WS 2015 10 26
CHANHASSEN CITY COUNCIL
WORK SESSION
OCTOBER 26, 2015
Mayor Laufenburger called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Laufenburger, Councilman McDonald,
Councilwoman Tjornhom, Councilwoman Ryan, and Councilman Campion
STAFF PRESENT:
Todd Gerhardt, Chelsea Petersen, Paul Oehme, Todd Hoffman, Greg
Sticha, Bob Generous, Terry Jeffery and Chief Don Johnson
DISCUSSION OF UTILITY RATE STUDY, EHLERS AND ASSOCIATES.
Greg Sticha reviewed changes in the water, sanitary sewer and storm water rates before
introducing Jessica Cook from Ehlers & Associates who reviewed key findings for the 2016
rates. She discussed two options for water rates, proposed 2016 utility rate increases, and the
need for adequate revenue and cash balances in utility funds which is important to maintain the
City’s AAA bond rating and avoid sudden rate increases in the future. She reviewed key
assumptions used for the water fund, and future water treatment plant. Mayor Laufenburger
asked about funding options for the water treatment plant. Councilwoman Tjornhom discussed
having an issue with the proposed rate increases being based on water consumption numbers
which are going down. Councilman McDonald concurred that residents will have an issue with
increasing water rates even though they’re using less water. Mayor Laufenburger discussed that
even though rates are going up, because of consumption going down residents will not see an
increase in their overall bill. Councilwoman Tjornhom asked how dependent future water usage
is based on weather in determining future budgets. Councilman Campion asked about
clarification between fixed and variable costs. Councilman McDonald reiterated that it’s a bad
message to tell residents that their water rates are going up even though their water usage is
going down. Jessica Cook continued reviewing sewer and water hook-up fees, sanitary sewer
CIP, rates, and impacts to the sewer fund, storm water rates, and area charges. Mayor
Laufenburger asked for clarification on credit usage. Jessica Cook reviewed an example of an
utility bill for the average customer with water, sewer and storm water rate increases, and
comparisons to key financial strategy communities. Greg Sticha reviewed capital and operating
costs. Mayor Laufenburger asked for council feedback on developing a plan for building a new
water treatment plant in 2017. Consensus was to direct staff to begin planning for 2017 using the
proposed rates increases.
DISCUSS PROPOSED CODE AMENDMENTS, PLANNING DEPARTMENT.
Bob Generous reviewed highlights of proposed changes to planning code amendments regarding
fencing, liquor license fee increase, building regulations, and licensing alcoholic beverages.
Mayor Laufenburger asked how the City audits the 50/50 food and liquor requirement and asked
City Council Work Session – October 26, 2015
for council feedback regarding the 50/50 policy. Councilwoman Ryan asked if staff has had
discussion with Excelsior and their policy regarding breweries. Consensus was to eliminate the
50/50 policy altogether based on what other communities are doing and identify where breweries
can be located. Bob Generous continued discussion with amendments to wetlands, zoning
variances requirements, zoning permits, securities required under site plan review, stable
permits, housing of farm animals, and connection of fences. Council members questioned the
need for the amendment to the connection of fences. Mayor Laufenburger directed staff to come
back with further information regarding amendments to parking requirements.
The work session was recessed at 7:00 p.m. It was reconvened at 8:10 p.m.
DISCUSS PARTICIPATION IN HGAC, A JOINT PURCHASING COOPERATIVE
AGREEMENT FOR PURCHASE OF 2016 FIRE DEPARTRMENT MINI-PUMPER.
Chief Don Johnson provided background information on HGAC (Houston-Galveston Area
Council) and how HGAC manages the public bid solicitation for available equipment. He
reviewed the benefits of using HGAC, where the fire department is at in the process and
provided an update on fundraising for the Fire Department Memorial.
DISCUSS DONATIONS TO NON-PROFIT ORGANIZATIONS.
Mayor Laufenburger provided background information on why this item is being discussed is
because of a letter from WeCAB asking the City for a donation. Todd Gerhardt recommended
that Chanhassen enter into a similar agreement as Victoria. Councilwoman Tjornhom, speaking
as someone who works for a non-profit organization, stated her belief that this is a bad idea for
the City to enter into because where do you draw the line. Council members agreed with
Councilwoman Tjornhom that this is a slippery slope.
Mayor Laufenburger adjourned the work session at 8:45 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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