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09-09-2024 City Council Regular Meeting MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES SEPTEMBER 9, 2024 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald, Councilmember Schubert, Councilmember von Oven, and Councilmember Kimber. COUNCIL MEMBERS ABSENT: None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Eric Maass, Community Development Director; Charlie Howley, Public Works Director/City Engineer; George Bender, Assistant City Engineer; Jerry Ruegemer, Parks and Recreation Director; Patrick Gavin, Communications Manager; Kelly Grinnell, Finance Director; and Rick Rice, IT Manager. PUBLIC PRESENT: Linda Paulsen Jennifer Ray Nathan Kirt Nick Guardino, 7050 Mill Creek Lane Seetharaman Swaminathan, 9875 Delphinium Lane Brad Moe, 1425 Bluff Creek Drive Nicola Smith, 725 Bramble Drive PUBLIC ANNOUNCEMENTS: 1. Teen Volunteer Recognition Mayor Ryan thanked local teenagers for their volunteer efforts over the last year in Chanhassen. CONSENT AGENDA: Councilman McDonald moved, Councilmember von Oven seconded that the City Council approve the following consent agenda items 1 through 10 pursuant to the City Manager’s recommendations: 1. Approve City Council Work Session Minutes dated August 26, 2024 2. Approve City Council Minutes dated August 26, 2024 3. Receive Commission on Aging Minutes dated July 19, 2024 City Council Minutes – September 9, 2024 2 4. Receive Park and Recreation Commission Minutes dated June 25, 2024 5. Receive Planning Commission Minutes dated July 16, 2024 6. Receive Planning Commission Work Session Minutes dated August 20, 2024 7. Approve Claims Paid dated September 9, 2024 8. Approve Temporary On-Sale Liquor License for the Grief Club of Minnesota for their Healing Hearts Soiree Events on September 19, 2024 9. Recreation Center Driveway and Stormwater Improvements 10. Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 1522 Mills Drive All voted in favor, and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. Nathan Kirt thanked the Mayor for attending the neighborhood workshop. He commented that stop signs do work and requested a stop sign. He said that he watched families cross the intersection and cross in a long line, making it difficult for them to cross safely and promptly. He stated that a stop sign would help with this process. He said there was a photographer and an officer at the intersection. The photographer would take pictures when cars stopped, but not when cars went by him or did not stop. He asked if this would be an issue. Linda Paulson, of Chanhassen, thanked the City Council for saving the fireplace. She recommended that Roers plant Norway Pine trees. She reviewed information about identity theft. She voiced concerns about fireworks. She asked about the Comcast installation on Frontier Road and road improvements. Jennifer Ray, of Chanhassen encouraged the Mayor and the City Council to pass a regulation that major party balance for absentee voters from the A-to-Z process. She requested action to respond to this request. She asked who oversaw mosquito control. Mayor Ryan said that mosquito control was a State program. Public Works Director Howley encouraged the residents to search for contact information about the mosquito control program and share their concerns with the appropriate individual. Nick Guardino, 7050 Mill Creek Lane, thanked the City Council for listening to residents’ concerns about water and sewer services in Victoria. He commented on the widening of Highway 5, which put substantial traffic on Highway 7. He encouraged the city to work with the City Council Minutes – September 9, 2024 3 mayor of Shorewood on intersection control. He encouraged a stop sign to be installed on Minnewashta. Judy Harder, 541 West 78th Street, explained the need to protect the urban canopy of trees and that bare root trees are $50 or less per tree. She proposed that residents could request a tree for their right-of-way and take care of those trees. She volunteered her time to help promote the planting of trees in Chanhassen. PUBLIC HEARINGS. 1. Resolution 2024-XX: Accept Feasibility Study, Conduct Public Hearing, and Authorize Preparation of Plans and Specifications for the Sanitary Sewer Lift Station No. 33 Improvement Project, Project No. 08-09 Charlie Howley, Public Works Director, provided background information on the 2010 Metropolitan Urban Service Area Lift Station. He presented a map showing the sewer service area. He presented an image of the immediately developable service area. Eric Maass, Community Development Director, reviewed important dates in 2024 that started this sewer lift station conversation. He explained the new single-family home construction and explained that there was an inadequate supply of single-family homes to meet demand. Mr. Howley showed an image of the lift station site and explained the need to build a driveway. He stated the property owner expressed interest in a trailhead with an easement for no cost. He displayed an image to explain the length and the layout of the forcemain. He summarized the flow characteristics and provided an overview of the budget breakdown for the Capital Improvement Plan SS-020 Project Budget, including the costs for the city and for the development. He summarized the process to establish a sewer district and compared the costs with the Lake Ann Sewer District. He displayed an image providing a schedule for project completion. Councilmember von Oven asked if the city would cash-flow the project and pay themselves back from the development costs. Mr. Howley confirmed this information. Councilmember McDonald asked what changed in the area that made this project necessary. Mr. Howley explained the two recent developments, including the Klingelhutz Developer and the MnDOT ROW. Councilmember McDonald asked if they met with Anderson during the workshop. Mr. Maass clarified that it was the developer for the Klingelhutz property. City Council Minutes – September 9, 2024 4 Councilmember McDonald questioned the drive to build this infrastructure at this current time. Mayor Ryan agreed with the comments expressed by Councilmember von Oven. She commented that there needs to be details explored with this project. She expressed concerns about the expense of this project, especially with other projects’ costs. She voiced concerns about moving forward with this project and encouraged additional conversations with the City Council, Mr. Maass, and Mr. Howley. Mayor Ryan opened the public hearing. Brad Moe, 1425 Bluff Creek Drive, asked about the development in the Bluff Creek Overview District. He asked if the $2.5 million that would be paid back comes from existing lots that do not have a requirement for city’s sewer and water. He also asked who would be paying the $2.5 million back to the city – the residents or developers. Seetharaman Swaminathan, 9875 Delphinium Lane, asked about the impact to his property and if residents have the option to say no to the lift station if he is happy with the current operation. Nicola Smith, 725 Bramble Drive, agreed with the questions expressed by Seetharaman Swaminathan. Mayor Ryan closed the public hearing. Mr. Maass commented on the Bluff Creek Overlay District. He explained that when development occurs adjacent to or within the Bluff Creek Overlay District, there are additional regulations that must be followed. He said that the Bluff Creek Golf Course is zoned for residential low-density. He said that the city must give a land use designation for every property. He reviewed the sub-divided land purchased by a developer. He commented that the topography is such, that the lift station could service the area if necessary. He reviewed the different types of development guided for the area and stated that there is no requirement to hook up if they have existing water and sewer. Mr. Howley commented that the feasibility study reviews the financing for the selected option. He said that the $2.5 million would be paid back by 848 equivalent residential units at $2,900 apiece. He said that the residents are not required to hook up until sewer and water is brought in front of their house. He referenced the City Code, stating that if there is municipal sewer and water within approximately 150 feet from your property, you are required to hook up to the services within a certain time frame. Mayor Ryan noted if there are fewer homes built, less revenue is collected to pay for the lift station. City Council Minutes – September 9, 2024 5 Mr. Howley said that the city could eat the cost or pass an ordinance changing the amount from $2900 to $3800. He said that city staff would monitor development to track the financing. Mr. Maass said that the Comprehensive Plan provided a safeguard with the minimum density requirements. Councilmember Schubert said that individuals had reached out about developing the office space triangle. She asked how frequently these inquiries are received. Mr. Maass answered that the property in question is 30 acres off 212 with an interchange. He said that he receives a couple of inquiries a month. Councilmember Schubert asked for clarification about the 848 equivalent residential units. Mr. Howley clarified that the Bluff Creek Overlay District was not going to be developed. Councilmember Schubert clarified that she was asking about the golf course. She asked the breakdown of the development. Mr. Howley said that there was a startup condition of 210 equivalent residential units. He said that he did not know how many equivalent residential units were in the triangle lot. Mr. Maass said that there were about 100 acres in the golf course guided for low-residential density. He said there would reasonably be 300 units in the golf course. He noted the areas guided for office use rather than residential use. Councilmember Schubert clarified that there was only about 25 percent that would be paid back to the city in the near future. Councilmember McDonald asked a question. Mr. Maass said that the two lot areas would need to be re-guided in the Comprehensive Plan if they were to be subdivided further. Councilmember McDonald asked a question. Mr. Howley responded that the neighborhood south of the lift station would have its own lift station at the bottom of the hill that would be pumped up to the other lift station. The development would need to pay for their own lift station. Councilmember McDonald asked if this was true about another development as well. Mr. Howley said that those developments as a sewer shed would need to construct infrastructure. City Council Minutes – September 9, 2024 6 Councilmember McDonald clarified that specific developments were outside of the district. He asked if they would be financing something long-term that they would not receive any payback for. Councilmember von Oven requested to see the schedule. He asked why this would be constructed now. He commented that they could approve a lift station later when a development is approved in the area. Mr. Howley said that the schedule was as quick as a lift station could be completed. He said the city could not approve the preliminary plat until the decision to build a lift station was approved. He said the city was delivering a service to support one development application. Mayor Ryan said if there was a real application, the city could act quickly. She voiced concerns about moving forward. Councilmember Schubert commented that she could not support moving forward since it would be a high cost for the city. Councilmember McDonald moved, Councilmember Schubert seconded that the City Council table the resolution, Resolution 2024-XX: Accept Feasibility Study, Conduct Public Hearing, and Authorize Preparation of Plans and Specifications for the Sanitary Sewer Lift Station No. 33 Improvement Project, Project No. 08-09. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. 2. Resolution 2024-58: Approve Vacation of Public Drainage and Utility Easements within the Roers property development Charlie Howley, Public Works Director, reviewed the request for the vacation and showed photographs detailing the easements. He stated that vacating the easements was contingent on the Chanhassen Market Street Addition Plat being recorded. Mayor Ryan opened the public hearing. There were no public comments. Mayor Ryan closed the public hearing. Councilmember von Oven moved, Councilmember Kimber seconded that the Chanhassen City Council adopt a resolution approving the Vacation of Public Drainage and Utility Easements, over multiple easement areas within the Roers property development legally described as, Lot 1, Block 1 Bloomberg Addition and Lot 1, Block 1 Frontier Cinema Addition, according to the recorded plats thereof, Carver County, Minnesota and adopt the Findings of Fact. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. City Council Minutes – September 9, 2024 7 GENERAL BUSINESS. 1. Resolution 2024-59: Approve an intersection control measure or an improved pedestrian crossing on Minnewashta Parkway at Kings Road Mayor Ryan said this topic was discussed at the last meeting and they did not reach a consensus. Councilmember Schubert stated that the City Council should move forward with a stop sign based on previous discussions and emails. Councilmember Kimber asked if they restripe in addition to the stop sign if that would increase pedestrian safety. Mr. Howley said that the strategy would be done with the intent to increase pedestrian safety. He said that the bollards and striping would take more time than just a stop sign. Mayor Ryan asked about the different types of stop signs. Mr. Howley said there is a standard stop sign, a blinking stop sign that continually blinks and runs on solar power. There is also a blinking stop sign that detects motion to blink. He requested direction on the type of stop sign that the City Council would prefer. Councilmember Kimber voiced a preference for the blinking stop sign. He stated that he thought the blinking pedestrian crosswalk was the safest and cited studies that indicated their safety. Councilmember von Oven requested clarification about redoing the striping. Councilmember Kimber explained that the striping would be the crosswalk and narrowing of the lane to provide a safety area for the pedestrian in the middle. Councilmember von Oven asked about the costs of the striping. Mr. Howley estimated it would be $800 to $1,000 for the striping and bollard. Councilmember von Oven provided an overview of how a stop sign would have more stopping power. He believed residents would stop at a stop sign. Councilmember Schubert moved, Councilmember von Oven seconded that the Chanhassen City Council adopt a resolution approving adding stop signs with increased striping at Minnewashta Parkway at Kings Road Intersection. All voted in favor, and the motion carried with a vote of 4 to 0. Councilmember McDonald voted nay. 2. Preliminary 2025 Levy and General Fund Budget City Council Minutes – September 9, 2024 8 Finance Director Grinnell explained that the city must submit a preliminary levy to the County by September 30th. She reviewed the preliminary 2025 general fund budget and noted the percentage increase for each function. She summarized the budget increases for the wages and benefits and other items. She provided an overview of the revenues by type and noted the percentage increases. She displayed a chart that summarized the preliminary property tax levy for 2025. She explained the 2023 and 2024 adopted levies and noted the projections from 2025 to 2028. She reviewed the market values for taxes payable in 2025 and noted that the 2024 total percentage change. She summarized the change to the home market value exclusion for homeowners in 2023 by the Minnesota State Legislation. She presented a comparison with the proposed levy increases of other cities. Mayor Ryan explained there was more work to be done to reduce the budget further. This meeting would set the preliminary levy and the city cannot go above that amount. Councilmember Kimber moved, Councilmember von Oven seconded that the Chanhassen City Council adopt a Resolution approving the Preliminary 2025 Levy and General Fund Budget. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. COUNCIL PRESENTATIONS. None. ADMINISTRATIVE PRESENTATIONS. 1. Quarterly Financial Report CORRESPONDENCE DISCUSSION. None. Councilmember Schubert moved, Councilmember Kimber 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 9:00 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk