HomeMy WebLinkAbout02/13/1996 TENTATIVE AGENDA
SHAKOPEE, MINNESOTA
CITY COUNCIL FEBRUARY 13, 1996
LOCATION: City Hall, 129 Holmes Street South
Mayor Jeff Henderson presiding
COMMITTEE OF THE WHOLE:
1] Roll Call at 5:00 P.M.
2] Approval of Minutes of January 23, 1996
3] Second Fire Station Site
4] Other Business
5] Adjourn
ADJOURNED REGULAR SESSION:
1] Roll Call following the Committee of the Whole
2] Discussion on process to fill City Administrator position
3] Other Business
4] Recess for an executive session to discuss matters permitted under attorney-client privilege
5] Re-convene
6] Adjourn to Tuesday, February 20, 1996 at 7:00 P.M.
Dennis R. Kraft
City Administrator
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
SHAKOPEE, MINNESOTA
COMMITTEE OF THE WHOLE JANUARY 23, 1996
Mayor Henderson called the meeting to order at 8:55 P.M. following the Economic
Development Authority Committee of the Whole meeting. Present: Councilmembers
DuBois, Zorn, Sweeney, and Link. Also present: Dennis R. Kraft, City Administrator;
Karen Marty, City Attorney; Judith S. Cox, City Clerk; and Gregg Voxland, Finance
Director.
Sweeney/Zorn moved to approve the minutes of January 9, 1996. Motion carried
unanimously.
Mr. Voxland stated that in 1967 the City Council set up the rural taxing district by
ordinance and modified it in 1978. It has not been discussed since 1978. There is a 50%
break on City taxes for parcels in the rural district. Mr. Voxland went on to explain that
the rural district is property classified by the assessor as agricultural homestead or
agricultural non-homestead and that it must be open, rural in nature and maintained in
farm crops or seeded.
Mr. Voxland stated that in Scott County only Shakopee and Prior Lake have a rural tax
district and that Prior Lake's is at 70%versus Shakopee's 50%.
Mr. Voxland stated that changes have occurred since 1978. The City has been making an
effort to fund operations more from user fees versus taxes i.e.: storm drainage.
Agricultural property already has a couple of forms in process to reduce taxes i.e.: green
acres. Using a chart provided to Councilmembers, he explained the effect of the rural
taxing district for two parcels.
Mr. Voxland explained that Council may want to review this current practice and make
modifications, phase it out, or leave it as it is. Discussion followed.
Mr. Elmer Marschall, 1356 East CR-78, explained that the rural tax district was
established to induce a friendly acquisition and that it should be in the records. City
services are not needed for agricultural land itself. He feels that there is no reason to
change the present practice.
Mr. Harry Weinandt, 1259 Maxine Circle, stated that the annexation proceedings started
in the early 60's and that the Common Council made certain stipulations and agreements.
The rural tax district was written to entice people to come into the City of Shakopee.
There is a moral obligation to the people in the rural area.
Official Proceedings of the January 23, 1996
Shakopee City Council (COW) Page -2-
Bob Schmitt, Deputy County Assessor, explained the green acre law for agricultural
property.
Cncl.Zorn asked when a decision would need to be made in order to affect the taxes due
in 1997. Mr. Schmitt responded that the County Auditor would probably need to know
by next fall prior to the mailing of the truth in taxation notices.
Jim Sorenson, 2585 Hoenstein, stated that he was having a conceptual difficulty dealing
with the concept of a subsidy of the urban taxes. He stated that those who live in a rural
agricultural setting do pay the full equivalent taxes on the homestead and the acre. What
is left is the agricultural property which is being used for totally non urban uses i.e.:
agricultural purposes, green space, woods, farm land, pasture. It's a totally different use,
it's taxed at a totally different rate, for a logical purpose. He stated that he fails to
understand where the point of subsidy comes from. He noted that he pays for storm
sewer every year, subsidizing the urban storm sewer, and what does he get, he gets water
from the development around him.
Discussion continued.
Zorn/Sweeney moved to table the rural tax district and directed staff to bring it back on
the first meeting in March. Motion carried unanimously.
Sweeney/Zorn moved to adjourn at 9:58 P.M. Motion carried unanimously.
uo(a J. 0/26
th S. Cox
Clerk
Recording Secretary
MEMO TO: Dennis R. Kraft, City Administrator
FROM: Barry A. Stock, Assistant City Administrator
RE: Fire Station Siting Process
DATE: February 8, 1996
INTRODUCTION:
Both the 1995 and 1996 Capital Improvement Project Budgets included funding to acquire
property for a new fire station. The total amount included in the 1996 Capital Improvement Fund
for this project equates to $120,000. Staff would like to briefly review with City Council the site
parameters established by the Fire Department in identifying an appropriate location for the new
facility. Staff is also seeking Council direction on the process to use in acquiring a site and timing
for a potential referendum for building construction.
BACKGROUND:
Attached is an information packet that was developed by the Shakopee Fire Department and
submitted to the Shakopee City Council in October of 1995. The document outlines the rational
for proceeding with the construction of a new fire station. The plan also outlines the locational
considerations taken into account in identifying appropriate facility sites. In October of 1995 the
City Council directed staff to begin to research and identify possible station sites near County
Road 16 and Vierling Drive.
Shown in attachment#2 is a map illustrating the sites that have been identified by staff as possible
facility sites. At the meeting on February 13th, I will briefly review the characteristics of each site
including development constraints and preliminary land acquisition estimates. Upon reviewing the
sites with City Council, staff would appreciate input regarding the preferred site option. Once a
preferred location is identified, staff would recommend that an appraisal be ordered to determine
an appropriate acquisition cost for negotiation purposes. The estimated appraisal cost ranges
between $2,000 and $3,000. It will take at least 30 days to complete the property appraisal.
Staff would like City Council to discuss a time schedule for a potential referendum. This year is a
presidential election year. Therefore, a primary election will be held on September 10th and the
general election will fall on November 5th. Staff would recommend that one of these two dates
be selected as the referendum date. In electing one of these dates, the City would incur cost
savings as a result of not having to schedule a special referendum. If Council desires to hold a
special referendum on a different date, staff estimates that the election costs would be
approximately $4,000. Funds were budgeted in the 1996 Budget to hold a special referendum.
Staff would recommend that to save staff time and money that either Sept. 10th or Nov. 5th be
selected as the referendum date. This would also ensure a greater voter turnout.
Staff would also like Council input regarding the use of an architect and/or construction
management firm for this project. Staff recommends that we utilize a design/build approach. This
was the method used in constructing the recreation center. Under this scenario we would
proceed in developing building plans and specifications immediately.
Preliminary construction figures and renderings could be generated fairly quickly. Should the
referendum fail, the plans could easily be shelved until the next referendum.
ACTION REQUESTED:
1. Provide staff with direction on a preferred site.
2. Recommend to City Council that an appraisal be ordered for the preferred site.
3. Select a referendum date.
4. Provide staff with direction on the use of an architect and/or construction manager.
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MEMORANDUM
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Karen Marty, City Attorney
DATE : February 13 , 1996
RE: Lebens & Link v. City
As you know, some months ago Messrs . Lebens and Link sued the
City, seeking to have Chapter 183 , Laws of 1965, declared to be
valid. If that law applied, we would have to follow it instead of
various contrary state laws . City government has operated since
the early 1970' s under the understanding that Chapter 183 was
repealed when the City' s charter was repealed.
The Court of Appeals now has ruled on this case. They
affirmed the District Court, agreeing that Chapter 183 , Laws of
1965, had been repealed. This decision is binding, unless Messrs .
Lebens and Link appeal to the Minnesota Supreme Court . Under Rule
117 of Civil Appellate Procedure, any appeal must be filed within
30 days after the Court of Appeals decision is filed. That would
be by March 7, 1996 .
The net effect of this decision is that the City government
continues to be controlled by Minn. Stat. Chapter 412 . The Court
has agreed that we should continue to follow the uniform code of
municipal government for statutory cities, Minn. Stat . Chapter 412 .
This is for your information. If you would like a copy of the
decision, or have questions about this, please let me know.
Signed " I ;-;1 ?)
K.ren Ma ty, City_ torney
TO: Dennis R. Kraft, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Property Insurance For EDA
DATE: February 12, 1996
Please reference attached memo. The EDA does not meet for several weeks and this issue
should not wait that long. The council represents a majority of the EDA board. I suggest polling
the council at the 2/13 meeting to obtain direction on this matter.
TO: Dennis R. Kraft, Executive Director
FROM: Gregg Voxland, Finance Director
SUBJ: Property Insurance
DATE: February 12, 1996
Introduction
Direction from the EDA is requested on property insurance coverage for parcels acquired in
blocks 3&4.
Background
Direction from the EDA is requested on having property insurance coverage for parcels recently
acquired in blocks 3&4. The cost for the three parcels acquired so far is shown below. The bold
numbers reflect the current status of the parcel. Insurance premiums are much higher for vacant
property.
125E 1st.
Occupied Vacant
$ 149 $1,337
137E 1st 183 1,647
213E 1st 203 1,823
The premiums cited above are for the actual market value(what the EDA just paid )for the
parcels. Normal insurance coverage for city buildings is for replacement cost.
Aside from any clause in a lease requiring the EDA to carry insurance,what would be the purpose
of insuring the buildings? If the intention is to demolish the building, there is no reason to insure.
If the building would be significantly damaged, there would be a large cost to replace or to bring
up to code. One reason to insure is to protect the investment(purchase price) in the building if
the EDA intends to keep or sell the building.
Alternatives
1. Insure
2. Do not insure
Action Requested
Discuss and give staff direction.