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WS 2012 12 10 CHANHASSEN CITY COUNCIL WORK SESSION DECEMBER 10, 2012 City Council held an executive session from 4:15 p.m. to 5:30 to discuss the City Manager's Performance Evaluation. Mayor Furlong called the work session to order at 5:40 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 REVIEW TH 101 /MINNESOTA RIVER CROSSING CONCEPT. Todd Gerhardt provided background information before asking Paul Oehme, City Engineer /Public Works Director, to provide updates on the road design and timeline for each associated project. Councilman Laufenburger asked about environmental impact on wetlands when the river is not backing up. Paul Oehme reviewed cost avoidance and performance improvement percentages associated with TH 101 Recommendation Summary and associated costs for the Floodplain Bridge. Mayor Furlong asked for clarification of construction cost savings that had been presented. Paul Oehme reviewed three different ' alignment options for CSAH 61 noting the preferred option would be installing roundabouts. He reviewed the CSAH 61 recommendation summary for cost avoidance and performance improvement. Mayor Furlong asked for clarification of the trail alignment, connection with the regional trail, and design aspect in roundabouts to direct traffic to certain routes. Paul Oehme reviewed the tentative schedule for design and construction of 3.5 miles of Hennepin County CSAH 61 east to Charlson Road. Mayor Furlong asked if possible flooding had been taken into consideration with the tentative schedule. Councilman McDonald expressed support for the trail underpass under CSAH 61. Paul Oehme reviewed funding options from various agencies associated with this project. Councilwoman Ernst asked for clarification of the MSA dollars advancement. There was consensus from council members in what is being proposed. FINAL DISCUSSION OF THE PROPOSED 2013 BUDGTET, CAPITAL IMPROVEMENT PROGRAM AND UTILITY RATE STUDY. After reviewing building permit history and impact on budget, staff recommended setting $900,000 for the building permit revenue number. Councilman McDonald asked about the effect on the 2013 budget and asked to have a discussion about creating a fund to reduce residents share of street projects. Mayor Furlong suggested talking about this item at their strategic planning meeting early next year. Greg Sticha provided highlights of the power point presentation being presented at the council meeting. Councilman Laufenburger asked about consequences of putting the levy at less than new growth. Mayor Furlong discussed the fact that the city plans for a balanced budget versus a surplus budget. Councilman McDonald stated the need to emphasize that the city portion of the tax bill will be lowered than the Truth in Taxation statement due to the change in the revenue number. Greg Sticha continued with review of actual property tax statement percentages for different components i.e. county, school, etc., Carver County tax rates comparisons, Chanhassen tax rate history going back to 2003, and staffs recommendations. Councilwoman Ernst had a question about the fees in the ordinances, the need to change the ordinance, and what would happen if the council doesn't approve the recommendation for an increase in utility rates. Greg Sticha discussed options including bonding versus using cash from raising City Council Work Session — December 10, 2012 rates to cover CIP costs i.e. new well construction. Councilman Laufenburger thanked Greg Sticha for responding to all his questions over the past few weeks. Mayor Furlong adjourned the work session meeting at 6:50 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim 2