WS 2013 10 14
CHANHASSEN CITY COUNCIL
WORK SESSION
OCTOBER 14, 2013
Mayor Furlong called the work session 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,
Greg Sticha, Lt. Jeff Enevold and City Attorney Andrea Poehler
PUBLIC PRESENT:
Craig Mertz 7955 Stone Creek Drive, #10
Chris Bagdons 2461 Highway 7
Mike L. 7818 Market Boulevard
Steve Tessmann 7818 Market Boulevard
DISCUSS MASSAGE BUSINESS LICENSING.
Todd Gerhardt provided background information before Laurie Hokkanen discussed meetings that were
held with current business owners in town who expressed concerns with the license amount, who needs to
be licensed, education and training, and presented details included in a draft ordinance. Councilwoman
Ernst asked if existing businesses would have to go through this process. Councilwoman Tjornhom asked
Lt. Jeff Enevold to explain how background checks would work. Councilman McDonald stated his
concerns with the proposed ordinance being too onerous in some points and too broad in others and
would like more work done in tightening the wording. Craig Mertz pointed out that the proposed
ordinance would put his client out of business. Councilman Laufenburger stated his support for licensing
to know which businesses are in town, asked how home occupations can be regulated, how the proposed
fee compared to surrounding communities, and the source of the ordinance boiler plate being used.
Councilman McDonald asked for further clarification on background checks. Mayor Furlong expressed
concern with using customer complaints as grounds for license revocation and discussed how staff and
council should figure out and define what the goal is and use the minimum ordinance in order to reach
that goal. Todd Gerhardt explained staff will bring back another draft ordinance after speaking with
additional businesses in town. Councilman Laufenburger asked for additional feedback from other
communities on how their licensing programs are working. Councilwoman Ernst asked if the goal is to
eliminate illegal activities.
DISCUSS UTILITY RATE STUDY, EHLERS AND ASSOCIATES.
Greg Sticha reviewed an overview of the utility rate analysis before introducing Jessica Cook with Ehlers
and Associates who discussed highlights from the power point presentation showing the proposed 2014
utility rate increases for water, sanitary sewer and storm sewer, and assumptions in growth that were used.
Mayor Furlong asked about the effect on the analysis if the apartment development proposed in 2014
doesn’t occur. Jessica Cook continued reviewing water capital improvement projects proposed through
2023, the proposed 2014 water rate increases and a proposed change in tier 5 water usage being lowered
to 75,000 gallons. Councilman McDonald asked if the tier water rates have impacted conservation of
usage. Councilman Laufenburger discussed the effect of increasing rates impacting conservation. Mayor
Furlong expressed concern with making tier changes so quickly and suggested leaving it as is for a while
to get a better data base. Councilman McDonald suggested changing the tier structure to look at peak
City Council Work Session – October 14, 2013
cycle usage. Councilwoman Ernst asked about enforcement of the odd/even water usage. Jessica Cook
continued discussing water connection fee changes, proposed increases through 2017, Sanitary Sewer CIP
projects through 2020, proposed quarterly fee increases through 2017, impact on city storm water fund,
and the rate comparisons for water, sewer and storm water charges with key financial strategy cities.
Mayor Furlong asked about average usage numbers for summer rate comparisons. Councilman
Laufenburger asked if it is reasonable for Chanhassen residents to expect a 3% increase into the future.
Jessica Cook explained that there are two scenarios cities use: small and steady increases versus keeping
rates flat for a few years and then double digit increases to catch up.
Mayor Furlong recessed the work session at 6:55 p.m. It was reconvened at 8:20 p.m.
RD
REVIEW 2014-2018 CAPITAL IMPROVEMENT PROGRAM (CIP) AND 3 QUARTER
REVENUE ACTIVITY.
rd
Greg Sticha provided an update on 3 Quarter financials before reviewing details of the 2014-2018
Capital Replacement Equipment Fund. Mayor Furlong asked for clarification of what’s included with
security improvements to City Hall and the payback associated with deicing equipment. Councilwoman
Ernst asked about the possibility of refurbishing plow trucks or buying refurbished plow trucks rather
than buying new for $212,000. Greg Sticha continued with highlights of major street improvement
projects scheduled for 2014 and 2015. Councilman Laufenburger asked about the likelihood that other
agency contributions will happen and design and construction plans associated with the lower Y
improvements. Greg Sticha continued listing capital items greater than $250,000 in 2014 that were not
discussed earlier in the memo and provided an update on 2013 CIP projects that will not be completed by
December 31, 2013. Mayor Furlong asked for clarification of the 2014-2019 MSA construction fund and
if any of those projects are in the revolving assessment fund. Councilman Laufenburger asked for
clarification of the docks at the Lake Ann and Lake Susan boat ramps. Mayor Furlong and Councilman
Laufenburger asked for more information regarding the City Center Park band shell and Lake Susan
ballfield lighting. Councilman McDonald asked for an analysis on natural turf versus artificial turf. Todd
Gerhardt discussed the PKT-120 line item for neighborhood park shelters.
Mayor Furlong adjourned the work session meeting at 9:25 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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