WS 2012 02 13
CHANHASSEN CITY COUNCIL
WORK SESSION
FEBRUARY 13, 2012
Mayor Furlong called the work session to order at 5:35 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,
Greg Sticha, and Kevin Crooks
UPDATE ON SOUTHWEST TRANSIT, LEN SIMICH, CEO.
Todd Gerhardt introduced Len Simich from Southwest Transit who reviewed the following 2011
highlights: statistics for road call per mile, on-time performance, missed trips, chargeable accidents and
customer satisfaction. He discussed cost savings and budget balancing actions such as contract and
program reductions, park out, service reductions, reduced overall cost per passenger, advertising and lease
revenue program. Other 2011 accomplishments include the completion of the Chanhassen Station, a
400+ stall ramp and station, technology improvements, service development and community outreach
programs. 2011 awards for Southwest Transit include APTA National Award for Bus Safety, GFOA
Award for Excellence in Financial Reporting, MN Public Transit Management Innovation Award, MN
Concrete Council Award for the Chanhassen Station, and ISD 287 Outstanding Employer Award.
Initiatives for 2012 include the design, bid and construction of the new East Creek ramp station in
Chaska, remodeling of the Eden Prairie garage, the purchase of 6 replacement coach vehicles, pursuing
multiple revenue generation activities, plan and design new service initiatives, complete strategic plan
update, complete comprehensive operations audit, negotiate new driver contract, upgrade IT
infrastructure, and support legislative proposals related to transit governance. Councilwoman Ernst asked
about Southwest Transit’s vision for transporting Target employees who are being transferred from
downtown to the new facility off of Highway 610 and capacity at the Southwest Village Station. Mayor
Furlong asked about using the Chanhassen station in the reverse commute program. Councilman
Laufenburger asked what possible obstacles might be encountered in the next 2 to 6 years. Len Simich
explained how funding and Met Council control will be the biggest obstacles.
DISCUSS NATIONAL LEAGUE OF CITIES SERVICE LINE WARRANTY PROGRAM.
Paul Oehme introduced Oscar Arras with Utility Service Partners, Inc (USP) who gave a power point
presentation on the National League of Cities Service Line Warranty Program. He explained how the
program provides for repair and broke lines typically not covered by homeowners insurance, that there
were no restrictions on the number or repairs performed, low monthly cost with no deductible or service
fees and the benefits to the City of Chanhassen and it’s residents. He explained how this is a new
program to Minnesota and that the City of Buffalo is the only municipality currently using this service in
Minnesota. Councilwoman Ernst asked for clarification on how USP decides response time and if there’s
liability on the City’s part. Councilman McDonald asked if there’s ever confusion or crossing of lines on
the City’s responsibility and invoice options. Todd Gerhardt asked for clarification on how it’s
determined once the contractor’s on site who’s responsibility for repairs. Councilman Laufenburger
asked for clarification on how long USP has been in business, their association with National League of
Cities, how it is determined which local contractors will be used, benefits to the City and if insurance
companies offer this program today. He asked to see the terms and conditions that customers receive.
Todd Gerhardt asked about cities current using this program, their status as inner or outer ring suburbs,
developing suburbs, etc. Mayor Furlong asked staff how often incidents happen that this insurance would
City Council Work Session – February 13, 2012
be used, estimated costs to repair, if there is a minimum number of people needed to sign up, and how the
City is identified in USP’s mailings. Councilman Laufenburger asked Oscar Arras to explain the incident
that occurred in Buffalo which resulted in a complaint to the Attorney General’s Office. Councilwoman
Ernst asked for an example of how the city’s logo is incorporated in the direct mailings and the possibility
of doing a pilot program in one section of the city. Mayor Furlong asked if this is an insurance program
and any associated regulations. Todd Gerhardt asked about the company’s insurance rating and how the
City knows if USP is capitalized enough to handle this program.
The work session was recessed at 6:55 p.m. It was reconvened at 8:10 p.m.
CONTINUATION OF DISCUSSION OF NATIONAL LEAGUE OF CITIES SERVICE LINE
WARRANTY PROGRAM.
Paul Oehme explained why staff brought this program to the council’s attention noting the Minnesota
League of Cities does not endorse this program at this time. Councilman McDonald asked staff to
research USP’s financial background. Kevin Crooks explained that there are between 5 to 10 incidents
per year causing financial hardships to homeowners. Todd Gerhardt cautioned that the City deriving
revenue from this program would make the City a partner with USP. After staff and council members
discussed their concerns with the newness of this program in Minnesota and details of services provided,
they asked staff to research this item further.
DISCUSS WATER METER RADIO READ REPLACEMENTS.
Todd Gerhardt thanked Greg, Paul and Kevin for bringing this item forward to the city’s attention.
Paul Oehme reviewed the background of the radio read system which was installed in 2001, explaining
the radios had batteries with a 10 year life expectancy and those batteries are now beginning to fail.
Mayor Furlong asked if other cities were experiencing this same problem. Kevin Crooks explained how
Savage is about 2 years ahead of Chanhassen before presenting three options for the council to consider.
Paul Oehme reviewed a cost option comparison chart showing Option 1 as the cheapest, but that staff is
recommending Option 3 which provides for new technology. Councilwoman Ernst asked about labor
costs involved with these options. Mayor Furlong asked about the difference between the mobile system
and migrateable system. Council discussed replacing all the radios at one time versus replacing them as
the batteries fail and issues associated with having dual systems until all the radios are replaced. After
discussion staff was directed to do a cost analysis associated with options 1 and 3.
Councilman McDonald asked that discussion of the $625,000 refund from Mediacom be placed on a
future work session agenda.
Mayor Furlong adjourned the work session meeting at 9:30 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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