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CC Minutes 09-08-2014Chanhassen City Council – September 8, 2014 Sam Chase: The big concern I had is last year I talked to, spoke twice or called twice. They said they would not use sand. Now maybe I was misinformed but they said clearly, our policy is to no longer use sand period. Mr. Burke said essentially the same thing earlier this week. He said we are not using sand. Mayor Furlong: And Mr. Burke is with the State? Paul Oehme: No he’s the new Street Superintendent. Mayor Furlong: Oh okay, yep. Sam Chase: And he said we have it in stock. I said will you use it when you really need it and he wouldn’t answer a clear, give me a clear answer. I’m not asking that you use it in blanket like the old days, but when I’ve been told by two people that you will not use it ever. In other words I said when it really gets serious will you bring it out? No answer. That’s all I’m asking is that, because obviously I can’t be at every intersection. I don’t know what you’re doing. Mayor Furlong: No and we’re not expecting that. But Mr. Oehme. Sam Chase: If you’re saying they’re going to use it, that’s all I’m asking but Charlie Burke said no we’re not going to use it. Paul Oehme: And Charlie’s a little new but he, we use it. We have used it and we will continue to use it when the situation is correct to use it. Sam Chase: That’s all, and then I’ll bring it to your attention. When I hit down Kerber and slides 8 car lengths hitting the stop sign. Almost hitting the stop sign it’s like, that’s a high stress area but okay, thank you very much. Mayor Furlong: Alright thank you Mr. Chase. Anyone else for visitor presentations this evening? Okay, thank you. VILLAGE SHOPPES OF CHANHASSEN, 460 LAKE DRIVE: APPROVAL OF SUBDIVISION TH REQUEST TO REPLAT VILLAGES ON THE PONDS 8 ADDITION; AND SITE PLAN REVIEW FOR A 13,654 SQUARE FOOT TWO-BUILDING RETAIL CENTER ON 1.45 ACRES OF PROPERTY ZONED PLANNED UNIT DEVELOPMENT, LOCATED ON LOT 1, BLOCK 1, TH VILLAGES ON THE PONDS 8 ADDITION. Kate Aanenson: Thank you Mayor, members of the City Council. This item did appear before the th Planning Commission on August 19 and they did recommend 7-0 to approve it with no significant issues. The subject site is located on 460 Lake Drive. Right now on that site is the, adjacent to this is the Community Bank. There are two actions being requested. One is the subdivision or replat of the Ponds th 8 Addition and a site plan review for a one story, 13,654 square foot retail center. The subdivision in and of itself is pretty straight forward. There are no public improvements with this replatting. The bank itself as it went in originally had intended underground parking but that has been eliminated. The spot shown in red on the site is a buffer area that they are reserving in case they want to do an expansion so there’s an easement so as a part of this there’ll be a lot line adjustment. So they are entering into a site plan agreement and a resolution approving the plat because there are no public improvements, there won’t be a development contract. The building itself as I mentioned is a little over 13,000 square feet. It meets the conditions of the PUD, Villages on the Ponds PUD. It has a parapet wall to screen the rooftop equipment. The materials on the building are dark brown brick. Decorative concrete masonry. Some cultured stone columns and then there’s EIFS as an accent material along the top. As I showed this site 5 Chanhassen City Council – September 8, 2014 plan itself there’s actually two buildings that are connected via a roof line so here there’s a slight change in grade so the buildings will be separated with a pass through corridor as we have those opportunities to walk between buildings throughout this project so it meets the overall design standard that we had anticipated with the Villages on a walkable place. The floor plan as existed, it’s a flexible site. Right now they’re intending to put two restaurants in the building but then there’s also retail space within there too. So all the parking that was approved with the project includes some on site. Some on Main Street. Some on Lake Drive and then some on the Pond Promenade and you can see then here, this is the pass way through the two buildings and it does meet all the standards again. So for the utility plan as I mentioned, sewer and water are available on site and it is private as are the streets in this area so it does meet all the conditions and availability of utilities. The landscaping plan is shown. They will have an outdoor seating area with one of the restaurants and that’s accommodated in the back here so it’s landscaped well with their parking and then also the streetscape along Lake Drive East and the Pond Promenade. So with that we are recommending approval for the site plan and the subdivision as stated in this report and I’d be happy to answer any questions that you have. Mayor Furlong: Thank you. Any questions for staff? Ms. Aanenson there was a statement in the staff report, I think it’s on page 4. I’m looking at my, with regard to the amount of construction materials, especially the EIFS. I think the original plan seemed to have more than what was allowable. Have those changes been made or? Kate Aanenson: Yes. There were a couple tweaks that we made yeah because it can only be used as an accent. Typically we like it in areas that are not high traffic areas so it doesn’t get, has more durable if it’s traditional stucco so that’s been. Mayor Furlong: But the modifications requested when the staff, at the time the staff report was written have been made? Kate Aanenson: Correct. Yep, and then those changes will be made before we do the site plan agreement. Mayor Furlong: Okay, thank you. Councilwoman Tjornhom, I’m sorry. Councilwoman Tjornhom: Ms. Aanenson in that area there is, I think it’s a private street. It’s not cared for by the City I don’t believe but there is that round paver section in that area. Can you speak a little bit about that and what the future is of that? Kate Aanenson: Sure. Sure. These are all private streets. We did meet with the Director or the Manager of the HOA, Vernelle Clayton who’s also here tonight just to talk about maintenance of those streets and getting the final wear course on some of those. I think with the completion of this, we do have another application on a building that just came in Friday in this same area so to finish out the improvements that need to be made on those sites. The brick pavers were taken out and I don’t believe they’re going back in but you may want to ask Vernelle Clayton about those. Their long term goals. Again they’re private streets and the reason they were put in as private streets was to allow at that time on street parking which typically isn’t something that the City likes to do for plowing purposes so these streets are all plowed by the HOA. So again this is a different type of HOA. This is the one we have unique commercial type like this so they’ve chosen to remove some of those improvements to manage the streets where they’ve changed over time. Maybe had some wear and tear on them so they’ve improved them by just taking them out and just paving them over. 6 Chanhassen City Council – September 8, 2014 Councilwoman Tjornhom: At the time the development came in and those streets were designed, was that part of the development contract that they would be there? Was there a reason why they were constructed that way? Kate Aanenson: I think that just was kind of the aesthetic. I don’t think that we’ve got it put in that they maintain the brick pavers. I think that was a look that we tried to have for the Villages concept. I think one of the concerns that we have, and we talked about this with HOA’s in general to make sure that they’ve got a healthy HOA that they are managing the streets and the improvements that they have. Actually the City Engineer and myself met with Vernelle Clayton just to talk about that because, making sure that they’re managing their sewer and water as the City Engineer does on our own improvement projects. Just like we do when we do our road improvement projects so we went through that and included in the packet was kind of the description of how they are intending to managing those and we believe that they’re on a good course and I believe that Mr. Oehme that you also investigated some of the hydrants and, or checking on some of those things just to make sure that, do you want? Paul Oehme: Yeah we just inventoried all the utilities in the development too. Kate Aanenson: Yeah so we’re just trying to get our arms around that to make sure that, as we move forward that this project stays healthy as do the people that are making an investment in there to make sure that it’s, they also have a financial plan put in place to manage their private streets. Mayor Furlong: Other questions? Mr. Laufenburger. Councilman Laufenburger: Thank you. Kate, let’s talk a little bit about parking. Kate Aanenson: Yes. Councilman Laufenburger: So based on the size of this two building retail center there’s parking requirements correct? Kate Aanenson: That’s correct. Councilman Laufenburger: And they meet those parking requirements correct? Kate Aanenson: Yes they do. Councilman Laufenburger: And do they use part of the street parking to meet those requirements? Kate Aanenson: Yes they do. Councilman Laufenburger: Okay. And they can do that because this is their own private street is that correct? Kate Aanenson: That’s correct. Councilman Laufenburger: Okay, thank you. Kate Aanenson: That’s correct. So we did calculate all those based on the uses they have. The two restaurant uses and that’s what limits, that’s the limiting factor on that and then there is cross access agreements between the properties out there. 7 Chanhassen City Council – September 8, 2014 Councilman Laufenburger: Specifically the bank? Kate Aanenson: Yeah. And the surrounding property so as you get towards the Pond Promenade area there’s quite a bit of parking up in that area. So you have uses that offset each other which was the intended there. This is kind of our approach to not over parking somebody but providing that opportunity when uses may be higher at one time for one user. Less at another so. Councilman Laufenburger: Just related to that, I know that the property immediately to the south of that is St. Hubert’s and the Foss Swim School so, do we know parking patterns for example on Sunday? Days of mass. Do St. Hubert people park into the street which would be directly to the west of the new development? Do you have any idea on that? Kate Aanenson: I know they maximize their parking lot. Laurie Hokkanen: Typically not. Councilman Laufenburger: Typically not. So the parking that they have at St. Hubert’s satisfies that? Okay. Kate Aanenson: Yeah and just to be clear too, they do have an opportunity to, there’s another building that could be built on St. Hubert’s. I’m not sure that’s ever going to go forward but there is another building that could go on St. Hubert’s which would push some of that parking around. Mayor Furlong: When you say St. Hubert’s, isn’t it the green area right there below this? To the right. Kate Aanenson: Yes, correct. Mayor Furlong: That area right there. Councilman Laufenburger: Right there. Kate Aanenson: That green area, yep. So I’m not sure that would ever go forward but because that right now allows them an additional parking that they wouldn’t have to cross the street because there’s adequate parking there. Mayor Furlong: Though I guess it’s been my experience that people attending mass at St. Hubert’s do park on the street as well. Kate Aanenson: That’s my observation too. Mayor Furlong: And some of them will also park, you can see the lot to the east of this blue line behind the bank there. People will also park in that one as well. Councilman Laufenburger: Sure, and my guess is once the retail establishments are in place, if they’re open on Sunday, people may park there and then go directly from mass to one of those eating establishments probably. Kate Aanenson: Exactly, yep. Councilman Laufenburger: Okay. 8 Chanhassen City Council – September 8, 2014 Mayor Furlong: Any other questions for staff at this time? Representatives from the applicant are here. Good evening. If you’d like to address the council. Steve Johnson: Mr. Mayor, council members, good evening. My name is Steve Johnson. I’m with Solomon Real Estate. I’m a partner with Solomon Real Estate Group. I live at 1508 Welland Avenue in Minnetonka. I’m here, I’ll address any questions specifically that you have. Staff has done a wonderful job of preparing the report and addressing all the issues. Have been working with staff on some of the things that you said and we’ve corrected all of those. In the process of having those drawings done and at the time of building permit everything will be up to code and agreement so. Mayor Furlong: Perfect. Okay, great. Thank you. Any questions that we want to ask of the applicant or Councilwoman Tjornhom, maybe this is beyond the Solomon Group but I know Ms. Clayton is here. You were asking about the roads too and such like that. But any questions specific on the project here? Councilwoman Tjornhom: No. You know once again I, it’s really good to see that people are investing back into our town and you know I think this council takes it very seriously that we take pride in our downtown and we want to do what we can to cooperate with people coming in because we love our downtown and so this looks like a great project. Steve Johnson: We’re excited. It’s taken a long time to get it to this point. Councilwoman Tjornhom: Yeah. Steve Johnson: But I think we’re finally there. Councilwoman Tjornhom: I think we’re going to probably all miss those…locations but no, it looks like a great project. Steve Johnson: Well thank you. Mayor Furlong: Thank you Mr. Johnson. Steve Johnson: Thank you. Mayor Furlong: Ms. Clayton, anything from your standpoint? Vernelle Clayton: Well I can just seize the moment. You know another opportunity to talk to you all. I thought maybe I could clarify a little bit more about the, I’m Vernelle Clayton. I live at 422 Santa Fe Circle sir and if I may address you all. Mayor Furlong: Please. Vernelle Clayton: There were 3 intersections that we were concerned about. One is not technically an intersection. We call it church circle and that was a source of complaints and concern because it needed a second lift. It has it now so it looks really nice. Another one was the very north end of Main Street. That’s the one where we took out the pavers. This is the second time we’ve dealt with it with intermittent replacement. Something about the soil there or the slope or something that things just deteriorated and popped out. We’re saving as many as we can because we really want to keep the main intersection of Lake and Main with pavers if we possibly can so we’re going to continue to try to keep that for the overall look of the Village. There’s another one though that has pavers and that’s over by AmericInn. We’re trying to figure out exactly who owns what there and we’ll have that figured out by the time the 9 Chanhassen City Council – September 8, 2014 next project comes through and then that will be shared at 50 percent with Northcott and the other 50 percent probably with the Association and we’ll get that done somehow. We haven’t got a specific plan. So that’s, those are the four areas so did that help at all? Mayor Furlong: I think it does. Vernelle Clayton: Okay. Mayor Furlong: With regard to the street that runs from the intersection that was just replaced and I’m sorry I don’t know the names of the streets. It runs along Houlihan’s there. Vernelle Clayton: That’s Pond Promenade. Mayor Furlong: Pond Promenade, thank you. Is that going to receive the bituminous course and wear courses as part of this development or when do you anticipate that would be? Vernelle Clayton: That would be part of the next development and that is technically not a street yet. It’s really just a drive aisle. The original owner of that land, when Houlihan’s and the AmericInn were developed said no, we don’t want to dedicate it to a street yet. We want to keep owning it so we can control exactly where it will go and once Northcott’s land is developed so when they do that they’re going to be dedicating, you’re going to be seeing a replat and you’ll be seeing an outlot that will be the street which is now, which we call a street. Pond Promenade. Mayor Furlong: Okay. Vernelle Clayton: So that will be done at that time. Mayor Furlong: With the next project that is coming through? Vernelle Clayton: Yep. Kate Aanenson: If I may, it’s hard to see on here but it’s right immediately to the west so it’d be this project. This piece is coming in and this is the area. Mayor Furlong: That’s the one I’m referring to, yes. Kate Aanenson: Yeah, there’s a little discrepancy here of where that lot line falls and it should fall on. Vernelle Clayton: Yeah. Mayor Furlong: I know there’s gravel parking and stuff and people use it. Kate Aanenson: Yeah, right. Vernelle Clayton: It’s bad, right. Kate Aanenson: Right, and that’s what’s going to solve with the next project. Vernelle Clayton: Yeah, the next project will be, it will be L shaped and the park actually going east from the north end is an outlot so that’s already a street outlot. 10 Chanhassen City Council – September 8, 2014 Mayor Furlong: Okay. Vernelle Clayton: Alright, thank you. Mayor Furlong: That’s helpful, thank you. Any follow up questions for staff or anything else that people have questions about? If not there was a public hearing at the Planning Commission and so I don’t know that we certainly don’t need a public hearing. I don’t see anybody here that might want to comment. Kate Aanenson: Correct, you do not need it. Mayor Furlong: We’re always open to comment. With that let’s bring it to council then and thoughts and comments. Councilwoman Tjornhom, I’ll pick up on your comments before about the quality of the development. It’s nice to see investment. Councilwoman Tjornhom: And I think I hear, I heard something that we haven’t heard that we always want to hear is that two new restaurants are coming to town. Mayor Furlong: I was going to say, yes. Councilwoman Tjornhom: You know that always gets the council, or my attention at least because you know we all want to stay here and take our families out to dinner here so yeah, I think it’s a good addition so. Mayor Furlong: Thank you. Other comments? Thoughts or comments. No, I will just concur. It’s always nice to see people looking to not only invest in the real property development but also businesses looking to locate here too and so we’re very happy to see that and I would concur that restaurants are always wanted on the top of the list as we hear from residents of what they’re looking for so. We look forward to seeing this project go up and the businesses open and everyone being successful with it. With that, if there are no more comments, would somebody like to make a motion? Councilwoman Ernst: Mr. Mayor, I’ll make a motion. Mayor Furlong: Sure, Councilwoman Ernst. Councilwoman Ernst: I make a motion that City Council approve the resolution approving the th preliminary and final plat for Villages on the Pond 10 Addition and site plan review for a one story, two building 13,654 square foot retail center subject to the conditions of the staff report and adoption of the Findings of Fact. Mayor Furlong: Thank you. Is there a second? Councilman Laufenburger: Second. Mayor Furlong: Motion’s been made and seconded. Any discussion on the motion? Hearing none we’ll proceed with the vote. Resolution #2014-59A: Councilwoman Ernst moved, Councilman Laufenburger seconded that the th Chanhassen City Council approve the subdivision re-platting Villages on the Ponds 8 Addition; and Site Plan Review for a one-story, two-building, 13,654 square-foot retail center subject to the following conditions and adoption of the Findings of Fact and Recommendation: 11 Chanhassen City Council – September 8, 2014 Subdivision 1. Before the final plat is recorded the $45 GIS fee must be paid. Site Plan Building 1. Building plans must be prepared and signed by design professionals licensed in the State of Minnesota. 2. The building(s) are required to have automatic fire extinguishing systems. Water supply for the fire suppression system must comply with NFPA 13 (specifically, see restriction/requirements for pipes under buildings). 3. Retaining walls over four feet high must be designed by a professional engineer and a permit must be obtained prior to construction. 4. Structure proximity to property lines and other buildings will have an impact on the code requirements for the proposed buildings, including but not limited to, allowable size, protected openings and fire-resistive construction. These requirements will be addressed when complete building and site plans are submitted. 5. Detailed occupancy-related requirements will be addressed when complete building plans are submitted. 6. The owner and/or their representative shall meet with the Inspections Division as soon as possible to discuss building proximity issues as well as plan review and permit procedures Engineering 1. The applicant must obtain the necessary agreement for the shared access between Lots 1 and 2, Block 1, Villages on the Pond Tenth Addition. 2. Some of the sidewalk adjacent to the site is damaged and shall be replaced with the site improvements. 3. The proposed 8” ductile iron watermain on the east side of the building shall be privately owned and maintained. 4. The developer shall work with the small utility companies to ensure that any conflicts are resolved. 5. The grading plan must be revised to include proposed spot elevations on the patio on the northeast corner of the building on Lot 1 and the green area on the west side of Lot 2. Fire Marshal 1. “No Parking Fire Lane” signs and yellow painted curb will be required. The builder shall contact the Chanhassen Fire Marshal for specific areas. 12 Chanhassen City Council – September 8, 2014 2. There are specific codes relating to the installation of underground water mains under buildings. The builder will need to submit specific plans to the Chanhassen Building Department and Fire Department for review and approval. 3. A three-foot clear space must be maintained around fire hydrants. Planning 1. The applicant shall enter into a site plan agreement with the City and provide the necessary security to guarantee erosion control, site restoration and landscaping. 2. The developer shall provide the city with an acknowledgement from Community Bank waiving their right to access for their underground garage area. 3. The material for the trash enclosure should reflect the building design and building materials. The trash enclosure shall be shifted to the north with the gates facing north. 4. The building elevation must be revised to reduce the amount of E.I.F.S. to 15 percent. 5. Sloped roof elements shall be a minimum 70 percent of roof area. Revise the building elevations to incorporate additional sloped roof features. 6. The developer should verify the placement of the light poles along Main Street to allow pedestrian passage. 7. Additional benches should be provided as well as a bike rack. 8. The applicant shall revise the landscape plan to show the treed parking lot island with a minimum inner width of 10 feet. Water Resources 1.Prior to issuing a building permit, the hydrologic model shall be amended to include hydrologic soils group B unless adequate evidence can be provided showing that the USDA soil survey information is incorrect. 2.An operations and maintenance manual, stating anticipated inspections and maintenance and including the responsible party, the schedule of these activities and the methodology of reporting to the city, shall be prepared and submitted to the city for review and approval prior to issuing a building permit. 3.The applicant shall discuss potential opportunities for infiltration or volume reduction and incorporate where practicable to do so or provide reasons deemed satisfactory to city staff why these practices are not being proposed. 4.A detail sheet showing all proposed erosion prevention and sediment control best management practices shall be included with the final plan set. 13 Chanhassen City Council – September 8, 2014 5.Inlet protection on all existing catch basins downstream of the disturbance area and adjacent to traffic routing. This includes the catch basin which the system is intended to tie into as well as the four (4) catch basins near the entrance. 6.All turf areas shall have a minimum of 6 inches of topsoil placed prior to seeding or sodding. All voted in favor and the motion carried unanimously with a vote of 5 to 0. 2015 BUDGET: RESOLUTION APPROVING/CERTIFYING THE MAXIMUM PRELIMINARY LEVY TO CARVER COUNTY AUDITOR. Greg Sticha: Good evening Mayor. Mayor Furlong: I noticed the City Engineer quickly moved away from the desk so you’re on your own. They’re behind you but way behind you. Greg Sticha: I see that. Good evening Mayor and City Council members. As you said this evening the City Council is going to be asked to pass a preliminary levy for taxes payable in 2015. This preliminary levy will be used to send out the Truth in Taxation statements that residents will be receiving in mid- November from the County. First I’m going to kind of give the residents at home kind of a little perspective of where we’ve been and where we’re heading here with the rest of the budget calendar the rest of the year here. This evening we’ll be setting a preliminary levy. Prior to this evening however residents should be aware the City Council had a number of work session meetings to discuss budget items including a detailed rundown of general fund budgeted expenditures as well as looking at all the City’s levies and various financial, long term financial planning documents that the City reviews on an th annual basis. Those meetings took place in July and August. On October 13 the City Council will be reviewing the Enterprise and Special Revenue Fund budgets and also looking at the 2015 to 2019 CIP, along with getting an update on a review of the third quarter 2014 revenue and expense data. In November we will begin working on discussing with the City Council the utility rate studies and setting the utility rates for 2015 with Ehlers and Associates. The second meeting in November we will pick up st any items that remain on the budget, the CIP or utility rate discussion. December 1 is when the City is slated to have the public budget meeting or formerly known as the Truth in Taxation hearing meeting. th And on December 8 City Council will set a final 2015 tax levy budget, adopt a 2015 to 2019 CIP and set the utility rates for 2015 as well as adjust any other fees or fee schedules in our fee ordinance. Second it takes us where we’ve been and where we’re going. What have the data and the information been presented so far to council is on this slide. We used a 3 percent wage increase for employees in 2015. We are currently budgeting for a 15 percent increase in health care costs, however our bids for the health care contract for next year have not come in and we probably won’t be receiving those until a little later in September, as Ms. Hokkanen had pointed out in our work session earlier this evening. New construction in the city of Chanhassen for 2015 estimated by the Carver County Assessor’s Office is 1.76 percent. This equates to about $181,000 in new tax growth, if you want to call it that for 2015. We left the building permit revenue the same as the 2014 budget, as we had done for the previous year’s budget consistent with council’s objective of maintaining that line item at an amount where we’re not caught by a change in market conditions relating to building like we were in 2008 and 2009. Under this budget scenario and levy all, under all the scenarios city service levels will remain the same whether it’s scenario 1, 2 or 3. Scenario 1 would be a total levy of $10,556,021. That’s a $220,000 increase as compared to the final 2014 levy or a 2.15 percent increase. Again there’s no impact to service levels with this particular scenario. The impact to a resident on their property tax bill would be about a $3 to $4 dollar increase. Again all of these scenarios, for those listening at home would be based on the average home in Chanhassen having an increase in their market value by the average which for Chanhassen for 2000, tax 14