HomeMy WebLinkAbout08/25/1992 TENTATIVE AGENDA
SHAKOPEE, MINNESOTA
COMMITTEE OF THE WHOLE AUGUST 25, 1992
Mayor Gary Laurent presiding
1] Roll Call at 7:00 P.M.
2] Approve Minutes of July 13, 1992 and August 11, 1992
3] Continue Discussion on 1993 Budget
4] Confirm Future Budget Worksessions: September 8th and/or 10th
5] Adjourn
Dennis R. Kraft
City Administrator
OFFICIAL PROCEEDINGS OF THE SEAEOPEE CITY COUNCIL
COMMITTEE OF THE WHOLE SHAEOPEE, MINNESOTA JULY 13, 1992
Mayor Laurent called the joint meeting with the Shakopee Public
Utilities Commission to order at 7:00 p.m. , with Cncl. Lynch,
Beard, Sweeney, and Vierling present. Present from the Shakopee
Public Utilities Commission: Barry Kirchmeier, Terry O'Toole, Jim
Cook, and Shakopee Public Utilities Manager, Lou VanHout. Also
present from City staff: Dennis Kraft, City Admn. ; Lindberg Ekola,
City Planner; and Dave Hutton, Public Works Director.
Beard/Lynch moved to approve the agenda as amended with the
additional items added, as requested by the Shakopee Public
Utilities Commission (SPUC) : 14a) Downtown Undergrounding; 14b)
Request for Site Condemnation; and 14c) Information on Non-lighting
Services.
Mayor Laurent read and presented Resolution No. 3615, A Resolution
Commending the Shakopee Public Utilities Commission and Manager,
Lou VanHout, to the Commission.
President Kirchmeier stated it the responsibilities of the Shakopee
Public Utilities to: 1) Supply electricity and water to the
citizens of Shakopee at a reasonable cost; 2) Provide reliable
modern facilities for electricity; and 3) Provide revenue to the
City. Pres. Kirchmeier then gave a recap of SPUC' s 1991
activities.
Pres. Kirchmeier stated there would be a modest increase in rates
in the near future and added that the last rate increase had been
in 1982 . He noted that the savings from the newly contracted
utility company would not go into effect until the three-year
notice to NSP had been presented. He added that with this new
service, customers will experience fewer rate increases.
The long term plans for SPUC were discussed. Pres. Kirchmeier
stated that two extensive studies had been conducted; 1) Electric
System Study; and 2) Comprehensive Water Plan. He stated that
copies of these plans could be provided, upon request.
Discussion was held on the SPUC policy to look at the watermains
anytime the City does street reconstruction. Pres. Kirchmeier
stated that with this plan, any watermains that need repairs are
serviced to prevent future problems.
Pres. Kirchmeier stated that SPUC will be in need of a new water
tank.
The City Admn. asked if SPUC had received a copy of the
Metropolitan Council Water Plan. Mr. VanHout stated he did not
remember seeing this information. The City Admn. questioned if
this report was compatible with SPUC' s policies.
Official Proceedings of the July 13 , 1992
Committee of the Whole Page -2-
Discussion was held on the new electrical substation, which is
planned to be located south on County Road 17. Mr. Cook stated
that with this substation, if the power goes down, the City won't
feel the affects. Pres. Kirchmeier stated that the projected cost
for this project is $2, 154, 000 and scheduled for 1996. In
conjunction with this project, the need for bonding in 1995 was
discussed.
Discussion was held on who pays for the costs incurred when a
watermain system is upgraded. Mr. VanHout stated that the
watermain construction costs pay for repairs up to the curb stop,
the property owner is responsible for upgrading or reconstructing
the remainder. Mr. VanHout added that if the City causes some
damage to a residential service line while doing watermain
reconstruction, SPUC does not have the customer pay for the repair
up to the curb stop.
Discussion was held on the SPUC contribution to the City, which the
City Admn. noted is really a cash flow item. He asked if it were
possible to increase the monthly payment to the City. Discussion
was held.
Pres. Kirchmeier stated he° had no problem with increasing the
contribution as long as there would be some type of refund or
credit to SPUC for any overpayment.
The City Admn. and SPUC Manager will review the contribution
formula and payment in a close-out method.
Discussion was held on the recommendation by the Public Works
Director/City Engineer that the sewer and water extension into a
new subdivisions be 10 feet and not stop at 1 foot from the
property line.
The SPUC Manager stated this is the way it has always been done.
He added that this was not necessarily correct, but it has been a
consistent standard making it easier for all involved to establish
utility locations. He added that he has to be concerned with the
electrical system as well as the water system, but didn't have any
real problem in moving it to 10 feet if that was the current
consensus. Discussion was held.
Pres. Kirchmeier stated this is an issue that should be reviewed by
the SPUC Manager and the City Admn. The City Engineer added he
would like to hear what other water utilities are doing.
Discussion was held on the street lighting responsibilities. The
City Admn. stated this subject has specifically been brought to his
attention in reference to maintenance of the ornamental-type
lighting. He stated a customer had been calling the City
questioning when these repairs were going to be made and the City
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Committee of the Whole Page -3-
was under the belief that this was the responsibility of the
Shakopee Public Utilities.
The SPUC Manager stated it was his understanding that the City was
to replace the ornamental posts but they would do the maintenance
of these posts. He added that since this is not a normal post held
in SPUC inventory, it was his belief that the City was to retain
the inventory. He added that this issue is worthy of continued
discussion and review to prevent any mis-communications.
The Committee suggested that the City Admn. and SPUC Manager meet
and come up with a policy on the replacement and maintenance of the
ornamental-type lighting posts.
Comm. Cook stated that this issue does need some quick resolution
because this has been an on-going problem between the Shakopee
Public Utilities staff and City staff.
Discussion was held on how to establish and maintain different
types of lighting in inventory.
The SPUC Manager stated that it makes no difference to them what
type of lighting a developer wants in a subdivision as long as
either the homeowners association or the developer keeps an
inventory on their specific type of lighting posts. He added that
this issue should definitely be further discussed in a meeting
between City and SPUC staff.
Comm. Beard stated he is in favor of the flexibility for different
lighting and suggested if lighting is to be ornamental, this be
included in the Developers Agreement whereby the developer must
retain an inventory.
Comm. Sweeney stated that this is really an administrative task and
would like to see something in writing so it could be approved and
become a policy.
Comm. Lynch questioned who is responsible for subdivisions that
have no lighting.
Comm. Vierling responded by stating that in the past, street
lighting was to be petitioned and assessed back for the initial
cost.
The City Admn. extended a compliment to SPUC from customers who
have been very impressed that when the power does goes down, it
comes back very quickly.
The City Admn. stated that the joint arrangement between City staff
and SPUC on vehicles seems to be working very well. He expressed
to SPUC that if they had a need to sell or buy a vehicle, City
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Committee of the Whole Page -4-
staff should be notified as the City may be able to go through the
Hennepin County contract for SPUC.
The City Planner stated that the pre-application meeting process
has been established, which gives the developer a chance to go over
a lot of different concerns prior to formal application. He added
that having a representative there from SPUC has really been
helpful.
Pres. Kirchmeier stated that a new employee has been hired by SPUC
and one of their responsibilities is to interface with City staff.
The Building Permit process was discussed. Mayor Laurent stated
that several developers had mentioned to him the inconvenience of
first having to go to the Shakopee Public Utilities office for one
form and then the City Hall to complete the permit application. He
asked if there wasn't a way to make this process a one-stop
arrangement.
The SPUC Manager stated that this process had originated
approximately 10 years ago and for electrical or water reasons, the
occupancy permit was not approved. He added that when they are
notified of a pending building permit request, they can be sure
than everything is in place. The SPUC Manager stated that this was
a service being provided by them and was only to be advisory in
nature to inform the City of what electrical and water services are
available to a particular site.
Pres. Kirchmeier stated he believes this is something that can
easily be worked out.
The SPUC Manager and City Admn. will review this issue to come up
with a workable process.
The City Engineer stated that developers from outside of Shakopee
do not understand the inspection process and they have questioned
if they are paying for double inspections.
The SPUC Manager stated they do bill for inspection services and
since the sewer and water don't always get put in at the same time,
there often are two inspections, but he added that there should not
be an extra cost. He added that he is willing to discuss this
issue if it is really a problem.
The City Engineer stated that the Commission may want to consider
having someone out at a site on just a day-to-day basis since the
City has to have someone on site at all times. He added this may
help to defray costs.
Discussion was held on application review deadlines and that since
various departments all have to do the review, ample time has to be
Official Proceedings of the July 13 , 1992
Committee of the Whole Page -5-
given for these reviews and for the paper work associated with the
reviews.
The City Admn. stated that they are trying to do things efficiently
and do it right, so if there are any areas where SPUC feels they
are being slowed down, City staff would like to know about this.
The City Admn. stated that the Finance Director had commented that
some invoices are taking up to six months to get paid, and is
suggesting a finance charge be implemented for delays.
Comm. Cook stated that itemization and backup material is needed
before they are able to approve payment. He requested that if
anything can be done to make this research faster, perhaps hi-
lighting some of the information, this would speed up the process.
The City Engineer stated that this same situation occurs with City
staff when they are presented with a SPUC invoice. He suggested
better documentation from both staffs be provided to speed up this
process. -
Comm. Sweeney stated this is an issue to be resolved by the City
Adorn. and the SPUC Manager.
Pres. Kirchmeier presented a potential problem with doing
undergrounding services in the downtown area. He stated that in
some instances when the existing over ground services are adequate,
it' s difficult to cost justify the underground services. He stated
he is not sure how this will get handled when it comes to SPUC for
a decision. Discussion was held.
The City Engineer stated that staff has been meeting with the SPUC
Manager to resolve this issue and at this point, they are proposing
that all the costs be gathered together for undergrounding and then
the various boards will determine their cost share and the balance
will go back to the property owner to determine the assessments via
the public hearing process.
Pres. Kirchmeier stated that some sites will be needed for wells
and water tanks and asked the Council to formally acquire these
sites by the condemnation process.
Discussion was held on whether or not the condemnation process is
the best means of acquiring property in this instance.
Comm. Sweeney stated that he believes it is not appropriate for a
public body to purchase property, but better to use the
condemnation process to prevent any potential for conflict of
interest.
Official Proceedings of the July 13 , 1992
Committee of the Whole Page -6-
Discussion was held with Mayor Laurent voicing his opinion that
sometimes a condemnation process gets to be more expensive.
Pres. Kirchmeier stated that condemnation may be the best process
for the sake of timeliness when specific site locations are needed.
He added their request is really just for the City to be able to
obtain the sites needed by SPUC in whatever manner it takes.
The SPUC Manager stated that at times extra non-lighting work is
done for the City. He added that it has been brought to his
attention by residents that this could be a legal issue whereby the
City should be contracting out for this service. He added he
thought there was a new state law regarding this issue and perhaps
the City Attorney could review this law to see if its applies. He
added he has no problem with continuing to service the City in this
fashion, as long as it is all legal.
Discussion was held and the City Engineer stated that they do not
want SPUC doing any of this work if the issue is one of a legal
nature or becomes too controversial.
The Committee of the Whole suggested getting an opinion from the
City Attorney.
Mayor Laurent asked if there was any other issues to be discussed.
There were none.
Remarks were made by both the members of the Committee of the Whole
and members of the Shakopee Public Utilities Commission relative to
improved working conditions and better cooperation that now exists
between the two entities. Members of SPUC remarked they now feel
a part of the City.
The Committee of the Whole adjourned at 9: 10 p.m.
J�ith S. Cox
City Clerk
Jane VanMaldeghem
Recording Secretary
OFFICIAL PROCEEDINGS OF THE COMMITTEE OF THE WHOLE
Shakopee, Minnesota August 11, 1992
Mayor Laurent called the meeting to order at 7: 05 p.m. , with Cncl.
Lynch, Vierling, Beard, and Sweeney present. Also present: Dennis
Kraft, City Administrator; Karen Marty, City Attorney; Barry Stock,
Assistant City Administrator; Judith Cox, City Clerk; Lindberg
Ekola, City Planner; Gregg Voxland, Finance Director; Dave Hutton,
Public Works Director; Tom Steininger, Police Chief; and Frank
Ries, Fire Chief.
Vierling/Beard moved to approve the meeting minutes of June 23 ,
1992, and June 30, 1992 , as presented. Motion carried unanimously.
The City Administrator gave the Committee three options available
for the 1993 budget: 1) Retain the same dollar level as 1992 ; 2)
Retain the same service level as 1992; and 3) Approve/revise
division requests/recommendations for 1993 .
The City Administrator stated that the purpose of this meeting is
preliminary discussion on the 1993 budget in order for staff to
receive further direction on how to proceed.
The Finance Director reminded the Committee of the deadline dates
for 1993 budget approval in order to get the budget adopted and
levied.
Discussion as held on the projected 1993 dollar revenue for
Canterbury Downs. The consensus was to have this figure at $0. 00.
Cncl. Sweeney stated that fiscal disparities for Canterbury Downs
TIF District is currently being paid by the City as a whole. He
suggested transferring the fiscal disparities payment to the
Canterbury Downs district because if Canterbury Downs doesn't pay
their taxes, the City as a whole will have to pay the fiscal
disparities. Discussion was held.
The Finance Director will come back to the Committee with answers
to questions pertaining to the Canterbury Downs fiscal disparities
contribution.
Cncl. Sweeney questioned the cash flow "bump" that will be received
from the Shakopee Public Utilities and if this has been taken into
consideration for revenue projections in the 1993 budget proposal.
The Finance Director stated this has not been accounted for in the
proposed budget and explained why.
Discussion was held on the school levy that has not been exercised
to its fullest potential and how this may change if contributions
are no longer received from Canterbury Downs and this may affect
the 1993 budget.
The Finance Director will research the impact to the City if the
school district is forced to exercise full levy potential.
Official Proceedings of the August 11, 1992
Committee of the Whole Page -2-
Discussion was held on the dollar margin in the general fund
balance and what the dollar amount would be if it were lowered to
25 percent.
The Finance Director will bring back to the Committee the dollar
figure in the fund balance and what percent it is over 25%.
Discussion was held on the 1993 budget recommendations by each
division.
Council division discussion: The City Administrator stated that
nothing new is being proposed or recommended for the 1993 budget.
He added that the only place to increase may be in conference
and/or convention fees.
Cncl. Lynch and Cncl. Beard stated that as new members they saw the
benefit in the seminars pertaining to Councilmembers and requested
that the amount of $400 from 1992 be increased to $1, 000.
Discussion was held.
Cncl. Sweeney suggested these fees could be funded by a lowering of
the salaries for the Councilmembers and proposed a 50 percent
reduction in salaries. Discussion was held.
The consensus was that the salaries may have to remain as they
currently are in order for Councilmembers to qualify for P.E.R.A.
Discussion was held on reevaluating the level of services to the
residents of Shakopee vs. an increase in taxes.
Staff to come back with a reasonable dollar figure in the Council
division to achieve the goals of the City Council.
Administration division discussion: The City Administrator stated
that an increase of $41, 000 is recommended in order to fund a part
time administrative assistant position, to purchase cable studio
equipment, and fees for labor relations and professional services.
Discussion was held on the cable access studio equipment.
Clerk division discussion: The City Clerk stated that this budget
varies from year-to-year dependent upon election costs. She added
that in 1993 election costs would be down.
Finance division discussion: The Finance Director stated that an
increase of $34, 000 is being recommended. He stated this is for a
an additional employee and proposed additional cost for a change in
audit firms.
Discussion was held on the proposed cost for the change in audit
firms and how this cost could perhaps decrease with the inclusion
of the additional staff person.
Legal division discussion: The City Attorney stated that gross
misdemeanor cases have increased her work load and that of her
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Committee of the Whole Page -3-
secretary. She stated that an increase of $22,000 is being
proposed in order to add a part time secretary to staff, cost of a
printer, cost for a zoning ordinance consultant, and a pay equity
adjustment.
Discussion was held on the gross misdemeanor cases being handled by
the City Attorney. The City Attorney stated that in the past the
City had contracted out with the County Attorney for these
services, but that this is really the job responsibility of a City
Attorney and the County is no longer willing to do them.
The City Attorney stated that in order to get the zoning ordinance
re-written quicker a consultant is needed.
Discussion was held on using the Joint Prosecution (Scott
Prosecution Association) for gross misdemeanors. Staff was
directed to look into this option.
Planning division discussion: The City Planner stated that the
case load for the Planning Commission has increased over the past
year. He stated that an increase of $71, 000 is recommended in
order to fund five different studies: downtown, bypass noise,
traffic control, east Shakopee transportation, and County Road 17
bypass. Discussion was held on the need for these studies.
The City Planner will provide further information as to why these
studies are being recommended.
Discussion was held on checking out available staff from the
Pollution Control Agency for helping prepare the noise standards.
Discussion was held on limiting the number of items placed on the
Planning Commission agenda and the possibility of going to two
Planning Commission meetings per month.
Discussion was held on a possible increase in fees for the Planning
Department.
The City Planner to research the possibility of an additional
Planning Commission meeting per month.
General government buildings division discussion: The Ass't City
Administrator stated that an increase of $14 , 000 was being
proposed, which was for library improvements. He added that this
- - - particular area may need some amendments as he has not been able to
sufficiently review the requirements of the ADA.
Police division discussion: The Chief of Police stated they are
proposing an increase of $48,880, which includes retaining the 19th
officer, a Community Services Officer and the purchase of all
requested capital departmental equipment.
The Chief of Police stated that the capital equipment fund may have
to be increased once the State changes the computer format. He
stated he would also like to upgrade the civil defense sirens and
Official Proceedings of the August 11, 1992
Committee of the Whole Page -4-
purchase a PBT. He stated that one of their radar units is old and
currently being repaired. Discussion was held on the proposed
$2,500 for two mannequins. The Fire Chief stated they have two
that could be made available to the Police Department; thus
decreasing the proposed budget to $46, 880. The Chief of Police
stated he would like to increase his staff from 18 officers to 19
officers.
Discussion was held on the factors that would require an increase
in Police staff especially if Canterbury Downs is no longer in
existence.
Staff to return with research done from other communities as to
their number of officers.
Discussion was held on the need for a code enforcement officer.
Fire division discussion: The Fire Chief explained the
recommendation for an increase of $594, 000, which includes the
purchase of an aerial fire truck at $550,000 and the moving of the
$29,000 ambulance costs to the Fire division from the unallocated
division. He stated the increase in budget is also for five
additional fire fighters at a cost of $3 , 000 each.
Discussion was held on the need for extra firefighters due to the
projected City growth.
The Fire Chief to return to the Committee with further information
on the need for additional firefighters.
Discussion was held on the dollars that the City contributes to the
firefighter's pension fund.
Inspection division discussion: The Assistant City Administrator
stated the cost is less due to two full time positions going to
one full time position and a seasonal inspector. He added that
this has not reduced services for the City.
Engineering division discussion: The Public Works Director/City
Engineer stated they are proposing an increase of $83 , 570 for
additional staff for the Engineering Department. He stated the
department needs to have a full time Secretary, an Assistant City
Engineer, and an additional Engineering Technician and added that
this was ranked in priority level.
The Public Works Director suggested engineering fees go to a flat
fee of 7.5 percent of project cost which will generate additional
income. He reminded the Committee that the Engineering Department
is a revenue-making department with 60 - 80 percent of budget
recovered in fees.
The Public Works Director stated that the Engineering Department is
severely overloaded with the increase in City-wide projects. He
suggested that the Council either fund for additional personnel or
increase the budget to pay for additional consultant services.
Official Proceedings of the August 11, 1992
Committee of the Whole Page -5-
Discussion was held on consultant costs vs. using in-house
personnel.
The Public Works Director to research this and come back with more
accurate figures for the hiring of additional personnel.
Street division discussion: The Public Works Director stated that
being proposed is an increase of $24,780, which includes an
increase in overtime, additional maintenance worker, and increasing
the budget from $75,000 in 1992 by $20, 000 for pavement
preservation work.
The Public Works Director explained the need for an additional
maintenance worker.
Shop division discussion: The Public Works Director stated the
proposals in this division include an additional mechanic and the
retention of the summer helper from 1992 .
The Public Works Director explained the need for an additional
mechanic stating that the current shop mechanic repairs the
equipment for the Shakopee Public Utilities - and the Police
Department. He added that his time is billed out, but it takes
time to work on all the equipment from the various departments.
Discussion was held on utilizing service garages vs. hiring an
additional person.
Park division discussion: The Public Works Director stated that
they are proposing two summer employees for 1993 .
Pool division discussion: The Ass't City Administrator stated that
this budget is hard to determine but is proposing a minimum of
$35, 000 for facility upgrading due to ADA, health codes and
maintenance.
The Ass't City Administrator stated that the pool needs to be
brought up to ADA compliance, which will have a lot to do with the
dollar figures for this division. He added that the pool
concession stand does not meet code requirements, and once the
inspector comes in to certify the pool area for ADA guidelines,
they will require changes to the concession stand.
Recreation division discussion: The Ass 't City Administrator
stated this budget is very uncertain but currently they are looking
at a reduction in program supervisor and receptionist to three-
fourths time. He added he is considering no new programs and
perhaps even program cuts. He added that any reduction in this
division may possibly result in reduced services to the public and
to various associations.
The Ass't City Administrator stated that once all personnel are
relocated to the new City Hall, this will give him better knowledge
of the personnel needed.
Official Proceedings of the August 11, 1992
Committee of the Whole Page -6-
The City Council requested detailed memos from all department heads
on budget increases over last year before any action can be made.
Mayor Laurent commented on the success of the 1992 Derby Days and
complimented the Ass't City Administrator for all his efforts.
The meeting of the Committee of the Whole adjourned at 9:50 p.m.
Ju¢4th S. Cox ( —
Ci Clerk
Jane VanMaldeghem
Recording Secretary