WS 2010 10 25
CHANHASSEN CITY COUNCIL
WORK SESSION
OCTOBER 25, 2010
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, Kate Aanenson, Paul Oehme, Todd
Hoffman, Greg Sticha, Chief Roger Smallback, Danielle Washburn, and Kevin Crooks
DISCUSSION REGARDING MODIFICATION TO THE TAX INCREMENT
FINANCING (TIF) PLANS FOR TIF DISTRICTS 4 AND 5.
Laurie Hokkanen reviewed the modifications being presented for approval in the EDA and City
Council meetings. Todd Gerhardt explained that these modifications were requirements of the
State Auditors Office. Councilman McDonald asked about the money being transferred to TIF
District 10. Councilwoman Ernst questioned the specifics being requested with the
modifications to the plans for TIF Districts 4 and 5, explaining that she was not comfortable with
the numbers being presented and the information that’s not available. Councilman McDonald
asked staff to explain the down side of not approving this request.
THIRD QUARTER REVENUE ACTIVITY.
After reviewing the year to date revenue and expenditure numbers, Greg Sticha predicted a close
to balanced budget.
Investment Portfolio:
Greg Sticha explained the analysis done by the City’s brokers showed no
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significant change between the 2 and 3 quarter with a 1.8% earnings in investments. Mayor
Furlong asked for clarification on interest investments. Greg Sticha stated the City will continue
to keep a diversified portfolio, noting that Wells Fargo believes the City is positioned well for
the future.
UTILITY FUND BUDGET.
Paul Oehme and Kevin Crooks presented the 2011 budget numbers for water operations. Under
services provided and outcomes, the proposed increase in 2011 is due to new radio equipment
needed to read utility meters. Greg Sticha noted the water operations fund typically finishes on
or below budget. Paul Oehme reviewed the Sewer Operation fund, services provided and
outcomes explaining the expected increase in 2011 budget numbers. Mayor Furlong asked staff
to explain costs associated with Inflow and Infiltration improvements. Paul Oehme reviewed the
services provided and outcomes for the surface water fund noting he was expecting a decrease in
the 2011 budget from 2010 numbers.
The work session was recessed at 7:00 p.m. It was reconvened at 8:00 p.m.
City Council Work Session - October 25, 2010
2011-2015 CAPITAL IMPROVEMENT PROGRAM.
Greg Sticha discussed the 2011-2015 capital improvement program asking council members to
ask any questions prior to it’s adoption in December. Under the capital replacement fund
review, Mayor Furlong asked about place holder amounts for various funds like the audio/visual
equipment upgrades and equipment for the fire station, asking that those be reviewed annually to
look at actual numbers. In discussing construction of a new satellite fire station, Chief
Smallback explained the justification that was used in 2008 when this item was first discussed
but since growth has slowed, he would agree to push it out to 2014-15. Mayor Furlong asked for
an annual review of response times and development in this area. Councilwoman Ernst
supported pushing it out to 2014 or 2015 with an annual review. Mayor Furlong suggested
moving it to 2013 for planning purposes. Chief Smallback noted that as a part of that review
they would examine the impact of timing on construction costs. Mayor Furlong asked for
clarification on costs for public works and park maintenance equipment (replacement versus
new). Todd Gerhardt suggested putting an asterisk by new items. Councilwoman Tjornhom
asked for clarification of the City’s equipment purchase policies.
Other Capital Improvements:
Paul Oehme explained the specifics and Greg Sticha
highlighted the funding sources for street, trails and park projects planned for 2011 and other
major capital improvement projects for 2012 and beyond.
Satellite fire station:
Councilman McDonald asked about funding for the new fire station if the
old public works building does not sell. Todd Gerhardt discussed the possible contingency
funding sources that are available
Lyman Boulevard upgrades:
Mayor Furlong asked about timing for construction and funding
options
Highway 5 improvements from 41 to Victoria:
Mayor Furlong asked about plans to keep
traffic flowing during construction to minimize impact on local businesses.
2010 MUSA Lift Station moved to 2013:
Paul Oehme explained the details of this project.
High Zone elevated storage water tank slated for 2012:
Paul Oehme explained the details of
this project.
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Greg Sticha explained that this document will be on the December 13 agenda for approval,
noting if there is something the council wants to discuss prior to that, it can be brought back at
the second meeting in November.
Mayor Furlong asked for specifics on various projects in the capital improvement program
related to the Murray Hill water tower, park and recreation projects, city hall landscaping, tree
replacement program and a concern with having place holder amounts for non-specific projects.
Todd Gerhardt suggested looking at these items under next year’s strategic planning process.
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City Council Work Session - October 25, 2010
EXPLORE OPPORTUNITIES FOR FURTHER PARTNERSHIPS.
Todd Gerhardt provided highlights of the City’s current partnerships. Mayor Furlong
commented on the cooperation that is already occurring and asked that staff continue to look for
opportunities in the future. Councilman McDonald asked about the success of replacing the cast
iron piping in the city.
Mayor Furlong adjourned the work session at 9:30 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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