WS 2007 08 13
CHANHASSEN CITY COUNCIL
WORK SESSION
AUGUST 13, 2007
Mayor Furlong called the work session to order at 5:35 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman Litsey, Councilwoman
Ernst, Councilwoman Tjornhom, and Councilman Peterson
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Kate Aanenson, Paul Oehme, Todd
Hoffman, Greg Sticha, Charlie Siegle, and Lori Haak
UPDATE ON LICENSE CENTER IN CHANHASSEN.
Kate Aanenson provided an update on the work that's been done with Carver County to date in
selecting a site in Chanhassen for a license center. She introduced Steve Taylor with Carver
County Administrative Services who informed the council that the county is currently working to
secure the property located at 7808 Kerber Boulevard. He provided the particulars of a verbal
agreement with the owner regarding escrowed money for soil corrections, size and layout of the
facility, timing for approvals from the County Board and construction timeline. Mayor Furlong
asked for clarification on the location of the drive thru and asked staff to watch for stacking as
the plans proceed.
2008 BUDGET.
Greg Sticha highlighted changes made to expenditures and revenues which impact the levy
amount using assumptions from Carver County that the new construction estimate will be 1.8%
less than anticipated. Adjustments were also made for cost of living, wage adjustments and
health care costs. He outlined 3 scenarios for the projected levy and their impact on taxpayers.
Option 1 would be to levy the entire amount needed to balance the budget as submitted resulting
in a 1.1% increase in property taxes. Option 2 would eliminate the current vacant building
inspector position saving $71,000 to the general fund and balance the remaining $35,800 by
using levy dollars, resulting in a .37% increase in taxes. Option 3 would eliminate the current
vacant building inspector position and cut expenditures or look for additional revenues totally
$35,800 to keep the levy at $6,747,100, or 2.9% higher than the general fund levy from 1007,
resulting in 0% increase in taxes. Staff recommended Option 1 which would provide the greatest
flexibility for the Truth in Taxation notices. Councilwoman Ernst asked where additional
revenue would come from for Option 3 which calls for a 0% increase. Councilman Peterson
asked for actual versus projected growth numbers from Carver County. Councilman Litsey
stated he would like to see the city get realistic with their numbers and not under fund the budget
to provide a cushion for infrastructure projects in the future. Councilman Peterson noted that
according to the survey taken by city residents, taxes were their main focus. Greg Sticha asked
for council direction so staff can set a number for the preliminary levy which needs to be
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approved at the September 10 City Council meeting. Councilman Peterson asked to see the
fund balance spread sheet. Councilwoman Ernst asked if the city has explored the use of federal
grant money for street improvement projects. Councilman Litsey stated he would support
City Council Work Session - August 13, 2007
Option 1 with additional money added for additional leeway. Councilman Peterson asked to
review this item again at a work session and will call staff with specific questions. Mayor
Furlong asked to see the net receivables for special assessments. Councilman Litsey asked to see
the game plan for future street improvements. Councilwoman Ernst stated she would also give
staff a call with specific questions.
WATER SUPPLY & LAWN SPRINKLING UPDATE.
Todd Gerhardt reviewed the daily usage chart and provided an update on the storm that occurred
over the weekend. Paul Oehme reviewed the daily usage numbers for the last month and
provided an update on the well pump repairs, noting two wells are still down. Mayor Furlong
asked what the daily water usage number are in the winter, noting compliance from residents was
very good. He encouraged residents to continue with their conservation. Todd Gerhardt
explained how the city water systems compared with private well systems. Paul Oehme showed
graphics explaining the "Hydrologic Cycle" and aquifer locations within the city.
The work session was recessed at 7:00 p.m.. It was reconvened at 7:25 p.m..
UPDATE ON WETLAND REGULATIONS AND FOX/DORSEY APPEALS.
Brad Wozney from the Board of Water and Soil Resources (BWSR) was available to answer
questions. Kate Aanenson reviewed the Wetland Conservation Act (WCA) and how those
regulations affect the City in their review of the Fox/Dorsey appeals of Wetland Exemption
Determination. Lori Haak reviewed the state and local standards that affect the city, and
specifically how the process and regulations apply to the application submitted by Fox/Dorsey.
Roger Knutson explained the role of BWSR in the appeal process, noting they have the final say
if someone appeals the decision by the City Council. He also explained how changes in state law
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that went into effect on August 6 affect this appeal. Brad Wozney explained that generally the
rule changes are to meet state statute. Mayor Furlong asked for clarification on how the appeal
process will work with the City Council and what laws will apply. Roger Knutson explained that
this is the first time in the history of the city that an item like this has been appealed.
WATER SUPPLY & LAWN SPRINKLING UPDATE, (CON'T).
Paul Oehme continued with his presentation asking that the sprinkling ordinance be strictly
enforced for the rest of the summer while investigating improvements to Wells 2, 5 and 6 and
setting up a pumping schedule. Staff will also investigate the redevelopment of the Minnetonka
Middle School West well site and the potential advance of installation of the new well. Mayor
Furlong asked how soon the council would need to make a decision for well improvements for
next year. Paul Oehme stated approval should be made in the September-October timeframe.
Todd Gerhardt explained the difficulty of obtaining permits from the DNR for new wells versus
redevelopment of existing wells. Mayor Furlong asked about quality versus quantity.
Councilwoman Ernst asked if there was anything the city could do now to avoid problems in the
near future. Mayor Furlong asked about options for improving existing wells. Todd Gerhardt
stated staff will continue to monitor the situation and will bring back a report to the council in the
next month. Councilman Peterson asked if the school has considered providing their own well
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City Council Work Session - August 13, 2007
and not using the city's treated water. Todd Gerhardt explained the possibility of using "gray
water" for larger users.
PUBLIC WORKS FACILITY EXPANSION.
Paul Oehme gave a power point presentation showing the purpose of the public works facility
program study explaining what is public works, the current facility and operations which were
built in 1987, the existing building layout and proposed expansion, and current problems with
storage for the street and fleet departments. Staff has identified four solutions. Number 1 would
be an expansion to the existing site which would not accommodate the needs for the total build
out of the city. Number 2 would be constructing a new facility on the property currently owned
by the City on Park Place. Number 3 would be leasing space from the former Emplast facility at
950 Lake Drive, which staff considers not to be cost effective. Number 4 would be buying land
and constructing a new facility on Outlot F in the Chanhassen Lakes Business Park. Staff is
recommending Option 2 which would include constructing a new facility on the property
currently owned by the city at Park Place. Mayor Furlong confirmed that all council members
were in agreement that something needed to be done. Councilman Peterson stated the current
public works building's size is very marketable right now and suggested leasing space to other
governmental agencies i.e. MnDot or Southwest Metro Transit as a revenue source. He also
suggested saving architectural fees by duplicating buildings that have already been built in other
communities. Mayor Furlong noted he recognized the need to do something and asked staff to
explore the Park Place option, looking at saving money on architectural fees by using existing
building plans and material costs. Councilman Litsey suggested selling the existing facility and
Park Place property to buy new site. Council members discussed the pros and cons of using the
existing Victory Envelope building.
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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