- MINUTES - CHASKA CITY COUNCIL August 7, 2017

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1 - MINUTES - CHASKA CITY COUNCIL 1. Call to Order The meeting was called to order by Mayor Windschitl at 7:00 pm. 2.Pledge of Allegiance 3. Roll Call Roll call was taken. Present: Councilmembers Boe, Geisler, Schulz, and Mayor Windschitl. Absent: Councilmember Rohe. Also Present: Matt Podhradsky, City Administrator; Nate Kabat, Assistant City Administrator; and, Luke Melchert, City Attorney. City Administrator Podhradsky introduced Administrative Intern Matthew Dufresne, who is doing an inventory of all the Park and Recreation facilities in the school district, Carver, and Chaska. This project will provide information to the City on how to start programming and maintain seamlessness between Carver and Chaska recreational communities. Mr. Dufresne greeted the Council. 4. Adopt the Agenda Motion by Councilmember Boe, second by Councilmember Schulz, to adopt the agenda as presented. 5. Visitor Presentation CDA Update Allison Streich Mayor Windschitl advised at the request of the presenter, this item will be rescheduled on a future agenda. 6. Minutes Motion by Councilmember Geisler, second by Councilmember Boe to approve the minutes of the July 31, 2017 City Council meeting. 7. Consent Agenda Motion by Councilmember Schulz, second by Councilmember Geisler to approve the Consent Agenda items a through b: A. Approve Memorandum of Understand for Community Cable Access Station Services Between the City of Carver and the City of Chaska Motion to approve Memorandum of Understanding for community cable access station services between the City of Carver and the City of Chaska B. Adopt Resolution No Approve Amendment to the Development Agreement with East Lake Townhouse Association Motion to adopt Resolution No , Approving Amendments to the Development Agreement with East Lake Townhouse Association

2 PAGE 2 8. Adopt Resolution No relating to Electric Utility Revenue Bonds, Series 2017A City Administrator Podhradsky introduced the item to the Council. In response to Mayor Windschitl, City Administrator Podhradsky explained the City still owns the substations and the way they are utilized will not change. However, this allows the City to take money from the entire system and use it towards improvements for transmission. It will show there is enough capacity across the overall system. Administrative Services Director Graczyk presented the item to the Council. Paul Steinman, Springsted, reported they actively took bids for $7,220,000 in electric revenue bonds. The winning bid was from UBS Financial Services at 2.78 percent. There was an additional $374,000 that came to the City because of insurance purchased by the underwriter, and it went into the construction fund. This insurance was purchased from Build America Mutual, which allowed this bond to be sold as a AA. He stated according to Moody s the City s rating is listed as A1, and then highlighted the City s credit strengths and challenges. City Administrator Podhradsky pointed out they do not have to go through the Public Utilities Commission, so they have complete control over their rates. Mayor Windschitl inquired why it showed their rates were higher than the State average. City Administrator Podhradsky commented their comparisons are done on residential rates and have always been significantly lower. Administrative Services Director Graczyk stated this was discussed with Moody s during the rating call. He explained the City s rates include a franchise fee and when compared to the Statewide average rates, they are about 9.3 percent higher than the State. However, a franchise fee is not included when they compare it to the other utilities, and there is a comment in the report that shows they explains this. City Administrator Podhradsky stated it is not a fair comparison and the reason they do it this way is because all Cities have different franchise fees. Councilmember Boe stated it makes it difficult to get a fair comparison. City Attorney Melchert commented he worked for a municipal investment banking firm in 1964 and municipal bonds were around three percent. He commented it was incredible how this turned out. Administrative Services Director Graczyk commented they were expecting around 3.2 percent. Councilmember Boe inquired why it came in so low.

3 PAGE 3 Mr. Steinman responded it is just a factor of the market, this sold as a AA bond, and it is an excellent rate. Councilmember Geisler commented bond rates seem to follow mortgage rates. Administrative Services Director Graczyk stated their original rating of A2 was with their 2011 Series, and as their credit quality has improved they have been upgraded to an A1, which was reaffirmed in this recent review. Motion by Councilmember Boe, second by Councilmember Schulz, to adopt Resolution No , relating to Electric Utility Revenue Bonds, Series 2017A; Authorizing the Issuance, Awarding the Sale, Fixing the Form and Details, Providing for the Execution and Delivery thereof, and security therefor. The Council agreed the rates were excellent and good for the citizens of Chaska as they move forward. 9. Accept City of Chaska 2016 Comprehensive Annual Financial Reports and Chaska Fire Department Relief Association 2016 Annual Financial Reports City Administrator Podhradsky introduced the item to the Council. Administrative Services Director Graczyk presented the 2016 Comprehensive Annual Financial Report and the 2016 Chaska Fire Department Relief Association Report (CFDRA) to the Council. He noted the audit report is available on the City s website, at the Chaska Library, or at City Hall, and a summary has been published in the Chaska Herald. A Management Report and Special Purpose Audit Report have also been provided as part of the audit and all the reports have been submitted to the State Auditor s office. Bill Lauer, Principal with the audit firm Malloy, Montague, Karnowski, Radosevich, and Co., P.A. (MMKR), reported on the findings of the 2016 year-end audit for the City and the CFDRA. The City received an unmodified clean opinion, and there were no findings regarding internal controls or compliance. With Minnesota Legal Compliance, they did have one disbursement not paid within 35 days. Mayor Windschitl pointed out an unmodified clean opinion is the highest they can receive. Mr. Lauer highlighted the changes in fund balances between 2015 and 2016, and reported at the end of 2016, the City s General Fund balance was $2,540,000. He pointed out revenues were down about $830,000 in 2016 due to a one-time windfall in 2015 for some decertified tax increment districts. He also highlighted the changes in net position with the Enterprise funds. City Administrator Podhradsky explained revenue for the Ryder Cup was collected multiple years leading up to the event, but the expenses all took place in 2016.

4 PAGE 4 Administrative Services Director Graczyk highlighted the importance of the Certificate of Achievement for Excellence in Financial Reporting that Chaska received for the past 27 years, and explained it is a big deal to rating agencies. He thanked City staff involved with this report. Motion by Councilmember Boe, second by Councilmember Geisler, to accept City of Chaska 2016 Comprehensive Annual Financial Reports and Chaska Fire Department Relief Association 2016 Annual Financial Reports. The Council expressed appreciation for the work that was done by staff on this report and stated it shows Chaska residents they really care about how each dollar is spent. 10. Bills Councilmember Boe referred to page 461 of the meeting packet, and inquired about a monthly retaining fee to Energy Management Solutions. City Administrator Podhradsky responded Energy Management Solutions is the company that manages the one and a half percent of their electric revenues that must go towards conservation improvement programs. Mayor Windschitl referred to a charge for Bredeson, and inquired if the City is fixing up the bathrooms at Lions Park. City Administrator Podhradsky responded they are doing work at the park, and the charge referred to by Mayor Windschitl is for general maintenance that the City is taking care of. Councilmember Geisler referred to page 465 of the meeting packet, and inquired about a $1,000 charge to the League of Minnesota Cities. City Administrator Podhradsky responded he will look into it. Motion was made by Councilmember Geisler, second by Councilmember Schulz to approve bills, with a pending clarification from the City Administrator on page 465 to the League of Minnesota Cities. Roll call was taken. Voting aye: Councilmembers Geisler, Boe, Schulz, and Mayor Windschitl. Voting nay: None 11. Other Business A. City Administrator s Bi-Weekly Report received B. Financial Reports Year to Day Ending June 30, 2017 C. Chaska High School Thank You Letter

5 PAGE 5 Councilmember Geisler Announced Bark in the Park will take place on Wednesday, August 9 at 6:00 pm. Announced Touch-A-Truck will take place on August 17 at 5:00 pm at the Community Center. Reminded everyone there are still bands playing at Fireman s Park and City Square Park, and the schedule is available on the website. Councilmember Boe Commented he attended MMPA Annual Meeting and learned they will not be moving forward with the power plant on the east side of Chaska. Commented he attended the ribbon cutting at the Southwest Christian High School expansion project with Mayor Windschitl and Councilmember Geisler. Commented a lot of work is being done at the corner of County Road 10 and Clover Ridge Drive. City Administrator Podhradsky explained the base of the road will go in this year and the final touches will be completed next spring. He is unsure exactly when Hy-Vee will be completed, but thought they hoped to open by Requested an update on the fitness center portion of the Community Center and City Square West. City Administrator Podhradsky responded they are focusing on three things with the fitness center update: 1) Flooring will be rubberized instead of carpet; 2) Life Fitness equipment at the front and some cable equipment will be replaced; and, 3) Updated technology with monitors at each piece of equipment with more channel options. They hope to have it completed by January 1, At City Square West, they have sent out a RFP to take them through a task force process to determine what needs to be included. They will do survey work, soil borings, and environmental work so they know exactly what needs to be done. They will need to appoint a Task Force for that project, and will present a recommended list of who should be included to the Council. They hope to have this done and a concrete plan by May 1, Construction will depend on what funding options are available. They are also way behind on the Municipal Service Building. The current building is not designed well, not customer friendly, and they have run out of space, even after moving the IT department out to another location. Announced Farmer s Market will take place on Wednesday from 10:00 am to 1:00 pm in the Government Center parking lot and from 3:00 p.m. to 7:00 p.m. in City Square Park. Councilmember Schulz Commented Fire and Ice Bonspiel was a great event and there were people in the park all day long. He thanked everyone involved with the event. The bag given to curlers was a hit and people were playing games all over the park. Councilmember Geisler commented the fireworks and the bagpipers were spectacular. Assistant City Administrator Kabat Announced Second Street is open to traffic and the streetscape will continue to be worked on. City Administrator Podhradsky pointed out a difference was that the

6 PAGE 6 intersection at Second Street was already done, but on the west side, they had to completely rebuild the one at Pine Street. Announced at the request of the business owners, the Second Street will be closed and there will be a Block Party on September 23rd from 10:00 am to 5:00 pm. There will be a kid s donut run, yoga with mimosas, bounce houses, carriage rides, music, art walk contest, face painting, Lions drink tent, and the Tuxedo Band. They are encouraging businesses from other streets and vendors from the Farmer s Market to set up booths in the parking spots. Mayor Windschitl Announced Flags of Honor will have a car show in City Square Park on Saturday, August 12 from 10:00 am to 2:00 pm with awards at 2:30 pm. Cost is $ Announced Willy McCoy s opened on August 6 and he has heard good comments. Commented the City received a thank you letter from Chaska baseball for allowing them to continue to play at Athletic Park. Apologized for not having last week s City Council meeting recorded. There was a scheduling issue and it was not a regular night for a Council meeting. Announced they presented Addie Anderson with a Certificate of Appreciation for her work in organizing the removal of graffiti from the Hundertmark tunnel. Commented they are saving a lot of time and expense by using the ipads instead of distributing paper copies. Announced Councilmember Rohe s birthday is on August 11 and Councilmember Geisler s is on August 15. Announced the next Council meeting will be on August 21, with a work session before at 5:30 pm. The September meetings will take place on the 11 th and the 18 th because of Labor Day. 12. Adjourn Motion by Councilmember Schulz, second by Councilmember Boe to adjourn the meeting at 8:22 pm.