WS 2008 06 23
CHANHASSEN CITY COUNCIL
WORK SESSION
JUNE 23, 2008
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 McDonald
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Todd Hoffman, Greg Sticha, and
Danielle Washburn
PARK AND RECREATION COMMISSION MEMBERS PRESENT:
Steve Scharfenberg
and Scott Wendt
BALL PARK IMPROVEMENTS AT CHANHASSEN HIGH SCHOOL;
SUPERINTENDENT JENNINGS.
Mayor Furlong provided highlights from the meeting he, City Manager Gerhardt and Park and
Rec Director Hoffman had with Superintendent Jennings and Rod Franks regarding opportunities
for the city and school district to work together to help build athletic fields at the new
Chanhassen High School. Superintendent Jennings apologized for not engaging in the
discussions sooner but stated he was open to an agreement which provided priority scheduling
for city programs after school activities. He explained that in order for the fields to be usable by
2010, bids were being opened at the end of the week so that the fields could be seeded by this
fall. Todd Gerhardt clarified that the outdoor facility usage was for all outdoor activities, with
the exception of the football stadium which was still under discussion. As far as the issue of the
sale of alcohol on school property, the city attorney had researched the issue and sent a memo
outlining the process of obtaining approval from the school board for a temporary liquor license.
Councilwoman Tjornhom noted she was glad the conversation had changed to an overall city
benefit and not exclusively for town ball usage. She asked for clarification on how the priority
scheduling would benefit the city regarding field usage and what other costs the city would incur
after the initial investment. Todd Hoffman explained how the priority scheduling would occur
and what the city would be getting for their investment. Councilwoman Ernst asked about the
possibility of obtaining funding from other organizations, clarification of what the $600,000
would cover, and how the scheduling will work with the high school. Steve Scharfenberg
reiterated the different type of activities that will benefit from the additional fields. Councilman
McDonald asked for clarification on the city’s $600,000 investment in relation to what land and
facilities could be purchased for that amount, and how students in the Minnetonka School
District will be dealt with. Councilwoman Ernst asked what would be compromised by using the
$600,000 for this investment. Council members agreed to support the investment to the school
district, but would need to approve a formal agreement at a future date. Superintendent Jennings
thanked the council again for re-visiting the issue.
City Council Work Session - June 23, 2008
2007 AUDIT REVIEW.
Andy Hering from HLB Tautges Redpath presented and reviewed in depth the financial results
and audit findings from the 2007 audit. Todd Gerhardt commended the members of the finance
department, Greg Sticha, Danielle Washburn and Katie Reed, for running their department so
efficiently which resulted in less audit fees and minimal findings. Councilwoman Ernst asked
for clarification of the under stated $2.5 million figure. Greg Sticha explained how the city
needs to continue to be conscience of the fund balances when setting utility rates in the future.
The work session was recessed at 7:00 p.m. It was reconvened at 8:45 p.m.
DISCUSS AMENDMENT TO PURCHASING POLICY.
Greg Sticha reviewed changes made to State purchasing guidelines, noting the biggest change
was the need for sealed bids with purchases over $100,000. Councilwoman Ernst asked about
standards used by other cities and if their RFP’s and sealed bid processes were similar.
Councilman Litsey felt the need for written quotes or RFP’s for items in the $5,000 to $10,000
range seemed cumbersome. Mayor Furlong asked for clarification that items being purchased
were typically in the CIP or budget. Councilman McDonald asked staff to clarify what happens
if an item is over the budgeted amount. Greg Sticha recommended changing the RFP amount for
professional services from $15,000 to $25,000.
PRELIMINARY DISCUSSION OF 2009 BUDGET.
Greg Sticha outlined the schedule for review of the 2009 budget, noting how the budget will be
affected by the County’s number of 2.45% for new construction, key financial strategies for the
general fund over the next 5 years, the debt levy schedule for the next 20 years, and the revolving
improvement fund. Councilman Litsey asked how regional cpi (consumer price index) numbers
have compared nationally over the last few years. Mayor Furlong asked for clarification of the
numbers in the debt levy schedule and revolving improvement fund. In looking for feedback
from council members, Councilman Litsey stated he would prefer setting goals versus specific
numbers with the preliminary numbers. Mayor Furlong stated he would like to set place holders
but would like to keep a focus on public safety and transportation issues. Councilwoman Ernst
asked what the city had done regarding the use of alternative energy sources. Councilman
McDonald asked if there were projects that could be delayed to assist with budget numbers
affected by increased fuel expenses. Councilwoman Tjornhom explained how Hennepin County
conducted a drill dealing with economic disasters, similar to the one the city conducted with
Carver County regarding natural disasters. Greg Sticha informed the council that this item
would be back at the first meeting in August, and that the preliminary levy number needed to be
set in September.
Mayor Furlong adjourned the work session at 9:45 p.m.
Submitted by Todd Gerhardt
City Manager Prepared by Nann Opheim
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