MONDAY, DECEMBER 9, 2024 
CHANHASSEN CITY HALL, 7700 MARKET BOULEVARD 

Summary  

5:30 P.M. - WORK SESSION (Fountain Conference Room). Councilmember Jerry McDonald was not in attendance due to a family obligation. 

Upper Riley Creek Ecological Enhancement Project: Director of Public Works/City Engineer Charlie Howley delivered a presentation on the Upper Riley Creek Ecological Enhancement Project (City Project 24-16), a $3.3 million creek restoration project that is being led by the Riley Purgatory Bluff Creek Watershed District (RPBCWD). The project would restore the stream bed, channel and floodplain. It would also restore habitat and promote diverse vegetation. Currently, the exposed creek channel is allowing sediment to be transported into Lake Susan and other downstream bodies. The sediment negatively affects the water quality of the lake, which is listed as impaired by the MPCA. The city’s MS4 permit requires that the city take steps towards eliminating the Total Maximum Daily Load of impaired water bodies.  

As part of the project, a Decant (short for “decontamination”) Facility has been designed and will be included as a Bid Alternate. The Decant Facility is an innovative practice that supports the city's MS4 permitting goals in a way that provides the ability to treat our excavated materials at the Public Works site as opposed to hauling the waste to offsite locations, thus saving time, fuel, and vehicle degradation. The elements of the Decant Facility include multiple at-grade bays where materials can be dumped and dried. Once dried, the materials can be reused or brought to normal landfills as opposed to hazardous waste landfills. The facility is essentially a paved area with walls and a lean-to roof but not fully enclosed, underground storm and sanitary sewer piping, and water and electrical services.  

As part of a proposed Cooperative Agreement between the City of Chanhassen and the RPBCWD, the administration of the design and construction of Decant Facility would be fully completed by the RPBCWD. Construction would be fully completed by the City of Chanhassen. The City will own and maintain the facility.  

ACTION: The Council expressed its support of the RPBCWD’s work in improving the water quality in Lake Susan and other downstream bodies. It did not feel comfortable committing to the Decant Facility at this time but remained interested in exploring the possibility of the facility in the future. Councilmembers said they would propose an official motion articulating their position during the City Council meeting later that evening. 

Market Boulevard Improvement Project. Howley reviewed a few options for Council to choose from regarding potential improvements to Market Boulevard. The alternatives were in response to the previous City Council meeting on November 25, 2024 when Council asked Howley to provide further details on how the planned project would impact traffic flow, schedule, costs, and private property impacts. Howley reiterated the primary goals of the project: 

• Asset management 

• Development/Redevelopment 

• Financial Sustainability 

• Operational Excellence 

He then presented seven potential options for Council to choose from. Some highlights: 

• Alternative 1: This alternative is the same as the one originally presented by Howley to the Council in the summer of 2024. 

• Alternative 2: Single lanes each direction. No roundabouts, but with dedicated turn lanes. This option allows through traffic between Highway 5 and 78th Street to get through more easily but the intersections with Market Street and Market Square entrance are more traditional rather than roundabouts. The medians in this option aren’t as wide as Alternative 1 due to the existence of turn lanes. 

• Alternative 3: Two lanes through the whole corridor between Highway 5 and 78th Street. It adds left turn lanes but does not add right turn lanes. 

• Alternative 4: Two through lanes through the whole corridor but without dedicated turn lanes which results in limited impacts to private property on either side. Under this alternative, the curb lanes do not change significantly from their current state. This option adds a second through lane at the railway crossing that doesn’t exist today. 

• Alternative 5: This option is very similar to option 3 but the street would be wider so as to accommodate a median in which streetscaping (trees, etc.) could occur. There will be dedicated left turn lanes. There will be two through lanes but not dedicated right turn lanes. 

• Alternative 6: This option is very similar to Alternative 5, but with dedicated right turn lanes. This option focuses on car safety, but comes at the expense of pedestrian mobility and safety. This option also has significant impacts to adjacent private property. 

• Alternative 7: This minimalist option would leave Market Boulevard similar to its current state. There would be a repave and some asset management improvements but any major changes would be punted until a later date. 

Howley also presented Council with a “Decision Matrix” that laid out how each alternative would affect such things as car safety, pedestrian safety, vehicular operations, multimodal operations, downtown design character, right of way and easements, and costs. 

ACTION: Council thanked Howley for his quick and thorough work on presenting new options for their review and asked him to send the Council copies of his options and the Decision Matrix so that they could study them in greater detail in advance of the January 13, 2025 Council meeting. 

Galpin Communication: Councilmember Josh Kimber expressed his desire to have the city effectively – and in detail -- communicate with residents affected by the ongoing Galpin Boulevard Improvement Project. He suggested that the city articulate to residents such things as: 

• What is getting redone 

• When it is going to happen 

• What will happen next year 

• Specifics on the roundabout near Minnetonka Middle School West 

ACTION: Mayor Elise Ryan and City Manager Laurie Hokkanen mentioned that the city is currently working on such communications and would make sure that residents – especially those most acutely affected by the improvement project – are fully informed about the details of this project. 

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

The Council met as the Economic Development Authority (EDA). Councilmember Jerry McDonald was not in attendance due to a family obligation. 

ACTION: The Council acting as the EDA unanimously approved the Economic Development Authority Meeting Minutes dated October 28, 2024. 

ACTION: The Council acting as the EDA unanimously approved a resolution authorizing entering into a cooperative agreement with Riley Purgatory Bluff Creek Watershed District for the Upper Riley Creek Ecological Enhancement Project (City Project 24-16) pending all redlines involving the Decant Facility to be removed.  

The Council acting as the EDA adjourned the EDA meeting and opened the regular Council meeting. Councilmember Jerry McDonald was not in attendance due to a family obligation. 

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

• E.1 Approve City Council Minutes dated November 18, 2024 

• E.2 Approve City Council Work Session Minutes dated November 25, 2024 

• E.3 Receive Planning Commission Minutes dated November 4, 2024 

• E.4 Receive Planning Commission Work Session Minutes dated November 19, 2024 

• E.5 Receive Commission on Aging Minutes dated October 18, 2024 

• E.6 Receive Park and Recreation Commission Minutes dated October 22, 2024 

• E.7 Approve Claims Paid dated December 9, 2024 

• E.8 Approve Contract for 2025 Policing Services with the Carver County Sheriff's Office 

• E.9 Firefighter Addendum to Personnel Policy 

• E.10 Determining the City will not Waive the Statutory Tort Limits 

• E.11 Resolution 2024-XX: Adopt 2025 Pay Compensation Plan 

• E.12 Resolution 24-XX Amending the By-laws of the Chanhassen Firefighters Relief Association 

• E.13 Resolution 2024-XX: Approve Application of the Chanhassen Booster Club to Conduct Off-Premise Lawful Gambling at Moe's Char House 

• E.14 Resolution 2024-XX: Approving the Application for Metropolitan Council Environmental Services 2025 Private Property Inflow and Infiltration Grant Program 

• E.15 Resolution 2024-XX: Approve 2025 Service Agreement for Joint Assessment with Carver County Assessor 

• E.16 Resolution 2024-XX: Authorize the Minnesota Department of Transportation to act as the local governing unit for the Wetland Conservation Act and waive the Chanhassen Wetland Alteration Permit requirement for the Trunk Highway 5 Improvement Project, City Project 25-03 

• E.17 Resolution 2024-XX: Authorize Contract for Geotechnical Services for the 2025 City Pavement Rehabilitation Project (#25-01). 

• E.18 Resolution 2024-XX: Authorize Construction Services Contract for 2024 Stormwater Pond Improvement Project 

• E.19 Resolution 24-XX: Approving the Approving Minnesota Session Laws, 2023, Regular Session, Chapter 64, Article 10, Section 29 (Sales Tax) 

• E.20 Resolution 2024-XX: Permanent Easement and Temporary Construction License from the University of Minnesota for the Crimson Bay Road Improvement Project 

• E.21 Resolution 2024-XX: Authorizing Designation and Expenditure of Remaining ARPA Funds 

Truth in Taxation: As part of the City of Chanhassen’s annual “Truth in Taxation” public hearing, City of Chanhassen Finance Director Kelly Grinnell presented details on the 2025 Final Budget, the 2025-2029 Capital Improvement Plan, and the Final 2024 Tax Levy, Collectible in 2025. Grinnell noted that the following remain the city’s overall financial goals: 

• Cash flow 

• A balanced budget 

• Service level solvency 

• Long term solvency 

A few highlights: 

• The total tax levy for 2025 was lowered from 2024 to 6.3% 

• The City of Chanhassen will have a balanced budget for 2025. 

• Overall budget of $61.1 million ($37.6 million for governmental funds, $23.5 for enterprise funds). 

• Chanhassen’s annual cost of city services for a $500,000 home remains among the lowest amongst similarly sized communities in the metro area. 

The General fund breaks for 2025 as follows: 

• 36% Public Safety 

• 23% General Government 

• 19% Public Works 

• 18% Parks and Recreation 

• 4% Community Development 

ACTION: Following the public hearing, the City Council unanimously approved a resolution approving the 2025 final budget, the 2025-2029 Capital Improvement Plan and the final 2024 tax levy, collectible in 2025. 

ACTION: The Council unanimously approved a resolution authorizing entering into a cooperative agreement with Riley Purgatory Bluff Creek Watershed District for the Upper Riley Creek Ecological Enhancement Project (City Project 24-16) pending all redlines involving the Decant Facility to be removed. 

Cannabis Zoning: Community Development Director Eric Maass and Planner Rachel Jeske discussed two ordinances regarding the regulation and zoning of cannabis licensing. The ordinance as drafted delegates retail licensing authority to Carver County. Carver County has adopted an ordinance regulating cannabis businesses including limiting the number of retail licenses allowed in the City of Chanhassen to three (3), which is the same minimum amount that could be permitted if the city retained the licensing authority. The city currently delegates tobacco licensing to Carver County as well. The County and State of Minnesota still verify with the City of Chanhassen for conformance with city zoning requirements when reviewing license applications. 

ACTION: The Chanhassen City Council unanimously adopted the ordinance amending Chapter 10 of Chanhassen City Code regulating cannabis business licensing, temporary cannabis events, and the sale of lower potency hemp edibles and approves the summary ordinance for publication. 

Councilmembers debated the next ordinance, which would establish zoning regulations for retail cannabis and hemp businesses. The Economic Development Commission (EDC) and Planning Commission (PC) both recommended that Cannabis and Hemp be zoned by the City the same way the City zones for alcohol and tobacco sales which currently does not require buffering from places such as schools or residential treatment facilities. Councilmembers shared their perspectives on whether additional buffering from cannabis businesses to schools or residential treatment facilities ought to be included. Mayor Ryan expressed her desire for a buffer and said she preferred to return to the issue at a later date and underscored that the City’s zoning ordinances regarding cannabis will likely be on ongoing work in progress even after initial adoption as the State continues to mold its regulations following the Minnesota State Legislature’s approval in 2023 to allow for recreational cannabis sales.  

ACTION: The City Council unanimously voted to table the ordinance.  

Hokkanen discussed an ordinance imposing a .05% local sales and use tax, effective April 1, 2025, following the approval in November by Chanhassen voters. The local option sales tax will fund the Chanhassen Bluffs Community Center.  

ACTION: The Chanhassen City Council unanimously approved the ordinance imposing a local sales and use tax. 

During Council presentations, Councilmember Haley Schubert thanked the city’s Parks & Recreation Department for their hard work in putting together a successful Tree Lighting Ceremony on December 7. Councilmember Kimber also highlighted the city’s work in communicating to the public the event’s new location.