05-13-2024 City Council Work Session MinutesCHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
May 13, 2024
Mayor Ryan called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald,
Councilmember Kimber, and Councilmember von Oven
COUNCIL MEMBERS ABSENT: Councilmember Schubert
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Charlie Howley, Public Works Director/City Engineer; Eric Maass, Planning Director; Jerry
Ruegemer, Parks Director; Kelly Grinnell, Finance Director; Samantha DiMaggio, Economic
Development Manager, Erik Henricksen, Project Engineer, George Bender, Assistant City
Engineer
PUBLIC PRESENT: Erik Hansen, SW Transit CEO, Larry Koch, Prudy Busch, Jim Boetcher,
Bonnie Nelson, Edward Goff, and unknown resident
Interviews - Riley Purgatory Bluff Creek Watershed Board of Managers
The City Council held interviews with five candidates to the RPBCWD Board of Managers. Mayor
Ryan asked each candidate to introduce themselves and they did so. Candidates were: Larry Koch,
Prudy Busch, Jim Boetcher, Bonnie Nelson, and Ed Goff. Councilmember McDonald asked the
candidates how they would balance the interests of stakeholders. Councilmember von Oven asked
the candidates about the ideas they have for engaging residents and promoting awareness and
engagement. Councilmember Kimber asked the candidates to share their ideas for improving the
effort to protect and improve the quality of Chanhassen’s water resources. Mayor Ryan asked what
each candidate would envision their relationship with the city as a Board Manager.
SouthWest Transit Update
SouthWest Transit CEO Erik Hansen shared a presentation. Topics included ridership, the newly
adopted Strategic Plan, the future of SouthWest Transit, and the need for sustainable revenue. Mr.
Hansen shared that in 2023, ridership remained at half of pre-pandemic levels; ridership has grown
9% in 2024. SouthWest Transit has a good public perception among those who have an awareness
of the organization/service. Top pick-up locations in Chanhassen include Target, MAMAC
Systems, Powers Ridge Senior Living, Chanhassen Goodwill, and Chanhassen Village
Apartments. Event service has been popular, with trips to events like Twins game, Chanhassen
High School state tournament games, concerts, and the State Fair. SouthWest Transit has only been
allocated 2% of the newly imposed state sales tax and is seeking a more stable funding formula.
That would allow SouthWest Transit to explore other needs, like additional evening and weekend
service. Councilmember McDonald and Councilmember Kimber serve on the Southwest Transit
Board to represent Chanhassen. Mr. Hansen thanked city staff for their help with introductions,
planning, and visioning. Mayor Ryan thanked Mr. Hansen for his service and efforts, as did
Councilmember McDonald and Councilmember Kimber. Mayor Ryan also noted how important
the availability of transit is to Chanhassen’s senior population. Councilmember von Oven asked
questions about funding sources, uses, and passenger subsidies.
City Council Work Session Minutes – May 13, 2024
2
Civic Campus Budget Update
City Manager Laurie Hokkanen shared an update on the Civic Campus budget. Ms. Hokkanen
noted value management items that would be implemented in order to maintain the project
budget, including reductions in AV technology in City Hall, a change to the fire suppression
system in the IT closet, and light fixture changes. Ms. Hokkanen noted that bids will consider
awarding bid package #2 on May 20, 2024.
Mayor Ryan recessed the meeting at 6:55 p.m.
Mayor Ryan resumed the meeting at 8:01 p.m.
Streets Funding Discussion
Engineering staff Erik Henricksen, George Bender, and Charlie Howley gave a presentation
about the Pavement Management Program and Assessment Policy, noting that the City Council
had made this discussion a priority for 2024 in response to ongoing resident and City Council
concerns about road conditions and future planning. Staff provided an overview of the work and
city approach since the Franchise Fee was adopted in November 2019. Councilmember
McDonald said that he wanted Engineering to recommend the best approach to pavement
management. He said he was very interested in considering a change to the city’s assessment
policy, including a 0% or 20% assessment. He also noted that the City Council would need to
understand the impacts to the budget and the ability to complete road work and suggested
exploring not assessing for mill and overlay projects. Councilmember von Oven said that he
thought the assessment policy was as fair as it could be but wanted to continue to press to
provide residents as advance notice and time to plan for assessments as possible and would like
to see if even more notice than the current one-year is possible. Councilmember Kimber
expressed interest in the concept of a flat fee and shared that he would like to consider not
assessing new sidewalks or trails as part of road projects. Mayor Ryan asked staff what it would
take to get the very roads done in terms of cost and timing and shared that she does not believe
having roads in very poor condition is acceptable for our city. She also noted she would not
support an increase to the franchise fee. The City Council expressed support for reducing the
interest rate charged to as low as possible to cover the city’s cost. Staff indicated they would use
the feedback to further research and refine suggestions and return to a future work session, likely
in June or July.
The City Council discussed the current assessment on the 2024 Street Project, specifically a
proposal to reduce the assessment to single-family property owners. Mr. Howley and Ms.
Hokkanen explained that residents are told that the preliminary assessment amount is generally
within plus or minus 10% for the final assessment. In this case, the assessment was much more.
The City Council directed staff to process a new assessment amount 10% greater than the
preliminary assessment amount and noted that this was an unusual circumstance. Mr. Howley
also committed to re-looking at the Chapel Hill Academy assessment. Staff shared that
commercial and residential projects will not be packaged together in the future due to the
additional complexity.
City Council Work Session Minutes – May 13, 2024
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Chanhassen Bluffs Sports Complex – Discussion
Ms. Hokkanen provided an overview of the latest work on the Chanhassen Bluffs Sport
Complex/Community Center. Ms. Hokkanen shared design concepts prepared by the BKV
Group, including a two-phase concept to reduce initial construction costs. Finance Director Kelly
Grinnell presented levy impacts for two build scenarios. The City Council discussed the pros and
cons of phasing the project. Councilmember Kimber noted that projects do not get cheaper over
time. Councilmember McDonald said that the phasing made the project less of a community
center and more of a special-purpose facility. Consensus was reached that the project should not
be phased, and the Council provided direction to staff to pursue the levy smoothing option to
mitigate any levy spikes.
Interviews - Riley Purgatory Bluff Creek Watershed Board of Managers
The City Council resumed discussing the Riley Purgatory Bluff Creek Watershed District
nomination. Each member shared their list of three preferred nominees. Consensus existed on
Bonnie Nelson. Councilmember von Oven disclosed that he is Andrew Aller's neighbor.
Councilmember von Oven stated that it is important that the city have a strong relationship with
the watershed district. Mayor Ryan noted that the city’s practice is to appoint new members if a
member has already served two terms and qualified applicants exist. The City Council directed the
City Manager to forward to Carver County the following nominees: Bonnie Nelson (preferred
candidate), Andrew Aller, and Edward Goff, and to notify all candidates of their status and thank
them for their interest.
Mayor Ryan adjourned the meeting at 10:07 p.m.
Submitted by Laurie Hokkanen
City Manager
Prepared by Jenny Potter
City Clerk