HomeMy WebLinkAbout5.F.2. Approval of Minutes: August 18 and 19, 2008
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
ADJ. REGULAR SESSION SHAKOPEE,M~SOTA AUGUST 18, 2008
(Budget Session)
Mayor Schmitt called the meeting to order at 7 :00 p.m. with Council members Steve Clay, Matt
Lehman, Terry Joos, and Pat Heitzman present. Also present were Mark McNeill, City
Administrator; Kris Wilson, Assistant City Administrator; Judith S. Cox, City Clerk; Gregg
V oxland, Finance Director; R. Michael Leek, Community Development Director; Bruce Loney,
Public Works Director/City Engineer (at 7:50 p.m.); Tom Pitschneider, Fire Inspector; Jamie
Polley, Park, Recreation, and & Natural Resource Director; and John Peterson,
Telecommunications Coordinator.
Also in attendance were members of Jackson Township, Don Hedlund, Chair Person; Tom
Weckman, Supervisor; and Roselyn Menke, Clerk. From Louisville Township were John
Weckman, Chair Person; Bob Pieper and Susan Morevec, Supervisors; Lolita Driscoll,
Treasurer; and LuAnne Lemke, Clerk.
Mark McNeill, City Administrator, welcomed the Township members and introduced Jamie
Polley, Park and Recreation Director to present the Park and Recreation fee study for nonresident
members.
. Jamie Polley, Park, Recreation, and Natural Resource Director, presented the recommendation
from the Park and Recreation Advisory Board (pRAB) regarding nonresident rates for City
Recreation program activities.
Ms. Polley highlighted the Parks and Recreation budget for 2009. She summarized the Parks
and Recreation program overview, budget goals and current funding.
Ms. Polley discussed the current fee structure. She said the current program fees are the same
for residents and nonresidents; however, there is a $21 per program charge to nonresidents. Ms.
Polley discussed the basis for the proposed fee changes for nonresidents due to inflation and
operating expenses.
Ms. Polley said the Park and Recreation Advisory Board (pRAB) has proposed an annual non-
resident fee of $36 per person. Ms. Polley also stated that there would be a 15% overall increase
in program fees. PRAB is also proposing a non-resident fee structure for programs. She gave
examples of how the fee structure for programs would work for nonresidents.
In summary, Ms. Polley said the revenue growth goal is 10%. This would be achieved though an
overall rate increases of 6.5% and participation increases of 4%. The 2009 proposed budget
allocations would then change to show revenue accounting for $1,210,660 or 52% and general
fund subsidy accounting for $1,123,610 or 48%.
Lolita Driscoll said she is concerned about the impact on nonresidents if there is a large increase
for program fees and the non-resident fee and that they may be more than non-residents want to
pay.
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Shakopee City Council Page -2-
Mayor Schmitt discussed how he understands the rising costs of the fees for township users. The
City is making the fees the most cost effective for everyone but stated that the City has to justify
to the people in the City that are paying for park and recreation programs and facilities that
everyone is paying their fair share.
Tom Pitschneider, Fire Inspector, presented the Fire Department budget for 2009. Mr.
Pitschneider summarized the mission statement, goals, and staffing of the Fire Department. He
also highlighted the calls for service and types of calls the Fire Department responded to over the
past several years in the City of Shako pee as well as Jackson and Louisville Townships.
Mr. Pitschneider stated that the total operation budget for 2009 is proposed to be $2,029,890,
which is an increase of5.14%.
Clay/Heitzman moved to recess for a 10 minute break. Motion carried 5-0.
Mayor Schmitt re-convened the meeting at 8:45 p.m.
John Peterson, Telecommunications Coordinator, presented Council with the 2009
Telecommunications budget.
Mr. Peterson summarized the 2009 goals and major expenditures for Council. The proposed
2009 budget includes $330,267 in expenditures (including a $100,000 transfer to the General
Fund) funded by an estimated $353,000 in revenue from Comcast.
Gregg Voxland, Finance Director, presented Council with the 2009-2013 Capital Improvement
Program (CIP).
Mr. Voxland discussed the Building Fund revenue for 2009 which is projected to be $1,014,471.
The expenditures for 2009 are projected to be $975,000. Mr. Voxland also discussed the
<xe'Xellues and expenditures through 2013. At the end of2013 there will be an estimated
$4,014.499 fund balance.
Mr. V oxland said that the Harris Mechanical Energy Savings contracts and the Tremco Roofing
contracts for roofing projects are not included in the figures for the 2009-2013 CIP or the
operating budget.
Mr. V ox land then discussed with Council the overall 2009 Budget.
Mr. Voxland discussed the general fund overview, levy limit review, tax impact and tax subsidy.
Mr. Voxland reviewed the four options of the general fund with Council. Mr. Voxland said the
current Option "C" has an operating tax levy increase of3.9%. This is revenues of$18,505,900
and total expenditures at $18,577,460 with a deficit of $72,000.
Mr. Voxland said that there is $437,400 of budget additions not included in the budget. Council
agreed on the following.
. Not add the additional police officer requests. $325,000
. Move Point of Sales Software to Telecommunication. $ 20,400
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Shakopee City Council Page -3-
. Not add additional hours for front desk staff at Community Center. $ 15,000
. Move Community Center lighting to.the Building Fund. $ 27,000
. Move Community Center Ice Area lighting to Building Fund. $ 35,000
. Fund security cameras with Recreation Fund Balance. $ 10,000
. Fund concrete work at SandVenture with Fund Balance. $ 5,000
Mr. Voxland recapped the budget. Mr. Voxland said Council agreed on an operating tax levy
increase of 3.9% plus the $72,000 and work the special levies around so it shows as amaximum
operating levy.
Council asked that Mr. V oxland provide them with a spreadsheet showing the changes with the
3.9% tax levy. Mr. Voxland said he would have that available at the August 19, 2008 meeting.
Heitzman/Joos moved to adjourn to Tuesday August 19,2008 at 7:00 p.m. Motion carried 5-0.
The Council meeting ended at 10:00 p.m. on August 18,2008.
~~.~
ity Clerk
Kim Weckman
Recording Secretary
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
ADJ. REGULAR SESSION SHAKOPEE,M~ESOTA AUGUST 19,2008
Mayor Schmitt called the meeting to order at 7:00 p.m. with Council members Pat Heitzman,
Matt Lehman, and Terry Joos and Steve Clay. Also present were Mark McNeill, City
Administrator; Judith S. Cox, City Clerk; R. Michael Leek, Community Development Director;
Bruce Loney, City Engineer/Public Works Director; Jim Thomson, City Attorney; Gregg
V oxland, Finance Director; and Sgt. Lynn Lipinsky.
The Pledge of Allegiance was recited.
Mayor Schmitt asked if there were any additions or deletions to the agenda. Mr. McNeill asked
to add 15.1, Contingency Amount on Beckrich Park Estates Public Improvement Project.
Joos/Clay moved to approve the agenda as amended. Motion carried 5-0.
In the Mayor's Report Mayor Schmitt talked about the events going on around the city such as
the Minnesota State Amateur Baseball Tournament and the Renaissance Festival.
Mayor Schmitt asked ifthere were any additions or deletions to the consent agenda. No one
responded.
LehmanlJoos moved to approve the Consent Agenda. Mr. McNeill read the Consent Agenda.
Motion carried 5-0.
LehmanfJoos moved to declare the 1996 Dodge Avenger, VIN: 4B3AU52NOTE253261, the
2002 Ford Explorer, VIN: IFMDU74W82ZA87072, the 2003 Chevrolet Cavalier, VIN:
IGIJH52FX37307496, and the 2005 Chevrolet Colorado, VIN: IGCDT136858127523 as
surplus property. (Motion carried under the Consent Agenda)
LehmanlJoos offered Resolution No. 6797, A Resolution Declaring the Amount to be Assessed,
Ordering the Preparation of Proposed Assessments, and Setting the Public Hearing Date for
Delinquent Refuse Bills, and moved its adoption. Also, direct a $45,000 assessment penalty to
be added to assessment amounts for City administrative costs. (Motion carried under the
Consent Agenda)
LehmanlJoos moved to authorize the appropriate City Officials to execute the agreement
between the City of Shakopee and Park Place Storage Condominiums, Inc. for sanitary sewer
and water improvements. (Motion carried under the Consent Agenda)
LehmanlJoos moved to grant full-time regular status to Kelly Schmitt as an Office Service
Worker for the Shakopee Fire Department. (Motion carried under the Consent Agenda)
LehmanfJoos moved to approve the bills in the amount of$I,445,152.93. (Motion carried under
the Consent Agenda)
LehmanlJoos moved to approve the minutes of July 29,2008. (Motion carried under the
Consent Agenda)
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Shakopee City Council Page -2-
Lehman/Joos moved to approve the application and grant a temporary on-sale license to the
Church ofSt. Mary, 535 South Lewis Street, for September 13 and 14,2008. (Motion carried
under the Consent Agenda)
Lehman/Joos offered Resolution No. 6798, A Resolution Accepting a Donation of $2,000 From
the Shakopee Downtown Partnership, and moved its adoption. (Motion carried under the
Consent Agenda)
Lehman/Joos moved to authorize the appropriate City Officials to execute the revised Joint
Powers Agreement for Prosecution Services, with the Scott Joint Prosecution Association.
(Motion carried under the Consent Agenda)
Lehman/Joos offered Resolution No. 6799, A Resolution Amending Resolution No. 6700, A
Resolution Adopting the 2008 Budget, and moved its adoption. (Motion carried under the
Consent Agenda)
Mayor Schmitt asked ifthere was anyone in the audience who wished to be heard on a subject
that was not on the agenda. No one responded.
Mayor Schmitt asked for Council liaison reports. Cncl. Clay said he will be attending the Transit
Authority Meeting on August 20, 2008. Cncl. Heitzman had nothing to report but did state that
he attended the Spaghetti Dinner fund raiser in honor of Nick Haggadom. Cnc1. Joos said he
attended the Shakopee Public Utility Commission meeting. Cncl. Joos said water usage is
elevated because of the try weather. Cncl. Lehman said he will be attending the Chamber
meeting on August 20,2008. Cncl. Lehman said he also attended the Nick Haggadom Spaghetti
Dinner fund raiser.
ClaylHeitzman moved to recess for the Economic Development Authority Meeting. Motion
carried 5-0.
Mayor Schmitt re-convened the meeting at 7:05 p.m.
Michael Leek, Community Development Director, presented Council with an Amendment to
City Code Chapter 4 regarding fence regulations.
Mr. Leek said that the present City Code in Section 11.60 addresses chain link fencing
interwoven with slats screening stating that this fencing shall not be allowed as screening
material. Due to a number of situations where the design aesthetics and method of installation,
along with maintenance, have been insufficient with the City's design and performance
standards, staff is proposing an amendment to the City's fence regulations regarding materials.
The amendment incorporates language that would prohibit fences with slats.
Joos/Lehman offered Ordinance No. 804, Fourth Series, An Ordinance of the City of Shako pee,
Minnesota, Adopting Revisions to City Code Chapter 4 Regarding Fence Material, and moved
its adoption. Discussion followed.
Cncl. Lehman wanted clarification of the ordinance change which Mr. Leek clarified for him.
Official Proceedings of the August 19, 2008
Shakopee City Council Page -3-
Mayor Schmitt asked for a vote on the motion. Motion carried 5-0.
Mark McNeill, City Administrator, presented Council with the Fuel Surcharge-Request from
Dicks Sanitation. Mr. McNeill stated that Dick's Sanitation is asking to amend their contract
with the City.
Mr. McNeill said the City received notice that RRT, the provider to where garbage is hauled for
processing, has asked for a 49% increase in fees, and be effective October 1, 2008. The current
contract in place allows for a 3% annual increase. No recommendation is ready at this time, as
alternatives are being investigated.
Mr. McNeill also stated in 2006 the City entered into a 5 year contract with Dick's Sanitation.
Mr. McNeill said at the time the current contract was negotiated the average price of diesel fuel
was $2.50 a gallon. Recently diesel fuel has been at $4.05 a gallon. Dick's Sanitation is asking
that they be allowed to impose a fuel surcharge to offset the added fuel costs.
Their request is to implement a fuel surcharge of 8% on the base garbage service if the price of
diesel is $4.50. The surcharge would be indexed to go down 1 % for each $.25 that retail diesel
drops. It would increase 1 % for each $.25 that the price of diesel increases. This would go into
effect October 1,2008.
Cncl. Lehman asked that there be a cap on the maximum per-month increase of 1 %.
Mr. Dave Domack of Dick's Sanitation addressed Council. Mr. Domack stated that for the past
year and half, Dick's Sanitation has absorbed the fuel increases. Mr. Domack stated that it is
necessary to have the fuel surcharge to continue the contract with the City of Shakopee. Mr.
Domack stated that they would be fine with having a cap of 1 % each month on fuel surcharges.
Clay/Heitzman moved to direct staff to develop a contract amendment to provide for a fuel
surcharge of 8% based on $4.50 per gallon with Dick's Sanitation and not to exceed 1 % per-
month, effective October 1, 2008. Motion carried 5-0.
Mr. McNeill presented Council with the Downtown Residential Parking.
Mr. McNeill said that in a previous Council meeting staff was directed to research how the City
can reserve parking in parking lots for residential tenants in the downtown area.
Mr. McNeill said that the City currently has a process for issuing parking permits to downtown
residents to park in City parking lots beyond the posted time limits. Mr. McNeill stated that in
the past very few residents have requested the permits.
CncL Lehman asked that during special events held in the downtown area that 5-6 parking spots
be signed and permitted with enforcement for those who don't comply in the parking lot across
from Bill's Toggery.
Cncl. Joos agreed with Cncl. Lehman but suggested that the organization that is holding the
event make sure the reserved parking spots are only used by permitted vehicles.
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Shakopee City Council Page -4-
Cncl. Lehman directed staff to look into reserving 5 parking spots during special city events in
the parking lot across from Bill's Toggery. Also, look at the Citypartnering with the
organization putting on the major event to enforce parking in the reserved spots.
Bruce Loney, City Engineerl Public Works Director, presented Council with the Contingency
Amount on Beckrich Park Estates Public Improvement Project.
Cncl. J oos removed himself from the table because he lives in Beckrich Park Estates.
Mr. Loney stated that the 5% contingency will not be sufficient for the project due 100 feet of
Hampton Circle needing to be re-paved because of the reconstruction. Mr. Loney stated that a
Contingency of 7.5% would cover the costs of rebuilding Hampton Circle.
Lehman/Clay moved to approve the contingency from 5% to 7.5% for the Beckrich Park Estates
Public Improvement Project, Project No. 2007-10. Motion carried 4-0 with Cncl. Joos
abstaining.
Joos/Clay moved to adjourn to Tuesday, September 2,2008 at 7:00p.m. Motion carried 5-0.
Th~J~~ed at 7:50 p.m.
~th s. Cox
ity Clerk
Kim Weckman
Recording Secretary