HomeMy WebLinkAbout4.F.2. Approval of Minutes: August 7, 2013 and August 20, 2013 ��� Consent Business 4. F. 2.
�i! i;1tCC)1*i f'
TO: Mayar and City Council
Mark McNeill, City Administrator
FROM: Julie Linnihan, Finance Director/Ciry Clerk
DATE: 09/03/2013
SUBJECT: Minutes of August 7, 2013 and August 20, 2013. (F)
Action Sought
Move to approve the minutes of August 07, 2013 and August 20, 2013.
Attachments: 08-07-13 Citv Council Minutes
08-20-13 Citv Council Minutes
OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL
REGULAR SESSION SHAKOPEE,MINNESOTA AUGUST 07,2013
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1. Roll Call
Mayar 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.
Absent:
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; Samantha DiMaggio, ',
Economic Development Coordinator; Jamie Polley, Parks, Recreation&Natural Resource '�,
Director; Jeff Tate, Police Chief; and Jim Thomson, City Attorney
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2. Pledge of Alle�iance '
3. Annroval of the A�enda
Mr. McNeill asked to move item 10.F.2, Setting Public Hearing for the Issuance of Solid Waste '
Revenue Bonds to Recovery Technology Solutions, LLC,to the first item under General
Business. Schurman/Clay moved to approve the agenda as amended. Motion carried 5-0.
4. Consent Business
Whiting/Schurman moved to approve the Consent Agenda. Mr. McNeill read the Consent items.
Motion carried 5-0.
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4.A.1 Whiting/Schurman moved to authorizing distribution for comment and posting of the '
draft EAW far Opus' development of property identified currently as Outlot 1,Valley Park '
Business Center First Addition. (Motion carried under the Consent Agenda) ,
4.B.1 Whiting/Schurman moved to declare 14 squad cages, 9 pair of window bars, 9 molded
plastic transport seats and 17 computers mount/docking stations as surplus. (Motion canied ;
under the Consent Agenda) ,
4.C.1 Whiting/Schurman moved to direct staff to install stop signs on Mathais Road with the '
intersection of Alden Avenue. (Motion carried under the Consent Agenda)
4.C.2 Whiting/Schurman moved to authorize execution of Amendment Number 3 by and
between the City of Shakopee, and Foth Engineering for future consulting engineering services.
(Motion carried under the Consent Agenda) '
4.C.3 Whiting/Schurman moved to determine the existing overhead power lines on 4th Avenue
from Shenandoah Drive to approximately 900 feet east to be relocated and placed underground.
(Motion carried under the Consent Agenda)
Official Proceedings of the August 07,2013
Shakopee City Council Page 2
4.C.4 Whiting/Schurman moved to declare as surplus property the 2006 Ford Crown Victoria,
Unit#0400,VIN: 2FAHP71 WX6X157321; 2009 Ford Crown Victoria,Unit#0094, VIN:
2FAHP71V99X139789; 2009 Ford Crown Victoria, Unit#0095,VIN: 2FAHP71V59X139790;
2009 Ford Crown Victoria,Unit#0096, VIN: 2FAH71V79X139791; 2005 Ford Crown Victoria;
Unit#153,VIN: 2FAHP71 W85X157551 (Motion carried under the Consent Agenda) �
4.C.5 Whiting/Schurman 1. Moved to authorize the purchase of one new aerial truck from �
Rosenbauer Minnesota LLC. for the price of$935,096.00. The funding to be expended from the i
Capital Equipment Internal Service Fund. 2. Move to declare the 1994 Simon Duplex Aerial �
Tntck as surplus equipment so that it may be put up for sale. (Motion carried under the Consent
Agenda)
4.C.6 VJhiting/Schurman offered Resolution No.7336, a resolution which accepts the bid from
Northwest Asphalt, Inc. for the Valley View Road Improvements Project No. 2012-7 for a cost
of$603,079.09, approve a 5%contingency amount on this project for use by the City Engineer
in authorizing change orders or quantity adjustments on this project and authorize the appropriate
City officials to execute an extension agreement with WSB &Associates, Inc.to perform !
construction staking services on the Valley View Road Improvements Project. (Motion carried
under the Consent Agenda)
4.C.7 Whiting/Schurman moved to accept the quote from Gopher State Sealcoat, Inc. for the
price of$49,683.78 and authorize staff to proceed with the 2013 Trail Sealcoat Project. Funds to ;
be expended from the 2013 Park Maintenance Budget. (Motion carried under the Consent
Agenda) �
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4.C.8 Whiting/Schurman moved to authorize the purchase of one new John Deere 5085 Tractor
and Snowblower from Ag Power Enterprise, Inc. for the price of$57,952.34, one new Tiger
Mower from Titan Machinery for the price of$9,493.71 and one new V-Plow from Schilz
Ornamental Iron,Inc. for the price of$5,557.50. The funding for the tractor and mower to be ,
expended from the Surface Water Fund and the Snowblower and V-Plow to be expended from I
the Capital Equipment Internal Service Fund. (Motion carried under the Consent Agenda)
4.C.9 Whiting/Schurman 1. Move to authorize the purchase of one new car wash from NuStar '
for the price of$50,376.00 with the funding to be expended from the Capital Equipment Internal
Service Fund. 2. Move to authorize the listed building repairs for the combined price of
$38,587.00 with the funding to be expended from the Government Building Asset Internal
Service Fund. (Motion carried under the Consent Agenda) :
4.C.10 Whiting/Schurman moved to approve a suspension of City Code Sec. 10.60,Noise !
Elimination and Noise Prevention, Subd. 3, Hourly Restrictions on Certain Operations, D,
allowing work beginning on August 12, 2013 and continuing only until the County's
Microsurfacing project is completed, and directing staff to publish notice of the suspension terms ',
with the conditions as recommended by staff. (Motion carried under the Consent Agenda) 'I
4.D.1 Whiting/Schurman moved to accept,with regret,the resignation of Shawn Remme from '
the position of paid-on-call firefighter, effective July 15,2013. (Motion carried under the
Consent Agenda)
4.D.2 Whiting/Schurman moved to approve the attached job description for the position of
Planner II and authorize the promotion of Kyle Sobota to this position,effective August 8,2013,
Official Proceedings of the August 07,2013
Shakopee City Council Page 3
at Step D of Grade 8 of the 2013 Non-Union Pay Plan. (Motion carried under the Consent
Agenda)
4.D.3 Whiting/Schurman moved to authorize the hiring of Alfredo Almendarez and Brian ;
Bermel as paid-on-call firefighters. (Motion carried under the Consent Agenda)
4.E.1 Whiting/Schurman moved to approve the Parks and Recreation Advisory Boards
recommendation to name Parcel 75 Park/Dog Park Southbridge Community Park. (Motion
carried under the Consent Agenda)
4.E.2 Whiting/Schurman moved to authorize the appropriate staffto enter into an agreement '
with WSB in the amount not to exceed$58,100 to prepare the final design and specifications for '
Parce175 (Southbrige Community Park). (Motion carried under the Consent Agenda)
4.F.1 Whiting/Schurman moved to approve the bills in the amount of$793,628.89 and i
electronic transfers in the amount of$1,246,031.74 for a total of$2,039,660.63. (Motion carried j
under the Consent Agenda)
4.F.2 Whiting/Schurman moved to approve the minutes from July 16,2013. (Motion carried
under the Consent Agenda)
4.F.3 Whiting/Schurman moved to approve to not waive the monetary limits on the tort
liability for the upcoming Property and Liability insurance renewal. (Motion carried under the
Consent Agenda) i
4.F.4 Whiting/Schurman moved to set a hearing for Tuesday, September 3, 2013,at 7:00 p.m., !I
or thereafter,to review the actions of Magnum Management Corparation dba Valleyfair(Motion '�,
carried under the Consent Agenda) ��
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4.F.5 Whiting/Schurman moved to approve the application and grant an off sale liquor license
to Shakopee 1997 LLC, dba Cub Liquor, 1262 Vierling Drive, and rescind the current liquor
license held by Crossroads Liquor at this same address. (Motion carried under the Consent
Agenda)
4.F.6 Whiting/Schurman moved to approve the application and grant a massage therapist ;
license to Jessica Snyder. (Motion camed under the Consent Agenda) '
4.F.7 Whiting/Schurman moved to approve the requested revisions for adjustment of the '
existing Joint Powers Agreement with Scott County. (Motion carried under the Consent Agenda)
5. Reco�nition 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. No one responded. '
6. Public Hearin�
6.A Consideration of Minnesota Investment Fund Application for Comnass Datacenter,
LLC.—Res.No. 7339
Whiting/Lehman moved to open the public hearing. Motion carried 5-0.
Official Proceedings of the August 07, 2013
Shakopee City Council Page 4
Samantha DiMaggio, Economic Development Coordinator said the Department of Employment �
and Economic Development has tentatively committed to a Minnesota Investment Fund (MIF)
forgivable loan of up to$90,000 for Compass Datacenter, LLC.
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Funds are awarded to local units of government who provide loans to assist expanding ;
businesses. Cities, counties,townships and recognized Indian tribal governments are eligible for ,
this fund. If awarded, DEED will provide a grant to the City of Shakopee. The City will use
these funds to issue a forgivable loan to Compass Datacenter, LLC.
All projects must meet minimum criteria for private investment,number of jobs created or
retained, and wages paid. Compass will be required to create 18 new full time equivalent
positions within the first two (2)years of operation. A minimum wage of$14.50 will be
required.
At least 50 percent of total project costs must be privately fmanced through owner equity and
other lending sources. Compass will be required to make a minimum capital investment.
Ms. DiMaggio said if Compass Datacenter, LLC. does not meet the job, wage and investment :
goals,they will be asked to repay the funds.
Staff recommends passing Resolution No. 7339, Authorizing the submittal of the Minnesota �
Investment Fund application. The Council should also enter into a Grant Agreement with DEED ',
which allows the issuance of a forgivable loan to Compass Datacenter, LLC. j
Ms. DiMaggio also stated there is no direct financial impact on the City as a result of the MIF '
loan, as these are state funds. ,
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Mayor Tabke asked if there was anyone in the audience that wished to speak at the public '
hearing.
Jordan Olson, 249 Mound St.,asked that the Council not pass the Resolution because Council '
has already abated their taXes.
Whiting/Schurman moved to close the public hearing. Motion carried 5-0.
Clay/Whiting offered Resolution No. 7339,A Resolution authorizing and approving a Minnesota ',
Investment Fund Application, Grant Agreement,and Forgivable Loan in connection with '
Compass Datacenter, LLC. Motion passed 4-1 with Cncl. Lehman in dissent.
6.B Consideration of Tax Abatement Res. No. 7337,a Minnesota Investment Fund
For�ivable Loan, and Sewer Access Charge Credits for Shutterflv,Inc. '
Schurman/Lehman moved to open the public hearing. Motion carried 5-0. '
Samantha DiMaggio provided background about Shutterfly,Inc's business and what they '
produce. She said they are considering a site in Shakopee. The site under consideration in '
Shakopee is in the Dean Lakes development. The site is 22.8 acres in size;the building is
planned to be 217,000 square feet and would provide space for new and expanded
production/manufacturing operations,a call center,and general administrative functions.
Shutterfly is proposing to break ground on the site at the end of 3rd Quarter 2013 with
construction completion planned for 3rd Quarter 2014.
Official Proceedings of the August 07, 2013
Shakopee City Council Page 5
The total proposed project investment is $60,366,714,of which Ryan Co. will invest
approximately$26 million,while Shutterfly will invest$34 million. Shutterfly will enter into a
triple net lease with Ryan Companies, which requires them to pay rent as well as all taxes,
insurance, and maintenance expenses that arise from the use of the property.
Shutterfly anticipates the creation of approximately 329 jobs over the next 2-5 years, with 201 of
those being hired in 2014. The average annual wage per hour is $18.78. It also anticipates an '
additiona1425,000 annual hours to be filled by seasonal employees. These seasonal jobs equate i,
to an additional 204 full time equivalent positions. Annual payroll at full ramp up is estimated at '
just under$12.9 million.
Shutterfly has asked for 100%abatement for a nine(9)year term. Based on the preliminary
building assessed values of between$12 million, and$16 million, the City of Shakopee's '
estimated abatement value is between$569,078 to $758,771 over the nine(9)year term.
Up to 60 Metropolitan Council sewer access charges, and city Sewer access charge credits have
been offered as part of the incentive package. The total value for these incentives is ;
approximately$174,600. '�
Shutterfly has also requested a 100%nine(9)year abatement from Scott County,which would ,
have a value between$551,159 to $734,878 over the nine year term. Additionally County staff �
has been working with Shutterfly to discuss utilizing the County's fiber infrastructure. The '�
estimated cost to construct a redundant fiber loop would be approximately$80,000 and the ;
electronics to initiate the services at$20,000, for a total of$100,000. Access Communications ,
has agreed to provide fiber connectivity services,which would provide 10 gigabytes of service, �
at a monthly fee of$1,000.
The Miruiesota Department of Employment and Economic Development(DEED)has
preliminarily committed to a Minnesota Investment Fund (MIF)forgivable loan of up to
$1,000,000, and up to $400,000 in the Minnesota Job Skills Partnership(MJSP)matching grant
program.
The Abatement will have a maximum term of nine years and shall be collected in the years 2016 '
through 2024. The maximum abatement amount for the City to consider would be$758,771.
More detailed information regarding abatement from the City's financial consultant Springsted is
attached.
This would be a"Pay As You Go" arrangement,meaning that if Shutterfly, Inc. does not pay '
property t�es for whatever reason, or if the amount of taxes paid varies for any reason, it '
impacts the abatement amount back to the company. '
Raymond Montalvo,Corporate Services Senior Director of Shutterfly, discussed the process his li
company has gone through to seazch for a new site for Shutterfly. �
Cncl. Lehman wanted clarification of the abatement process.
Julie Eddington,Attorney at Kennedy and Graven,discussed the process of abatement granted
by a city.
Official Proceedings of the August 07,2013
Shakopee City Council Page 6
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Jordan Olson,249 Mound St., doesn't think Council should consider the abatement not knowing
if Shutterfly will be in business 10 years from now. He doesn't think it's a wise investment for
the City to abate Shutterfly's taxes.
Kevin Gillick, 136 6�'Ave., asked Council what their criteria is for tax abatement. He also �
wanted to know if there was a threshold the Council had for tax abatement. I
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Ms. DiMaggio explained what she has currently done since beginning her position with the City
four months ago.
Mr. Gillick also asked at what point the City will say that they have given companies enough ,
abatement. He is wondering if mare companies are coming to Shakopee because the City
continues to give out tax abatement.
Mayor Tabke and Cncl. Clay discussed the Cities position regarding tax abatement. Mayor
Tabke also discussed all the other businesses that have come to Shakopee and haven't asked for
tax abatement. Cncl. Lehman provided Council the P&L (profit and loss margin) of Shutterfly.
Mr. McNeill discussed the Business Subsidy Policy that the City adopted in May, 2012.
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Sean Nelson asked Cncl. Lehman what a P&L is that he talked about earlier and if Council
should be making t�abatement decisions without a the profit and loss projections of a business. '
Cncl. Lehman said that Council should not be making decisions without looking at a business's ;
profit and loss report. '
Schurman/Clay moved to close the public hearing. Motion carried 5-0. ;
Whiting/Schurman offered Resolution No. 7337,A Resolution granting a Property Taac �
Abatement, Sewer Access Charge Credits,and a Minnesota Investment Fund Forgivable Loan '�
for Shutterfly,Inc. in the City of Shakopee. Motion carried 4-1 with Cncl. Lehman in dissent.
7. Business removed from the Consent Agenda will be discussed at this time '
None
8. Recess for Economic Development Authoritv Meetin� '
Schurman/Clay moved to recess for the Economic Development Authority Meeting. Motion
carried 5-0.
9. Reconvene '
10. General Business '
10.F.2 Settin�Public Hearin�for the Issuance of Solid Waste Revenue Bonds to Recoverv '
Technology Solutions,LLC.—Res.No. 7338
Julie Eddington,Attorney at Kennedy and Gravin, stated that Recovery Technology Solutions,
LLC ("RTS")has asked the City of Shakopee to issue tax-exempt exempt facility revenue
bonds in the amount of up to$17,500,000 to finance the construction of an asphalt shingle
facility.
Official Proceedings of the August 07, 2013
Shakopee City Council Page 7
The tax code allows tax-exempt bonds to be issued for this type of solid waste facility if the
facility is owned by a public entity. To meet this requirement,RTS proposes to purchase the
property upon which the project will be built and provide the City with a ground lease interest in
the property. In return, the City will lease the property back to RTS. RTS would construct the
project,and pay all debt service on the bonds, and all costs related to the bonds. It would be '
solely responsible for the debt service and related costs. '
The ground lease interest in the property provided to the City is for financing purposes only;the
City would not be responsible for the property or the facility to be built on the property. Further, �
the City would not be responsible for any potential hazardous materials created, ar ;
environmental contamination caused by the asphalt shingle processing to be performed within
the facility.
RTS Representative Daniel Wattenhofer provided Council with an overview of their facility.
Whiting/Clay offered Resolution 7338, A Resolution calling for a public hearing regarding a
proposed project and the issuance of revenue bonds to finance the costs thereof under Minnesota
Statutes, Sections 469.152 through 469.1655, as amended; granting preliminary approval thereto;
establishing compliance with reimbursement regulations under the internal revenue code of
1986, as amended; and taking certain other actions with respect thereto. Motion carried 4-1 with ',
Cncl. Lehman in dissent. '
10.B.1 Discussion of Pet Sho Ordinance
Police Chief Jeff Tate stated that for several years the police department has responded to ;'
numerous complaints surrounding the condition of a particular pet shop in Shakopee. Chief Tate �
said that past inspections were very thorough,often times done in concert with a full-time
investigator from the Animal Humane Society in Golden Valley, staff quickly realized that no
crime was present and was left with very few options to resolve the situation.
Multiple cities in the metro area have ordinances specific to pet shop retailers. These ordinances �
often vary greatly in terms of how specific they are when it comes to conditions inside the shop ,
itself. Staff has begun reviewing these ordinances to determine their potential applicability here '
in Shakopee. If council wishes to move in this direction, staff would work with the Animal
Humane Society in Golden Valley to review what works in other cities and present options to the
council later this fall.
Keith Streff,Animal Humane Society Investigator, explained that the state laws in place for '
animal welfare are very broad and arbitrary and open for more specialized or consistent language
within municipal governments. He said it's not the intent of the state to regulate pet shops that
are operating cities. '
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Tonia Richter, 126 Lewis St., asked the City to create and set guidelines for anyone who wishes '�
to conduct the sale of animals in Shakopee. :
Kathy Stafford, 2328 Eagle Creek Blvd., stated that she contracted a bacterial infection which
she believes was the result of visiting the Eagle Pet Store in Shakopee. She is asking the Council
to also look into setting guidelines for anyone conducting the sale of animals in Shakopee.
Official Proceedings of the August 07, 2013
Shakopee City Council Page 8
Megan,who works at Main Street Vet Clinic, 536 lst Ave., is asking the City to draft an !
ardinance for the sale of animals. She supplied two ordinances from the City of Los Angeles and i
San Diego, CA, as ordinances that could be used to draft an ordinance in Shakopee.
Agatha Smolecki, 724 Bradford Pl, Eagan, a supporter for Minnesota Voters for Animal I
Protection, said she toured the Eagle Pet Store because of the comments on Facebook and what I
she had seen on the news. She stated the store was dirty and the animals were not cared for. She I
encourages the Council to pass some type of ordinance. �'
Jordan Olson, 249 Mound St., commented that the owner of Eagle Pet Center has cooperated
with police and has done everything that has been asked of him. Mr. Olson said he is very weary
of passing an ordinance when the problem at the Eagle Pet Center has been resolved.
Dr. Ron Gaskin, Main Street Vet Clinic, 536 1St Ave. E., said that if veterinary clinics need to
have conditional use permits, he thinks the city should require pet stores to be license. '
Michael Leek,Community Development Director,cautioned Council regarding the use of a ;
conditional use permit approach rather than a licensing ar ordinance approach. ,
Chief Tate said that he will work with staff in reviewing current ordinances in other cities to craft
a draft ordinance for the City and bring it back to Council later in the fall for review.
Lehman/Clay moved to recess for five minutes. Motion carried 5-0.
Mayor Tabke reconvened the meeting at 9:10 p.m. '
10.D.1 Elected Officials Salaries for 2014—2015
Kris Wilson,Assistant City Administrator, stated that the Mayor is paid an annual salary of
$7,854 and City Council members are paid an annual salary of$6,715. The last time elected '
official salaries were increased was January l,2006, so these amounts will have been in place for
eight years. A salary increase was discussed in September of 2011,but at that time the Council �
opted to make no changes. ,,
According to state law, any change in elected official pay must be adopted prior to the governing
body's election and take effect after the election, at the start of the new terms. As a result,any '
increase decided upon now would take effect January l,2014. ,
Ms. Wilson said the wages or salaries paid by other metro-cities of similar size is a common and
significant factor in establishing what the City pays its part-time and full-time employees. '
Therefore it seems a logical factor to consider when setting elected official salaries as well. ��
Ms. Wilson provided a list of the populations and elected official salaries of other metro-area
cities. The data shows that Shakopee's elected official salaries are clearly below average and that ';
there is less of a difference between the mayor and council salaries here than in other cities. '
Currently,the mayor earns approximately 15%more than council members. The norm in the
metro area is to pay a mayor between 20 and 25%more than council members.
Ms. Wilson said that over the past eight years,the City has a used a group of 10 cities as a
comparison group for setting employee wages. This group includes S cities larger than Shakopee
and 5 cities that are smaller. Cities were selected by their geographic proximity to Shakopee as
Official Proceedings of the August 07,2013
Shakopee City Council Page 9
well as their stage of development. The average mayor's salary is $9,621 and the average council
salary is $7,146.
If Council finds this to be a valid comparison group for establishing elected official pay, staff
would recommend rounding up slightly and setting salaries at$10,000 for mayor and$7,500 for
council. Given the infrequency with which Council salaries have typically been adjusted, setting
the new amounts slightly above average seems reasonable.
After a long discussion regarding Mayor and Council salaries, Mayor Tabke asked for a motion.
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Clay/Whiting moved to direct staff to create and ordinance to change Council pay to $7,500 for j
Councilmembers and$15,000 for Mayors. Discussion followed. '
Cncl. Schurman said she believes that it's the obligation of people in society to contribute to
their community. She doesn't believe that raising the pay is the right thing to do. ;
Cncl. Clay feels the pay doesn't come anywhere near the time spent at meetings and prepping for
meetings.
Cncl. Whiting thinks the City needs to look ahead to where it's going. Moving ahead he doesn't
believe the wage proposed will move for a long time.
Cncl. Lehman feels that the increase proposed is outrageous.
Mayor Tabke asked for a vote on the motion.
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Motion carried 3-2 with Cncl. Lehman and Cncl. Schurman in dissent. !
10.F.1 Consideration of Process to Appoint Interim Council Member
Mr. McNeill said that at Council's July 29th meeting, Council accepted, with the regret,the ',
resignation of Councilor Pamela Schurman. Her resignation will become effective after August
31, 2013.
Because of the relatively brief period of time that an interim council member would be needed to ',
fill the vacancy,the Council gave direction that only former Councilors who have served within
the previous "8 to 10 years" should be considered. The Council also indicated that it would not ',
consider any of those who would be filing for one of the available two Council seats to be '
considered at the November Sth election. The City Administrator was directed to determine who
would be eligible, and then contact the eligible candidates to gage their individual levels of ',
interest.
After reviewing the previous Council records,the individuals who would qualify under those '
criteria are Patrick Heitzman,Terry Joos, Steve Menden,and Joseph Helkamp.
Mr. McNeill spoke with all four of the potential candidates. Of the four Pat Heitzman and Terry
Joos were interested in the position. Steve Menden and Joseph Helkamp declined the offer.
Clay/Lehman moved to appoint Pat Heitzman to City Council on September 1,2013. Motion
carried 4-1 with Cncl. Schurman abstained.
Official Proceedings of the August 07, 2013
Shakopee City Council Page 10
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10.F.3 Discussion of Shakonee Priorities for Scott Countv Association of Leadership &
Ef�ciencv (SCALE)Strate�ic Plan i
Mr. McNeill said that periodically SCALE updates its Strategic Plan. Another discussion of the
Strategic Plan will be held at the August 9th SCALE meeting. �
Each of the SCALE members have been asked to discuss and identify their three top three
priorities for SCALE as it revamps its Strategic Plan. The individual priorities will be discussed,
and set for SCALE as a whole.
Mr. McNeill provided a copy of the most recent Strategic Plan will be provided to the CounciL ,
Council agreed their top three priorities are:
1. Economic Development: continuation and expansion of First Stop Shop and '
related economic development activities.
2. Transportation: (Primary)Advocate for US 169 as a"Corridar of Commerce" '
under new MNDOT program, (and include rail and transit), (Secondary)Plan and '
advocate for identified County transportation corridors—I-35; TH 13 and 41; CR
8, 17, 21,42 �
P lic Safe : C ntinue to investi ate incr
3. ub ty o g eased collaboration opportumties for
fire and public safety. '
11. Council Members' Reports j
Cncl. Schurman attended the Scott Communities Transit Review Board. Discussion was about
merging with Minnesota Valley Transit Authority, Southwest Transit and Met. Council Met '
Transit. The recommendation is to pursue further conversation of the Minnesota Valley Transit
Authority. i
Cncl. Lehman said he participated in Night to Unite. He also attended Cars for Courage in
which he drove a stock car for Mayor Tabke. He also attended events at Derby Days. He said '
there was a large venue on Saturday which will need to be looked at next year.
Cncl. Clay attended the Shakopee Public Utilities Commission meeting. They are continuing
with hydrant flushing. He also discussed a few power outages.
Cncl. Whiting attended the first Shakopee Diversity Alliance International Festival in ,
conjunction with Shakopee Derby Days. He also attended Night to Unite.
Mayor Tabke attended the Holiday Inn Express ribbon cutting on July 25th. On July 26�'he
attended the Transportation Economic Development meeting with SCALE. Scott County is '
contemplating a quarter cent sales tax for transportation within the county. He also attended
several events at Derby Days. On August 2°d he attended the ground breaking ceremony for '
Progressive Dental. On August 6�'he attended Night to Unite. Then on August 7,he and other
staff inembers from the City and County met with Datacard and they announced that they are
officially moving to Shakopee.
Official Proceedings of the August 07, 2013
Shakopee City Council Page 11
12. Other Business
None
13. Adiourn
Whiting/Clay moved to adjourn to Tuesday, August 20, 2013 at 7:00 p.m. Motion carried 5-0.
Meeting ended at 10:19 p.m.
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� Julie A. Linnihan
Finance Director/City Clerk
Kim Weckman
Recording Secretary
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OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL
ADJ. REGULAR SESSION SHAKOPEE,MINNESOTA AUGUST 20,2013
1. Roll Call
Mayor Tabke called the meeting to order at 7:00 p.m. and roll call was taken. '
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Present: Mayor Brad Tabke, Councilors Pamela Schurman,Matt Lehman, Steve Clay and Jay
Whiting.
StaffPresent: 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 Alle�iance ,
3. Auproval of the A�enda
Mark McNeill advised Council that there is a proposed revised agenda. Mr. McNeill said that '
4.C.2,Award a Contract for the Valley Park Business Center Improvement Project No. 2013-6,
Res.No. 7343 has been updated. Item 4.F.4, Application for Tobacco License eCig Store of �
Shakopee LLC was also updated with an address change. Whiting/Schurman moved to approve !
the agenda as amended. Motion carried 5-0.
3.A RecoQnition of Retiring Council Member Pamela Schurman
�
Mayor Tabke presented Cncl. Schurman with a plaque for her years of service on the Council. '
4. Consent Business
Cncl. Lehman asked to remove from the Consent Agenda,4.C.2,Award a Contract for the
Valley Park Business Center Improvement Project No. 2013-6,Res.No. 7343 and 4.F.3,
Autharizing Out-of-State Travel for Mayor Brad Tabke,Res.No. 7340. '
Whiting/Lehman moved to approve the Consent Agenda. Mr. McNeill read the Consent items.
Motion carried 5-0.
4.A.1 Whiting/Lehman offered Resolution No. 7342, a resolution approving the Final Plat of '
Dean Lakes Tenth Addition,and move its adoption. (Motion carried under the Consent Agenda) '
4.B.1 Whiting/Lehman moved to authorize the payment of$1,500 from the police department's
drug forfeiture fund to the Meth Task Force for anti-drug presentations in the Shakopee schools
for the 2013-2014 school year. (Motion carried under the Consent Agenda)
4.C.1 Whiting/Lehman moved to authorize the appropriate City officials to execute a Pipeline
Crossing Agreement with Union Pacific Railroad Company. (Motion carried under the Consent
Agenda)
Official Proceedings of the August 20, 2013
Shakopee City Council Page 2
4.C.2 Removed from the Consent Agenda
i
4.C.3 Whiting/Lehman moved to authorize the appropriate City officials to sign the easements
from St. Francis Regional Medical Center. (Motion carried under the Consent Agenda)
4.D.1 Whiting/Lehman offered Ordinance No. 871,an ordinance of the City of Shakopee '
amending Shakopee City Code Section 2.41 dealing with criminal history background checks. '
(Motion carried under the Consent Agenda) ;
4.D.2 Whiting/Lehman moved to recognize Bradley Purrington and Alexander Dauphen's !
successful completion of the two-year probationary period required of paid-on-call firefighters ,
and grant them regular status. (Motion canied under the Consent Agenda) '
4.D.3 Whiting/Lehman offered Resolution No. 7345, a resolution amending Resolution Na ',
7260, adopting the 2013 pay plan for certain non-union employees of the City of Shakopee, and ;
move its adoption. (Motion carried under the Consent Agenda) ,
4.D.4 Whiting/Lehman offered Resolution 7347, a resolution adopting a Policy on Uniforms for
Employees of the Fire Department and Amending Resolution No. 6336,a resolution setting a ',
Uniform/Clothing Policy, and move its adoption. (Motion carried under the Consent Agenda) i
4.E.1 Whiting/Lehman moved to approve the Shakopee Youth Hockey Association Advertising II
and Concessions Stand Agreements for the 2014 and 2015 seasons. (Motion carried under the '!
Consent Agenda) �
4.F.1 Whiting/Lehman moved to approve the bills in the amount of$2,152,849.64 and
electronic transfers in the amount of$448,747.86 for a total of$2,601,597.50. (Motion carried
under the Consent Agenda) '
I
4.F.2 Whiting/Lehman moved to approve the minutes from July 29, 2013. (Motion carried �
under the Consent Agenda)
4.F.3 Removed from the Consent Agenda
4.F.4 Whiting/Lehman moved to approve the application and grant a tobacco license to eCig
Store of Shakopee, LLC, 185 1 st Avenue East . (Motion carried under the Consent Agenda) ,
4.F.5 Whiting/Lehman moved to authorize an amendment to Section 3.7 , and the "Recitals" �
section of the Development Agreement with Rosemount. Inc. (Motion carried under the Consent ',
Agenda) !
4.F.6 Whiting/Lehman moved to approve the application and grant a temporary on-sale liquor
license to the Shakopee Area Catholic Schools for October 4,2013 at 2700 17th Avenue East. ;
(Motion carried under the Consent Agenda)
Casey Hankinson,vice president of Development for Ryan Companies, commended the City '
staff for the work they did with Shutterfly project. He said that a groundbreaking ceremony will
be held on September 10�h at 11:00 a.m.
Official Proceedings of the August 20,2013
Shakopee City Council Page 3
5. Reco�nition of Involved Citizens bv Citv Council.
Mayor Tabke asked if there was anyone in the audience who wished to speak on an item which '�
was not on the Agenda. No one responded. �I
6. Public Hearings: '
6.A Public Hearin�for Vacation of Public Drainage and Utilitv Easements on propertv ;
located at 1624 Weston Court(Apple Ford Shakonee site) and 1684 Weston Court-Res. No.
7341
Whiting/Lehman moved to open the public hearing. Motion carried 5-0. '
Michael Leek,Community Development Director, stated that Gulbrandson Real Estate, LLP has ,
submitted an application for vacation of public drainage and utility easements on property i,
located at 1624 Weston Court(Apple Ford Shakopee site)and 1684 Weston Court(site upon
which the Apple Ford Shakopee dealership is proposing an expansion).
The easements referenced in this request are located under the existing building,would be
located under the proposed expansion area, along with other locations where they no longer are
needed. As part of the minor subdivision application which was recently submitted and is
currently being reviewed by staff,the applicant will be providing new drainage and utility
easements as requested by city and Shakopee Public Utility Commission staff.
The required ten-day notice of the public hearing was provided by publication in the Shakopee
Valley News. Comments ftom staff inembers and utilities, as well as a recommendation for
approval of the vacation from the Planning Commission, will be presented to the City Council '
for consideration.
The applicant/property owner has recently revised the site plan by eliminating the car wash '
proposed on the southerly portion of the lot,and have scaled back their proposed expansion in
that there is no encroachment over the drainage and utility easements between Lot 1 &Lot 2,
Block l, Shakopee Valley Marketplace West. They have subsequently withdrawn that segment ',
of their request. ;
Mayor Tabke asked if there was anyone in the audience that wished to speak at the public II
hearing. No one responded. '
Whiting/Clay moved to close the public hearing. Motion carried 5-0.
Lehman/Schurman offered Resolution No. 7341, a resolution approving a vacation of public
drainage and utility easements on property located at 1624 Weston Court(Apple Ford Shakopee
site) and 1684 Weston Court(site upon which the Apple Ford Shakopee dealership is proposing '
an expansion),and move its adoption. Motion carried 5-0.
6.B. Vacation of Cei�tain Drainage and Utility Easements in Onus MVW and Onus
MVW 2nd Addition-Res.No. 7346
Schurman/Whiting moved to open the public hearing. Motion carried 5-0. !
Mr. Leek said Clark Engineering,representing SanMar,has submitted an application for
Official Proceedings of the August 20,2013 '�
Shakopee City Council Page 4
vacation of portions of drainage and utility easements in the Opus MV W and Opus MV W 2nd !
Addition plats.
The purpose of this application is to prepare far a minor subdivision to adjust a lot line to create �I
a more marketable parcel southeast of SanMar's building that is zoned Light Industry(I-1). The
proposed parcel is 9.30 acres. The proposed vacation is for utility easements adjacent to the ',
current lot line. Clark Engineering has already applied for a minor subdivision that contemplates
the vacation of these specific easements, which would make the proposed lot more marketable
for future industrial development. Additional easements that comply with Engineering Design i
Criteria are proposed as part of the minor subdivision.
The Planning Department provided notice to other City departments and utility companies. At '
this time there are no utility services located in these easements. All comments received during '.
the review period are in favor of the vacation,provided acceptable drainage and utility easements . '
are dedicated as part of the minor subdivision adjacent to the relocated lot line. !
At the August 8th meeting of the Planning Commission,the Planning Commission unanimously
recommended that the City Council approve the vacation request as presented. I
�
Mayor Tabke asked if there was anyone in the audience that wished to speak at the public ,
hearing. No one responded. �'
Whiting/Lehman moved to close the public hearing. Motion carried 5-0. ',
Whiting/Clay offered Resolution No. 7346, a resolution approving the vacation of certain
Drainage and Utility Easements in both Opus MVW and Opus MVW 2nd Addition, subject to I
the dedication of the drainage and utility easements as proposed by the minor subdivision. '
Motion carried 5-0.
7. Business removed from the Consent A�enda
4.C.2 Award a Contract for the Vallev Park Business Center Imnrovement Proiect No.
2013-6,Res.No. 7343
Cncl. Lehman asked what the update was in the memo. Bruce Loney,Public Works ;
Director/Engineer stated that per the agreement with Opus and Emerson the City needed to have �
them review the bids which happened after the original memo was sent out. Discussion took
place with Opus and Emerson which is stated in the updated memo. '
Whiting/Schurman offered Resolution No. 7343,a resolution which awards a contract to '
Northwest Asphalt, Inc., and approved a 5%contingency amount on the project for use by the !
City Engineer in Authorizing change orders or quantity adjustments,and authorize the '
appropriate City Officials to execute an extension agreement with WSB&Associates, Inc.to '
perform construction engineering services. Motion carried 5-0.
4.F.3 Authorizing Out-of-State Travel for Mavor Brad Tabke—Res.No. 7340
Cncl. Lehman asked for the removal of this item for discussion, He stated that he believed the
out of state travel was against the current city policy that requires authorization ahead of time.
Mayor Tabke explained his position regarding the trip to meet the CEO of Shutterfly to discuss
the opening of Shutterfly in Shakopee.
Official Proceedings of the August 20,2013
Shakopee City Council Page 5
Jim Thomson,City Attorney, said that what Cncl. Lehman is referring to is a policy and not an
ordinance or law. He also advised that Council had the authority to approve a retroactive
approval under the policy.
Clay/Whiting offered Resolution No. 7340, A Resolution Authorizing Out-of-State Travel for
City Business by Mayor Brad Tabke. Motion carried 4-1,with Cncl. Lehman in dissent. �
8. Recess for Economic Development Authority Meeting
Clay/Lehman moved to recess for an Economic Development Authority meeting. Motion �
carried 5-0.
9. Reconvene
Mayor Tabke reconvened the meeting at 7:45 p.m.
10. General Business
10.D.1 Establishin�Elected Officials Salaries for 2014—Ordinance No. 872 '
Kris Wilson,Assistant City Administrator, said at the August 7 City Council meeting,the �
Council discussed the current salaries paid to elected officials and directed staff to return with an
ordinance to increase the Mayor's salary from$7,854 to$15,000 per year and Councilpersons'
salazies from$6,715 to $7,500 per year. Elected official salaries were last increased January 1,
2006.
Whiting/Clay offered Ordinance No. 872, an ordinance amending City Code Chapter 2, Section I�
2.13,pertaining to the salaries of Mayor and Councilpersons. Motion carried 3-2 with Cncls. i
Lehman and Schurman in dissent.
10.F.1 2014 Budget Review
Mr. McNeill explained that the Minnesota legislature enacted a 3% levy limit over the 2013 '
payable levy amount. He also stated that the legislature also created a tax exemption on certain ;
City purchases. The full impact of the sales tax exemption is not known at this time. The other I
item the legislature changed is the formula in which Local Government Aid(LGA) is calculated.
However,even with the new formula, Shakopee will not receive LGA.
Mr. McNeill explained that Council will need to set a preliminary levy for FY 2014 at the
September 3,2013 meeting. Council will also need to determine what debt service levies to �
cancel and what fund position to help pay the expenditures in 2013. '
Julie Linnihan, Finance Director/City Clerk,also stated that the requested action the Council will �!
be asked to approve is a preliminary levy on Tuesday, September 3rd. This levy must be certified
to Scott County,prior to September 15th, 2013.
The requested levy will be the 2013 levy amount($15,333,223),plus an increase of the property '
tax levy limit amount of 3 %($459,997), thus increasing the 2014 requested levy to $15,793,220. ;
Ms. Linnihan said the process will be different from prior years, in that the individual City
departments will not be presenting their line item budgets to Council. The departmental budgets
Official Proceedings of the August 20,2013 ;
Shakopee City Council Page 6 ;
are instead being reviewed at a staff level, and the overall budget, including revenues, !,
expenditures, and fund transfers will be refined during September and October. If necessary, a
workshop for budgetary purposes will be scheduled in October. ;
The final budget will be presented to Council,along with the final property tax levy,at the
December 3rd City Council meeting. ;
Ms. Linnihan discussed updated property values received from Scott County. The Net T�
Capacity for 2013 was$39,030,498. The estimated Net Tax Capacity for 2014 is$40,977,859, an
increase of$1,947,361 or 4.83 %. When a property tax increase is proposed, market value '
increases from the prior year values will result in a lower impact to residents on their 2014
property tax statements. These increased values typically allow for a reduced impact on property '
tax payers (except when a property tax levy is increased). �
She provided the most recent levy rate estimates from Scott County. The increased value that has
been estimated by Scott County will allow for a 3 %property tax levy increase while
maintaining an estimated tax rate slightly less than the 2013 budget year(41.996 in 2013, and
41.214 in proposed 2014) ,.
As noted previously,municipalities will be subject to property t�levy limits for 2014. At this
time,this is only for the upcoming budget year.
i
The Truth in Taxation(TNT)process will continue as in recent years,with the requirement to
hold a portion of the public meeting to discuss the 2014 Budget,prior to December 30th,2013.
At this meeting staff is required by law to include a discussion of the estimated savings that may
be experienced as a result of the sales tax exemption. This discussion will also include whether i
this exemption will result in a property tax levy reduction. ,
Overall budget adjustments from 2013 to 2014 include personnel costs such as increased wages,
health insurance, PERA, as well as a full year cost of the positions approved and added during
2013.
New osition requests are being reviewed by the City Administrator, as he continues meetin '
P g
with staff to prioritize and evaluate their departmental budgets and requests. These will be
discussed with Council at a future date.
Several departments have prepared positions adjustments that reflect changes in the job
responsibilities,work flow,and in preparation for succession planning which will result from
longer term employees who are considering retirement. Also,an increase in salary has been ;
budgeted for the Mayor and City Councilors. I
Overall adjustments to the budget expenditures include a reduction of the building fund
departmental"rental"charges of 5%from the 2013 rate. ,
Equipment rates have been updated for the individual departrnents,with allowances for the I�
newly purchased equipment as well as increases in anticipated replacement costs.
Sales tax adjustments have been only minimal during the preparation of the preliminary budget,
as the MN Department of Revenue is continuing to refine the interpretation of the newly enacted
law.At this time,there will be no sales tax exemption for any departments of the City that
involve activities or services that could be provided by the private sector(i.e.; Community
Official Proceedings of the August 20,2013
Shakopee City Council Page 7
Center), services or work provided through a Joint Powers Agreements,or contractual work for
projects or improvements.
Property and liability insurance rates are also being updated by the League of MN Cities
Insurance Trust, with an estimated 2 to 3 %increase over 2013 premiums. ;
The City initiated several fund transfers in the 2013 budget, and these will continue in 2014.
Scott County has provided the debt service amounts for which the City is allowed to levy in the �
2014 budget process. In 2013 the City did not levy for any of the levy amounts,but instead
continued its past practice of utilizing cash position and fund transfers to pay the annual debt
service payment amounts.
The debt service requirements for 2014 total $1,212,743. The Council will be requested to '
consider levying for some part of this debt service obligation. The 2004B Debt is partially i
covered through the Fire Referendum Levy,proposed in 2014 at$175,000, which is '.
recommended to be increased from the 2013 levy of$150,000. Staff's other recommendation is �
to consider the 2006A debt, as part of the 2014 debt levy. ;
The Council asked for additional information on the City's outstanding debt.
The 2014 Capital Infrastructure plan was discussed at a Council meeting in July. The primary �
projects for the 2014 budget year will be funded through the use of transfers from the General '�
,
fund($750,000),Municipal State Aid funds($1,966,000), special assessments($2,640,000),
SPUC portions($790,000)as well as Federal and County cost sharing. The plans provide for the
bituminous overlays, street reconstruction, CSAH 17 and Vierling Drive Intersection,
Shenandoah Business Park Improvements and the TH 101 Trails. I
11. Council Members' Reports '
Cncl. Whiting attended the school board learning session. There was discussion about offering ',
all-day kindergarten in 2014 and the need to provide space to accommodate it. The School
Board also discussed the future high school. '
Cncl. Clay had no report.
Cncl. Lehman had no report.
Cncl. Schurman had no report.
Mayor Tabke attended Project Community Connect on August 8th. On August 12�h he attended
the Kinder�arten class at the YCMA and attended the Regional Council Mayor's meeting. On
August 13t he attended the ribbon cutting ceremony at Green Meadows Park. On August 17�h
St. Francis sponsored a Bike Ride with the Mayor. He said he also attended the ribbon cutting
ceremony at the Home Choice store,in which the store donated$1,000 to Enigma Teen Center.
12. Other Business
Mr. Loney said there is a final County Rd. 17/Vierling Dr. reconstruction open house on
Wednesday, August 21 St at Country Inn Suites. '
Official Proceedings of the August 20, 2013
Shakopee City Council Page 8
13. Adiourn
Schurman/Clay moved to adjourn to Tuesday, September 3, 2013 at 7:00 p.m. Motion carried 5-
0.
Meeting ended at 8:20 p.m.
j`o . % / � ' ,,�' �.
�1�� /,� { . ,��.�-�1-�,,t.-�`�''
fJulie A. Linnihan
Finance Director/City Clerk
Kim Weckman
Recording Secretary
�