- MINUTES - CHASKA CITY COUNCIL February 6, 2017

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1 - MINUTES - CHASKA CITY COUNCIL 1. Call to Order The meeting was called to order by Mayor Windschitl at 7:00 pm. 2.Pledge of Allegiance 3. Roll Call Roll call was taken. Present: Councilmembers Geisler, Boe, Rohe, Schulz, and Mayor Windschitl. Absent: None Also Present: Matt Podhradsky, City Administrator; Luke Melchert, City Attorney; Liz Hanson, City Planner; and, Matt Clark, Interim City Engineer. 4. Adopt the Agenda Motion by Councilmember Rohe, second by Councilmember Boe to adopt the agenda. 5. Visitor Presentation Mark Muhlenkort from Beyond the Yellow Ribbon stated they provide assistance and resources to veterans. He introduced the committee members and commented on the events they held in 2016, and upcoming events in They can be contacted through their website at address info@btryofchaska.org and phone number The Council thanked him for the services the organization provides to veterans and the work that was done by them to get the City recognized as a yellow ribbon city. 6. Minutes Motion by Councilmember Geisler, second by Councilmember Schulz to approve the minutes of the January 23, 2017 City Council meeting. 7. Consent Agenda Motion by Councilmember Rohe, second by Councilmember Boe to approve Consent Agenda items a through d: a. Approve Massage Therapy Registration, MTR.17-08, for Sherri Harwarth, Caring Palms Massage & Wellness Motion to approve Massage Therapy Registration, MTR.17-08, for Sherri Harwarth, allowing her to practice Therapeutic Massage in our Community b. Adopt Resolution No Approving Negative Declaration on the Need for Environmental Impact Statement (EIS) for the Demolition of 217 Walnut Street Motion to adopt Resolution No approving the Negative Declaration on the Need for an Environmental Impact Statement for 217 Walnut Street c. Approve the 2017 Pay Classification Plan and 2017 Salary Adjustment Rate Chart and Employer Benefit Contributions for 2017

2 PAGE 2 Motion to approve the 2017 Pay Classification Plan and 2017 Salary Adjustment Rate Chart along with the Employer Benefit Contributions for 2017, which are approximately $868 per month for single coverage and $1,270 for family coverage d. Approve the Employment Contract with the Police Law Enforcement Labor Services (LELS) bargaining unit, Approve the Employment Contract with the LELS Sergeants Union, and Approve the Employment Contract with the Minnesota Teamsters Union, Local 320. Motion to approve Employment Contract with our Police Law Enforcement Labor Services (LELS) bargaining unit, to approve the Employment Contract with the LELS Sergeants Union, and to approve the Employment Contract with the Minnesota Teamsters Union, Local 320, and to authorize the City Administrator to enter into these contracts. 8. Public Improvement Hearing Continued from January 23, 2017: Adopt Resolution No Ordering the 2017 Street and Utility Reconstruction Project at Second Street and establish the Public Assessment Hearing for February 27, Mayor Windschitl opened the public improvement hearing at 7:20 pm. City Administrator Podhradsky introduced the item to the Council. Interim City Engineer Clark presented the item to the Council. He met with business owners and their main concern was how quickly the construction can be completed. Councilmember Rohe inquired about the bid process and incentives to get the project completed. Interim City Engineer Clark stated the incentive performance guidelines would be included in the bid process. They will have a timeline with completion dates so that people can know when to expect things to get done, and will then add reasonable incentives tied to different parts of the project. City Administrator Podhradsky commented in the past, the delays have happened on the amenities, not the actual construction of the street. Mayor Windschitl closed the public improvement hearing at 7:28 pm. Motion by Councilmember Boe, second by Councilmember Geisler, to adopt Resolution No Ordering the 2017 Street and Utility Reconstruction Project at Second Street, Authorizing Preparation of Construction Documents and Establish February 27, 2017 for the Public Assessment Hearing.

3 PAGE 3 Councilmember Rohe thanked Interim City Engineer Clark for doing a good job communicating about this project to the businesses that will be affected by it. 9. Approve Phase I and Phase II purchase agreements with Holasek Land Management, and the purchase agreement with Scooter Enterprises for purchase of the future Southwest Chaska Community Park and future elementary school site. City Administrator Podhradsky presented the item to the Council. Councilmember Rohe commented this project has been talked about for a long time and he appreciates the family working with the City to come to this conclusion. Mayor Windschitl commented the school will draw in residents to purchase new homes. Motion by Councilmember Rohe, second by Councilmember Schulz, to approve Phase I and Phase II purchase agreements with Holasek Land Management, and the purchase agreement with Scooter Enterprises for purchase of the future Southwest Chaska Community Park and future elementary school site, and to authorize the City Administrator to move forward with implementation of these agreements pending approval by the School District of the Phase I Purchase Agreement. 10. Adopt Resolution No approving the Preliminary Site and Building Plans and Preliminary Plat for the Medical Office Building, Hy-Vee and Gas Station/Convenience Store (C- Store), and adopt Ordinance No. 931 approving the Rezoning for the Medical Office Building lot and Hy-Vee/C-Store lot from Open (O) to Planned Multi-Use District (PMD-20) City Planner Hanson presented the item to the Council. Councilmember Boe inquired if Chaska Creek Lane would go through to Engler. City Planner Hanson responded the road needs to be further evaluated whether it will go through or end in a cul-de-sac, but will contain sidewalks on both sides of the road. City Administrator Podhradsky commented it will be a right-in, right-out, three-quarter access. People coming from the opposite direction can turn left into the development. People who want to turn left out of the development can utilize the full access to the south. Councilmember Geisler inquired about semi-truck traffic. City Planner Hanson responded all semi-truck traffic will use the full access into the site and will have a south drive that leads to the loading docks. Councilmember Boe inquired if Chaska Creek Lane lines up with the full access out of the Hy- Vee site. City Planner Hanson confirmed it was part of the full access.

4 PAGE 4 Alex Young, MSP Commercial, applicant for medical office building, commented two confirmed tenants include Southwest Eye Care and Catalyst Medical. Councilmember Schulz commented there seems to be more screening along Engler Boulevard with the medical building than with Hy-Vee. Phil Hoey, Hy-Vee, stated they will continue to work with staff on concerns that were brought up. Regarding landscaping on the site, they currently have more trees and shrubs than the code requires. On Engler Boulevard, because of the grade change, additional landscaping for screening is not needed, and it is important to maintain a view of the site from the road. They will work with staff to get the right mix of landscaping in other areas of the site, including behind the building. Councilmember Schulz stated he is more concerned with adding more landscaping to the area along Engler Boulevard than on the south side of the site. He does not see the need for an evergreen wall on Engler to entirely block the building, but the landscaping is sparse in that area. City Planner Hanson commented the main concern with landscaping behind the building is screening from Highway 212 and they have requested more information to see if it is an area that they even need to focus on. Councilmember Boe pointed out they really should focus on screening on the north for the neighborhoods than on the south for nearby office buildings. The elevation change on the north will provide enough screening from the lights, but the neighborhood expressed concern with additional screening for the view Hoey stated an additional constraint includes County right-of-way. They want to put landscaping where it is a benefit, but not create a screen wall so that the store is not visible. Mayor Windschitl inquired about the height at the loading dock area. Hoey responded staff requested a cross-section rendering of how the site lines up with Highway 212, and that will be available when they come back for final approval. Hoey commented on the parking concerns brought up my staff. The parking in front of the building is designated for handicap use, expectant mothers, and restaurant pick-up. They have the same stalls at other stores across the Twin Cities, it has not created safety issues, and he requested it not be a condition that be removed. The Council expressed they are special use stalls and do not see the need to remove them. They also inquired why the project will not begin until Hoey stated the infrastructure that includes the connection to the south needs to be completed before they begin construction.

5 PAGE 5 City Administrator Podhradsky commented it is feasible that the road be constructed while they building is being constructed. They are waiting for a permit from the Core of Engineers, which can take over a year. Councilmember Rohe expressed concern with waiting so long to break ground on the project. Hoey responded if business climates change in the next few years, Hy-Vee will adapt with it and will still be ready to serve the City. When they buy land, they need to put it into production to create sales off of it. Mayor Windschitl inquired about the number of tenants in the medical building. Young commented the building is designed to comfortably fit four, but there could be more. Dave Pokorney, representative for the land owner, commented they are excited to have Hy- Vee on the site and see it as the best retail space for the site. It is a community shopping center and they have been good to work with. Due to soil and permitting issues, the earliest the road extension to the south could be completed would be summer of There is a master grading plan that includes moving fill off the Hy-Vee site to other areas of the site where future construction will take place. A grading implementation plan will be completed before Hy-Vee comes back for final approval. Shara Hoffman, Wetzel Lane, commented they own the property at 4675 Creek Road, southwest of the site. She expressed concern with the size of the proposed building and how it fits into the greenbelt area. Hoey commented the size of this store is within 10 percent of other stores. Their stores range from 92,000 to 100,000 square feet. City Administrator Podhradsky explained the area Hoffman is referring to is guided as a greenbelt area primarily because it cannot be serviced with utilities. The area where the site is located has always been slated for development. Hoffman stated it is a bigger store than what was in the original plan and includes a gas station, convenience store, and is open 24 hours. She inquired how it will mesh with the surrounding rural area. City Administrator Podhradsky commented the original grocery store was smaller, but did include three other pads for development. The Hy-Vee plan requires the same use that was originally proposed, it is just all included in one. Councilmember Rohe stated Hy-Vee is very community oriented and they will be a good neighbor. They will work on lighting and berming to get the best project that is conducive to help the surrounding neighborhoods.

6 PAGE 6 Councilmember Geisler commented there are not many places for people in this area to go for groceries or gas, and this site provides a central location. Hoffman stated it is zoned PMD and screening is required. City Administrator Podhradsky stated the intent of the greenbelt was meant to create a defined border. The issue of screening will come up again when the southern areas of the site are developed. The stock piling will be temporary and will depend on how the site is graded. If there is a dirt pile on the site that needs to be there, they will need to decide how to make sure it is not an eye sore. Pokorney commented the master plan shows in the area where Hoffman lives, there will be one single large building. The stock piling that will take place there will be a long berm that would be about six to eight feet high. Once the building is constructed, it will screen any views up into the rest of the site. Hoffman inquired if there are other 24 hour stores in Chaska and commented she does not understand the demand for it. The Council responded Coopers downtown is open 24 hours. Mayor Windschitl stated they stock the shelves overnight and they just keep the store open. Hoey explained they do stock shelves at night and being open 24 hours is important for people who work irregular hours. Hoffman inquired about the traffic flow and speed limit on Engler Boulevard, specifically with traffic coming from Waconia. City Administrator Podhradsky stated Engler Boulevard/County Road 10 is a main corridor and is going to be a main east-west corridor in the future. The next phase will be to upgrade County 10 to four lanes out to County Road 11. Interim City Engineer Clark stated the County is looking at the intersection of Creek Road and Engler Boulevard as part of their traffic impact study. Hoffman expressed concern with the 55 miles per hour speed limit on Creek Road from Highway 212 to Engler Boulevard. City Administrator Podhradsky stated when the road is reconstructed and the roundabout is added as part of the 2018 reconstruction, the speed limit will be looked at. Hoffman commented she is still concerned with the size of the store and wondered how to give it the Chaska small town feel.

7 PAGE 7 Councilmember Rohe stated the size is up to Hy-Vee and what they feel fits the market. Chaska is growing and is no longer a small town. City Administrator Podhradsky stated the overall size only has a 10,000-square foot difference from the original plan. It is important to listen to what Hy-Vee thinks will be successful in that market. It is not just a Chaska market, it will also include people getting off the highway from other communities. Mayor Windschitl commented any building over 60,000 square feet is huge, but this is what the market needs and Hy-Vee is willing to invest in Chaska. This area has always been slated for development. Motion was made by Councilmember Rohe, second by Councilmember Geisler to adopt Resolution No Approving the Preliminary Site and Building Plans and Preliminary Plat for a Medical Office Building, Hy-Vee and Gas Station/Convenience Store (C-Store) in Chaska Creek Business Park/Hy-Vee, Inc. and MSP Commercial/PC No / Motion was made by Councilmember Boe, second by Councilmember Rohe to adopt Ordinance No. 931, Amending Ordinance No. 229 (Zoning Ordinance) of the City of Chaska by Rezoning certain real estate within the City of Chaska. 11. Bills Motion was made by Councilmember Rohe, second by Councilmember Boe to approve bills as presented. Roll call was taken. Voting aye: Councilmembers Boe, Geisler, Rohe, Schulz, and Mayor Windschitl. Voting nay: None 12. Other Business City Administrator s Bi-Weekly Report received Minutes of the January 11, 2017 Planning Commission received Minutes of the January 9, 2017 Park Board received Councilmember Boe: Advised the next City Council meeting will be on Monday, February 27. Announced the Chaska Fire Department s 60 th Annual Ice Fishing Contest will take place on February 25 at Fireman s Park from 1:00 3:00 pm. Advised the meeting was not being televised. Councilmember Rohe: Commented at the last Southwest Transit meeting they presented a Distinguished Service Award to Commissioner Tom Workman and the Outstanding Political Champion Award to Representative Cindy Pugh. Advised they gave the CEO permission to authorize the purchase agreement with Metropolitan Council. They hope to be moved out in the fall.

8 PAGE 8 Councilmember Geisler: Welcomed India Bar and Grill to the City and stated she has heard wonderful things about the food. Inquired if the County could look at the intersection at White Oak and Engler Boulevard or put in a stoplight at Bavaria. There needs to be a short-term solution. City Administrator Podhradsky responded it is a priority project, it is part of redoing Highway 41 back to Highway 212, and it includes a stoplight at Bavaria. The County will be at the meeting on March 6 and it could be brought up then. Interim City Engineer Clark stated the corridor being looked at for future long-term improvements starts at Engler Boulevard, extends south to the Minnesota River Bridge, and includes the intersection of White Oak Drive and Engler Boulevard. City Administrator Podhradsky Commented a potential restaurant is seriously looking at the old Ruby Tuesday s site. Gloria, 3643 Lerive Way, commented she has tried to get a hold of City Administrator Podhradsky regarding garbage collection, drones, and roundabouts. City Administrator Podhradsky advised he will get back to her this week. The Council stated garbage collection has been discussed in the past and is a difficult topic. They advised her to get the associations in her neighborhood to agree on one hauler. Mayor Windschitl Commented tickets for the Ice Fishing Contest are available by calling the Fire Department at Advised a letter was received from Mr. Jochum. 13. Adjourn Motion by Councilmember Boe, second by Councilmember Geisler to adjourn the meeting at 9:39 pm.

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