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HomeMy WebLinkAbout7. Approval of Minutes: November 19, 2003 OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE,MUNNESOTA NOVEMBER 19,2003 Mayor Mars called the meeting to order at 6:00 p.m. with Council members Lehman, Joos and Helkamp present and Cncl. Link was absent. Also present were: Mark McNeill, City Administrator; Judith S. Cox, City Clerk, Bruce Loney, Public Works Director/City Engineer; R. Michael Leek (7:00), Community Development Director; Dan Hughes, Chief of Police; Gregg Voxland, Finance Director and Mark Themig, Facilities and Recreation Director. Also Present: Mayor-Elect, John Schmitt and Council-Elect, Steve Menden. The following item was added to the Agenda. Item 2.a. A request to place Material in Shenandoah Business Park. Lehman/Helkamp moved to approve the Agenda as modified. Motion carried 5-0. Mr. Loney reported on the request to place material in the Shenandoah Business Park. Mr. Loney noted he was working on the Viking Steel Road project and therefore, working with George Burkards, Project Manager for United Properties. Mr. Burkards informed Mr. Loney that he had 30,000 cubic yards of material available and he would like a grading permit to place the material on the Business Park site for United Properties; there was no preliminary plat approved for this site, yet. Mr. Loney noted there was an approved AUAR for the site. Mr. Loney stated that a grading plan had been developed by United Properties in conjunction with the AUAR for the site. Mr. Loney stated the bedrock was very high to the surface in this area; additional fill would be needed to raise the site four or five feet for the building site to be developable. If a grading permit were allowed, the grading permit would be for a limited area no higher than six feet in height with a 4:1 slope, and it must be silt fenced and stabilized in an attempt to control the damage to the environment. It was at the discretion of the Council if United Properties was to proceed without a preliminary plat. Mr. Loney noted that it was allowable at this time of the year for developers to proceed with grading without a preliminary plat if the Council permitted that action. Mr. Loney noted that this request would be presented to the Environmental Advisory Committee (EAC) so he could get some information from them to apply to the grading permit. Mr. Loney noted the intentions of United Properties was to bring forward a plat over the winter so this site could be developed. Link/Lehman moved to allow United Properties to apply for a grading permit for placement of fill, not to exceed approximately 30,000 cubic yards, on the Shenandoah Business Park site, without a preliminary plat being approved, including the findings of the EAC that were made November 19,2003 regarding the fill that was to be brought in to the site. Motion carried 5-0. Official Proceedings of the November 19, 2003 Shakopee City Council Page -2- Mr. Voxland reported on the status of the budget for the General Fund for 2004. He stated changes and refinements had been made to the General Fund; the use of fund balance that was left was approximately $200,000. He noted that this figure did include the carry over from 2002 but no carryover for 2003. Mr. V oxland noted the taxable market value on an average house in the City of Shakopee went up 12%; the maximum proposed total taxes for all taxing jurisdictions would go up 7.5%. Mr. V oxland noted in the case of City taxes for the City of Shakopee the taxes went up 13 % (this included the $400,000 levy). If the $400,000 were not levied for the sewer debt then the City taxes would only go up approximately 6.5% rather than 13%. Some of the items mentioned in the budget presentations actually were not included in the budget figure. Because of Council direction, staff prepared a very conservative budget. Staff did point out to Council that if certain areas were not increased service levels would decline. Mr. V oxland noted the items that normally would have been in the budget but because of financial constraints the items were left out of the budget. These "needed" items identified by Mr. Voxland were: 1) two more police officers be added to the present Police Department staff, 2) $20,000 be added to the budget for insurance for former police officers so the City could fund their portion [this was an unfunded State mandate], 3) the addition of an IT Technician, 4) Building Inspector, Building operations (city staffing), and 5) $50,000 be budgeted for outside help for City staff for a controlled growth study. Mr. Voxland stated it appeared that there was an under spending of the expenditures for 2003. After these needed recommendations were added to the budget there would still be approximately $270,000 remaining that was above the minimum target of25% for the reserve fund balance. Mr. Voxland noted "want" items were not necessary but quite desirable to add into the budget. He also noted that the Truth in Taxation hearing was coming up December 1,2003. Mr. Voxland noted that if the "desirables" items were added to the budget the City would still be about $25,000 above the minimum target of25% for the reserve fund balance. Cncl. Lehman noted with the "needed" recommendations ofMr. Voxland plus the "desirable" items that Mr. Voxland noted the City tax portion would not be affected because those additions could be financed with surplus funds. Cncl. Helkamp stated that the "needed" items recommended by Mr. V oxland to be added to the budget should be added as stated by Mr. V oxland and the "desirable" items could be selected. Cncl. Lehman agreed with Cncl. Helkamp's statement regarding the "needed" budget items. Cncl. Joos was uncomfortable with adding all of the "needed" items to the budget. He was uncomfortable with the growth study being added in at this time; all of the other items he was comfortable with. Cncl. Lehman noted the growth study was just a budget item. After discussion regarding the Growth Study, Cncl. Official Proceedings of the November 19,2003 Shakopee City Council page -3- Joos stated he was okay with adding the item into the 2004 budget. There was consensus to add all the "needed" items to the budget. Chief Hughes approached the podium and stated that police officers should continued to be added to the Police Department staff. The City was behind the number of police officers recommended for the size population of the City. There was discussion on if any "desirable" police officers should be added to the budget; there were already two "needed" police officers that were going to be added. Mayor Mars suggested staggering the start dates of the police officers that were to be hired. The police officers on the "desirable" list should start no earlier than September I, 2004. This way it would only be a quarter of a year that this salary would be paid for out of the 2004 budget and hiring the police officers would set up the hiring for the Police Department for 2005 so the Police Department could possibly catch up to the number of police officers recommended for the City's population. This suggestion was okay with Cncl. Helkamp, Cncl. Lehman, Cncl. Joos and Cncl. Lin1e Mr. Leek reported on the growth study for the City of Shakopee. Mr. Leek noted there was much pressure on the City from developers and this was an issue concerning the explosive growth within the City from the residents of the City. Mr. Leek noted that a 12 to 24 month study was being proposed for the City. This did not mean that development would stop completely. The biggest issue for the residents was all the medium density type housing being built. The growth study would be performed to find out what mechanisms the City wanted to use to control growth and what type development should occur within the City. Mr. Leek noted City staff was suggesting putting a moratorium on the residential medium density housing type but to let other building proceed. Mr. Leek noted he surveyed other cities that did a study of this type; he estimated that the cost of the study would be approximately $55,000 exclusive of staff time. Mr. Leek felt it was desirable to have an outside facilitator/mediator do the study. He thought this would be better than staff doing the study. These would be experienced people doing the study. Mr. Leek noted there were a number of mechanisms used by Cities to try and control growth. He noted some of the ways to control growth were: 1) identifying areas of the City that would be served by sanitary sewer in a five year increment, 2) increase lot size so the cost to build was higher, 3) phase areas for MUSA including Jackson township and 4) cap the number of building permits that are issued. Mr. Leek would like to see broad community involvement to help develop strategies to control the growth in the City of Shakopee. He felt this community involvement was very desirable. Mr. Leek noted that a moratorium on total development did not seem appropriate for the City of Shakopee. Mr. Leek stated there had been discussion on having a City Park Planner; if all building continued except for Medium Density Residential there would still be a need for this Park Planner. Cncl. Lehman was concerned about the City having enough money to provide services to the new developments because of the restrictions oftaxes and he wanted to know how the study Official Proceedings of the November 19, 2003 Shakopee City Council Page -4- would address this problem. Mr. Leek did not have the complete answer to this question but he too felt that this question needed to be part of the growth study. Mr. Leek noted there was a growing concern within the State for growing communities. Mr. Leek stated that he thought more intensive developments, like Medium Density developments and High Density developments created the need for more City services opposed to other building activity. Cncl. He1kamp stated that it had already been decided to keep this item in the budget and this presentation justified even further keeping the study in the budget. Mr. Themig, Facilities and Recreation Director, approached the podium and discussed park planning within the City. Mr. Themig stated most of this work had been contracted out previously and was in the budget again, under professional services, for an amount of $180,000 in 2004 and $152,000 for 2005. Mr. Themig proposed that a staff person be hired that could do the required plans so this work could be done in house. He thought this should be a full-time position at approximately $67,000 per year for wages and benefits. After equipment was bought the savings would be approximately $40,000 annually. Mr. Themig saw several benefits to doing this work in house. Cncl. Joos and Cncl. Lehman would like to see the numbers for professional service for the Park Department for the long term. Bringing this new person on board would not be a one-time expense and Cncl. Joos wanted more information so he could make an informed decision. Mr. McNeill, City Administrator, stated that he would follow-up on Cncl. Joos' request. Cncl. Lehman was concerned about the gross salary for the park planner and the shifting of the money from one department to another. Cncl. Helkamp thought this plan of Mr. Themig's would free up some dollars so some park projects could be realized. Mr. Themig noted that if the demand were no longer apparent for this position then the position would go away just as the Assistant Financial Director's position did last year. He also addressed Cncl. Lehman's other concern. Mr. Themig thought part of the funding for the wages for this position would come from the Park Reserve Fund because this position only dealt with new parks. This position would not affect the General Fund in a big way. There was direction that the figures should be presented to the Council showing the professional services cost and what projects needed to be done over several more years so informed decisions could be made, staff should give further input and SCALE should be contacted to see if they could provide any benefit. Mayor Mars addressed the current park survey that every resident of Shako pee had the opportunity to take. The response to date was about 5%. This study would be used to make some very important decisions. There was discussion on ways to get more response from the residents. It was decided to place an ad in the paper to remind people to take the survey. Official Proceedings of the November 19, 2003 Shakopee City Council Page -5- Mr. McNeill reported on the cost of employee Health Insurance and a cost of living raise for employees. He noted that initially the increase for health insurance from Medica for the employees was 18.8% but with further negotiation the increase was reduced to 12.9%. This 12.9% increase compared well with the national average. Mr. McNeill noted that the City of Shakopee was in a much better position ranking wise with other cities comparable in size in the Metropolitan area than the City was a few a years ago. Mr. McNeill noted why the City of Shakopee now had a better rating. There were different premium amounts for single-coverage, two-party coverage and family coverage. The City picked up 100% of the single premium, 88% of the two party premium and 72.5% of the family premium. Mr. McNeill noted that a previous Council set the percentages of what the City paid for insurance premiums. It was stated by Mr. McNeill that employees were required to have at least single coverage for health care from the City. The City had found out that if every employee was required to have some health insurance from the City the insurance cost to the City was actually decreased because of the numbers. This prevented having only high-risk employees take the insurance and the numbers being low. It was noted that the City of Shakopee was individually insured; they were no longer in a cooperative because it had been found not to be to the City's advantage any longer to be in a cooperative. Mr. McNeill noted that is was common in Government business to have the premium for single health insurance covered entirely by the employer. Mr. McNeill was going to follow-up on what tier the medical insurance rates were in. Mr. McNeill noted the additional cost of the health insurance would be approximately $77,000. Mr. McNeill noted that 15% had been budgeted in the 2004 budget for this health insurance premium increase. Mr. McNeill was recommending that the City renew the existing health insurance plans with Medica for 2004. Lehman/Joos moved to direct staffto move forward with Medica as the employee health insurance provider. Mayor Mars felt there needed to be some changes in the health insurance expense field for employees. He thought this single coverage premium being covered 100% needed to be revisited. Mr. Helkamp thought for purposes of the budget and the Truth and Taxation hearing these numbers should be used but he did not want to tell Medica that the City would be renewing their contract with them at his time. He would like to see what tier the insurance benefits were at. Mr. McNeill noted that insurance carriers were changed two years ago and he did not think there would be a big difference between carriers at this time. Cncl. Helkamp noted that Blue Cross had some very attractive rates right now because they realized they needed to do something with their rates. Mr. McNeill stated he would check into the insurance but if no benefit was found to change carriers he would like the flexibility to be able to move ahead with Medica because of the open enrollment coming to a close soon. Official Proceedings of the November 19,2003 Shakopee City Council Page -6- Cncl. Helkamp made a friendly amendment that Mr. McNeill check into which tier the Medica Insurance premiums were in and compare these rates to rates with Blue Cross; ifno advantage was found to change carriers then Cncl. Helkamp was fine with Mr. McNeill moving forward with Medica. This friendly amendment was fine with the motion maker and the seconder. Motion carried 5-0. Mr. McNeill noted that it was time again for direction as to what the Council wanted to do regarding a cost of living raise for employees. Mr. McNeill did note that this issue had not seen much movement this year through out the State. Some unions were beginning to settle on this issue now for around 3% for the second year of a two-year contract. Discussion of the cost of living increase in other cites have taken place and any increase was between 0% to 3%. Mr. McNeill noted the average cost of living increase for the City of Shakopee has been 3%. Mr. McNeill noted this information as to what the cost of living increase would be would be valuable information for open enrollment for the employees to have at this time. The budget impact for each 1 % increase would be approximately $55,000. Mr. Mc Neill noted staff was recommending that there be a cost of living increase of 2.5%. Cncl. Helkamp felt 2.5% was a good compromise because the insurance benefits were not being lowered; he was comfortable with the percentage. Cncl. Lehman noted the amount needed to be budgeted but the cost of living increase did not need to be exactly decided tonight. He would like to see a cost ofliving increase of 2.5% budgeted for. Cncl. Link was comfortable with 2.5% as well as Cncl. Joos and Mayor Mars being comfortable with this percentage. There was consensus to have a 2.5% cost ofliving increase budgeted for. Mr. V oxland reported on the tax levy amount. He noted that this was the proposed maximum tax figure from all taxing jurisdictions in Scott County. The taxes could be lowered; this was the highest the taxes could be. It was noted that the City of Shakopee had the highest taxable tax capacity (23 million) out of the Cities of Belle Plaine, Elko, Jordan, New Market, Prior Lake and Savage; however, the tax capacity rate (34%) was the lowest of all of the afore mentioned cities. The City of Shakopee had the lowest tax rate in Scott County. The Truth and Taxation notices from the County that were mailed to the residents of Shakopee used the tax rate of 34% (City Council's highest proposed maximum levy). Mr. Voxland noted the Truth and Taxation hearing was coming up Monday, December I, 2003. He noted this was a 15% increase from the 2003 tax levy. Cncl. Lehman directed Mr. Voxland to remove the $396,000 sanitary debt from the levy, thereby lowering the actual City tax rate. Cncl. Helkamp also directed Mr. Voxland to take the $400,000 out of the tax levy. Mr. Voxland noted that if this $400,000 were taken out and the tax levy was reduced by this amount, the Cities reliance on developments fees was increased back to 18% and $200,000 of the fund balance from 2002 was used, the budget items "needed" and the "desirable" budget items could be added to the City's budget and the taxes would not be raised further. Official Proceedings of the November 19,2003 Shakopee City Council Page -7- There was consensus to do this by the Council and the addition of two additional police officers in the "desirable" column of budget items presented by Mr. Voxland would start no earlier than September 1,2004. Mayor Mars noted that adding equipment to the fitness Center was important. The residents were responding favorably to the new equipment. Cnc1. Helkamp noted that he would like to keep the Teen Center staff person, the Public Works additional person for street maintenance, the pavement preservation and the Park Comprehensive Plan Update in the budget for 2004 realizing that the surplus fund balance would be needed to dip into but he would like to stay as far away from the minimum target (25%) for the desired fund balance as possible. He thought there would be some money left over from the 2003 budget that would be added to the 2004 budget so he was comfortable in adding these additional items to the 2004 budget. Cncl. Lehman noted the Teen Center was coming along very well with donations. Mr. Themig expanded on the Teen Center concept. He noted the interest was very high within the community for this Teen Center. Mr. Eller, Recreation Supervisor, did not have all the details worked out yet but he was surveying other communities as to how they handled their Teen Centers. Mr. Themig noted possible operation sources to help fund the Teen Center were: 1) vending, 2) revenue from video games, 3) rentals of community center uses and 4) special events were the really big revenue generator. Mr. Themig noted there was also potential grant money available through the Scott/Carver Cooperative. Mayor Mars noted that he would like to see the City at least at 30% for the recommended reserves. Mr. Voxland addressed the Building Fund. Mr. Voxland stated that if the City waited to pay cash for the new Public Works building it would be in 2007 before the City had the cash. However, Mr. Voxland pointed out some shifting of money that could take place with bonding for the new Public Works Building (the interest rates were very low now) thus giving the City more cash sooner. The money for the bond payments could come from the Building Fund from rentals. The Council thought that this was a good idea. Mr. V oxland noted to set the stage for issuing these bonds a public hearing needed to be held on the ClP. Mr. Voxland suggested the date for the public hearing for the ClP be December 18, 2003. Helkamp/Joos moved to set the public hearing on the ClP for December 18,2003. Motion carried 5-0. Cncl. Lehman addressed the pay for Fire Fighters. He felt it was a major benefit to have a volunteer Fire Department and he wanted staff to look at the problem as to why the Fire Fighters were leaving the Fire Department. It was felt more incentives were needed for the Fire Fighters. Mr. McNeill noted a report would be prepared on the wages and salaries for the Fire Fighters. Official Proceedings of the November 19,2003 Shakopee City Council Page -8- Joos/Helkamp moved to adjourn to Monday December 1,2003 at 7:00 p.m. Motion carried 5-0. The meeting adjourned at 7:49 p.m. . ca~:' ~ City Clerk Carole Hedlund Recording Secretary