CC WS 2017 11 13
CHANHASSEN CITY COUNCIL
WORK SESSION
NOVEMBER 13, 2017
Mayor Laufenburger called the work session to order at 5:32 p.m.
COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilwoman Tjornhom,
Councilman McDonald, Councilwoman Ryan.
COUNCIL MEMBERS ABSENT: Councilman Campion
STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Kate Aanenson, Paul Oehme, and Greg
Sticha
REVIEW ANNUAL RATE STUDY.
Greg Sticha asked that council consider raising the base water and sewer utility fees before
introducing Jessica Cook with Ehlers and Associates who reviewed highlights of the 2018 utility
rate study and the key assumptions used including growth, city operating costs and capital cost
inflation. Councilwoman Ryan asked for clarification of what is driving working capital cost
estimates. Jessica Cook continued with discussion of the water CIP, options for 2018 water rate
structure changes, and water bill comparisons to key financial strategy cities before asking
council to comment on increasing base fees and/or usage fees. Councilwoman Tjornhom asked
for clarification of the impact on the average homeowner if the rates are increased into the future.
Councilwoman Ryan asked how staff came up with their proposed numbers for the base fees and
the user fees. Councilman McDonald asked for clarification of what is included in fixed costs.
Mayor Laufenburger asked for clarification on the effects to a minimum user. Jessica Cook
continued discussing highlights from the water hook-up fees, sanitary sewer, Met Council
disposal charge increases, sanitary sewer CIP projects, current rate structure for sanitary sewer
rates, proposed rate structure change options, comparison chart with key financial strategy cities,
and discussed the effect on the average customer for all proposed utility increases. In discussing
water rates Councilwoman Ryan stated support for option 1 for the long term. Councilman
McDonald expressed concern with the impact for low income residents, voiced support for
annual increases and not increasing the base amount. Mayor Laufenburger suggested Ehlers
make a model increasing the base rate with larger increases to high tier users versus low tier
users. Councilwoman Tjornhom stated she would not support an increase to the base fee and
would support the mayor’s suggestion. In discussing sewer rates Councilwoman Tjornhom
voiced support for staff’s proposal of increasing the base fee. Councilman McDonald voiced
support for increasing the base rate. Councilwoman Ryan asked about waiting until the Met
Council comes out with their increase to the city. Mayor Laufenburger voiced support for
increasing the base amount to $30 for 2018.
City Council Work Session – November 13, 2017
REVIEW SPECIAL REVENUE FUND BUDGETS AND ENTERPRISE FUND
BUDGETS.
Greg Sticha discussed the Enterprise Funds for water, sewer, and surface water management, and
special revenue funds which includes the charitable gambling fund, cable TV fund and cemetery
fund.
DISTRIBUTE CITY MANAGER’S WORK PLAN AND DISCUSS SCHEDULE FOR
PERFORMANCE EVALUATION.
Todd Gerhardt noted council has received his work plan and schedule and that Councilman
McDonald had volunteered to tabulate the results.
Mayor Laufenburger adjourned the work session at 7:00 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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