HomeMy WebLinkAbout5.F.2. Approval of Minutes: May 01, 2012 OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL
REGULAR SESSION SHAKOPEE, MINNESOTA MAY 1, 2012
1 -2. CALL TO ORDER/ROLL CALL/PLEDGE OF ALLEGIANCE
Mayor Tabke called the meeting to order at 7:00 p.m.
Present: Mayor Brad Tabke, Councilmembers Pamela Punt, Matt Lehman, Steve
Clay and Jay Whiting
Absent: None
Staff Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City
Administrator; R. Michael Leek, Community Development Director;
Bruce Loney, Public Works Director/Engineer; Craig Robson, Police
Captain; Jim Thomson, City Attorney and Julie Linnihan, Finance
Director /City Clerk
3. APPROVAL OF THE AGENDA
Motion: Punt/Whiting moved to approve the Agenda. Motion carried 5 -0.
4. CONSENT BUSINESS
McNeill advised that there were two corrections to the Consent Agenda. The first was a
date correction for the Retirement of Sgt. Bob Forberg. The second was a word
correction for the Downtown Classic Car Cruise which is sponsored by Brian Turtle, and
not the Shakopee Downtown Partnership.
Motion: Lehman/Whiting moved to approve the Consent Agenda as amended. Motion
carried 5 -0.
A. Personnel
1. Moved to authorize the promotion of Ryan Halverson to the position of
Engineering Tech IV, at Step B of Grade 7 of the City's 2012 Non -Union Pay
Plan, effective May 7, 2012.
Move to authorize the hiring of Richard Thomason as an Engineering Tech IV, at
Step E of Grade 7 of the City's 2012 Non -Union Pay Plan, with the opportunity
to move to Step D after six months of successful job performance; and the
granting of starting balances of 40 hours of vacation and 40 hours of sick leave,
subject to the successful completion of the background check and pre-
employment physical and drug test.
2. Moved to accept, with regret, the resignation of Sergeant Bob Forberg, effective
May 20, 2012.
3. Moved to authorize the promotion of Fred Radde to the position of Sergeant, at
Step 3 of the current wage schedule for Sergeant, effective May 21, 2012.
4. Moved to authorize the hiring of Mike Santos as a police officer at Step 1 of the
current labor contract, subject to the successful completion of pre - employment
physical and psychological evaluations.
Official Proceedings of the May 1, 2012
Shakopee City Council Page 2
B. Parks, Recreation & Natural Resources
None
C. Police and Fire
None
D. Community Development
1. Moved to approve Ordinance No. 855, An Ordinance Of The City Of Shakopee
Approving An Amendment to Shakopee City Code Sec. 4.03. Building Permits,
Subd. 1. Fence Construction Requirements.
E. Public Works and Engineering
1. Moved to authorize the appropriate City officials to execute the Amendment No.
1 to Shakopee Interceptor and Lift Station Transfer Agreement between the City
of Shakopee and the Metropolitan Council.
2. Moved to approve the extension agreement from WSB & Associates, Inc. to
provide design and survey services for the Valley View Road Improvements
Project, Project No. 2012 -7 from Evergreen Lane to Sarazin Street.
F. General Administration
1. Moved to approve bills in the amount of $306,891.82 and electronic transfers in
the amount of $381,221.52 for a total of $688,113.34.
2. Moved to approve the minutes of April 10, 2012. ,
3. Moved to authorize the closure of Lewis Street from First and Third Avenues on
alternating Friday nights from 6:00 p.m. to 10 p.m., beginning June 1 and
ending August 23, 2012, for the Downtown Classic Car Cruise.
4. Moved to authorize the appropriate officials to enter into a contract amendment
with Multi- Services Incorporated for custodial services at the Community Center
and Youth Building, increasing the monthly cost to $3,913 per month.
5. Moved to increase the "not to exceed" amount for the previously approved
Engineering Building Door Replacement Project from $73,500 to $82,000.
5. RECOGNITION OF INVOLVED CITIZENS BY CITY COUNCIL
No one responded.
6. PUBLIC HEARINGS
A. EDA and Council Open Public Hearing on Proposed Tax Increment Financing
and Contract for Private Development for Trident Development, LLC
Motion: Whiting/Punt moved to open the public hearing. Motion carried 5 -0.
Leek stated that because the Trident representatives are unable to attend the
meeting, the Council and EDA are asked to take testimony from anyone that
may be in attendance for this issue and then continue the public hearing to May
15, 2012.
Leek said the project is an 80 -unit, approximately 84,000 square foot, senior
Official Proceedings of the May 1, 2012
Shakopee City Council Page 3
rental housing facility. The City is asked to designate a housing TIF district
with a maximum term of twenty -five (25) years. Tax increment over the term
of the district is projected to be about $5.45 million, although only $1 million in
increment will be available as assistance for the project. As a result of the
approval of the TIF assistance, the project would designate 20% (16) of the
units for persons at 50% of the median income in the county.
Tabke asked if there was anyone in the audience that wished to speak at the
public hearing. No one responded.
Motion: Lehman/Whiting moved to continue the public hearing to May 15, 2012.
Motion carried 5 -0.
B. Consideration of Proposed Bridgewater L.L.0 /Trystar Tax Abatement
Financing and Contract for Private Development.
Motion: Whiting/Punt moved to open the public hearing. Motion carried 5 -0
Leek said that Council has seen a full presentation regarding Trystar's plans for
a corporate headquarters on 28 acres in the Dean Lakes PUD. Under the terms
of the Contract for Private Development, Trystar will construct a 130,000
square foot structure with manufacturing, storage /warehousing and office
components. Within two years of completion of these minimum improvements,
Trystar will commit to the creation of eighty full time equivalent jobs, to be
paid at a rate of at least 275% of the federal minimum wage. Of the 80 jobs, 55
will be moved from their current facility in Faribault, Minnesota and 25 will be
new jobs.
The proposed maximum abatement term is fifteen years, and the maximum City
abatement is $512,796.00.
Tom Denaway, Analyst for Springsted Inc., the City's Financial Advisor,
discussed details of what went into the tax abatement projections, what tax
abatement is, and the major components of tax abatement. This includes the
statutory findings that are made by the City when it adopts a tax abatement
project; the participation, the term, the impact, and the amount of tax abatement
that is being provided and the form of the assistants.
Julie Eddington, attorney for the City with Kennedy and Graven, stated that in
the Contract for Private Development there is a provision for abatement. The
abatement is granted with respect to the master development agreement
between the City, EDA, and Ryan Construction, as well as a separate abatement
for Trystar for the parcel that it is purchasing. Ms. Eddington also discussed the
contract for development with regard to this project.
Kent Carlson of Bridgewater, LLC, provided an overview of how the abatement
works with regard to the Dean Lakes Development.
Official Proceedings of the May 1, 2012
Shakopee City Council Page 4
Rick Dahl, owner of Trystar, Inc., advised Council that he was very excited to
relocate his business to Shakopee and thanked Council for supporting his
company.
Motion: Punt/Clay moved to close the public hearing. Motion carried 5 -0.
Motion: Lehman/Whiting offered Resolution No. 7192, Resolution Granting A Property
Tax Abatement And Approving A Contract For Private Development (including
a Business Subsidy Agreement) For Certain Property In The City Of Shakopee,
and moved its adoption. Discussion followed.
Cncl. Lehman commented how he was on the City Council in 2003 when the
Dean Lakes Development was planned, and that he is pleased with how well the
plans for that development have turned out.
Tabke asked for vote on the motion. Motion carried 5 -0.
Clay thanked former Mayor John Schmitt for his work in the initial
development and planning of the project.
7. BUSINESS REMOVED FROM CONSENT AGENDA
None
8. GENERAL BUSINESS
A. Personnel
None
B. Parks, Recreation & Natural Resources
None
C. Police and Fire
None
D. Community Development
None
E. Public Works and Engineering
None
F. General Administration
1. Impose Penalties for Alcohol Violations.
McNeill explained to Council that in 2002 the Council adopted penalties
for the sale of alcohol to a minor. The adopted ordinance also allows the
City Administrator to impose the penalties for a first or second incident
within a three -year period, upon an admission by the licensee that the
licensee furnished or sold alcoholic beverages to a minor.
Chipotle Mexican Grill of Colorado, LLC has admitted to their first
violation and has signed the "Waiver of Admission of Violation ".
Official Proceedings of the May 1, 2012
Shakopee City Council Page 5
Mr. Simon Lai of Asian Hon, Inc., 1135 1 Avenue East, requested to
speak to Council regarding their $500 fine. The "waiver" for Asian Hon
had not been signed or returned.
Mr. Lai stated that they have been in business for 15 years and have never
had a violation. He also stated that his mother was the one who served the
minor the alcohol. He stated that it happened because she didn't have her
glasses on to properly read the person's identification. He is seeking
leniency with regard to the fine.
Capt. Craig Robson addressed Council and explained the policy and
procedures used for conducting a compliance check. Councilor Lehman
stated that the Council needed to be consistent in imposing penalties for
alcohol violations.
Motion: Clay /Whiting moved to acknowledge that the violation did occur at Asian
Hon for the sale of alcohol to a minor and impose a penalty for the first
violation in the amount of $1,000 and a suspension of the license for one
day, and suspend $500 of the fine and the one day suspension for one year
on the condition that the licensee has no further incidents of furnishing or
selling alcoholic beverages to a minor during that one -year period. Motion
carried 5 -0.
2. Goal Setting Session Adoption
McNeill asked Council to adopt the results of the goal setting sessions held
in March, and specifically adopt the priorities for the next twelve to
eighteen months which were identified in those meetings.
Motion: Whiting/Punt moved to adopt the results of the March 2012 Goal Setting
workshops, the twelve priorities and designating them as High, Medium
and Low, and direct staff to search and bring back recommendations for the
priorities implementation. Motion carried 5 -0.
3. Discussion Topic — May 15 City Council Meeting.
Tabke said that a discussion topic is needed for the May 15 meeting.
After discussing several topics, it was decided that the topic would be
Council's philosophy for Budgeting and Financial policies.
12. COUNCIL MEMBER REPORTS
Lehman No report
Clay No report
Whiting Attended the Chamber Board meeting. He said that the Chamber is working
on the sign ordinance proposal for Council. He also attended the school board
meeting. The naming of the two Jr. High Schools will be Shakopee West Jr.
High School, and Shakopee East Jr. High School.
Official Proceedings of the May 1, 2012
Shakopee City Council Page 6
Punt No report
Tabke Toured Certainteed with Linnihan and McNeill. Attended the first Diversity
Task Force meeting. Attended the Boards and Commission orientation.
13. OTHER BUSINESS
None
14. ADJOURN
Lehman/Whiting moved to adjourn to Tuesday, May 15, 2012, at 7:00 p.m. Motion
carried 5 -0.
Meeting ended at 8:21 .m.
Julie Linnihan
Finance Director /City Clerk
Kim Weckman
Recording Secretary