WS 2004 10 11
CHANHASSEN CITY COUNCIL
WORK SESSION
OCTOBER 11, 2004
Mayor Furlong called the work session to order at 5:40 p.m.
COUNCIL MEMBERS PRESENT: Mayor Furlong, Councilman Ayotte, Councilman
Lundquist and Councilman Labatt
COUNCIL MEMBERS ABSENT: Councilman Peterson
STAFF PRESENT: Todd Gerhardt, Justin Miller, Kate Aanenson, Todd Hoffman, Paul
Oehme, Lori Haak, Steve Torell and Roger Knutson
2005 BUDGET: COMMUNITY DEVELOPMENT DEPARTMENT.
Kate Aanenson gave a power point presentation outlining the Community Development
Department's proposed budget for 2005. Mayor Furlong asked how projected revenues
compared to estimated revenues for 2004. Steve Torell provided an update on building
permits and projects which are either in progress or projected to come in before the end
of the year. Mayor Furlong asked about projects proposed for 2005. Steve Torell
reviewed personnel in the inspections department. Councilman Ayotte asked if changing
codes requires more personnel. Mayor Furlong asked about the 24 hour response time
for building permits and if response time is documented and tracked in any way. He also
asked for an update on the rental unit licensing program. Lori Haak provided an update
on current and proposed Surface Water Management Plan projects i.e. Lake Susan, Lake
Riley, and Rice Marsh Lake improvements. Councilman Labatt asked staff to investigate
involving Eden Prairie financially with the proposed Lake Riley quantity study and
culvert (outlet) improvements. Councilman Ayotte asked to see at future work sessions
information regarding SWMP's growth, balance between money spent on studies versus
actual projects, and the need to fix liability issues in the future with collaborative projects
so that the city doesn't hold all the liability. Kate Aanenson provided reasoning for
staff s request for an additional position for a water resource, environmental tech
position. Mayor Furlong asked staff to clarify why there has been so much turnover in
the Planner I position. Councilman Labatt asked what can be done to stop that turnover.
Mayor Furlong recapped the proposals of the Community Development Department and
asked to see an outline of the proposed increases from 2004 to 2005.
UPDATE ON SURFACE WATER MANAGEMENT PLAN (SWMP) CONTRACT.
Todd Gerhardt reviewed the memo from Lori Haak dated October 4,2004 and noted
there was an oversight not including information on the quality assurance task force.
Lori Haak explained the proposed make-up of the task force and what their role would
be. Councilman Ayotte questioned if there was a project management plan in place and
requested that updates be provided to City Council. Councilman Lundquist talked about
the discretionary spending information and requested information to justify staff s request
City Council Work Session - October 11, 2004
for 50 percent more than the required work. What are taxpayers getting for spending
more money? He would like to see a more quantitative response. Mayor Furlong
discussed the financial benefits and intangible evidence. Staff stated one of the tangible
benefits would be as-built's that would be created. Councilman Ayotte and Mayor
Furlong expressed concern that having as-builts will create more work for staff and an
expectation of increased services. Councilman Lundquist stated that the progress
contract had not been addressed and asked for clarification on the $300,000 in the CIP.
What's been spent to date and what is proposed for 2005.
WATER TREATMENT UPDATE.
Todd Gerhardt reviewed the interview process staff undertook with consultants for this
project. Councilman Labatt asked Paul Oehme to clarify the results from those
interviews. Councilman Lundquist asked staff to explain the $103,000 in SEH's
proposal. There was confusion over the scope of services bid and the contract bid by
SEH in relation to the other firms.
The work session was recessed at 7:00 p.m. for the regular City Council meeting.
The work session reconvened at 10:00 p.m. to continue discussion on the Water
Treatment update.
Paul Oehme clarified the $103,000 in the SEH bid, stating that amount would be related
to future plans and construction of Wells 10 and 11. Councilman Lundquist asked for
further clarification on the numbers submitted by SEH because they did not bid "apples
to apples" with the other firms, so it's hard to make comparisons. Mayor Furlong asked
if the number of$103,000 was a legitimate number for Wells 10 and 11. Councilman
Lundquist discussed that if you take the $103,000 number out of SEH's bid, then they're
the high bidder and that that number needed to be compared with the other bidders. He
stated he liked the process with the interviews and ranking but had concerns with SEH's
bid. Todd Gerhardt stated he had real concerns with the other four firms which submitted
bids and would not recommend approval of any of those firms to the City Council.
Councilman Lundquist reiterated that if SEH is the best firm, then staff needs to justify
the additional bid cost. Mayor Furlong stated his concern with SEH tying future work to
this bid and asked staff about references from other cities who have worked with SEH.
Paul Oehme reviewed his findings on references from other cities on SEH and the other
firms who submitted bids. Councilman Lundquist stated his message to SEH is that he is
not impressed with their way of bidding, i.e. not bidding what was requested in the RFP.
Paul Oehme clarified that SEH did bid what was requested, and during the interview
process, that's when the $103,000 item was discussed. Councilman Labatt asked that
staff and SEH justify their high bid and provide reasons why the City Council should
choose them over the other bidders. Councilman Lundquist stated to be fair and
equitable, the items should be rebid by everyone. Councilman Labatt asked for
clarification that the city does not legally have to accept the low bid on this project.
Roger Knutson concurred. Councilman Lundquist reiterated that the city needed to re-
negotiate with all the bidders, not just SEH. Councilmen Ayotte and Labatt concurred.
Mayor Furlong expressed there was not a lot of comfort in the current bid process but
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City Council Work Session - October 11, 2004
concurred that there needed to be further negotiations. Paul Oehme stated the item could
be brought back in a couple weeks, at the next work session.
Mayor Furlong adjourned the work session meeting at 10:30 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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