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08.11.2025 CC MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES AUGUST 11, 2025 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, Councilmember McDonald, Councilmember Schubert, and Councilmember Kimber. COUNCIL MEMBERS ABSENT: Councilmember von Oven. STAFF PRESENT: Laurie Hokkanen, City Manager; Rachel Jeske, Planner; Andrea McDowell-Poehler, City Attorney; Patrick Gavin, Communications Manager; Jerry Ruegemer, Parks Director; Eric Maass, Planning Director; Drew Zoromski, Digital Communications Specialist; Sarah Thiessen, Communications Specialist; Jenny Potter, City Clerk. PUBLIC PRESENT: Balakrishna Chintaginjala, 8982 Southwest Village Loop Erik Hansen, SW Transit David Lutz, Attorney, 3137 Woodbridge Street, Shoreview Kevin Ho, 5540 Yellowstone Lane N., Plymouth PUBLIC ANNOUNCEMENTS: 1. SouthWest Transit Update – Erik Hansen Erik Hansen, CEO, reviewed the three services provided by SouthWest Transit. He summarized the total SouthWest Transit ridership for 2024 and explained the increased special events ridership to events such as the State Fair, sports events, and other festivals. He provided an overview of the potential for future growth at Southwest Transit. He explained that the sales tax passed in 2023 did not guarantee financial provision to SouthWest Transit, but they are negotiating with the Met Council to develop a policy to guarantee a percentage of the funds, and he said they would be promoting a bill at the State Legislature. He requested support from the City Council. Mayor Ryan thanked Councilmember Kimber and Councilmember McDonald for serving on the SouthWest Transit Board. She asked when he would bring a resolution to the City Council for them to consider so they could go back to the legislators and request assistance. Mr. Hansen responded that he thought there would be two resolutions to consider, one regarding the bill that would eliminate suburban transit providers and one about the financial considerations with the Met Council. City Council Minutes – August 11, 2025 2 Mayor Ryan reviewed the broad statement about support for local transit, which was a legislative priority. She said they could provide additional specifics. She thanked him for the information provided to the City Council. 2. Invitation to Chanhassen Community Day at Chanhassen Recreation Center Mayor Ryan invited residents to the Chanhassen Community Day at the Chanhassen Recreation Center on August 16. CONSENT AGENDA: Councilmember McDonald moved, Councilmember Kimber seconded that the City Council approve the following consent agenda items 1 through 7 pursuant to the City Manager’s recommendations: 1. Approve City Council Meeting Minutes dated July 28, 2025 2. Approve City Council Work Session Minutes dated July 28, 2025 3. Receive Park and Recreation Commission Minutes dated July 28, 2025 4. Approve Claims Paid dated August 11, 2025 5. Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 2166 Paisley Path 6. City Facilities Cleaning Contract 7. Resolution 2025-56 and Ordinance 749: Amending Chapter 10 Regulating Cannabis Retail Registration All voted in favor, and the motion carried unanimously with a vote of 4 to 0. VISITOR PRESENTATIONS. 1. Balakrishna Chintaginjala Citizen Action Request Balakrishna Chintaginjala. 8982 Southwest Village Loop, discussed artificial intelligence in agriculture. He reviewed how it was currently used in agriculture and explained how local farmers could benefit from implementing artificial intelligence. He summarized different initiatives that Chanhassen could try out. PUBLIC HEARINGS. None. GENERAL BUSINESS. 1. Appeal for Short-Term Rental License Revocation – 7331 Hazeltine Boulevard City Council Minutes – August 11, 2025 3 Rachel Jeske, Planner, summarized the three different violations received within 365 days at the short-term rental property. She explained that the short-term rental ordinance provided different options for the City Council, including the revocation of the short-term rental license. David Lutz, Attorney, read a response from the city to property owner Kevin Ho about not receiving a violation for the trash can placement due to the prompt response. He claimed that the city issuing the violation violated his due process rights. He stated that the city’s interpretation of the Ordinance violated due process since the city permitted pre-collection visibility, but not post- collection visibility. He requested that the decision be reversed. Mayor Ryan asked when the trash cans were removed from the premises. Mr. Ho explained that the trash was collected on July 10, and the trash cans were removed on July 11. Councilmember McDonald said that the residents in the neighborhood did not seem to like the VRBO, so the City Council would have to consider remedies to resolve the situation. He stated that the issues had been ongoing for some time, so the owner would have to tighten up the management of the residence. He asked how the owner would manage the renters who utilize the property. Mr. Ho responded that a message was sent out to all individuals who booked the property with the house instructions limiting the property to only four cars. Mr. Lutz noted that the previous violation of parking was in September 2024, and there had not been any concern since that time. Councilmember McDonald said he received emails from their neighbors, and they are not happy with the VRBO. He said that the property owner had to address the problems, but the City Council has a duty to the community to provide repercussions if the rules are not followed. He recommended making amends to his neighbors and creating tighter control of the property. Mr. Ho said he provided his number to the neighbors but never received contact about the concerns. Councilmember Schubert asked for clarification about the neighbor, stating they did not want it to be a violation. Ms. Jeske responded that they continued to discuss the violations internally, since they found evidence that the same violation had happened on June 13. The staff thought it was unreasonable to let the violation happen multiple times. Councilmember Schubert had asked for information about the trash cans being out the night before. Andrea McDowell-Poehler, City Attorney, stated that the ordinance could be tighter. Councilmember Kimber said that the three violations occurred within a calendar year. He said additional violations occurred when there was no rental license in place. He stated that they City Council Minutes – August 11, 2025 4 continued to hear from residents about concerns with the property. He said not acting on the violations was the bigger problem. Councilmember Schubert asked why he continued to rent out the property after receiving the letter from the city stating that the license had been revoked. Mr. Ho answered that he had a family with kids renting the space, and they had no other options. He was also appealing. Mayor Ryan stated that the complaints were not isolated to his property. She said that the City Council had heard from neighbors about violations at this property often. She stated that there was no consistency in trying to adhere to the policy. She said if they revoke the license, it was supposed to be for a year, but she suggested the City Council could consider six months. She asked about examples for additional terms for the licensee. Councilmember McDonald said he understood where the property owner was coming from, as it was an income-producing property. He appreciated the other options for the license revocation, but he did want to send a message that violations cannot occur. He said that the property owner should be leading the effort at the property. Mayor Ryan said the property owner was operating without a license. She asked if they had bookings for the rest of the month. Mr. Ho responded that if he canceled the reservations, he would lose his status with Airbnb and VRBO. He estimated he had six to eight reservations a month through November. Mayor Ryan explained the difficulty in understanding how to move forward, since the property owner had reservations. Councilmember McDonald suggested putting the property owner on a conditional license through the end of October. If the City Council received any complaints, the city would revoke the license for a year. Mayor Ryan clarified that they would have to ensure they were violations, not just complaints. Councilmember Schubert said she would like to see no violations after the probationary period. Councilmember McDonald said that the three strikes started after the issuance of a license. Ms. Jeske answered that the violations fell off after 365 days. There will be one violation remaining after September 2025. Councilmember Schubert clarified that the property owner would still have a strike after the probationary period. She stated she would be happy with either option. City Council Minutes – August 11, 2025 5 Mayor Ryan suggested that they could decide on additional stipulations after the probationary period. Councilmember Kimber asked if there were ways to monitor new bookings. He said it was difficult to enforce the bookings, but clarified that they would allow a probation through October, but if an additional violation occurred, he would lose his license for a year. Mayor Ryan suggested a 60-day probationary period, and he would need to come back and report to the City Council to determine the next steps. Councilmember McDonald said the property owner would share the rentals with the City Manager, and if he had violations of a renter not on the schedule, they would know he violated the terms. Ms. McDowell-Poehler said the property owner had a license, so she clarified that he would be on probation for sixty days, and if he had one more violation, his license would be revoked. She said the action taken would need to be determined now rather than in October. Councilmember McDonald said the property owner would suffer irreparable harm. He said they were putting off the decision for sixty days to allow the property owner to manage his property more appropriately. Ms. McDowell-Poehler clarified that the license would be revoked if there was a violation during the sixty-day period. She voiced concerns about the decision in October. She clarified that they had to act on the violations now rather than reviewing them in the future. She voiced concerns about reviewing the license if he met the terms of the probation. Mayor Ryan explained the concerns expressed by Ms. McDowell-Poehler. She said that they should be consistent with the ordinance after the sixty-day probationary period. Councilmember McDonald asked if they could add terms or conditions. Ms. McDowell-Poehler said they would add terms and conditions now, but they could say they could extend the decision by the default of the ordinance for sixty days for a final decision. Councilmember McDonald asked if the property owner must tell the city the information about his bookings during the sixty-day period. He encouraged the property owner to make changes. Mayor Ryan asked if it would be October 31 or sixty days. Mr. Ho responded that he blocked bookings after October 20. City Council Minutes – August 11, 2025 6 Mayor Ryan suggested setting the date as October 20, and they could bring the information back to the City Council on October 27. She asked Ms. Jeske how the arrangement would work from a staff perspective. Ms. Jeske answered that it would be complaint-based. Mayor Ryan asked if bookings were private information or if they could share information with the neighbors. Ms. McDowell-Poehler clarified that they could see when the property was booked online today. Councilmember Kimber clarified that no bookings could happen after October 20. He said that they were learning information about short-term rentals, and he suggested revisiting the penalties if violations occur. He said they had responsibility for the individuals who book the property, so he questioned the enforceable penalties. Mayor Ryan said that the City Council will face heat about the decision. The City Council extended grace to make sure that the violations do not occur. She stated that it was the property owner’s responsibility to adhere to the ordinances, and it would be his responsibility if he lost the ability to host bookings. Councilmember McDonald moved, Councilmember Schubert seconded that the Chanhassen City Council suspend a decision on the revocation on the license until October 20, with the conditions to allow the property owner to continue with the current bookings and make no new bookings until after the decision and share the information with the city, and the license could be terminated if there are complaints outside of the normal bookings. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. COUNCIL PRESENTATIONS. Councilmember Kimber thanked the Fire Department and the Carver County Sheriff for their work on Night to Unite. He stated that they filled the fire truck with donations. ADMINISTRATIVE PRESENTATIONS. 1. Celebrate the Northern Lights Awards received from MAGC for Communications Laurie Hokkanen, City Manager, recognized the City of Chanhassen Communications team, Patrick Gavin, Drew Zoromski, and Sarah Thiessen, for the four Northern Lights awards, including a Bronze Award for Public Health or Public Safety Video, a Bronze Award for Community Engagement, a Silver Award for Video Shot/Social Media Campaign, and a Silver Award for the Interview, Talk Show, or News Magazine Programming. Mayor Ryan thanked the City of Chanhassen Communications team for their impact. City Council Minutes – August 11, 2025 7 CORRESPONDENCE DISCUSSION. 1. 2026 Municipal Wastewater Charge - MCES Councilmember Schubert moved, Councilmember Kimber seconded to adjourn the meeting. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. The City Council meeting was adjourned at 8:39 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk