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02-12-2024 City Council Regular Meeting MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES FEBRUARY 12, 2024 Mayor Ryan called the meeting to order at 7:04 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilwoman Schubert, Councilman von Oven, 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; Sam DiMaggio, Economic Development Manager; Kelly Grinnell, Finance Director; Ari Lyksett, Communications Manager; Mitchell Czech, Recreation Supervisor; Priya Tandon, Recreation Manager; Rachel Jeske, Planner; Andrea McDowell Poehler, City Attorney; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Jessica Bliss, 7333 Hazeltine Boulevard Bruce Geske, 7325 Hazeltine Boulevard PUBLIC ANNOUNCEMENTS: None. CONSENT AGENDA: Councilman McDonald moved, Councilman Kimber seconded that the City Council approve the following consent agenda items 1 through 10 pursuant to the City Manager’s recommendations: 1. Approve Special City Council Work Session Minutes dated February 5, 2024 2. Approve City Council Minutes dated January 22, 2024 3. Receive Park and Recreation Minutes dated December 12, 2023 4. Receive Commission on Aging Minutes dated November 17, 2023 5. Approve Claims Paid dated February 12, 2024 6. Approve Professional Services Agreement with SEH, Lake Ann Park Preserve 7. Approve Application from Southern Valley Alliance to Conduct Excluded Bingo at Chanhassen Brewing Company located at 951 West 78th Street City Council Minutes – February 12, 2024 2 8. Approve Contract for Services with BKV Group for Chanhassen Bluffs Sports Complex 9. Resolution 2024-08: Approve Application for Funding from the Carver County Community Development Agency Community Growth Partnership Initiative Grant Program 10. Resolution 2024-09: Accept Bids and Award Contract for the 2024 Sealcoat Project All voted in favor, and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. None. PUBLIC HEARINGS. 1. Approve On-Sale Beer & Wine Liquor License for Life Time Pickleball located at 2970 Water Tower Place Assistant City Manager Matt Unmacht presented the request of Life Time Club Operations Company, Inc. dba Life Time Pickleball, for an on-sale beer and wine liquor license at 2970 Water Tower Place. He described the size of the restaurant, which is anticipated to open in March of 2024, noting the applicant is required to comply with city code regarding liquor service on the outdoor patio. Mr. Unmacht stated that there was nothing questionable related to the background investigation, the certificate of insurance has been submitted, staff has not received any comments from the public, and staff recommends approval. Mayor Ryan opened the public hearing. There were no public comments. Mayor Ryan closed the public hearing. Councilman von Oven moved, Councilwoman Schubert seconded that the City Council approve the application for an on-sale beer and wine liquor license for Life Time Pickleball located at 2970 Water Tower Place. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. GENERAL BUSINESS. 1. Short-Term Rental Ordinance with Program Review and Listening Session City Planner Rachel Jeske described the City Council’s past consideration of a short-term licensing program and rental ordinance that was implemented in 2022. She provided an overview of the current ordinance and stated the city has issued 20 licenses in 2023 with 22 active licenses in 2024. The city uses Host Compliance software to track licensed and unlicensed rentals within the city with the software costing $3,303.83, offset by license revenue of $1,600 with another $3,000 in revenue expected. She reviewed complaints received in 2023, violation notices, and City Council Minutes – February 12, 2024 3 violation types, and contrasted the City of Chanhassen’s Ordinance with the cities of Golden Valley, Plymouth, and Eden Prairie. Staff is proposing a change to the maximum overnight vehicle parking standards to allow four vehicles across the board, and a second change that if the license is revoked, the period of revocation should be decreased from seven years down to one year, which would still be the most stringent of surrounding cities. In 2025, staff proposed that all licenses be renewed annually on the same day, February 1. Staff requests feedback regarding the revocation date aligning with the calendar year or the licensing period, as well as whether the City Council would like to continue monitoring through Host Compliance software. Councilman Kimber asked whether the three strikes were based on the calendar year or within the license period. Ms. Jeske replied it was based on the license period. Councilman McDonald asked if someone gets three strikes in a year, are they disqualified from receiving a license the following year? Staff replied in the current ordinance that if a license is revoked after three strikes, one cannot renew a license for seven years. Staff is proposing that changes to one year. Mayor Ryan asked if a renter remedies a violation within 24 hours, is it still considered a violation? Planning Director Eric Maass explained the Host Compliance software is meant to gain near-immediate compliance. With a complaint, it notifies the 24-hour manager for that property who then responds through various apps and technologies. If the renter remedies the complaint, there is a resolution. Mayor Ryan would like to discuss the matter further in the future to address renters who might continually disobey the rules. Mayor Ryan opened the listening session on the short-term licensing program and invited the public to comment. Jessica Bliss, 7333 Hazeltine Boulevard, commented on a neighboring short-term rental she has had issues with, noting the limit with overnight guests and the problem with daytime guests getting close to 20 people. One issue with her property is the shared driveway with no off-street parking; daytime guests blocking the driveway, parking in the turnout, and parking on Ms. Bliss’ grass, which is all documented and has been sent to the city. In the evenings, the renters shuffle cars to other neighborhoods, which results in the constant moving of cars with headlights in her house causing her dog to bark. Ms. Bliss explained that she has young children and must get up early in the morning for work and school. She spoke about party buses in the driveway with inebriated people getting off the bus at the property at 2:00 a.m. Ms. Bliss noted two violations for overnight parking with one additional third complaint being made past 10 p.m. but a violation was not issued. Ms. Bliss asked for more clarity as she thought if she reported it, then it was a violation, but now it sounds like if it is reported and the renters fix it, then it is not a violation. At that point, Ms. Bliss felt like a property babysitter for the house and asked where the prevention is. She restated that the number of cars is an issue and asked what happens if she cannot get out City Council Minutes – February 12, 2024 4 of her house or if emergency vehicles cannot get to her house. Currently, she has to log in to a web platform and then wait for the people to move their cars just so she can leave her house. Also, when a license is renewed, the violations will be wiped from their record and they will be able to do these things all over again the following year. Ms. Bliss believes short-term rentals devalue neighborhoods, noting the people renting are on vacation, hosting events, and likely do not have to get up early to get ready for work or take children to school. Renters do not care about disruptions such as noise, trash issues, and traffic coming to and from the rental. She suggested a daytime parking limit, changes to the number of individuals allowed to stay at the house, enforcing a minimum night stay such as three days, and that violations should be cumulative regardless of licensure year, so a property is not able to rent with violations year after year. Ms. Bliss noted the shared driveway must be kept clear, as she is on-call for emergency surgeries and does not have time to log on to a web platform to make a complaint as she must report for work within 30 minutes. She described off-leash dogs that come onto her property and defecate in her yard and noted the ordinance does not address these animals. Bruce Geske, 7325 Hazeltine Boulevard, stated that he is a neighbor of Ms. Bliss and also has concerns. He stated that he recently saw a toddler on a scooter coming down the path as someone came barreling down the driveway and almost hit the toddler. Mr. Geske’s concern is that the city will suffer the worst from someone being hit on the path as the renters are reckless, careless, and do not have one bit of concern over anything – they pay their fee to use the property and do not care. Mr. Geske believes this property has gotten out of hand and there are no tough consequences for the owners. He does not believe the city’s restrictions are tough enough at this point. Mayor Ryan closed the listening session. Following the listening session, Mayor Ryan proposed a work session to look further into the short-term rental program and to evaluate some of the suggestions brought forth by the public. Councilman von Oven noted the same property has been in question and he is 100 percent behind giving more teeth to the restrictions. He asked if the item is tabled tonight, what effect does that have on the property’s ability to renew its license? Mayor Ryan clarified it would not be tabled but brought to a work session for discussion and a recommendation may be made to Mr. Maass to go through the channels of updating the ordinance. Mr. Maass clarified that upon adoption of a new ordinance or amendment, the ordinance at that time would apply to the licenses in place. City Attorney Andrea McDowell-Poehler spoke about the current ordinance, which has language addressing three violations within a 365-day period. She clarified the minute one gets the first violation, the 365 days would start, which gives the most opportunity to catch the three City Council Minutes – February 12, 2024 5 violations and move into the next licensed year. She advised that with each license, those violations would not go away. Councilman Kimber clarified if a short-term rental renews their contract with two strikes, depending on the date of violations, those two strikes may still be active. Attorney McDowell-Poehler replied in the affirmative. The City Council agreed to bring the item to a work session. COUNCIL PRESENTATIONS. None. ADMINISTRATIVE PRESENTATIONS. 1. Receive the 2023 Economic Development Annual Report CORRESPONDENCE DISCUSSION. None. Councilwoman Schubert moved, Councilman McDonald seconded to adjourn the meeting. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 7:39 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk