CC SUM 2021 10 25CHANHASSEN CITY COUNCIL
REGULAR MEETING
MINUTES
OCTOBER 25, 2021
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, Councilwoman Rehm, Councilwoman
Schubert, Councilman McDonald.
COUNCIL MEMBERS ABSENT: Councilman Campion.
STAFF PRESENT: Laurie Hokkanen, City Manager; Charlie Howley, Director of Public
Works/City Engineer; Don Johnson, Fire Chief; MacKenzie Young-Walters, Associate Planner;
Jerry Ruegemer, Parks and Recreation Director; and Kelly Strey, Finance Director.
PUBLIC PRESENT:
Mark Nordland Level 7 Development, 4600 Kings Point Road, Minnetrista
Rick Denman Charles Cudd Company,15050 23rd Ave N, Plymouth
Wong Nystrom Enterprise Fleet Management
Mayor Ryan asked the City Council if there were any modifications or additions to the agenda.
After the roll call vote there were no changes to the published agenda.
PUBLIC ANNOUNCEMENTS:
1. Invitation to Halloween Party, October 30
Mayor Ryan invited the public to the 37th Annual Halloween Party on Saturday, October 30,
2021 for an evening of fun. Children 12 and under are invited to trick-or-treat, carnival games,
hayrides , crafts, magic show, and more at the Chanhassen Recreation Center from 5:30-7:30 p.m.
Please register online or in-person at the event. The fee is $6 per child.
Mr. Ruegemer shared some of the fun social media posts the Communications Department has
done in the past weeks, noting they are incorporating more video into their posts. He showed the
City Council some of the videos advertising the Halloween Party on screen.
CONSENT AGENDA: Councilman McDonald moved, Councilwoman Schubert seconded
that the City Council approve the following consent agenda items pursuant to the City
Manager’s recommendations:
1. Approve City Council Minutes dated October 11, 2021
City Council Minutes – October 25, 2021
2
2. Receive Planning Commission Meeting Minutes dated October 5, 2021
3. Receive Senior Commission Minutes dated September 17, 2021
4. Receive Economic Development Commission Minutes dated September 14, 2021
5. Receive the Environmental Commission Minutes dated September 8, 2021
6. Approve Claims Paid October 25, 2021
7. Approve a Development Contract for Site Grading - Erhart Farm (Black Cherry
Development, LLC)
8. Approve a Massage Therapy Business License for Spalon Montage
9. Resolution 2021-60: Authorize Contract for Design Services for the 2022 Street
Improvement Project
10. Resolution 2021-61: Accept a Donation from T-Mobile for October 2021 Halloween
Party
11. Resolution 2021-62: Power Hill Park Trail Repairs
12. Resolution 2021-63: Approve Purchase of 2021 Microsoft Office365 User Licenses
13. Approve a Request for an Amendment to Interim Use Permit (IUP) to Amend the
Completion Deadline, Haul Route and Storage Area as Part of the Wetland Modification
for Black Cherry Development
All voted in favor and the motion carried unanimously with a vote of 4 to 0.
VISITOR PRESENTATIONS. None.
FIRE DEPARTMENT/LAW ENFORCEMENT UPDATE
1. Monthly Fire Department Update with Response Data from September
Chief Don Johnson said they are sitting at 36 firefighters with one on personal leave and one on
extended military leave. Since the last meeting he has had one retirement and one resignation.
The department responded to 117 calls in September and year-end projections move closer to
1,070 calls which is about a 6.2% increase over 2019 (he does not like to compare 2020 data as
Covid changed the aspects of how the Fire Department responded). 78 calls were rescue/EMS
with 7 motor vehicle accidents, one fire response to a home on Lake Point Road, two
unauthorized burning incidents called in to 911 and one citizen burning complaint. Lieutenant
City Council Minutes – October 25, 2021
3
Pearce and Chief Johnson have been working with the dispatch center about medical response.
He noted several staff attended the unmanned aerial vehicle pilots training from the City and will
get their pilots licenses soon. Assistant Chief White worked with the Communications team to
create a virtual learning tool in place of the fire prevention week activity. Some members of the
fire department also did some continuing education.
2. Law Enforcement Update for September
Lieutenant Pearce was not present to provide a report. Mayor Ryan asked the City Council to
read the report in the packet and reach out with questions.
PUBLIC HEARINGS
1. Resolution 2021-64: Certification of Delinquent Sewer and Water Accounts to the
County Auditor
Finance Director Kelly Strey stated that every year the City is able to certify any delinquent
water and sewer accounts to property taxes; if they are unpaid the City does not turn off water
but instead certifies the balances to property taxes. The list is included in the packet with 151
accounts for a total of $103,000.
Mayor Ryan opened the public hearing.
Mayor Ryan closed the public hearing.
Councilman McDonald moved, Councilwoman Rehm seconded that the Chanhassen City
Council adopts a Resolution certifying delinquent utility accounts to the County Auditor.
All voted in favor and the motion carried unanimously with a vote of 4 to 0.
GENERAL BUSINESS
1. Consider a Request for Preliminary Plat Approval for Avienda Townhomes
Associate Planner Young-Walters gave a presentation and shared that the first part of the
Avienda development went before the Planning Commission for a public hearing on October 5,
2021. The request is to subdivide outlots A and C into 39 lots and 6 outlots. One goal of the
development is to have a transition area buffering the single-family neighborhood to the west
from the higher-density commercial use and apartments. This section of the development was
given a density of 3-6 units/acre and comes in at 3.8 units/acre and provides that transition zone.
Lot sizes average about 5,000 square feet on the north and 6,000 square feet for the section on
the south. Three larger lots are highlighted which are the common lots around the houses and
will be platted as outlots. The housing project is all luxury detached townhomes; grading is
underway on the site and the preliminary plans are in general conformance with City ordinance.
A retaining wall is proposed on the north which will likely be over four feet high; therefore, they
City Council Minutes – October 25, 2021
4
will need to pull a building permit and have an engineer design the wall. Two private streets are
proposed, public street design conforms to City standards.
Mayor Ryan asked about the public and private streets: regarding private street S, will there be
one-ways in and out? Her concern with the exit to the west is the proximity to that roundabout.
Charlie Howley, Director of Public Works/City Engineer, replied that right now the private
streets are not planned to be one-ways. They will be 28 feet wide with only one side of the street
designated for parking. Private Street S is one of the main design points that is still open for
resolving with the Engineer and it is the proximity of that connection with Bluff Creek
Boulevard. He noted Staff feels the same way as Mayor Ryan and would like to learn a bit more
about how it will look, volumes proposed, and how operations of the roundabout look during
peak hours. He clarified Private Street S is only a right-in, right-out.
Mayor Ryan asked during high shopping times such as Christmas, would they have a parking
permit for the street.
Mr. Howley replied Bluff Creek and Avienda would be no parking. He said technically for the
collector roads someone could park there and walk across. The developer may want to think
about that and address it first.
Mayor Ryan asked about drainage between the existing homes.
Mr. Howley is curious to see the outcome of the neighborhood meeting, he thinks that common
property line will get looked at for drainage.
Applicant Mark Nordland noted Level 7 Development is very excited for this project and they
are very close to being done with earthwork and will begin construction of utilities on site. There
will not be pavement on any roads until mid-summer of 2022. They had hoped to have a couple
of model homes started this fall but were unable to get there. Mr. Nordland noted they had a
great neighborhood meeting. In order to grade the property line they would have had to tear out
existing landscaping and plantings. The privacy between the backyards of the new and existing
homes is much better with a proposed berm.
Rick Denman, Charles Cudd Company, is very excited about Avienda, it is a walkable
community and this is targeted as an empty-nester product.
Councilwoman Schubert moved, Councilman McDonald seconded that the Chanhassen
City Council approves the subdivision of 40 acres into 39 lots and 6 outlots, Avienda
Townhomes plans prepared by Landform dated September 8, 2021, subject to the
conditions in the Staff report and adopts the Findings of Fact and Recommendation. All
voted in favor and the motion carried unanimously with a vote of 4 to 0.
City Council Minutes – October 25, 2021
5
2. Resolution 2021-65: Consider Lease Program with Enterprise Fleet Management for
City Fleet
Mr. Howley gave a presentation which is a follow-up to the workshop a few weeks ago. He gave
an overview of what a fleet leasing program looks like, noting Enterprise is the largest buyer of
vehicles in the country. The program is planned for 61 light-duty vehicles such as pickups, vans,
sedans, and SUVs; all of the vehicles would be phased in over five years with the buying and
selling of vehicles approximately every four years. The program is expandable and can be added
or reduced as the City sees fit. Each spring the City will meet with Enterprise to build out the
following year’s fleet purchases. The program works by leveraging government buying power
and pricing is based on State Contract pricing which is about $10,000 below state retail. Second,
it is an effective vehicle lifecycle and Enterprise will strategically sell at a time before
depreciation drops below purchase price. Mr. Howley noted the City will still maintain the
vehicles, they are all under warranty, and with the amount of miles the City puts on annually
they will likely not need to put on new tires. The City will need to outfit the vehicles with City
branding and other specifics such as tool boxes. Mr. Howley stated the pickup trucks will come
with plows which they will keep for eight years before turning over. These are the types of things
that will be worked out annually with Enterprise Fleet Management. The financial impact is over
the first 10 years Chanhassen can save $873,000 which is a conservative estimate; after that it is
estimated at $18,600 annually. Mr. Howley clarified that the profit from the vehicle sales is the
City’s money and would go to offset the new vehicle purchases. The City will continue to pay
for fuel along with a lease rate to Enterprise to manage the program. It is an open-end lease with
no mileage restrictions, wear and tear charges, and no set term or penalties.
Wong Nystrom, Enterprise Fleet Management, clarified pricing for a certain Chrysler vehicle is
not out yet so these are conservative estimates and they think the price will go down. Release
date is to be mid-November. The rest of the pricing for vehicle fleets such as Fords and Chevys
are concrete.
Councilman McDonald asked the cost for the lease in the 2022 budget year.
Mr. Howley replied it is $226,320. He clarified they will turn around and sell the current vehicles
the City has for $205,000, so the difference between the two numbers if the cash the City will
need out of the Capital Improvement Plan (CIP). He walked through many reasons to go forward
including financial sustainability, asset management, and operational excellence.
Councilman McDonald asked if Mr. Howley had a chance to do any comparisons with other
cities.
Mr. Howley noted they relied on the Sourcewell RFP to do some of that for them, which are
included in the packet.
City Council Minutes – October 25, 2021
6
Councilwoman Rehm said through an environmental lens, she likes that mileage will improve as
years go on. She clarified as years go on and infrastructure improves the City will be
transitioning to Electric Drive (ED) cars.
Mr. Nystrom agreed that ED cars are on the horizon and noted prices will need to come down
and the infrastructure needs to improve but they are closely monitoring that landscape. Mr.
Howley noted they are asking Mr. Nystrom for pricing on ED vehicles now so the City has been
thinking about that.
Ms. Hokkanen noted at the November 8, 2021 meeting they will be discussing charging
infrastructure on an unrelated project.
Mayor Ryan appreciates the long-term planning, providing the numbers for the City Council, and
thinks this project really fits the plans laid out earlier in the year for the strategic plan.
Councilwoman Schubert moved, Councilwoman Rehm seconded that the Chanhassen City
Council approves a Resolution authorizing entering into a Lease Agreement with
Enterprise Fleet Management for certain light-duty portions of the City Fleet. All voted in
favor and the motion carried unanimously with a vote of 4 to 0.
3. Review Impact of Franchise Fee on the Financial Sustainability of the City’s
Pavement Management Program
Mr. Howley gave a presentation and updated the City Council on the status of the Pavement
Management Program. The City adopted a franchise fee as there was a problem funding the
maintenance projects of its streets. Rather than ignoring the problem a franchise fee was selected
in lieu of increasing the tax levy. The franchise fee revenue is meant to offset the City’s cost of
the street improvements of which the City is responsible for 60% of street costs and property
owners are assessed 40%. Mr. Howley walked the City Council through typical maintenance
activities and conditions of various roads, as well as recent road projects. The franchise fee was
adopted in 2019 and revenue actual is at $1.8 million/year. The 2021 Street improvement project
was the first year utilizing the franchise fee revenue.
Finance Director Strey explained the Pavement Management Program funding and balances and
walked the City Council through the way the City is fully funded for roads.
COUNCIL PRESENTATIONS.
Councilwoman Rehm thanked Carver County Sherriff Kamerud, Police Chief Ryan Seibert, and
Lieutenant Pearce who helped organize a town hall event with about 20-30 people attending. She
noted people had great questions and discussion and shared photos from the event. Discussion
included implicit bias, training, recruiting, staffing, demographics of the force, body cameras,
and mental health responder position.
City Council Minutes – October 25, 2021
7
Councilman McDonald shared that he served as Deputy Mayor representing the City at the
ribbon-cutting for the trail underpass from the Highway 5 trail into the Arboretum. It was a really
good turnout with many partners helping bring it to life including Lifetime Fitness, the County,
the City of Chanhassen, and some State and Federal dollars. It is a marvelous trail system and
addition to the City which was about 20 years in the making.
Mayor Ryan noted the removal of the temporary light from Minnewashta Parkway along
Highway 5; she has talked to City of Victoria and the County; MnDOT wants the removal when
the Minnewashta Parkway project is done. The increase of traffic on Highway 5 has created a
very dangerous environment without the light. She is asking for Council’s support in putting a
letter together on behalf of the City and the City of Victoria and presenting it to MnDOT,
Representatives, and County Commissioners to put some pressure on MnDOT to leave that light
as it is a safety concern.
ADMINISTRATIVE PRESENTATIONS.
Ms. Hokkanen noted another milestone the following day with the ribbon cutting for the final
segment of Highway 101 at 11:30 a.m. off Lakota Lane.
CORRESPONDENCE DISCUSSION.
1. Census Results
2. Fringe Business District Reclassifying Conditional Uses as Interim Uses Next Steps
3. Letter of Support for HF 1544
Councilman McDonald moved, Councilwoman Schubert 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 8:37 p.m.
Submitted by Laurie Hokkanen
City Manager
Prepared by Kim Meuwissen
City Clerk