WS 2007 07 23CHANHASSEN CITY COUNCIL
WORK SESSION
JULY 23, 2007
Mayor Furlong called the work session to order at 5:35 p.m. Todd Gerhardt introduced
Sergeant Peter Anderly, the new sheriff's office liaison to the City Council.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman Litsey, Councilwoman
Ernst, Councilwoman Tjornhom, and Councilman Peterson
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Paul Oehme, Todd Hoffman, Beth
Hoiseth, Sgt. Peter Anderly, Greg Sticha and Danielle Washburn
COUNCIL INVITATION TO NATIONAL NIGHT OUT, AUGUST 7.
Beth Hoiseth provided an update on another successful Safety Camp held this year and thanked
all the departments involved. She then invited all city council members to visit block parties on
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August 7 for National Night Out and outlined the scheduled events. Councilwoman Tjornhom
commented on the decreased number of solicitors this year compared with previous years.
LODGING TAX UPDATE.
Linda Walton, Chamber of Commerce President, reviewed the bio's of members who have been
appointed to the Tourism Committee including Ladd Conrad, Howard Anderson, Jeremy Hundt,
Gary Bubellke, Tata Clauson, Kelly Larson and Laurie Hokkanen. She then introduced Carol
Schultz with the City of Shakopee, Todd Werhauser with the City of Lakeville and Ladd Conrad,
President of MTM Advertising. Carol Schultz provided background information on how the
lodging tax was initiated in the State of Minnesota and the City of Shakopee, not as an additional
tax on residents but a way of generating revenue for marketing. She provided a list of
publications and marketing tools used by the City of Shakopee and how to measure your return
on investment. Councilwoman Tjornhom asked for examples of what Shakopee advertises.
Todd Werhauser passed out copies of the marketing and budget plan for the Lakeville
Convention and Visitor's Bureau (CVB) and provided historical information on how and why the
City of Lakeville implemented the lodging tax. He provided examples of how to use marketing
tools and financial models for marketing. Councilman Peterson asked for clarification on how
Lakeville has been tracking the success of their marketing and asked Mr. Werhauser to speculate
on the amount of money needed and what that money would be spent on for a successful
marketing plan. Carol Schultz explained how a diversified advisory committee is essential to
provide marketing advice. Mayor Furlong asked for clarification of funding sources available to
the CVB. Councilwoman Ernst asked if the local businesses in Shakopee and Lakeville were
supportive of the lodging tax. Ladd Conrad provided background on his practical experience of
working with the Minneapolis-St. Paul hospitality business for the last 15 years and the tracking
tools his company has used to measure success. He explained the target market and that the goal
is to get visitors to stop in Chanhassen before going into the downtown Minneapolis-St. Paul
area. He showed examples of advertising that has been used in the past. Mayor Furlong asked
for clarification on multipliers and marketing returns from the Lakeville handout. He then asked
City Council Work Session - July 23, 2007
for council feedback. Councilman Litsey stated he continues to be supportive of this proposal, as
he was in May when it was on the consent agenda. Councilwoman Tjornhom noted she
appreciated the proposal but still had questions about taxpayer dollars and why hotels weren't
contributing for marketing dollars. Councilman Peterson stated he still wanted to see the return
on investment, documentation to support the 465 number, would want to approve a budget prior
to approving the lodging tax, and would like to see the hotels contribute to advertising fees. He
noted he would like to see a compelling reason why government should be involved in
implementing this lodging tax. Councilman Litsey stated he felt it would be a "missed
opportunity" if the council didn't seize the moment to get involved. Councilwoman Ernst did a
Goggle on Chanhassen and highlighted all the information that is already available on the
internet. She did not feel the need to spend additional tax dollars. Mayor Furlong explained how
hotels would use their money to market their own hotels and outlined the overall economic
benefits. He was impressed with the qualifications of the people on the tourism committee but
feels the council needs to track their progress. In the city's strategic planning process, all council
members were supportive of marketing the city and this is an opportunity to do that. He
suggested that if the council can get specific questions answered, to implement the lodging tax
with a sunset date at which time it will be re-evaluated. Councilman Peterson reiterated that he
needs to see and approve a budget, along with clarification on the 465 number and reaction from
local hotels regarding attaching a fee to their hotel statement.
Mayor Furlong recessed the meeting at 7:10 p.m.. The work session was reconvened at
8:15 p.m..
2006 AUDIT RESULTS, HLB TAUTGES REDPATH.
Greg Sticha provided background information on the audit process and reviewed numbers from
the audit findings. Todd Gerhardt thanked Greg Sticha and Danielle Washburn for their time and
effort on the audit. David Mol and Andrew Hering with HLB Tautges Redpath outlined the
2006 audit findings in a power point presentation. The reports issued included the Annual
Financial Report which gave the City a clean opinion. The GFOA Award was awarded to the
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City of Chanhassen for the 14 year in a row. The State Compliance Report had no findings of
non-compliance. The Report of Internal Control reported 3 items as significant deficiency which
Mr. Mol explained in previous years would not have been an issue. And the Audit Committee
Letter. Other items reviewed were the financial results, (both government and business type
activities), budget performance, general fund reserves, and recent standards (audit and
accounting).
TIER I DRAFT ENVIRONMENTAL IMPACT STATEMENT, TH 41 MINNESOTA
RIVER CROSSING.
Todd Gerhardt presented highlights from the meeting he and Mayor Furlong attended with other
cities and counties involved with the Minnesota River Crossing study, noting that Chaska and
Carver had chosen alternatives W2 and C-2A or a combination of the two. He explained that the
MnDot report states the western alignments are less expensive to build and have less social
impact than the eastern alignments. He suggested the City needs to provide written comments to
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the EIS by August 10 but since there will not be a city council meeting before that date, staff
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City Council Work Session - July 23, 2007
will prepare a letter of response that will be sent to council members for comment. Paul Oehme
explained the discrepancies staff has identified from Chanhassen's perspective. Mayor Furlong
asked where the Seminary Fen fits in the criteria with the study. Todd Gerhardt explained that
MnDot does not have criteria to address the fen, but MnDot has stated that the fen has
deteriorated due to development in the area. Lori Haak will be preparing a report to address
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those findings. Mayor Furlong noted that there is a meeting planned for August 8 with the
counties and cities involved which may provide more information to include in the response
letter. Councilwoman Tjornhom explained that from her observation at river crossing meetings
she's attended, it appears that Chaska and Carver have resigned themselves to the fact that the
crossing is going to happen somewhere in their area and they need to work together to resolve
their issues. Todd Gerhardt suggested that the City of Chanhassen and the council need to make
a strong statement opposing eastern options which affect the Seminary Fen.
Mayor Furlong adjourned the work session meeting at 9:15 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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