12-12-2022 City Council Regular Meeting MinutesCHANHASSEN CITY COUNCIL
REGULAR MEETING
MINUTES
DECEMBER 12, 2022
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, Councilman
McDonald, Councilman Campion, Councilwoman Schubert.
COUNCIL MEMBERS ABSENT: None.
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Charlie Howley, Director of Public Works/City Engineer; Jerry Ruegemer, Park & Recreation
Director; Ari Lyksett, Communications Manager; Rick Rice, IT Manager; Lt. Lance Pearce,
Carver County Sheriff’s Office; Kelly Grinnell, Finance Director, and Andrea McDowell
Poehler, City Attorney.
PUBLIC PRESENT:
Greg Geske Chanhassen Fire Department
John Murphy Chanhassen Fire Department
Matt Kutz Chanhassen Fire Relief Association President
PUBLIC ANNOUNCEMENTS:
1. Recognize Retiring Firefighter/Former Fire Chief Gregg Geske and Assistant Chief
John Murphy (ret.) for 30 Years of Service
Chief Johnson shared a history of service of Firefighter/Former Fire Chief Gregg Geske who
started his career with Chanhassen in 1992. Mr. Geske thanked the City of Chanhassen for the
training and relationship he has had over the last 30 years. He has enjoyed training others and
working with the city mechanics.
Chief Johnson shared a history of service of Assistant Chief John Murphy who started his career
with Chanhassen in 1992. Mr. Johnson thanked the City of Chanhassen for the opportunity
noting it set him up for life. He stated it was an honor and privilege to serve.
The Relief Association presented Mr. Geske and Mr. Johnson with an award to thank them for
all they have done.
Mayor Ryan congratulated Mr. Geske and Mr. Johnson on their retirement. She read a statement
on behalf of the City Council and Chanhassen and thanked Mr. Geske and Mr. Johnson and their
families for their service.
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2. Proclamation of Kate Aanenson Day
Mayor Ryan stated Kate Aanenson is the city’s Community Development Director and is leaving
the city after 31 years of service. Ms. Aanenson was under the weather and was not present at the
meeting. Mayor Ryan noted the city is sad to see Ms. Aanenson go and read a proclamation on
her behalf and will present the framed proclamation to Ms. Aanenson on her final day with the
city. Mayor Ryan gave history of Ms. Aanenson’s work within the city and stated on behalf of
Chanhassen residents, businesses, and community groups alike, this day (December 14) shall pay
tribute to and recognize the substantial contributions Kate has made to protect the community’s
health, safety, and quality of life.
3. Presentation of Certificate of Appreciation to Councilmember Lucy Rehm
Mayor Ryan recognized and thanked Councilmember Lucy Rehm for her service to the city,
including on the Environmental Commission and the City Council. Mayor Ryan noted Ms. Rehm
has been recently elected as State Representative and that it has been a pleasure to get to know
her.
4. Presentation of Maple Leaf Award to Councilmember Dan Campion
Mayor Ryan stated she is pleased to present the Maple Leaf Award to outgoing Councilmember
Campion, which is presented to those with significant service of five years or more to the
community. Councilman Campion’s service included terms on the Park and Recreation
Commission, Planning Commission, and City Council. Mayor Ryan noted the city is truly
grateful and Mr. Campion “Champ for Chan” will be missed.
CONSENT AGENDA: Councilman Campion moved, Councilwoman Rehm seconded that
the City Council approve the following consent agenda items pursuant to the City
Manager’s recommendations:
1. Approve City Council Minutes dated November 28, 2022
2. Approve Claims Paid dated December 12, 2022
3. Approve Contract for 2023 Policing Services with the Carver County Sheriff's Office
4. Adopt Personnel Policy
5. Adopt Firefighter Addendum to Personnel Policy
6. Adopt 2023-2025 Labor Contract with Local Union 49
7. Award Contract for Lobbying Services to Lockridge Grindal Nauen
8. Resolution 2022-92: Adopt 2023 Pay Compensation Plan
9. Resolution 2022-93: Authorize Construction Services Contract for 2022 Stormwater Pond
Improvement Project
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10. Resolution 2022-94: Designate Polling Place Locations for 2023 Elections
11. Resolution 2022-95: Authorize a Contract with Magney Construction for the West Water
Treatment Plant Radon Ventilation System Improvements
12. Resolution 2022-96: Accept Public Utility Improvements in Boylan Shores, City Project No.
2020-13
13. Resolution 2022-97: Approve No Parking on Eagle Ridge Way
14. Resolution 2022-98: Accept Resignation of Councilmember Lucy Rehm and Declare a
Vacancy on the City Council
15. Resolution 2022-99: Adopt City Policy for Enhanced Traffic Control Devices at Crosswalks
16. Resolution 2022-100: Approve Site Lease Agreement with Dish Network for the Lake Lucy
Ground Storage Reservoir
All voted in favor and the motion carried unanimously with a vote of 5 to 0.
VISITOR PRESENTATIONS: None.
PUBLIC HEARINGS
1. Resolution 2022-101: Truth-in-Taxation Public Hearing on the 2023 Budget -
Approving the 2023 Final Budget, 2023-2027 Capital Improvement Plan, and Final
2022 Tax Levy, Collectible in 2023
Finance Director Grinnell gave a presentation noting the city started work on the budget and levy
in July and August. In September the City Council adopted a preliminary levy and budget at a
7.2% increase with the goal to reduce the levy. During work sessions in November the City
Council was able to reduce the levy. Ms. Grinnell shared about governmental funds including the
general fund, special revenue funds, capital funds, and the debt service fund. She gave an
overview of general fund revenue comparisons and noted the general fund levy is up 5.4% from
2022 which is about a $554,000 difference. Ms. Grinnell spoke about a new item in the budget of
Cable Franchise Fee revenue, licenses and permits, intergovernmental aids, and charges for
services. Ms. Grinnell noted property taxes make up about 80% of revenue for the city, followed
by licenses and permits. She contrasted revenues with an expenditure comparison including
general government, public safety, public works, community development, and parks and
recreation. Regarding special revenue funds Ms. Grinnell shared about charitable gambling
(proceeds from pull tabs that are legally required to go to fire department equipment and
training), cemetery fund, cable franchise, and American Rescue Plan Act (ARPA) funds. Ms.
Grinnell walked the City Council through the eight Capital Funds including vehicle and
equipment replacement, capital facilities, park renovation, park development, transportation
infrastructure management, Tax Increment Financing (TIF) #11, TIF #12, and pavement
management. Ms. Grinnell shared about the Capital Improvement Plan 2023-2027
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noting the city has a five-year plan of improvements which helps the city meet its strategic plan
goals, especially the goals of financial sustainability and asset management. Regarding park
renovation and park development, Ms. Grinnell shared about park renovation fees and planned
2023 projects including Lake Ann Park Roof Replacements and playground replacements, as
well as the Lake Ann Park Preserve, Arboretum Trail Installments. She noted the city is
considering a local option sales tax for various park improvements. Ms. Grinnell spoke about
transportation infrastructure and the pavement management fund and walked the City Council
through scheduled projects through 2027. The city tax levy needed is at a 6.3% increase; the
property tax proposals sent to residents were based on a 7.2% levy so final tax bills will be a bit
lower than proposed on the most recent notice. Ms. Grinnell showed a slide on screen
demonstrating how the levy will impact property taxes and where property tax dollars go
including to the City (19%), County (29%), School District (46%), and other entities (8%). She
walked the City Council through the effect of city taxes sample properties for homes valued
between $300,000 to $1,100,000 and businesses within the City of Chanhassen.
Mayor Ryan opened the public hearing. There were no public comments.
Mayor Ryan closed the public hearing.
Councilman McDonald was not on board with the preliminary budget increase of 7.2% and
thinks staff did a good job in coming back with proposals to reduce that number. He noted trails
were a big driver for the budget and stated Chanhassen has many trails that were built at the
same time and are deteriorating. He hopes the city does not have to go through the tough times
regarding trails as they had to for roads in previous years. He will support the 6.3% increase
realizing they cannot allow the infrastructure to get to a crisis point.
Councilwoman Schubert is similar to Councilman McDonald and wanted to get as close to 5.2%
as they could. She is grateful to staff for bringing the percentage down and regarding trails and
parks, and safety is what drove her in support of the 6.3%. Young children through the elderly
are using parks and trails and the city needs to spend money for upkeep to keep people safe; she
said that is where the shift came in supporting more money for trails within the city.
Mayor Ryan noted the City Council wrestled with the decision between the 7.2% and the 5.2%
increase as well as the investment in trails within the community. She reminded residents that the
City Council has been diligently working through the budget for the last six months, noting they
discuss things at length and try to find a balance between keeping increases as low as possible
and appropriately investing in the future. They looked at different budget scenarios, looked at
neighboring communities, and want to make sure that every line-item investment aligns with the
strategic priorities of the city. Mayor Ryan thanked department heads for time spent on their
budget items, especially when they received push back early on from the City Council; she also
thanked Ms. Grinnell and Ms. Hokkanen noting it is an all-hands-on-deck process.
Councilman Campion moved, Councilwoman Rehm seconded that the Chanhassen City
Council adopt a resolution approving the 2023 Final Budget, 2023-2027 Capital
Improvement Plan, and Final 2022 Tax Levy Collectible in 2023. All voted in favor and the
motion carried unanimously with a vote of 5 to 0.
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COUNCIL PRESENTATIONS.
Councilman Campion noted it is bittersweet to close out his years on City Council and he
thanked his wife and children for their support and understanding. It has been an honor to serve
the City Council, there have been exciting times, many challenging issues and change, as well as
continuing to operate through Covid. He thanked the residents for electing him to his terms and
noted it has been an honor and privilege to serve.
Councilwoman Rehm has enjoyed serving the community, learning about how the city works,
and she leaves knowing she will stay in Chanhassen and will continue to serve in other
capacities.
Mayor Ryan thanked them both for their service and noted they will be missed. She also thanked
staff for their hard work throughout the year.
ADMINISTRATIVE PRESENTATIONS.
Ms. Hokkanen noted applications for the City Council vacancy will be available online on
December 15 on the city’s website, a notice will be placed in the Chanhassen Villager, and other
communication outlets. Applications are due by noon on January 6, 2023 and interviews are
scheduled for January 18.
CORRESPONDENCE DISCUSSION.
1. 2023 City of Chanhassen Meeting Schedule
2. 2022 Building Permit Activity
3. Palm Beach County Fire Rescue Memo of Appreciation
Councilman Campion moved, Councilwoman Rehm 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 8:22 p.m.
Submitted by Laurie Hokkanen
City Manager
Prepared by Kim Meuwissen
City Clerk