HomeMy WebLinkAbout4.F.2. Approval of Minutes: July 29, 2013 �,�� Consent Business 4. F. 2.
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TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Julie Linnihan, Finance Director/City Clerk
DATE: 08/20/2013
SUBJECT: July 29, 2013 City Council Minutes (F)
Action Sought
Move to approve the minutes from July 29, 2013.
Attachments: 07-29-13 Minutes
OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL
WORKSHOP SHAKOPEE, MINNESOTA JULY 29, 2013
1. Roll Call
Mayor Tabke called the joint meeting with Scott County 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; R. Michael Leek, Community Development
Director; Bnice Loney, Public Works Director/Engineer; Julie A. Linnihan, Finance
Director/City Clerk; Jamie Polley, Parks, Recreation&Nahiral Resource Director; Jeff Tate,
Police Chief; Samantha DiMaggio, Economic Development Coordinator; and Jim Thomson, City
Attorney
Others Present: Scott County Board Members, Tom Wolf, Chairperson; County Commissioners,
Jon Ulrich, Barbara Marschall, Dave Menden and Joe Wagner; County Administrator, Gary
Shelton; County Attorney, Pat Ciliberto.
2. Approval of the A�enda
Whiting/Clay moved to approve the agenda as amended. Motion carried 5-0.
3. Consent Business
To be discussed after joint meeting with Scott County.
4. General Business
4.A Consideration of Tax Abatement for Datacard Corporation—Res. No. 7333
Lehman/Clay moved to open the public hearing. Motion carried 5-0.
Samantha DiMaggio, Economic Development Coordinator, presented Council and Scott County
Board the Consideration of Tax Abatement for Datacard Corporation.
Ms. DiMaggio said Datacard has requested economic development abatement property tax
abatement and a Contract for Private Development,which includes a Business Subsidy
Agreement.
Ms. DiMaggio provided a background history of Datacard Corporation. The company is a
manufacturer of machines that create secure ID cards. Datacard is proposing to relocate its
existing current workfarce of approximately 680 positions with a payroll of$65.1 million which
is currently located in the Minnetonka, MN. It would go to an existing facility in Shakopee
located at 1187 Park Place. It anticipates spending $15.5 million on the acquisition of the real
and personal property. It will invest an additional$10 million in new construction and
renovations, and$4.5 million on furniture, fixtures and equipment. Datacard Corporation
Official Proceedings of the July 29, 2013
Shakopee City Council Page 2
anticipates the need to increase to its existing workforce over the next five years by
approximately 125 people. Ms. DiMaggio discussed the company's current positions and
salaries. Project construction is anticipated to start in October, 2013 and be completed by
September, 2014.
The developer is requesting a tax abatement incentive due to the extensive internal renovations
needed to the existing structure that has put the project approximately 50% over budget. The
request is for both the City and the County to abate property taxes by a maximum amount not to
exceed$659,193. That will extend over a period of 11 years.
Staff said the project meets the initiative of Scott County in that it provides for increased tax base
and job creation with livable wage jobs. It's also recommending the approval of the request far
the Economic Development Abatement, and the authorization for the execution of the Contract
for Private Development, including a Business Subsidy Agreement.
Jeff Smolinski, Sr. Vice President of Operations at Datacard Corporation, answered questions
from Council and Scott County Board made regarding staff employed and future job numbers.
Mayor Tabke asked if there was anyone in the audience that wished to speak at the public
hearing. No one responded.
Whiting/Schurman moved to close the public hearing. Motion carried 5-0.
Whiting/Clay offered Resolution No. 7333, A Resolution granting property tax abatement for
Datacard Corporation in the City of Shakopee. Motion carried 4-1 with Cncl. Lehman in dissent.
4.B. Adopt Resolution Authorizing Submittal of Comments to the Minnesota DOT on
the Minnesota State Highwav Investment Plan (MnSHIP)—Resolution No. 7334.
Lisa Freese, Transportation Program Manager for Scott County,presented to City Council and
Scott County Board an overview of the Minnesota State Highway Investment Plan(MnSHIP).
She said MnSHIP is the Minnesota Department of Transportation's (MnDOT) tool far deciding
and communicating capital investment priorities for their system for the next 20 years. She
discussed several factors used in setting priorities, including federal and state law, system
conditions, and public input.
MnDOT's priorities for the next 10 years balance preservation of existing infrastructure with
investments in safety, new connections for multiple modes of transportation and other projects
that advance economic development and quality of life objectives. Investments for the second
10 years will focus on preserving existing infrastructure.
The Community Services staff reviewed the document and prepared a letter with comments for
submittal to MnDOT.
Lehman/Schurman offered Resolution No. 7334, A Resolution Authorizing Submittal of
Comments to the Minnesota Department of Transportation(MnDOT) on the Minnesota State
Highway Investment Plan. Motion carried 5-0.
Clay/Whiting moved to recess for five minutes. Motion carried 5-0.
Mayor Tabke reconvened the City Council meeting at 8:33 p.m.
Official Proceedings of the July 29, 2013
Shakopee City Council Page 3
3. Consent Business
Mr. McNeill asked to add 4.C, Authorize the Execution of Cooperative Agreement with Scott
County for CH 17 & CH78 Reconstruction project.
Whiting/Clay moved to approve the Consent Agenda as amended. Motion carried 5-0.
3.A Whiting/Clay moved to authorize the appropriate city staff to spend $35,000 allocated
under the police services agreement with the Shakopee Mdewakanton Sioux Community
(SMSC) for the purchase of a 2013 Ford Taurus to be used as an unmarked police vehicle.
(Motion carried under Consent)
4.0 Whiting/Clay moved to authorize the execution of a Construction Cooperative
Agreement with Scott County on the CH 17 & CH 78 Reconstruction Project. (Motion carried
under Consent)
4.E Acceptance of Resignation of Council Member Pamela Schurman–Resolution No.
7335.
Mr. McNeill advised Council that Councilmember Pamela Schurman has provided the City with
a letter of resignation from her position on the Shakopee City Council. Her intended last day on
the Council is August 31 st. Ms. Schurman's term on the Council would otherwise expire on the
first Monday in January, 2014.
He said that the Council was, therefore, tasked with appointing an interim replacement to fill the
balance of Councilor Schurman's term. This appointment cannot be made until after the vacancy
exists.
According to the City Attorney, because her resignation is effective at a future date, the Council
must adopt a resolution accepting it. Because there is less than two years remaining on the term,
no special election is needed to fill the balance of the term.
Council was informed that it may begin to discuss the appointment process at any time, now that
her resignation has been announced. However, the appointment itself cannot take place until the
position is vacant, which would mean on or after September lst.
The Council could choose to discuss the interim appointment process at the July 29th meeting, or
just accept the resignation, and make a decision on how to fill the vacancy at a future meeting.
Mr. McNeill noted that there is no set criterion for the replacement process, other than it will be
up to the four members who remain—Councilor Schurman may not participate in the decision.
He said that the possible alternatives include:
• Post a notice of the vacancy, and seek interested parties. If this is the choice, an
"application"might be used to gather information. The Council was provided with a
sample that the City of Plymouth recently used in a similar situation.
• Don't formally seek candidates, but instead appoint an individual who is mutually
agreeable to the majority of the Council.
Official Proceedings of the July 29, 2013
Shakopee City Council Page 4
• Appoint a previous Council candidate, or individuals who have previously served in an
elected capacity for the City.
• Select from current advisory board or commissioners. If this is used, the Council was
advised that the appointed individual would have to resign their volunteer position, so as
not to create a conflict of interest.
He further said that if a majority of the four members of the Council could not agree on whom to
appoint,with any votes resulting in a tie, by State law, the Mayor would make the appointment.
Mr. McNeill recommended that the Council adopt the resolution, accepting, with regret, the
resignation of Pamela Schurman from her role as a member of the Shakopee City Council,
effective 11:59 p.m. August 31, 2013.
Lehman/Clay moved to direct staff to contact past Councilmembers to see if they are interested
in finishing Cncl. Schurman's term with the caveat that they are not seeking office in this
election cycle. A list of those who are interested would be brought back to the next meeting in
August. Discussion followed.
Mr. McNeill asked Council to give direction on how far back staff should go to fill the position.
Council agreed to go back the preceding eight to ten years to find a replacement. They further
clarified that it would be limited to former councilmembers only.
Mayor Tabke asked for a vote on the motion. Motion carried 3-1-1, Cncl. Whiting in dissent and
Cncl. Schurman abstaining.
Clay/Whiting offered Resolution No. 7335, A Resolution accepting the Resignation of Pamela J.
Schurman from the Shakopee City Council. Motion carried 3-1-1 with Cncl. Lehman opposing
and Cncl. Schurman abstaining.
Cncl. Schurman spoke briefly about her time on the Council and thanked everyone who had
supported her during her term.
4.D.1 Capital Improvement Program (CIP) 2014-2018 & Consideration of Policv Changes
Julie Linnihan, Finance Director, said that the upcoming 2014 and 2015 budget years will reflect
a significant amount of street, sewer, storm water and park enhancements as the City needs to
address main projects and maintenance programs that require annual funding.
Jamie Polley, Parks, Recreation and Natural Resources Director,provided Council and update to
the 2014 and 2015 Park Reserve and Park Asset plan. The 2014 Park Reserve Fund detailed
project expenditures totaling $1,305,000 far projects at Riverview Park, 17`�Ave. Sports
Complex, the future dog park at Parcel 75, Shakopee High School, Riverside Fields, Huber Park
and Quarry Lake Park. She also discussed future 2015 park projects.
Bruce Loney, Public Works Director/Engineer, discussed the 2014-2015 Park Asset Fund.
Projects for 2014 are estimated at $605,000. A few of the major projects include Lions' Park
tennis court improvements and replacing the Community Center lift replacement to the walking
track. The 2015 Park Asset Fund estimates are approximately $795,000 which includes, among
others, projects at Schleper Field and the Community Center boiler.
Official Proceedings of the July 29, 2013
Shakopee City Council Page 5
Mr. Loney discussed CIP street construction, sanitary sewer projects, and storm sewer projects
and highlighted some of the larger projects.
Mr. Loney provided Council with information of potential projects within the sanitary sewer and
storm drainage areas that would require policy changes on behalf of the City Council.
In the Capital Improvement Project (CIP) one project to consider is the lining of sanitary sewer
services that are connected to sanitary sewer mains that have been lined from 2006 to the current
date. The current policy with replacement of sanitary sewer mains and sewer services as part of
the reconstruction project is to not access those replacements but to pay them out of the sanitary
sewer enterprise fund. Mr. Loney noted that with the proposed reconstruction project, the sewer
main and the associated services to the property line will be brand new and paid out of the sewer
fund.
The current policy states that the property owner is responsible for the sewer service line from
the building to the sewer main. If the sewer service fails, the property owner is responsible to fix
it at their cost.
The rationale for using the sanitary sewer fund is if the sewer main is to be replaced by
excavation, the sanitary sewer services would also be replaced and paid out of the sewer fund.
Also, by lining the sewer services, the amount of excavation in those streets would be minimized
and the City's future street reconstruction project would entail only replacing the street
pavement, curb and gutter, if warranted. This program could be done over a four to five year
period.
The second policy to consider is a concrete alley program. Mr. Loney said the City of Shakopee
has approximately eleven miles of alley in the old urban Shakopee area. Many of these alleys are
unpaved,with most of the paved alleys being within the Central Business District, or in
previously areas petitioned by property owners.
Staff would like Council to consider a concrete alley program where a minimum of 35% of
property owners would petition the City. Staff would also like Council to consider a revised
assessment policy to include a 25% assessment, or a set maximum amount for residential, while
maintain a 25% assessment to commercial and multi-family units. The remaining portion of the
project could be financed under the storm drainage fund as the alleys would be improved to
collect water and transmit water to the storm drainage system.
Staff recommends consideration of the lining of sewer services by proposing that a feasibility
study be done during the winter months of this year to see if this program can move forward.
Staff also recommended that Council provide direction for a concrete alley program and whether
to pursue a program at this time. A feasibility study would be appropriate for a concrete alley
program and associated policy changes.
The consensus of the Council is to move forward with the concrete alley program where
warranted,but not as a blanket"pave all"policy. They supported a feasibility study for the
sewer service lining.
5. Adiourn
Lehman/Whiting moved to adjourn to Wednesday, August 7, 2013 at 7:00 p.m. Motion carried
5-0.
Official Proceedings of the July 29, 2013
Shakopee City Council Page 6
Meeting ended at 9:41 p.m.
Jttlie A. Linnihan
Finance Director/City Clerk
Kim Weckman
Recording Secretary