part. Mayor Laufenburger: Yep. Nicole Nejezchleba: Is just dirt. There’s no utilities done. No sewer. Nothing. So we don’t just have no paved roads. We have none of the utilities in. Now it’s a very aggressive schedule. The rest of the roads took 3 months. Those 2 roads are going to be pushed through now in 4 weeks. 5 weeks. Because the weather will be perfect and life will be perfect I’m sure. Now all th of a sudden here we are, September 25 and we’ve walked this path with the City, agreeing with the fairness standard. We have 59 units that are part of this road project. All of a sudden today Mr. Oehme suggested to you that now 40 units, the ones that are part of Phase I now, need to pay nd $8,156 on October 2. In one week. For all these roads that aren’t complete. Not just that, the people in Phase I are going to pay 8 months in advance for their share of Washta Bay Road which is part of Phase II. Not even the residents in Washta Bay Road are going to pay for their own road in advance. We will. The 19 units that are part of Washta Bay Road are going to be nd asked to pay zero on October 2. They’re going to pay zero towards all the roads. I keep hearing well it’s our practice that the roads that are paved, those people should pay. Well my road isn’t paved but I understand I’m paying for all the roads in the neighborhood. That’s my share so all of a sudden we’re creating a divisiveness in the neighborhood. We’re saying our standard isn’t fairness. Our standard isn’t we’re all contributing equally. Now our standard all of a sudden is, well do you have a paved road? Washta Bay Road is paved. They didn’t have to go through any inconvenience this summer. None. They have direct access from Highway 7. If you look at this from a percentage point of view, 40 units. The part that are now part of Phase I will be asked to pay 100 percent of the assessment. The only individuals you’re going to meet with are going to be 19 individuals, units on Washta Bay Road which the City will ask you that they pay zero. Going with the City’s fairness standard, I think it makes sense to treat everybody the same. It’s not fair to the people who have lived through the road construction, not just to pay for Phase I as we call it now in advance of completion but to also pay for Phase II 8 months in advance of even beginning and to say to the people who are in Phase II, oh we didn’t get your road done this year so you don’t need to pay anything. That makes absolutely no sense. Either the City has a standard that it communicates to it’s residents and we’ve agreed with it and stick with it. So what will be fair, what is an assessment solution isn’t to say let’s punish everyone in Phase I and make them pay. What is the solution is to treat everyone the same. None of the 59 units that are part of this road construction should pay the complete assessment. None. Why? Washta Bay Road won’t be done until next year. According to Mr. Oehme 35 percent of this 19 Chanhassen City Council – September 25, 2017 project is Washta Bay Road. If you take a percentage of the assessment amount that would reduce the assessment by $2,855 for each of the 59 units. What about the remainder? Well, once substantial completion is reached and one month after that should be due. Why all of a rd sudden are we paying in advance? At the hearing on January 23 Mr. Mayor we asked why is it due when it’s due? We were told it’s one month after substantial completion. We were told the City has to pay it’s bills. Well the City won’t have to pay it’s bills on Washta Bay Road and the City won’t have to pay bills when there’s no substantial completion because I know your city attorney and he’s smart. If stages aren’t completed you’re not paying. We also know if certain stages are missed you’re going to fine the contractor. So the only fair treatment of all of the units is to treat them equally like what we heard throughout this project. And if you’re looking at the memo that Mr. Oehme sent, and I have it here. He didn’t say when he talked about the original schedule for the people in Phase I. He left out what day in October that was that it was due. It’s nd October 2. It’s in 7 days. So the meeting that is now just passed a resolution, the meeting you’re having with the neighborhood, you’re not having it with the neighborhood. You’re having it with 19 units out of 59. You’re having it with 32 percent of the neighborhood. 68 percent of the neighbors are going to be asked to pay up so that 32 percent don’t just have to not pay for Washta Bay Road because they shouldn’t have to but they won’t even have to pay for the lovely paved roads that they’re assessed for. Only we will. This is vastly unfair and it’s unreasonable and I’m vastly disappointed in staff. I talked to Mr. Oehme and I told him the same thing I told you today and it didn’t seem to have influence to him whatsoever and I find it a bit disingenuous that this resolution was presented and I paid very close attention and I know you’re not living this road construction so to you all these names don’t mean anything but it was a bit misleading to council because I felt like council had the impression you were meeting with all of the neighbors. But you’re not. I stand for questions. Mayor Laufenburger: Thanks Nicole. I do have one question. Nicole Nejezchleba: Sure. Mayor Laufenburger: You broke the $8,156 into 6 different pieces. Nicole Nejezchleba: Correct. Mayor Laufenburger: Tell me why you did that. Nicole Nejezchleba: Because there are 6 roads that are part of this project and the City decided that we all need to pay our share for those roads and that share is equal. So I’m going to pull up, this is sort of a more cartoonish math but it works really well. So whether you live where I do right here. Mayor Laufenburger: Right. 20 Chanhassen City Council – September 25, 2017 Nicole Nejezchleba: So I use barely any of the roads in the neighborhood or you live where my neighbor lives way at the end, I’m paying the same amount. And we’re okay with that because it’s our neighborhood. We’re all paying an equal share. Mayor Laufenburger: Are you paying for the road down at the bottom of that drawing or are you paying for the road right in front of your house? Nicole Nejezchleba: No I’m paying for the road, the entire roads in my neighborhood. If I was only paying for my road, again right here, I wouldn’t be paying a lot because it’s 300 feet and my road is the most narrow road in the entire neighborhood so my road actually is the least expensive. Mr. Oehme commented that my portion of North Manor Road is the least expensive road and we’re saving money and those savings are not distributed to me but to my neighbors because again we’re sharing. Right? We’re sharing savings and cost. Mayor Laufenburger: Yeah this is, Nicole I think you understand that this is a practice that we’ve been using since probably 1993 where the manner in which we calculate the cost of a project and how it’s divided is in the residential area is to, one property unit that fronts the road is given one. Given the value of one. I just that’s a practice. Nicole Nejezchleba: And that makes perfect sense, yes. Mayor Laufenburger: That’s a practice that we’ve been imploring for, as I say I think closer to 24 years. Nicole Nejezchleba: And I don’t think any of the residents are arguing with that. Again at the info sessions we went around about what is the best way to do it. We heard the City’s input about we’ve tried every kind of way and this seems to be the best way because it doesn’t pit neighbor against neighbor. Mayor Laufenburger: Right. Nicole Nejezchleba: But the City is pitting neighbor against neighbor clearly. I mean we’re differentiating 19 units. We’re pitting 19 units against 40. We’re saying 40 you’re going to pay up. 19, don’t worry about it. Next year and what’s sad about that is I’m not just paying for the road that’s paved. Again my road isn’t paved. Tanagers isn’t paved. Who knows if it will be nd done but I am paying for Washta Bay Road. I’m paying for Phase II on October 2. Mayor Laufenburger: Yeah I’m trying to follow your logic on that Nicole and I’m not arguing. I’m just trying to understand. Nicole Nejezchleba: Oh you can argue. It’s okay I’m married. Mayor Laufenburger: And I’m just going to use round numbers here. 21 Chanhassen City Council – September 25, 2017 Nicole Nejezchleba: Sure. Mayor Laufenburger: And I’m going to use 60. Nicole Nejezchleba: Sure. Mayor Laufenburger: And I’m going to use $8,000. Nicole Nejezchleba: Okay. Mayor Laufenburger: So if the cost of this project is 60 times 8. Nicole Nejezchleba: It’s about $3 million dollars. Mayor Laufenburger: How much? 48. So 60 times 8 is, is that about $480,000? Nicole Nejezchleba: It’s about a half a million is what the neighbors paying the assessment pool. Mayor Laufenburger: Okay. So my math is showing up here. So $480,000 is the cost of the entire project. Nicole Nejezchleba: No it’s just the assessment portion. Mayor Laufenburger: Excuse me, is the assessments for the entire project. Nicole Nejezchleba: Correct, yes. Mayor Laufenburger: So the assessments for the entire project are portioned out at 60 property units. I know it’s 59 but for simplicity, for 60. Say that again? Todd Gerhardt: $8,000 per unit. Mayor Laufenburger: $8,000 per unit so if 40 of them are completed, shouldn’t those 40 pay for the assessment for their portion of the assessment that, for the entire project? Nicole Nejezchleba: I’m going to say this. First of all it’s not complete so I’m going to disagree with you on that. Mayor Laufenburger: Okay, alright so I understand it’s not complete. Nicole Nejezchleba: …if it is completed and the City standard was substantial completion it would be one month after substantial completion the assessment should be due. We’re going to 22 Chanhassen City Council – September 25, 2017 do exactly what the City said they were going to do. We’re going to just apply it now and I’m okay paying for the portion that’s completed but Washta Bay Road isn’t. This was one project. We can’t now say oh but wait, Washta Bay Road was included but now we’re just going to pretend it wasn’t and we’re going to say the $8,000 is just for what’s completed. No. It’s for everything and I understand there’s issues. I get that. Mayor Laufenburger: Yeah. Nicole Nejezchleba: But if there’s issues then all the units need to also be treated equally with quote unquote the reduction of cost to the City. Washta Bay Road won’t be worked on until next year. Mayor Laufenburger: So are you suggesting that we should assess you, if $8,000 is the amount, we should assess you $8,000 times 40 divided by 60 or roughly two-thirds? Nicole Nejezchleba: No. What I’m saying is, if the entire project, it’s very simple. City staff said the entire project per unit is going to cost you an assessment $8,000, right? Entire project. Mayor Laufenburger: Right. Nicole Nejezchleba: If city staff says to me we can’t complete 35 percent this year, very simple. Fine. Take $8,000. Take 35 percent off. That’s roughly $2,800 off so we’re at $5,000. Once you reach substantial completion for the remainder, one month later come to me like you were going to initially. I don’t understand why we feel it’s okay to have one standard of fairness. One way of doing things. We have all these meetings. It took a year and a half for this to get going. And then we run into an issue and all of a sudden we say you know what residents, remember how we talked to you about all this stuff. Never mind. Forget about it. You pay in advance. Mayor Laufenburger: Right. Nicole Nejezchleba: Now do I think the Washta Bay Road people should pay for Washta Bay Road? Absolutely not. Not right now. No. Next year. But should they pay for their portion of the other roads? Sure but not now either. They’re not completed. Mayor Laufenburger: Okay I, I believe I understand what you’re saying Nicole, okay. Nicole Nejezchleba: Right. Mayor Laufenburger: I’m not sure I agree with it though because if we, if from the outset. Again I’m going to call this simple math but if from the outset this was broken into two phases. Two phases. If from the outset it was two different projects. Nicole Nejezchleba: It was not sir, I’m sorry. 23 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: I don’t know but if it was and your project, and the cost of your project was to be divided amongst 40 people. 40 property owners. 40 times $8,000 is roughly $320,000 and I think the $320,000 would be roughly 40 percent of the cost of that project. Nicole Nejezchleba: I think you’re over complicating it. Mayor Laufenburger: I was trying to over simplify it. Nicole Nejezchleba: I’m going by the information that staff and the City gave us. Mayor Laufenburger: Okay. Nicole Nejezchleba: If the City says these 6 roads. Mayor Laufenburger: Yep. Nicole Nejezchleba: You’re all going to be liable for whether you drive them or not because that’s fair. Mayor Laufenburger: Yep. Nicole Nejezchleba: And it’s going to cost $8,000 for these 6 roads to be done and then the City cannot do these 6 roads. Is the City paying for Washta Bay Road right now? No. I know your attorney. He’s smart. You will not be paying for Washta Bay Road. Mayor Laufenburger: How well do you know our attorney? Nicole Nejezchleba: I know him well enough. Sometimes you’ve got to fake it right? Mayor Laufenburger: Okay, alright. Nicole Nejezchleba: No, he looks very smart and I know there’s no way the City would be paying for Washta Bay Road. It’s not that complicated Mr. Mayor. I know that you’re trying to figure out a way where, which is my property that’s being worked on. It’s not. I’m paying for all 6 roads. That’s what city staff said you need to do. I’m okay with that but I’m not going to pay for a road that’s not being built yet and I’m not going to pay for a road that’s not substantially completed if that was the City’s standard. Mayor Laufenburger: Okay. Nicole Nejezchleba: Either we have a standard or we don’t but then we shouldn’t have info sessions where we talk about stuff because then it’s fluff. 24 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: Okay. Nicole I’m going to ask you to just pause there for a second, okay? Alright. Nicole Nejezchleba: Sounds good. Mayor Laufenburger: Mr. McDonald. Councilman McDonald: Okay Nicole I can see your point. What it comes down to though I would ask the question if this was originally proposed as one project, when did it become Phase I and Phase II. Nicole Nejezchleba: It was one project. Councilman McDonald: Well okay, wait a minute. And then the next part is, as you’ve talked about, why should you pay for a road that has not been worked on I think has some merit and if we were going to look at this as far as an assessment, you should only be assessed for work that was completed so I would agree with you there. But my question is when did this become a Phase I and a Phase II because what you showed us back in January it was one project. Nicole Nejezchleba: Can I answer that question for you? Councilman McDonald: If you’ve got the answer, yes. Nicole Nejezchleba: I do. I have the answer. There was always a Phase I and Phase II. Not because this was two projects but because they need to start somewhere and somewhere and start rd somewhere. It’s as simple as that. I have the January 23 Minutes right here. And Mr. Oehme actually confirmed just now, I took notes. He said this project originally was 1.1 mile reconstruction. That’s the entire project and there was always a Phase I and Phase II. Mr. Oehme now conveniently renamed Phase II into Phase I to lump us Phase twoers into the Phase oners just because now he’s differentiating for assessment. So the Phase I and Phase II was always part of this project but this is one project. Right here it says project summary. This project includes the reconstruction of approximately 1.1 miles of streets. It goes into sewer. Goes into curb and gutter. If you remember I spoke on the curb and gutter issue and there’s rd Phase I and Phase II in the January 23 also. Mayor Laufenburger: Okay. Nicole Nejezchleba: It was always Phase I and Phase II. Mayor Laufenburger: Go ahead Mr. McDonald. 25 Chanhassen City Council – September 25, 2017 Councilman McDonald: Well okay then if I understand you correctly you would not be opposed to paying for what work has been completed but you would like for everybody to pay for that portion? Not for the 19 members to get a pass until next year. Nicole Nejezchleba: Correct. I want exactly that. I want everybody to be treated the same. Just like we were told we were going to be treated. That’s the only fair thing and only when it’s substantially completed. I know Mr. Oehme’s very confident it will get done. I pray to God it will because once we run into November-December we’re in trouble if my road is not paved. Councilman McDonald: Well that was my question I asked earlier was are we going to be in a position where you can use those roads because if we go 6 to 8 months because of weather and everything we can’t leave you with roads that aren’t passable. Nicole Nejezchleba: Like I said the roads that have been worked on that are now paved, though they’re not completed took 3 months. Now we’re assigning about 5 weeks for the remaining roads so apparently now people work harder and the weather’s going to be better and there’s no labor issues and no utility issues. It’s going to be fantastic. Councilman McDonald: Okay. Todd Gerhardt: Mayor, City Council. Mayor Laufenburger: Mr. Gerhardt, go ahead. Todd Gerhardt: This past spring we held the assessment hearing. It’s our practice to hold the assessment hearing prior to awarding bid so all the property owners were aware of what the total costs were and we knew if there was any appeals that were going to be filed against the project so we knew we had a legitimate project that we could move ahead. So everybody was assessed nd $8,530 and they were all to pay it by October 2. We didn’t get all the work completed like we thought we were going to but there’s nothing in the assessment rolls that said you had to have all the work completed. And we do our best efforts. The contractor does it’s best efforts to complete the work and we gave you the reasons why the work was not completed. And to find some fairness in this we came back and said 19 homes did not receive any benefit from this project so we were suggested that the 19 homes not be assessed from what the original assessment roll was where the other homes hopefully, if weather permitting, will be completed and receive curb, gutter, streets, sewer, water in front of their house. That’s our proposal to the City Council. If you’d like to extend the payment until that work is completed staff will accept ndth that other than the October 2. If it’s October 30. My Finance Director is going to give me ugly looks because everything needs to go to the County by a certain date but we will ask for nd some lenience from the County and until that work gets completed, extend that October 2 deadline until the work is completed. Mayor Laufenburger: Okay. 26 Chanhassen City Council – September 25, 2017 Councilman McDonald: May I ask the City Manager a question then? Based upon what Nicole is presenting to us why would it not work to basically assess for work that has been completed? You talk about receiving a benefit. Minnewashta or. Mayor Laufenburger: Washta Bay. Councilman McDonald: Washta Bay is internal to this project yet everybody there will have to drive on these other roads to get out so I would say that they’ve received a benefit so why wouldn’t we assess those 19 and again taking what Nicole has said, you assess to the percentage of the completion of the project. Todd Gerhardt: Because that is not the assessment practice we use. The assessment practice we use was a per unit basis. It wasn’t a percentage. They didn’t pay for that percentage of road in front of Nicole’s house. They paid for the percentage of road in front of their house. It’s the assessment practice that we use is a per unit basis. That’s why staff suggested that you break it into the units that benefitted from the project. Everybody got their section of road, be it 300 feet. Be it 50 feet. They all got the benefit of that road that has to pay the assessment. It wasn’t based on a percentage of frontage. Councilman McDonald: Well no she’s not asking for a percentage of frontage. She’s asking for a percentage of completion of the project. My question though would be, have we ever had this happen before? That we’ve gotten into something and we couldn’t completely complete a project. What did we do at that point? Todd Gerhardt: I’m not remembering any. Councilman McDonald: So this is new territory for us. Paul Oehme: Yeah this is new territory. We’ve always completed projects that same year. Mayor Laufenburger: Mr. Oehme can you clarify something? I don’t mean to interrupt but can you clarify something for me? What is, what are we by statute obligated to pay to the contractor? Are we obligated on a payment schedule? I’m assuming that that’s part of the bid process and that is likely governed by state statute. Paul Oehme: It’s work performed. Mayor Laufenburger: So it’s based on work performed? Paul Oehme: So every month he can request, the contractor can request payment for the work performed for that month. 27 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: And we validate the, we validate that in some form and then we authorize it or we say. Paul Oehme: Right, authorize it. Mayor Laufenburger: And you’re a hundred more over or something like that. Paul Oehme: Exactly. Yep. Check quantities. Mayor Laufenburger: Yep. So is it true then that we have not been billed for nor will we pay for work that is not done on Washta Bay Road? Is that correct? Paul Oehme: That’s correct, yeah. We will not be billed for the work this year on Washta Bay Road. Mayor Laufenburger: Okay. Let me go back to this, Mr. Gerhardt I think you said something about getting something to the County. Todd Gerhardt: Yes. Mayor Laufenburger: Talk about, a little bit about that. Todd Gerhardt: We have to certify the assessments for those that choose not to pay the entire assessment off and take the, I believe it’s 8 years at a certain rate of interest. Nicole Nejezchleba: 10 years, 5.75 percent. Todd Gerhardt: Okay. Nicole Nejezchleba: Sorry, just helping out. Helping out. Todd Gerhardt: At one point it was 8 so. Mayor Laufenburger: Prime plus 2 is what I think is what it is, right? Todd Gerhardt: Yes. Mayor Laufenburger: So and the purpose for that is to get it to the County so that they can put it onto the property tax statements as collectible portion of the property taxes, is that correct? Todd Gerhardt: Correct. 28 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: Okay. So what problems does that present if we don’t get it to the County th by, let me pick an arbitrary date? October 15. What happens? Todd Gerhardt: It doesn’t show up on their tax statement. Mayor Laufenburger: And if it doesn’t show up on their tax statement likely. Todd Gerhardt: We do not receive. Mayor Laufenburger: We do not receive it. So that means it would have to go all the way to next year. Todd Gerhardt: It would be double the next year. Mayor Laufenburger: So it would be 2 years due the following year? Todd Gerhardt: (Yes). Mayor Laufenburger: Unless somebody chose to pay it off right away, then in that case it doesn’t show up on their assessment. Todd Gerhardt: Right. Mayor Laufenburger: Their property tax statement, okay. Todd Gerhardt: So that’s why you pick the date is to give them that opportunity to choose to pay nd it off or to have it certified. Those people that do not choose to pay by October 2, it will be assessed onto their property taxes. Mayor Laufenburger: Okay. Councilman McDonald: Okay well I’m still confused. If we’re in new territory I guess I would ask our counsel then what are our options? I mean you had talked about we certified an assessment plan. Can we change that based upon circumstances? Todd Gerhardt: As Roger would tell you. Councilman McDonald: I can do anything I want right? Roger Knutson: Well I wouldn’t be that broad. Go quite that broad but there’s a process which we’re following here, proposed to follow called a supplemental assessment. When something occurs that you didn’t anticipate occurring. A mistake or something like we have here. You can do a supplement assessment to change the assessment roll you’ve already adopted. 29 Chanhassen City Council – September 25, 2017 Councilman McDonald: So let me ask Mr. Gerhardt and maybe Mr. Oehme. If we were to go back and say okay we’re going to assess for the work completed. That means we’re out 35 percent until the work is completed next year. Can’t we add that at that point? What problems are we creating? Again that’s why I’m asking a question and you know we’ve never done this before but I mean, Nicole does bring up an issue of fundamental fairness and I’m trying to understand that. I understand eventually the people on, I’m sorry I keep forgetting the name. Nicole Nejezchleba: Washta Bay. Councilman McDonald: Washta Bay Road will eventually. Mayor Laufenburger: Unfinished work. Councilman McDonald: Yeah will eventually catch up because that means they’re probably going to pay longer than everybody else but is there something that we can do if we say as part of our policy to treat everybody fairly why wouldn’t we do that? Todd Gerhardt: If you think that is the fair approach you could do that. You would have to change the assessment roll showing a lighter amount going into payable 2018 and a larger amount in 2019. And to make up that difference 2019 will probably be more than 2020. Councilman McDonald: But if I understand Mr. Knutson we could do that through a supplemental assessment, is that correct? Todd Gerhardt: Yes, you’d have to change the supplement assessment that you just approved to include the additional neighbors. Right now this supplemental agreement called for 19. We’d have to add the 35? Nicole Nejezchleba: It’s 59 total for 40 additional. Todd Gerhardt: 40 additional. th Councilman McDonald: Okay and all this really needs to be done before the 30 of October so we’ve got a deadline. What problems are we creating there? nd Nicole Nejezchleba: It’s October 2. Mayor Laufenburger: Yeah the. Councilman McDonald: I would ask Mr. Sticha because he’s the one that has to do it. 30 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: Nicole reminded us that the approval that the City Council has provided nd so far is that the assessment will actually be recorded on or about October 2. Is that correct Mr. Sticha? Greg Sticha: Let me answer a bunch of questions here. First of all we have to keep in mind some people have already paid in full their assessment so we are, we have that one complication to begin with. We would have to figure out what we would want to do for those people. Mayor Laufenburger: Okay. Greg Sticha: If you’re going to set up two different assessment rolls for the same project over two different years, you could do that. Administratively that’s going to be much more time consuming and we’ll have to track both rolls and payments on both rolls with the County over two different 8 year periods. We’ve never done that before. We could do that. It will take a little extra time. We have until technically the end of November. We like to get them in by the end of October so we can finish all of our calculations and sort of get them, the numbers ready st for the County by the end of November. Technically we have until December 1 to get them to the County and at that point in time once the number is given to the County it can be taken off but nothing can be added. So we still even have the flexibility of you could take something off stst after December 1. You have until December 31 to take something off but you cannot add to st that number. So it’s fairly complicated and so we go with a due date of October 31 simply so we can get all of it to the County. Calculated correctly and we have less issues in doing so. From a finance department opinion, having two different rolls over two different years is not a really good idea. It would be very challenging and we also have the issue of, we’ve had some people pay too so we would have to contact those people. Somehow either offer them the opportunity to give them their money back. Mayor Laufenburger: Or a portion of their money. Greg Sticha: Or a portion of their money back. We don’t have phone numbers for these people for the most part, at least finance doesn’t. Maybe engineering does. Mayor Laufenburger: Google can find them. I bet Nicole could find them. Nicole Nejezchleba: Absolutely. Greg Sticha: Nicole probably could find them, you’re right. So we would have to figure out what we’re going to do with those people that have already paid as well so. Mayor Laufenburger: Alright, so Nicole. Nicole Nejezchleba: Yes sir. 31 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: I’m going to ask if anybody else would like to speak on this matter so would you allow me to do that? Nicole Nejezchleba: Oh absolutely, thank you so much. Mayor Laufenburger: Thank you for your patience with us. Is there, this is not a public hearing but if there is anybody else that would like to speak regarding the resolution which the council just passed or this project would you please come to the council at this time. Nicole Nejezchleba: There are neighbors here. I don’t know if they want to speak up. Mayor Laufenburger: I’ll make that offer. Would anybody else like to speak? Okay, alright. Chad Herman: Hi, I’m Chad Herman. I live at 2851 North Manor Road. I’m with Nicole. I don’t know if that’s good or bad. Mayor Laufenburger: It’s good. I think it’s a good thing. Chad Herman: I think it’s great. Mayor Laufenburger: Yeah. Chad Herman: I think it’s very good. Mayor Laufenburger: Especially if you know math. Chad Herman: I was the one, her and I had a long discussion about that. I lost. Mayor Laufenburger: Alright, I don’t mean to make light of that Mr. Herman, go ahead. Chad Herman: Yeah. I guess I just wanted to kind of, I think Nicole touched on every part great if not superb but I think, I think the City Council and you Mr. Mayor kind of got a pretty nice tip toe through the tulips story about the Washta, Minnewashta Manor Road project. To be honest it was a complete nightmare. And I think the biggest portion that I think the City should take away from this is communication. The communication between the City and the residents was non- existent. I found out first hand, like what Nicole said, I found out first hand Friday. Found somebody walking around my back yard. Got through the privacy fence looking around trying to figure out how to hook up the water. Nobody came and told us water was being hooked up. Nobody came and told us that the City demanded that it be hooked up by Monday morning, 7:00 a.m. sharp. Got no door knock. Got no door hanger. No call. No message. Luckily I was there 7:00 a.m. this morning and the individual showed up at 8:00. The comment he made was, today’s a rain day and I got called into work so because it sounds like the City demanded that the water be turned off tomorrow. At least that’s what I was told. So I think the communication had 32 Chanhassen City Council – September 25, 2017 a lot to be desired. The communication on the website was lack luster at best. It’s over a month old. It doesn’t even line up with the dates that were presented tonight. It still doesn’t line up with the dates that well from a month ago. According to the dates a month ago they’re 2 weeks behind already. I guess the other question, and I think Nicole touched on those too but the other questions I’m curious about is with all the delays I would assume that the contractor’s already paid penalties to the City. I don’t know if that’s true or not. If the contractor’s already paid penalties. I would assume they have by now. Since they’re months behind. Mayor Laufenburger: Why don’t you continue. Penalties may not be you know. Chad Herman: Yeah I’m just assuming. You’ve already talked about that. And I guess the one comment that Mr. Sticha, sorry I couldn’t remember his name. I’ll confirm the December date. I actually talked to the assistant finance director and she confirmed that. Mayor Laufenburger: At the County? Chad Herman: At the City. Mayor Laufenburger: Oh at the City, okay. Chad Herman: Ms. Washburn I believe is her name. Mayor Laufenburger: Danielle Washburn. Chad Herman: I talked to her just recently and she confirmed that the City can wait all the way up til the second week of December to submit to the County for property taxes so there is some wiggle room. There is some time. I understand that there’s number crunching and I understand that there’s, to make it correct and making sure it is correct before you give it to the City, the County so the City needs time as well but I guess I’m just kind of, I just wanted the City to be aware, at least City Council and Mr. Mayor you’re aware that I think for Washta Bay Road, the biggest thing is the communication. I mean it’s been tremendously horrible for at least the Phase I and now us being Phase II put into Phase I which we just found out about basically today. That we’re now Phase I which we were never Phase I so I guess that’s all I had to say. Thank you for your time. Mayor Laufenburger: Alright, well stated. Thank you Mr. Herman. I’ll ask one more time. Is there anybody else that would like to speak on this? Okay. Mr. Gerhardt, I know you’re probably not prepared to come forward with a suggestion at this time but I would ask. I would direct staff, and I would look for any discussion from council on this but I would direct staff to prepare some information for the council that number one, tells us what options we have to, if we choose to, to modify the assessments. I would like to have clarity on when we need to act in order to, in order to insure that this is handled efficiently for all 59 people. And I would ask that you try to get some counsel from the County on what leeway they may give us for presentation 33 Chanhassen City Council – September 25, 2017 of assessments and collection of assessments. And I would also ask Mr. Gerhardt to take to heart the comments from at least two of the people in this project area regarding communications and I’ll just call it what their perception of workmanship in the project area. Accept that Mr. Gerhardt? Todd Gerhardt: Yes Mayor, and I would just, Roger on the resolution that was just approved tonight. Do you believe that included everybody or just the Washta Bay Road people? Roger Knutson: It includes everyone. Everyone in the project. All, how many? All 59 people will be noticed of the hearing. Todd Gerhardt: So Phase I and Phase II, this will be back at your October. th Mayor Laufenburger: 9. th Todd Gerhardt: 9. th Mayor Laufenburger: October 9 meeting. th Todd Gerhardt: Yeah 9 meeting. Mayor Laufenburger: Okay and I will quote from the resolution. A hearing shall be held on the th 9 day of October in the council chambers at City Hall. That’s here. To pass upon proposed assessments and at such time and place all persons owning property affected by such improvements and it specifically says the Minnewashta Manor Project No. 16-01 which includes the entire project. And all persons owning property affected by such improvements will be given an opportunity to be heard with reference to such assessment. Todd Gerhardt: Perfect. Mayor Laufenburger: So that is. Todd Gerhardt: So that includes everybody that’s been assessed today. Mayor Laufenburger: Everybody, it would be 59 property owners in the project area. th Todd Gerhardt: Right. So we’re basically hold another assessment hearing on October 9 and staff will bring back options for you for that assessment hearing and get you the deadlines of what we need to the County. What is the very last day and what options you have for those assessments. th Mayor Laufenburger: Good. And that is on October 9. Mr. Oehme you made reference to a th meeting on October 5. 34 Chanhassen City Council – September 25, 2017 Paul Oehme: Correct. Mayor Laufenburger: Where will that meeting be held? Paul Oehme: It will be here at the City Council chambers and that would include everybody in the project area. All 59. Mayor Laufenburger: So that’s, okay all 59 people in the project area. Paul Oehme: Correct. thth Mayor Laufenburger: Okay. Two events affecting the project area. October 5 and October 9, okay. Mr. Herman go ahead. Address us. Chad Herman: Sorry about that. I just remembered something Mr. Mayor, City Council members and staff. Mr. Oehme referred to a mailing that went out to the residents in Minnewashta Manor Road Construction Project. Mayor Laufenburger: I don’t recall that he did but I trust you. Chad Herman: Well in my discussion with Ms. Washburn this morning she mentioned a mailer that’s going out to the residents about this assessment. Mayor Laufenburger: About the meeting? Chad Herman: About the, she didn’t know the great detail and I don’t think she was comfortable in sharing that due to it came from the engineering department. Mayor Laufenburger: Okay. Chad Herman: But she did say that there were two individual mailers and depending upon what address you were, you were told a different type of information. Mayor Laufenburger: Okay. Chad Herman: I have not seen the mailer yet so I can’t comment but is this the mailer that refers thth to the October 5 and 9 dates? Paul Oehme: Correct. Chad Herman: So. 35 Chanhassen City Council – September 25, 2017 th Mayor Laufenburger: The 5 would be the announcement of a. Todd Gerhardt: Informational meeting. th Mayor Laufenburger: Of an information meeting and the 9 would be the announcement of an assessment hearing. Chad Herman: So this is going to sound like a dumb question and pardon me for asking it the way I am but if it’s, if it’s for all the residents why is it two different mailers? Mayor Laufenburger: Okay. Chad Herman: Based on address. Mayor Laufenburger: Yeah I can’t answer that question and is it possible for somebody else to answer that question? Mr. Oehme can you? Paul Oehme: Yep. So the proposed, the proposal for the project again is one notification for the Phase I area. Mayor Laufenburger: That would be the 40 homes. Paul Oehme: The 40 homes, yep. Would be notified that this public hearing is coming up on the thth 9 and that there’s a neighborhood meeting on the 5 and the proposal that’s in the mailer is that the assessment amount and the terms would be the same consistent with what was approved back in January of this year. The second mailer is for Washta Bay area. Mayor Laufenburger: The undone project. Paul Oehme: Yep, the Phase II that notifying them again (a), about the neighborhood meeting th and then also the October 9 public hearing meeting and then notifying them that the proposal is to defer or postpone their assessments until next year. So that’s why we had to send two mailers out. Mayor Laufenburger: Okay, so there was an anticipation perhaps Mr. Herman about the information that would be valid for the 40 people and differentiating that from the 19 people, is that right? 19 on Washta Bay? Paul Oehme: That’s correct. Mayor Laufenburger: Okay so. 36 Chanhassen City Council – September 25, 2017 Chad Herman: I guess my concern is, isn’t the City putting the cart before the horse here with those two mailers then? Mayor Laufenburger: That’s not unreasonable for us to anticipate a meeting so that we give notice anticipating that the council would likely approve a resolution for a supplemental assessment hearing which is, you heard from Mr. Knutson our lawyer that is statutory practice so that’s not unusual for us to anticipate like we will announce okay we’re going to have an open house on this particular project and the open house is 3 weeks in advance so I would say that’s an efficient way of communicating to people what we would like to have happen. But that’s a reasonable question Mr. Herman, okay? Chad Herman: Yeah, okay. Thank you. Mayor Laufenburger: Council any comment on what I asked staff to prepare? Mr. Campion. Councilman Campion: Mr. Mayor. The only addition that would be dealing with the payment ndth deadline. You know if it’s October 2 and we’re not meeting until the 9 or the open house to thst the 5, what would be the best mechanism for you know pushing that out to October 31? Mayor Laufenburger: Right. nd Todd Gerhardt: Well obviously October 2 is not the deadline to make the payment since we’re th going to meet on October 19 to talk about the assessments. th Mayor Laufenburger: October 9. th Paul Oehme: October 9. nd Todd Gerhardt: But right now the deadline is to pay by October 2 so. Paul Oehme: Well, yeah without interest. It’s not the entire amount that’s being asked to pay. nd It’s the start of the interest accrual. That’s what the October 2 date is. th Todd Gerhardt: Well I’m looking at October 9 is to reconsider the assessments that were approved this last spring and that there is no deadline on any payments prior to that. Mayor Laufenburger: Well to Mr. Campion’s question. Mr. Sticha, is there any notice that we are giving to any of the 59 property owners in Minnewashta Manor, are we giving them any nd notice that they must pay by October 2? Greg Sticha: We have in the past. Mayor Laufenburger: And? 37 Chanhassen City Council – September 25, 2017 Greg Sticha: Prior to this meeting. And so some people have paid. Some people who may not nd be in communication with this meeting may pay before October 2. Mayor Laufenburger: Right. nd Greg Sticha: We certainly can delay the interest free period beyond October 2 if council would like to do so. That’s not a problem. Mayor Laufenburger: I think, what I’m thinking about to Mr. Campion’s point through is let’s be proactive and say that action at City Hall may delay the, or will delay the deadline for payment so we would ask them to hold any payments. nd Greg Sticha: We can send out a mailer. They won’t get it until Thursday and the 2 is Monday but we can certainly do that. Mayor Laufenburger: I think it’s worthwhile for us to communicate to them, to Mr. Campion’s nd point that those of you that were fearful about October 2, delay your fear just a little longer okay. Councilwoman Ryan: And could we add it to the website and you can communicate it to your neighbors that it will also be on the website. Todd Gerhardt: We’ll send a letter directly to every assessment property owner. Greg Sticha: Yeah, and we can put it on the website too. Mayor Laufenburger: Mr. Campion. Councilman Campion: That sounds good, yeah thank you. Mayor Laufenburger: Alright, any other comment from council? Councilman McDonald: I have a question Mr. Mayor. You had said something during this that I think is pretty important. It sounds like if we delay payments for say this year we make up those payments next year so anyone that’s financing would end up paying double. Did I hear that right or? Todd Gerhardt: Well Nicole had a portion of the payment this year and so you know to make up that difference of the portion you’d have to do that. That is not going to be one of our options. That is too complicated. One of our options probably will be a complete delay of payments for a year or. 38 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: So then everybody is delayed. Councilman McDonald: Okay. Todd Gerhardt: Right. And then or our current option of what Paul proposed this evening or a third one is wait until the project’s completed. Councilman McDonald: Okay, thank you. Councilwoman Ryan: And Mr. Mayor, as well as the inclusion or exclusion of the people on Washta Bay? Todd Gerhardt: Yes. Councilwoman Ryan: Okay. And then one other thing, aside from the assessment piece of this, how are we addressing this with this contractor? I mean I am very concerned about that and have we, have we fined the contractor or what’s the, can you explain that relationship? Paul Oehme: Yep. So the attorney’s office and I have talked about it already and in our contract there was a change in condition clause so we are studying that in terms of you know what, how does that, how does the change in conditions for where the contractor thought the private utilities were versus where they were, how does that relate to the substantial completion date and the liquidated damages that potentially could accrued in this project so it’s, we’ve talked about it. No decisions have been made yet but that’s still on the table. Councilwoman Ryan: Okay, and could those, whenever you resolve could those be brought back to council as well at the next meeting please? Paul Oehme: Sure. Mayor Laufenburger: Or whenever they are resolved, yeah. Councilwoman Ryan: Right, whenever they’re resolved. Mayor Laufenburger: Yeah, okay. Alright, Mr. Knutson is there anything that we’ve done here that we’re going to put you in jail for? Todd Gerhardt: He’s too smart to go to jail. Roger Knutson: No I’m not going to jail. I’m not worried about that. Mayor Laufenburger: Okay. 39 Chanhassen City Council – September 25, 2017 Todd Gerhardt: There’s no assessment jail. Mayor Laufenburger: Okay, alright. Well I would just like to say Nicole, thank you for the time that you’ve prepared for tonight and I think that help you see that you had an impact on what’s going to happen with your neighborhood and I would expect your neighbors are probably silently cheering right now so thank you for your work and Mr. Herman, thank you for your selection. Chad Herman: You’re welcome. PUBLIC HEARING: VACATE PUBLIC DRAINAGE AND UTILITY EASEMENTS IN REDSTONE RIDGE. Mayor Laufenburger: Who’s got this one? Paul Oehme: I do. Mayor Laufenburger: Mr. Oehme. Paul Oehme: Thank you Mayor, City Council members. So this is a proposed vacation of a drainage utility easement off of Teton Lane, which is right off of Powers Boulevard and Bretton Way. This easement has been in place for, since the Curry Farm development but this, these parcels have been replatted with Redstone Ridge development. Four lots as shown here and the underlying easement, the drainage utility easement is shown here. That was never vacated with the original plat so the developer, property owners are requesting that that drainage and utility easement be vacated prior to, they start, they’re starting the building of their houses. So staff has reviewed the easement. We don’t have any use for the drainage, this drainage utility easement. Other drainage utility easements were dedicated with the four lot subdivision so we’re comfortable vacating the easement at this time. If there’s any questions I’d be more than happy to answer them. Otherwise I would request that a public hearing be opened at this time. Mayor Laufenburger: Okay, thank you Mr. Oehme. Any questions of staff before I open the public hearing? Okay. So at this time I will open a public hearing on Resolution 2017-63. The vacation of a public drainage and utility easements in Redstone Ridge. Anyone wishing to speak to the council regarding this, the vacating of this public drainage and utility may step to the microphone and speak to the council at this time. Good evening. State your name and address please. Robert Rabe: My name is Robert Rabe and I live at 6307 Teton. And if you don’t mind I don’t know much about this. Could you explain to me just a little bit of the effect? Paul Oehme: Sure. So the, it’s a drainage utility easement. It’s just used for if the City or potentially private utility contractors when they want to put in say an electrical line or if the City needs to put in drainage, some sort of storm sewer system we would have the right to use that 40 Chanhassen City Council – September 25, 2017 easement for those type of installations and then also the maintenance. The future maintenance of that as well so we would have the right to maintain and utilize that easement to maintain that infrastructure. Since there is no utilities out here. Mayor Laufenburger: Or planned. Paul Oehme: Or planned, future plans, thank you. To install any utilities. The City does not have any need for this easement so what we’re proposing is to vacate it so basically just get rid of it. It’s on, Carver County has this recorded at their offices so it would just be vacated so we don’t, the City would have no rights or issues. Future use of this area so. Robert Rabe: So the easement right now belongs to? Mayor Laufenburger: The property belongs to the property owners. Paul Oehme: But we have the underlying right to put utilities or maintain that area so. Robert Rabe: And so when it’s vacated then? Paul Oehme: Then it goes away. We don’t have any rights to go on that property for or utilize that. Robert Rabe: So the property owner has all the rights? Paul Oehme: That’s correct. Mayor Laufenburger: So originally the easement is a, it’s a request the City makes to potentially use that property at some point in the future and we are now saying that we have not needed nor do we have any plans to need it so therefore this easement is essentially erased and full property rights go to the property owner. Robert Rabe: Okay, and that’s because the developer requested it I guess. Paul Oehme: Yeah the developer or the property owner that currently owns I think Lot 2. Robert Rabe: Okay. Can you show a little more detail of where is the intersecting road there? I think I. Paul Oehme: I don’t have a good map but yeah, it’s farther north is. Mayor Laufenburger: Are you saying where Bretton Way comes in Mr. Rabe? Robert Rabe: What’s that? 41 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: Are you asking where Bretton Way comes in? Robert Rabe: Yep. Todd Gerhardt: Bretton Way is north of Lot 1. So you see Teton Lane where the tip of the yellow is. If you keep going north probably another 75 feet you’ll be at the intersection or the curb line of the south side of Bretton Way. Because Lot 1 abuts Bretton Way. Right where vacation sits. Paul Oehme: Yeah so Lot 1 is right at the corner of Bretton Way and Teton Lane. Robert Rabe: Okay. So then only one more question I think is, how does it affect drainage, if any? Paul Oehme: It doesn’t affect drainage. Since there’s no utilities out here it doesn’t affect anything dealing with drainage at this time. Robert Rabe: So there’s not a storm sewer? Paul Oehme: Nope, there’s nothing out here. There’s no storm sewer out here. It was platted. It was dedicated with the Curry Farms development which I think was in the 80’s so there’s no use for it since it was replatted. The drainage had all been taken care of with the replat. Robert Rabe: So unused. Paul Oehme: It’s unused, yeah. There’s no need for it anymore. Robert Rabe: Okay. Todd Gerhardt: I think Lot 1 and 2 were recreated several years ago. Remember the new house that sits at the corner of Bretton and this is an old drainage and utility easement that existed before they created what is Lots 1 and 2. Robert Rabe: Okay. So it’s the Burdick home, property I think. Okay. So it really has no ramifications on any property nearby? Paul Oehme: No it just, we need to vacate this drainage utility easement for the new house I think on Lot 2 to go in just because we can’t build a lot, a structure, a building, a house over an easement. Robert Rabe: Yep, okay. 42 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: So the City has no longer any need for that so we are essentially giving it back. We’re releasing or erasing that need. Giving it back to the property owner. Robert Rabe: Okay. Mayor Laufenburger: And by statute there are official things that we need to do including offer a public hearing and take action as a council. Robert Rabe: Okay. Mayor Laufenburger: Alright? Robert Rabe: Thank you. Mayor Laufenburger: Thank you Mr. Rabe. Is there anyone else in the chambers this evening that would like to speak to this resolution 2017-64? Alright, there being none I will close the public hearing at this time and bring it back to council for any questions, comment or action. Councilwoman Ryan: Mr. Mayor I’ll make a motion. Mayor Laufenburger: Thank you Councilmember Ryan, go ahead. Councilwoman Ryan: I propose that the City Council adopts a resolution approving the vacation nd of all the public drainage and utility easements dedicated on the recorded plat of Curry Farms 2 Addition that lie within Lots 2 and 3, Block 1, Redstone Ridge as described in Exhibit A. Mayor Laufenburger: We have a valid motion. Is there a second? Councilman Campion: Second. Mayor Laufenburger: Thank you Mr. Campion. Any further discussion on the proposed motion? The vacating of drainage and utility easements in Redstone Ridge. Resolution #2017-63: Councilwoman Ryan moved, Councilman Campion seconded that the City Council adopts a resolution approving the vacation of all the public drainage and nd utility easements dedicated on the recorded plat of Curry Farms 2 Addition that lie within Lots 2 and 3, Block 1, Redstone Ridge as described in Exhibit A. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: Thank you Mr. Oehme and thank you Mr. Rabe for speaking. 43 Chanhassen City Council – September 25, 2017 CERTIFY PRELIMINARY 2018 LEVY TO CARVER COUNTY AUDITOR. Mayor Laufenburger: This is our obligation to certify the preliminary levy to the Carver County Auditor. Mr. Sticha is this your’s tonight? Staff report please. Greg Sticha: Good evening Mayor and council. This is the time of the year when City Council adopts a preliminary levy that is to be certified to Carver County Auditor’s Office. That preliminary levy is then used with all jurisdictional levies to create the Truth in Taxation notices that the County will be sending out in early November which provides the public information on the proposed preliminary property taxes as well as their opportunity to speak at public hearings later in early December. So what I’m first going to do is kind of go through the budget calendar and then I’ll get into some of the specifics on this year’s budget and preliminary levy discussion. This evening we’ll be setting the preliminary levy. Prior to this evening the City Council has had already numerous work sessions discussing the budget and the levy for upcoming year 2018 for th taxes payable in 2018. On October 9 the City Council reviewed the 2018 to 2022 CIP. On th November 13 the City Council in work session will be discussing with the City’s Financial Advisor, Ehlers and Associates the annual utility rate study along with reviewing the enterprise th and special revenue fund budgets which do not include a property tax. On November 27 we are leaving open for additional discussion on any remaining budgets, CIP and utility rate items. On th December 4 will be the public budget meeting that I described just a minute ago. That will be th listed on the Truth in Taxation statements. The City meeting will be on December 4 at 7:00 th p.m. here in City Council chambers. And then on December 11 the City Council will have to set a final 2018 tax levy and budget, adopt a CIP and set the utility rates for 2018. So when putting together this year’s budget there are certain numbers and assumptions that are used when putting together the budget each year. One of them is new construction. The amount of new growth. The actual new growth the City’s experienced within the past year and for taxes payable in 2018 that was 1.1 percent. That amounts to roughly $118,000 in new property tax dollars that would be available to the City that was not available in the previous year. Staff is planning for and have been notified of an increase in the police contract of roughly 5 percent which is just shy of $90,000 for 2018. That includes not only personnel. It includes equipment, fuel, a number of items other than just personnel costs. If you’ll recall the City Council has been updated by staff on the potential increase for health care costs. We have gotten a definitive answer from our insurance broker. That amount’s going to be just shy of 15 percent for 2017 and I believe we’re going to be locking in at an amount not to exceed for a health care contract in 2019. We’re finalizing the number of that second year as we speak this week so that was good news. The original budget we had planned for an increase of approximately 20 percent. That was based on what our health care insurance broke was telling us so it came in lower than what we had initially budgeted. That amounts to about $30,000 in savings as compared to what we had been discussing in previous budget work meetings so that was very good news. Building permit revenue, we are budgeting the same as the previous year for 2017. We had one debt levy that was refinanced a year ago. It results in the reduction of the levy for the public works building. That amount will go down by roughly $117,000 per year starting in 2018. And we included a 3 percent increase in salaries for market adjustments, cost of living and merit pay within the budget 44 Chanhassen City Council – September 25, 2017 for city employees for 2018. Initially when we were discussing some of the budget numbers in August and really to September scenario 1 was the recommendation by staff. In large part because we had been planning on health care increased of 20 percent. We’ve now received health increase care cost increases of 15 percent so we were able to lower the budget by the $30,000 I had just mentioned. Scenario still could be considered by City Council if they wish to add a new service or fund some particular service with the $30,000 in savings we recognized from the health care contract. If council did decide to do that that would result in roughly a $2 to $4 increase in the average home on their property tax bill. Again the average home in Chanhassen is roughly $350,000 to $400,000. For taxes payable in 2018 the average market value increase of homes in the City of Chanhassen was just over 4 percent so assuming your home was, had an increase in it’s taxable market value of 4 percent and you’re roughly a home of value in that $350,000 to $400,000 range you would see a $2 to $4 increase in your city portion of your property taxes. Scenario 2 which is now staff’s recommendation for setting a preliminary levy is exactly new growth. $118,000 larger than the previous year’s levy which is the 1.1 percent of new growth that we talked about earlier. This scenario keeps all service levels the same as previous years and there would be no change in the city portion of your property tax bill on the average home and the TnT statements that come out in November should reflect that. Another alternative scenario that the City Council could consider would be a levy of $10,863,868. This is $68,000, it’s a $68,000 increase. Roughly $50,000 less than new growth. This scenario however would require either a reduction in expenditures of the $50,000 or an increase in budgeted revenues of $50,000. A reduction in expenditures of $50,000 would have the potential for not all service levels remaining the same so there would be that budgetary impact if council decided to go with scenario 3. The impact on a property tax statement would be roughly a $5 to $6, maybe $7 decrease in their city portion of their property tax bill on the average home if the City Council decided to go with that levy. So as we do every year we take a look at how we compare to other communities in terms of our expenditures and our tax rate so taking a look at our budgeted expenditures for our KFS cities, you can see that our budgeted expenditures for 2017 which is this year. We obviously don’t have data for people’s, cities proposed budgets for 2018 just yet. The City of Chanhassen saw a 2.5 percent increase from the previous year. The average was a 4.3 percent increase in the average general fund budget of all our KFS cities is $14.9 million and our’s is $11.2. Very comparable. Again our budgeted expenditures tend to stay relatively consistent from year to year. You’ll notice some communities on here where you’re seeing larger increases and then some where the increases are near zero. Typically the trend for some of those communities is to one year have an increase in expenditures of zero and then within a year or two they sometimes follow it up with a 7 or 8 percent increase in their budgeted expenditures. It’s been council’s approach and it’s staff’s approach to keep the change in expenditures from year to year relatively consistent and try to avoid those larger fluctuations from year to year. So how do we compare in per capita spending? General fund per capita spending compared to our KFS cities, we’re the lowest. The average is about $540 per person and like I said we come in at the lowest with $447 per person in general fund per capita spending. Taking a look at our tax rates. First of all how we compare to other cities in Carver County. We are the lowest tax rate in Carver County by roughly 4 points. Four percentage points. The next closest being Chaska. The average in the county is 60 and again 45 Chanhassen City Council – September 25, 2017 our’s is 23.855. Comparing ourselves within Hennepin County to much larger cities in some instances and to some cities around our size. I tried to keep the communities listed here for the most part closer to our size. Could be a little bit challenging in Hennepin County. Bigger county. Bigger populations. The average of these cities within Hennepin County is 43.411 and Chanhassen has of these cities the third lowest at 23.855. I don’t know if any other cities in Hennepin County that are lower than Wayzata and Medina that have a similar population size. I can say last year we were second on this list. Wayzata jumped us in large part because our market value last year only increased by 1 percent and Wayzata’s increased significantly more than that. Their taxable market value that is so that’s one of the factors when the tax rate is calculated is what your taxable market value is doing as well so these items can change from year to year even if you were to set the same levy as the previous year. So with that staff recommends setting a preliminary levy using Scenario 2 which is new growth. Setting the levy at Scenario 2 gives us the most flexibility and planning before setting a final levy in December. As a reminder to those at home and that might be present this evening, and the City Council is aware of this but setting the preliminary levy is the number not to exceed before setting a final levy so you cannot go larger than this number when you set your final levy but you could go lower than this number when you set your final levy in December. One additional item within the resolution is identifying and targeting a Truth in Taxation hearing date which is identified in th the resolution as December 4. That’s all I had and I’ll take any questions or comments. Mayor Laufenburger: Thank you Mr. Sticha. Any questions from council of Mr. Sticha? I have one Mr. Sticha. We’ve seen an increase in the police contract for a number of, well I don’t know if it’s every year but what’s the basis for that increase Mr. Sticha, do you know? Or Mr. Gerhardt. Greg Sticha: Mr. Gerhardt might be better. Todd Gerhardt: Mayor, council, similar to the City of Chanhassen you have health benefit increases, salary increases to deal with so every officer sees that benefit. There’s also some additional costs for automobiles, gasoline, miscellaneous items but we have the 15 officers as a part of that but there’s also administrative costs embedded in the formula which includes the sheriff, the deputies, so it’s more than just the 15 officers. Mayor Laufenburger: Mr. Gerhardt do you know is Chanhassen subject to the same calculation that each of the other 10 communities in Carver County are subjected to? Do you have any idea about that? Todd Gerhardt: Yes we are. Mayor Laufenburger: Okay, so it’s based on the services that we require. New Germany uses less than we do so the percentage may be the same but obviously the percentage. Todd Gerhardt: Depending on how many officers you have. 46 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: Okay, alright. Okay. Alright, is there any further discussion or recommended action at this time? Council. Councilman McDonald: Mr. Mayor, you looking for a motion? Mayor Laufenburger: I’m looking for any action that you’d like to suggest Mr. McDonald. A motion is one of those, yes. Councilman McDonald: Okay, then I would propose the following motion. The City Council approves Resolution 2017-64 adopting the preliminary levy of $10,913,868 for 2018 and establishing a Truth in Taxation hearing date for 2017 as December 4, 2017 for taxes collected in 2018. Mayor Laufenburger: Very well, we have a valid motion. Is there a second? Councilman Campion: Second. Mayor Laufenburger: Thank you Mr. Campion. Any further discussion? Councilwoman Ryan: Mr. Mayor? Mayor Laufenburger: Councilmember Ryan. Councilwoman Ryan: Just quick comment. I know when we talk about that we have to in order to lower the levy we have to have a significant reduction in service level and I know you had sent us the professional services account but I just challenge you and I’ll work with you. I’d like to review some of our contractual agreements, specifically some of the consultant fees that we use throughout the year. If we could just tighten those up and get a better understanding of those before the final. Mayor Laufenburger: Okay. Mr. Sticha you accept that? Greg Sticha: As always we’ll, we’re welcome to meeting with you on any of those contractual service items and we can go over any of those line items you’d like to. And we do constantly review all of our professional services for fair pricing and I know at least I can speak for my department, we only look to contract out what we absolutely have to. Councilwoman Ryan: Right. I just had a hard time when you sent that email finding some of the consulting fees so maybe that’s working through it with you. Just in the documents I couldn’t find the specific consulting fees so I’d just like to work with you on that. Greg Sticha: We can review those, yes. 47 Chanhassen City Council – September 25, 2017 Councilwoman Ryan: Thank you. Mayor Laufenburger: And Mr. Sticha just a reminder for council and also for citizens, this th preliminary levy is required by legislature to be completed before September 30 so this is the th last meeting we have before September 30. We report this to the County but as you pointed out th in your schedule we have a number of opportunities between now and December 11 to review things like what Councilmember Ryan has asked for or other things if the council would like to raise that could potentially lower that levy. Greg Sticha: That is correct. Mayor Laufenburger: Okay, alright. Okay. Any further comments or questions? Alright. Resolution #2017-64: Councilman McDonald moved, Councilman Campion seconded that the City Council approves Resolution 2017-64 adopting the Preliminary Levy of $10,913,868 for 2018 and Establishing the Truth-in-Taxation Hearing Date for 2017 as December 4, 2017 for Taxes Collectible in 2018. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: Thank you Mr. Sticha. That concludes our business portion of the agenda this evening. COUNCIL PRESENTATIONS. None. ADMINISTRATIVE PRESENTATIONS. Mayor Laufenburger: How about you Mr. Gerhardt? Anything administrative presentations? Todd Gerhardt: I’ve got two items to update the council on. Staff has negotiated an agreement with Carver County to do a shared cost study for the upgrade of Galpin Boulevard north of Highway 5. So it’s a scoping study to see what it would take to upgrade Galpin to meet all the future growth needs that may occur along that corridor and bring it up to an urban section. That study Paul should be completed? Paul Oehme: I think it’s May of 2018. nd Todd Gerhardt: Okay. And then this coming Monday, October 2 there’s going to be some maintenance on the 101 new river crossing bridge. They’re going to do some inspections on the bridge so it will be down to one lane in each direction for about a week so if you see some construction activity or some narrowing of the lanes down to one lane, that’s what’s going on on the new river bridge crossing between Shakopee and Chanhassen. 48 Chanhassen City Council – September 25, 2017 Mayor Laufenburger: Mr. Gerhardt regarding that, is there any greater details regarding how long that will be in place? Todd Gerhardt: I believe it’s a one week period. Mayor Laufenburger: Okay. I’m wondering if there’s further, if somebody wanted to gain further details about that and if they wanted to perhaps write about it in the Villager, who might that person contact? Todd Gerhardt: They can contact the Carver County Public Works Department. Mayor Laufenburger: Okay, alrighty. Okay so the public works department would have information about that. Todd Gerhardt: And I think there might be some preliminary signage out there. I haven’t been through that area. Mayor Laufenburger: Okay, so this begins next Monday? Todd Gerhardt: Correct. Mayor Laufenburger: Okay. And so they’re not closing the 101 bridge. They’re just reducing it to single lanes is that right? Is that correct Mr. Oehme? Is that what you heard? Paul Oehme: That’s correct. Mayor Laufenburger: Okay, alright. Any other administrative presentations? Todd Gerhardt: That’s all I have for this evening. Mayor Laufenburger: Thank you Mr. Gerhardt. CORRESPONDENCE DISCUSSION. Mayor Laufenburger: Any comment on the correspondence? Councilwoman Ryan: I have a quick question. I know you sent an email but could you just reiterate the Powers reopening. I know it’s caused a lot of concern for people not being able to, I know it’s not a Chanhassen project but accessing into Chanhassen. Mayor Laufenburger: No, no, but it affects Chanhassen people and it’s Powers Boulevard is closed so you can’t go into Excelsior. 49 Chanhassen City Council – September 25, 2017 Councilwoman Ryan: Correct. Mayor Laufenburger: Across the Highway 7 bridge right? Councilwoman Ryan: Right. Paul Oehme: Correct. Mayor Laufenburger: So what can you tell us Mr. Oehme? Paul Oehme: So just a quick update council members. Excelsior is upgrading some of the utilities along Mill Street and that has impacted the access on Powers and going north into Excelsior so the contractor is a little bit delayed with his work on that project. It’s, they’re installing watermain and they’ve come into some problems with the processes that they’re using th out there so talking to the Engineer in Excelsior it sounds like October 13 is the best date we have when Mill Street would be re-opened so I’ll keep you posted if that date is moved up at all but that’s the best date that I have right now when that road would be re-opened. Councilwoman Ryan: Alright, thank you. Todd Gerhardt: Small utilities and rain. Mayor Laufenburger: Anything else council? Councilman McDonald moved, Councilwoman Tjornhom 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 9:15 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim 50