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04-25-2022 City Council Work Session MinutesCHANHASSEN CITY COUNCIL WORK SESSION MINUTES APRIL 25, 2022 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Rehm, Councilman McDonald, Councilman Campion, and Councilwoman Schubert. COUNCIL MEMBERS ABSENT: None STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Kate Aanenson, Community Development Director; Charlie Howley, City Engineer/Public Works Director; Kelly Strey, Finance Director; Jerry Ruegemer, Park & Recreation Director; Ari Lyksett, Communications Manager; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: None. Mayor Ryan welcomed Council and Staff to the Work Session. ROUNDTABLE Mayor Ryan asked if there are any past or new items the Council would like to discuss. Councilmember Schubert referenced short-term rentals that was discussed during the last roundtable. City Manager Hokkanen reminded Council that this item was scheduled for discussion at the May 9, 2022 City Council Work Session. Wakeboat Restrictions on Lotus Lake: Coucilmember Rehm brought up the issue of restricting wakeboats on Lotus Lake to reduce shoreline erosion. Mayor Ryan provided an overview of the history and background on this topic as well as two recent Citizen Action Request on this topic. Councilmember Campion is not in favor of imposing restrictions unless the Department of Natural Resources (DNR) provides specific documentation. Councilmember McDonald also does not want to impose wakeboard restrictions on Lotus Lake as there is no evidence at this point that anything is happening to the lake. Councilmember Schubert also opposes wakeboard restrictions on Lotus Lake unless the DNR evaluation suggests otherwise. Mayor Ryan agrees and wants to wait for DNR evaluation results. In addition, staff is directed to notify the two residents that have requested the restrictions on Lotus Lake regarding the Council’s decision to not move forward with their requests. Councilmember Rehm asked if the Watershed District was involved in review of this process. Hokkanen thought the Watershed District would be monitoring the health and wellness of Lotus Lake but not necessarily whether or not the City should be restricting boats. City Engineer Howley stated that there is internal debate within the watershed community regarding wave impacts on the shoreline and confirmed that the Watershed District is aware of the situation. Rehm also brought up that she has received requests from residents with kayaks and canoes asking if there would be days or times set aside City Council Work Session Minutes – April 25, 2022 2 for them. Mayor Ryan again reviewed the Council’s history on the topic and that they chose not to regulate when people could kayak and boat. Request for Signage at Lotus Lake Public Access: Mayor Ryan also brought up another request from resident Paul Granos requesting additional signage at the public access on Lotus Lake about boating safely and safe wakes. He stated that the Lake Association was willing to pay for the signs if the City gave permission. Hokkanen reported that the first sign would say “Wake Responsibly” and there would be additional signs along the drive referencing distance markers. The cost of the signs and installation would be $2,000 and the Lake Association would like the City to pay for them but if not, the Lotus Lake Conservation Alliance (LLCA) would fund them. Councilmember McDonald asked where the reference distrance marker signs would be placed? Hokkanen replied they would be placed along the approach to the public access. Councilmember Campion was inclined to allow the signs and let the LLCA pay for them but would like to see uniformity. He also questioned if the signage should be installed at all public access locations within the City, and what are other communities doing? He would like to wait for the presentation. Councilmember McDonald is against it because it is a private group requesting the signage and not based on DNR recommendations. Councilmember Rehm agreed with Councilmember McDonald and that it does raise concerns if other private groups want to install signage. Councilmember Schubert would like to hear Mr. Granos’ presentation and supports the idea of distance markers; however, doesn’t think the City should pay for it. Mayor Ryan asked if the Aquatic Invasive Species (AIS) signage currently installed at all public access locations in the City was initiated by the DNR. Should direction for this signage request come from the State? It would be interesting to obtain background information on the AIS signage. She would also like to wait for Mr. Granos’ presentation. Goose Population Reduction on Lotus Lake: City Manager Hokkanen read Mr. Granos’ request asking the City to endorse the LLCA’s efforts to acquire a permit to control the Canadian goose population on Lotus Lake to reduce geese feces that accumulate on docks, rafts, lawns and beaches. The LLCA needs the City’s approval before moving forward. The City’s Water Resources Engineer is working with the DNR and has learned that the LLCA would need to develop a goose management plan and receive a resolution of support from the City through a public review process. The DNR said that it is likely the conditions on Lotus Lake do not meet the threshold for this; however, the LLCA can do an egg and nest management practice without a plan or a permit. Wildlife management requests historically tend to be contentious. Mayor Ryan asked Council if they should wait for Mr. Granos’ presentation or choose not to move forward with the request based on the information received from the DNR. Councilmember Schubert asked about lake quality and if it is a public health concern or just a nuisance issue. Hokkanen stated that we haven’t experienced a public health concern on Lotus Lake. Park & Recreation Director Ruegemer said the City tests the lakes weekly during the summer. Councilmember Schubert requested that the public be notified of the weekly testing. Ruegemer was cautious about posting the actual test results because they are difficult to interpret. Councilmember Rehm asked what ‘reduction’ means. Is is capturing and moving the geese to a different location or does it mean something else? She is open to hearing what Mr. Granos has to say. Community Development Director Aanenson added that lakescaping is the best practice. Councilmember Campion would listen but leans against it and it would have to be a continuous process to be City Council Work Session Minutes – April 25, 2022 3 effective. Councilmember McDonald believes everybody should be given their process rights and would like to hear from Mr. Granos. Councilmember Campion asked for an update on the Avienda project. Hokkanen states it sounds like things are going well but there are no real announcements. We have learned that most of the housing projects and partners have been identified but the City has not received any updates. Howley stated they are progressing with the hopes of building the road this year. Councilmember Schubert asked about an Xcel Energy project. Hokkanen said that Xcel Energy purchased the Liv Horneland property located on the south side of Highway 5. They have not yet made any development application to the City. AMERICAN RESCUE PLAN ACT (ARPA) DISCUSSION Finance Director Kelly Strey reviewed the ARPA final rule effective April 1, 2022. Chanhassen now qualifies for a standard $10M allowance for lost revenue which provides for a broad authority to spend on regular government, and streamlines the reporting requirements. ARPA grant commitments already made in the 2022 budget include support for improving fire response and support for improving economic development initiatives totaling $295,000. This leaves $2.59M available for other uses. Staff suggestions include continued support of 2023 funding for improving fire response and economic development activities. Other options include one-time capital improvements for the Lake Ann Park Trail and facility improvements of City Hall or other facilities. The City can’t fund pensions or reduce taxes. Hokkanen is asking Council to provide direction on the $2.59M. The funds need to be committed by 2024. Mayor Ryan asked about using the funds for water and sewer infrastructure. Hokkanen said staff would make sure to communicate to the public what the money is being used for. Councilmember Campion asked which category the Lake Ann Trail project would fall under. Strey confirmed that these funds would cover a capital park project under the lost revenue category. Councilmember Schubert asked about future Fire or Sheriff’s Department cost increases or Fire Department capital projects that could be funded. Hokkanen replied that a fire truck is scheduled to be purchased in 2026 which is beyond the scope of the funding timeline. Strey mentioned deferred maintenance to the Fire Department building as outlined in the Facilities Study. Howley said there are enhancements and improvements that could be made to the Fire Department facility in the short term. Mayor Ryan asked about Lake Ann Park Trail costs. Ruegemer quoted 2019 figures but he will be getting 2022 numbers from the consultant in time for the Park Referendum Task Force meeting next week. Councilmember Rehm asked about waiving park program fees for residents in need or increasing pay for summer playground employees. Ruegemer commented that there are revenues up to $100K to subsidize Summer Playground and Lake Ann Adventure Camp fees. Ruegemer also mentioned about summer staff and that we are attracting more candidates due to pay increases included in the 2022 budget. Mayor Ryan asked if scholarships were available. Ruegemer sai that there is a scholarship plan in place but there doesn’t seem to be a lot of need in Chanhassen for free programming. Also, there has not been a lot of pushback with our fee structure and we do survey comparable cities. Mayor Ryan asked about the park replacement plan – how many parks are left before we are caught up and have to start the next round of replacements. Ruegemer said we are in a continual replace/remodel mode. The Park System Plan contains the details of the program. Could ARPA funds be applied to park replacements? City Council Work Session Minutes – April 25, 2022 4 Hokkanen replied yes for current needs but not to spread out over several years. Councilmember Rehm asked if the trails are in need of repair? Ruegemer referenced the Pavement Management Program and that trails are ranked according to their condition. Mayor Ryan asked where Council stands on support of improving fire response and economic development? Council was in agreement. Is a capital initiative something Council is interested in and is there an area they would like to focus on? If not parks, facilities? Councilmember Campion would like to focus on parks as it is a tangible product for the public. Councilmember Schubert likes the idea of capital improvements to augment park replacement and trails but doesn’t want to discount Fire Department needs. Councilmember McDonald would rather see the money go to parks or purchasing other needed equipment. Councilmember Rehm is in favor of trail improvements and park udpates. Mayor Ryan agrees that parks and trails are tangible to the community and should be a priority. The Fire Department is a City service and should be included in the levy. Mayor Ryan requested staff look into ideas for parks and trails and how the funds could be applied. Councilmember Rehm asked if there would be money left over to fund the Lake Ann Park Trail project. Hokkanen said she would ask staff to provide preliminary cost estimates for these requests. Mayor Ryan asked about the approval process once the projects have been identified. Hokkanen said once the projects are identified Council would approve them in the usual manner. Howley suggested it might be good to know if the money should be used to fill trail gaps or repair existing trails. Ruegemer said there are a lot of both that could be considered. Councilmember McDonald asked for a list of gaps and repairs. Hokkanen said yes and that staff will give their best estimates. Councilmember Schubert asked about trail crossing safety feature projects. Councilmember Rehm mentioned other amenities such as permanent restrooms, drinking fountains and dog trash bags. Strey stated the takeaway that many of the things being discussed are part of the long-term plan and this is not our only pot of money. Mayor Ryan asked Howley about the federal infrastructure bill and broadband initiatives coming to the City. Howley replied that information is not yet available. He has attended a number of question and answer sessions and work is being done behind the scenes to develop how it will be doled out. From the broadband perspective, one of the main keys would be to the underserved. The money goes directly to public instructure and we don’t have a public broadband infrastructure. At this time it is too early to start estimating projects. Councilmember Campion asked about the status of MetroNet. Hokkanen said there will be rental/lease agreement tentatively scheduled for the May 17 Planning Commission meeting and then to the City Council on May 23 for a hut site which needs to be operational before any work can be done. Mayor Ryan reviewed the Minnewashta Parkway safety updates and what has taken place. Hokkanen will continue to gather feedback regarding boat storage and asked Council to forward resident requests to her to include in the City Council packet. Councilmember Rehm added that Carver County Public Health is in the process of creating Communities of Belonging groups and are looking for community involvement. Additional information can be found at https://www.co.carver.mn.us/departments/health-human- services/public-health/programs/communities-of-belonging. City Council Work Session Minutes – April 25, 2022 5 FUTURE WORK SESSION SCHEDULE 05/09/2022: Fire Department/Public Safety Staffing Update/Park Referendum Update, Short- Term, Rental, and Business Licensing 05/23/2022: Southern Chanhassen and Lower Bluff Development Planning The meeting adjourned at 6:44 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk