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05-23-2022 City Council Work Session MinutesCHANHASSEN CITY COUNCIL WORK SESSION MINUTES MAY 23, 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; Don Johnson, Fire Chief; Jerry Ruegemer, Park & Recreation Director; Rick Rice, IT Manager; Ari Lyksett, Communications Manager; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: None. PARK REFERENDUM TASK FORCE UPDATE City Manager Laurie Hokkanen and Park & Recreation Director Jerry Ruegemer provided an overview of the PowerPoint that was presented to the Referendum Task Force at their last meeting which reviewed financial impacts. Information was shared on how property tax dollars were distributed ($.20 of each dollar goes to the City), the 2022 tax amount on a $400,000 home with comparable cities, tax rates in larger cities, 2022 general fund budget expenditures, how park operating money is spent, assessed values, tax rate calculation, estimated impact of projected 2023 levy, breakdown of who pays Chanhassen taxes, Park and Recreation priorities, and estimated impact of a 20-year bond issue. Another approach would be a local option sales tax which needs to be authorized by the state legislature and then to put on a referendum by voters. The Task Force is putting together a package at a cost of about $40M. Ruegemer provided an update of what priorities the Task Force was considering. Top priorities were discussed as follows: • Lake Ann Park Preserve completion • Community Center including year round indoor/outdoor activities o Indoor Park o Indoor Walking Track o Additional Gym Space o Indoor Ice Area • Bandimere Park Expansion including picnic shelter, restrooms, athletic lighting, sport court, artificial turf/multipurpose o Splash Pad o Sport Court o Picnic Shelter • Nature Play City Council Work Session Minutes – May 23, 2022 2 • Covered Ice Rink • Permanent Bathrooms at Community Parks • Athletic Turf for Soccer • Athletic Field Lighting for Soccer and Baseball • Inclusive Playground • Challenge Course • Trail Gaps Councilman Campion asked for a definition of a “challenge course.” Hokkanen replied that a challenge course is defined as a series of activities, sometimes on or close to the ground (usually referred to as a low ropes course) and sometimes built on utility poles or trees, or in the rafters of a building (a high ropes course). It is comparable to a Ninja Warrior setup. Hokkanen added that the Task Force preferred to focus on upgrading Lake Ann and Bandimere Parks since they are the most popular parks in the City. Ruegemer also reported that the Task Force was considering improvements to the Rec Center, including an addition as outlined in the Facilities Study, one gym, expanded lockers and restrooms and a multipurpose room, include a walking track, covered outdoor ice or indoor ice, and athletic field lighting. The Task Force was also interested in completing trail gaps at various locations throughout the City. Hokkanen asked for feedback from the Council to give to the Task Force as the ballot language needs to be prepared by the end of June. Councilman Campion and Councilwoman Rehm asked for clarification of costs. Councilman McDonald would like to see the annual operating cost for the Rec Center which would be a part of the City’s annual budget. Hokkanen replied that the Task Force was also interested in that and the generic understanding is that if it is well managed, operating costs would break even with revenue. Councilwoman Schubert observed that operating costs would probably decrease if grass was replaced with turf. Mayor Ryan would like to incorporate other components in the Lake Ann Park Preserve project such as nature play or something unique that would draw visitors to the park. Hokkanen commented that nature play has been a popular topic of discussion with the Task Force. Councilwoman Rehm suggested adding a labyrinth. Councilwoman Schubert asked about lighting at Bandimere Park soccer fields adjacent to the houses on the north end of the park. Ruegemer responded that the new LED lighting available produces less spillage or light overflow and are much cheaper to operate. Councilwoman Rehm asked about incorporating a swing set component. Ruegemer responded that could be incorporated in the City Hall park area and in other areas of the park system as well. Councilwoman Rehm asked about the status of the skate park. Ruegemer said that the skate park will be determined once the Facilities Study is complete. Hokkanen said the Task Force brainstormed about what could be done about how we communicate it to the public. Mayor Ryan asked about timing of the final decision. Ruegemer stated at the next Task Force meeting they will drill down and categorize projects and uses and respond to the Council by the end of June or first part of July. Mayor Ryan thought a big component should be to communicate generational benefits. Ruegemer said the Task Force is aware of that and would like to offer something for everybody. Councilwoman Rehm also expressed concern about different generations and providing for all of their needs. She also asked how the Task Force came up with the $40M figure. Hokkanen said the Task Force considered fiscal responsibility and determined that they could justify this amount as opposed to higher amounts. All Task Force meetings are posted as open meetings and the public and Council are welcome to attend. City Council Work Session Minutes – May 23, 2022 3 AMERICAN RESCUE PLAN ACT (ARPA) DISCUSSION Hokkanen reviewed the discussion from the last meeting about coming back to the City Council with a list and recommendations for them to sort through; however, there are so many open questions right now regarding long-term projects. Although she does have a list of projects with recommendations for ARPA funding, there needs to be a better understanding of what is going to happen with City Hall in the future before recommending making investments in City Hall or the fire stations, and a referendum is also likely to occur. Picking and choosing park projects to invest ARPA funds in at this time might not make as much sense and might make the referendum a harder sell to the public. Staff’s recommendation would be to not allocate all of the ARPA funds now and come back to the lists in November, and provide recommendations for projects. Proposed Public Works Projects for ARPA Funding • Security fence and vehicular gate for the Public Works facility - $235,000 • Forestry Management Plan – Emerald Ash Borer Management • City Hall interim internal remodels - $240,000 • Powers Lift Station (recommended project) City Engineer/Public Works Director Charles Howley presented a slide showing the location of the proposed Powers Lift Station which would allow for development. Existing sanitary sewer was already installed with the Highway 212 project but was not connected. Installation of the lift station would allow raw land to become immediately developable as well as provide sanitary sewer service to nearby large-lot subdivisions if and when they would need it (existing well and septic properties). The City could take it on as a capital project to construct it and then set up a sewer district for the future developments to pay into. Ultimately, development would pay for the cost of installation. Spending the money now will spur future development. We could also do it with assessments and defer the assessments. There are a number of ways to fund it. An easement or grant of property would be required to install the lift station. This project has been in the CIP for many years and has been accounted for in the City’s Utility Rate Study. The initial installation could be paid for with ARPA funds. Mayor Ryan asked about the future of sanitary sewer in the Highway 61 area. Howley commented that sanitary lines were installed with the TH 101 project but we would need to put a sewer line through the golf course property before the lines can be used. An easement would have to be provided by the golf course. The Highway 61 area cannot develop with sanitary sewer until the Powers Lift Station is complete. Councilwoman Schubert asked about other lift station service areas and who pays for them? Howley responded that typically if a lift station is required for a development, it is only needed for that development and the developer builds and pays for it. If the proposed lift station will serve areas beyond a specific development, the City will have to share the costs with the developer which the City will eventually get back. This is called oversizing. Councilman Campion questioned how we can be sure the golf course is planning to develop soon. Community Development Director Kate Aanenson responded that she and Howley met with the owners of the Moon Valley site located on Highway 61, and were told that the golf course would be amenable to installing a sewer line through their property in order for the Moon Valley site to get sewer service. Howley said a sewer line could be installed through the golf course by directional boring. Hokkanen stated that the golf course property is our next development area City Council Work Session Minutes – May 23, 2022 4 following the TH 101 project and Avienda. Howley said it doesn’t hurt to ask the property owners if we can put a sewer line through the golf course. Hokkanen reviewed that moving forward with the lift station is our next step. Howley referenced the Comprehensive Plan and do we wait or be more proactive. Councilwoman Schubert asked if the City was aware of when Tim Erhart is planning to develop his property. Howley has not heard anything through Engineering. Aanenson added that Mr. Erhart requested a higher density for his property during the Comprehensive Plan process. Mayor Ryan asked if there was an opportunity to have a conversation with the golf course and move forward if they react positively. If not, she would rather the ARPA funds be spent elsewhere. Campion asked if there was any drawback to talking to the golf course? Aanenson said there have been conversations with the golf course in the past. Hokkanen reviewed Fire Department Projects including moving fire administration staff to Fire Station 1 which would create much-needed space at City Hall, replace a set of rescue tools, remodel the lower level training room, and replace Engine 21. Hokkanen also reviewed park and playground projects. Council had expressed interest in getting caught up with playground replacements. The City is not currently behind in playground replacements; however, it is a year-to-year decision on how to fund these improvements. The estimated playground life span is 25 years. Hokkanen asked the Council for direction on how to proceed with the ARPA funding. Councilwoman Schubert would like more information on discussions between Bluff Creek Golf Course and the City and what the Referendum Task Force comes up with. Mayor Ryan referenced an anonymous text from a resident with concerns that the economy is going to fail and that the City should reserve the ARPA funds to offset costs. Hokkanen stated the City cannot use ARPA funds to delay or offset a planned increase. Hokkanen cautioned the Council that this was one-time money. CITIZEN ACTION REQUEST RESPONSES Hokkanen reviewed the two citizen action requests from Paul Granos on behalf of the Lotus Lake Conservation Alliance (LLCA): Lotus Lake boat launch signage/pavement markings and goose management. Following Mr. Granos’ presentation of these requests at the May 9 City Council meeting, staff feels we could paint the boat launch area pavement at a fairly low cost but prefers not to add more signage due to maintenance costs. Councilman McDonald asked if the public would be able to determine distance on the lake after looking at the pavement markings on shore. Councilman Campion agreed with Councilman McDonald and suggested placing a couple of markers in the lake. Mayor Ryan asked about permission from the DNR about placing buoys. Assistant City Manager Matt Unmacht said the DNR does require permits. Councilwoman Rehm does not want signs but thought the markings might bring attention to the issue. Councilwoman Schubert is indifferent on the topic and doesn’t see an issue with placing the pavement markings and that we could try it this year and see how it goes. Councilwoman Rehm asked if other communities have done this. Hokkanen stated Mr. Granos did not provide any examples from other citties. Howley suggested that the pavement markings might not be noticeable due to the pavement length, or possibly adding a sign to the dock as a reference instead. Ruegemer expressed concerns about placing a sign on the edge of the dock as it may interfere with launching and docking. He suggested that if a sign is desired it should be placed on an existing sign post. Councilman McDonald sees this as hassling people who want to use the lake, that City Council Work Session Minutes – May 23, 2022 5 restriction requests are never ending, and that adding signage and/or pavement markings could escalate the issues. The City should leave it to the DNR to impose these types of restrictions. Councilwoman Rehm asked if Communications could advertise on Social Media. Mayor Ryan is not hearing any complaints from other lakes in the City. Councilman Campion asked if there was any evidence that Lotus Lake is a wake surf destination. Mayor Ryan referenced that tracking was done on Lotus Lake in the past when lake levels were an issue but not since then. City Council consensus was not to get involved. Regarding the request for goose management on Lotus Lake, Hokkanen said staff has assisted the LLCA in connecting with the DNR and that there are some changes that need to be made to the goose management plan before they can consider approving it. The City would also have to hold a public hearing and submit a resolution of support to the DNR. The City Council could hold a public hearing to adopt a resolution of support at the June 13 City Council meeting so that the LLCA can submit their plan and possibly implement it yet this year; however, the public hearing would be held on the basic idea and premise but without the final plan. If Council decides to wait for the final plan, the LLCA will not be able to implement the plan this year. Councilman McDonald asked if these plans exist in Eden Prairie or other cities. Hokkanen replied that the DNR changed their requirements and regulations and these requests are less prevalent now. Councilman Campion was in favor of either waiting for the final plan or doing nothing. Councilwoman Rehm is not in favor of the program. Councilman McDonald would be in favor of waiting for a final plan but prefers not to move forward. Overall, Council consensus is to see a plan before moving ahead with a public hearing. FUTURE WORK SESSION SCHEDULE 06/13/2022: Fire Department/Public Safety Staffing Update; Facilities Study Discussion 06/27/2022: City Council Roundtable; 2023 Preliminary Budget Financial Plan Discussion 08/08/2022: 2023 Budget Overview and Initial CIP Discussion 09/12/2022: Preliminary Levy Discussion 10/24/2022: General Fund & Property Supported Funds Discussion 11/14/2022: CIP, Debt & Utility Rate Study Discussion The work session adjourned at 6:58 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk