WS 2011 11 14
CHANHASSEN CITY COUNCIL
WORK SESSION
NOVEMBER 14, 2011
Mayor Furlong called the work session meeting to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman McDonald, Councilwoman
Tjornhom, Councilwoman Ernst, and Councilman Laufenburger
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Paul Oehme, Kate Aanenson, Todd Hoffman,
and Greg Sticha
PUBLIC PRESENT:
Vernelle Clayton, Buy Chanhassen 422 Santa Fe Circle
Bill Munig 6850 Stratford Boulevard, Excelsior
Rick Dorsey 14215 Green View Court, Eden Prairie
Laurie Susla 7008 Dakota
Jeff Fox 5270 Howards Points Road, Excelsior
Scott Hippen 7017 Cheyenne Trail
TH 101 (LYMAN BLVD TO PIONEER TRAIL) ENVIRONMENT ASSESSMENT UPDATE.
Paul Oehme introduced Tim Quinn with MnDOT, Bill Weckman, Assistant Carver County Engineer, and
Jon Horn with Kimley-Horn and Associates who are all working together on this project. Jon Horn
reviewed background information, project need, proposed improvements, and the proposed schedule. In
reviewing the EA/EAW process, he reviewed comments from the public hearing and written comments
pertaining to tree removal, native prairie and wildlife habitat impact, noise, traffic, right-of-way
acquisition, and the amount of pavement involved with constructing 4 lane versus a 2 lane roadway.
Council and staff discussed the extent of the construction limits and the priority to save trees wherever
possible. Councilman McDonald asked about plans for noise mitigation i.e. sound walls and/or berms,
and the impact to driveway accesses onto a 4 lane road. Councilwoman Tjornhom asked about the speed
design of a 40 miles per hour roadway. Jon Horn discussed the budget and financing breakdown between
federal, state, and local government. Councilman Laufenburger asked for clarification on what entity will
make the final decision on a 2 lane versus 4 lane roadway. Jon Horn explained that even though it’s been
a partnership between MnDOT, Carver County and the City, it is the City with the final say. Mayor
Furlong reiterated that at the next neighborhood meeting residents understand how all their concerns were
addressed.
2012 BUDGET DISCUSSION:
DISCUSS SICK/VACATION BENEFITS.
Laurie Hokkanen explained that there was no change proposed for sick benefits but staff was directed to
do further research on reducing the vacation accrual rate to 2 times or 1 1/2 times the employee’s earning
rate and propose an implementation plan for a reduction in balances. Staff is recommending option 1
which would give employees a number of years equal to their accrual rate to reduce their balances.
Councilman Laufenburger asked what will happen with employees leaving prior to the transition period
be completed. Mayor Furlong asked how the reduction in vacation time will be monitored and
implemented. Councilman McDonald asked about the impact of employees taking additional vacation
time to reduce their balances. In discussing using 1 1/2 or 2 times accrual rate, Councilman Laufenburger
City Council Work Session – November 14, 2011
stated he was uncomfortable with the 3 to 5 years maximum in Option 2 and the maximum amount of
vacation time employees can earn of 27 days, (5 weeks plus 2 days). He would prefer seeing a maximum
of 22 days (4 weeks plus 2 days) and asked about introducing a 10 to 15 year tier. Councilwoman Ernst
stated her goal was to eliminate the liability and would propose not to carry over more than 2 weeks with
a transition period of 5 years. In asking to revisit the issue of sick time, she asked that paid time off be
10 days with no carry over. Councilwoman Tjornhom stated she was in favor of a 2 times accrual rate
with 3 to 5 year transition period and initiating the new policy with new hires. Councilman McDonald
stated he was comfortable with the 2 times accrual rate and would support eliminating the 27 days
maximum and capping everything at 22 days immediately into the future. He would support a 2 to 3 year
transition period but would like to know the impact on departments. Mayor Furlong stated he preferred
the 1 1/2 time accrual rate but could support the 2 times. He asked for additional information on the
effect of option 2 with a 3 year transition period and additional information on the maximum accrual rate.
Council discussed implementing the new policy by January 1, 2012.
The work session was recessed at 7:00 p.m. It was reconvened at 8:40 p.m.
DISCUSS CONSIDERING NO FAULT INSURANCE.
Laurie Hokkanen presented information on the cost for premiums, deductible per incident, and the
opportunity cost offered by the League of Minnesota Cities. She reviewed what is covered by no fault
insurance, damaged caused by watermain or sewer back-up that’s not otherwise covered by the city’s
general liability insurance, the fact that there are several exclusions, and the maximum amounts covered.
Councilman Laufenburger asked for clarification of the League of Minnesota Cities’ definition of what’s
covered and what’s considered under the city’s sewer system and how they determine the number of
structures or connections per incident. Laurie Hokkanen explained how no fault insurance would
interchange with homeowners insurance and showed an example of a sewer back up scenario.
Councilman Laufenburger asked about the number of claims that can be submitted per year, requirements
or guidelines of underwriter and the legality of using public funds for private use. Councilman McDonald
questioned the amount of premiums and deductible versus the City’s current policy. Laurie Hokkanen
stated staff would have quotes for no fault insurance by mid December. Councilman Laufenburger stated
he was in support of continuing to look at fault insurance as being prudent when comparing quotes.
Councilman McDonald stated he was not in favor of shifting everything over to the League of Minnesota
Cities at this point but would favor looking at creating a catastrophic fund. Todd Gerhardt explained that
staff can prepare comparison of last year’s claims after receiving the quotes. Mayor Furlong explained
his belief that it is not the City’s role to provide for private needs. Councilwoman Tjornhom agreed that
there should not be a government role in private property needs. Councilwoman Ernst stated she would
like to see the quote comparisons but agreed it was a philosophical decision on the City’s role in
supplementing private property. Mayor Furlong asked staff to educate the public on what is covered
under the City’s insurance. Councilwoman Ernst asked about providing information on the City’s
website. Todd Gerhardt stated staff will prepare a procedure document outlining the City’s role in future
catastrophic events to ensure staff and council are on the same page.
LEGAL SERVICES COMPARISON.
Laurie Hokkanen reviewed the chart showing comparisons with
key financial strategy cities. After discussion council members were comfortable with staying with
Campbell-Knutson, noting it was a good value.
2012 BUDGET.
Greg Sticha provided an update on current budget information, noting no changes to expenses since the
preliminary levy was set. Councilman Laufenburger asked for snow plow safety criteria for upcoming
months. Councilwoman Ernst asked how the new information impacts the preliminary levy numbers and
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City Council Work Session – November 14, 2011
asked to see a scenario without a 1.5% wage increase and no increase in health insurance (employees
would absorb increase). Greg Sticha explained what will be presented at the Truth in Taxation hearing on
th
Dec 5. Mayor Furlong asked to see a budget that keeps general fund expenditures flat from 2011 to
2012 with the caveat of keeping service levels the same. He asked staff to look at the future long term fire
service needs and the impact of reducing the $90,000 amount for a potential future fire station and
perhaps using those dollars for more immediate CIP needs.
DISCUSS HOOK-UP FEE FOR IRRIGATION ACCOUNTS.
In reviewing this item, staff is
recommending no change to the hook-up charge for irrigation accounts. Council concurred.
DISCUSS KEY FINANCIAL STRATEGY: ENHANCE LOCAL TAX BASE.
Todd Gerhardt reviewed what staff has done over the past year to enhance the local tax base. Kate
Aanenson discussed and showed examples of how staff is using the City’s website to show available land
inventory, discussed meetings staff has held with local businesses, new businesses, and code
amendments, noting that subdivisions are continuing to be worked on by city staff.
Mayor Furlong adjourned the work session at 9:55 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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