CC WS 2018 10 22
CHANHASSEN CITY COUNCIL
WORK SESSION
OCTOBER 22, 2018
Mayor Laufenburger called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilwoman Tjornhom,
Councilman McDonald, Councilwoman Ryan, and Councilman Campion
STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Kate Aanenson, MacKenzie Walters,
Paul Oehme, Todd Hoffman, Roger Knutson, and Greg Sticha
PUBLIC PRESENT:
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Jake Parenteau 601 West 61 Street
Bob Ayotte 6213 Cascade Pass
REVIEW FRANCHISE FEE. FUNDING SCENARIOS.
Greg Sticha reviewed background information on objectives trying to be achieved before
presenting three options for City Council for their consideration. He stated staff is
recommending using a dollar amount of $1.9 million with 58/42 split for residential/commercial
before explaining the expectations of the utility companies wanting to use fixed franchises fees.
Councilman McDonald asked for an example of who the large commercial utility users would
be. Michelle Swanson with Xcel Energy stated they would like to see a smaller number being
collected by the City through franchise fees and would favor flat fees across the board for
residential and commercial. Councilwoman Ryan asked about revenue amounts utility
companies have seen in the past. Councilman McDonald stated he would favor the idea of a cap
on a monthly basis. Todd Gerhardt explained the impacts on the city with the current percentage
of 17 percent commercial and 83 percent residential. Mayor Laufenburger asked Michelle
Swanson for clarification on commercial utility usage. Michelle Swanson with Xcel Energy and
Jake Parenteau with CenterPoint Energy agreed that usage is all over the board. Councilman
Campion expressed possible support for levying the $1.9 million as opposed to the use of
franchise fees, noting that residential will be impacted more than commercial. Mayor
Laufenburger asked for clarification of what was included in letters submitted by Xcel Energy
and CenterPoint Energy and the use of fixed fees versus percentage of usage fees. Jim
Strommen explained the issues associated with achieving an equitable solution for residential
and commercial using fixed fees versus percentage of usage fees. Greg Sticha noted that
Minnesota Valley did not wish to comment at this time. Councilwoman Ryan asked if staff has
considered using franchise fees for a shorter period of time, requesting a smaller dollar amount
$3.3 million dollars a year for road projects. Mayor
Laufenburger asked Jim Strommen to comment on the length of most franchise fee contracts and
the possibility of the council doing an annual review and/or change of fees. Todd Gerhardt
City Council Work Session October 22, 2018
explained that the City needs to do a tax rate analysis of surrounding communities. Councilman
Campion asked about setting a lower PCI goal for roads into the future. Mayor Laufenburger
asked staff to explore surrounding and KFS cities that are charging franchise fees, and what
percent of their general fund budget is being collected through a franchise fee. Councilwoman
Tjornhom asked staff about not charging franchise fees and increasing the levy and the impact on
commercial and mixed businesses. Michelle Swanson explained that the City of Chanhassen
proposed franchise fees for the large commercial users would be the highest in the state. Todd
Gerhardt suggested capping the amount charged for large commercial and having small and
medium commercial users absorb the difference. Councilwoman Ryan reiterated looking at a
smaller dollar amount and how it affects the number of road projects. Mayor Laufenburger
asked if council was comfortable using $1.7 million as opposed to $1.9 million in relation to the
PCI index before asking that this item be brought back to council yet this year. Councilman
McDonald stated he could support the 70 PCI as a practical number. Councilwoman Tjornhom
stated she could support 70 PCI. Councilwoman Ryan stated she was fine with the 70 PCI but
her problem was planning for long term versus short term. Councilman Campion stated he could
support a lower PCI number than 70, maybe 66. Mayor Laufenburger stated his support for 70
PCI.
MENTAL HEALTH EDUCATION DISCUSSION.
Todd Gerhardt presented information on what other cities are doing regarding mental health
issues and education. Chelsea Petersen provided a list of groups and agencies in and around
Carver County and their websites before explaining
health related calls. Councilwoman Ryan asked about the relationship between the City of
Chanhassen and these organizations. Mayor Laufenburger offered his observation after visiting
the websites that a lot of people in the city are not aware of these organizations. Councilwoman
Tjornhom discussed challenges in Scott County where she works with reaching out to the
proposed agencies and affected people in the community. Councilwoman Ryan clarified that this
item is before the council because of the tragic incident that occurred with Archer Amorosi and
what the council needs to do moving forward to address this issue. Her experience is there
seems to be the need for a coalition and expressed that she would be willing to be involved with
such a coalition. Mayor Laufenburger explained that council members individually can get
involved in whatever organization or cause but the questioned if the City Council as a whole
should get involved. He asked the City Attorney Roger Knutson about statutes related to
establishing a mental health commission. Roger Knutson explained that the City Council can
form a commission and fund it as needed. Councilman McDonald discussed his experience of
dealing with people with mental health issues. Councilman Campion asked to learn more about
these agencies.
Mayor Laufenburger adjourned the work session at 7:10 p.m.
Submitted by Todd Gerhardt
City Manager Prepared by Nann Opheim
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