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CC 2017 01 09 CHANHASSEN CITY COUNCIL REGULAR MEETING JANUARY 9, 2017 Mayor Laufenburger called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge to the Flag. COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilman McDonald, Councilwoman Tjornhom, Councilwoman Ryan, and Councilman Campion STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Kate Aanenson, Todd Hoffman, Greg Sticha, and Roger Knutson PUBLIC PRESENT: Glenn Kaufmann 6870 Redwing Lane Dan Mertes 8671 Flamingo Drive Pamela McGrann 6540 Fox Path Jacob and Diane Taylor 7516 Bent Bow Trail Cathie Zimmerman 6291 Near Mountain Mayor Laufenburger: Thank you and for the record let it be noted that all council members are present this evening along with Mr. Gerhardt, City Manager and Mr. Knutson, City Attorney. Want to welcome everybody to this council meeting. Those that are in the chambers this evening as well as those of you that are watching either at home on Mediacom cable or via internet through our livestream through the City’s website. First of all council members are there any modifications to the agenda for this evening? If not then we will proceed with the agenda as printed. OATHS OF OFFICE. Mayor Laufenburger: Our first action this evening is we have some oaths of office to administer. Mr. Knutson are you prepared to act in this manner? Roger Knutson: Yes I am Mayor. Mayor Laufenburger: Alrighty, thank you. Proceed. Todd Gerhardt: You can do both at the same time if you’d like. Roger Knutson: One at a time or both? Councilman McDonald: However you want to do it. Chanhassen City Council – January 9, 2017 City Attorney, Roger Knutson administered the Oaths of Office to Councilwoman Bethany Tjornhom and Councilman Jerry McDonald. Mayor Laufenburger: Do you have documents to sign Chelsea or? Chelsea do they have documents okay? Chelsea Petersen: Yeah we will take care of that. Mayor Laufenburger: Okay. Well at this time if, not required but would Councilmember McDonald or Tjornhom like to make a comment of any sort? Councilwoman Tjornhom: Certainly. Funny, little funny story tonight. Being sworn in I had mentioned to my 3 children this was happening tonight and now I’m a grandmother so the little guy goes to bed about 7:00 and my son is newly married and my daughter is 18. Mayor Laufenburger: Just for clarification, the little guy who goes to bed at 7:00 and the son who’s recently married, they’re not the same one? Councilwoman Tjornhom: No they’re not. They’re not although it seems like just yesterday. Anyway so I was talking to my daughter about that and I was telling her no you don’t have to come tonight and she goes yeah you know how many times have you done that already anyway and so I think she feels that it was well under control so anyway. I just want to thank, it really is an honor for me to be sitting here. You know I think about sometimes other people that have ran for office and haven’t made it and their willingness to serve and their wanting to get involved and just how fortunate I am to be sitting here. For everybody that’s in this room and watching I earnestly do mean the oath that I took. That I really do care about this community and I will serve willfully, justly and impartially to the best of my knowledge and so thank you so much again for allowing me to be here for 4 more years and I look forward to making this a community that everyone wants to stay in so thank you so much everybody. Mayor Laufenburger: Thank you Councilmember Tjornhom. Mr. McDonald. Councilman McDonald: Thanks Mayor. Mayor Laufenburger: There’s a time limit by the way. Councilman McDonald: Okay. Yeah I just want to thank all the residents and everyone who voted for me and showed support. This is my third time of doing this so I probably do have it down by now but I do appreciate working for the citizens of Chanhassen. We may not have always agreed but I’ve always tried to keep the best interest of the community at heart in any decisions I’ve made in the past and also in going forward. I’ve always tried to be open. I encourage anyone to contact me. A lot of you have and I really do appreciate that because 2 Chanhassen City Council – January 9, 2017 sometimes it helps keep on the rails of sanity I guess as we look at some of these things. I will continue to try to do my best to serve the people of Chanhassen and again I look forward to a great 4 years and we’re going to get a lot accomplished so thank you again very much. Mayor Laufenburger: Thank you Mr. McDonald. Anybody else? I just, I’d like to take a moment and comment on the recent election and the swearing in of Councilmembers McDonald and Tjornhom. First Councilmember Tjornhom. I want you to know that I’m especially thankful that you chose to run for another term. I know that there were circumstances that may have interfered with making this a priority for the margin in your life at this time so I’m especially grateful both personally and also on behalf of the people of Chanhassen that you have chosen to continue your advocacy position for Chanhassen. Also you make time for the Fire Relief Association, Beyond the Yellow Ribbon and much, much more and it further demonstrates your personal investment in this city. Your voice reflects your passion and your love for what you believe is in the best interest of this community and the citizens and acknowledge and appreciate that about your role on the council so thank you for stepping into another year of service on your City Council. Mr. McDonald, you also chose another term for the City Council and it’s been a valuable learning experience for me sitting alongside you through my entire time of public service. I also now get to further that experience in our roles on the Southwest Transit Commission. Additionally I speak on behalf of the entire community when I express my appreciation for your support of organizations like Rotary, Buy Chanhassen, Beyond the Yellow Ribbon, the Chanhassen Red Birds and many others and your special skill in the legal arena helps in our discussions especially when Mr. Knutson isn’t present so to you I also say thank you for another term of service on your City Council. Thank you very much to both of you. Now next on our agenda we have some organizational items. ORGANIZATIONAL ITEMS. Mayor Laufenburger: Is this you Mr. Gerhardt? Todd Gerhardt: Yes. Mayor Laufenburger: Can we speak to these perhaps collectively or okay? Todd Gerhardt: You can. Mayor Laufenburger: Alright. Regarding the first one. Designation of an official newspaper. Todd Gerhardt: Yes staff is recommending the Chanhassen Villager as our official newspaper. It would be used for any subscriptions that we may take. Public hearing notices and any special advertisements. Mayor Laufenburger: Okay. Council any questions on that? Alright next one. Appointment of Acting Mayor. 3 Chanhassen City Council – January 9, 2017 Todd Gerhardt: Under our term of government we must designate an Acting Mayor and it can be any of the sitting current council members. Mayor Laufenburger: Okay. I have had discussion with one member of the council regarding this and I would like to put the name of Elise Ryan in nomination for Acting Mayor for the year 2017 and she has agreed that if elected she will serve in that capacity. Okay. How about the appointments to the Fire Relief Association Board of Trustees? Todd Gerhardt: Same here. We need to designate one council member to serve on the Relief Association and Board of Trustees and it can be any of the council members sitting here. Mayor Laufenburger: Okay. And I have also had conversation with Councilmember Tjornhom and she has done this in the past for the past year, 2 years? Councilwoman Tjornhom: Year. Mayor Laufenburger: Year and she has agreed to, if so voted on she will serve in that capacity again so I’ll consider her name in nomination. How about the appointment to the SouthWest Transit Commission? Todd Gerhardt: Councilmember McDonald’s term has expired. He has served his 3 year term on the SouthWest Transit Commission so again he could be reappointed or any of the sitting council members could serve on the SouthWest Transit Commission for a 3 year term. Mayor Laufenburger: Okay. And I have had conversation with Mr. McDonald. He’s interested in continuing that role. His experience will be valuable not only to the SouthWest Transit Commission but also on the Suburban Transit Association of which SouthWest Transit is a member so with that in mind let me make a motion that the Villager be the official newspaper. That Councilmember Ryan be the Acting Mayor for 2017. That Councilmember Tjornhom be appointed to the Fire Relief Association for 2017 and that Councilman McDonald will be appointed to the SouthWest Transit Commission for 2017, 18 and 19 and I will make that as a motion. Is there a second? Councilwoman Tjornhom: Second. Mayor Laufenburger: Thank you Councilwoman Tjornhom. Any further discussion? Mayor Laufenburger moved, Councilwoman Tjornhom seconded to approve the following: 1. Designation of Official Newspaper: The Chanhassen Villager. 2. Appointment of Acting Mayor: Councilwoman Elise Ryan 4 Chanhassen City Council – January 9, 2017 3. Appointment to Fire Relief Association Board of Trustees: Councilwoman Bethany Tjornhom. 4. Appointment to the SouthWest Transit Commission: Councilman Jerry McDonald. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: I would also like to make note at this time, though it’s not on the agenda. Mr. Dan Campion has been appointed by the Metro Cities as the alternate to the Transportation Advisory Board so if there’s ever a time that I as a primary appointment am not able to attend then Dan will be attending, or Councilman Campion will be attending in my stead. Congratulations on that Mr. Campion. Councilman Campion: Thank you. Mayor Laufenburger: Okay. Alright. PUBLIC ANNOUNCEMENTS: None. CONSENT AGENDA:Councilman McDonald moved, Councilwoman Ryan seconded to approve the following consent agenda items pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated December 12, 2016. 2. Receive Park and Recreation Commission Minutes dated December 13, 2016. Resolution #2016-01: 3. Approve Resolution Accepting $500 Donation from Charter Bank for Senior Holiday Party. 4. Approval of Temporary On-Sale Liquor License, St. Hubert Catholic Community, Cana Dinner on February 11, 2017. 5. Approval of Temporary On-Sale Liquor License, Chanhassen Rotary Club, February Festival, February 4, Lake Ann Park. Resolution #2017-02: 6. Accept Donation of Lions Drinking Fountain at Lake Ann Park, Chanhassen Lions Club. 7. Item deleted. Resolution #2017-03: 8. Approve Replacement Purchase of Utility Vehicle #307. 5 Chanhassen City Council – January 9, 2017 9. Approve Expansion of Point of Sale and Consumption Areas of On-Sale Wine and Strong Beer License for Life Time Fitness. Resolution #2017-04: 10. Approve Resolution Accepting $500 Donation from Liga Latina Baseball League for the Lake Susan Ballfield Dugout Project. 11. Approve Lease Renewal for Old Village Hall. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: I would like to make note of one in particular. One item, we do have present tonight Glenn Kaufmann and Dan Mertes from the Lions Club and they are offering a very generous donation to Lake Ann Park. A donation of a Lions Drinking Fountain at Lake Ann Park. Glenn or Dan would I ask one of you to come up to the podium and just speak to this for just a moment if you wouldn’t mind. I know there’s some people that are excited about a drinking fountain so just state your name please. Dan Mertes: Yes, Dan Mertes, 8671 Flamingo Drive and Mr. Mayor and all of you on the council, thank you very much for your time and your support. Mr. McDonald thank you for your support. Mr. Hoffman as well. We are pleased to partner with the City on this donation. We would expect that the fountain would go in probably July of this year. The Lions will provide the fountain. We’ll provide the installation. The removal of the old fountain and I think it will be great for the kids that you know really frequent that park up there so we’re really looking forward to partnering with the City on this. Mayor Laufenburger: Well on behalf of the entire community I want to say thank you to the Lions Club for your donation. Dan Mertes: Absolutely. Mayor Laufenburger: Thanks Dan. Dan Mertes: Thank you. Mayor Laufenburger: Thank you. Please extend our appreciation to the entire club. Dan Mertes: Will do. Mayor Laufenburger: Alright, thank you. VISITOR PRESENTATIONS. Mayor Laufenburger: Is there anybody present that would like to speak this evening? 6 Chanhassen City Council – January 9, 2017 Pamela McGrann: I would. Mayor Laufenburger: Please, come to the podium and state your name and address please. Pamela McGrann: Thank you. I’m Pamela McGrann. I live at 6540 Fox Path, just about a mile and a half north of here. I wanted to address the proposed redevelopment of the Frontier Building site. First I wanted to tell all of you without hoping to be condescending that I haven’t lived here all that long. I have lived in a lot of places over my life and I’m incredibly impressed with how well run the City of Chanhassen is. I have never encountered a city with this level of professionalism and just on top of things. It’s amazing so you should know that there are people who recognize that. Mayor Laufenburger: Okay I’ll make sure that our City Manager hears those words. Pamela McGrann: Thank you. I made a handout for everybody which I have here. I know I have to be brief. I only want to offer thoughts. I don’t in any way intend to tell people what they should do but when I read in the Chanhassen Villager that there was a need to redevelop the Frontier Building site I thought yeah, that makes a lot of sense. It’s really under utilized. Right in the center of Chanhassen. That should happen but when I read about the exact proposal it raised some questions in my mind so I just am sharing a couple things. United Properties, as you know plans to build a 6 story apartment building. 7 stories on the south side. Seems a little tall for Chanhassen. Just throwing that out there. Maybe it doesn’t seem too tall for what the long term plans are but I just thought I’d throw that out there. I also wanted to point out that I kind of am questioning, I know United Properties said that they think they’re going to be able to get market rate for their rentals but I thought huh. It’s right on the railroad tracks and between a third and a half the apartments actually will look onto the roof of this Aldi and so I thought I don’t know. Maybe they’ll get going rates but I’m not so sure about that. The second question I had was with regard to the grocery stores and I do admit to having a bit of a bias from this perspective and I apologize. I’m a physician. I am not a business person so there is I’m sure a huge amount of business stuff I don’t understand. My father was a former VP, I mean this is 3 decades ago for Super Valu Stores and so I feel like I learned a little bit about the grocery industry and what I learned is they have a very, very narrow profit margin which is only about one percent and so I thought man we’ve got 4 great grocery options that each serve a slightly different niche in Chanhassen and I actually sat down with Google Maps and I found, and I have it listed here how many feet from either the front or back door of the apartment building to the main entry of these 4 different grocery stores. How many feet it would be roughly to walk and these are all really not very far, particularly the Cub which would be the closest competitor. I also, as you probably know just wanted to point out that Cub, Byerlys and Target are all home town organizations. They’re owned or operated or supplied or all of the above by Twin Cities, two of them Fortune 500 companies and Aldi, as you probably know is a German conglomerate who’s nearest distribution center is in Illinois and so I really have questions about how well they’ll really understand Minnesota food habits and how well they’ll respond to the kinds of food 7 Chanhassen City Council – January 9, 2017 products that Minnesotans are perhaps used to buying. So then the last thing I wanted to mention, so I just want you to think a little bit. I am not speaking for any grocery store in this area because I don’t, I go to all of them. I don’t have any official status with any of them so I just want you to know that. I’m not speaking on behalf of anybody. My last comment was I thought man, I wonder if it would work out. Maybe it’s too late in the game but I wonder if it would work out for them to, for United Properties to have perhaps a larger footprint for the apartment building and actually smaller footprint retail on the first level. So with that I want to thank you for your attention. I just wanted to throw a few thoughts out. Kate kindly pointed me. I was trying so hard to find the Minutes for the working session. She pointed them out to me so I read them and it sounded like maybe a couple of you had some questions too about perhaps some of these issues so I thank you for your time. Mayor Laufenburger: Well Ms. McGrann I would also, I thank you for voicing your views and unlike the work session which is a summary Minutes. City Council meetings are verbatim Minutes prepared so as a result of that, the developers United Properties and even Aldi if they choose to they will hear your remarks and I’m sure they will take those under consideration. I also want to say thank you for the work that you’ve put in preparing this. Preparing for tonight. This is an ongoing development. In other words there are more steps that need to take place for this to come to fruition but I think you raise some points, some of which have already been considered by the council so thank you Ms. McGrann and tell me, how long have you lived in Chan? Pamela McGrann: Three years but if I can. Mayor Laufenburger: You’re a veteran. Pamela McGrann: Yeah, do I have like 2 minutes? Mayor Laufenburger: Sure if you’d like. Pamela McGrann: To tell you how I ended up here. Mayor Laufenburger: Yeah and why you chose Chanhassen. Pamela McGrann: Why I chose Chanhassen. So I have to tell you I’m a 1975 graduate of Minnetonka High School. Mayor Laufenburger: Go Skippers. Pamela McGrann: Yes, go Skippers. Was trained in southern California. Thought I would never come back to the Twin Cities. Did 20 years at Mayo Clinic and then got kind of recruited back to the Twin Cities and was kind of depressed going around looking for homes and this is inappropriate but that’s okay. Looking for homes couldn’t, one of the homes that was just a little 8 Chanhassen City Council – January 9, 2017 not in an average development and after looking all up and down the west side of the metro just oh my gosh. Until one Sunday afternoon I said you know Jeff, when I was in high school there was a secret place that we would party up off of Pleasant View. I bet it’s been developed and here I am. The rest is history. Mayor Laufenburger: So now you’re living at the party site, is that what you’re telling me Ms. McGrann? Pamela McGrann: Yes I am and I’m not too ashamed to admit it in public so. Mayor Laufenburger: Well thank you very much for, and we’re pleased to have you as a member of our community. Thank you. Is there any other visitors that would like to speak to an item not on the agenda this evening? Alright with that I will close visitor presentations. AWARD OF BID, $10,000,000 2017A GENERAL OBLIGATION WATER REVENUE BONDS, EHLERS AND ASSOCIATES. Mayor Laufenburger: Mr. Sticha I think this is your item, is that correct? Greg Sticha: That is correct Mayor. Mayor and council, this evening we are asking the council to award a bid of $10 million dollars in General Obligation bonds, Series 2017A. For those at home I’m going to just give a brief update as to what the bonds were issued for and then introduce Nick Ehlers, or Nick Anhut from Ehlers and Associates. Mayor Laufenburger: Ooh, ownership huh. Ownership Nick? Greg Sticha: To break down the bids we received today. As council is award, but those at home may not be aware City Council approved construction of a water treatment facility in the northwestern section of the city. The approximately 16 and a half million dollar facility would be financed through the issuance of General Obligation bonds. In early December the City Council did award a bid on bonds of $3.6 million to a bank called First Tennessee I believe and this evening we are going to be awarding another $10 million dollars towards the total construction cost of the water treatment facility. The water treatment facility will be used to treat all of the city’s areas, in particular in high usage times in the summer. The City underwent, a part of that process the City underwent a bond rating review through Standard and Poor’s in early December. That review took into account both issuances. The one that we made on th December 12 and the one this evening. Their review reaffirmed the City’s AAA bond rating. The highest rating a local municipality can have for it’s debt. So with that I’m going to have Nick take the podium and talk about the results of today’s bids. Nick Anhut: Thank you Mr. Mayor, council members. Nick Anhut from Ehlers and Associates and I will say that I am an owner of Ehlers. We are an employee owned company, although a fairly small share and by no means. 9 Chanhassen City Council – January 9, 2017 Mayor Laufenburger: It’s okay. Small or large you have an impact. Nice to have you with us Nick. Nick Anhut: As Mr. Sticha mentioned this is the second installment of financing but the largest installment. We did keep this issue at $10 million dollars as the council and perhaps the public is aware the City can issue up to $10 million dollars of what we would call bank qualified debt per year. This is similar to a tax exemption. It’s another way of broadening the marketability of the bonds and providing some benefit to the banks that would hold these bonds in your name. Seven bids were received this morning from various entities. We actually did receive 4 bids from the previous bidders on the 2016B transaction as well as Piper Jaffrey, Wells Fargo and Raymond James. The low bid, again from First Tennessee came in at 2.77 percent true interest cost. That is a calculation we use boiling down all of the interest payments that would be made on the bonds as well as the financing costs. Wrapping it all together and coming up with a present value figure. Give you a sense of how much the cost of the transaction would be. After we went through the last transaction we resized this $10 million dollars worth of bonds to fit within your financial plan and anticipated close to a 2.87 result given where we saw the market trends so this is a very favorable bid and we are very pleased with the bidding on this transaction. Piper Jaffrey is the cover bid. They came in just a hair over up at 2.87 percent and then the other bids a little bit higher than that. Mayor Laufenburger: Can you explain that term cover bid Nick please? Nick Anhut: Cover bid would be the second bid or who came in second place or a little bit higher than the winning bid. Overall the difference between the low and the high bid was roughly 40 basis points or .4 percentage points. If you were to look at the amount of interest that you’re paying on the bonds and the difference between the low… (There was a mechanical malfunction at this point so a portion of the discussion was not recorded.) Nick Anhut: …in interest costs over the 22 some years that you’d be repaying these bonds so it does add up quite a bit. In addition there was a premium received on this offering so you will be receiving higher than face value as far as the proceeds available to go towards the project. In all deposit of $10.3 million dollars and this will lower your future borrowing amount for the final installment at the close of the construction. Mayor Laufenburger: So premium Nick, what you’re saying is First Tennessee was willing to offer more than what we were, we were asking for $10 million. They’re prepared to offer $10.3 at that same percentage point, is that correct? 10 Chanhassen City Council – January 9, 2017 Nick Anhut: You will still be repaying $10 million dollars worth of principal. However they included some premium up front proceeds into the transaction and you will essentially be trading that off in interest costs that you’ll be paying back over the life of the bond. Mayor Laufenburger: And do you incorporate at that into the final percentage rate calculation? Nick Anhut: That is included within the 2.77 percent that we had calculated. This chart here shows a projection of the debt service on the water treatment plant. The orange bar at the top was the anticipated repayment for the $16.5 million dollar project that was included within the City’s utility rate study. Annually the City evaluates it’s operating performance within it’s utility funds and in the attempt to adjust rates to meet growing demand and the various capital needs. As you will see from the bars we have now placed the light blue portion with the 2016B issue as well as the gray portion which is this 2017A and we believe that we have cut down about $50,000 of repayment costs with these two transactions so we’re coming in roughly 5 percent lower than what was included within the utility rate study. About $50,000 per year. This adds up to about $1.2 million dollars over the full term of repayment. The final installment is the dark blue figures here. We’ve built some capacity for that bond issue. As the project proceeds over the course of the next 18 months or so we’ll be engaging with the City perhaps looking at the utility fund once again updating our analysis and seeing whether or not that issue needs to be made or if there are some other alternatives that can be used to fund that, the remainder of the project but we have already built in some capacity within the anticipated debt service model to achieve that goal. Other than any of the questions that the council members may have that concludes my remarks. There is a resolution included within the council packet this evening to award this bid to First Tennessee and to pledge the net revenues as security for the payments thereof. Thank you all for your time. Mayor Laufenburger: Alright Nick if you wouldn’t mind just standing in case there’s any questions. Council members any questions of Mr. Anhut or Mr. Sticha? Any questions? Todd Gerhardt: Nick what was the rate on the issue that we sold several months ago? Nick Anhut: You were 3.14 percent. It was a slightly different structure I would say but this performed favorably in our analysis. Mayor Laufenburger: Smaller number, shorter term too wasn’t it? Nick Anhut: Longer term. Mayor Laufenburger: Oh longer term. Nick Anhut: It was the back end of your repayment cycle. Mayor Laufenburger: Oh that’s right. That’s right, okay. 11 Chanhassen City Council – January 9, 2017 Nick Anhut: So it would have been the higher rate. Mayor Laufenburger: Nick, for those of us that are not familiar with the financial markets, are there any efficiencies for either the City of Chanhassen or for FT and Financial Capital Markets by having the same lender for, or the same buyer of these bonds for both of them? Are there any efficiencies or not? Nick Anhut: In this case I would say not necessarily. There may be some efficiencies on FTN’s side. They may have been able to reach out to some of the people that they engaged with in December to say would you like to participate a little bit more fully in this investment in Chanhassen. As far as the City is concerned we competitively bid this in separate processes so we essentially wiped the slate clean and tried to get at the lowest possible interest cost to the City by having a truly competitive bid this morning and it just so happens that they did come in and win again. Mayor Laufenburger: And obviously we are guided by State Statute to be, the manner in which we conduct this bid we are fully in compliance with those State Statues is that correct Mr. Sticha? Greg Sticha: That’s correct. Mayor Laufenburger: Okay. I just had one last question. I noticed that Piper Jaffrey is identified as a Minneapolis company and they were just slightly higher. As you call them they were the cover or second. Is any consideration in awarding the bid given to a local financial company versus a company in Memphis, Tennessee or in our view is everybody local? Nick Anhut: For purposes of this transaction we cast the net nationwide. Mayor Laufenburger: Okay. Nick Anhut: There was no, I don’t want to say discrimination but there was no. Mayor Laufenburger: No favoritism given. Nick Anhut: No incentives given towards a local organization. Mayor Laufenburger: We’re going to give, if it’s a local company we’re going to give you an extra point or something like that? Nick Anhut: Not anything, not in this bidding parameters. I will say you did receive a number of bids and do periodically but in this case we were looking solely at the lowest cost to the City. 12 Chanhassen City Council – January 9, 2017 Mayor Laufenburger: Okay. You said $50,000 a year for, what’s the period of time? 20? Nick Anhut: The total repayment of all the different bonds would be 25 years. Mayor Laufenburger: Okay. So $50,000 a year over a 25 year period, what’s the net present value of that? Mr. Sticha you’ve probably calculated that already haven’t you? Greg Sticha: No but I know Nick has. Mayor Laufenburger: Nick have you? Nick Anhut: It adds up to $1.2 million dollars but that’s not a present value figure so I would have to discount a little bit back from that and say just a shade below $900,000. Mayor Laufenburger: Okay. So that’s essentially as a result of the market. As a result of the City’s AAA bond rating, which obviously contributes to people’s willingness to loan money to the City at a lower rate because that’s likely, or more likelihood that we’re going to be able to pay and the way in which we structure the payment, we’re exercising our fiduciary responsibility. Nick Anhut: Absolutely Mr. Mayor and taking advantage of the bank qualified by splitting it up into multiple issues also would provide that benefit. Mayor Laufenburger: Good. Okay, alright. Any other questions or comments? Thank you Mr. Anhut. I think I’m looking for a motion to, motion for action on this General Obligation Bond. Councilman McDonald: Mr. Mayor I’ll make a motion. Mayor Laufenburger: Thank you Mr. McDonald. Councilman McDonald: I would recommend that the City Council award the bid for the General Obligation Bonds Series 2017A to the low bidder who was Financial Capital Markets out of Memphis, Tennessee. Mayor Laufenburger: FTN. Councilman McDonald: FTN Financial Capital Markets out of Memphis, Tennessee. Mayor Laufenburger: Alright, thank you Mr. McDonald. We have a motion. Is there a second? Councilman Campion: Second. Mayor Laufenburger: Is there any discussion? 13 Chanhassen City Council – January 9, 2017 Resolution #2017-05: Councilman McDonald moved, Councilman Campion seconded that the City Council award the bid for the General Obligation Bonds Series 2017A to the low bidder, FTN Financial Capital Markets out of Memphis, Tennessee. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: Thank you again Mr. Sticha and Mr. Anhut. So does this mean we won’t see you again the rest of the year, is that right? Nick Anhut: Not likely. Mayor Laufenburger: Okay, our loss. COUNCIL PRESENTATIONS. Mayor Laufenburger: Let’s move to next item on our agenda which is council presentations. Anybody have council presentations this evening? Councilwoman Ryan: Mr. Mayor? Mayor Laufenburger: Councilwoman Ryan yeah. Councilwoman Ryan: Not a presentation but would, and especially for those of you who are still watching might be good candidates for this. I just wanted to highlight again that we have commissioner openings coming up. I think it’s going to be in the Villager or has already been in the Villager. Is coming this next Thursday? Todd Gerhardt: This coming Thursday. rd Councilwoman Ryan: But the applications will be accepted through Friday, February 3 for the Planning Commission, Park and Recreation Commission, Environmental Commission and the Senior Commission so just want to encourage those out there that want to get involved in the city to apply and come interview and get involved where you can so I just wanted to highlight the application process. Mayor Laufenburger: Good point. Councilwoman Ryan: Is there anything online that they can do or is it all? Todd Gerhardt: Yes there’s. Councilwoman Ryan: Okay everything. Okay. 14 Chanhassen City Council – January 9, 2017 Todd Gerhardt: There is a description of each of the different commissions on our website and application form can be gained from there also. Councilwoman Ryan: Perfect, thank you. Mayor Laufenburger: Any other council presentations? Mr. McDonald. Councilman McDonald: Mr. Mayor. You had mentioned a little earlier about my involvement with SouthWest and also with the Suburban Transit Association. Today we gathered over at Marshall Road Station to do the initial inauguration of what we call the S2S rebirth. Suburb to Suburb and part of what we’ve done there is when we went back and looked at things we actually went back to communities and talked to employers and again to look at you know the movement of employees to their jobs and we found that the most interesting place was down in Scott County and Shakopee so we redid the route from Mall of America out to Shakopee. As part of that, what SouthWest has been looking at is the next connection to all of that and SouthWest has started a line that goes from Eden Prairie down to Shakopee and what this is for is to access the jobs that are in the area. Amazon, Shutterfly. There was a couple of other manufacturing, well Mystic Lake is another big one. Mayor Laufenburger: Seagate. Isn’t Seagate down there? Councilman McDonald: I’m not sure if Seagate’s moved down there or not but there was a few others but what we did, we went to these businesses and kind of worked in partnership with them and they’re helping with some of the transportation costs and also some of the shuttle cost of getting employees to their jobs. We’re going to take all of this and move up towards the north and the next stop will be SouthWest Transit and what SouthWest has been looking at for a number of years, we’ve talked to some of the employers here in Chanhassen about their ability to get people to work and before we always tried to look at a single approach of SouthWest doing all of this and it just isn’t possible across the entire 7 county metro area so we’ve started working cooperatively with Metro Council and all the other transit providers and now what we’re trying to do is to again get employees out here to help grow the community. To bring business to the communities so today was just the first step of doing that. So far it’s been very successful. The numbers just continue to go up and what it’s kind of taught us is that you do need to get business involved up front and as long as they’re onboard your chances of success go up accordingly. Mayor Laufenburger: Very good. Thank you Mr. McDonald. Anybody else? ADMINISTRATIVE PRESENTATIONS. Mayor Laufenburger: Mr. Gerhardt, any administrative presentations? Todd Gerhardt: Well I’d like to extend my congratulations to Councilmember Tjornhom and McDonald. I look forward to our training sessions and introducing you on how to be a council 15 Chanhassen City Council – January 9, 2017 member so I always appreciate it when we have new council members come on board and show them the ropes, like I did for Elise and Dan and maybe you can come up to their standards and run this council so. Mayor Laufenburger: It was a joke for a while until it starts getting serious. Councilman McDonald: When do we get the key to the City, that’s what I want to know. Todd Gerhardt: You have to talk to the Mayor about getting the Key to the City. Councilwoman Tjornhom: All I know is just a year ago Councilman McDonald finally realized he actually had a mailbox in city hall and I never actually officially had a tour of city hall so I think that there are some things to learn. Todd Gerhardt: Yes and we’ll show you where every park is in the community. Councilwoman Tjornhom: I’d appreciate that too. Todd Gerhardt: We can find those too. Councilwoman Tjornhom: A map would be good. Todd Gerhardt: But no, it’s always nice to have history and knowledge of how the City operates and so I wish you the best and thank you for your leadership these past several years and look forward to the next 4 years. Councilman McDonald: Thank you. Todd Gerhardt: That’s all I have. Mayor Laufenburger: And I’m looking forward to the humor that’s going to come from this council over the next 4 years too. Todd Gerhardt: Yeah. Mayor Laufenburger: Just on a serious note, Mr. Hoffman we have a festival coming up and it’s not too early to begin your plans and preparations for the annual Feb Fest fishing contest on Lake th Ann on Saturday, February 4. Fishing starts at what 1:00? Todd Hoffman: 1:00. Mayor Laufenburger: Yeah, registration at noon. Fishing starts at 1:00 and I know there’s a lunker just waiting out there on Lake Ann waiting to be caught. Of course there will be sleigh 16 Chanhassen City Council – January 9, 2017 rides and S’mores and Culver’s burgers will be there and it will be a fun event so I expect there may be a formal invitation coming at a later council meeting but get in early. And speaking especially to the Robelines down in Jordan because you’ve been coming to the Feb Fest for the last 30 years at least, right so. Alright. With that, CORRESPONDENCE DISCUSSION. None. Councilwoman Ryan moved, Councilman McDonald seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 7:45 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim 17