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HomeMy WebLinkAbout05/14/1996 TENTATIVE AGENDA SHAKOPEE, MINNESOTA CITY COUNCIL MAY 14, 1996 Mayor Jeff Henderson presiding WORKSESSION: 1] Roll Call at 4:00 P.M. 2] Approval of Minutes of April 9, 1996 3] 1997 Budget Discussion 4] Discussion - Excelsior Henderson Motorcycle (4:30 PM- 5:15 PM) 5] Other Business a] b] 6] Adjourn ADJOURNED REGULAR SESSION: 1] Roll Call following the Worksession 2] Condemnation of Easement 3] Hiring of Assistant City Engineer 4] Other Business a] b] 5] Adjourn at 6:45 P.M. to Tuesday, May 21, 1996 at 7:00 P.M. Barry A. Stock Acting City Administrator • OFFICIAL PROCEEDINGS OF THE CITY COUNCIL WORK SESSION SHAKOPEE, MINNESOTA APRIL 9, 1996 Mayor Henderson called the meeting to order at 5:00 P.M. with Councilmembers DuBois, Zorn, Sweeney, and Link present. Also present: Barry Stock, Acting City Administrator; Judith S. Cox, City Clerk; Bruce Loney, Public Works Director/City Engineer; Paul Bilotta, Community Development Director; Mark Huge, Fire Chief, and members of the Fire Department. Zorn/Link moved to approve the Minutes of March 26, 1996. Motion carried unanimously. Mr. Stock stated that staff has been working with members of the Fire Department on the two sites for the fire station. He said that we have an appraisal on the Vierling Drive site (site 1), but that little progress has been made on the CR-16 site(site 2) because there are two property owners involved and one (Canterbury Park) has been busy in the legislature. Both Valley Green and Canterbury Park are in agreement with the concept of the land swap for the 5-acre site, but that we haven't gotten into specifics. Discussion ensued on the complexity of putting together a land swap for the site on CR- 16 and the cost for making this site buildable as opposed to the cost for the Vierling Drive site. Cncl.Sweeney noted that there is $120,000 in the 1996 budget for acquisition of a site which amount would cover the development costs for the CR-16 site so that these costs would not have to be included in a referendum. If the Vierling Drive site is selected, additional funds would be needed that are not budgeted. Mr. Loney explained that the Vierling Drive site has additional acreage which could be utilized for outside storage for the Public Works Department as well as for a salt storage shed, when needed down the road. This site presents an opportunity for storage that would be outside of view from the public. Mr. Huge reviewed the pros, as seen by the Fire Department, for the Vierling Drive site as well as the disadvantages for the CR-16 site. Discussion continued. DuBois/Link moved to direct staff to explore the Vierling Drive site further as a site for a new fire station. Motion carried with Cncl.Zorn and Sweeney opposed. There was a nine minute break between 6:22 P.M. and 6:31 P.M. Discussion ensued on the process to be utilized for the development of plans and specifications for a new fire station. Mr. Stock explained the difference between using a general contractor as opposed to using a construction manager. Official Proceedings of the April 9, 1996 Shakopee City Council (Work Session) Page -2- Zorn/Sweeney moved to direct staff to explore Option C - architect/construction manager for a new fire station. Motion carried with Cncl.Link and DuBois opposed. Mr. Neil Peterson, the City's representative on the Metropolitan Council, introduced himself to the new Councilmembers. Mr. Bilotta identified the areas that the Metropolitan Council has control over that impact development in Shakopee including an agreement between the City and Met Council relating to the Chaska Interceptor. He explained that some of the interpretations of the "Blue Print" put together by Met Council do not address some of Shakopee's concerns and needs in order to continue development in a timely manner. Mr. Peterson explained the number of responsibilities of the Metropolitan Council, how large an organization it is and the difficulty of its making change because of its complexity. He acknowledged a need for a regional organization to operate a model for future growth within the region. Mr. Peterson encouraged the City to continue working with the Met Council staff on the City's needs and not to give up. He reiterated that the Met Council is in charge of regional growth and that there will be some changes in the rules within the next eight months. Mr. Peterson stated that he believes that the Met Council will be focusing on development along corridors and that Shakopee is along a corridor(bypass). Cncl.Sweeney stated that restricting MUSA will be changing Shakopee's mix of housing. Mr. Peterson offered to be utilized as a resource to the City Council. Judy Cox explained that City Council had directed staff to place the request of Mr. Fuller for an on sale liquor license on a work session agenda and to provide information on how neighboring cities apportion their classes for liquor licenses. She stated that her memo provides a brief background on the City's creation of the Classes for liquor licenses as well as information from neighboring communities on whether they have classes and if they allocate their licenses to specific classes. She identified the options Council may wish to consider regarding Mr. Fuller's desire to obtain an on sale liquor license within the Class "A" category (for which there are no licenses available at this time). Official Proceedings of the - April 9, 1996 Shakopee City Council (Work Session) Page -3- Cncl.Sweeney and Zorn expressed support for retaining the Classes of licenses. Cncl.Zorn suggested that the size of the dance floor at the ballroom be included when calculating the size which would then make the ballroom eligible for a Class"B" license where there is a license available. Brief discussion followed. Sweeney/Zorn moved to direct staff to request updated information on the size of all on sale liquor establishments when sending out renewal applications; and, to invite Mr. Fuller to apply for an on sale liquor license based upon the customer floor area, including the dance floor. (Staff will provide the new information on the size of establishments along with options for making adjustments to the City's current allocation of liquor licenses to Council for consideration at a later date.) Motion carried unanimously. Mr. Stock provided Council with possible dates for a work session with Shakopee Public Utilities Commission: April 23, April 30th, and May 14th. Cncl.Sweeney pointed out that May 14th has already been set for a budget work session and that the Commissioners would prefer to meet sometime in May. Staff will pursue the selection of a date with the SPUC Manager. Mayor Henderson asked the Councilmembers to keep April 23rd open. Link/Sweeney moved to adjourn at 7:50 P.M. Motion carried unanimously. 11111' LLebt-1 0S). th S. Cox y Clerk Recording Secretary e3 TO: Barry Stock, Acting City Administrator FROM: Gregg Voxland, Finance Director SUBJ: 1997 Budget Discussion DATE: May 8, 1996 Introduction Initial budget discussions with department heads is set for May 14. Discussion is intended to be of a conceptual nature(ideas, not numbers)to foster an exchange of ideas for service levels and for council to give general directions to staff for preparation of the operating budget requests for 1997. Background The proposed format is for council to freely discuss with staff its desires for the preparation of the 1997 operating budget and give direction including the following areas; 1. Additional services or expenditure items that council wants included in the budget. 2. Services or expenditure items that council wants to cut or reduce from the budget. 3. Requested information that is more detailed than just a conceptual level for staff to provide at subsequent meetings. 4. Taxation level. 5. General policy direction. Council is requested to bring their 1996 budget for reference if needed. If council desires, each department head has been directed to be prepared to give council a very brief review of significant budget changes for 1997 compared to 1996 that are under consideration covering staffing levels, services and service levels and expenditure items. The General Fund-fund balance has grown to a substantial level compared to target. Council previously set the target at 15%of the following years expenditure budget. This was partially in response to concerns that the state was looking to reduce aid to cities with large fund balances. Concern has shifted to having a larger balance in order to be able to better absorb cuts in state aid. The minimum balance should be no lower than 12%to cover negative cash flow until the first tax settlement is received. Target fund balance several years ago was 30 to 40%. Moody's(bond rating firm the city uses) likes to see larger balances such as in the 40 to 50% range. Fund balance at the end of 1994 was at 26%and at the end of 1995 was at 43%. Ten percent equals$581,000. Council is scheduled to discuss the 5 year Capital Improvement Plan on June 4th and may want to use some of the General Fund fund balance to support the projects contained therein versus reducing taxes or funding a new fire station. More detailed information on fund balance will be presented with the annual financial report in June. AGENDA CITY OF SHAKOPEE CITY COUNCIL WORKSHOP Daniel Hanlon, Co-Founder • Introduction of Excelsior-Henderson Motorcycle Manufacturing • History and heritage of Excelsior-Henderson Motorcycle Manufacturing • Overview of the company's development to date • The future of Excelsior-Henderson Motorcycle Manufacturing • Advantages of Shakopee as the potential location of the company Thomas Rootness, CFO/Jim Morrell, Board of Advisors • Review of investment in company, to date • Anticipated additional equity and debt financing Patrick Pelstring, Public Resource Group, Inc. • Overview of the site location process • Review of proposed financing r . / N PUBLIC RESOURCE GROUP, INC. Business Development&Finance Specialists MEMORANDUM TO: Mayor Jeff Henderson Jane DuBois, City Councilmember Cletus Link, CityCouncilmember Robert Sweeney, City Councilmember Burt Zom, City Councilmember Barry Stock, Acting City Administrator FROM. Patrick Pelstring, Public Resource Group, Inc. DATE: May 14, 1996 SUBJECT: Excelsior-Henderson Motorcycle Manufacturing We appreciate the interest and support expressed by the City of Shakopee as a potential site for Excelsior-Henderson Motorcycle Manufacturing's corporate headquarters and production facility. The company's interest in the Shakopee site is very strong and we would like to initiate serious consideration of an overall financing plan with the City. The site search has encompassed 12 states and the company has visited 8 communities. A key decision point is the availability of funding to support the company's land acquisition and facility financing. Shakopee's proposal, providing tax increment financing is greatly appreciated. However, several communities have offered to fund the real estate financing through the use of a general obligation tax increment bond in an estimated amounts of $6,000,000 - $6,500,000. We would respectfully request an initial review by the Shakopee City Council of a similar proposal in Shakopee. This method of financing has been utilized several times throughout the State of Minnesota over the past several years. Generally, the City (and/or EDA) issues the general obligation bonds and pledges the tax increments as a part of the bond debt service. The City/EDA executes a lease/purchase agreement with the benefiting company for a term equal to the term of the bonds. This lease and tax increments would fully amortize the debt service on the bonds. The terms and conditions of the lease between 4205 Lancaster Lane North* Suite 1100 • Minneapolis, Minnesota 55441 • (612) 550-7979 ♦ (612) 550-92_1 Fax l 1 i, the City/EDA and the company would be the result of negotiations between the City and the company to address their respective concerns. This process does not require a City election, due to the pledge of the tax increments. We understand that the City of Shakopee has not completed a project financing structure as we are suggesting. The City's fiscal consultant and bond counsel are familiar with this approach and could be utilized as a resource to examine this opportunity. • We appreciate your consideration of this request and look forward to working with you. dp Cha MEMORANDUM TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Karen Marty, City Attorne [/l DATE : May 1, 1996 RE : Condemnation of Easement BACKGROUND: Earlier this year the City Council adopted Resolution No. 4406, which authorized the City Attorney to acquire certain easements by eminent domain. The easements are for flooding that occurs on two lots in the Meadows 4th Addition. The developer of that subdivision provided the City with inadequate easements on two lots . In adopting the resolution, the City Council also directed the City Attorney to obtain a cost reimbursement agreement from Pioneer Engineering for the cost of acquiring the easements . We now have a letter agreement from the attorneys for Pioneer Engineering, whereby Pioneer Engineering agrees to pay all expenses, and their attorney agrees to undertake the work. The City will have no financial responsibility for this project, except for the cost of staff time spent monitoring the litigation (which should be minimal) . ALTERNATIVES : 1 . Authorize the appropriate City officials to execute the letter agreement with Moss & Barnett and Pioneer Engineering. 2 . Direct staff to seek specified amendments to the letter agreement . 3 . Do not execute the letter agreement . RECOMMENDATION: Move to authorize the appropriate City officials to execute the letter agreement with Moss & Barnett and Pioneer Engineering. [1MEMO] LAW OFFICES MOSS & BARNETT A PROFESSIONAL ASSOCIATION HERMAN J.RATELLE J.MICHAEL HIRSCH 4800 NORWEST CENTER LAURA J.McKNIGHT BRIAN T.GROGAN PAUL VAN VALKENBURG EDWARD J.BLOMME KEVIN M.BUSCH MICHAEL J.LUZUM MICHAEL L.FLANAGAN ANN K.NEWHALL 90 SOUTH SEVENTH STREET SUSAN C.RHODE CORY LARSEN BETTENGA THOMAS A.KELLER III MICHAEL J.AHERN MINNEAPOLISMINNESOTA 55402-4129 THOMAS M.HUGHES KLAY C.AHRENS , W.SCOTT HERZOG JEFFREY L.WATSON NICK HAY WAYNE A.HERGOTT THOMAS J.SHROYER THOMAS A.JUDD OF COUNSEL JAMBS E.O'BRIEN DALE M.WAGNER TELEPHONE (612) 347-0300 DEANNE M.GRECO RICHARD C.JOHNSON PAUL G.NEIMANN DAVID P.JENDRZEJEK CASS S.WEIL EDWARD L.WINER CURTIS D.SMITH FACSIMILE (612) 339-6686 M.CECILIA RAY RETIRED WILLIAM N.KOSTER DAVE F.SENGER JOSEPH R.KLEIN J.BRAINERD CLARKSON WILLIAM A.HAUG ROBERT A.BRUNIG NANCY M.KBSKIS FREMONT C.FLETCHER CHARLES A.PARSONS,JR. LOUIS J.SPELTZ WRITER'S DIRECT DIAL NUMBER J.MICHAEL COLLOTON VERNE W.MOSS RICHARD J.JOHNSON MITCHELL H.COX TIMOTHY B.WUESTENHAGEN JAMES H.HENNESSY ROBERT J.LURES MICHAEL J.BRADLEY PAUL B.ZISLA STANLEY R.STASEL JAMES A.RUBENSTEIN PETER A.KOLLER VINCENT J.FAHNLANDER HOWARD S.COX THOMAS R.SHERAN RICHARD J.KELBER 347-0328 CHARLES E.JONES PATRICK F.FLAHERTY May 3, 1996 Karen Marty, Esq. City Attorney City of Shakopee 129 Holmes Street South Shakopee, MN 55379-1351 Re: Resolution No. 4406 Eminent Domain Proceeding Our File 14970.14 Dear Ms. Marty: This letter is to set forth the terms and conditions of an agreement by Moss&Barnett, A Professional Association("M & B"),to act as Special Counsel to the City of Shakopee for the purposes authorized by Resolution No. 4406. M&B will serve as Special Counsel to the City to complete the acquisition of certain property by eminent domain in accordance with the Resolution. M&B will complete all necessary legal work to initiate the proceeding, effectuate the transfer of title to the City, determine the amount of the award, and file for record documentation of the transfer of title. M & B will submit pleadings and other documentation to you for your review and comment and, as you deem appropriate, final authorization. All costs and expenses of the condemnation proceeding including those before the District Court, Court of Appeals, and the Supreme Court will be the responsibility of Pioneer Engineering, P.A. ("Pioneer"). Pioneer will pay M& B's fees, costs and disbursements, petitioner's appraisal fees,the statutory appraisal fees of the property owners, expert witness fees,the award made to the property owners or settlement amounts paid to the owners, commissioners' fees,title fees, and document recording charges (collectively, "Expenses"). However, Pioneer shall not be responsible for any costs or charges of the City with respect to any participation in the proceeding by any official of the City, including case management. Prior to our firm commencing the condemnation proceeding, we will provide the City with reasonable s.Bre evidence that Pioneer has deposited$10,000.00 in our trust account to pay the Expenses. Te k47-€4' yA 100 ��4.5 OF StCL MOSS & BARNETT A PROFESSIONAL ASSOCIATION Karen Marty, City Attorney May 3, 1996 Page 2 Expenses shall be charged against such deposit,which Pioneer shall replenish as reasonably requested by the City or M&B. Due to the fact that Pioneer is obligated to pay the condemnation award,the City agrees not to settle the condemnation case without the consent of Pioneer. The City also agrees that the City will consent to a settlement of the condemnation case if Pioneer makes a written request that the City approve the settlement and provides reasonable assurances to the City that Pioneer will pay the settlement amount. Final City approval shall also be subject to execution of settlement papers reasonably satisfactory to the City. The City will consult with Pioneer before making a decision whether to appeal the commissioners' award to the District Court and will not appeal the award without the consent of Pioneer. Upon Pioneer's request that the City appeal the commissioners' award to the District Court,the City will authorize M& B to notice the appeal and undertake the District Court action as long as Pioneer(i)makes a timely written request to the City that the City notice such appeal; (ii)deposits with the City an amount equal to the amount of the condemnee's appraisal of value; and(iii) agrees to pay all Expenses of such appeal. The despotism shall be made in a form and manner reasonably acceptable to the City prior to the deadline for noticing the appeal. Any appeal to the Court of Appeals or the Supreme Court shall be subject to the same terms and conditions as an appeal to the District Court. M&B will proceed with due diligence and in good faith,but as you know,we cannot predict or guarantee the results. We will keep you informed of our progress and will consult with you regarding substantive and strategic matters. Please indicate your agreement with this letter by countersigning one of the enclosed copies and returning it to me. Do not hesitate to call if you have any questions. Very truly yours, MOSS & BARNETT A Professional Association ov‘^_o S-1./S-14 Paul B. Zisla PBZ/dap cc: Paul Cherne William A. Haug, Esq. MOSS & BARNETT A PROFESSIONAL ASSOCIATION Karen Marty, City Attorney May 3, 1996 Page 3 Pioneer Engineering, P.A. By President City of Shakopee By Mayor and By City Administrator and By City Clerk 3d0ykdNS 40 WO 9b6 43130311 C- 13 MEMO TO: Barry A. Stock,Acting City Administrator FROM: Bruce Loney, Public Works Director 13.L SUBJECT: Assistant City Engineer DATE: May 10, 1996 MEETING DATE: May 14, 1996 INTRODUCTION: On March 19, 1996, the City Council authorized the appropriate City officials to take the necessary steps to fill the Assistant City Engineer position for the Engineering Department. BACKGROUND: On Wednesday, May 8, 1996, interviews were conducted for the five candidates for the Assistant City Engineer position. The interview team consisted of the Acting City Administrator, Community Development Director and the Public Works Director. Consensus was reached with respect to the preferred candidate. At this time, staff is recommending that Mr. Joel Rutherford be appointed to fill the Assistant City Engineer position effective June 3, 1996. Mr. Rutherford is currently a project engineer with the consultant engineering firm of Bolton & Menk, Inc. in the City of Burnsville. He also has eight years of municipal engineering experience with the City of Prior Lake and is a registered professional engineer in the State of Minnesota. Mr. Rutherford has agreed to accept the position at Step 6 of the Non-Union 1996 Pay Plan for the Assistant City Engineer which is an exempt position, at $44,768.00. It should be noted that the position is subject to the customary probationary period. Due to the workload within the Engineering Department, staff is requesting that the position appointment be made as quickly as possible. ALTERNATIVES: 1. Appoint Mr. Joel Rutherford to the Assistant City Engineer position at Step 6 of the Non-Union 1996 Pay Plan($44,768.00), effective June 3, 1996. 2. Do not fill the full time Assistant City Engineering position at this time. RECOMMENDATION: Staff recommends Alternative No. 1. ACTION REQUESTED: Appoint Mr. Joel Rutherford to the Assistant City Engineer position at Step 6 of the Non- Union 1996 Pay Plan($44,768.00), effective June 3, 1996. BL/pmp HIRE rya , MEMO TO: Mayor and City Council FROM: Barry A. Stock, Acting City Administrator RE: Non Union Pay Plan Amendment -Res. No. 4441 DATE: May 13, 1996 INTRODUCTION: Last month the Shakopee City Council authorized staff to take the appropriate steps necessary to fill an Assistant City Engineer position. Interviews have been conducted and staff is prepared to recommend a candidate to City Council for their consideration. It would be appropriate at this time to amend the 1996 Pay Plan accordingly to establish the position classification and pay schedule. BACKGROUND: Attached is Resolution No. 4441, A Resolution Amending Resolution No. 4352 establishing the 1996 Pay Plan. The resolution establishes the position of Assistant City Engineer and corresponding pay schedule. The Assistant City Engineer position is a benchmark position with a point value of 87. A 87 point value corresponds to a pay range of$37,699 to $47,124. This is consistent with the pay range that was submitted to City Council when the establishment of the position was discussed. ALTERNATIVES: 1. Offer Resolution No. 4441, A Resolution Amending Resolution No. 4352 establishing the 1996 Pay Plan. 2. Do not approve Resolution No. 4441. 3. Table action pending further information from staff. STAFF RECOMMENDATION: Staff recommends alternative No. 1. ACTION REQUESTED: Offer Resolution No. 4441, A Resolution Amending Resolution No. 4352 establishing the 1996 Pay Plan. RESOLUTION NO. 4441 A RESOLUTION AMENDING RESOLUTION NO. 4352, ADOPTING THE 1996 PAY SCHEDULE FOR THE OFFICERS AND NON-UNION EMPLOYEES OF THE CITY OF SHAKOPEE WHEREAS, on December 5, 1995, the Shakopee City Council adopted Resolution No. 4352 approving the 1996 pay Schedule for the Officers and Non-Union Employees of the City of Shakopee; and WHEREAS, certain conditions and circumstances have changed to make it desirous to amend the 1996 pay Schedule for Officers and Non-Union employees of the City of Shakopee at this time. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Shakopee, Minnesota, that the Assistant City Engineer exempt position classification is hereby added to the Pay Schedule for the Officers and Non-Union employees of the City of Shakopee at the following pay steps: Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 $37,699 $40,055 $41,234 $42,412 $43,590 $44,768 $45,946 $47,124 Adopted in Adjourned Regular Session of the City of Shakopee, Minnesota held this 14th day of May, 1996. Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form: City Attorney Cc - # QLD, MEMO TO: Barry A. Stock,Acting City Administrator FROM: Bruce Loney, Public Works Director . SUBJECT: Barricade Usage for American Legion Parade DATE: May 13, 1996 MEETING DATE: May 14, 1996 INTRODUCTION: The American Legion will be having a parade on May 19, 1996. This parade will be along 4th Avenue in the City of Shakopee and the Police Chief is requiring the Legion to barricade the side streets in order to allow this parade to occur. BACKGROUND: The City has been approached by officials with the American Legion on the use of Public Work's barricades on 4th Avenue. Per the City of Shakopee 1996 Fee Schedule, under Public Works Equipment on Page 14,the rental price for barricades without flashers is $8.00 per barricade per day. The American Legion will need 19 barricades in order to have their parade. City staff does not have the authority to waive fees on equipment rentals. City Council can do this if they so choose. ALTERNATIVES: 1. Waive the fee rental of barricades for the American Legion parade on May 19, 1996. 2. Do no waive the fees. RECOMMENDATION: Since the American Legion is a non-profit organization and parade has community value, staff is recommending Alternative No. 1,which waives the fee for the barricade usage associated with this parade. ACTION REQUESTED: Move to waive the fees for the barricades for the May 19, 1996 American Legion Parade.