01-08-2024 City Council Work Session MinutesCHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
JANUARY 8, 2024
Mayor Ryan called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilman von Oven,
Councilwoman Schubert, and Councilman Kimber.
COUNCIL MEMBERS ABSENT: None.
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie
Howley, Public Works Director/City Engineer; Eric Maass, Planning Director; Jerry Ruegemer, Park and
Recreation Director; Rick Rice, IT Manager; Kelly Grinnell, Finance Director; Ari Lyksett, Communications
Manager; and Kim Meuwissen, City Clerk.
PUBLIC PRESENT:
Trace Jacques, BKV Group
Paul Michell, BKV Group
Mike Healy, BKV Group
Dustin Phillips, Kraus-Anderson
Dan Kjellberg, Kraus-Anderson
Bryan Harjes, HKGi
Judy Harder, 541 West 78th Street
CIVIC CAMPUS UPDATE
Dustin Phillips of Kraus-Anderson introduced the presentation and reviewed the agenda including a review
of the design development budget, high-level design and development progress, next steps, and scheduling.
Civic Campus Budget
Mr. Phillips noted that the current project is $1.9 million over budget (approximately 5%), which is not
uncommon in the industry at this stage. The elevator component was not included in the current design. Mr.
Phillips presented options to mitigate the budget overage, including design and construction contingencies,
interior and exterior finish options for the Park Pavilion building, potential use of fund balance and utility
funds, and additional park dedication fees.
Civic Campus Site Plan Design and Development
Bryan Harjes of HKGi presented the entire Civic Campus project site plan. A question was asked about the
drainage of the performance space turf area. Mr. Harjes responded that this area is a highly engineered
system, similar to an athletic turf system. A question was asked about the seating that was previously
proposed on the grassy hillside area north of the performance area. Mr. Harjes responded that, due to value
engineering, the seating was removed; however, the lower ledge will remain for seating. This plan change
resulted in a cost savings of $70,000.
Park Pavilion Building, City Hall Design, and Council Chamber Design
Trace Jacques of BKV Group reviewed the park pavilion building and the value engineering changes made
by shortening the height of the building and reducing the square footage of the building.
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Mr. Jacques next reviewed design improvements to the city hall/senior center and the council chambers. Four
council chamber design options were presented.
Next Steps
Dan Kjellberg of Kraus-Anderson reviewed the next steps and the recommended path. Bid Package 1 (site
and structure) and Bid Package 2 (remaining items) schedules were presented, which would allow
construction to begin in June.
Questions
Mr. Phillips asked for council questions and preferences.
Mayor Ryan asked the council to provide their preference for the council chamber design.
After discussion, the council agreed on Option 4 with the council dais (seven seats) on the north wall with
staff located along the west window (six seats). In support of the option, City Manager Laurie Hokkanen
added that staff should be viewable and grouped as a team, even if they aren’t presenting. The audience
seating arrangements were discussed. Access from the conference room to the council chambers was
reviewed and discussed, as well as security measures for the council. The consultant was directed to move
forward with Option 4.
Civic Campus Budget Discussion
Mayor Ryan asked the council if they were comfortable with the $1.9 million budget overage or if a budget
reduction should be sought. Councilman McDonald, Councilman von Oven, and Councilman Kimber were
comfortable with the overage and wished to move forward with the design as presented due to the value of
all the project elements. The $2.2 million design/construction contingencies were discussed. Councilwoman
Schubert and Mayor Ryan had concerns about the overage. Mayor Ryan shared Councilwoman Schubert’s
thoughts and inquired about the bonding amount. City Manager Laurie Hokkanen responded that the project
costs were $33 million, and the bond issue limit was $35 million based on forecasting and the concept plan.
She added that there are no scenarios where the tax levy would be impacted. The additional funding options
were discussed. Council expressed concern about the number of available restrooms in the Park Pavilion and
suggested that additional restrooms be added or possibly be phased in.
Mr. Phillips reviewed the bidding climate, what is included in Bid Package 1, the schedule that would allow
construction to start in June 2024, and strategic alternates. Mayor Ryan asked what direction is needed from
the City Council today and if there would be enough time for the council to review the strategic alternates.
Mr. Phillips responded that the strategic alternates were all related to Bid Package 2. They would like to
receive direction from the City Council by the end of January. Mayor Ryan stated that the council is ready to
move forward with Bid Package 1, but she would like to meet with staff to discuss alternate funding options;
however, the council should be ready to provide further direction at the January 22, 2024, City Council work
session. Public Works Director/City Engineer Charlie Howley stated that there is a goal to design a water
reuse regional BMP as part of the upcoming Market Boulevard improvement project in order to receive
stormwater credits that would eliminate the need for on-site ponding on the Civic Campus site, which would
cost nearly $1 million.
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DISCUSS 2024 COUNCIL PRIORITIES
Mayor Ryan reviewed the following 2024 City Council priorities:
• Civic Campus
• Chanhassen Bluffs Sports Complex
• SAC/WAC Fees
• Roads/Infrastructure
• Downtown Development/Redevelopment
• Internet
Councilwoman Schubert added that we need a long-term plan with the Carver County Sheriff’s Office,
review Fire Department staffing, and update the city code for improved clarity.
DISCUSS 2024 LEGISLATIVE PRIORITIES
Mayor Ryan asked the council if they had any feedback on the 2024 Legislative Priorities and there was
none.
Mayor Ryan also reminded the council that the strategic plan will expire next year.
FUTURE WORK SESSION SCHEDULE
January 22, 2024
• Gorra Property Discussion
• Civic Campus Update
• Chanhassen Bluffs Sports Complex Update
• Discuss Development of Property located at 320 Lake Drive East
February 12, 2024
• Downtown Traffic Study Update
• Civic Campus Design Updates
• Lake Ann Lifeguard Discussion
February 26, 2024
• Commission Interviews
• 82nd Street Design Team Presentation
March 11, 2024
• Commission Interviews
• Discuss Commission Appointments
• Downtown Design Guidelines and Wayfinding Plan Review
Mayor Ryan adjourned the work session at 6:55 p.m.
Submitted by Laurie Hokkanen
City Manager
Prepared by Kim Meuwissen
City Clerk