B. Review 2016 Key Financial Strategies/City Manager’s Work Plan I1
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City Manager's Work Plan
TODD GERHARDT, CITY MANAGER
Environment for Innovation & Change . . Providing Financial Stability & Resources
Creating Solutions for Infrastructure - Enhancing Goals to Access the Impact
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ESTABLISH ANNUAL GOALS & KEY
FINANCIAL STRATEGIES
Background: In July 2002, staff met with Jim Prosser from Ehlers & Associates to begin
development of the city's key financial strategies. At that time, comparisons were
completed of similar cities based on tax base mix, growth, allocation, population, five-year
budget comparison, debt ratios, tax capacity, and bond ratings. Council and staff identified
Financial Foundation Descriptions and prioritized capital improvements. City Council
adopted the Key Financial Strategies (KFS) on June 9, 2003. Implementation began with
the 2004 budget process, i.e. pavement management system including trails, roads, parking
lots; debt service; fixed assets for remodeling/replacement; water treatment and future
infrastructure; etc. These strategies will also be used as a part of our 2017 strategic planning
process.
Competitiveness
Create an environment for innovation and change—
building on our strengths, creativity, and skills.
MID-YEAR REVIEW OF KEY FINANCIAL STRATEGIES: PREPARE A MID-
YEAR REVIEW OF ALL KEY FINANCIAL STRATEGIES FOR PRESENTATION
AT THE FIRST MEETING IN AUGUST
On July 11, 2016, staff updated the City Council on each of the items in the city's 2016
Annual Goals and Key Financial Strategies. Obtaining state funding for the Highway 101
upgrade was discussed and staff was encouraged to continue to work on finding funding
opportunities, including developing a partnership with Carver County to assist with
requesting funding support from the state legislature.
REVIEW DESIGNATION OF KEY FINANCIAL STRATEGIES CITIES:
DETERMINE IF CURRENT CITIES ARE STILL COMPARABLE TO
CHANHASSEN AND DEVELOP ATIMELINE FOR HOW OFTEN THIS SHOULD
BE REVIEWED
In April, the City Council directed staff to add additional datasets to aid in evaluation of
potential KFS cities, and in June staff presented a full analysis of many cities for
consideration. Based on the data presented, City Council determined that Andover and
Farmington were no longer comparable to Chanhassen and opted to include Shakopee and
Inver Grove Heights instead.
On June 13, 2016, Council approved the new list is as follows: Chaska, Cottage Grove, Elk
River, Inver Grove Heights, Lino Lakes, Prior Lake, Rosemount, Savage, Shakopee, and
Stillwater. Council also requested to review this list every three to five years going forward.
SOLAR AND GREEN ENERGY INITIATIVES: DISCUSS INVESTMENTS INTO
SOLAR AND GREEN ENERGY INITIATIVES WITHIN THE CITY
In February the City Council reviewed solar energy information regarding the city's
participation in potential solar garden proposals. At this time, the city has committed 14%
of the current Xcel Energy load to one solar garden at the Blue Lake Wastewater Treatment
Facility. Council has also considered a second proposal from US Solar, which requested
20% of the city's current load, which would bring the total to 34%. However, based on
future growth, the total city load would be at 30% after the construction of West Water
Treatment Plant is completed in 2017. At this time, the City Council has decided not to
enter into future solar contracts that would exceed 30% of the city's total future load
capacity. The City Council would be interested in future contracts if they have a significant
positive impact on the city and remain below 30% of the total load capacity.
Strengthen the City's Financial Position
Provide financial stability and resources necessary to achieve the city's vision by
exercising financial stewardship,implementing best practices, and utilizing
long-term financial planning tools.
TWO-YEAR BUDGETING: A TWO-YEAR BUDGET PROCESS PROVIDES
INSIGHT INTO IMPACTS AND OPPORTUNITIES FOR
INCREASES/REDUCTIONS FOR THE FOLLOWING YEAR. THE
DEVELOPMENT OF LONG-TERM FINANCIAL GOALS AND STRATEGIES
HELP AVOID LAST MINUTE SURPRISES. IT ALSO HELPS
COUNCIL/STAFF/PUBLIC BETTER UNDERSTAND REVENUES, COST
DRIVERS, AND HIDDEN LIABILITIES/OPPORTUNITIES
On June 27, 2016, the City Council reviewed a plan that would implement a two-year
budgeting process. The second budget year will not be a council-approved budget, but
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instead will act as a financial tool to forecast future budgetary needs. The City Council
endorsed this process and clarified that the second year would be clearly labeled as an
"Estimated Budget."
BUDGET PROCESS: PRESENT THE CITY COUNCIL WITH A LIST OF
POTENTIAL COST-CUTTING MEASURES EARLIER IN THE BUDGET
PROCESS
On June 27, 2016 City Council and staff started preliminary budget discussions for 2017.
Items discussed included the two-year budget document, new construction values, police
contract, wages, healthcare, and the budget calendar. In August, staff presented three
alternative budget scenarios for City Council consideration. Staff also included the
following potential general fund changes to decrease the general fund levy a total of
$75,000:
• Reallocation of 25% of MIS Coordinator position and 25% of the PC Support Tech
position to the city's Utility Funds - $50,000
• Delay hiring GIS Specialist in 2017 - $10,000
• Increase in building permit valuation (last increased in 2009) - S 15,000
Planning for the City's Infrastructure
Create solutions for managing existing infrastructure and
future growth in our community while preserving
a sustainable quality of life and protecting the environment.
SOLICIT STATE FUNDING FORTH ioi BETWEEN PIONEER TRAIL AND CR
61: WITH COMPLETION OF THE TH 101 RIVER CROSSING, THE NEED TO
FINISH AND UPGRADE TH 101 GOING UP THE BLUFF IS GREATER THAN
EVER
The City of Chanhassen entered into a contract for lobbying services with Messerli &
Kramer. With the help of their representatives of Thomas J. Paul and Katy Sen, we
communicated with several legislators and their staffers on the need to reconstruct State
Highway 101 south of Pioneer Trail to Flying Cloud Drive (CSAH 61). Mr. Paul and Ms.
Sen were instrumental in arranging introductions to key legislators and follow-up support to
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our special legislative request to reconstruct State Highway 101. Mayor Laufenburger, Paul
Oehme, and I represented the city before the Minnesota Legislature by testifying at a State
Senate Transportation Committee hearing on the matter. We also had extensive discussions
and support from legislators for increased funding for turnback projects in the
Transportation Committee. Unfortunately, the 2016 Legislative Session came to a
disappointing end with the legislature failing to pass a bonding bill, transportation bill (or a
long-term transportation funding measure), or a tax/budget bill.
We have already demonstrated our commitment to this project by adopting a preliminary
map for the route (pictured below) as well as purchasing one of the properties along the
corridor. I strongly believe that the work Thomas and Katy are doing, in addition to the
steps already taken, will ultimately lead to completion of State Highway 101 in the next
several years. For that reason I would also like to continue using Messerli & Kramer to assist
us in preparing an action plan before the 2017 legislative session begins. I will be looking for
feedback from the City Council at the November 14'meeting to discuss next steps.
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PRELIMINARY DESIGN, LAYOUT, AND CONSTRUCTION OF A SECOND
WATER TREATMENT PLANT: EVALUATE THE BEST LAYOUT FOR THE
PLANT AND INCORPORATION OF A PARK WITH THE GOAL OF STARTING
CONSTRUCTION IN 2017
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The City Council commissioned the construction of a West Water Treatment Plant this past
fall as a part of the city's annual utility rate study and Capital Improvement Plan (CIP)
review.
On February 22, 2016, City Council approved a consultant contract with WSB &
Associates, Inc. for design and construction administration services for the West Water
Treatment Plant in the amount of$965,326.00. At a work session in May, WSB presented
the City Council with the preliminary design for the plant. An open house was held in June
for the surrounding neighborhood where staff heard many concerns regarding the size,
location, and operating hours of the proposed building. All of this information was
communicated to Council and at their June 27, 2016 meeting, the City Council directed
staff to follow a dual process: one that included the aeration process and one without(which
would decrease the footprint of the building).
The City Council reviewed the 90% plan design for the West Water Treatment Plant at an
August work session and ultimately decided to move forward without the aeration process.
In addition to the smaller footprint, there were significant changes made to the design so
that the plant looks like a single-family home and would blend in with the existing
neighborhood. The latest design has incorporated a pitched roof and windows using a
Mission/Prairie home design.
On September 26, 2016, City Council authorized staff to advertise for bids, as well as
analyze the cost differential on two alternative sites as opposed to the current location. No
detailed discussions were held regarding the proposed alternative sites, but staff did
determine that they were not economically practical. Full documentation of the alternative
sites was included in the correspondence packet of the City Council's October 12, 2016
regular meeting.
The City Council ultimately awarded the bids as follows:
• Construction of the West Water Treatment Plant to Rice Lake Construction Group
in the amount of$13,880,600.
• Water main improvements to G.F. Jedlicki, Inc. in the amount of$1,164,539.
• Security system improvements to Pro-Tech Design in the amount of$31,493.77.
• Fiber optic installation to Carver Link in the amount of$45,100.
Construction of the plant will start in November of 2016 and be completed in April of
2018, with water filtration plant start-up in May of 2018. The most recent renderings are
shown on the next page.
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ALTERNATIVE SANITARY SEWER FEASIBILITY STUDY FOR THE TH zos
AND PIONEER TRAIL AREA: PROVIDE ALTERNATIVE DESIGNS FOR
SANITARY SEWER CONSTRUCTION ALONG PIONEER TRAIL. THE
CURRENT DESIGN GOES THROUGH THE BLUFF CREEK GOLF COURSE
PROPERTY
Earlier this year staff completed a scoping study that evaluated several alternative utility
extension options along with cost estimates for each alternative. The study area included
properties primarily along Highway 101 extending from Pioneer Trail south to the top of
the bluff. Five of these alternatives where presented to the City Council at the work session
on June 13, 2016. This information was also presented to the neighborhood at an open
house on September 1, 2016.
Most residents that attended the open house, which have little opportunity to subdivide,
questioned the need to advance the extension of utilities to this area prior to the
reconstruction of Highway 101. If extension of sewer and water occurred prior to the
reconstruction of Highway 101, the work would be development driven. The next step in
the process would be for property owners or developers wishing to advance the extension of
City utility services to the area draft a feasibility study. The study must identify the
preferred utility extension alignment, determine the probable cost for the work, and
identify funding splits. This information would then be presented to the City Council to
determine if extension of utilities to this area should take place prior to the reconstruction of
Highway 101.
Currently, the State of Minnesota may have turnback funds available for the reconstruction
of TH 101 from Pioneer Trail to Flying Cloud Drive in 2025. Unless a new funding source
is secured such as a federal grant or new state funds, TH 101 will likely not be improved for
at least nine years. It is most cost effective and efficient to install sewer and water
improvements at the time TH 101 is improved. However, with many property owners
expressing interest to develop prior to 2025, the city has elected to evaluate alternatives to
extend public services to this area. Some properties many not want to develop at this time
so alternate sewer and water alignments other than what is identified in the City's
Comprehensive Plan were evaluated to reduce impacts to these properties.
The Comprehensive Plan shows trunk sewer and water extending from the Powers
Boulevard and Pioneer Trail intersection through Bluff Creek Golf Course to the study area.
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MARKET BOULEVARD TRAFFIC/FEASIBILITY STUDY: PROVIDE AN
ANALYSIS OF THE CURRENT AND FUTURE TRAFFIC IMPACTS ALONG
MARKET BOULEVARD FROM TH 5 TO WEST 78TH STREET
In February City Council approved a consultant contract for completion of a traffic study for
Market Boulevard from West 78th Street to TH 5. On May 23, 2016 the study findings were
presented to City Council, which included a summary of analysis of existing conditions,
accidents, and future conditions.
The final recommendation for future improvements includes the development of a four-lane
divided roadway from West 78th Street to the railroad tracks. Dedicated left-turn lanes on
Market Boulevard were also recommended and should reduce the number of accidents that
occur with vehicles turning left, and allow thru traffic to flow more freely. The section of
Market Boulevard between the railroad tracks and TH 5 would generally remain consistent
with current conditions.
Staff will program these improvements, estimated at $3.2 million, as part of our Capital
Improvement process in the fall of 2016.
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DEVELOP A COMPREHENSIVE PARK PLAN: ESTABLISH A VISION FOR THE
CITY'S OVERALL PARK AND TRAIL PROGRAMS, INCLUDING LONG-TERM
PARK NEEDS AS WELL AS REPLACEMENT PROGRAMS/POLICIES
Since June staff has been working with Hoisington Koegler Group, Inc. on a Parks and
Recreation System Plan. This is a comprehensive planning process that will provide a 20-
year vision and outline a Capital Improvement Plan for the city's parks, trails and open space
system. Included in the planning process will be highlighting recreational opportunities,
based on citizen input and priorities. At this time we are approximately five months into the
14-month effort.
When completed, the overall plan will address parks, play structures, athletic facilities,
natural areas, recreation programming, the Chanhassen Recreation Center, trails, park
operations, and long-term maintenance procedures. The planning process for this guiding
document will serve as a comprehensive plan for city staff and the City Council in
developing a long-term vision for the city's parks and recreation programs. The planning
process will include the following:
• Inclusive process that represents the diverse interests of the community.
• Comprehensive inventory and analysis of the existing system.
• System-wide vision for the future.
• Development of executable goals, principles, standards and actions.
• An overall blueprint for priority investments, asset management, maintenance, park
dedication, and funding.
Staff and consultants held their first advisory committee meeting on September 8, 2016,
created a project website, and opened three online surveys to the public. The surveys
covered topics including general information on the parks and recreation system, and
specific questions regarding both seniors in the community and use of the Rec Center. In
addition to the surveys, several pop-up meetings were held at events such as the farmer's
market, softball leagues, and pickleball matches.
The next step in the process is for staff and the consultant to hold listening sessions and
stakeholder meetings this winter, with outreach sessions planned for the spring and summer
of 2017. The next City Council update will be in February 2017.
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Enhance Local Tax Base
Evaluate the Comprehensive Plan
with current goals and policies;assess the impact.
2040 COMPREHENSIVE PLAN UPDATE: THE CITY'S COMPREHENSIVE
PLAN IS UPDATED EVERY TEN YEARS. THIS PROCESS ESTABLISHES THE
VISION AND SETS THE COURSE FOR GUIDING FUTURE LAND USE, PARK
AND RECREATION, TRANSPORTATION, AND WATER RESOURCES FOR
THE NEXT TWO DECADES. STAFF PROPOSES AN EXTENSIVE PUBLIC
PROCESS, INVOLVING PEOPLE THROUGHOUT THE COMMUNITY
On April 20, 2016 the City Council, key city staff, and members of our four city
commissions met to jointly discuss the most important issues to be included in the updated
2040 Comprehensive Plan. The discussion focused on our community strengths and assets,
current critical issues, questions we need to consider, and priorities over the next year. Staff
presented an overview of the Comprehensive Planning process at the City Council's work
session on May 9th. Key issues that came from the meeting include:
• Highway 101 —Pioneer Trail to County Road 61
• Lifestyle Center
• Water Conservation
• Park& Recreation Master Plan
• Emerald Ash Borer
• Downtown Redevelopment
• Infilling Development
Staff will continue with the Comprehensive Plan Update based on the following schedule:
• 2015 System Statements from Met Council
• Data Collection—Spring 2016 (ongoing)
• City Commission's Vision Exercise—April 20, 2016
• Draft of 2040 Plan—Winter 2016/2017
• Community Engagement—Winter/Spring 2017
• Revise Draft—Spring 2017
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• City Council Review and Authorize Distribution Summer 2017
• Jurisdictional Review— 6 months
• Public Hearing at the Planning Commission— Fall 2017
• City Council adoption pending Met Council Approval— 2017
• Met Council Submittal Approval —End of 2017
BUSINESS SUBSIDY EDUCATION: COUNCIL EDUCATION ON TAX
INCREMENT FINANCING, LIVABLE COMMUNITIES ACT GRANTS, CARVER
COUNTY CDA GRANTS, ETC; AND DEVELOP A BUSINESS SUBSIDY
PROGRAM FOR ECONOMIC DEVELOPMENT POLICIES/PRACTICES
During the October 24, 2016 work session staff, along with Nick Anhut from Ehlers and
Associates, walked the City Council through the various types of business subsidies that are
available to local governments. Mr. Anhut's presentation included a case study of a
potential development and demonstrated how tax increment may be used as a part of
creating a formal business subsidy policy. Staff also reviewed the city's past business subsidy
practice and a sample policy document.
LIFESTYLE CENTER SITE: WORK WITH PROPERTY OWNERS, COMMUNITY
MEMBERS, AND CITY COUNCIL/STAFF TO DEVELOP A SHARED VISION
FOR THE SITE
On October 24, 2016, the City Council reviewed the concept plan for the proposed
lifestyle development, which is now being called Avienda. The proposed project has
increased in size from 70 acres to 120 acres since the previous application. The project
schedule is as follows:
• October 19, 2016 —Neighborhood meeting
• October 24, 2016— City Council review of the PUD
• November 1, 2016— Planning Commission public hearing
• November 28, 2016 — City Council to consider approval of concept plan and order
ALTAR
Major elements to be aware of going forward include:
• Wetland alteration and surface water management plans need to be completed.
• Consideration of critical issues from the April 1, 2015 Visioning Process.
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• Meaningful park-like places, including the provision of appropriate recreation
equipment, site furnishings, and landscaping adjacent to both the townhome and
apartment neighborhoods need to be incorporated.
• Preserve the woodlands identified in the Bluff Creek Overlay District to the greatest
extent possible. The Parks and Recreation Commission envisions nature trails within
a portion of the woodlands.
• Significantly increase the walkability of the core retail space to encourage pedestrian
interaction by providing wide sidewalks, numerous gathering locations, interesting
site furnishing, landscaping, and hardscapes.
• Provide well-designed sidewalks and pedestrian connections to all buildings and
locations.
• Incorporate traffic calming into all pedestrian crossing locations.
• Design, incorporate, and construct a comprehensive on-site system of trails,
including:
o A trail running west to east from Bluff Creek Boulevard through the upper
portions of the woodlands continuing east along the southern border of the
property, then turning north adjacent to Powers Boulevard.
o An internal trail positioned north to south within the townhome neighborhood
allowing residents to gain access as pedestrians to adjacent destinations.
o A thoughtfully-designed, formal access that welcomes pedestrians from the
intersection of Lyman and Powers Boulevards directly into the proposed
development.
o Completion of the emergency roadway connection with Miranda Way to be
utilized as a trail except in the event that north/south emergency vehicle access is
needed.
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CO`:CET FLAItOPM7NS FOR GEIGER VILLAGE
AVIENDA
Other Projects and Goals Accomplished
CHANHASSEN FIRE DEPARTMENT CELEBRATES 50-YEAR ANNIVERSARY
AND DEDICATION OF FIREFIGHTER MEMORIAL
On October 9, 2016, firefighters past and present gathered for the unveiling of the new
Firefighter Memorial Monument at Chanhassen Fire Station No. 1. It was also a time to
celebrate the 50-year anniversary of the Chanhassen Fire Department. Chief Johnson and
the Memorial Committee did an outstanding job recognizing and celebrating this historic
event, and also did an excellent job in fundraising and managing the construction of the
memorial. A big thanks also goes out to Mark and Tracey Undestad for their generous
donation and project management experience. Their dedication to the City of Chanhassen is
truly something special, and they serve as a great example for others who wish to give back.
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RESPONSE TO DEATH OF PRINCE ROGERS NELSON
City staff successfully managed the media and pedestrian traffic during the sudden passing of
Prince Rogers Nelson on April 21, 2016. Mayor Laufenburger put it best when he said that
although staff was not ready for an event of this size and scale, we were prepared to respond
accordingly based on the tools, resources, and previous experiences in our possession. I
cannot tell you how proud I am of everyone, including the first responders, Carver County
Sheriffs Office, all city employees, Paisley Park staff, and surrounding communities and
agencies that all worked together to manage the pilgrimage to Paisley Park without injuries
or accidents.
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PAISLEY PARK MUSEUM REZONING REQUEST
On October 24, 2016, the Chanhassen City Council approved the rezoning of Paisley Park
from Industrial Office Park (IOP) to Planned Unit Development (PUD) which allows the
facility to operate as a museum. Prior to approval, several meetings were held to ensure the
concerns regarding traffic, pedestrian movements, parking improvements, and hours of
operations were adequately addressed. Staff worked diligently with consultants and Paisley
Park representatives to ensure that the final product was something that reflects positively
on all parties involved.
RECEIPT OF GRANT FROM THE CARVER COUNTY COMMUNITY
DEVELOPMENT AGENCY FOR THE CHICK-FIL-A REDEVELOPMENT
PROJECT
On October 26, 2016, the Carver County Community Development Agency granted the
City of Chanhassen a $30,000 Redevelopment Incentive Grant to help offset the regional
storm water costs associated with the Chanhassen Shoppes, LLC/Chick-fil-A. The site was
taking on additional storm water runoff from an adjacent property and to help offset their
storm water costs, the city applied for and received grant dollars from the Carver County
Community Development Agency.
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CORI WALLIS LITIGATION WAS GRANTED SUMMARY JUDGEMENT IN
FAVOR OF THE CITY OF CHANHASSEN
The City of Chanhassen was granted summary judgement by Judge Kevin Eide on October
18, 2016, dismissing Counts III, IV, and V of the Wallis complaint (Counts I, II, and VI
were previously dismissed). The Wallis' filed the lawsuit against the city on January 4-,
2016, alleging the following:
Count I: Defamation against the City;
Count II: Tortious Interference with contract against Crooks;
Count III: Malicious Prosecution against the City;
Count IV: Abuse of Process against the City;
Count V: Intentional Infliction of emotional distress upon Mr. Wallis against the
City and Crooks; and
Count VI: Intentional Infliction of emotional distress upon Defendant Jaime Wallis
against the City and Crooks.
After two hearings, several depositions, and many hours of meetings, all counts were dismissed.
In addition, Judge Kevin Eide allowed for sanctions to be issued against the plaintiffs and their
attorney for violations of the Minnesota Rules of Civil Procedures. The Wallis' have waived
their right to appeal as part of a recent settlement offer, so this matter has been finalized.
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