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HomeMy WebLinkAbout5.B. Approval of Minutes of November 14, 2005, November 29, 2005 and December 5, 2005 OFFICIAL PROCEEDINGS OF THE CITY COUNCil.- ADI REGULAR SESSION SHAKOPEE,NITNNESOTA NOVEMBER 14, 2005 Mayor John Schmitt called the meeting to order at 6:30 p.m. with Council members Joe. Helkamp, Terry Joos, Steve Menden and Matt Lehman present. Also present were Mark McNeill, City Administrator; Judith S. Cox, City Clerk; R. Michael Leek, Community Development Director; Mark Themig, Parks, Recreation & Facilities Director; and Bruce Loney, Public Works Director / City Engineer; (6:41pm). The purpose of the meeting was to meet with the Environmental Advisory Commission, (EAC), the Park and Recreation Advisory Board (pRAB) and the Planning Commission. Judith S. Cox, City Clerk; noted the roll. Mark Themig, Parks, Recreation and Facilities Director, addressed the Council. He stated that he would be presenting to Council the work that the EAC had completed to date on establishing the City's Natural Resource Corridors (Greenway Corridors) in Shakopee and adjacent northwestern Scott County. He proceeded to introduce Ryan Hughes, Natural Resource Specialist, Carol Sersland from CR Planning and Jean Coleman from CR Planning. Mr. Themig stated that the City's Comprehensive Plan Update was approved by the City Council and submitted to the Met Council. The Comp Plan Update included a Natural Resources section. The EAC had been working on the City's comprehensive plan update to include goals and general policies that attempt to protect environmentally sensitive areas such as natural drainage systems, natural habitat, wetlands, woodlands and steep slopes. Since the term Greenway Corridors was established in 2004, there had been discussions with the EAC, Scott County Staff, City staff, consultants and residents. Mr. Themig proposed that the terminology be changed from Greenway Corridors to Natural Resource Corridors to provide a positive approach to the initiative. Mr. Themig showed Council a map that was prepared in 2001 showing the inventory of natural resources in northern Scott County to include Shakopee, Jackson Township and Louisville Township based on the Minnesota Land Cover Classification System that was completed by the City. Since then, staff identified significant areas: along the river, Prior Lake/Spring Lake channel outlet area, Dean Lake, Lake Q'Dowd and the bluff line that extends into Jackson and Louisville Townships. Jean Coleman from CR Planning, a consultant working with the Department of Natural . Resources, addressed the Council. She stated that the DNR received a grant from the Bush Foundation about a year ago to do case studies with three communities to determine how natural resource information is being used in land use decision making. The team Official Proceedings ofthe November 14, 2005 Shakopee City Council Page -2- consisted of the DNR, Met Council, the consultants and the three local governments. . One goal of the project was to evaluate regional growth and how growth was occurring in areas with significant natural resources. Of the three pilot projects, Shakopee was the most progressive and achieved most. Based on the experiences with the three communities, it is the intent of the DNR to prepare and, through the Met Council, distribute a handbook to communities who are preparing to update their comp plans for the 2008 required update. Ryan Hughes, Natural Resources Specialist, outlined the procedure staff used for creation ofthe refined map. Staff had first developed a Natural Resource Prioritization Matrix to evaluate the available data. The Natural Resources plan was utilized to guide City staff, the EAG and the consultant to determine the sensitive natural features within the City of Shakopee. These included: slopes, lakes and streams, endangered species, woodland/forested areas, non-woody upland vegetation, wetlands, recreation opportunities, infrastructure/accessibility and wildlife. The prioritization matrix was utilized to breakdown the nine sensitive areas even further. A numeric value was assigned for each natural feature. Mr. Hughes presented the matrix to Council and reviewed the value for each area. He explained that the highest score possible would have been 27 but the highest score within the City of Shakopee was 21. Carol Sersland, CR Planning, stated that she had used the natural resource inventory extensively to create the map model. Ms. Sersland added that the inventory was a great investment for the City. of S hakopee since it had the potential for many uses. The lakes and wetland conversations with the EAC included lake shore discussions of varying levels of quality. Ms Sersland used a 300' buffer around lake shore/wetlands to determi{le the placing of each natural resource into the best category. She added that natural vegetation areas were placed in the "best" category; the maintained, non-native were placed in the "better" category; the developed, artificial. areas would be in the "good" category. Mr. Themig noted that future discussions should include how important it is to protect some of the high quality areas in the City of Shakopee. There are significant ecological areas on the northern side.ofthe City but for the most part the City had been developed. Mr. Hughes added that since there are very few high quality areas in the City of Shakopee, the areas that had been identified as being high quality are even more important. Many of the areas in the city are buffers around parks which are essentially fully developed. The areas of most importance are around the southern part of the City especially around the Dean Lake area. Mr. Themig outlined the proposed plan as to how the Natural Resources Corridor will be implemented. One approach would be pre-development; develop a set of natural Official Proceedings of the November 14, 2005 Shako pee City Council Page -3- resource design standards similar to what the Council had adopted for engineering. Mr. Themig's team would like. Council to approve a similar type set of standards for Natural Resources. The suggested work plan would be to integrate existing practices. There currently is a shoreline criteria that the City had adopted as a management ordinance, Scott County's watershed rules have specific criteria. Mr. Themig's staff will then combine existing criteria and place it in a single document. Staff would then fill in places where there could be gaps. The second approach would be post development which would be more difficult and most likely a voluntary program though protective easements, property restorations or land trusts. Pre-development costs should be borne by the developer. Southbridge was an excellent example where there were significant natural resources. As the City's developments move towards the bluffs and other woodlands, it should be part of the development process as well. There is a tangible value in protecting the Natural Resource Corridors. There are greenway grants available as well as other sources of money that would cover some of the post development costs. Mr. Themig then discussed future action to be taken. These actions include: meeting with Jackson and Louisville Townships, bring a plan before Council to adopt to replace the Concept Greenway Corridor with the Natural Resource Corridor Suitability Map, bring a plan before Council to authorize implementing the tools discussed and preparation ofthe design standards manual, continue collaboration with Jackson and Louisville Townships, Scott County, SMSC, Prior Lake/Spring Lake Watershed District, Lower Minnesota River Watershed District, Scott County SWCD, Met Council and the DNR. Mr; Themig then asked for feedback from Council. Cnd. Lehman asked about the park dedication credit. Mr. Themig answered that if the PRAB says if it serves a recreational purpose/function, it would consider on a case-by- case basis for a park dedication credit. Mr. Themig answered questions from council members. R. Michael Leek, Community Development Director, reminded Council that most of what they had seen presented by Mr. Themig and his staff could be found in the Comprehensive Plan Update that is currently in front of Met Council. The additional plan unveiled by Mr. Themig at the meeting didn't change any of that. Official Proceedings of the November 14, 2005 Shakopee City Council Page -4- After discussion, Joos/Helkamp moved to recess for 15 minutes. Motion carried 5-0 and the meeting was recessed at 7:45 p.m. Mayor Schmitt reconvened the meeting at 7:55 p.m. Mark McNeill, City Administrator, introduced the next item on the agenda, the Draft Recommendations of Strategic Visioning Initiative and turned the presentation over to Duane (Farmer) Marschall of the Steering Committee. Mr. Marschall approached the podium and read the names of the members of the Strategic Visioning Steering Committee who were as follows: Phil Burke, Jane DuBois, Kathy Gerlach, Marge Henderson, Terry Joos, Wayne Herstad, Charley Kubler, Joan Lynch, Bob Mitchell, Bill Nevin, Paulette Rislund, Carol Schultz, Arv Somberger, Tom Steininger and Don Wagner. Mr. Marschall continued by reminding Council ofthe mission statement which was adopted by the Council on April 19, 2004. "The mission of the City of Shako pee is to provide the opportunity to live, work and play in a community with a proud past, a promising future and small town atmosphere within a metropolitan setting. The City will provide customer friendly, high quality public services that are intended to meet the changing needs of its residents and community at large." Cncl. Joos outlined how the Visioning Steering Committee had its start. Since June 2004, hundreds of Shakopee residents had participated in the Strategic Visioning Initiative, guided by the Council-appointed Steering Committee and facilitated by consultant, Anne Carroll. Other the past several months, input had been received at dozens of community conversations, community events and surveys. This data was then further detailed and prioritized. From this broad perspective a draft Vision Statement was developed. Goals and strategies were then identified and, when adopted in final for~ will guide the City as its course is charted into the future. The purpose of the meeting is to hear the initial presentation and gather input. The Steering Committee served as stewards for the process to ensure broad participation. Members of the steering committee approached the podium to discuss the visioning statement. The statement included the point that in twenty (20) years from now Shakopee will be known and valued as a unique City. Cncl. Joos summarized the presentation given by members of the Steering Committee. He then continued to recap how the committee used all the comments that were gathered from residents at community conversations. The comments were condensed into the vision statement read by Don Wagner and Kathy Gerlach. From the comments received, a structure was shaped to identify the goals, strategies and tactics. Official Proceedings of the November 14,2005 Shakopee City Council Page -5- Cncl. Joos stated that there were five core goals identified by the Steering Committee. These goals are: active and healthy community; high quality of life; vibrant, resilient and stable; financially strong; and a great place for kids to grow up. These goals are not listed in a particular order since it is the Committee's position that all are equally important. Bob Mitchell addressed Council. The goal examined at this evening's meeting was that Shakopee is a great place for kids to grow up. The reason it was chosen is because the . children are goingto be living the vision as it had been set up and will also be shaping the future. The two strategies that will be used to ensure the goal that Shakopee will be a great place for kids to grow up and the tactics recommended to carry out that strategy are fostering community connections and strengthen the small-town feel. Strengthening the small- town feel was prevalent throughout the meetings with Committee members and the Steering Committee itself. The list of tactics identified by the Committee in listening to the community is not all inclusive. As proceeding through the next twenty years is the expectation that some of the strategies as well as tactics will vary. One of the first tactics recommended is that the Steering Committee increase citizen participation in community events and processes. A second tactic is to foster community participation through articles in the newspaper, city and county web sites, cable access programs and posters. Another tactic would be to support more neighborhood and community events. The Steering Committee would like to continue to create community gathering places. As Shakopee continues to grow and develop, planned community gathering places need to be considered and incorporated into the development. The next tactic would be to serve increased recreational programs to diverse people. The Steering Committee recommended that Council formally adopt their vision statement, formally adopt the goals and strategies and work with staff and community to begin implementation and routinely monitor, evaluate and change to meet the needs to the community. The Steering Committee then asked for questions or comments. Discussion followed. Marge Henderson spoke of a new law being adopted by legislature that pertains to economic development not being able to take people's homes for that use. Bill Anderson asked about implementation in the future. He asked if it would be something that city departments and council will look at; will everybody be on the same page. He added that when at the tactic level there could be various interpretations and how and who will keep the strategies and tactics moving along. Cncl. Joos answered that Official Proceedings of the November 14, 2005 Shakopee City Council Page -6- the implementation issues will have to be worked out. There are now goals and strategies that can be fostered. It doesn't necessarily have to cost money. Jane DuBois stated that this isa very exciting opportunity for the Cityto grow. Ms. DuBois added that nobody should be frightful that their property rights would be usurped . through an eminent domain situation. She noted that eminent domain was the furthest thought from her mind. Cncl. Joos noted that eminent domain was the furthest thought from his mind as well. Cncl. Menden asked the Committee when Council would be able to see the entire list of strategies and tactics. The list will be available at the end of the month. Mr. Jay Whiting stated that there was a lot of time and thought that has gone into this and he hoped that something comes of it and that it is not just received and filed. Mayor Schmitt noted that there are some things already in motion: the city is pursuing the purchase of Quarry Lake, the City has a treasure in Becky's Quilt Shop and the recent installation of the community built playground in Huber Park. He thanked everyone for their work on the visioning process and for their attendance at the meeting. Cncl. Menden noted that he is supportive of staff and the direction they had taken with the Natural Resources Corridor plan. Cncl. Lehman stated that he liked what he saw presented and requested that staff prepare a list of what is new and what we have now. Menden/Helkamp motioned to direct staff to continue moving forward with the plan for the Natural Resource Corridor. Motion carried 5-0. Cncl. Joos thanked Anne Carroll for her leadership and guidance to the Visioning Steering Committee. Anne Carroll thanked everyone and stated that the process was fun, exciting and interesting and that she has not worked with a group of people who were any more committed than those who worked on this visioning process, She enjoyed it. Mr. Bill Anderson recommended that every Board and Commission member get a copy ofthe Shakopee Visioning Initiative as they plan their goals. Those present, representing various Boards and Commissions, approached the podium and introduced themselves and identified which Board or Commission they were on. Official Proceedings of the November 14,2004 Shakopee City Council Page -7- LehmanlMenden moved to adjourn the meeting to 7:00 p.m, on Tuesday, November 15, 2005. Motion carried. 5-0. Then meeting ended at 9:12 p.m. ~j.~ J.bdith S. Cox . City Clerk Andrea Bortness Recording Secretary OFFICIAL PROCEEDINGS OF THE CITY COUNCIL SPECIAL SESSION SHAKOPEE,NUNNESOTA NOVEMBER 29,2005 Mayor John Schmitt called the meeting to order at 6:33 p.m. with Council members Joe Helkamp, Terry Joos, Steve Menden and Matt Lehman present. Also present were Mark McNeill, City Administrator; Judith S. Cox, City Clerk; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/City Engineer; Mark Themig, Parks, Recreation & Facilities Director, Gregg V oxland, Finance Director; Dan Hughes, Police Chief and Ed Schwaesdall, Fire Chief. Mayor Schmitt asked for a vote to approve the Consent Agenda as presented. Motion carried 5- O. Motioned to authorize the purchase of two utility trucks from Elk River Ford in the amount of $55,112.60 in accordance with Minnesota State Cab, Chassis contract #435320. (Motion carried under the Consent Agenda.) Mark McNeill requested the opportunity to speak to Council to get some debate/direction for a school site which is imminent for the School Board to make a decision. R. Michael Leek addressed the Council. He stated that there are a lot of projects underway and additional projects are coming our way that will add to the workload. Mr. Leek is seeking direction from the Council, a sense of priorities for areas of Shakopee that should develop first. Mr. Leek outlined some of the projects the City's Community Development team foresees. - Environmental Reviews: Tier 1 TH41 River Crossing EIS, CR21 EIS, the Bluffs at Marystown and Jackson Township AUAU - Comprehensive Planning: Comprehensive Plan Update, 2008 Comprehensive Plan - Shakopee Mdewakanton Sioux Community (SMSC) Issues: pending trust application, possible additional trust applications, the impact of SMSC land ownership or trust land status - BA TC/BAM Lawsuit and mediation - Comprehensive Plan update - City Code Revisions: Chapter 11 Zoning and Chapter 12 Subdivision Regulations - Transit - Annexation: Jackson Township and Louisville Township - Staging plan Mr. Leek went on to speak about the increase of day-to-day activities from 2003 to date. Mark Themig approached the podium and outlined his work plan which was put together for the next year. Mr. Themig added that Bruce Loney had prepared a map and had included Park projects on that map. Official Proceedings of the November 29, 200S Shakopee City Council Page -2- Bruce Loney noted that he had included the map in the packet to give Council a sense of the amount of activity, Mr. Loney reviewed the details of the map with Council. He added that a number of the projects are included in the CIP. Mr. Loney stated that there are some projects that can be delayed but there are others that the City is committed to and went on to discuss the projects that the Public Works Department is currently working on. R. Michael Leek continued to discuss the workload being experienced by the Community Development staff. Some of the items include: building permit review, produce agendas for the ever-growing number of commissions, respond to citizen requests, continue to provide over-site of transit operations and participation in partnerships plus the obligation to prepare regular reports for the Met Council. Mr. Leek presented a map to Council showing potential school sites and how developing the sites relate to workload issues. Mr. Leek reminded Council that previously they had talked about development in three distinct areas of the City: East Shakopee, South Shakopee and West Shakopee (Jackson Township). Mr, Leek asked Council which area (or areas) of the City or which projects they would like to focus staff resources on in 2006. He also asked for direction on which currently programmed projects should be removed from the current programming to acconimodate projects that the Council may have identified. Cnd. Joos requested that Mr. Leek show exactly where the alignments of Jackson and Louisville Townships are. CncL Lehman clarified that Jackson Township is on the west side. Cncl. Lehman is concerned that Council doesn't know at this point what will happen with the river crossing. Cnd. Lehman added that there is a MnDOT open house on December 7th. He commented that by Council doing anything early they could potentially be making it more difficult. Mr. Leek answered that he is absolutely right. He noted that the City's website contains a link toMnDOT for information concerning the open house. Mark McNeill remarked that each Division Director had done a goodjob laying out their work. He noted that.the department heads are not trying to impress council with the amount of the workload; and, even if no other project is added, it would still be a fullload. Mr. McNeill is concerned that 2006 is unique in that there is a September 2007 drop dead date for the opening of a new school. If the D. R. Horton proposed subdivision moves forward, which includes a site for a new school, and if staff is trying to make the 2007 school opening deadline, Council will have to accept the fact that there will be inconsistencies with work they have seen being completed in the past. He continued to state that last year Council had set management of growth as staff s number one goal. Mr. McNeill added that, if all the items outlined by Messrs. Leek, Loney and Official Proceedings of the November 29,2005 Shakopee City Council Page -3- Themig are going to happen and when the inevitable problems arise, staff will be pinched for time. Cnc1. Menden stated that he doesn't foresee September 2007 as a feasible or practical date for the school opening. He noted that the City would be pushed very hard to abide by that date and would be the one with the black eye if that date doesn't come to fruition; there are too many variables. .- Cncl. Lehman agreed with Cncl. Menden's statement. He reminded Council that they had already discussed that the City couldn't work with that timeline. Cncl. Joos and Mayor Schmitt asked for SPUC's position on both potential school properties. Mayor Schmitt added that he is not promoting either property but wishes to understand both properties and the risks and issues involved with both. Cnc1. Joos stated that he attended the SPUC meeting; he requested that a SPUC member spealc Brian McGowan, SPUC, discussed potential school sites. He indicated that there is not a preference on the priority list in as much as they want to make sure that there's a commitment that. wherever they go they can do so without expanding infrastructure in several different directions. Mr. McGowan stated that he is interested in conserving staff resources and working in developments where it will be beneficial for the City. Cncl, Joos asked what the financial impact for SPUC would be on the different sites identified as possible school sites. Mr. McGowan answered that the parcel on the west side would require a larger capital increase. If development goes in that direction, SPUC will still need to add the infrastructure to include booster stations, wells and pumps. The west property would require the most capital and the most time/personnel investment. Cncl. Lehman noted that Council took the position that the City would work on extending sanitary sewer to Phase 1, Phase 2, Phase 3 and then move into the Township. This scenario (the DR Horton subdivision) would make moving into the Township a Phase 1 project and would be putting the Township ahead of Shako pee properties. (The DR Horton subdivision is 320 acres located in Jackson Township south ofTH 169 and west ofCR 15,) Mr, McGowan noted that the way SPUC reclaims their investment is through connection fees and access charges when the property is platted, At some point, charges would be recovered but that could be years from now. Official Proceedings of the November 29, 2005 Shakopee City Council Page -4- Mayor Schmitt asked what kind of project staff is comfortable with on easterly site. He added that the developer is showing a high density project. (The Tollefson subdivision is 45 acres located south of CR 16 and on the east side of CR 15). Cncl. Joos interjected that the last time there was discussion on three developments as potential sites for a new school, the Tollefson Development's Shutrop South parcel was Council's first choice, the 40 acre site lying south of Countryside was second and the DR Horton 320 acre site was third. He stated that these are still his choices. If the DR Horton subdivision is off the table to meet the 2007 time frame, this provides relief for staff. At the last Council meeting, the density for the Tollefson property was reduced to RIB. This site fits for the school and development and Cncl. Joos stated that he is comfortable with the previous decision and would like to reaffirm it and move ahead. Mayor Schmitt recognized Bob Erickson, Vice President of DR Horton, who is most affected by Council's decision at this evening's meeting. Mr. Erickson stated DR Horton had worked for six (6) months with City staff, SPUC, and Scott County. He added that they have followed the growth management issues the City is faced with as well as the newly adopted point system. DR Horton's attempt under Orderly Annexation Agreement (OAA) would be to bring a high quality neighborhood that would meet the City's point system. He said that Mr. Adams, SPUC, has been very upfront on the cost to provide infrastructure to the site and that he is willing to advance the funds which could be put into an agreement. He is willing to do an EA W. An AUAR won't make the school's time line. He said that he is excited about creating a high quality development and asked to be considered for a second school site. Mark McNeill added that DR Horton are good people to work with. He added that staff appreciates everything DR Horton had done in terms of being cooperative. Not rushing the development of the site to include the opening of a new school in 2007 will allow the City the time to do a good job on the development. No action was taken to change the Council's order of developing three sites as identified by Councilor Joos earlier. Gregg Voxland, Finance Director, presented Council with the budget for the general fund budget for 2006 based on previous discussions. He noted that there will be a truth in taxation public hearing on Monday, December 5. Cnc1. Joos requested that Mr. Voxland explain the SPUC donation; it's not a typical city transfer. Mr. V oxland noted that there had been a separate utility commission since 1956 which has been responsible for electrical and water service. There has been an agreement between the Commission and Council prior to the franchise fee option and a formula for contribution was based on net revenues. Mr. V oxland described the transaction as a return on investment or payment in lieu of taxes. Official Proceedings of the November 29, 2005 Shakopee City Council Page -5- Cncl. Joos asked which formula was being followed. Mr. Voxlandanswered that the formula for water was established 30 years ago with joint resolutions from both parties. Mr. McNeill asked if the entire payment for the 800 MHz radios would be due next year. Mr. V oxland indicated that the budget will be amended at the time the radios are purchased. Cncl. Lehman asked if the money would be taken out of fund balance in 2006. He asked ifthe payment is made in two separate payments, could the City lower the levy amount by $226,000. Mr. Voxland answered that if Council wished to reduce the payment by one-half, they can do that. Cncl. Joos noted that the City would defmitely have that expenditure and it would be more appropriate to leave the money in the fund balance. City of Shakopee Police Chief Dan Hughes approached the podium to discuss his proposed 2006 budget. Included in his budget was the acquisition of 800 MHz radios which would be partnered with other areas. Chief Hughes noted that the 800 MHz radios would be transitioned in late 2006 or early 2007 and would be brought back to council at that time. Chief Hughes indicated he would work with Dakota County to keep costs down. Chief Hughes also discussed the addition of a police captain position. Cncl. Menden asked what the budget impact would be for the added position. Chief Hughes answered that it would cost more for the captain's position but adding the position would eliminate the executive sergeant position and the cost would be the differential between the two positions. In addition, the captain's position is a non-union position, Cnc1. Lehman clarified that the police department staff would drop from eight (8) sergeants to seven (7) sergeants. Chief Hughes answered that there would be one (1) chief, one (1) captain and seven (7) sergeants. Chief Hughes added that if Council approves the addition of the captain's position. Mr. Vox1and would change his budget. Joos/Menden moved to authorize the creation of the police captain position and request the Shakopee Police Civil Service Commission to being the testing process. Motion carried 5-0. John Peterson. Telecommunications Coordinator. presented his 2006 budget to council. Mr. P~terson's total proposed budget is $397,620 with no impact on tax levy. He explained that his department is largely funded through franchise fees, peg fees (public, educational and government access channels), and telecom fund balance. He added that his department has one (1) full-time staff person and two (2) part-time staff members: one that tapes meetings held in Council Chambers and one who keeps the cable studio open on a semi-regular basis, Official Proceedings of the November 29,2005 Shakopee City Council Page -6- Cnc1. J oos asked if the Telecommunications Department is looking into other sources of revenue. He asked if the current sources of revenue disappear, would there be other sources to fall back on, Mr. McNeill answered that staffhad been careful not to utilize telecommunication funds for the general fund. While it would be an impact, it would be something to address with telecommunications, not the general fund. Mr. Voxland answered that the list proposed ofthings discussed previously; they are not duplicating line items. Cncl. Helkamp noted that a priority for the Telecommunications budget would be to provide an audio update in the Council Chambers; it is one of the biggest complaints from constituents, Mr. Peterson also noted the addition of scrolling text at the bottom of the screens. Cncl. Helkamp asked who would be entering the scrolling text; he foresees the addition of staff, Mr. Peterson answered that the text would be compiled from agendas and would use the copy/paste function from the current software; there would be no added staff, After discussion on some line items including WiFi, it was agreed that the Telecommunications' budget discussion would be carried over to the December 20, 2005 meeting. Mr. Voxland approached the podium to discuss the sewer and storm drainage budgets and rates for 2006. Mr. Voxland stated that the budgets are very similar to what they have been in the past. He added that the cost for treating the sewer has gone up 7% and in the storm drainage fund there is $50,000 for further study that meet new regulations from Scott County and the MPCA. Staffis recommending that the base fee for sanitary sewer of $6.50 per month be increased to $7.00 and for storm drainage a 2% increase in rates. Cncl. Helkamp noted that he didn't notice a LOGIS charge on the line items in the budget. He asked that since the LOGIS computer system is used to administer the system would it be appropriate for some cost defrayal from this fund. Mr. V oxland answered that LOGIS costs could be allocated and maybe GIS systems as well. He noted that there is a chargeback to general fund for those two enterprise funds. Helkamp/Lehman moved to accept the Sewer and Storm Funds budget and direct staff to include in the 2006 fee schedule the rates of: a rate of$7.00 for the sewer base rate and a sewer flow fee of $1.60 per 1,000. gallons of water use/flow; and, for the storm fund set a rate of $25.55 per residential equivalent factor per acre per quarter. Motion carried 5-0. Official Proceedings of the November 29, 2005 Shakopee City Council Page -7- Mayor Schmitt asked if the increase would be published via utility bills. Mr. Voxland responded that residential bills wouldn't be impacted until the next calculation of the rate cycle. Fire Chief Schwaesdall approached the podium to review the annual pay increases for the Shakopee Fire Department Officers. He requested that the Chief receive $8,000; the 15t and 2nd Assistant Chiefs receive $4,500 each; the Captain l/Training Officer receive $5,000; the Captain 2 receive $3,000; the Captain 3 and 4 receive $2,000; the Captain 5 receive $1,500; the Captain 6 receive $1,500; the Engineer receive $2,800; the Assistant Engineer receive $2,200 and the 2nd Assistant Engineer receive 1,200. Chief Schwaesdall added that the positions went from one year to two year terms to offer additional stability within the department. Chief Schwaesdall indicated that he had discussions with Mr. McNeill concerning the growth of the city and the increased number of calls. Starting pay in 1979 the chief made $1,500. In 26 years it has gone to $3,500 per year, Chief Schwaesdall noted that he is averaging 15-20 hours per week in administrative duties and that the training officers are close behind at 10-15 hours per week. Cncl. Lehman noted that the increase from $3,500 to $8,000 is substantial. He also asked that, since tax statements have already been posted, where would the additional money come from. Mr. McNeill agreed that the increases should have been discussed at budget time but that didn't happen. The increases would result in a $13,300 shortfall. Cncl. J oos noted that he would prefer to see a per-hour basis and that would still be a huge . increase. He added that he would like to see different pay rates for the various types of duties completed by the Fire Chief (i.e., a separate rate for fire calls, a separate rate for administrative duties, etc.). Mr. McNeill added that the Chief receives a flatrate (as do the officers) annually plus $10 per hour for a fire call as any other firefighter. Cncl. Joos asked if an option could be that they go to a flat dollar amount. Chief Schwaesdall answered that his officers receive approximately 35-40 fire calls per year and those are above and beyond the approximate 20 hours per week of administratiye duties. Cncl. J oos proposed Chief Schwaesdall review the increase of $13,300 by the December 20th meeting or propose a smaller number. Official Proceedings of the November 29, 2005 Shakopee City Council Page -8- Chief Schwaesdall informed the Council that he wouldn't cut the budget or services to the City to give himself more money. Steve Soltau, Shakopee Crossings, approached the podium to discuss access to County Road 18 North of the Home Depot site to include a Hanson Avenue extension. The current road alignment was previously submitted in February 2003, The access was approved by the City and proceeded to the County Board and was denied. Since then, there hasn't been a formal request to the County. Mr. Soltau indicated that the request would be better coming from City instead of them as a developer. Mr. Soltau added that he is attempting to work with the City and the County for the transit station. He noted that there is a minimum of a 6-monthhurdle which would bring any access approval to the end of June. Mr. Soltau asked Council for their suggestions as to how to expedite the process. Discussion followed. Helkamp/Joos moved to direct staff to send a letter from the City Council to the Scott County Board supporting and urging a right in-right out at Hanson A venue and County Road 18 and emphasizing the positive economic impact for Shakopee with regard to the tax base, labor base, economic base and transportation and also to emphasize that time is of the essence. Mr. Soltau also suggested acknowledging the on-going traffic study by Scott County and pointing out the desire to move concurrently with development process in the interest oftime. Motion carried 5-0. Lehman/Joos moved to adjourn to Monday, December 5, 2005 at 7:00 p.m. for the Truth In Taxation public hearing. Motion carried 5-0. The meeting was adjourned at 9:46 p.m. ~:~c~. tj ity Clerk Andrea Bortness Recording Secretary OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. SPECIAL SESSION SHAKOPEE,MINNESOTA DECEMBER 5, 2005 Mayor John Schmitt called the meeting to order at 7:00 p.m. with Council members Joe Helkamp, Terry Joos, Steve Menden and Matt Lehman present. Also present were Mark McNeill, City Administrator; Judith S. Cox, City Clerk; Gregg V oxland, Finance Director; Dan Hughes, Chief of Police; Bruce Loney, Public Works Director/City Engineer; R. Michael Leek, Community Development Director; and Mark Themig, Parks, Recreation and Facilities Director. Helkamp/Joos moved to approve the Agenda as presented. Motion carried 5-0. LehmanlMenden moved to option the truth in taxation public hearing. Motion carried 5-0. Gregg V oxland approached the podium to review the City's 2006 Annual Combined Budget Summary, Mr. Voxland explained that due to the increase in the tax levy, the City is required by law to hold a public hearing. Mr. Voxland noted the process used to determine residents' property taxes. He stated that the tax assessor visits 1/5 of the properties each year. The assessor then assigns a market value that the property will sell for. He is required to maintain a sales ratio of at least 90%. This means that the value of the property must be at least 90% of what the State's rate would be based on sales of comparable buildings. If the values fall below the 90% rate the State will mandate that the values are raised. Once the market values are set, the legislature sets a formula that converts the market value to tax capacity. The rate for residential homestead property valued at less than $500,000 is 1 % which covers most of the homes in the City. The City Council sets a tax levy, the amount of dollars to levy. Council then certifies the levied tax amount to the County and the County Auditor spreads those dollars across all the tax capacities in the City. The County Treasurer collects the taxes and gives the City's share to the City. Mr. Voxland noted that citizens who which to contest their market value, there is a board of review process in place that is held in May and June. Mr. Voxland reviewed an example property tax statement and discussed the contents of the tax statement. He explained the dollar amounts that were represented on each line. Mr. V oxland reviewed the budget summary for 2006 for the City of Shakopee line by line. For the 2005 budget, there is a shortage of$349,000. Next year there will be a shortage of $393,000. He noted the comparison of2005 vs. 2006 tax levies. The general fund levy was $9,000,000 last year and is going to $10.3 million dollars this year which is a 14.7% increase, There are some substantial increases due to the growth ofthe City. The impact to the tax payers is less because there are more tax payers. Official Proceedings. of the December 5, 2005 Shakopee City Council Page -2'; Mr. Voxland continued to compare the 2005 and 2006 revenues and expenditures. He noted that the cost per household averaged $54 per month for city services. He continued to note some of what these services consisted of: 46 licensed police officers, 54 authorized fIrefighters, building inspection services, engineering, snowplowing, street division, street/alley/parking lot maintenance, park maintenance, recreation, community center activities. Mr. Voxland noted that the property tax levy required to support the 2006 budget would be $11,330,817. Mayor Schmitt asked for public comment. Bryan McGowan, 8224 Horizon Drive, and Mark Miller, 1189 Jefferson Street South, approached the podium. Messrs. Miller and McGowan indicated that in addition to being residents, they are also members of the Shakopee Public Utilities Commission (SPUC). Mr. McGowan had questions about how some of their funds are and are not applied to the residents. There are substantial amounts contributed from revenue generated from the utilities which pays for some of the city services but there are some taxpayers in Shakopee who are not part of Shakopee Public Utilities service area and are, therefore, getting somewhat of a discount. Both he and Mr. Miller have concerns about a potential inequity in the tax base. Some of the residents are not in the area serviced by SPUC but are gaining the benefits of SPUC contributions to their tax base. Mr. Miller noted that the SPUC contribution to the City was anticipated to increase by about $300,000 in 2006. Messrs. McGowan and Miller offered three suggestions as to how to more fairly levy the taxes. One suggestion would be to charge an energy franchise fee that would charge all energy suppliers in the city limits. All users would then be charged the same fee and the revenue would be collected by the city. Another suggestion would be to remove the SPUC contribution entirely. Not that they want rates to go up but spread across the city it would be applied more evenly. Another suggestion would he for the City to work with SPUC to extend their service area. Councilor Lehman and Mayor Schmitt noted that this would be a subject for a work session. Mayor Schmitt asked if there were any other citizens present who wished to make a comment. There were none. Mayor Schmitt announced that the tax levy and budget will be adopted during a public hearing on December 20,2005. Helkamp/Menden motioned to close the truth in taxation public hearing. Motion carried 5-0. Discussion ensued on the additional $300,000 contribution from SPUC that was mentioned by Mr. Miller. Staff was directed to look into the possibility of lowering the tax levy for discussion on December 20th. Official Proceedings of the December 5, 2005 Shakopee City Council Page -3- JooslMenden moved to adjourn the meeting. Motion carried 5-0. The meeting was adjourned at 7:57 p.m. ~~. Cr;6 ~th S. Cox ity Clerk Andrea Bortness Recording Secretary