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HomeMy WebLinkAbout4.F.2. Approval of the Minutes from May 07, 2013 Consent Business 4. F. 2. SHAKOPEE TO: Mayor and City Council Mark McNeill, City Administrator FROM: Julie Linnihan, Finance Director /City Clerk DATE: 05/21/2013 SUBJECT: Approval of the Minutes from May 7, 2013 (F) Action Sought Move to approve the minutes from May 7, 2013. Attachments: 05 -07 -15 Minutes OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL REGULAR SESSION SHAKOPEE, MINNESOTA May 7, 2013 1. Roll Call Mayor Tabke called the meeting to order at 7:00 p.m. and roll call was taken. Present: Mayor Brad Tabke, Councilors Pamela Schurman, Matt Lehman, Steve Clay and Jay Whiting. Staff Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/Engineer; Julie A. Linnihan, Finance Director /City Clerk; Jeff Tate, Police Chief; Rick Coleman, Fire Chief; Samantha DiMaggio, Economic Development Coordinator and Jim Thomson, City Attorney 2. Pledge of Allegiance 3. Approval of the Agenda Lehman /Whiting moved to approve the agenda as amended. Motion carried 5 -0. 4. Consent Business Cncl. Whiting asked to add to the Consent Agenda item 9.C.1, Consideration of Drainage Solution for Valley Creek Crossing, Block 3 and Cncl. Clay asked to add 9.E.1, Huber Park Electrical Upgrade. Lehman/Clay moved to approve the Consent Agenda as amended. Mr. McNeill read the Consent items. Motion carried 5 -0. 4.A.1 Lehman/Clay offered Resolution No. 7298, A Resolution Approving the Final Plat of Dakota Crossing, subject to conditions, as presented, and move its adoption. (Motion carried under the Consent Agenda) 4.B.1 Lehman/Clay moved to authorize the approval of a variance to the existing fee schedule for ValleyFair reducing the number of 2013 fireworks inspections, and fees charged for fireworks displays ValleyFair from $2,270.00 to $890.00. (Motion carried under the Consent Agenda) 4.C.1 Lehman/Clay offered Resolution 7297, A Resolution Accepting Bids on the 2013 Bituminous Overlay, Project No. 2013 -2 and move its adoption; also approve a 5% contingency amount on this project for the use by the City Engineer in authorizing change orders or quantity adjustments on this project. (Motion carried under the Consent Agenda) 4.C.2 Lehman/Clay offered Resolution 7299, A Resolution Accepting Bids on the 2013 Street Reconstruction, Project No. 2013 -1 and move its adoption; also approve a 5% contingency amount on this project for the use by the City Engineer in authorizing change orders or quantity adjustments on this project. (Motion carried under the Consent Agenda) Official Proceedings of the May 7, 2013 Shakopee City Council Page 2 4.C.3 Lehman/Clay moved to authorize the quote from Choice electric at $6,680.00 for the CR 17 pedestrian tunnel lighting. (Motion carried under the Consent Agenda) 4.C.4 Lehman/Clay move to authorize the appropriate city officials to enter into an extension agreement with Bolton & Menk, Inc. to provide design and survey services for the East Industrial Sewer Improvements Project No. 2013 -4. (Motion carried under the Consent Agenda) 4.F.1 Lehman/Clay moved to approve the bills in the amount of $1,039,163.44 and electronic transfers in the amount of $508,787.18 for a total of $1,547,950.62. (Motion carried under the Consent Agenda) 4.F.2 Lehman/Clay move to approve the minutes from April 2 April 9 and April 16, 2013. (Motion carried under the Consent Agenda) 4.F.3 Lehman/Clay moved to approve the application and grant a massage therapy business license to Vogue Day Asian Massage LLC, 1240 East 3 Avenue, Suite 104. Approve the applications and grant a massage therapist license to Xia Li and to Ying Li. (Motion carried under the Consent Agenda) 4.F.4 Lehman/Clay moved to authorize the closure of Lewis Street from First and Third Avenues on altering Friday nights from 6 to 10 PM, beginning May 31 and ending August 23` 2013, for the Shakopee Downtown Classic Car Cruise. (Motion carried under the Consent Agenda) 4.F.5 Lehman/Clay move to authorize Contract Amendment #1 to provide additional compensation to Foth Infrastructure and Environment, LLC, in the total amount of $37,150. (Motion carried under the Consent Agenda) 9.C.1 Lehman/Clay moved to authorize a drainage solution concept proposed by staff and authorizing staff to enter into a letter agreement with the property owners to participate in the project at a cost not to exceed $5,326.00 from the Surface Water Drainage Fund. (Motion carried under the Consent Agenda) 9.E.1 Lehman/Clay moved to agree to the funding arrangement with Shakopee Derby Days for the enhanced electrical services to Huber Park, and accept the quote of Ries Electric in the amount of $29,197.25 for the electrical work, and authorize the work to commence. (Motion carried under the Consent Agenda) 5. Recognition of Involved Citizens by City Council. Mayor Tabke asked if there was anyone in the audience who wished to speak on an item not on the Agenda. Jordan Olson, 249 Mound St., asked Council to be fiscally responsible when considering the upcoming 2014 budget. Sean Nelson, 603 E. 8 Ave., said he attended the Governor's Townhall meeting and disagreed with Governor Dayton on his comments about rudeness from those who attended the meeting. Martin Alvarez, 700 Garden Lane, addressed Council through an interpreter, Mary Hernandez. Mr. Alvarez, who is a representative of the organization called CPHS, which translates to the Hispanic Advisory Council of Shakopee Parents, expressed concern over issues at Hunter's Official Proceedings of the May 7, 2013 Shakopee City Council Page 3 Ridge Apartment complex. His concerns include pest infestation at the complex, the recent homicide as well other crimes that have occurred and the lack of lighting in the parking lots. Mr. Alvarez asked the City Council to take action with regard to the above mentioned problems at Hunter's Ridge Apartment Complex. Mayor Tabke said that at the June 4 City Council meeting there will be discussion regarding rental housing licensing in Shakopee. 6.A Business Incentives for Compass Data Centers LLC — Res. No. 7300 Schurman/Lehman moved to open the public hearing for Business Incentives for Compass Data Centers. Motion carried 5 -0. Mark McNeill, City Administrator, advised Council that on April 30, 2013 the City received information from Compass Data it had recently signed with a single user, meaning that only four pods, rather than the original five pods, would be created. In addition, instead of 40 jobs, only 15 -18 jobs would be created. Build out would be in two years rather than over three years. Mr. McNeill said the purpose of this public hearing is to consider the offer of up to 50 SAC credits to assist Compass in coming to Shakopee. The Resolution which is attached has been modified to show the new size of the building (89,000 square feet versus the original 109,000 square feet). If the Council so chooses, it could proceed with extending up to 50 SAC credits to assist Compass without re- noticing the public hearing. At a 2013 value of $2,435 per SAC credit, this equates to $121,750. The unused SAC credits would be returned to the City. Secondly, there needs to be discussion as to whether the City wants to proceed, given the change in number of jobs to be provided. On April 9th, the City Council approved the 50% property tax abatement (amounting to $251,555). That was contingent upon the City and Compass entering into a contract, which assumed a minimum creation of 40 jobs. If the Council is okay with the 15 -18 jobs, the contract would reflect that, and abatement could proceed. However, if the new numbers are determined by the Council to be insufficient, no contract would be negotiated, and the abatement becomes moot. Ray Watson, representative for Compass Data, advised that Compass Data is still very serious about establishing Compass Data in Shakopee. Mayor Tabke asked if anyone wanted to speak at the public meeting. No one responded. Lehman/Whiting moved to close the public hearing. Motion carried 5 -0. After discussion, Mayor Tabke and Cncl. Schurman said they supported the leaving the tax abatement assistance and SAC credits as originally proposed. Cncl. Clay and Cncl. Whiting support the tax abatement but not the issuance of SAC credits. Cncl. Lehman supports the SAC credits but reducing the tax abatement by 25 percent. Official Proceedings of the May 7, 2013 Shakopee City Council Page 4 Whiting/Clay moved to approve tax abatement at 50% with the realization that the jobs are 18 jobs. Motion carried 4 -1 with Cncl. Lehman in dissent. Schurman/Clay offered Resolution No. 7300, a Resolution Granting Business Subsidy to Compass Data Centers, LLC, or any of its affiliates. Discussion followed. Cncl. Schurman strongly encouraged Council to vote yes to the motion because this is the first viable option Council has had for this parcel in the past 9 years. Mayor Tabke asked for a vote on the motion. Motion carried 3 -2 with Cncl. Whiting and Cncl. Lehman in dissent. 7. 2012 Annual Financial Report and Audit Presentation by Kern, DeWenter, Viere, LTD (KDV) Julie Linnihan, Finance Director, asked Council to accept the 2012 audit and accompanying reports, as presented by Steve Wischmann, from KDV. Mr. Wischmann, provided Council with background in the audit process and the financial status of the City. He also covered specific financial activities and focus points that were covered during the audit. Mr. Wischmann said that based on Government Auditing Standards audit findings are as follows: lack of segregation of accounting duties, to improve ice arena receipting internal controls, to improve community center receipting internal controls and follow City Council approved fee schedule. 8. Business removed from the Consent Agenda None 9. General Business 9.B.1 Massage License Applications — Wei Pan — Res. No. 7292 Chief Tate advised Council that the applicant, Wei Pan, was not present. Chief Tate advised Ms. Pan's lease was terminated at the building that her business was located. The Police Department has not been able to make contact with Ms. Pan since the last Council meeting. He advised that Council should approve Resolution No. 7292. Whiting/Lehman offered Resolution No. 7292, A Resolution of the City of Shakopee, Minnesota, Denying a Massage Therapy Business License and Massage Therapist License to Wei Pan, d/b /a Excellent Asian Massage, and move its adoption. Motion carried 5 -0. 9.A.1 Request by Rahr Malting to Rezone Property from Highway Business (B1) to Heavy Industrial (12) — Ordinance No. 868. Michael Leek, Community Development Coordinator, stated this item was tabled at the last meeting so the applicant could be present. Rahr Malting has requested a revision to rezoning request. Specifically, Rahr is now asking that only the properties south of 1st Avenue be rezoned Official Proceedings of the May 7, 2013 Shakopee City Council Page 5 to Heavy Industrial (I2) and that the properties north of 1st Avenue remained zoned as they currently are. Jesse Theis, Chief Operations Officer of Rahr Malting Corporation advised Council that the reason for their decision to revise the rezoning request is to produce a comprehensive plan for their future maintenance and warehousing needs complete with site drawings and details so that everyone will be able to see Rahr's expansion intent for the property on the north side of First Avenue. Gary Lee, President and CEO of Rahr Malting Corporation, talked about Rahr Malting operations and Brewer Supply Group which are both subsidiaries of Rahr Malting Corporation. Rahr Malting is a manufacturing facility and Brewer Supply Group is a marketing and distribution business. Lehman/Whiting moved to approve Ordinance No. 868, An Ordinance Rezoning Property from Highway Business (B 1) to Heavy Industrial (I2) modifying the ordinance to only include the south side of First Avenue west of Apgar. Discussion followed. Mayor Tabke said that he would like to approve the original ordinance which included rezoning Rahr's property on the north side of First Avenue. Cncl. Whiting would like the neighbors to be involved in the planning process as Mr. Theis presented to Council. Cncl. Lehman and Cncl. Clay liked Rahr's idea of a comprehensive plan that includes input from the neighbors. Mayor Tabke asked for a vote on the motion. Motion carried 5 -0. Lehman/Clay moved for a recess. Motion carried 4 -1 with Cncl. Schurman voting no. Mayor Tabke reconvened the meeting at 9:02 p.m. 9.F.1 Discussion — City Ownership of Garbage/Recycling Carts Mr. McNeill said that the garbage /recycling RFP review committee is requesting a policy decision regarding the ownership of the garbage and recycling carts. The analysis from Dan Krivit of Foth Engineering, the City's consultant, outlines the pluses and minuses of ownership of carts — either the City, or the hauler. The short-term and a long -term advantages to the City to be the owner. Currently, as there is no assurance that the hauler's contract will be renewed beyond the initial five year term, the cost of the carts must be amortized during that initial five year contract term. Because the estimated life cycle of the carts is usually 15 years, city ownership would allow an amortization of the cost of the carts over a longer period of time. A "cart fee" line item would be added to repay the City's investment, but that would be less the average difference cited by the RFP respondents, resulting in a short term savings. The City would also own the asset once the carts are paid off, resulting in a more significant savings at the end of the recommended 10 year amortization term. The RFP was set up so that the contractor would responsible for all aspects of the cart (other than initial purchase). That company would be responsible for delivering and servicing the carts. The estimated cost of 22,000 carts is approximately $1.5 million. If the Council chooses to pursue this option, the Finance Director recommends that the money be fronted through an inter - fund loan, which would be repaid (at 4% interest) by charging a line item on each garbage bill. Official Proceedings of the May 7, 2013 Shakopee City Council Page 6 Those charges would be collected by the hauler, and sent to the City each quarter to repay the inter -fund loan. If the Council chooses to pursue this, the City would start the bid process for the acquisition of these carts. Staff has been contacted by several vendors already, and there would be about a year's advance notice Council direction on this issue is requested. Cart ownership will make a difference in the recommendation of the committee as to which of the six haulers should be awarded the contract. That discussion will take place on May 21 Staffs recommendation is for the City to purchase and assume ownership of the carts with the next garbage and recycling contract to commence June 1, 2014. Whiting/Clay moved to direct staff to look into purchasing the garbage carts and bringing it back to Council in two weeks as the preferred recommendation for the RFP. Discussion followed: Cncl. Lehman asked for assurance that the City will not have to hire staff to monitor the carts. Mr. McNeill said there would be no need if it's in the contract that the hauler would be responsible for the carts. Cncl. Clay asked if Dick's Sanitation is awarded the contract, would the City still need to purchase the carts since Dick's already provides them. Mr. McNeill said Dick's provide an alternative bid. Those bids will be brought to Council on May 21 Mayor Tabke asked for a vote on the motion. Motion carried 3 -2 with Cncl. Lehman and Cncl. Schurman in dissent. 9.B.2 Approval of Position Description and Authorization to Post for Full -Time Firefighters. Chief Coleman asked Council to approve the proposed position description for the position of full -time firefighters staff to post the position for internal applications to fill the positions. Since the Council last discussed the issue in November, the City has reached out to local employers and current firefighters as directed by the Council. The City Administrator, Fire Chief and Assistant City Administrator made presentations to the Board of Directors of the Shakopee Chamber of Commerce in late February, held a lunch meeting for local employers at Station 1 in mid- March, and invited all current firefighters to an open meeting on the issue in early April. The meetings with local employers focused on the need for improved daytime response and the costs that could be avoided if this can be accomplished within the paid -on -call framework. In that feedback, local employers expressed support and appreciation for the Fire Department and a desire to help, but with conditions that don't fit the realities of emergency response. Staff recommends that the City proceed with hiring a crew of four full -time firefighters to provide weekday response to fire calls and other emergencies. Clay /Whiting moved to adopt the position description for full -time firefighters and authorize the appropriate staff to post four opening for internal applicants. Official Proceedings of the May 7, 2013 Shakopee City Council Page 7 Cncl. Whiting offered an amendment to include internal and external candidates into the motion. Cncl. Clay accepted the amendment. Discussion followed. Mayor Tabke asked Cncl. Whiting why he thought it was important to include outside candidates. Cncl. Whiting feels the process would be more transparent and would help to ensure receiving a very large number of applications. Chief Coleman stated that if the job posting is to include external candidates there is a good possibility that the City could receive 3,000 applications. Mayor Tabke asked for a vote on the motion. Motion carried 3 -2 with Cncl. Lehman and Cncl. Schurman in dissent. 9.C.2 Petition to Reconstruct Market Street between 7th Avenue & 11 Avenue Bruce Loney, Public Works Director/Engineer asked Council to accept a petition from the residents on a four block section of Market Street to have the street reconstructed and the sanitary sewer replaced and direct staff to include the project in the 2014 CIP. On April 9, 2012 staff received a petition signed by sixteen of the forty -three residents on Market Street between 7 Avenue and 11 Avenue. A number of them are experiencing sewer problems, and would like the sewer replaced on Market Street. Robert Schmitt who resides at 855 Market Street recently had to replace his sewer service, and as a result circulated the petition to his neighbors. Submitted was a letter from Mr. Schmitt to his neighbors along with the petition and list of property owners along Market Street. Staff is currently beginning to prepare the 2014 Capital Improvement Program. Mr. Schmitt addressed Council explaining his sewer service issues and other area residential sewer issues. He asked Council to consider moving the street reconstruction project up to 2014. Lehman/Schurman moved to accept the petition from the Market Street residents from 7th Avenue to 11 Avenue and direct staff to consider this project in the 2014 CIP. Discussion followed. Mayor Tabke asked what project in 2014 can be moved out to allow this project to be done. Mr. Loney stated that information will be brought forward when he presents the CIP budget in a few months. Mayor Tabke asked for a vote on the motion. Motion carried 5 -0. 9.C.3 Adopt a Revised Street Lighting Policy — Res. No. 7301 Mr. Loney said the City of Shakopee adopted Resolution No. 4923, a resolution adopting a street lighting policy on June 2, 1998. Shakopee Public Utilities Commission (SPUC) adopted the policy as well. There have subsequently been changes in street light poles and light fixtures, particularly with LED's. As a result, revising the policy is warranted. Official Proceedings of the May 7, 2013 Shakopee City Council Page 8 City staff and SPUC staff have reviewed and commented on the draft policy that was prepared by Ken Taillon of SEH. The draft policy went to the May 6, 2013 SPUC meeting for their review and approval. There were no changes that were brought forward to the May 7, 2013 City Council meeting. Cncl. Lehman asked if this policy would result in property owners being assessed for current street lights. Mr. Loney responded that additional charges would result when added lighting was requested. Lehman/Clay offered Resolution No. 7301, A Resolution Adopting A Revised Street Lighting Policy for the City of Shakopee. Motion carried 5 -0. 11. Council Members' Reports Cncl. Schurman attended the Scott Communities Transit Review Board. Representatives of the Minnesota Valley Transit Authority (MVTA) were guest speakers at the meeting to answer questions regarding to potential of the Blue Express joining that organization. Cncl. Lehman attended the Derby Days meeting. They are working on streamlining application process online. He also attended Governor Dayton's Townhall meeting. Cncl. Clay attended the Shakopee Public Utilities Commission meeting. He said they awarded the water main replacement for the 2013 Street Reconstruction project to Chard Tiling. SPUC has started the process of flushing out the water mains. During the Rahr fire they were pumping 3,000 gallons per minute. He also reminded residents about water restrictions. Cncl. Whiting attended the Shakopee Chamber and Visitor's Bureau meeting. They reported on their magazine that promotes Shakopee tourism and regional tourism. Brian Turtle from Turtle's Bar and Grill is hosting a fundraiser to assist the city and the downtown with the flower basket project on May 9th. Cncl. Whiting also attended the grand opening of SanMar, Governor Dayton's Town Hall meeting and the SCALE Executive meeting. Cncl. Whiting reminded the public that dropping yard waste at the SMSC Organic Waste Facility is free to Shakopee residents Saturdays from 10 AM to 2 PM during the months of April, May, September, and October. Mayor Tabke attended the grand opening at SanMar, a workshop with Greater MSP, and a Metro Legislative Committee meeting with the Governor. April was Sexual Assault Awareness month. He attended the Minnesota Mayor's Conference. He spoke to students at Sweeney Elementary about local Government, and a meeting with Heading Home, an organization to help end homelessness in Scott and Carver County. 12. Other Business None 13. Adjourn Lehman/Clay moved to adjourn to Tuesday, May 14, 2013 at 7:00 p.m. Motion carried 5 -0. Official Proceedings of the May 7, 2013 Shakopee City Council Page 9 Meeting ended at 10:26 p.m. Ju ie A. Linnihan Finance Director /City Clerk Kim Weckman Recording Secretary