06-13-2022 City Council Work Session MinutesCHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
JUNE 13, 2022
Mayor Ryan called the work session to order at 5:00 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilman
Campion, and Councilwoman Schubert.
COUNCIL MEMBERS ABSENT: Councilwoman Rehm.
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Kate Aanenson, Community Development Director; Charlie Howley, City Engineer/Public
Works Director; Don Johnson, Fire Chief; Jerry Ruegemer, Park & Recreation Director; Rick
Rice, IT Manager; Ari Lyksett, Communications Manager; and Kim Meuwissen, City Clerk.
PUBLIC PRESENT: Bryan Harjes, Hoisington Koegler Group Inc.
Mayor Ryan called the work session to order at 5:00 p.m.
FIRE DEPARTMENT/PUBLIC SAFETY STAFFING UPDATE
Fire Chief Don Johnson provided a handout to Council defining the different firefighter positions
including specific duties and requirements, and presented a PowerPoint reviewing the following
points:
• Hiring/Resignations/Retirement Updates (down six paid on-call staff since December)
• Recruitment Efforts and Updates:
o Paid on-call firefighters: Received 18 total applications of which 9 were non-
traditional applicants; interviewed 16; hired 3 applicants - all require Fire
Academy training
o Hiring comparison to surrounding cities and Prior Lake
o Paid on-call (POC) captains: – Three internal applicants hired
o Full-time (FT) firefighters: 8 internal applicants interviewed, 3 invited back for
2nd interview, 2 accepted position with start date of April 4, 2022
• Current Coverage:
o Benefits include coverage of 6-8 a.m. gap time during the week, dramatic
improvement to response times during weekdays, flexible scheduling for day
staff, addresses probable high demands on development/new construction plan
reviews and inspections
o Areas not addressed include significant gap times remain that rely on general
alarms, 7 days a week; and POC shifts on weekend days difficult to fill and most
are mandatories
• Proposed Coverage:
o Implement Phase 2. Benefits include eliminating gap times with either FT or POC
staffing (critical need), adds 2 fire captains and changes schedule to 12 hours/7
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days a week for all 4 response FTEs, elimination of weekend POC hours from
0800-1600 but adds back an 1800-2200 shift to cover gap time, and option for
POC firefighters to work weekend hours. Note: not providing POC hours on the
weekends would provide a $26K budget surplus.
• Proposed Change for consideration (Phase 2.5 – Operational Excellence):
o Eliminate POC Fire Caption position: several disadvantages noted to current POC
captain position, as well as, a depleted candidate pool.
o Hire 1 additional Fire Caption (3 total): benefits include FT supervisor 24/7,
stability for constantly rotating crews, significant administrative duties could be
delegated, relieve pressure of Duty Chief response for low level calls.
o Funding strategy: Eliminating POC Captain position from schedule will provide
partial funding of new FT POC Captain position.
• Financial Implications:
o Phase 2 – 2 Fire Captain FTEs $240,000
o Phase 2.5 – 3 Fire Captain FTEs $280,279*
$360,000 - $79,721 shifting from temporary wages for reduction in POC
staffing hours (Council could eliminate third POC position on weekends
and further reduce temporary wages by $26,000 to offset cost increases).
• Financial Offsets – Transition Station 2 to a Ridgeview Base and downsize fleet:
o Moving to Phase 2/2.5 will dramatically impact callback and the necessity of
Station 2:
Facility Study indicates $275,000 in critical deferred maintenance needs
over the next 5 years – Explore use agreement with Ridgeview Ambulance
and close as Fire Station
2013 Fire Study, NFPA, APWA, and ISO recommendations require a
replacement engine scheduled I 2023 ($950,000) – no longer necessary if
not considered a fire station
Capital costs that would likely impact the levy can now be firected
towards personnel costs and phased-in levy impacts
• Opportunities to consider:
o Option 1: Implement Phase 2 or 2.5 on October 1, 2022
o Option 2: Implement Phase 2 or 2.5 in first quarter of 2023
o Option 3: Take no action
At 5:40 p.m. Ms. Hokkanen asked to suspend the Fire Department/Public Safety Staffing
update to allow time for presentation of the Facilities Study Discussion prior to the regular
City Council meeting at 7:00 p.m. The work session will resume immediately following the
regular City Council meeting.
FACILITIES STUDY DISCUSSION
City Engineer/Public Works Director Charlie Howley presented a PowerPoint continuing review
of the Facility Study from the March 21 and April 11 work sessions. Council is being asked to
provide feedback and direction related to the final study document. Tonight’s presentation
provides added focus around potential new city hall development. The Facility Study addresses
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four of the City’s five Strategic Priorities: Asset Management, Operational Excellence, Financial
Sustainability, and Development/Redevelopment.
Community/Rec Center
Due to the major hurdle of available land to construct a new facility, focus has been shifted to the
existing Rec Center and adding amenities to trails and parks.
Fire Stations
Station 1: Short-term needs have been identified including cracks in the hose tower (structural
issue), remodel of racquet ball court, staffing, moving duty crew rooms and moving Fire
Administrative staff to facility. Also recommending an internal remodel to accommodate
appropriate gear washing equipment, as well as exterior pavement and landscaping
improvements.
Station 2: Repurpose or divest the facility (potentially a private partnership), and run all
operations out of Station 1.
City Hall
General consensus from the previous work session indicated Council support to build a new city
hall as opposed to reinvesting in the existing building, triggering the creation of new site
planning concepts. The next step is to determine when this should occur. Mr. Howley reviewed
the funding scenario presented at the previous work session, reiterating that the sooner we move
forward, the lower the financial impact will be.
Next Steps:
• Provide any major revisions needed to the Facility Study document for final Council
acceptance.
• Consider moving ahead with programming of a new city hall, when to do it, and how to
pay for it and what is involved with the entire project.
Mayor Ryan thanked Mr. Howley and asked Council if they were comfortable with putting the
Facility Study on an upcoming agenda for approval. Councilman McDonald asked if the report
includes reasons for building a new city hall and what the benefits are. Ms. Hokkanen replied
that it does as well as offers costs for deferred maintenance as opposed to building a new facility.
Mayor Ryan added that it highlights the history of City Hall as well as updates that have
occurred and also looks to the future with cost comparisons. Ms. Hokkanen said the consultant
would cover this in his presentation. Councilman McDonald then indicated he was okay to move
ahead. Councilman Campion was also okay with accepting the document but would also like to
understand the benefits of building a new city hall. Councilwoman Schubert did not have any
additional comments. Mayor Ryan reminded everyone that the facilities study was to provide the
history of the overall condition of the facilities and as they exist today but does not require
action.
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Ms. Hokkanen confirmed that if we are to move forward with a new city hall, what the overall
impact would be on the community, which was not included in the scope of the facilities study.
She introduced Bryan Harjes from Hoisington Koegler Group Inc. (HKGI) to present a series of
five different concepts for a civic campus. Community Development Director Kate Aanenson
added that HKGI was part of the Downtown Vision Plan where the focus was to keep the City
centered downtown.
Mr. Harjes explained that the different concepts consist of placement and location of City Hall,
corresponding parking demand including the Library, and park components that could be
enhanced, augmented, or newly created. The proposed project area was presented as well as
potential future programming that could occur with the School District site. The core component
is to recognize the need for a festival space that bridges both sites for larger community events.
Existing conditions were reviewed and considered in each concept as well as parking
components. The following five concepts were reviewed:
1. Concept 1: Locate two-story city hall/senior center on east side of the site directly off of
Market Boulevard. Option to include another building to serve as a restaurant with
outdoor dining.
2. Concept 2: Locate two-story city hall in northeast portion of the site over the existing
hockey rink/skate park. Add a four-story high-density residential facility (senior housing)
on the northwest portion of the site which would house the senior center.
3. Concept 3: Locate two-story city hall/senior center on the north portion of the site and
potentially integrating a smaller restaurant space. Would include a two-story parking
ramp. Also includes an open lawn between the two buildings as well as a promenade
walk that could provide vending/market opportunities on the site.
4. Concept 4: Locate three-story city hall with senior center on the lower level on the west
portion of the site. This would require construction of new surface parking to the north.
5. Concept 5: Locate three-story city hall/senior center on southeast corner of the site with
access from Market Boulevard. Includes adding two high-density residential facilities and
creating a new east/west street connection with angled parking.
Mr. Harjes then presented a concept comparison breakdown showing higher and lower project
cost considerations, program considerations, and site design considerations. The intention of
tonight’s presentation is to illicit conversation and ideas and key considerations moving forward.
Mr. Howley offered that these concepts do not move Fire Administration staff to Fire Station 1.
If Fire Administration staff were to be moved to Fire Station 1, the square footage of city hall
could be reduced approximately 800 square feet. These concepts make the existing space within
the project area more efficient by strategically moving city hall away from its current location at
the center of the site, providing more open space. Councilman McDonald expressed concern that
the 4th of July festival space would be smaller as well as giving up the plaza area where the
concerts are held. How do these components get refitted? Ms. Aanenson commented that the
proposed plaza space would be very flexible. Mr. Harjes agreed and pointed out that the
hierarchy of the elements located in the downtown need to be discussed, i.e. does placement of a
hockey rink outweigh an amphitheater setting in the downtown? Park and Recreation Director
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Jerry Ruegemer responded that Councilman McDonald made a good point and that he didn’t see
where the current space could be replicated outside of the downtown area. Ms. Hokkanen
discussed the School District’s plans to demolish the existing school building and construct a
new building on the site. The City could attempt to influence the School District to relocate the
new school building to the north end of the site. Mr. Harjes added that there is value of
maintaining larger-scale open park space versus other uses such as housing and surface level
parking. Councilman Campion expressed concerns that adding a restaurant in Concept 1 would
affect the open space. Mayor Ryan asked how the residential component offset any costs. Ms.
Hokkanen thinks the concept would be a land sale as opposed to combining city hall and an
apartment building. The main benefit of adding the residential component to the project is that
there are 24/7 residents nearby who are likely to engage with the programming and be more
present in the space. Councilwoman Schubert asked if there are other cities that include a senior
center in an apartment building. She also expressed concerns about the residents being affected
by noise and disruption caused by events occurring right next to the building. Ms. Hokkanen
responded that typically a land sale of this type would include a letter of awareness to the buyer
regarding events. Columbia Heights and Waconia have these types of facilities.
Ms. Hokkanen reviewed next steps. Staff would like to hear more about what Council likes about
the proposed concepts. Councilman Campion expressed concern about the current financial
climate and possible recession and the timing of committing to additional expenses. Ms.
Hokkanen suggested that Council consider how to promote these new concepts to the
constituents or is there another direction to explore. As part of budget considerations, staff is also
looking for direction on current building issues with City Hall and future budgets. Mr. Howley
asked about the involvement of the Referendum Task Force with the park elements of the
concepts. Mr. Ruegemer responded that there have not been any conversations with the Task
Force regarding these concepts. Councilman Campion asked if the extra parking underneath city
hall in Concept 1 would eliminate the need for the parking lot next to the ice rink. Mr. Harjes
responded that they would probably not need all of it. Councilman McDonald likes the idea of
adding senior housing downtown but had concerns regarding the number of stories. Chief
Johnson responded that up to five stories allows for lightweight construction. Anything taller
would involve different construction techniques and increased costs relating to fire safety.
Councilwoman Schubert was interested in an accessible park. Mayor Ryan thanked Mr. Harjes
for his presentation.
Mayor Ryan recessed the work session at 6:45 pm.
Mayor Ryan resumed the work session at 7:46 pm.
FIRE DEPARTMENT/PUBLIC SAFETY STAFFING UPDATE (CONTINUED)
Chief Johnson completed his presentation discussing the current challenges with the gap times
that included problems and trends with the Carver County Dispatch center and how certain calls
determined whether the fire department should be started or not. Mayor Ryan reminded Council
about concerns regarding Carver County Sheriff’s Department dispatch staffing and asked Chief
Johnson to present some scenarios regarding this issue at the budget meeting in July.
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PARK REFERENDUM UPDATE
Ms. Hokkanen stated that the Park Referendum Task Force is at a critical junction where they are
intending to vote on a package to recommend to the City Council and start working on ballot
language. The Task Force is looking for feedback from the City Council and provide thoughts on
significant changes that have occurred since the Council was last updated on the Task Force.
Park and Recreation Director Jerry Ruegemer distributed a spreadsheet prioritizing the proposed
projects and also presented a PowerPoint. Regarding the Rec Center, the Task Force feels that,
due to the lack of available land to construct a new facility along with recent findings in the
Facility Study, it does not make sense to add on/renovate the existing Rec Center building as a
part of the Referendum. Instead, the Task Force feels it makes more sense to recommend
conceptually adding a full ice arena with a second sheet of practice ice, creating a campus feel.
The next Task Force meeting is on Monday, June 20 where they would like to finalize a package
to recommend to Council and begin working on ballot language and marketing plans.
Councilmember Campion asked if we could have something available for the public to view at
the 4th of July celebration to get feedback before the final ballot language is created. Ms.
Hokkanen replied that would be very ambitious but not impossible. Mr. Ruegemer thinks
package should be solidified first before presenting it to the public.
Mr. Ruegemer reviewed the Task Force Priorities handout outlined the following priorities
totaling $36,915,000:
1. Complete the Lake Ann Park Preserve improvements project.
2. Turf replacement on Bandimere soccer fields 1-3 and Lake Ann soccer field 1.
3. Field lighting improvements at Bandimere, Chan Rec Center and Lake Ann Park.
4. Inclusive Playground Community Park.
5. Lake Susan – Challenge Park.
6. Permanent bathrooms at Bandimere, Lake Ann Klingelhutz Pavilion and ballfields, and
remodel existing bathrooms at Lake Susan.
7. Miscellaneous:
o Splash pad and sport court at Bandimere
o Nature Play at Community Park
o Covered ice at Chan Rec Center
o Sports Dome (location TBD)
o Concessions/permanent bathrooms at Lake Ann ballfields
o Picnic shelter at Bandimere
o Trail Gaps (various locations)
8. Long-Term Maintenance.
Mr. Ruegemer concluded his presentation and asked the City Council to consider the following
questions:
• Does this plan fulfill the charge of “Community for Life?”
• Is there anything missing?
• Is there anything you don’t support?
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• Is the plan exciting/engaging enough to gain community support?
Would you advocate for this plan? If not, why not?
• Would you be proud of the resulting parks after these improvements?
• Are there projects worthy of a referendum? Could/should they be funded another way?
Councilwoman Schubert expressed concerns about lighting fields at Bandimere Park due to
proximity to the existing Springfield and Kiowa neighborhoods. Mr. Ruegemer responded that
with box lighting the ballfield light illumination could be contained and also that City Code
requires all sporting events be completed by 10:00 p.m.
Councilman McDonald asked why turf would be replaced on the fields. Mr. Ruegemer
responded that the turf life would be extended and also sporting events could start earlier in the
spring and go later into the fall. Councilman Campion commented that covered ice may not be
worth the investment; however, there are different pockets of people with different priorities and
maybe the benefit could be spread to neighborhood parks. Ms. Hokkanen responded that
playground replacement was pretty much caught up. Another popular request is to replace
playground mulch with rubber material; however, the cost is to do this is astronomical.
Councilwoman Schubert asked if the seniors were happy with the proposal and are their needs
being met. Mr. Ruegemer suggested seniors could go to a challenge course and use the Lake Ann
Preserve for nature walks, but as far as a brand new senior center facility, it is not included in the
Referendum. Ms. Hokkanen requested Council provide feedback specifically on the dome
proposal. Councilman Campion commented that he has seen a number of domes that house
multiple uses. Councilman McDonald asked where we would put a dome. Mr. Ruegemer
suggested that Lake Ann Park is the logical location but space may not be available and parking
would have to be expanded. Mayor Ryan appreciates the hard work of the Task Force but had
concerns about going to the public with a referendum based on what was presented in the
priorities list. She feels that the priorities are geared more toward young families and not the
community as a whole. The hockey rinks would be more appealing if they were a part of a new
rec center. Councilman McDonald commented that a $37M referendum along with asking for a
new city hall would be too much to ask of the residents. He was not in support of a dome to take
the place of a rec center to have a walking structure that would only be available for six months.
Councilwoman Schubert asked about how many people are using the expanded Arboretum trail
along Highway 5. Mr. Ruegemer responded that the City is unable to collect numbers on trail
usage. Councilman Campion agreed with Councilman McDonald as far as moving forward with
the referendum and city hall at the same time. Councilwoman Schubert asked if any of the sport
associations are willing to provide funding for some of the requests such as a year-round dome.
Mayor Ryan is concerned that if land does become available in the future to build a new rec
center, should things like lighting be budgeted for now as opposed to being a part of a
referendum? Councilman McDonald likes the idea of a local use sales tax as a funding source
and asked if that was feasible. Mr. Ruegemer responded that it has to be a dedicated project as
opposed to a number of projects. Ms. Hokkanen added that a sales tax of half a percent would
generate approximately $1.9M annually. Would require further study and a referendum. Mayor
Ryan commented that the park elements associated with building a new city hall would be
supported by the community. Councilwoman Schubert asked if there was consideration of two
referendum questions to break out athletic association needs and the needs of the community as a
whole. Councilman McDonald favors Lake Ann Park improvements and creating a city park in
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the downtown core. Councilman Campion added that the athletic associations represent a large
part of the community but maybe the turf and the lights need to be reduced. Could Pickleball be
added to neighborhood parks that have tennis courts? Councilman McDonald thought it was a
good idea to have two questions on the referendum. Councilwoman Schubert reiterated that she
would prefer there would be two questions or make it more balanced. Mayor Ryan stated that
even if it goes to separate questions the total amount needs to be reduced. Ms. Hokkanen asked
Council if they wanted this information presented to the Task Force. Mayor Ryan replied that she
would rather have people know so they have time to understand the process. Mr. Ruegemer said
he would meet with the consultants from WSB to work on paring the list down.
FUTURE WORK SESSION SCHEDULE
June 27: Presentation and Review of 2021 Audit, Redpath and Company
Avienda Presentation
City Council Roundtable
July 11: 2023 Preliminary Budget Financial Plan Discussion
August 8: 2023 Budget Overview and Initial CIP Discussion
September 12: Preliminary Levy Discussion
October 24: General Fund & Property Supported Funds Discussion
November 14: CIP, Debt & Utility Rate Study Discussion
The work session adjourned at 9:30 p.m.
Submitted by Laurie Hokkanen
City Manager
Prepared by Kim Meuwissen
City Clerk