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HomeMy WebLinkAbout5.F.2. Approval of Minutes: July 12 and 19, 2011OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA JULY 12, 2011 Mayor Schmitt called the meeting to order at 7:00 p.m. with Council members, Pat Heitzman, Steve Clay, Matt Lehman and Pamela Punt present. Also present Mark McNeill, City Administrator; R. Michael Leek, Community Development Director; Bruce Looney, Public Works Director /City Engineer; Julie Linnihan, Finance Director; Jeff Tate, Police Chief, Rick Coleman, Fire Chief; and Brad Ehlers, Community Center; Judith Cox, City Clerk. Mayor Schmitt asked if there were any additions or deletions to the agenda. Mark McNeill said staff had no changes to the agenda. Punt /Clay moved to approve the agenda. Motion carried 5 -0. Mark McNeill, City Administrator, presented Council with an outline of the 2012 Budget Workshop. Mr. McNeill said the purpose of the workshop is to gather information and ideas regarding the 2012 budget as well as gathering information and ideas from the newly hired Finance Director, Julie Linnihan. Julie Linnihan, Finance Director, presented the Council with the 2012 Budget Discussion. Ms. Linnihan said that because of the state government shutdown, obtaining and working with accurate numbers generated by the Department of Revenue isn't possible. This means that cities and counties will not be able to obtain or develop reasonable estimates for fiscal disparities and market value credits; and ultimately, property tax impact. Ms. Linnihan said that the City of Shakopee is very fortunate because it does not rely on LGA, market value homestead credit, or significant pension funding as part of the budget. She said that Shakopee's tax capacity decline for 2012 is -0.61% and is very manageable. Ms. Linnihan said there is a decline in the taxable market rate. However the tax levy and tax capacity are very stable and represent responsible decision making. Ms. Linnihan said that when reviewing the 2012 budget, Council and staff should consider the following factors; Shakopee has a stable fund balance, consistent funding of the internal service funds, low rate of debt, strong cash position, and no reliance on significant state aid. Michael Leek, Community Development Director, presented Council with a discussion on the Economic Development Authority (EDA) levy. Mr. Leek stated the purpose of an EDA is to use it as a mechanism to provide assistance to or economic development incentives for the growth of the business tax base within the community. Mr. Leek said that the EDA ad hoc committee thought it is very critical that the City position itself because other area communities were also being proactive in economic development. Mr. Leek said the EDAC (Economic Development Advisory Committee) has given Council a number of recommendations about potential funding mechanisms or financing tools that should be considered. Official Proceedings of the June 12, 2011 Shakopee City Council Page -2- Mr. Leek said that the key to the EDA levy is the intention of the Council as to the purpose of the EDA levy. Mr. Leek asked Council if their intentions are to follow the recommendations of the EDAC to expand the existing loan program or to provide more GAP financing for businesses, etc. Mr. Leek said these are just some of the questions Council will need to consider when establishing the 2012 budget. Ms. Linnihan said that she cannot find a policy on the use of EDA funds and that a policy needs to be determined so that staff will know how to respond to requests. Mayor Schmitt identified possibilities for financing tools for the preservation, expansion and creation of businesses: SAC (sewer availability charge) credits, tax abatement, tax increment financing and DEED (Department of Employment and Economic Development). He said that the EDA needs to quantify what is in the tool box. Ms. Linnihan said that the City has a low debt situation. She also stated that the City has been in a cash position to reduce or cancel some annual debt service levies. As she reviewed it and looked at the process that occurs, it maybe time to review and bring some of the debt service levies back into the total levy. Bruce Loney, Public Works Director /City Engineer discussed the Capital Improvement Levy. Mr. Loney said that the City probably won't be able to rely on state aid to pay for future street overlays. In 2006 a report was prepared on pavement management. Mr. Loney reminded the Council that between 1995 and 2006 45% of the city streets were constructed. The City may have to levy for future projects or put some money in the capital improvement fund. Discussion followed. Ms. Linnihan said that Council should consider the amount of money the City would want to commit to the infrastructure of the community and the priority it has in the budget; and, this might be a good time to look at this. She identified options for funding infrastructure: an improvement levy or partial assessments. Ms. Linnihan then discussed the two year budget preparation and review. Ms. Linnihan said she would like to explore going back to the one year budget planning rather than a two year budget. She feels that there is more accuracy and details in a one year budget than trying to anticipate figures for a two year budget. In support of a one year budget, Mr. Leek noted the uncertainty of future transit funding; and, Mr. McNeill noted the need for discussion on the cost of living adjustments and union contracts. Consensus of council members was to prepare a one year budget. Ms. Linnihan then presented discussion on the Internal Service Fund. She said that in meetings with the various, departments regarding equipment rental and building facility rental, discussion centered around if the formula to determine these rates should be reviewed. She feels that the Internal Service Fund needs to be discussed in great detail with each of the departments to make sure it's accurate, comprehensive and concise so that the numbers that are used provide actual funding for what is ultimately needed. She is recommending maintaining the 2012 levels at the 2011 rates to provide ample time for review. Mr. McNeill reminded Council of an additional workshop meeting previously scheduled for Wednesday, July 27, 2011. Lehman/Heitzman moved to adjourn to Tuesday, July 19, 2011 at 7:00 p.m. Motion carried 5 -0 Official Proceedings of the Shakopee City Council The Council meeting ended at 8:45 p.m. J. " JJ t S. Cox City Clerk June 12,2011 Page -3- Kim Weckman Recording Secretary OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA JULY 19, 2011 Mayor Schmitt called the meeting to order at 7:00 p.m. with Council members, Pat Heitzman, Steve Clay, Matt Lehman and Pamela Punt present. Also present Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; R. Michael Leek, Community Development Director; Bruce Looney, Public Works Director /City Engineer; Julie Linnihan, Finance Director; Jeff Tate, Police Chief; Rick Coleman, Fire Chief; Jeff Weyandt, Assistant Engineer and Mike Hullander, Public Works Superintendent. The Pledge of Allegiance was recited. Mayor Schmitt asked if there were any additions or deletions to the agenda. Mark McNeill asked to remove from the Consent agenda 5.E.4, Resolutions of Appreciation —Nos. 7111, 7112, and 7113, to the next scheduled Council meeting. He also asked to add 13.F.1, Request of Kue Contractors, Inc. for Extended Work Hours on New Fire Station Project. Cncl. Punt asked if 13.F.1 could be moved to the Consent agenda. Council was in agreement to move it to the Consent agenda. Lebman/Clay moved to approve the agenda as amended. Motion carried 5 -0. In the Mayor's report Mayor Schmitt said he attended a meeting with the Senior Citizen's group to talk about the future of where to house their group. He then attended the Rotary meeting for a State of the Mayor address. He and Cncl. Lehman also attended a press conference meeting at Canterbury Park regarding the government shutdown. He met with a potential business that is looking to move to Shakopee. He also spoke to a Boy Scout Troop to aid them in obtaining their government badge. He also reminded Council and the audience that on Thursday, July 21, 2011 there will be plan designs available for viewing regarding the 169/69 project in Shakopee. Mayor Schmitt asked if there were any additions or deletions to the Consent Agenda. Mr. McNeill reminded Council that 13.F.1, Request of Kue Contractors, Inc. for Extended Work Hours on New Fire Station Project was added to the Consent agenda. Lehman/Heitzman moved to approve the Consent Agenda as amended. Mr. McNeill read the Consent agenda. Motion carried 5 -0. Lehman/Heitzman moved to approve a suspension of City Code Sec. 10.6, Noise Elimination and Noise Prevention, Subd. 3, Hourly Restrictions on Certain Operations, D, per this memo, requested by S.M. Hentges & Sons, Inc., for the CR 17 & CR 42 Interchange Project and directed staff to publish notice of the suspension terms with the conditions as recommended by staff. (Motion carried under the Consent Agenda) (CC Document No. 498) Lehman/Heitzman moved to authorize to purchase one new Teratract AEBI TT240 from EDM, Inc. using state bid pricing for the total cost of $135,671.09. The funds to be expended from the Storm Drainage Fund. (Motion carried under the Consent Agenda) Lehman / Heitzman moved to accept, with regret, the resignation of Tom Sheveland from his position as a Community Service Officer with the Shakopee Police Department, effective July 31, 2011. (Motion carried under the Consent Agenda) Official Proceedings of the July 19, 2011 Shakopee City Council Page -2- Lehman/Heitzman moved to hire Alexander Daughin, Bradley Purrington, and Bradley Stene as part- time, paid -on -call firefighters, subject to successful completion of the required pre - employment physical and drug test. (Motion carried under the Consent Agenda) Lehman/ Heitzman moved to accept the resignation of Bob Schmit form his position as a custodian, effective July 29, 2011, and authorize payment of the voluntary retirement incentive. (Motion carried under the Consent Agenda) Lehman/Heitzman moved to approve the bills in the amount of $1,543,413.91 and electronic transfers in the amount of $421,716.41 for a total of $1 (Motion carried under the Consent Agenda) Lehman/Heitzman Moved to approve the minutes of June 21, 2011 and July 5, 2011. (Motion carried under the Consent Agenda) Lehman/Heitzman moved to accept the property/liability insurance renewals from the League of Minnesota Cities Insurance Trust for a deposit premium of $445,907. (Motion carried under the Consent Agenda) Lehman / Heitzman moved to authorize the appropriate officials to enter into a contract with Multi - Services Incorporated for custodial services at City Hall and the Library at a cost not to exceed $2,630 per month. (Motion carried under the Consent Agenda) Lehman/Heitzman moved to approve the suspension of City Code Sec. 10.60, Noise Elimination and Noise Prevention, Subd. 3, Hourly Restrictions on Certain Operations, to allow work on the new fire station to begin at 6:00 a.m. on weekdays, through August 5, 2011, and direct staff to publish the notice of the suspension terms with the conditions as recommended by staff. (Motion carried under the Consent Agenda) Mayor Schmitt asked if there was anyone in the audience who wished to speak on a topic that was not on the agenda. No one responded. Mayor Schmitt asked for the Council liaison reports. Cnlc. Lehman said he attended the Canterbury Park press meeting with Mayor Schmitt. He also reminded people that Derby Days is in two weeks and they are still looking for donations and volunteers. Cncl. Clay attended the Shakopee Public Utilities Commission (SPUC) meeting. He said that a new electricity record was set for the City as it used 96 mega -volts on Monday, July 18, 2011. He said SPUC will be adding a new transformer at Huber Park and sending out a mailing to all residence regarding rips on saving energy. Cncl. Heitzman said he attended the school board meeting where the superintendent contract for Rod Thompson was accepted. Cnel. Punt had no report. Michael Leek briefly discussed legislation regarding transit that would affect transit for Shakopee. Clay /Punt moved to recess for an Economic Development Authority Meeting. Motion carried 5 -0. Mayor Schmitt reconvened the meeting at 7:25 p.m. Bruce Loney, Public Works Director /City Engineer presented Council with the 2012 Capital Improvement Program (CIP). Mr. Loney said the majority of the CIP is funded with State Aid revenues. 35% of State Aid revenues are applied to the General Fund which are used to cover costs Official Proceedings of the July 19, 2011 Shakopee City Council Page -3- for crack seal and seal coats, carried under the General Fund Street budget. The remaining State Aid revenue is applied to the Capital Improvement Fund (CIF). Jeff Weyandt, Assistant City Engineer presented Council with the proposed 2012 Capital Improvement Plan projects for 2012. Mr. Weyandt explained the review process staff uses to create the five year CIP. He provided an overview of the sanitary sewer projects, street improvement projects, and storm sewer projects. Heather Berndt, 1715 Wood Duck Trail, addressed Council with her concerns of the cost to repair Wood Duck Trail. She said the CIP presented shows an approximate cost of $420,000 with approximately $130,000 assessed to the homeowners. She stated that there are only 10 homeowners on Wood Duck Trail and is concerned about the high estimated cost that would be burdened on the homeowners. Joe Sybrandt 1915 Wood Duck Trail, also voiced the same concerns as Ms. Berndt did. He is questioning why a 17 year old street failed and needs to be fully reconstructed. He said the homeowners on Wood Duck Trail are going to be assessed for a road that has soil issues that should have been dealt with prior to the road being constructed. James Gatto, 1615 Wood Duck Trail, also addressed Council regarding the estimated assessment. He stated that Council consider assessing homeowners on Wolf Ridge Avenue for the assessment since using Wood Duck Trail is their only access on to Marschall Road. Mr. Loney discussed the condition of the road and the need to reconstruct Wood Duck Trail. He said in the spring the City spent $51,000 in repairing the road which is not cost effective for the City. He also explained to the homeowners and Council the process for a road reconstruction process and said he would work closely with the residents on Wood Duck Trail. Mike Hullander, Public Works Superintendent, presented Council with the Capital Equipment List. Mr. Hullander explained the process of equipment requests. He then provided a grid identifying the City's equipment needs for the next 10 years. The equipment needs for 2012 total $315,000. Mr. Loney advised Council that on Thursday, July 21, 201.1, Scott County will be hosting an open house for the 169/69 interchange which will affect the west end of downtown Shakopee. He encouraged Council members to attend the open house. Mayor Schmitt asked if there were any other business or Council concerns. No one responded. Punt/Lehman moved to adjourn to Tuesday, July 26, 2011 at 7:00 p.m. Motion carried 5 -0. The Council meeting ended at 8:30 p.m. u J dith S. Cox ity Clerk Kim Weckman Recording Secretary