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09.14.2026 CC MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES SEPTEMBER 14, 2026 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, Councilmember Schubert, and Councilmember Kimber. COUNCIL MEMBERS ABSENT: None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie Howley, Public Works Director/City Engineer; Kelly Grinnell, Finance Director; Patrick Gavin, Communications Manager; Jerry Ruegemer, Park & Recreation Director; Andrew Heger, Fire Chief; George Bender, Assistant City Engineer PUBLIC PRESENT: Tony Shen, 9219 Lake Riley Boulevard Sharon Krumm, 9225 Lake Riley Boulevard Paul Lundeen, 9245 Lake Riley Boulevard Craig Schulz, 361 Deerfoot Trail Jake Petersen, 9203 Lake Riley Boulevard Balakrishna Chintaginjala, 8982 Southwest Village Loop Roni Lundeen, 9245 Lake Riley Boulevard PUBLIC ANNOUNCEMENTS: 1. Teen Volunteer Recognition Mayor Ryan recognized the 2026 Teen Volunteers who served during the city-sponsored recreation programs from June through August. CONSENT AGENDA: Councilmember McDonald moved, Councilmember Kimber seconded that the City Council approve the following consent agenda items 1 through 8 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated August 31, 2026 2. Approve City Council Work Session Minutes dated August 31, 2026 3. Approve Claims Paid dated September 14, 2026 City Council Minutes – September 14, 2026 2 4. Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 8113 Marsh Drive (Lot 41, Block 2, Hidden Valley) 5. Award Construction Contract – Red Cedar Point Stormwater Improvement Project 6. Approve Stormwater Operations and Maintenance Agreement for Santa Vera Apartments Phase II (25-07) 7. Resolution 2026-66: Request for Municipal State Aid Variances for the Pleasant View Road Rehabilitation Project 8. Resolution 2026-67: Call Public Improvement Hearing for the 2027 City Pavement Rehabilitation Project. City Project No. 27-01 All voted in favor, and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. 1. Balakrishna Chintaginjala Citizen Action Request Balakrishna Chintaginjala, 8982 Southwest Village Loop, provided a summary of the new federal child investment program available through TrumpAccounts.gov. He discussed the benefits of the program and requested that the City Council and City Administration provide guidance to residents about the program. FIRE DEPARTMENT/LAW ENFORCEMENT UPDATES. None. PUBLIC HEARINGS. 1. Resolution 2026-68: Lake Riley Blvd Reconstruction Project Improvement Hearing George Bender, Assistant City Engineer, reviewed the project scope for the Lake Riley Boulevard Rehabilitation. He discussed the project area and scope. He discussed the three different options in the feasibility study, which were selected to meet fire code and engineering standards. He summarized the other feasible considerations for the project, including maintaining the existing street width, pavement rehabilitation without widening, parking, and alternative stormwater management. He stated that the maximum length of a cul-de-sac is 750 feet per Fire Code and the existing turn-around was not compliant with Fire Code or Engineering Standards. He provided an overview of the budget and a cost summary for all three options of the project. He stated that the preliminary assessment amounts would follow the Flat Rate assessment methodology. He summarized the public engagement effort, including the 5-year capital improvement plan map on the City’s website, the 1-year advanced notification via postcard, the Project Updates email, a resident survey, an online story map, an open house, a mailed notification letter about the public hearing, and public notification in the Sun Sailor. He reviewed City Council Minutes – September 14, 2026 3 the public feedback, which included a lack of general support for widening the existing street, the elimination of on-street parking, and water quality improvements. He discussed the project scheduling with the goal of starting the construction in May 2027, with final completion being in June 2028. Councilmember Schubert asked if they intended to have another open house for the neighborhood once the final design was closer. Mr. Bender answered that if it was new information, they would hold another open house. Mayor Ryan noted that the City Council was not in support of widening the road. The City Council would like to keep the road width at 20 feet and to evaluate both projects depending on the needs of stormwater management. Mayor Ryan opened the public hearing. Roni Lundeen, 9245 Lake Riley Boulevard, stated that the stormwater management was poorly done on the street. She expressed concerns about the debris that goes into the lake. She said that she was in favor of full reconstruction to help maintain the cleanliness of the lake. She commented that emergency vehicles had difficulty responding because of the nature of the road. She requested that the address for Lake Riley and Lake Riley Park change, so the GPS did not bring people to the end of the cul-de-sac. Jake Petersen, 9203 Lake Riley Boulevard, said that the cul-de-sac was a unique situation and there would need to be filtering to be done to deal with the water flow. He stated that the parking was important, so there needed to be some allocation for parking for guests and service providers. He thanked the city staff and City Council for being responsive. He encouraged an open house if they develop new plans. Craig Schulz, 361 Deerfoot Trail, said that they would be deeply impacted by any widening of Lake Riley Boulevard. His property already has an HOA storm sewer and a parking pad, which impacted the usefulness of their property. He expressed concerns about losing trees impacting his property value. He stated that a twenty-foot road should be sufficient for the traffic on Lake Riley Boulevard. He referenced the Heritage Tree Ordinance and discussed the benefits of the trees for protecting Lake Riley. Paul Lundeen, 9245 Lake Riley Boulevard, clarified the costs of the different project options. He asked about the shelf life of the Option D project. He did not want to pay project costs multiple times. He preferred Option A. Sharon Krumm, 9225 Lake Riley Boulevard, asked for the City Council to think about the land that they would be taking away from their neighbors in Option A. She did not feel comfortable with the option. She suggested investing in a smaller fire truck for smaller streets in the city or City Council Minutes – September 14, 2026 4 parking on one side of the street. She did not want to reduce the property values of her neighbors while still thinking of creative options to remedy the problems. Tony Shen, 9219 Lake Riley Boulevard, said he was concerned since option A would take six feet from residents’ backyard. He said that the maximum hard cover a resident would have would be 25 percent, so if the city widened the road, they would be taking away vegetation and green space that protects the lake quality. He thought Option C caused the least damage. Mayor Ryan closed the public hearing. Mayor Ryan asked Mr. Bender to address the life of an FDR. Mr. Bender answered that they typically get twenty years out of an FDR. He said that the full reconstruction was the best dollar per year, but it would have other impacts, such as triggering the watershed rules. Mayor Ryan clarified that the shelf life for an FDR was between 20 and 30 years. Mr. Bender answered that the shelf life would depend on how quickly they would have to come back and mill-and-overlay and the quality of the gravel section underneath. Mayor Ryan acknowledged the concern with the turnaround. She asked if he had evaluated different options in the cul-de-sac that would not be the full 94 feet that would address the stormwater management. Mr. Bender responded that there was a hammerhead approach and a Y- approach turnaround that met fire standards. He stated that the hammerhead had the most feasibility, but both the hammerhead and Y-Approach would have major impacts on the north side of the road. Mayor Ryan requested that they keep emergency vehicle access in mind while they are considering the final options. Councilmember von Oven thanked the residents for coming to the meeting. He said that the City Council was looking at the project as an exception to the city’s standards to maintain the character of the neighborhood. He said that this was not design finalization. Councilmember McDonald thanked the city staff for bringing forward the design options. He stated that there were a number of neighborhoods in the community that were designed for horse and buggy. He said that they were faced with the dilemma of community growth. He commented that Lake Riley was being decertified as an impaired body of water, and he thanked the residents for their work to help water quality. He said that the goal was to increase the value of the property by providing adequate infrastructure and water management. He stated that there was buckthorn that needed to be removed, but he did not think they needed to impact the heritage trees. City Council Minutes – September 14, 2026 5 Mayor Ryan summarized the input and discussed the need to consider how to restructure the road and implement stormwater management. She encouraged residents to sign up on the project webpage. Councilmember Schubert moved, Councilmember von Oven seconded that the Chanhassen City Council adopts a resolution accepting the feasibility study, ordering the improvements, and authorizing preparation of plans and specifications for the 2027 Lake Riley Boulevard Rehabilitation Project. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. GENERAL BUSINESS. 1. Resolution 2026:69: Approving the Preliminary 2026 Tax Levy, Collectible in 2027, and Establishing the Truth-in-Taxation Public Meeting Date Kelly Grinnell, Finance Director, reviewed the preliminary 2027 General Fund Budget. She discussed the wages and benefits for both current union contracts and non-union employees. She discussed other items that had increases for the 2027 General Fund balance, including the sheriff’s contract, utility expenses for the new Civic Campus, the Civic Campus Park Building operating expenses, legal services, and street maintenance. She discussed the outlook for other funds, including the special revenue funds, debt service funds, capital funds, and utility funds. She commented that they were forecasting a 7.1 percent tax levy increase, largely due to debt service payments for the Civic Campus and Community Center. She summarized the market values for taxes payable in 2027 for residential properties, commercial and industrial properties, apartments, and agricultural properties. She provided examples of the property tax impact on different house types and commercial properties. Councilmember McDonald moved, Councilmember von Oven seconded that the Chanhassen City Council approves the resolution approving the preliminary 2026 tax levy, collectible in 2027, and establishing the Truth-in-Taxation Public Meeting Date. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. COUNCIL PRESENTATIONS. Councilmember Schubert stated that residents can bring children to the City Council meetings to understand how local government works. Councilmember Kimber said that Southwest Transit broke the record for how many people they transported to the State Fair. ADMINISTRATIVE PRESENTATIONS. 1. Second Quarter Financial Report City Council Minutes – September 14, 2026 6 CORRESPONDENCE DISCUSSION. None. Councilmember Kimber moved, Councilmember Schubert seconded to adjourn the meeting. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 8:36 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk