WS 2012 06 25
CHANHASSEN CITY COUNCIL
WORK SESSION
JUNE 25, 2012
Mayor Furlong called the work session meeting to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman McDonald, Councilwoman Ernst,
and Councilman Laufenburger
COUNCIL MEMBERS ABSENT:
Councilwoman Tjornhom,
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Kate Aanenson, Todd Hoffman, Richard Rice,
Greg Sticha, Danielle Washburn and Courtney Juelich
REVIEW 2011 AUDIT, ANDY HERING, TAUTGES REDPATH.
Greg Sticha introduced Andy Hering with Tautges Redpath who reviewed the results of the 2011 audit.
Councilwoman Ernst asked if the same items are audited from year to year. Andy Hering stated they
were. The audit of the Financial Statements rendered a clean opinion. In the Report on Internal Controls,
the audit noted an item relating to a prior period adjustment and financial statement corrections. There
were no findings of noncompliance in the report on compliance with Minnesota Legal Compliance Audit
Guide which has been the same for the last 4 years. The communication to those charged with
governance uncovered two matters not included in other reports relating to the 2009A Debt Service Fund
and surface water charges. Mayor Furlong asked about available funds to cover the 2009A Debt Service
Fund. Councilman Laufenburger asked for clarification on the surface water management issue. Andy
Hering reviewed highlights from the financial summary, focusing on the water utility fund, sewer utility
fund, and surface water management fund. Mayor Furlong asked for clarification of what caused the
reduction in operating revenue and how the City’s actual useful life span for it’s infrastructure compares
with other cities in the state. Andy Hering noted that overall it was a great audit resulting in no concerns.
Councilwoman Ernst asked what can be done in the future to not raise rates in the sewer utility fund.
Greg Sticha thanked Danielle Washburn for her tremendous effort in working with the audit firm which
Todd Gerhardt pointed out has contributed to the low rate charged by Tautges Redpath.
DISCUSS LONG RANGE FIRE STUDY.
Todd Gerhardt discussed the comprehensive process involved with the long range fire study and the
schedule to select a consultant which was developed by Fire Chief John Wolff, Finance Director Greg
Sticha and Assistant City Manager Laurie Hokkanen. Laurie Hokkanen explained the process of setting
goals to review staffing, pay and benefits, and equipment and capital needs in the future. Councilwoman
Ernst asked if anything could be done with possible partnerships with other cities. Todd Gerhardt
explained that he’s met with communities such as Eden Prairie, South Lake, Chaska, and Victoria. Chief
John Wolff explained how shared services are currently provided with other communities. Councilman
Laufenburger asked about Chief Wolff’s familiarity with the vendors on the list, if there were any statutes
required with the RFP’s, who would be involved in the interview process with vendors, and funds
available for the consultant. Mayor Furlong asked if a long range fire study has been done in the past and
asked staff to target completion of this process by the first quarter of 2013.
DISCUSS FIRE DEPARTMENT TURNOUT GEAR.
Lt. Matt Warden, who is currently in charge of purchasing the new PPE/Turnout Gear, was available to
answer questions. Greg Sticha discussed the amount budgeted for firefighter personal protective
City Council Work Session – June 25, 2012
equipment (PPE) and Chief Wolff’s plan to turn gear over on a 5 year cycle to stay in compliance with
NFPA standards. Chief Wolff reviewed the Joint Purchasing Agency (JPA) mission, membership,
benefits, timeline and programs, current practice versus past practices, and that the current PPE inventory
which shows that 42% of gear is out of compliance (in use beyond 5 years). Mayor Furlong and
Councilman McDonald asked for clarification of replacing PPE’s that are 1 to 2 years old. Chief John
Wolff explained the desire to get all PPE’s on the same 5 year cycle and the use of back up gear.
Councilwoman Ernst asked about the possibility of having the vendor keep track of the age of the PPE’s.
Mayor Furlong asked about the cost and time frame for doing the inspection program. Todd Gerhardt
stated staff will do an inventory and inspection on the current PPE’s. Councilman McDonald asked to see
a cost comparison of doing the 5 year cycle once or on an annual basis.
DISCUSS CITY COUNCIL EMAIL ADDRESSES.
Richard Rice discussed his recommendation that City Council members discontinue using personal email
accounts and utilize city accounts only.
The work session was recessed at 7:00 p.m. It was reconvened at 8:00 p.m.
DISCUSS 2013 BUDGET EXPECTATIONS.
Greg Sticha reviewed cost of living and new construction numbers which will affect the 2013 budget and
the budget calendar schedule. Mayor Furlong asked staff to coordinate the budget schedule to ensure no
projects will be delayed. Greg Sticha introduced Courtney Juelich who is working on her senior project
to improve GFOA documentation. Todd Gerhardt asked about the biggest change needed to meet the
GFOA Excellence Award. Greg Sticha explained that currently the document is more for internal use and
that the updates will be geared towards making the document more public friendly on the City’s website.
Mayor Furlong asked for clarification that the public safety employee count includes contracted
employees i.e. full time sheriff department employees. Councilman Laufenburger asked Ms. Juelich what
she used as a model. She explained that she used the cities of Eden Prairie and Hopkins. Greg Sticha
explained that Ms. Juelich will be at future budget meetings observing the process. Councilwoman Ernst
asked for clarification of the general fund surplus transfer to the revolving assessment fund. Councilman
Laufenburger asked about the reason for the surplus which Greg Sticha explained was an increase in
building permit revenues over what was projected and a reduction in expenditures. Council members had
no concerns with the schedule. Councilwoman Ernst stated she likes having three scenarios with options
to reduce cost. Greg Sticha explained two items that will need to be addressed during budget discussions
are that tax abatements numbers are significantly higher than anticipated, and additional election costs.
Mayor Furlong adjourned the work session at 8:30 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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