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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