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HomeMy WebLinkAbout04/27/1993 TENTATIVE AGENDA SHAKOPEE, MINNESOTA COMMITTEE OF THE WHOLE APRIL 27, 1993 LOCATION: City Hall, 129 Holmes Street South Mayor Gary Laurent presiding 1) Approval of Minutes of March 23, 1993 2] Joint Meeting With Shakopee Public Utilities Commission a) Downtown Alley Undergrounding of Overhead Electric b] Acquisition of Property c) Provision of Legal Services to Shakopee Public Utilities d) Sec. 3 . 10, Subd. 8 - Sewer and Water Hookups Required e) Other Business 3) Other Business a] Issuance of Bonds by SPUC b] Reports by SPUC c] Parking for Dance Contest May 1st 4) Adjourn d] Set Committee of Whole May 11th, 5 : 30 Dennis R. Kraft City Administrator OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL COMMITTEE OF THE WHOLE SHAKOPEE, MINNESOTA MARCH 23 , 1993 Mayor Laurent explained to the members of the audience that this was a Committee of the Whole meeting of the City Council and that no action can be taken during the meeting. The purpose of the meeting is to discuss all capital projects as a whole and that the ice facility is one of the projects. If time permits, representatives of the Hockey Association will be given an opportunity to explain new information they have put together on cost estimates for an ice facility. Mayor Laurent called the meeting to order at 8 :34 P.M. with Councilmembers Vierling, Lynch and Sweeney present . Councilor Beard was absent . Also present : Dennis R. Kraft, City Administrator; Barry Stock, Assistant City Administrator; Judith S . Cox, City Clerk; Dave Hutton, Public Works Director/City Engineer; Gregg Voxland, Finance Director; Lindberg Ekola, City Planner; and Pete Ries, Fire Chief. Lynch/Vierling moved to approve the minutes of March 1, 1993 . Motion carried unanimously. Mr. Kraft stated that at the last Committee of the Whole meeting, staff was directed to look at major projects and how they could be funded. He explained the funding sources for capital equipment (aerial fire truck and other fire vehicles) . They include : Capital Equipment Budget, Equipment Certificates (spread over five years) , or General Obligation Bonds backed by a referendum. As far as capital improvements are concerned, Mr. Kraft stated that City Council has talked about a 2nd Fire Station and that a referendum could be used to fund it. He explained the funding sources for capital improvement projects and the balance on hand as of December 31, 1992 which include : storm drainage fund, sanitary sewer fund, park reserve fund, capital equipment fund, capital improvement fund and tax increment fund. Mr. Kraft then identified the potential projects which could be funded with the tax increment trust fund balance, the estimated year of construction, and their estimated cost . He then identified projects that could not be funded by tax increment funds . Mr. Kraft asked Mr. MacGillivray, Executive Vice President, Springsted Public Finance Advisors, to talk about the analysis that he has put together on tax increment funds projected to be received by the City during the life of the TIF districts . Mr. MacGillivray explained that there are two districts which continue to receive tax increment funds : District #2, Kmart District which expires in 2002, and District #5, Racetrack District which expires in 1994 . He explained that Springsted has analyzed the tax increment projections each year since 1996 to make sure that the funds can pay for outstanding bonds and determine what additional funds are available for new projects . Official Proceedings of the March 23, 1993 -- Shakopee City Council Page -2- Committee of the Whole Mr. MacGillivray stated that the tax increment fund has sufficient capacity to pay for everything (bonds sold to date) regardless of whether the racetrack is open or closed. He explained the assumptions he used in preparing the analysis : 1992 year-end balance in the TIF trust fund, TIF revenue estimates are based on numbers supplied by Scott County of actual property tax bills for 1993 (except as modified for the new Assessment Agreement) , the estimates assume no change nor delinquency in the amounts through 2000, no new increment is derived from new projects, no interest earnings are assumed, the Reimbursement Agreement with the School District remains in place through 2000, etc. In conclusion, Mr. MacGillivray explained that under Option 1 (the racetrack continues to pay taxes) , the cash balance will vary between $6 .1 million and $9 .4 million if the City doesn' t fund additional projects with TIF funds, this is the available increment . He said that these funds can fund ten of the eleven projects (listed by Mr. Kraft) on a cash bases without issuing debt and fund a community center at the $6 million level per the schedule in 1994 with a combination of cash at $3 .2 million and debt at about $2 . 8 million. If we do that we would almost have enough money for a six year period; we would have a shortage of about $41, 600 per year to fund all eleven projects per the schedule. Under Option II (the racetrack ceases to pay property taxes) , then the City can fund ten of the eleven projects on time per the schedule, but could only fund $3 .4 million worth for a community center of which $2,488, 000 would come from cash and $965, 000 would come from debt . This would result in a zero break even point with tax increment funds . All supporting schedules support these conclusions . Discussion followed on the various City funds, their balances, potential expenditures and operating costs that come out of the funds . City Council discussed putting some of the proposed projects on a referendum and which ones would be likely candidates . At 10 :56 P.M. , Mayor Laurent invited comments from members of the Hockey Association. Mr. Dave Kaufenberg explained what the Hockey Association members have done during the past three weeks to come up with additional information on the cost of an ice facility. (They disagreed with the figures projected by OSM in their report to City Council on March 1st . ) He introduced Mr. Kevin O'Brien, Greystone Construction, who has offered his services as construction manager for the facility at no charge except for reimbursable expenses . Mr. O'Brien reviewed the projected costs put together by the Hockey Association, taking advantage of local talent which has been volunteered. Mr. O'Brien stated that he has volunteered his firm Official Proceedings of the March 23 , 1993 _ Shakopee City Council Page -3- Committee of the Whole and his services to be construction manager on this project . He also has an architect and engineer who have agreed to provide their services for approximately 1% . He explained their projected costs for a basic facility at the existing location, a facility with an olympic arena, and an expanded facility that would include a concrete floor and new dasher boards. Mr. O'Brien noted that by utilizing the volunteered services they have trimmed $250, 000 off of OSM' s A-0 cost estimate . Mr. Kaufenberg stated that the group has put together something that they feel they can make happen and that the City would be getting a bargain price. Mayor Laurent thanked the group for their efforts and presentation. Mr. Stock stated that at the last meeting City Council asked staff to contact OSM and find out estimated costs for an A-0 project at the existing site, for a multi-complex facility at the existing site, and for a free standing A-O facility at another site. Mr. Stock explained that in answer to the questions, the cost estimates are : $24/sq ft for an A-O facility at the existing site, the ice arena portion of the Chaska multi-complex facility was $60/65/sq ft, and $45/50/sq ft for a free standing A-O facility at another site. [An A-O facility consists of a basic shell facility with no concrete floor. ] Cncl . Lynch stated that the City Council needs to look at this project along with all other projects . Cncl . Sweeney stated that he didn' t know about the bidding process and wondered how we get the architectural drawings. Mr. O'Brien responded that the plans and specs would be prepared by a professional architect, that volunteer help and donations would be used where available and that the remaining work and materials would be bid following the City' s bidding process . Mr. Kaufenberg stated that they were excited to show the City Council what they have put together, that they have cut $250, 000 from the A-0 Plan and that they have done everything they can do to make this a cost effective project . He said that they are fast approaching time constraints for next season. Mayor Laurent expressed his appreciation for all the work that everyone has done on this project. Mayor Laurent adjourned the meeting at 10 :45 P.M. iima. (71' tith S. Cox y Clerk Recording Secretary 0201 Subd. 7. Size of Pipe. The City may prescribe the kind and size of sewerage service pipe and connections, but the minimum when placed underground shall be four inches in diameter . Source: City Code Effective Date : 4-1-78 Subd. 8. Hookup Required - When. Any property abutting a public street or alley in which any sanitary sewer main or City water lines have been constructed must be connected to said sewer mains and water line within three (3) years or immediately when a private system becomes defective whichever occurs first. A system becomes defective when, but not limited to, such occurrences requiring replacement of drain field lines, pumping of tanks or replacement of well pump motor . Subd. 9. Permitted Uses of Private Wells. Owners of private wells may continue to use such wells for yard watering, car washing and similar uses providing it is entirely disconnected from the interior supply lines and there is no cross-connection to public water systems. Source : Ordinance No. 77 , 4th Series Effective Date: 10-29-81 SEC. 3.11. SEWAGE AND WASTE CONTROL RULES AND REGULATIONS FOR THE METROPOLITAN SEWER BOARD ADOPTED. Sewage and Waste Control Rules and Regulations for the Metropolitan Disposal System as adopted December 1, 1971, by the Metropolitan Sewer Board pursuant to statutory authority are hereby adopted by reference as though repeated verbatim herein. Source: Ordinance No. 89 , 4th Series Effective Date: 2-25-82 SEC. 3.12. CONSTRUCTION AND RECONSTRUCTION OF SANITARY SEWER MAINS. Subd. 1. Design Criteria and Standard Specifications. All construction of sanitary sewer mains and service laterals shall be strictly in accordance with the Design Criteria and Standard Specifications on file in the office of the City Engineer and open to public inspection during regular office hours. Such Design Criteria and Standard Specifications may be adopted and amended by resolution from time to time by the City and shall be uniformly enforced. Subd. 2. Permit Required. A written permit is required from the City Engineer to construct or reconstruct sanitary sewer or service laterals. Application for such permit shall be made on forms approved by the City and shall sufficiently describe the con- templated improvements, the contemplated date of beginning work and 43-1 (1-1-84) MEMO TO: Dennis R. Kraft, City Administrator FROM: Barry A. Stock, Assistant City Administrator RE: Inland Container Expansion - City Code Section 3 . 10, Sub. 8 DATE: April 27, 1993 INTRODUCTION: Staff has received several inquiries regarding a potential expansion at Inland Container Corporation. It appears at this time that they will be requesting a City building permit in the very near future. Staff would like direction and input from the Shakopee Public Utility Commission and/or City Council regarding the enforcement of City Code Section 3 . 10, Subd. 8 . BACKGROUND: Inland Container Corporation is not presently connected to City water at this time. Water mains have been installed on/adjacent to the site for 10 plus or minus years. Inland Container Corporation presently has their own well and water tower. If Inland Container Corporation does proceed in submitting a building permit application, staff will have to address City Code Section 3 . 10, Subd. 8 . (See attachment #1) Subdivision 8 states that when any property abutting a public street or alley in which any sanitary sewer main or City water lines have been constructed must be connected to said sewer mains and water line within three years or immediately when a private system becomes defective whichever comes first . A second issue that needs to be addressed in conjunction with the potential building permit is the issue of WAC (Water Accessibility Charges) . Staff would expect that Shakopee Public Utilities would determine the appropriate number of WAC units for this project consistent with past practice . The larger issue relating to the enforcement of City Code Section 3 . 10, Subd. 8 becomes a little more difficult . Staff is aware of several other residential units within the community that have not been required to comply with City Code Section 3 . 10, Subd. 8 . It appears that the City' s past practice in enforcing this subdivision has not been consistently applied. In many cases, the homes that are in non-compliance with this section are in areas of town where market values are fairly low. Staff would like direction and comment from Shakopee Public Utility Commission and City Council regarding the enforcement of Section 3 . 10 . Perhaps staff is unaware of past discussions in regard to this issue that could shed some light on whether or not we want to enforce said section or amend the Code. Additionally, if it is the desire of City Council to enforce Section 3 . 10, which department would be the appropriate enforcement body? A. Building Department B. Shakopee Public Utilities Commission C. Engineering Department D. Administration E. Some or all of the above ACTION REQUESTED: Discuss the appropriate steps to take in regard to the enforcement of City Code Section 3 . 10, Subd. 8 and provide direction to staff accordingly. Subd. 7. Size of Pipe. The City may prescribe the kind and size of sewerage service pipe and connections, but the minimum when placed underground shall be four inches in diameter . Source: City Code Effective Date: 4-1-78 Subd. 8. Hookup Required - When. Any property abutting a public street or alley in which any sanitary sewer main or City water lines have been constructed must be connected to said sewer mains and water line within three (3) years or immediately when a private system becomes defective whichever occurs first. A system becomes defective when, but not limited to, such occurrences requiring replacement of drain field lines, pumping of tanks or replacement of well pump motor . Subd. 9. Permitted Uses of Private Wells. Owners of private wells may continue to use such wells for yard watering, car washing and similar uses providing it is entirely disconnected from the interior supply lines and there is no cross-connection to public water systems . Source : Ordinance No. 77 , 4th Series Effective Date: 10-29-81 SEC. 3.11. SEWAGE AND WASTE CONTROL RULES AND REGULATIONS FOR THE METROPOLITAN SEWER BOARD ADOPTED. Sewage and Waste Control Rules and Regulations for the Metropolitan Disposal System as adopted December 1, 1971, by the Metropolitan Sewer Board pursuant to statutory authority are hereby adopted by reference as though repeated verbatim herein. Source: Ordinance No. 89 , 4th Series Effective Date: 2-25-82 SEC. 3.12. CONSTRUCTION AND RECONSTRUCTION OF SANITARY SEWER MAINS. Subd. 1. Design Criteria and Standard Specifications. All construction of sanitary sewer mains and service laterals shall be strictly in accordance with the Design Criteria and Standard Specifications on file in the office of the City Engineer and open to public inspection during regular office hours. Such Design Criteria and Standard Specifications may be adopted and amended by resolution from time to time by the City and shall be uniformly enforced. Subd. 2. Permit Required. A written permit is required from the City Engineer to construct or reconstruct sanitary sewer or service laterals. Application for such permit shall be made on forms approved by the City and shall sufficiently describe the con- templated improvements, the contemplated date of beginning work and 43-1 (1-1-84)