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CHANHASSEN CITY COUNCIL
WORK SESSION
JULY 14, 2014
Mayor Furlong called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman Laufenburger, Councilwoman Ernst,
Councilwoman Tjornhom, and Councilman McDonald
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Paul Oehme, Kate Aanenson, Greg Sticha, and
Jerry Ruegemer
UPDATE ON COUNTY ROAD 61 CORRIDOR STUDY.
Barry Warner and Joni Giese with SRF were present to help with the presentation. Barry Warner outlined
the purpose and intent of the project which started in late winter, Feb-March, 2014. He reviewed the
schedule for the planning and construction process. In reviewing the project area, he detailed proposed
improvements. Mayor Furlong asked for clarification on why Settlers West is included in the project
area. Kate Aanenson reviewed the current uses in the project area and Comprehensive Plan Land Uses.
Regarding the auto related uses, Councilman Laufenburger asked about ground contamination issues.
Paul Oehme reviewed the 2030 comprehensive sewer districts and sub-districts, waste water flow
conveyance recommendation, and water service development. Mayor Furlong asked about future water
treatment for this area and Councilman Laufenburger suggested studying this issue to discover cost
estimates would be beneficial. Barry Warner and Kate Aanenson reviewed city service considerations for
timing/phasing, land use/density, cost and financing, current land use guide, development area
constraints, and potential land uses when city services are provided. Todd Gerhardt discussed potential
utility assessment costs projected from 2014 through 2020, explaining that the soonest development could
occur in this area would be 2020 noting that Bluff Creek Golf Course and Highway 101 going up the
bluff would need to be constructed. Barry Warner reviewed variables that affect land use transitions and
options for potential land uses if city services are not provided. Kate Aanenson reviewed the city’s
vision by reviewing land use recommendations. Barry Warner reviewed the next steps for decision
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making after the open house is held on August 6. Councilman McDonald asked where commercial
neighborhood services would be located to service the proposed residential expansion. Councilman
Laufenburger asked for clarification of how sequencing for development would occur. Mayor Furlong
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stated he will be interested to hear feedback from the August 6 open house meeting.
DISCUSS CARVER COUNTY COMMUNITY DEVELOPMENT AGENCY ISSUANCE OF GO
DEBT FOR CENTENNIAL HILLS APARTMENTS.
Julie Frick from Carver County Community Development and Kathy Aho from Springsted were present.
Todd Gerhardt provided background information on the partnership with Carver County, development of
the Centennial Hills Apartments and maintenance upgrades needed for the property. Kathy Aho
discussed background on initial financing and funding options for refinancing of old bonds. She
explained that backing from the City will help them get the best possible interest rate. Steve Dunbar was
available for questions regarding construction plans. Mayor Furlong asked about the outstanding balance
on the current bonding and maintenance fund balance for Centennial Hills Apartments. Councilwoman
Ernst asked to see a breakdown of the projected plans for upgrades. Councilman Laufenburger asked
about the funding source to pay back the bond payments. Councilwoman Tjornhom asked about the rental
schedule. Mayor Furlong asked about enforcement of the terms of the agreement between the City and
CDA. Councilman Laufenburger asked Julie Frick to comment on the down side of this agreement to the
City Council Work Session – July 14, 2014
City. Greg Sticha stated he will email information to the council regarding questions raised at the work
session. Councilwoman Ernst asked if this would impact the City’s bond rating.
The work session was recessed at 7:00 p.m. It was reconvened at 7:45 p.m.
CONTINUE TO DISCUSS CARVER COUNTY COMMUNITY DEVELOPMENT AGENCY
ISSUANCE OF GO DEBT FOR CENTENNIAL HILLS APARTMENTS.
Councilwoman Ernst emphasized that her question was how this would impact the City’s bond rating.
Todd Gerhardt explained he didn’t believe it would and noted there would be a review of the City’s bond
rating in early August. Councilman Laufenburger expressed concern with the agency’s lack of planning
for future major improvement projects.
DISCUSS STUDYING HOUSING IMPROVEMENT AREA DISTRICTS.
Todd Gerhardt stated this item was addressing the creation of Housing Improvement Areas (HIA) in the
city to assist homeowner associations to pay for major improvement projects in common areas. Kate
Aanenson reviewed the analysis paper showing the list of homeowners association numbers.
Councilwoman Ernst stated she was struggling with the precedence of getting involved with homeowners
associations. Councilman McDonald explained that he was not in favor of getting involved with loaning
money to property owners and expressed his concern with the work involved with overseeing the
investment. Councilwoman Tjornhom commented that the City doesn’t do this for private property
owners so why should they do it for homeowners associations. She also expressed concern with loaning
money to people who have shown they haven’t managed their money well in the past. Staff explained
that certain homeowners association are reaching out to the City to help with their association in fixing
driveways, decks and roofing and used the example of Village on the Ponds as an association who is
having trouble maintaining their private roads. Council members asked how the City will mitigate the risk
and how the city will manage the investment and from a policy standpoint does the City want to get
involved or let the market play out. After discussion the consensus of council members was letting the
market play out and not get involved with loaning money to private property owners.
UPDATE ON CHANHASSEN PIONEER CEMETERY PROJECT.
Kate Aanenson provided background on the surveying work, planning for the landscaping and
columbarium, and explained that a neighborhood meeting will be held in the future to show them the
proposed plans. Mayor Furlong asked about fencing of the property. Todd Gerhardt explained the fund
analysis was prepared to address developing a perpetual fund for the long term operation of the cemetery
and upgrades in the future. Councilwoman Ernst asked for clarification of the $400 plot cost that was
used in the analysis. Councilman Laufenburger asked for clarification on the length of the fund. Staff
explained they were looking for consensus on the plot and internment fees being recommended. Council
asked to see the plan regarding the location of the columbarium. Council asked for clarification of the
interment fee. Mayor Furlong explained that this is another enterprise fund which will be tracked
separately from the general fund. Council members discussed numbers for residential and non-residential
plot fees which will compete with market rates. Staff explained this item will come before the council for
formal action after the neighborhood meeting. Councilwoman Ernst stated she was adamant about setting
rates at $250 for residential and $650 for non-residential with an annual review. Council members
discussed setting rates that are comparable to surrounding communities and key financial strategies cities.
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City Council Work Session – July 14, 2014
DISCUSS PERA PHASED RETIREMENT PROGRAM.
Laurie Hokkanen reviewed this program which allows the City to enter into Phased Retirement
Agreements with employees who are over the age of 62. Mayor Furlong asked for clarification of how
the City would manage this program and the risk to the City. He noted he sees this as a useful tool
moving into the future. There was consensus among council members with seeing this program move
forward.
Mayor Furlong adjourned the work session at 9:35 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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