MONDAY, NOVEMBER 18, 2024
CHANHASSEN CITY HALL, 7700 MARKET BOULEVARD

Summary

5:30 P.M. - WORK SESSION (Fountain Conference Room)

i.)  Recreation Manager Priya Wall presented holiday tree options for the new Civic Campus. A space has been identified for the tree in the new Civic Campus. The city’s previous holiday tree had to be cut down during the Civic Campus’ construction.

The options presented were:

• Real evergreen tree. Lifespan: 30 years. Estimated cost: $3,000-5,000. Height: Would be planted at 15-20 feet. Grows at roughly one foot per year. Previous tree was 35 feet.
• Artificial light tree. Lifespan: 8-10 years. Estimated cost: $6,000 – 33,000. Height: Up to 50 feet.
• Artificial panel tree. Lifespan: 8-10 years. Estimated cost: $13,000 – 77,000. Height: Up to 50 feet.
• Artificial tower tree. Lifespan: 5-8 years. Estimated cost: $13,000 - $102,000. Height: Up to 50 feet.

ACTION: Council unanimously supported a real evergreen tree.

ii.)  Finance Director Kelly Grinnell’s presentation focused on the 2025 preliminary utility fund budgets and the preliminary 2025-2029 Capital Improvement Plan. Some highlights included:

• 2022 Utility Rate Study Rates
• Preliminary 2025 Water Fund Budget
• Preliminary 2025 Sewer Fund Budget
• Preliminary 2025 Storm Water Fund Budget
• Updated Utility Rate Projections
• Preliminary 2025-2029 Capital Improvement Plan (CIP) for Governmental Funds
• Vehicle and Equipment Fund
• Capital Facilities Fund
• Pavement Management Plan (PMP) Fund
• Preliminary Levy Projections
• Park Renovation Fund
• Park Development Fund

Next steps:

• Request council feedback on utility rates and budgets, wetland bank credit sales, 2025-2029 CIP items, funding for Park items
• November 25 working session: Review and discuss 2025 general fund budget, 2025-2029 CIP, tax levy for all funds and levy impact on property owners.
• December 9: Truth in Taxation public meeting at 7 p.m. / Approve resolution adopting the 2025 final levy and budget

(This work session would be continued later at 8 p.m., following the City Council Meeting.)

7:00 P.M. CITY COUNCIL MEETING (City Council Chambers)

All council members were in attendance.

i.)  Mayor Elise Ryan opened the meeting by paying tribute to Lt. Lance Pearce from the Carver County Sheriff's Office, who will be retiring in January 2025. Lt. Pearce then delivered remarks reflecting on his 30 years on the job and thanked his colleagues, city staff, and family members, many of whom were in attendance to pay tribute to Lt. Pearce.  

ii.)  ACTION: The Council unanimously approved all items on the Consent Agenda:

• D.1 Approve City Council Minutes dated October 28, 2024
• D.2 Receive Commission on Aging Minutes dated September 20, 2024
• D.3 Receive Planning Commission Minutes dated September 17, 2024
• D.4 Receive Park and Recreation Commission Minutes dated September 24, 2024
• D.5 Approve Claims Paid dated November 18, 2024
• D.6 Adopt 2025 City Meeting Schedule
• D.7 Adopt AI Policy
• D.8 Award Contract for Lobbying Services to Lockridge Grindal Nauen
• D.9 Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 1500 Pembroke Pass
• D.10 Approval of Microsoft Office365 License Renewal
• D.11. Public Works Fuel Canopy

iii.)  Assistant City Engineer George Bender delivered a presentation on the Crimson Bay Road Improvement Project (City Project 23-02). The intersection of Crimson Bay Road and State Highway 5 (Arboretum Boulevard) will be permanently closed and removed due to the future Hwy 5 expansion project. Crimson Bay Road is proposed to be extended north to connect with Dogwood Road and West 78th Street. The project also will add storm, sanitary, and water utilities. The current properties on Crimson Bay Road are on well and septic systems. Construction is set to begin May 2025 and will finish in August 2025.

The Council hosted the first public hearing for the project (known as an “improvement hearing”), which is a requirement of the M.S. 429 special assessment process.  

Staff recommended proceeding with the ordering of this project because:

• The project is feasible and cost effective
• There is a project need
• The project schedule aligns with the Hwy 5 project work
• The project is budgeted for

Next steps include final design, easement acquisition paperwork, ROW vacation, and the coordination of address changes.

Mayor Ryan closed the public hearing.

ACTION: The Chanhassen City Council unanimously passed a resolution ordering the improvements and authorizing preparation of plans and specifications for the Crimson Bay Road Improvement Project No. 23-02.

iv.)  Public Works Director Charlie Howley delivered a presentation on Resolution 2024-XX, which would  approve the vacation of public drainage and utility easements within Lot 1 and Lot 2, Block 1 Rook Place (6630 and 6660 Horseshoe Curve). The property owners at 6630 and 6660 Horseshoe Curve would like to do a lot line adjustment to align the actual property line with the existing fence and wall between the houses. Since there are existing public drainage and utility easements paralleling the existing lot line, the easements should also be adjusted to follow the new lot line. The process involves vacating the existing easements and re- establishing new easements following the new lot line. The formal lot line adjustment is approved and processed administratively, which will occur once the easement vacation is approved. The vacation of the existing easements is contingent upon the recording of the new lot line at Carver County.

The staff recommendation was to approve the vacation of the public drainage and utility easements subject to re- establishing new easements along the adjusted lot line.

ACTION: The Chanhassen City Council unanimously passed a resolution approving the vacation of public drainage and utility easements over the shared lot line of Lot 1 Block 1 and Lot 2 Block 1, ROOK PLACE, according to the recorded plat thereof, Carver County, Minnesota; subject to the condition of re-establishing similar easements along either side of the adjusted lot line.

8:00 P.M. - WORK SESSION CONTINUED (Fountain Conference Room)

i.) The Council continued their conversation from earlier with Grinnell and Howley about the wetland bank credit sales.

ACTION: The Council unanimously agreed to move ahead with the sale of wetland bank credits.

ii.) Howley and the Council discussed the upcoming Pleasant View Road Reconstruction Project. The project includes the reconstruction of the approximate 2-mile corridor of the existing Pleasant View Road. The goals of the project include: Improve operational and safety concerns / Provide for the deficient multimodal needs of the area / Provide an improved overall transportation network / Replace deteriorating pavement and improve stormwater management / Respond to public/resident concerns and expectations. Currently, the project is expected to begin in May 2028 and end in October 2029. Howley discussed with Council a funding gap that exists for the project and discussed options for seeking financial assistance and other grants in order to keep the project on track. The City plans on submitting a RAISE grant in January.

ACTION: The Council unanimously supported Howley and city staff continuing its efforts to seek additional funding and to pursue a RAISE grant.

iii.)  Community Development Director Eric Maass discussed amending the city's zoning ordinance regarding conditional uses in the Rural Residential (RR) and Agricultural Estate (A-2) zoning districts related to Group Homes serving 7 to 16 persons. At the October 14, 2024 City Council work session, City Council directed staff to draft an ordinance amendment reducing the number of persons able to reside in a group home through the issuance of a Conditional Use Permit (CUP). This proposed text amendment would apply to both the Agricultural Estate (A-2) and Rural Residential (RR) zoning districts which currently allow a maximum of 16 persons through the issuance of a CUP.  City Staff prepared a draft ordinance reducing the maximum persons from 16 to eight (8) persons as well as modifying the standard conditions associated with group homes operating under a CUP.  Because Minnesota State Statute regulates Group Homes serving 6 or fewer residents as permitted uses in single family zoning districts, the City Council’s preference was to rely solely on the State of Minnesota for regulations regarding group homes and directed staff to modify the proposed ordinance to eliminate Group Homes allowed through a CUP as well eliminating the standard conditions associated with group homes operated through a CUP as they would no longer be relevant with the conditional use option removed. 

ACTION: Council directed Maass to start the process of the formal ordinance amendment with the planning commission which will include a public hearing.