MONDAY, JULY 28, 2025  
CHANHASSEN CITY HALL, 7700 MARKET BOULEVARD  

Summary   

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

The City Council discussed proposed adjustments to the city’s staff compensation structure as part of its ongoing efforts to support employee retention and remain competitive in the labor market. This conversation builds on the city’s 2021 Compensation and Classification Study, which identified issues with salary progression, pay compression and market alignment at that time. Staff indicated the changes could be absorbed into the existing budget without affecting the previously projected levy. This review aligns with the city’s commitment to revisit the pay plan every 4–5 years and reflects input gathered through employee surveys and strategic priorities identified in the City’s 2021–2024 Strategic Plan. 
 
Council members expressed general support for the proposed compensation changes and encouraged staff to continue looking at the city’s overall approach to employee satisfaction and retention. Comments focused on the importance of taking a well-rounded view, considering not only compensation but also other factors such as internal growth opportunities, benefits and workplace structure. Council emphasized a desire to stay ahead of the curve and affirmed their commitment to being a competitive and supportive employer that invests in its people. 
 
Avienda Regional Stormwater Discussion 

The City Council held a work session to review a proposed revision to the Avienda development’s regional stormwater management plan, which would relocate a previously approved stormwater pond from the eastern edge of the site near Powers Boulevard to a more central location. Permits for stormwater infrastructure within Avienda are required from both the City of Chanhassen and the Riley Purgatory Bluff Creek Watershed District (RPBCWD).  The discussion builds on prior Council conversations and stems from a current developer application to the RPBCWD to amend the stormwater permit issued by that watershed district. Because the current stormwater configuration is embedded in the approved Development Plan DP8.2 (dated September 8, 2022), Council confirmed that a formal PUD amendment would be required, triggering review by both the Planning Commission and City Council. 

Council members shared feedback including the following: 

• Concern about the already lost public open space between wings of the apartment building as a result of the donut shaped building which created a ~2 acre private open space. 

• Loss of a plaza space and potential "social district" opportunity.   

• The schematic plan shows a more traditional suburban style development that will result in people driving to their destination, parking, and then leaving, compared to the initial vision of a destination development that someone would drive to and stay for many hours. 

• Interest in learning more about the aesthetic of the pond and the basis for its size. 

• Disappointment that an application was made to the RPBCWD prior to the development team having a formal discussion about the stormwater concept with the City Council. 

In summary, the potential loss of the central pedestrian corridor and plaza, potential reductions in restaurants and shifts in land use—from restaurant to large format retail and from public to private spaces – appeared as signs of a shifting development direction.  

Council emphasized the importance of timely and direct engagement by the private development team with the city council and city staff before major investments are made or assumptions about approval are formed. There was a shared interest in hearing more from the developer to better understand their revised goals and ensure the evolving site plan continues to reflect the city’s vision and community expectations. 

City Council Roundtable 

The City Council held its quarterly roundtable work session, an open forum for councilmembers to raise topics of interest, ask questions of staff and propose new issues for future consideration. This format allows for informal discussion and helps identify items that may require further research or formal action. Topics discussed included: 
 
-A resident petition for a revision to the slow-no-wake elevation on Lake Minnewashta: The City Council discussed a citizen petition to raise the no wake threshold on Lake Minnewashta from 945.0 to 945.9 and reviewed the process required to evaluate such a change. Staff outlined two potential approaches—either selecting a draft number based on existing input or conducting broader public outreach to determine the threshold. Regardless of the approach, public engagement and a formal hearing will be part of the process, followed by a required 120-day review by the Minnesota DNR. Council acknowledged that any change would not take effect until summer 2026 and emphasized the importance of early coordination with the DNR to ensure the proposed number is feasible. 

-A resident petition asking the council to consider establishing an ordinance that would require public hearings before approving new utility or street connections between Chanhassen and adjacent cities. The City Council reviewed the request and recommended against pursuing an ordinance, noting the city lacks authority over such decisions initiated by other jurisdictions.  
 
-Emerald Ash Borer and heritage trees. The City Council received an update on the city's response to emerald ash borer, including ongoing treatment and removal efforts and the current tree inventory. Council also expressed interest in revisiting the city’s tree policy, particularly around protections for older, larger “heritage” trees and agreed to continue that discussion at a future meeting. 

-Pools and fencing: The City Council discussed whether Chanhassen’s fencing requirements for swimming pools and in-ground spas are more restrictive than those in other cities. Council asked staff to review how the city’s code compares, particularly regarding newer spa models with secure, weight-bearing covers and whether the current approach still makes sense. 

-Lake Ann Trails: Council asked staff to provide an update at a future meeting on the Lake Ann trail system and archaeological findings that have delayed the project.  

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

Consent Agenda  

The Council unanimously approved the following items on the Consent Agenda. They were: 

• Approve City Council Work Session Minutes dated July 14, 2025 

• Receive Environmental Commission Minutes dated April 9, 2025 

• Receive Commission on Aging Minutes dated May 16, 2025 

• Receive Park and Recreation Commission Minutes dated May 27, 2025 

• Receive Economic Development Commission Minutes dated June 10, 2025 

• Approve Claims Paid dated July 28, 2025 

• Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 6788 Manchester Drive. 

• Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 2150 Majestic Way. 

• Accept Bids and Award Contract for the 2025 Sealcoat Project 

• Resolution 2025-XX: Resolution Calling for a Public Hearing on Proposed Property Tax Abatements