WS 2009 11 09
CHANHASSEN CITY COUNCIL
WORK SESSION
NOVEMBER 9, 2009
Mayor Furlong called the work session to order at 5:40 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman Litsey, Councilwoman
Ernst, and Councilwoman Tjornhom
COUNCIL MEMBERS ABSENT:
Councilman McDonald
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Paul Oehme, Kate Aanenson and Greg
Sticha
Mayor Furlong amended the agenda to include an item C. Discussion of the process for the City
Manager’s annual review.
UPDATE ON UTILITY RATE STUDY, EHLERS AND ASSOCIATES.
Greg Sticha reviewed the changes highlighted in the executive summary before introducing
Mark Ruff with Ehlers and Associates who reviewed the changes in more detail. Todd Gerhardt
explained that the rate adjustments were being made to reflect the actual growth numbers in the
city rather than projected numbers. In review of the quarterly water usage fees, Mayor Furlong
asked what analysis had been done in recommending the change. Councilman Litsey asked
about the number of people affected and the amount of money being lost due to the change.
Under the sanitary and storm sewer rates, Mark Ruff reviewed the historical and proposed rates
and the average impact for the different tiers of usage. Mayor Furlong asked what would need to
be done to keep the increase at 5%. Councilwoman Tjornhom asked for the advantages and
disadvantages of keeping the increase to 5%. Councilwoman Ernst asked about the DNR’s
impact on the increase. Mark Ruff explained how the Metropolitan Council also dictates the
dollar amount needed. Todd Gerhardt reviewed the capital projects that need funding from the
city’s utility fees. Mark Ruff reviewed the following charts: Water Operating Fund Ending
Cash Balance, Water Trunk Fund Cash Balances, Sewer Operating Fund Ending Cash Balance,
Sewer Trunk Fund Cash Balance and Storm Water Fund Ending Cash Balance. Councilman
Litsey asked about the proposed change in practice of the City charging itself for utilities and if
that had been taken into account with this analysis. Todd Gerhardt thanked the City Council for
planning for the future on an incremental basis. Mayor Furlong agreed that he liked the fact that
the City Council looks at the city’s rates on an annual basis. Greg Sticha stated staff will bring
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the adjusted rates back with the budget at the December 14 City Council meeting.
REVIEW DEVELOPMENT FEES, INCLUDING COMPARISON TO KEY FINANCIAL
CITIES.
Todd Gerhardt explained that staff has been surveying various communities over the past couple
months to ascertain the amount of development fees charged. Kate Aanenson reviewed the two
development scenarios that were used for the comparisons with other key financial communities.
City Council Work Session – November 9, 2009
Mayor Furlong asked for an explanation of why Chanhassen’s PUD fees seem lower than other
communities. Councilwoman Ernst asked why Chanhassen’s storm water management fees are
higher than other key financial communities. Councilwoman Tjornhom asked about feedback
from developers regarding the city’s fees (high or low) compared to other communities.
Councilwoman Ernst asked how the comparison fee report compared with last year’s numbers.
Kate Aanenson showed an example of the City’s web site which posts development fees. Todd
Gerhardt recommended that staff keep a copy of this report for future use.
DISCUSSION OF PROCESS FOR CITY MANAGER’S ANNUAL REVIEW.
Mayor Furlong reviewed the schedule and dates for the City Manager’s annual review process,
which is similar to last year’s process. Todd Gerhardt stated he will provide the review sheets
and work plan to council members by Friday. Councilwoman Tjornhom volunteered to receive
the work sheets from the other council members and tabulate the results. Councilwoman Ernst
asked to add a half number into the scale.
Greg Sticha asked that the resolution for the library refunding bonds be discussed and renewed
for another year due to the fact that interest rates probably will not change dramatically by the
end of this year.
Mayor Furlong adjourned the work session at 6:45 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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