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08-08-2022 City Council Work Session MinutesCHANHASSEN CITY COUNCIL WORK SESSION MINUTES AUGUST 8, 2022 COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman Campion, Councilwoman Rehm, and Councilwoman Schubert. COUNCIL MEMBERS ABSENT: Councilman McDonald. STAFF PRESENT: Laurie Hokkanen, City Manager; Charlie Howley, City Engineer/Public Works Director; Erik Henricksen, Project Engineer; George Bender, Assistant City Engineer; Charlie Burke, Operations Manager; Kate Aanenson, Community Development Director; Bob Generous, Senior Planner; Stacy Osen, Engineering Support Specialist; Ari Lyksett, Communications Manager; MacKenzie Young-Walters, Associate Planner; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: None. Mayor Ryan called the Work Session to order at 5:30 p.m. TRAFFIC SAFETY COMMITTEE (TSC) PRESENTATION Project Engineer Erik Henricksen provided an overview of the Traffic Safety Committee (TSC) presentation, including introducing committee members, providing a recap of the past year’s cases, reviewing the crosswalk policy, and answering questions. Meetings are held monthly from 1:30-3:00 pm. Mr. Henricksen provided an annual review of the cases received from August 2021 through July 2022. There were a total of 65 cases, 50 of which were closed after TSC evaluation. The remaining 15 cases are still open because they are either linked to a capital improvement project or pending a policy, i.e. the Crosswalk Policy. The most frequent cases were crosswalks and pedestrians (30%), signage (29%), speeding (26%), and other concerns (15%). Case impacts prompted the development of the City’s first crosswalk policy, promoting the SeeClickFix request function on the City’s website, “Slow Down, Please” educational campaign regarding speeding, signage assessments, and speed trailer deployment. Mr. Henricksen provided a status update of the Crosswalk Policy currently being developed by the TSC. The Crosswalk Policy must provide enhancement to overall safety, establish a consistent and effective methodology for evaluating if improvements are warranted (Local guidelines-MN MUTCD, Federal guidelines-FHWA, sound engineering practice and judgement- studies and industry best practices, and meet the needs and mission of Chanhassen), and establish the appropriate counter measures to install when improvements are warranted (markings and signage, geometric improvements, RRFB, HAWK beacons, grade-separated crossing). The Crosswalk Policy is nearly complete and will be presented for City Council evaluation and approval on an upcoming agenda. City Council Work Session Minutes – August 8, 2022 2 Mayor Ryan thanked the TSC members for being a part of the committee and providing a great presentation, tying it to the City’s strategic priorities. Councilman Campion asked if there was a case where a stop sign was requested and then installed. Mr. Henricksen responded that there have been stop signs requested in order to reduce speed; however, stop signs are not warranted for speed control. The TSC reviews this type of case from all angles and performs an evaluation; however, education is promoted and other options are explored, such as the educational campaign. In summary, the TSC has not installed any stop signs for speed control. Councilman Campion asked about neighborhood requests to install permanent speed limit display signs and who pays for it. Assistant City Engineer George Bender noted that Minnetonka Middle School West installed a speed sign at their entrance on Highway 41. Operations Manager Charlie Burke confirmed that a sign was installed within the road right-of-way in the Longacres neighborhood and was paid for and is maintained by the Homeowners Association. Public Works Director/City Engineer Charlie Howley added that an encroachment agreement is required when any private improvement is installed in public right-of-way. Mr. Burke also referenced the crosswalk at IWCO and Powers Boulevard and that it was privately installed. Mr. Henricksen added that the TSC has not received any requests for these types of private improvements. Councilwoman Rehm asked about educational campaigns in response to requests to lower speed (20 mph) in neighborhoods. Mr. Henricksen responded that neighborhood educational postcard campaigns are recommended for these types of requests. Mr. Howley added that we cannot just lower a speed limit if someone asks as that type of request needs evaluation and formal council approval. Staff needs council direction on any request for speed limit reduction; however, consistency must be maintained. Councilwoman Rehm asked if the postcard campaign helped reduce neighborhood speeds. Mr. Henricksen responded that there was no neighborhood feedback. Mr. Bender added that committee members were not receiving any feedback. There are also residents who do not want speeds reduced but we typically don’t hear from them. When speed studies have been conducted the data returned resoundingly indicates that the speed limit is within the 85th percentile, where typical drivers are driving within the 25-30 mph range. Councilwoman Schubert asked if speed reduction requests were higher from neighborhoods without sidewalks. Mr. Bender mentioned the only neighborhood without sidewalks that he has heard from is Timberwood Estates. Councilwoman Rehm added that 20 mph is pretty slow and is curious if there are any studies on this topic. Mr. Howley responded that there currently are not enough metrics to show any data but should become available within the next five years. Mr. Burke added that Pleasant View Road is the only street in Chanhassen signed at 25 mph but there are still a lot of challenges related to speeding. Mr. Bender added that all states adjoining Minnesota all have 25 mph speed limits. Councilwoman Rehm asked about installing a crosswalk on Kerber Boulevard at the Byerly’s entrance across from the Library. Mr. Henricksen responded that there is an improved intersection within 500 feet from the crossing that meets the warrants with a traffic signal and a push button for walkers. Mr. Howley mentioned it could be updated with the possible addition of a new Civic Campus. Councilwoman Schubert asked how we handle requests on County and State roads. Mr. Henricksen replied that the City can’t make any improvements on these roadways but can advocate the County and State for an improvement if it is warranted. Councilwoman Schubert asked about the Lyman Boulevard and Audubon Boulevard north intersection being upgraded with signals or a roundabout instead of a stop sign. Mr. Henricksen responded that this is an intersection of two County roads. Mr. Bender added that the Avienda development has not been flagged by the County for further impacts; however, City Council Work Session Minutes – August 8, 2022 3 we will notify the County of these concerns. Mayor Ryan asked what happens when residents are not satisfied with the results/response to their request. Mr. Henricksen stated that the TSC continually evaluates reoccurring requests. The best option is to provide education on how a decision/solution was made. Mayor Ryan asked how many cases received by the TSC have constituted a change or fulfilled their request. Mr. Henricksen responded that is something that could be provided. Mr. Howley added that we currently don’t garner or receive feedback on requests. Mayor Ryan would like to know if any solutions created a change or impact. Mr. Henricksen stated they adhere to best practices and promoting safety when it comes to specialty sign requests. The TSC is not the end all and requests can be appealed to the City Council. Mr. Howley added that we haven’t had a case that has escalated to the that level. Councilman Campion asked about the Great Plains Boulevard intersection at West 79th Street. Mr. Howley responded that a meeting was held two weeks ago to review this intersection to create a quick and inexpensive interim solution and that Mr. Henricksen is working on drawing something up. Mayor Ryan thanked the TSC on their progress and communication. DISCUSS REGULATION AND LICENSING SHORT-TERM RENTALS Associate Planner MacKenzie Young-Walters presented this item. A meeting was held with a vendor who offers software to assist with the regulation of short-term rentals and they provided data on current short-term rentals in the City. As of July 29, the data showed there were 37 active short-term rental units in the City. Staff suspects some of these properties may have been listed once just for the Ryder Cup and that the owner never removed the listing. The average rental price was $468 per night, 85% were entire single-family homes and 15% were multi-family properties (condos/townhomes). Of the single-family homes, 95% are entire-home rentals. If there are actually 37 rental units in the City, the cost would be revenue neutral. The benefit of using the vendor is they have a program that identifies these units which would allow the City to proactively reach out before any problems arise. They also provide a 24-hour hotline where complaints can be logged and responded to. The other option would be in-house licensing and enforcement which would put us in a more reactive posture. We would receive complaints, contact the owner to follow up, and work through the citation and court process for compliance. After-hours noise complaints would be handled by the Sheriff’s Deputies. Mr. Walters provided pros and cons for processing internally, which is the lowest cost option. Community Development Director Kate Aanenson added that the City receives very few complaints. The biggest con for internal processing would be difficulties with after-hours enforcement. Also, the City cannot proactively identify rental properties, whereas, an outside vendor would provide a contact list for every rental property in the City. Mr. Young-Walters also surveyed peer cities as shown in the staff report for this item. Councilwoman Schubert asked if there were less than 37 properties, what would the annual cost be to go through the third party. Mr. Young-Walters responded that it would depend on what modules we choose. If we went with address identification and the hotline, $3,100 was the lowest fee. Ms. Aanenson restated that it is highly probable that the number of rental properties may be less than 37. Mayor Ryan’s concern is that doing nothing is not a responsible solution. Ms. Hokkanen added we could adopt an ordinance to require the licensing internally and add the software at a later date. The ordinance would require short-term rental licensing and implement City Council Work Session Minutes – August 8, 2022 4 performance standards and a three-strikes policy. Mayor Ryan asked about the licensing fees in comparison with other communities. Mr. Young-Walters responded that fees were all over the place. The vendor’s standard is one night’s rental fee. Councilman Campion thinks we should do something, and that the vendor cost seems reasonable as opposed to internal review, processing and enforcement. Councilwoman Rehm agreed and would like something that is sustainable and not add additional future work for Staff. Councilwoman Schubert also agreed that we should move forward with using a vendor. Ms. Hokkanen suggested the license fee be set at the higher end. Following Council discussion, Mayor Ryan asked staff to go ahead and move forward with an ordinance. Ms. Aanenson responded that they would put the ordinance on an upcoming Planning Commission agenda. Mayor Ryan recessed the Work Session at 6:52 p.m. Mayor Ryan resumed the Work Session at 7:10 p.m TETRHYDROCANNABINOL (THC) LAW DISCUSSION Ms. Hokkanen introduced this item for discussion but said the City Council may direct staff to take future action. At this time, there are no answers to most questions. There are three options the Council could consider: • Institute up to a 12-month moratorium to stop sales at new outlets until the City takes a zoning-related action. This will only stop sales at new outlets but not apply to the three tobacco shops in Chanhassen that already carry the product. The moratorium would apply only to any other retailers who wish to sell the product. • Create a licensing program. Currently the City does not license tobacco; Carver County Public Health is the licensing agent in Carver County. Many cities are viewing tobacco licensing as a parallel and trying to use a similar process and inspection methods. Ms. Hokkanen spoke with the Carver County Sheriff’s Office (CCSO) and the County Administrator and they are in a wait-and-see mode and currently not planning to do anything. • The third option is to wait and see. The Legislature may provide additional clarification, however, the timing is unknown. Mayor Ryan mentioned that there is controversy among municipalities in deciding their approach. She spoke with the Sheriff and Carver County is choosing to wait and see. The CCSO would be willing to provide enforcement if we decided to create a licensing program. Councilwoman Rehm asked for clarification as to why there is controversy among municipalities to institute a moratorium. Ms. Hokkanen responded that there is a lack of clarity on if this meets the intended purpose and authority of what a moratorium is for. Also, what is the point of a moratorium if there are outlets already selling product. Ms. Hokkanen referenced the publication provided by the League of Minnesota Cities (LMC) attached to the staff report for this item and that the City Attorney’s office does not agree with every interpretation made by the LMC. The genesis of this bill was that the Delta 8 gummies (a different strain of THC) was completely unregulated through the 2018/2019 farm bill. As a result, they were trying to reduce the dosages of these gummies. Councilman Campion suggested that the Council do nothing and wait for City Council Work Session Minutes – August 8, 2022 5 some clarity. Councilwoman Schubert would also prefer to wait and see. Councilwoman Rehm is okay with waiting as there is too much unknown at this time. Councilman Campion said if our neighboring cities haven’t instituted a moratorium, there is no reason why Chanhassen should. Ms. Hokkanen responded that the City of Prior Lake has. Councilwoman Schubert asked if law enforcement would be conducting compliance checks. Ms. Hokkanen responded that the CCSO does not routinely conduct THC compliance checks but will perform compliance checks if we request it. DISCUSS ELIMINATING SOLICITOR LICENSING Ms. Aanenson reviewed the abandonment trial process conducted by City Staff for determining the need to continue licensing solicitors. The current licensing process was reviewed to determine if it was still relevant. Currently, the City performs background checks and processing these can be timely. Out-of-state background checks are very limited. Additionally, staff needs to photograph each solicitor and create individual badges. There are also enforcement limitations. The outcome of the abandonment trial was to remove licensing requirements as they are no longer valid and are labor intensive for staff. The alternative would be to provide a public education campaign and provide residents with No Solicitor window clings. Ms. Aanenson completed her presentation and asked for Council direction. Councilwoman Schubert observes solicitor complaints on NextDoor and has concerns how residents would react if solicitor licensing were eliminated since residents seem to be aware that solicitors are required to wear a city-issued identification badge. Ms. Hokkanen responded that this is one of the reasons we want to eliminate solicitor licensing because not every solicitor is required to be licensed by the City i.e., charitable, religious, and non-profit or political organizations. Ms. Aanenson reiterated that we want to provide a resident education campaign regarding solicitors. Councilwoman Rehm thinks people will not like it if they take away solicitor licensing and asked if an education campaign or maybe a FlashVote be done first. People like the perception that the City is taking care of solicitors. Ms. Hokkanen’s concern is that this provides a false sense of protection for residents. Councilman Campion stated that he was indifferent and that there were valid points on both sides. Councilwoman Schubert liked the idea of communicating to and re-educating the residents on the process before abandonment. Mayor Ryan was not in favor of eliminating solicitor licensing and believes that it provides residents some sense of security. Councilwoman Rehm is comforted if a solicitor comes to her door wearing a city badge and knows the City is aware that they are out in the community. Licensing aside, Ms. Aanenson asked if Council would still like staff to consider an education campaign. Council concurred. Mayor Ryan said we could provide education and reconsider abandoning solicitor licensing at a later date. CITY COUNCIL ROUNDTABLE Councilwoman Schubert asked about panhandlers. Ms. Hokkanen responded that panhandlers are protected by the constitution and the City is extremely limited in its ability to address panhandling complaints. If panhandlers are not blocking the roadway or causing some other hazard there is nothing that can legally be done to prevent panhandling activity. The US Supreme Court has ruled that panhandling is protected under the first amendment’s protection of speech. City Council Work Session Minutes – August 8, 2022 6 The City could provide this information on the website and social media outlets to educate the public. Mayor Ryan suggested that communication and education be provided to public. Councilman Campion suggested that maybe law enforcement could hand out pamphlets to panhandlers with alternative resources and available services. Mayor Ryan asked Council about pursuing lowering of the speed limit from 30 mph to 25 mph? Councilman Campion thought it would be good FlashVote option. Councilwoman Rehm wanted to know if Victoria’s speed limit changes have made any impact. All agreed lowering the speed limit should be addressed at a future work session. Ms. Hokkanen reviewed upcoming dates: • Civic Campus Design Workshop is scheduled for Tuesday, September 13. All City Council and Commission members will be invited. • Lake Ann Park Preserve Master Plan Open House: Tuesday, September 27 hosted by the Park & Recreation Commission. • Avienda Neighborhood Meeting with Developer: Thursday, August 11. Mayor Ryan asked if there was about the attendance at the Galpin Boulevard open house. Mr. Howley reported that there were 46 attendees at the two-hour open house. Everybody got to speak and engaged staff the entire time. Ms. Hokkanen showed Council the Galpin Boulevard web page feedback feature provided by WSB. Mr. Howley said construction will start this year and the project will most likely take two years to complete as the timeline is driven by private utility locations. FUTURE WORK SESSION SCHEDULE August 22: 2023 Budget Overview and Initial CIP Discussion September 12: Preliminary Levy Discussion October 24: General Fund & Property Supported Funds Discussion November 14: CIP, Debt & Utility Rate Study Discussion The work session adjourned at 8:01 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk