11-28-2022 City Council Work Session MinutesCHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
NOVEMBER 28, 2022
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilwoman Rehm,
Councilwoman Schubert, and Councilman Campion.
COUNCIL MEMBERS ABSENT: None.
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie
Howley, City Engineer/Public Works Director; Kelly Grinnell, Finance Director; Jerry Ruegemer, Park
& Recreation Director; Rick Rice, IT Manager; Jill Sinclair, Environmental Resource Specialist; and Ari
Lyksett, Communications Manager.
PUBLIC PRESENT:
Ryan Pesch, University of Minnesota Extension Center for Community Vitality (via Zoom)
Liz Kohane, 6870 Yuma Drive
Mayor Ryan called the Work Session to order at 5:30 p.m.
2023 LEVY DISCUSSION
Finance Director Kelly Grinnell reviewed that at the November 14, 2022 Work Session, budget details
were narrowed down to where the final levy increase would be dependent on the total amount levied for
trail maintenance. Ms. Grinnell distributed and presented a chart showing the annual city tax comparison
from 2022 to 2023 for levy options of 5.2%, 5.9%, 6.2%, 6.3%, and 7.2%. A second chart was
distributed and presented showing the monthly city tax increase for the same levy options.
Mayor Ryan made a point of clarification that the comparisons provided are based on the assumption
that the differential between 5.2% and 7.2% would go towards trails, and the budget surplus would be
used for park renovations. Ms. Grinnell responded that her understanding that the consensus from the
previous work session was that two of the three parks recommended for renovation would be funded;
however, she added that there was an adequate fund balance to fund all three parks. Council discussed
whether to allocate two or three parks in the budget. The consensus was to renovate two parks in 2023
and wait and see if additional surplus funds become available before making the decision to renovate the
third park. Mayor Ryan surveyed the council on the levy increase amount they would support. City
Manager Laurie Hokkanen reminded council that they do not need to come to a consensus at this
meeting. Alternative motions can be provided in the staff report for final approval of the levy. The
public hearing on the proposed budget is scheduled for Monday, December 12, 2022 at 7:00 p.m.
EMERALD ASH BORER UPDATE
Environmental Resource Specialist Jill Sinclair stated that the city is focused on two aspects of the
Emerald Ash Borer (EAB) infestation: public trees in parks and right-of-way, and private trees which
per city code are inspected and marked for removal if they are infested. Ms. Sinclair defined EAB and
described how the insect infects the ash trees, and the signs and symptoms of infestation. Tonight’s
presentation is to provide council with information on the status of the infestation and the expected
exponential population growth. The city maintains an inventory of public ash trees, provides education
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and outreach, and performed phased tree removals in order to protect and preserve healthy ash.
Approval of a contract with Rainbow Treecare to provide tree injection services is on tonight’s city
council agenda. The city has treated about 700 ash trees with pollinator safe insecticide via trunk
injection. Rainbow Treecare claims that these treatments are 99% effective. Starting now until March,
city staff will be inspecting trees for EAB and marking them for removal. Untreated trees on private
property can be a financial burden to property owners, particularly if there are a large number of infected
ash trees in their yards. Ms. Sinclair described various options offered by other cities that provide
assistance with tree removal on private property. Treatment is the best and easiest option; however, not
everyone is going to treat their trees. Another option is to encourage residents to plant new trees by
providing low or reduced-cost trees to residents.
DISCUSS CITY COUNCIL APPOINTMENT
City Manager Laurie Hokkanen congratulated Councilmember Rehm on her election to the State House
of Representatives District 48B effective January, 2023. Since Councilmember Rehm’s term does not
expire until December 31, 2024, a new council member will need to be elected or appointed. Ms.
Hokkanen explained that the city can either hold a special election or appoint someone to complete the
remaining two-year term. Historically the city has not held special elections to fill a vacancy due to the
cost, and statute does allow appointment if there are two years or less remaining in the term. Ms.
Hokkanen provided a proposed timeline for publication of the vacancy, interview schedule, and
appointment date. Interviews were tentatively scheduled for Wednesday, January 18, 2023 at 5:30 p.m.
DISCUSS 2023 LEGISLATIVE PRIORITIES
City Manager Laurie Hokkanen explained that the city council annually adopts legislative priorities to
help the city be more responsive in terms on lobbying on issues that are important to the city. Proposed
changes for 2023 include reordering the issues in order of importance with Transportation being number
one, adding the Local Option Sales Tax, and Carver County Issue No. 13 which provides new pathways
to becoming a police officer or licensed deputy. Adoption of the 2023 Legislative Priorities is scheduled
for December 12, 2022 prior to the legislative session starting on January 3, 2023.
Mayor Ryan recessed the Work Session at 6:50 p.m.
Mayor Ryan resumed the Work Session at 7:10 p.m.
TREE POLICY DISCUSSION
Environmental Resource Specialist Jill Sinclair presented concerns as to whether or not the city’s tree
preservation ordinance was doing its job. This ordinance was adopted in 1994 because residents
expressed concern about tree loss with development. It was designed to be a comprehensive and
progressive approach focused on overall canopy cover, as well as allowing for flexibility to
accommodate different site conditions and development proposals. Canopy cover reflects the health and
viability of the community economically, environmentally, and socially. There is an opportunity to add
an amendment to the existing ordinance for heritage trees and revise our standards for tree removal. Ms.
Sinclair discussed that Chanhassen’s tree preservation city code is difficult to compare to other
communities due to differences in expectations. There is no perfect tree preservation ordinance;
however, all ordinances allow for excess tree removal and provide incentives for meeting requirements
or providing penalties for not meeting requirements. Ways to improve the existing ordinance include
reducing canopy cover removal allowed, increasing consequences, and adding heritage or legacy tree
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protection. Currently, the city’s ordinance allows a developer to go below the minimum which is most
applicable for properties with minimal existing canopy of low quality. Also, the ordinance may be too
lenient for high canopy cover sites. Changes could be to increase the penalty ratio or eliminate the
option to go below the minimum. Ms. Sinclair stated that heritage or legacy tree preservation codes are
based on a tree count method rather than a canopy cover method. Only trees of a certain size are
counted. Some communities only count tree certain species of certain sizes which leaves a large number
of trees unaccounted for and unprotected on wooded properties. A potential heritage tree addendum
would be that heritage trees 25” DBH and larger require no net loss of inches (1:1 replacement inches),
and applied to all construction sites in the city including development applications,
renovations/additions, lakeshore alterations, etc. Ms. Sinclair provided a sample ordinance application
with a heritage tree amendment and a minimum canopy standard. Ms. Sinclair recommended that the
city keep the existing canopy cover as the basis of the tree preservation ordinance, add a heritage tree
component, and increase the penalty for removing canopy in excess of minimum allowance or remove
allowance and only allow minimum or above.
Council discussed the current issues and proposed changes to the existing ordinance and directed staff to
obtain feedback from the Planning and Environmental Commissions as well as developers prior to
moving forward with an amendment. Ms. Hokkanen suggested that a draft proposal be created and
presented at a future work session.
DISCUSS LOCAL OPTION SALES TAX
City Manager Laurie Hokkanen reviewed the purpose of a local option sales tax (LOST) as an option to
fund regional park projects, specifically a public/private partnership with the developers of Avienda.
The developers have brought in an architect and are talking to other private partners in an effort to move
this partnership forward. The city hired the University of Minnesota Extension Office (UMEO) to do a
study on the potential proceeds of a LOST and who would pay the sales tax. Ms. Hokkanen introduced
Ryan Pesch, Extension Educator from the University of Minnesota Extension Center for Community
Vitality, who authored the study. Mr. Pesch discussed the data and reviewed the methods and approach
to attain the conclusions in the report, as well as highlighting portions of the report.
Ms. Hokkanen reviewed the process of establishing a LOST:
• City Council adopts a resolution indicating the city’s desire to ask constituents to consent to a
LOST
• Resolution submitted to the legislature to obtain approval
• Legislature approves request
• City holds referendum within two legislative seasons of receiving approval
o Each project must be regional and a separate ballot question
• If referendum passes, LOST can be implemented and tax can be collected for up to 20 years
If the council is interested in moving forward with a LOST, Ms. Hokkanen suggested the following
steps:
• Pass the resolution on December 12, 2022, prior to the legislative session beginning on January
3, 2023
• January to May – work with the legislature to get approval as well as working with the Avienda
partners to scope the project
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• Summer and fall – communicate to residents about the proposed project
• November 7, 2023 – hold a special election if we are ready
• November 5, 2024 – hold referendum in conjunction with the General Election if we were not
ready in 2023
Mayor Ryan provided feedback received from the park referendum process to the Avienda team of the
must-have facilities. They have been working with an architect on designing a building that would house
three ice rinks, a large turf facility, a walking track, meeting facilities, add an environmental element
using the terrain, and a restaurant component. No commitments have been made at this point but the
developers have ideas and are talking to private businesses that are interested in being involved in
leasing the space. The LOST is integral to making the partnership work.
Council discussed how the public/private partnership would work. Ms. Hokkanen stated that is a big
issue that would need to be worked out through a contract or joint powers agreement outlining what the
city would be entitled to with our contribution. Ms. Hokkanen asked for council input on moving
forward.
FUTURE WORK SESSION SCHEDULE
Date Item
December 12 • Work Session Cancelled
January 9 •
January 24 • Civic Campus Update
The work session adjourned at 8:40 p.m.
Submitted by Laurie Hokkanen
City Manager
Prepared by Kim Meuwissen
City Clerk