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HomeMy WebLinkAbout4.F.2. Approval of Minutes: June 18, and June 25, 2013 Consent Business 4. F. 2. SHAKOPEE TO: Mayor and City Council Mark McNeill, City Administrator FROM: Julie Linnihan, Finance Director /City Clerk DATE: 07/16/2013 SUBJECT: Minutes from June 18, 2013 and June 25, 2013. (F) Action Sought Move to approve the minutes of June 18, 2013 and June 25, 2013. Attachments: 06 -18 -13 Minutes 06 -25 -13 Minutes OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL REGULAR SESSION SHAKOPEE, MINNESOTA JUNE 18, 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, Councilmembers Matt Lehman, Steve Clay and Jay Whiting. Absent: Councilmember Pamela Schurman 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; and Jim Thomson, City Attorney 2. Pledge of Allegiance 3. Approval of the Agenda Mr. McNeill asked to add 12, Other Business, a Closed Session to discuss the sale of the Downtown Fire Station. Whiting/Clay moved to approve the agenda as amended. Motion carried 4 -0. 4. Consent Business Cncl. Lehman asked to remove from the Consent Agenda, item 4.A.2, Approval of Resolution No. 7314 Guaranteeing Operating Funds for Buses Purchased as a part of Congestion Mitigation Air Quality Grant, (CMAQ). Lehman/Clay moved to approve the Consent Agenda as amended. Mr. McNeill read the Consent items. Motion carried 4 -0. 4.A.1 Lehman/Clay Offered Resolution No. 7317, a resolution setting the public hearing date to consider the vacation of right -of -way. (Motion carried under the Consent Agenda) 4.A.2 Removed by Cncl. Lehman 4.A.3 Lehman/Clay moved to direct city staff to initiate the Environmental Assessment Worksheet for this project, and to enter into the necessary agreement(s) with city consultant WSB and the applicant. (Motion carried under the Consent Agenda) 4.A.4 Lehman/Clay offered Resolution No. 7319, a resolution approving the Final Plat of Church 2nd Addition with conditions, and moved its adoption. (Motion carried under the Consent Agenda) 4.C.1 Lehman/Clay moved to approve a parking control change as depicted on the attached drawing on Scott Street, south of 2nd Avenue. (Motion carried under the Consent Agenda) 4.C.2 Lehman/Clay moved to authorize the payment of easements in the costs of $17,200 and $6,850 to Render/Banks Limited Partnership (Motion carried under the Consent Agenda) Official Proceedings of the June 18, 2013 Shakopee City Council Page 2 4.C.3 Lehman/Clay moved to authorize the Execution of a Road Maintenance Agreement between the City Of Shakopee and Spring Lake Township for 160th Street. (Motion carried under the Consent Agenda) 4.C.4 Lehman/Clay moved to authorize the purchase of one new aerator from MTI Distributing for the price of $29,305.92. The funding is to be expended from the Capital Equipment Internal Service Fund. (Motion carried under the Consent Agenda) 4.C.5 Lehman/Clay moved to award a contract to Chard Tiling & Excavating for the 2013 Upper Valley Drainage way Improvements at a cost of $83,232.25 and approve a 5% contingency amount in this project for use by the City Engineer in authorizing change orders or quantity adjustments on this project. (Motion carried under the Consent Agenda) 4.C.6 Lehman/Clay offered Resolution No. 7304, A Resolution Declaring the Adequacy of Petition, Ordering an Improvement and Preparation of Plans and Specifications for Improvements within the Plat of Valley Park Business Center, Project No. 2013 -6 and move its adoption. Also, moved to authorize the appropriate City Officials to execute an extension agreement with WSB & Associates, Inc. to provide engineering services. (Motion carried under the Consent Agenda) 4.D.1 Lehman/Clay moved to authorize the hiring of Bryan Hughes, at Step 1 of Grade 2 of the City's Non -Union Pay Plan, contingent upon successful completion of the required pre- employment physical, drug test and psychological evaluations. (Motion carried under the Consent Agenda) 4.D.2 Lehman/Clay moved to accept, with regret, the resignation of Jeanette Shaner from the position of Deputy City Clerk, effective June 28, 2013 and to offer Resolution No. 7315, a resolution of appreciation for Jeanette Shaner, and moved its adoption. (Motion carried under the Consent Agenda) 4.D.3 Lehman/Clay moved to recognize Edna Nicholas's successful completion of the one -year probationary period for new hires and grant her full -time, regular status in the position of Secretary for the Administration Department. (Motion carried under the Consent Agenda) 4.F.1 Lehman/Clay moved to approve the bills in the amount of $ 1,240,924.10 and electronic transfers in the amount of $450,454.57, for a total of $1,691,378.67. (Motion carried under the Consent Agenda) 4.F.2 Lehman/Clay moved to approve the minutes from June 4, 2013. (Motion carried under the Consent Agenda) 4.F.3 Lehman/Clay offered Resolution No. 7316, A Resolution Calling a Public Hearing Regarding a Housing Development and the Issuance of Revenue Bonds under Minnesota Statutes, Chapter 462C, as amended, and Minnesota Statutes, Section 469.152 through 469.1655, as amended; and Providing Preliminary Approval to the Issuance of the Revenue Bonds, and moved its adoption. (Motion carried under the Consent Agenda) 4.F.4 Lehman/Clay moved to authorize the expenditure of $62,500 from the Government Buildings Internal Service Fund for the recently completed office remodeling at City Hall and the Community Center. (Motion carried under the Consent Agenda) Official Proceedings of the June 18, 2013 Shakopee City Council Page 3 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. Gail Mosley, 1565 Dublin Ct., said she's been happy with the service she has received from Dick's Sanitation, and opposes the proposed City Council decision to switch garbage haulers from Dick's Sanitation to Allied Waste. 6. Public Hearing 6.A Consideration of Minnesota Investment Fund Application for Rosemount Inc. — Res. No. 7313. Clay /Whiting moved to open the public hearing. Motion carried 4 -0. Samantha DiMaggio, Economic Development Coordinator, stated for the past several months the City has been working with Rosemount, Inc. for the location of an administration and processing facility in the former ADC II building, An announcement of the project coming to Shakopee was issued by Rosemount on June 10th. Part of the financial incentives offered to Rosemount included up to $500,000 as a grant from the Minnesota Investment Fund (MIF). Funds are awarded to local units of government who provide loans to assist expanding businesses. All projects must meet minimum criteria for private investment, number of jobs created or retained, and wages paid. The State of Minnesota sets a maximum of $500,000 per project for projects of this size / number of jobs. Terms are for a maximum of 20 years for real estate and a maximum of 10 years for machinery and equipment. Staff recommends approving the submittal of the Minnesota Investment Fund application. If awarded, the Council should also enter into a Grant Agreement with DEED which allows the issuance of a forgivable loan to Rosemount, Inc. Mayor Tabke asked if there was anyone in the audience that wished to speak at the public hearing. No one responded. Clay /Whiting moved to close the public hearing. Motion carried 4 -0. Clay /Whiting offered Resolution No. 7313, A Resolution authorizing and approving a Minnesota Investment Fund Application, Grant Agreement, and Forgivable Loan in connection with Rosemount, Inc. Motion carried 3 -1, with Cncl. Lehman in dissent. 6.B Minnesota Investment Fund Application for Compass Datacenter, LLC. Clay /Lehman moved to open the public hearing. Motion carried 4 -0. Ms. DiMaggio said at the May 21, 2013 City Council meeting, the Council called for a public hearing to consider a Minnesota Investment Fund application for Compass Datacenter, LLC. Compass has requested the City apply for a Minnesota Investment Fund (MIF) grant from the Department of Employment and Economic Development (DEED) on their behalf, and from the Business Development Public Infrastructure Program (BDPI). The City Council then called for the required Public Hearing to consider both the MIF and BDPI grants, for 7 PM on June 18th. Official Proceedings of the June 18, 2013 Shakopee City Council Page 4 Ms. DiMaggio said that there were still some unanswered questions on eligible expenditures, amount of qualifying grants, and for which DEED programs Compass will qualify. As a result, staff is not ready to make a presentation at this time. Therefore, she recommends that the Public Hearing be opened, and be continued to July 16, 2013 at 7:00 p.m. Mayor Tabke asked if there was anyone in the audience that wished to speak at the public hearing. Jordan Olson, 248 Mound St., asked why Council would consider applying for the grant on Compass Datacenter's behalf when they reduced the number of jobs for the abatement. Mayor Tabke said that Council did not have enough information and would discuss the issue at the continued public hearing on July 16, 2013. Lehman/Clay moved to continue the public hearing for July 16, 2013 at 7:00 p.m. Motion carried 4 -0. 7. Business removed from the Consent Agenda. Cncl. Lehman removed from the Consent Agenda, 4.A.2, Approval of Resolution No. 7314 Guaranteeing Operating Funds for Buses Purchased as Part of a Congestion Mitigation Air Quality Grant (CMAQ), because he wonders if the City should move ahead if the City is considering partnering with a larger transit entity. Michael Leek, Community Development Director, stated that purchasing additional buses will benefit the current riders and adds more capital to the transit services. Lehman/Whiting offered Resolution No. 7314, a resolution guaranteeing the City's portion of operating funds for buses being purchased in connection with a 2009 CMAQ grant. Motion carried 4 -0. 8. Recess for Economic Development Authority Meeting Clay/Lehman moved to recess for an Economic Development Authority meeting. Motion carried 4 -0. 9. Reconvene Mayor Tabke reconvened the City Council meeting. 10. General Business 10.C.1 Presentation by MnDOT of the TH 169 Bridge Repair Project and Associated Traffic Impacts. Diane Langenbach of MnDOT presented Council with a brief presentation of the project and the traffic impacts. The traffic impact will be for approximately 4 weeks and estimated to be in August, 2013. She said MnDOT will be doing a bridge repair on the joints, strengthening the shoulders and making traffic flow improvements to the TH 169 bridge crossing. Official Proceedings of the June 18, 2013 Shakopee City Council Page 5 She also the zipper merge which will be implemented on the ramp to northbound 169 from Hwy 13/101. Cncl. Lehman asked for the proposed improvements included a strengthening of drainage grates, so that traffic could safely travel on shoulder areas of the roadway. Ms. Langenbach responded that she would check and get the answer to the City. 10.F.1 Adopt Private Activity Revenue Bond Policy — Res. No. 7318 Julie Linnihan, Finance Director, said the City has been approached by a variety of end users to issue Private Activity Revenue Bonds on their behalf. Some of these users include multi- family housing developments, senior housing developments, and health care facilities. The advantage to the businesses is that they are able to use the City's tax - exempt status to get more favorable bond interest rates when the bonds are sold. Conversely, the City is able to assist these businesses, while at the same time not incurring any risk or potential impact on the city's bond credit rating. Previously, the City has billed for actual expenses incurred due to financial or legal reviews. However, there are also ongoing costs involved with reporting requirements. Therefore, to ensure continuity, and to make certain that future reporting costs are covered, a policy for the issuance of conduit bonds is recommended. The City Attorney's office, Kennedy & Graven, and the City's Financial Adviser, Springsted, have provided samples of current policies from other cities for the staff to use when developing a policy. The EDAC reviewed a staff - recommended policy on June 12, 2013, and subsequently made a recommendation that the City Council approve the policy. Their only addendum was that it includes a provision that the benefiting business shall have a tie to Shakopee. Clay/Whiting offered Resolution No. 7318, A Resolution authorizing the establishment of a policy and procedures for issuing Private Activity Revenue Bonds. Motion carried 3 -1 with Cncl. Lehman in dissent. 10.F.2 Presentation by Heading Home Scott /Carver Patricia Pettit, chair of the Heading Home Scott/Carver organization made a presentation regarding the Heading Home Scott/Carver program, This program was approved by the Scott County Commission in April, 2010. Its mission is to eradicate homelessness in the Scott and Carver County areas within the next 10 years. She discuss statistics about homelessness in Scott and Carver Counties as well as resources, outreach, services and community awareness in ending the problem. 11. Council Members' Reports Cncl. Whiting attended SCALE executive meeting to discuss the upcoming agenda which includes Highway Transit Corridor workshop. He attended the school board meeting where they are compiling the results of a survey taken to guide them for the planned referendum for the new high school. On June 14 he attended the SCALE meeting and discussed legislative updates and the SCALE Regional Public Safety Training Facility Joint Powers board meeting. Lastly, he Official Proceedings of the June 18, 2013 Shakopee City Council Page 6 attended the Shakopee Diversity Alliance festival committee meeting. The International Festival will be held on July 31 as part of Derby Days. Cncl. Clay had nothing to report. Cncl. Lehman attended the Shakopee Derby Days meeting. He discussed the resignation of the vice president and the secretary of Derby Days. The committee is still looking for volunteers and donations for Derby Days. Mayor Tabke attended the Municipal Legislative Committee meeting. There was discussion about the elimination of sales tax for cities. He attended the SCALE meeting, the LMC conference and Huber Park concert series. 12. Other Business Lehman/Clay moved to recess for a closed meeting to discuss the potential sale of the Downtown Fire Department. Motion carried 4 -0. Mayor Tabke reconvened the meeting. No action was taken during the closed session. 13. Adjourn Whiting /Clay moved to adjourn to Tuesday, June 25, 2013 at 7:00 p.m. Motion carried 4 -0. Meeting ended at 9:12 p.m. ulie A. Linnihan Finance Director /City Clerk Kim Weckman Recording Secretary OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA JUNE 25, 2013 1. Call to Order, Attendees Mayor Tabke called the meeting to order at 6:40 p.m. Present: Mayor Brad Tabke, Councilors Steve Clay (arrived late), Jay Whiting, Pamela Schurman, and Matt Lehman. Staff Present: Mark McNeill, City Administrator; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director /Engineer; Kris Wilson, Assistant City Administrator; Julie A. Linnihan, Finance Director /City Clerk; and Samantha DiMaggio, Economic Development Coordinator Planning Commission Members: Ryan Magin, Kent Robbins, and Mark McQuillan Economic Development Advisory Committee: Kari McGuire, Ryan Thorman, Deb Barber, and Ryan Love Shakopee Public Utilities: Joe Helkamp, Mark Yost, and Brian McGowan Presenters: Michael Sobota, Bruce Maus, and Stacy Crakes 2. Introductions Each person introduced themselves. 3. Authorize Sale of Downtown Fire Station Building Mr. McNeill reported that the prospective buyer of the Downtown Fire Station Building is Peter D. Lund. Lund's anticipated use will meet the City's zoning standards for the property. Mr. Lund has offered $320,000 to purchase the property. A closing date has been set for July 12, 2013. By State law, the City's Planning Commission must determine that the sale of any real property which is owned by the City would be in compliance with the City's comprehensive plan. As an alternative, by a two- thirds vote, the City Council can determine for itself that the sale of the real property does not impact the City's Comprehensive plan. It would therefore not need to be considered by the Planning Commission. That was the recommendation of Staff. The Council concurred. Whiting/Lehman offered Resolution Number 7322, A Resolution authorizing the sale of certain real property located at 334 Second Avenue West, Shakopee, MN. Motion carried 5 -0. Official Proceedings of the June 25, 2013 Shakopee City Council Page 2 5. Consideration of Liquor License Status -RAM Arizona's LLC Julie A. Linnihan, Finance Director /City Clerk, advised Council that staff had been contacted by Dennis Heyde, owner of the Arizona/America's Best Value Inn. Mr. Heyde requested that his business be provided a temporary liquor license for a period of 30 days, to facilitate the sale of this property. The existing liquor license would otherwise expire on June 30, 2013. The owner currently has a balance due on the 2012 delinquent property taxes of $240,260. The City Code contains a provision stating that a liquor license cannot be issued if property taxes are "delinquent and unpaid." Because this is a City Code requirement, rather than state law, City Attorney Jim Thomson advised that the City Council may, but is not required to; grant a limited exception to the requirement. Dennis Heyde, owner of Arizona/America's Best Value Inn, told the Council that the liquor license is necessary to facilitate a pending sale, which would allow for payment of the delinquent taxes. Whiting /Schuman moved to direct staff to release the license previously approved by the City Council to the applicant upon the condition that if the property taxes are not paid by 60 days, the license will automatically become null and void and of no further effect. Discussion followed. Cncl. Lehman asked if it was legal to override City Code. Mr. McNeill said that the City Attorney provided the language for the motion. Mayor Tabke asked for a vote on the motion. Motion carried 5 -0. 6. SCALE 501: Implementing a Plan for Economic Development Michael Sobota provided a review of past SCALE Workshops and the objective of SCALES 501 which comprises case studies, economic development visions, SCALE Unified Plan update of the First Stop Shop, and post- recession economic development strategies. Bruce Maus, Maus Group, LLC talked about economic development and how local economies work. He also stressed the importance of long term/stable /emerging industries and jobs. Key industries are headquarters and business services, bioscience and medical device, food and agriculture, innovation and technology and lastly finance and insurance. Julie A. Linnihan, Finance Director, discussed property comparisons, and taxable market values in relation to business types. Factors she suggested to consider are number of jobs, wage range, benefit eligibility, sustainability of businesses, and the ability to attract others. Mr. Maus discussed how the cost of electricity and water service can be critical to many businesses. Samantha DiMaggio, Economic Development Coordinator, suggested that the City and Shakopee Public Utilities work together to come up with marketing tools for economic development. She said she frequently receives comments regarding utility incentives. She felt the City and SPUC should work together on strategies and strategic planning for economic development. Official Proceedings of the June 25, 2013 Shakopee City Council Page 3 Mr. Maus asked the participants to discuss what are the City of Shakopee's priorities for investment, and could result in new commercial/industrial tax base and livable wage jobs. Several participants spoke about ideas regarding long -term economic development planning, including the purchase of land, long term agreements with land owners, the offering of business loans, and others. Mr. Maus said that control is the key to success. The City of Shakopee's priorities for investment could result in new commercial/industrial tax base and livable wage jobs and improvements to the CR 101; CR 69/TH169 Interchange area; and CR 83 corridor. There was discussion about empty K -Mart warehouse on CSAH, which is approximately one million square feet in size. A Land use surrounding that site has changed since it was constructed in 1982, such as the opening of the US 169 by -pass, SMSC purchases, and the opening of Canterbury Park. It was felt that there was a need to have control and incentive strategies to market the property. Mayor Tabke stated that he was looking for parties to take control or ownership of projects. Mr. McNeill said staff needs to have a discussion because of projects which are currently underway, and the fact that the City has a planning staff vacancy. The group agreed that the priority sections of the City are 101 east of Marschall Rd., and the 169 /69 interchange which the County is working on. It was suggested that the EDAC have discussions on the K -Mart warehouse. The Planning Commission and City Council could focus on annexation of Jackson Township and the 169/69 corridor. Mr. Maus said that there is value in building for capital investment, and also to diversify the City's development portfolio as a key to attracting potential business coming to Shakopee. 7. Other Business None. 8. Adjourn Whiting/Clay moved to adjourn to Tuesday, July 2, 2013 at 7:00 p.m. The meeting ended at 9:00 p.m. Julie A. Linnihan Finance Director /City Clerk Kim Weckman Recording Secretary