01-23-2023 City Council Regular Meeting MinutesCHANHASSEN CITY COUNCIL
REGULAR MEETING
MINUTES
JANUARY 23, 2023
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, Councilman McDonald, Councilman von
Oven, Councilman Kimber.
COUNCIL MEMBERS ABSENT: Councilwoman Schubert.
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Kelly Grinnell, Finance Director; Charlie Howley, Director of Public Works/City Engineer;
Andrea McDowell-Poehler, City Attorney; Jerry Ruegemer, Park and Recreation Direction; Ari
Lyksett, Communications Manager; Rick Rice, IT Manager; Sharmeen Al-Jaff, Senior Planner;
Don Johnson, Fire Chief; Lance Pearce, Police Lieutenant; MacKenzie Young-Walters,
Associate Planner; and Kim Meuwissen, City Clerk.
PUBLIC PRESENT
Councilman Josh Kimber’s Family, 7050 Lucy Ridge Lane
Tom Madden, 19260 Lake Avenue, Deephaven (e-cig POD owner)
Zac Gleason, Hackamore Brewing Company
Jake Gleason, Hackamore Brewing Company
Jessica Cook, Ehlers Public Finance Advisors
Kyle Sawyer, Ehlers Public Finance Advisors
OATH OF OFFICE
1. Oath of Office – Josh Kimber
Attorney McDowell-Poehler led Josh Kimber in the Chanhassen City Council Oath of Office.
PUBLIC ANNOUNCEMENTS
1. Invitation to February Festival
Mayor Ryan invited the public to attend the 30th Annual February Festival. FebFest will be held
on Saturday, February 4th from 12-3pm on Lake Ann and the public is invited for horse-drawn
wagon rides, kicksledding, snowshoeing, bonfires, door prizes, ice fishing contest, hot
concessions, and a Medallion Hunt.
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CONSENT AGENDA: Councilman McDonald moved, Councilman von Oven seconded
that the City Council approve the following consent agenda items pursuant to the City
Manager’s recommendations:
1. Approve City Council Minutes dated January 9, 2023
2. Approve City Council Special Meeting Minutes dated January 18, 2023
3. Receive Environmental Commission Minutes dated December 14, 2022
4. Receive Economic Development Commission Minutes dated December 14, 2022
5. Receive Planning Commission Minutes dated December 6, 2022
6. Approve Claims Paid January 23, 2023
7. Resolution 2023-07: Authorize 2023 Fleet Purchases
8. Resolution 2023-08: Approve a Cooperative Construction Agreement with MnDOT for the
TH41 Improvement Project
9. Resolution 2023-09: Accept Feasibility Study and Call Public Improvement Hearing for the
2023 City Pavement Rehabilitation Project No. 23-01
10. Resolution 2023-10: Accept Feasibility Study and Call Public Hearing for 2023 City Mill &
Overlay Project No. 23-04
All voted in favor and the motion carried unanimously with a vote of 4 to 0.
VISITOR PRESENTATIONS
Tom Madden, 19260 Lake Avenue, Deephaven, owns e-cig POD next to Party City in
Chanhassen. He came to the City Council tonight to apologize for an employee who sold a
product to a minor last month. Mr. Madden found out the night it happened and the employee
was fired that night. The next day Mr. Madden began drafting ID protocol which employees sign
and date; if they break the protocol they are fired on the spot.
FIRE DEPARTMENT/LAW ENFORCEMENT UPDATES
1. Monthly Fire Department Update
Fire Chief Johnson updated the council on stats from December noting they are running with 27
paid on-call firefighters with 9 working full time. Chief Johnson shared that part-time firefighter
applications are open with interviews in mid-February. In December the department had 135
calls for service and participated in a mutual-aid fire in Minnetonka. They also had 80 responses
for EMS within Chanhassen. Preliminary year-end data is 1,202 calls which is a record and
shows an 11.5% increase over 2021. Chief Johnson shared that the fire department is working
with General Mills to run a full functional exercise for training in 2023.
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2. Law Enforcement Update
Lt. Lance Pearce updated the council noting in December they had 11 Type A crimes, 37 Type
B, 326 miscellaneous non-criminal events, and 323 traffic-related events. Non-criminal activity
included suspicious activity calls and he shared they are seeing a decrease in medical responses
for the Sherriff’s Office due to the new matrix with the Fire Department. The number of
domestic incidents remained constant and they had 19 mental health calls in December.
PUBLIC HEARINGS
1. Approval of Small Brewer Off-Sale and On-Sale Brewer Taproom Liquor Licenses for
Hackamore Brewing Company located at 18651 Lake Drive East
Assistant City Manager Unmacht noted the city received a request from Hackamore Brewing
Company and presented the staff report. The Brewery is anticipated to open in March 2023.
Background investigations were performed on the five partners of the company which Lt. Pearce
reviewed and note nothing questionable related to state statute. Staff has not received comments
from the public and is recommending approval.
Mayor Ryan opened the public hearing. There were no public comments.
Mayor Ryan closed the public hearing.
Councilman von Oven moved, Councilman McDonald seconded that the City Council
approve the request for off-sale small brewer and on-sale brewer taproom liquor licenses
from Hackamore Brewery LLC, dba Hackamore Brewing Company contingent upon
receipt of the annual license fee of $600 and liquor liability insurance associated with the
application. All voted in favor and the motion carried unanimously with a vote of 4 to 0.
2. Resolution 2023-11: Consider a Request for Approval of a Metes and Bounds
Subdivision at 6730 Golden Court
Associate Planner Young-Walters gave a presentation noting the applicant is proposing to split a
1.17-acre parcel into two single-family lots. Both parcels meet standards of the city code, and the
applicant will need to remove the existing driveway across Parcel A to bring it into compliance.
The applicant is proposing 58% tree canopy coverage which exceeds the city’s threshold, and a
park dedication fee will be required for the new lot.
Director of Public Works/City Engineer Howley noted the site has adequate access to public
water and sanitary services. He shared about a small wetland on site, setbacks, and stormwater
design, and stated that the project looks good from an engineering perspective.
Mr. Young-Walters noted staff recommends approval.
Mayor Ryan opened the public hearing. There were no public comments.
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Mayor Ryan closed the public hearing.
Councilman McDonald moved, Councilman Kimber seconded that the Chanhassen City
Council adopt a resolution approving a Metes and Bounds subdivision creating two single-
family lots subject to the conditions of approval and adopts the Findings of Fact. All voted
in favor and the motion carried unanimously with a vote of 4 to 0.
GENERAL BUSINESS
1. Ordinance 703: Establishing City Fees and Charges for 2023
Finance Director Grinnell said included in the fee schedule are quarterly and monthly utility fees;
prior to setting these fees the city engaged Ehlers Associates to conduct a rate study.
Jessica Cook of Ehlers Associates presented the results of the rate study noting the Avienda
development is being included in the study due to the significant impact and growth for the
community. The previous rate study was in 2020 and over the last two years the Capital
Improvement Plan has been scrutinized, updated, and reflects the new emphasis on road
replacement in the community. Ms. Cook shared Met Council expenses from the city and noted
that, based on historical increases from the Met Council, Ehlers assumes their rates will go up
6%. She shared about personnel costs going up 5%, and other non-personnel costs going up 3%
which were the key assumptions in the rate study. Ehlers recommends maintaining the 5% rate
increases for water in 2023 and 2024; for the sewer utility Ehlers projects the need for 8.5% rate
increases in 2023 and beyond. Ms. Cook noted costs for stormwater management go up every
year due to environmental regulations and state requirements. For 2023 Ehlers recommends a
rate increase of 15% through 2025 then scaling back in subsequent years.
Mayor Ryan asked Mr. Howley what the city’s approach is when they look at stormwater
projects within a road project.
Mr. Howley explained stormwater covers anything regarding pipes in the street, catch basins,
ponds within neighborhoods, and the people it takes to manage those. He stated if something
goes wrong in water or sanitary sewer it is very serious so cities have paid attention to
maintenance and upkeep of those two things. Regarding storm sewer within the city, a lot of
infrastructure was put in back in the 1980s and 1990s during a high-growth time and have been
neglected over time. The city has needed to repair a lot of the infrastructure over time and as a
result are now paying much more attention to stormwater than in the past. During road repairs,
the city will fix the infrastructure during the project. Mr. Howley noted there is a lot of need and
the city is very strategic about what they do with road projects and pond projects.
Ms. Cook shared a sample slide showing a residential bill and explained the increases per quarter
for someone using 26,000 gallons of water/quarter. She also showed a sample commercial bill
for a property using 50,000 water/sewer per quarter.
Councilman von Oven asked staff to clarify that stormwater is impactful on lakes in terms of
water clarity, nutrients, etc.
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Mr. Howley replied yes, absolutely the pipes go to treatment facilities such as ponds, and that
water is then treated before being discharged into the lakes. Money spent on stormwater does
impact the lakes in the city.
Councilman McDonald moved, Councilman von Oven seconded that the Chanhassen City
Council adopts an ordinance establishing the City Fees and Charges for 2023. All voted in
favor and the motion carried unanimously with a vote of 4 to 0.
2. Resolution 2023-12: Supporting the Authority to Hold a Referendum to Impose a Local
Sales Tax to Fund Specific Capital Improvements Providing Regional Benefit
City Manager Hokkanen noted this is a required step in the process to consider a local sales tax
and must be submitted by January 31 to the state legislature to be considered. The local sales tax
would be a funding source for a public/private partnership for a recreational facility to be located
at Avienda; a one-half percent sales tax would generate $35-$40,000,000 over a 20-year period.
If the city council adopts the resolution, it must also be approved by the legislature, and then
approved by the voters via referendum. Passing the resolution tonight would not obligate the city
council to carry it forward to referendum but is a required step in the process.
Councilman McDonald moved, Councilman Kimber seconded that the Chanhassen City
Council adopts a resolution supporting the authority to hold a referendum to impose a
local sales tax to fund specific capital improvements providing regional benefit. All voted in
favor and the motion carried unanimously with a vote of 4 to 0.
COUNCIL PRESENTATIONS: None.
ADMINISTRATIVE PRESENTATIONS: None.
CORRESPONDENCE DISCUSSION
1. Business Retention & Expansion Program Intro Letter
2. Rotary Club of Chanhassen Certificate of Appreciation - End Polio Now
Councilman von Oven moved, Councilman Kimber seconded to adjourn the meeting. All
voted in favor and the motion carried unanimously with a vote of 4 to 0. The City Council
meeting was adjourned at 8:04 p.m.
Submitted by Laurie Hokkanen
City Manager
Prepared by Kim Meuwissen
City Clerk