WS 2017 06 12
CHANHASSEN CITY COUNCIL
WORK SESSION
JUNE 12, 2017
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, Kate Aanenson, Todd
Hoffman and Greg Sticha
Paul Oehme and Todd Gerhardt provided an update on the storm damage from the weekend
storm. Councilwoman Ryan asked how the City handles pick up of fallen trees. Todd Hoffman
stated 20 trees were lost on city park property.
KEY FINANCIAL STRATEGY: PAVEMENT MANAGEMENT PROGRAM – UPDATE
ON CHANHASSEN’S CURRENT PAVEMENT MANAGEMENT PROGRAM
INCLUDING CURRENT POLICIES, PROCEDURES, AND UPCOMING PROJECTS.
IN ADDITION STAFF WILL RESEARCH ALTERNATIVE FUNDING SOURCES,
INCLUDING THE IMPLEMENTATION OF A FRANCHISE FEE TO FUND FUTURE
PROJECTS.
Todd Gerhardt provided background information on the City’s motto of providing for today and
planning for tomorrow as it relates to streets, trails and parking lots. Paul Oehme reviewed the
local street program which uses an Overall Condition Index (OCI) to rate the condition of streets,
trails and parking lots. He reviewed what the City has currently invested in the pavement system
and discussed what needs to be done to ensure that current funding is adequate to maintain that
investment before showing a map of the 5 year local road CIP and how streets are chosen
annually for improvements using field surveys, reports and analysis. Mayor Laufenburger asked
about the life expectancy for streets and utilities that have been improved. Paul Oehme showed
a graph depicting the historic average OCI from 2005 through 2017 stating staff would like to
keep streets around the 72 OCI level and discussed a graph comparing sealcoat through
reconstruction costs and the number of miles built since the 1970’s by decade. In the next 20
years the City will be focusing on streets built in the 1980’s and 1990’s. He reviewed scenarios
to increase funding to maintain an average OCI of 68 for the next 20 years. Mayor Laufenburger
asked about using other road products such as concrete. Paul Oehme discussed the high costs
associated with using concrete before continuing a discussion of trails and parking lot OCI
numbers throughout the city and possible scenarios for funding those future improvements. Greg
Sticha discussed the assumptions used by staff to determine scenarios for investing additional
money into the Revolving Assessment Fund. Mayor Laufenburger asked how these scenarios
affect taxpayers. Greg Sticha explained how the use of franchise fees can help to offset the cost
increases needed for future funding needs. Councilwoman Tjornhom asked the use of gas tax
City Council Work Session – June 12, 2017
money. Greg Sticha discussed how the City has used annual surplus money in the past to keep
the Revolving Assessment Fund afloat. Todd Gerhardt stated staff would recommend Scenario
#4 which would implement a percentage based franchise fee of approximately 4.4 percent or
Scenario #5 which uses a flat/fixed based franchise fee of approximately $4.25 for residential gas
and electric customers. Nick Anhut with Ehlers and Associates explained how franchise fees
from utility companies are currently used and how those fees can be used with the Revolving
Assessment Fund. He discussed the number of surrounding communities that have begun using
franchise fees before reviewing a sample fee revenue chart showing his Scenario A and Scenario
B. Councilman Campion asked for clarification on how Avienda would impact these scenarios.
Todd Gerhardt explained that staff will schedule additional meetings to begin the process of
considering the implementation of a Gas and Electric Utility franchise fee. Mayor Laufenburger
clarified that the review process will continue over the summer before a decision will be made
and what the council can do prior to the next time this item is scheduled on a work session.
The work session was recessed at 7:05 p.m. It was reconvened at 7:50 p.m.
PAISLEY PARK MUSEUM SIX MONTH UPDATE.
Kate Aanenson presented the update on the Paisley Park Museum noting that striping on
Audubon Road and the bus circulation plan has been completed. Paul Oehme reviewed
information from the SRF traffic analysis for pre and post vehicle and pedestrian numbers which
indicate acceptable levels. Kate Aanenson reviewed the landscaping plan which has been
submitted but not yet planted. Paul Oehme explained that Audubon Road will be sealcoated and
restriped this summer. Law enforcement indicated they are not seeing negative impacts
associated with the site. Kate Aanenson provided updates from the building department and fire
department regarding seating capacity, and the status of the temporary permit for the tent.
Councilman McDonald asked staff to pass along his congratulations on a job well done. Mayor
Laufenburger asked about the no parking restrictions on McGlynn Drive, if Paisley Park
management has discussed adding more parking on site, hours of operation, if they have asked
for a permit to sell alcohol, and the possibility of directional signage on Highway 5 and/or 212.
After discussion it was the consensus of council members that there was not a need for a 12
month review.
In continuing the discussion of the pavement management program Councilman Campion asked
about the question of receiving franchise fees from small wireless carriers. Mayor Laufenburger
asked staff to provide information on the impact to taxpayers for the recommended two options.
Mayor Laufenburger adjourned the work session meeting at 8:15 p.m.
Submitted by Todd Gerhardt
City Manager Prepared by Nann Opheim
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