WS 2007 11 13
CHANHASSEN CITY COUNCIL
WORK SESSION
NOVEMBER 13, 2007
Mayor Furlong called the work session to order at 5:30 p.m..
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman Litsey, Councilwoman
Ernst, Councilwoman Tjornhom, and Councilman Peterson
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Greg Sticha, Paul Oehme, Todd
Hoffman, Richard Rice, Kelley Janes, and Danielle Washburn
UTILITY RATE DISCUSSION, EHLERS AND ASSOCIATES.
Greg Sticha reviewed the different fees for water, sanitary sewer and storm sewer, explaining
what each fee is used for. Staff is recommending that the council approve going from a 2 tier
system to a 4 tier rate system as a means of promoting water conservation. Jessica Cook from
Ehlers and Associates gave an update on the goals for the utility system, and reviewed the water,
sanitary sewer funds, and operating and trunk funds. She reviewed the assumptions used in the
study taking into consideration growth, capital improvements and construction of the west water
treatment plant between 2008 and 2020 and explained now the water and sanitary sewer rates for
2006 through 2011 will be based on quarterly water usage fees per 1,000 gallons.
Councilwoman Ernst asked for clarification of the timeline and funding for construction of new
wells in 2008 versus 2012. Councilwoman Tjornhom asked which users, commercial vs.
residential, would be more greatly impacted by the 4 tier system. Mayor Furlong asked for
clarification on the irrigation meter usage costs in the 4 tiered system and what has been built in
for subsequent growth rates. Councilman Litsey asked why staff picked 4 tiers versus any other
number of tiers. Greg Sticha showed specific examples of how the new tiered rates will affect
the individual's water bill. Councilwoman Ernst asked for the worst case scenario if rates aren't
increased. Mayor Furlong asked for clarification on the dollar amount assigned to the number of
gallons used. Jessica Cook continued with her presentation recommending an increase in hook
up fees for sewer and water, showing a graph of cash balances for 2005 through 2020 for the
trunk water and sewer trunk funds, while explaining the assumptions used for growth and capital
improvements. She reviewed the recommended 2007 storm water rate increases, while showing
storm water cash balances, noting she will keep an eye on growth and will adjust timing of
projects in the future accordingly. Greg Sticha asked for council direction on the rate increases
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noting the item will be on the December 10 City Council agenda. All city council members
were in support of the user fee system. Todd Gerhardt explained how the city will assist in
educating the public on conservation measures. Mayor Furlong thanked staff and Jessica Cook
for their long term vision in assisting planning for the future. Paul Oehme explained how the
city will educate and notify residents of the billing changes.
2008 BUDGET:
Laurie Hokkanen presented the 2008 budget proposal for the Administration Department
showing 2007 versus 2008 expenditures and proposed 10% cuts. Greg Sticha presented the 2008
City Council Work Session - November 13, 2007
budget for the finance department, showing how total expenditures have decreased due to a
retirement in the department. He reviewed the audit and accounting services under contractual
services and the proposed 10% cuts.
The work session was recessed at 7:00 p.m. and reconvened at 7:30 p.m..
2008 BUDGET CONTINUED.
Paul Oehme presented the 2008 budget for the public works and engineering department,
showing 2007 versus 2008 expenditures and proposed 10% cuts. Councilman Peterson asked
about conservation measures being taken with city street lights.
UPDATE ON LYMAND BOULEVARD.
Todd Gerhardt provided background information on the Master Road Agreement that the City
has with Carver County and how the use of TIF dollars were used to fund road improvements
other than Lyman Boulevard. Paul Oehme discussed the timing of phases for construction, with
Phase I being done in conjunction with the opening of the new Chanhassen High School and cost
saving measures that will be used. Councilman Peterson asked about the use of round abouts in
the road design. Mayor Furlong asked about railroad crossing safety in conjunction with traffic
associated with the high school. Paul Oehme explained funding proposals for the city's portion
and where the money will come from and reviewed the timing for Phases I, II and III. Mayor
Furlong asked about a storm water pond on the Holasek property as a cost sharing structure
associated with the road project and city project.
UPDATE ON INFILTRATION/INFLOW PROJECTS.
Paul Oehme presented a power point presentation on the Infiltration/Inflow (I/I) projects for
2007 reviewing definitions, the Met Council's I/I surcharge program highlights, Chanhassen's I/I
sources and the 2006/07 city projects used to televise and repair sewer lines in the city. Mayor
Furlong noted the city needs to address and identify the source and provide solutions to the
grease deposits in the downtown area. Councilman Peterson asked about materials used by
cities, counties and state for pipeline construction. Paul Oehme continued with review of the
2006/07 Met Council sewer televising and repair program, noting the City is looking for a
$58,700 surcharge credit from the Metropolitan Council for repair of their pipe. Councilman
Peterson asked if Met Council televises their lines. Mayor Furlong asked about the level of
cooperation the city is receiving from the Met Council on the surcharge credit versus the money
spent for repairs. Kelley Janes explained how the Met Council monitors I/I from one end of the
city to the other.
Mayor Furlong adjourned the work session meeting at 8:55 p.m..
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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