WS 2004 01 12CHANHASSEN CITY COUNCIL
WORK SESSION
JANUARY 12, 2004
Mayor Furlong called the work session meeting to order at 5:45 p.m.
COUNCILMEMBERS PRESENT: Mayor Furlong, Councilman Labatt, Councilman
Ayotte, Councilman Lundquist and Councilman Peterson
STAFF PRESENT: Todd Gerhardt, Justin Miller, Kate Aanenson, Matt Saam, Kelley
Janes, Todd Hoffman and Bruce DeJong
UPDATE ON MUNICIPAL CONSENT PROCESS FOR NEW TH 212.
Jon Horn with Kimley-Horn discussed the list of concerns and issues generated from
review of the TH 212 municipal consent plan layout from MnDot. Councilman
Lundquist asked for clarification on the biggest risk to the city during construction. Kate
Aanenson provided updates on access points and the schedule of upcoming neighborhood
meetings planned prior to the formal public hearing. Jon Horn stated this project will be
similar to construction of TH 610. Todd Gerhardt stated the City needs to be prepared
for the growth expected with the upgrades of Interstate 494 and TH 212. Councilman
Labatt asked for an update on the easement acquisitions and how the current changes
compared to the old proposal. Jon Horn then passed out a handout regarding the cost
summary and reviewed the numbers with council. Councilman Labatt asked for a
breakdown of the amount of money expected to be recovered through assessments.
UTILITY RATE FEES.
Bruce DeJong passed out a copy of the power point presentation by Mark Ruff and
Jessica Cook from Ehlers and Associates regarding the water and sewer rate study
update. Councilman Labatt asked for clarification on why the city sewer hook-up fees
stayed the same while everything else was increased and asked if the school district
purchases property in the 2005 MUSA area and the city incurs shortfalls in revenues,
how will the city offset costs. Mayor Furlong asked about the cost savings with
purchasing property now versus later. Councilman Ayotte asked if the city could set up
penalties for over usage of water. Councilman Labatt suggested the city increase hook-
up fees to take advantage of the building boom expected in the coming years. Mark Ruff
explained the legalities involved with setting fees.
The work session was recessed at 7:00 p.m. for the regular City Council meeting.
The work session reconvened at 8:55 p.m.
CONTINUATION OF UTILITY RATE FEES.
Todd Gerhardt explained what was being recommended by SEH regarding the water
treatment plants and stated staff needed to create a comprehensive plan but needed the
City Council Work Session - January 12, 2004
rate fee increases now. Mayor Furlong suggested looking for property now because
prices will never be lower and asked staff to provide a layout plan with ballpark cost
figures. Councilman Ayotte asked for clarification on the centralized versus
decentralized options. Bruce DeJong stated costs have been a moving target but the city
needs to establish short term goals for the next 3-4 years. Councilman Ayotte suggested
that there are agencies to assist in establishing fees and metering with the Metropolitan
Council. Mayor Furlong asked if the council was comfortable with the analysis provided
to adopt the 2004 rates as proposed. He suggested building the wells now and look to
find a site for water treatment in the future. Todd Gerhardt stated staff will review the
hook-up fees to address Councilman Labatt's concern with the possibility of oversizing
costs in the future. Elliott Knetsch provided a legal opinion on how utility rates are
determined and what numbers are needed for justification.
PURCHASING POLICY UPDATE.
Councilman Peterson commended staff on a very thorough staff report on this item.
Councilman Lundquist gave staff credit for a job well done and for managing the policy
better than he thought they would be able to. Todd Gerhardt stated credit should go to
Bruce DeJong and his staff for all their hard work.
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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