HomeMy WebLinkAbout4.F.2. Approval of Minutes: May 15, 2012 OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL
ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA MAY 15, 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: No one
Staff Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City
Administratar; R Michael Leek, Community Development Director;
Bruce Loney, Public Works Director/Engineer; Jamie Polley, Parks,
Recreation&Natural Resource Director; Jeff Tate, Police Chief; Sarah
Sonsalla, City Attorney and Julie Linnihan, Finance Director/City Clerk
3. APPROVAL OF THE AGENDA
Mr. McNeill asked to delete item 4.E.2, Authorization to Hire Administration Department
Secretary.
Motion: Clay/Lehman moved to approve the agenda as modified. Motion carried 5-0.
4. CONSENT BUSINESS
Lehman/Clay moved to approve the Consent Agenda as modified. Motion
A. Parks, Recreation&Natural Resources
None
B. Police and Fire
1. Moved to approve the variance to the existing fee schedule for Valleyfair
reducing the 2012 fee for fireworks displays at Valleyfair from $2,270.00 to
$920.00.
C. Community Development
None
D. Public Works and Engineering
1. 1.) Offered Resolution No. 7196, A Resolution Accepting Bids on the 2012
Bituminous Overlay, Project No. 2012-1 and move its adoption. 2.) Approve a
5%contingency amount on this project for use by the City Engineer in
authorizing change orders or quantity adjustments on this project.
2. 1.) Offered Resolution No. 7197 A Resolution Accepting Bids on the 2012
Vierling Drive Bituminous Overlay, Project No. 2012-2 and move its adoption.
2.)Approve a 5%contingency amount on this project for use by the City
Engineer in Authorizing Change orders or quantity adjustments on this project.
3. 1.) Offered Resolution No. 7198, A Resolution Accepting Bids on the Main
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Shakopee City Council Page 2
Street Utility Improvements, Project No. 2012-5 and move its adoption. 2.)
Approve a 5% contingency amount on the project for use by the City Engineer in
authorizing change orders or quantity adjustments on this project.
4. Moved to authorize staff to utilize the re-purchase agreements with Ag Power
Enterprises, Inc. on until #167 a 2011 John Deere 1445 Mower and unit#131 a
2012 5085 Tractor for the combined price of$13,209.75, with the funds to be
expended from the Internal Service Equipment Fund.
5. 1.) Moved to authorize staff to purchase two light trucks from Midway Ford for
the price of$43,918.96 with the funds to be expended from the Internal Service
Equipment Fund. 2.) Moved to declare Unit#302 a 2002 GMC 4x4 extended
cab, for sale at auction, and Unit#156, for disposal, as surplus equipment.
6. Moved to authorize staff to repurchase a one new 2012 Dodge Grand Caravan
from Burnsville Dodge for the price of$22,289.85. The funds to be expended
from the Internal Service Equipment Fund.
7. Offered Resolution No. 7200, A Resolution Accepting Work on the Bluff
Avenue Storm Sewer, Project No. 2011-4 and move its adoption.
E. Personnel
1. Moved to authorize the hiring of Kimberly Weckman for the position of
Secretary with the Finance Department, at Step D of Grade 4 of the City's 2012
Non-Union Pay Plan, with the opportunity to move to Step C after six months of
successful job performance; subject to the successful completion of a background
check and pre-employment physical and drug-test.
2. Deleted from Consent Agenda.
3. Moved to authorize the hiring of Karen Frairy for the position of Human
Resource Technician, at Step D of Grade 6 of the 2012 Non-Union Pay Plan
($27.07 per hr.), and that a starting balance of 40 hours of vacation and 40 hours
of sick leave be awarded.
4. Moved to authorize the hiring of Claudia Cassman as a Police Records
Technician, at Step E of Grade 3 of the 2012 Non-union Pay Plan, contingent
upon successful completion of the require pre-employment screenings.
5. Moved to accept, with regret,the resignation of Frank Coburn, from his position
as a Police Office with the Shakopee Police Department, effective May 1, 2012.
6. Offered Resolution No. 7193, a resolution of appreciation for Sergeant Robert
"Bob" Forberg, and move its adoption.
F. General Administration
1. Moved to approve the bills in the amount of$602,523.72 and electronic transfers
in the amount of$483,656.50 for a total of$1,086,180.22.
2. Moved to approve the minutes from April 17, 2012 and Apri124, 2012.
3. Moved to approve the applications and grant a temporary on-sale 3.2 percent
malt liquor license to the Shakopee Lions Club, for the designated, fenced beer
garden adjacent to the concession stand at Tahpah Park, on June 1 from 5:00 to
10:00 p.m., on June 2 from 8:00 a.m. to 10:00 p.m. and on June 3 from 10:00
a.m. to 8:00 p.m., and also grant a license for the designated, fenced beer garden
between field No. 6 and 7 at Tahpah Park, on June 2 from 11:00 a.m. to 7:00
p.m., conditioned upon the Lions Club staffing two police officers on June 2 from
noon unti16:00 p.m.
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Shakopee City Council Page 3
4. Approved the applications and grant a wine license and an on-sale 3.2 percent
malt liquor license to Tokyo Sushi & Grill Japanese LLC, 8080 Old Carriage
Court North, and effective July 1, 2012.
5. Moved to authorize staff to spend up to $20,000 for phase 2 of needed
furnishings and window treatments for City Hall.
6. Offered Resolution No. 7195, A Resolution Appointing Jennifer Mackenthun to
Fill An Unexpired Term on the Police Civil Service Commission.
5. RECOGNITION OF 1NVOLVED CITIZENS BY CITY COUNCIL
1. Rob Kraemer, 1006 Van Buren St., Trent Stern, 1077 Van Buren St. and Bill
Anderson, 1066 Van Buren St. They all addressed Council to discuss their
concerns of the poor road condition of Van Buren Street between l Oth and 1 ltn
Avenue. Several residences are experiencing sewer issues because of tree roots in
addition to the road eroding away.
Bruce Loney, Public Works Director/Engineer stated that the road and sewer
system needs repair. Loney said that his department is preparing their Capital
Improvement Plan in which Van Buren Street is on the list of repairs. Loney also
said that he will work with the homeowners experiencing sewer problems to
temporarily repair sewer issues until the street reconstruction is done in the next
year.
2. Todd Hallet, 7104 Sussex Ln. Mr. Hallet said he is the president of the Shakopee
Youth Hockey Association and is presenting a proposal to lease the Enigma Teen
Center for $10,000 annually. He said that Enigma Center offers a great dry land
practice area for the youth hockey participants. Mr. Hallet said that the current use
of space does not generate revenue for the City but the Hockey Association's
donation of$10,000 to use the space for a dry land practice area would generate
revenue for the City.
McNeill said he will forward the information to staff and it will probably go to the
Park and Recreation Advisory Board for further study.
6. PUBLIC HEARINGS
A. Revision to City of Shakopee Subsidy Policy.
Motion: Whiting/Lehman moved to open the public hearing. Motion carried 5-0.
Leek said that at the time the Business Subsidy Policy was put in place,the
federal minimum wage was $5.15 per hour, so 275% of the minimum wage was
$14.16 per hour. In 2007 Congress passed a bill that resulted in the minimum
wage increasing over time. It is currently $7.25 per hour. Applying the 275%
standard jobs created are to pay about $19.94 per hour. For some business
segments that is no longer realistic. This is the case for the SanMar project,
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Shakopee City Council Page 4
where the typical wages for warehouse positions are apparently between$12.00
and $14.00 per hour.
Leek said that in light of the recent SanMar proposal and after further
discussions with City Council the draft has been revised to have a wage floor
(exclusive to benefits) of 175% of the federal minimum wage ($12.69 per hour).
Cncl's. Whiting and Lehman expressed concerns about the 175% of the federal
minimum wage and would like it changed to 200% of the Federal minimum
wage (14.50 per hour).
Cncl. Punt said that she would like to keep it at 175%because it allows a private
employer to make a decision of how they are going to pay their employees
without the Council creating a threshold that's so high that they can't operate
their business.
Tabke asked if there was anyone in the audience that wanted to speak at the
public hearing. No one responded.
Motion: Whiting/Lehman moved to close the public hearing. Motion carried 5-0.
Motion: Lehman/Whiting offered Resolution No. 7187, A Resolution of the City
Council approving the revised Business Subsidy Policy and change the wage
floor from 175%to 200% of the federal minimum wage. Motion carried 5-0.
B. Consideration of Proposed Tax Increment Financing (TIF) Plan for TIF District
No. 15 (Trident L.L.C. senior housing project) and Contract for Private
Development(CPD)between the City of Shakopee and Trident Development,
L.L.C.
Motion: Whiting/Clay moved to open the public hearing. Motion carried 5-0.
Leek asked the Council to continue the public hearing to June Sth so that staff,
the City's attorney and the applicants can work through the terms of the CPD
and that the CPD and TIF plan can be presented together to the City Council
and EDA.
Tabke asked if anyone in the audience wished to speak at the public hearing.
Roger Fink, Trident Development, L.L.C.,thanked the Council for continuation
of the public hearing to finalize the CPD and TIF plan.
Motion: Lehman/Whiting moved to continue the public hearing to June 5, 2012. Motion
carried 5-0.
7. 2011 ANNUAL FINANCIAL REPORT AND AUDIT PRESENTATION BY KERN�
DEWENTER VIERE, LTD (KDV)
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Shakopee City Council Page 5
Linnihan stated that the audit process has been completed. This provides information for
the Comprehensive Annual Financial Report (CAFR). The audit also provides the City
with two other
reports, Report on Compliance with Government Auditing Standards and Minnesota Legal
Compliance, as well as the Management Letter.
Kara Gaffy, Audit Manager with KVD, provided an overview of the 2011 audit, the
process, the financial status of the City. She also covered specific financial activities and
focus points that were covered during the audit.
Gaffy said that based on Government Auditing Standards and Generally Accepted
auditing standards, audit findings are a lack of segregation of accounting duties, to
improve ice arena receipting internal controls and to improve community center receipting
internal controls.
Motion: Lehman/Clay moved to accept the 2011 audit and accompanying reports.
Motion carried 5-0.
8. BOND SALE RESULTS —REFLJNDING OF 2004A AND 2004D—RES. NO. 7199
Linnihan said that City Staff and the City's Financial Advisor, Springsted, have discussed
and determined that the City would benefit from the refunding of the two bond issues that
carry a longer term, with maturity into 2025. The City has recently completed the bond
rating review process, as conducted by Moody's. Springsted received the bids for the sale
on May 15, 2012. Paul Steinman from Springsted presented Council with the most recent
sale information and the results of the sale.
Steinman said the winning bid was awarded to Raymond James/Morgan Keegan at a True
Interest Rate of 1.7553%. The result of the 1.75% interest rate is a future value savings to
the City of$442,000 through 2025. As part of the process a conference call with
Moody's, the City received an updated rating, and re-affirmed Shakopee's rating at Aa2.
Motion: Lehman/Whiting offered Resolution No. 7199, A Resolution Awarding the Sale
General Obligation Improvement Refunding Bonds, Series 2012A, in the
Original Aggregate Principal Amount of$4,960,000; Fixing their Form and
Specifications; Directing their execution and Delivery; Providing for their
Payment; Providing for the Escrowing and Investment of the Proceeds thereof;
and Providing for the Redemption of Bonds Refunded Thereby. Motion carried
5-0.
9. BUSINESS REMOVED FROM CONSENT AGENDA
None.
10. GENERAL BUSINESS
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Shakopee City Council Page 6
A. Park, Recreation and Natural Resources
None
B. Police and Fire
None
C. Community Development
None
D. Public Works and Engineering
1. Approval for Mn/DOT Cooperative Agreement Application for Vierling
Drive from CR 69 to Taylor Street.
Loney said that a portion of Vierling Drive on the west side of Shakopee
from CR 69 to Taylor Street has been completed as it is located in
Mn/DOT excess right-of-way. It has been determined that the future Trunk
Highway 41 interchange will be further to the west,thus this right-of-way
will no longer be needed for future Trunk Highway 41 interchange.
Scott County has been successful in obtaining an Interchange Grant for the
County Road 69 and 169 intersections and will be proceeding with
construction in 2013 and 2014. Scott County is supportive in the City
applying for a Cooperative Agreement submittal for funding to complete
the Vierling Drive connection which has to be submitted by July 31, 2012
for consideration of fiscal year 2014.
In order to submit an application in a timely fashion, staff will need
assistance from a City consultant. A proposal was obtained from WSB to
complete the work at a cost not to exceed $4,540.00. WSB is also
available to assist the City with acquisition of right-of-way from Mn/DOT
on parce143 if necessary.
Motion: Lehman/Clay 1.)moved to approve staff to submit for a Mn/DOT
Municipal Agreement Program for the Vierling Drive extension from CR
69 to Taylor Street. 2.) Approve the proposal of WSB & Associates to
prepare a Municipal Agreement Program submittal not to exceed
$4,540.00. Motion carried 5-0.
2. Approval of Letter Requesting Mn/DOT to sell surplus property to the City
of Shakopee.
Loney said with the recent approval of the Trunk Highway 169 and CR 69
Interchange moving into final design, there exists in the northeast quadrant,
surplus right-of-way that Mn/DOT will no longer need and will be able to
dispose of. Staff would like to seek approve in purchasing the land and if
so the next step would be to send a letter to Mn/DOT requesting the sale of
the land.
The City has actually paid $115,000 to Mn/DOT for land associated with
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Shakopee City Council Page 7
this parcel. Parcel 43 is approximately 23.3 acres and the initial purchase
price that Mn/DOB paid for this land was $784,995.70. Price for this land
is calculated at $33,690.80 per acre.
Loney said the acquisition funds for this land could come from the Sanitary
Sewer and Storm Drainage funds. Since both of those facilities are needed
to construct Vierling Drive and for the development of the property. These
funds would be reimbursed upon a resale of the property after Vierling
Drive would be constructed.
Clay suggested that the City hire Dick Marks to appraise the value of the
property.
Motion: Lehman/Clay moved to direct staff to get an estimate from Mr. Marks for
his services for an appraisal on Parcel 43 and bring it back to Council.
Motion carried 5-0.
E. Personnel
None
F. General Administration
None
11. COUNCIL MEMBER REPORTS
Punt No report.
Lehman Attended the 169 Corridor Coalition and went over information for an
upcoming Mn/DOT strategy meeting for the 169 Corridor.
Clay No report.
Whiting Attended the SanMar groundbreaking. Attended the school board meeting.
They approved the diplomas for the Class of 2012. The board also approved
the hiring of Scott Hare as Director of Special Services.
Tabke Attended the SanMar groundbreaking. Attended the Welcome Home
Ceremony at the American Legion. Attended the Regional Council of Mayors
and discussed higher education. He also attended the Liberty Day celebration
at SACS school.
12. OTHER BUSINESS
Lehman asked about the closing of CR 69. Loney said it is too difficult to get the utilities
in with keeping traffic open. The closure will last approximately six weeks and will
provide a detour that will allow access to local business in the area.
13. BREAK
Lehman/Clay moved to break for 10 minutes. Motion carried 5-0.
14. DISCUSSION OF FINANCE AND BUDGET ISSUES
Official Proceedings of the May 15, 2012
Shakopee City Council Page 8
Tabke reconvened the meeting.
McNeill said that at the May lst meeting, that City Council and staff would discuss
finance and budget issues relating to tax levies.
McNeill discussed where the City has been, some of the history and some of the
challenges the City will be facing in the future. He discussed wage increases, health
insurance costs, fuel prices and inflation increases on goods and services. At the goal
setting workshop priorities were focused on budget and fiscal policies, infrastructure,
economic development, staffing needs and the future of the community center.
Wilson discussed staffing needs of the City. The largest is full-time fire fighters available
for daytime response, police officers, EDA Coordinator, Pubic Relation Specialist,
Recreation Facility Manager, I.T. Consultant,Natural Resource Coordinator,
Administrative support for Public Works, and a Park Maintenance Operator.
Wilson talked about technology investments like a new website,paperless council
packets, online forms, Wi-Fi access in city buildings and major parks.
McNeill talked about community amenities that could have cost impacts on the city's
budget. The downtown fire station, 2"a sheet of ice, 2"d floor fitness center and a
dedicated senior center.
Linnihan discussed levy history which has been flat since 2009. She also noted an 8%
decrease in market value anticipated for 2013 budget planning.
McNeill said he would like some direction from Council in terms of a possible levy
increase, what staff should look at for the upcoming budget year, how should staff spend
their time putting items together for upcoming budget discussions that include what
Council's wants and needs are as well as a vision of what the pay plan would be for 2013.
Wilson discussed past Council decisions not to cut staffing if it's an occupied position
even if it mean achieving a savings. She asked if it was still the wishes of the Council to
proceed this way.
Whiting, Lehman, Punt and Tabke agree that they would be willing to look at savings
through privatizing services the City participates in if it means a cost savings to tax payers
and focus more on its core priorities. Whiting, Clay and Tabke would favor a tax levy
increase to accommodate the upcoming street overlay projects in the next few years.
Tabke asked Council their thoughts of a tax levy increase. Punt said she wants to keep the
levy flat because of the decrease in the taxable market value. Lehman also agrees with
Punt to keep the levy flat. Whiting, Clay and Tabke would favor a tax levy increase to
accommodate the upcoming street overlay projects in the next few years.
Wilson asked Council to give staff some ideas as to what they believe are the needs of the
City. Linnihan asked Council list their top three priorities from the list provided for staff
to work on for the budget. Clay feels that staff would have a better handle on what the
needs are for the City. Tabke said he would like to see an Economic Development
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Shakopee City Council Page 9
Coordinator, improving the City's ability to communicate with the residents of the City.
Punt supports the infrastructure issues as a priority without raising the levy. Lehman
would be willing to raise the levy for public safety.
15. ADJOURN
Mot�on: CIaX/Punt mov d to adjourn. Motion carried 5-0. Meeting ended at 10:10 p.m.
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J � 'e Linnihan
Finance Director/City Clerk
Kim Weckman
Recording Secretary