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09.08.2025 CC MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES SEPTEMBER 8, 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 von Oven, and Councilmember Kimber. COUNCIL MEMBERS ABSENT: Councilmember Schubert. STAFF PRESENT: Laurie Hokkanen, City Manager; Eric Maass, Community Development Director; Charlie Howley, Public Works Director/City Engineer; Kelly Grinnell, Finance Director; and Jenny Potter, City Clerk. PUBLIC PRESENT: Jeff Wong, 1674 Hemlock Way Erin Wong, 1674 Hemlock Way PUBLIC ANNOUNCEMENTS: 1. Teen Volunteer Recognition Mayor Ryan recognized the Teen Volunteers who served in various city-sponsored recreation programs from June through August. CONSENT AGENDA: Councilmember McDonald moved, Councilmember von Oven seconded that the City Council approve the following consent agenda items 1 through 9 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated August 25, 2025 2. Approve City Council Work Session Minutes dated August 25, 2025 3. Receive Planning Commission Minutes dated August 12, 2025 4. Receive Park and Recreation Commission Minutes dated July 22, 2025 5. Receive Commission on Aging Minutes dated June 20, 2025 6. Approve Claims Paid dated September 8, 2025 7. Appoint Youth Commissioner to Environmental Commission City Council Minutes –September 8, 2025 2 8. Award Professional Service Agreement for the 2025 Annual Pavement Inspection and Condition Rating Services 9. Extension of Conditional Use Permit (CUP) previously issued for a contractor’s yard at 1591 Park Road All voted in favor, and the motion carried unanimously with a vote of 4 to 0. VISITOR PRESENTATIONS. None. PUBLIC HEARINGS. None. GENERAL BUSINESS. 1. Approve the Final Plat and Development Contract for Pioneer Ridge (Planning Case 25-01) Eric Maass, Community Development Director, reviewed the final plat for Pioneer Ridge, addressing the grading and stormwater management concerns and the vehicular sight lines to Bluff Creek Boulevard. He reviewed specific questions received since it had been posted. He stated that the city determined that all deciduous and coniferous trees with a 10-inch DBH caliper or larger needed to be included in the tree survey. He stated that the anticipated construction schedule would be to clear trees, mass grade, and relocate utilities in Fall 2025, apply for a possible model home permit in winter 2025, and start home construction in spring 2026. He commented that the neighbors’ fire pit and trampoline removal needed to be determined between the two private properties, but MnDOT notified adjacent property owners that the encroachments needed to be removed. He stated that the city would approve construction plans and require as-built certification from the Engineer of Record, and require financial securities to ensure projects are built according to approved plans, which helps answer drainage concerns. Mayor Ryan asked what the established warranties were for the project. Mr. Maass answered that the city required the trees to be planted, and they would have a two-year warranty. If they do not survive, they must be replanted. Charlie Howley, City Engineer, answered that public utilities had a two-year warranty. Mayor Ryan stated that residents had concerns with drainage, and she asked what would happen if things resettled and there were drainage issues. She asked if there was a recourse for residents or the city. Mr. Howley answered that issues are often noticed within the construction phase or before the securities are released. He said if things change in five years, the city will investigate the change and take the proper actions. He stated that a property owner needed to get permits to make changes, so the city would know about the changes. He commented that if things generally work right away, they will work in the future. City Council Minutes –September 8, 2025 3 Mayor Ryan asked if the berm was still a part of the project. Mr. Howley answered that there was a berm throughout the northwest property line, but he did not have the grading plan in front of him. Mayor Ryan asked if residents continued to be concerned about the speed and if the traffic team would look at it. She asked how they should proceed with the speed question. Mr. Howley answered that the road met the current speed limit requirements, but Bluff Creek Drive was on their regular speed trailer schedule, so they would keep monitoring the roadway. He stated that they proactively stripped fog lanes on the road. He invited concerned residents to reach out to the traffic safety committee. Mayor Ryan asked that they consider the continuity, since driving through a commercial area, the speed limit was 30 miles per hour, but in the residential area, the speed limit was 35 miles per hour. Mayor Ryan invited residents who had questions to come forward and share them with the City Council. Jeff Wong, 1674 Hemlock Way, asked about the sight-line verification. He asked how the verification was conducted to confirm that the grading was sufficient. Erin Wong, 1674 Hemlock Way, thanked them for paving along Lyman and Powers Boulevard. She asked if they would close the Pioneer Trail walking path and Bluff Creek sidewalk during construction. She stated that people had moved since MnDOT put the land up for sale, so she asked if new residents were informed about moving the encroachments. She stated she wanted to make sure the drainage was completed correctly on Lot 14. Mr. Howley stated that there was a requirement for an as-built survey, so they could complete a desk top analysis of the site line, which they had done to date. He commented that the staff can also go out there if the new private street seems correct. He stated they would have to ask the developer about whether they are closing down the paths. Mr. Maass answered that they might have a better idea of their construction staging, so they could ask the developer. He stated that if properties were turned over since the land was sold, the buyers should be aware that the project was occurring. He commented that they could work with the applicant to send a letter to residents about when they planned to mobilize. Mayor Ryan suggested putting dates in the update letter for those who subscribe to the project page. She asked about the drainage on lot 14. Mr. Howley stated he did not know if the house would look weird if it were shorter, but the units would look identical. He commented that they might see a retaining wall behind lot 14 to allow a swale to get by. He said that since the house was less deep, it would help with drainage. He commented on the trickier drainage part within the outlot, since the swale became tighter and shallower. City Council Minutes –September 8, 2025 4 John Anderson, Brandl Anderson, discussed that the access roads would need to be connected, so there would be a short period of time during which they would be closed, and they would put up signs about the issues. He stated they plan to do the grading and tree removal this fall and wait to close the trails until the spring. He stated that the overhead powerline would happen in 2026, so they would have to do some grading and utility relocation before this time. He stated that the seller should disclose to the buyers about a pending plat, but they can do a neighbor notification about the timing. He discussed Lot 14 drainage and that the pad depths vary, and that they will do a shorter house in the location. He commented that the common area was owned by the Homeowners Association, so there would be a specific point of contact concerning drainage. He said that they had a copy of the development agreement, and the small details were set. Mayor Ryan asked if there were any changes in the development contract. Mr. Maass answered that there were no substantial changes. Councilmember von Oven moved, Councilmember McDonald seconded that the Chanhassen City Council approves the requested final plat and development contract with minor modifications as may be approved by the city attorney for the Pioneer Ridge Subdivision, subject to the conditions of approval, and adopts the attached Findings of Fact and Decision. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. 2. Resolution 2025-61: Awarding Sale of $10,205,00 GO Tax Abatement and Capital Improvement Bonds, Series 2025B Kelly Grinnell, Finance Director, introduced Nick Anhut from Ehlers to summarize the results of the bond sale. Nick Anhut, a representative from Ehlers, summarized the nine bids received for the authorization of the bonds. He stated that the winning bid was from Hilltop Securities. He stated that there was a good turnout for the bond sale. He summarized the financial impacts, which would deliver $10,344,202 in net proceeds for the project. He reviewed the final action and consideration. Councilmember Kimber moved, Councilmember von Oven seconded that the Chanhassen City Council adopt Resolution 2025-XX Awarding authorizing the issuance and awarding the sale of $10,205,00 General Obligation Tax Abatement and Capital Improvement Plan Bonds, Series 2025B and pledging for the security thereof, tax abatements, and levying a tax for the payment thereof. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. 3. Resolution 2025-62: Approving the Preliminary 2025 Tax Levy, Collectible in 2026, and Establishing the Truth-in-Taxation Public Meeting Date City Council Minutes –September 8, 2025 5 Kelly Grinnell, Finance Director, summarized the changes discussed in the City Council work sessions. She noted that the current general fund budget was balanced and that there would be a projected 7.2 percent increase from the Pay 2025 Levy lost month, with the hope of reducing the final levy to 6.9 percent. She reviewed the increases for the 2026 General Fund Budget, including the wages and benefits. She reviewed additional increases, such as the primary and general elections, the sheriff’s contract, contingency, and non-wage/benefit expenditures. She summarized the preliminary 2026 General Fund Budget. She provided an overview of the outlook for the special revenue funds, capital funds, and utility funds. She explained the updated property tax levy projections. She summarized how the levy would impact the taxes for different properties in the city. She compared the proposed levy increases with those of other cities. She reviewed the budget calendar for the City Council regarding the tax levy. Councilmember von Oven asked about the decrease in a particular year of funding for the pavement management program. He asked if the decrease did not indicate a decrease in the number of projects. Ms. Grinnell confirmed that there was adequate funding to do all the projects that were planned. Councilmember von Oven asked if there was danger in losing health insurance because they do not want to give it to us at the price. Ms. Grinnell answered that they were legally obligated to cover the city employees until the end of 2026. Councilmember von Oven moved, Councilmember McDonald seconded that the Chanhassen City Council adopt a Resolution Approving the Preliminary 2025 Tax Levy Collectible in 2026, and Establishing the Truth-in-Taxation Public Meeting Date. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. COUNCIL PRESENTATIONS. None. ADMINISTRATIVE PRESENTATIONS. None. CORRESPONDENCE DISCUSSION. None. 1. Second Quarter 2025 Economic Development Activity Report Councilmember Kimber moved, Councilmember von Oven 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 8:15 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk