HomeMy WebLinkAbout08/17/2010 TENTATIVE AGENDA
CITY OF SHAKOPEE
ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA AUGUST 17, 2010
LOCATION: Council Chambers, City Hall, 129 Holmes Street South
Shakopee !Mission Statement
The Iiission of the City of Shakopee is to provide the opportunity to live, workand pray
in a community with a proud past, promising future, and small -town atmosphere within a metropolitan setting.
Agenda items are tied to the following long -term goals that support the City's strategic vision as noted after each
agenda item:
A. Keep Shakopee a safe and healthy community where residents can pursue active and quality lifestyles.
B. Positively manage the challenges and opportunities presented by growth, development and change.
C. Maintain the City's strong fmancial health.
D. Maintain, improve and create strong partnerships with other public and private sector entities.
E. Deliver effective and efficient public services by a staff of well - trained, caring, and professional employees.
F. Housekeeping item
Mayor John Schmitt presiding
1] Roll Call at 7:00 p.m.
2] Pledge of Allegiance
3] Approval of Agenda
4] Mayors Report
5] Consent Business — (All items listed in this section are anticipated to be routine. After a discussion
by the Mayor, there will be an opportunity for members of the City Council to remove items from the
consent agenda for individual discussion. Those items removed will be considered following the
public hearing portion of the agenda. Those items remaining on the consent agenda will otherwise
not be individually discussed and will be enacted in one motion.)
A] Public Works and Engineering
1. Ordering Engineering Report for the 2011 Street Reconstruction Project, Res. 7029 (E)
2. Approve Quote for Shakopee Valley Marketplace Drainage Repair, Project No. 2009 -6 (E)
B] Parks, Recreation, and Natural Resources
C] Police and Fire
D] Community Development
TENTATIVE AGENDA
August 17, 2010
Page2
5] Consent Business continued:
E] Personnel
1. Accept Resignation of Police Officer Karen Johnson (F)
F] General Administration
1. Approve Bills in the Amount of $1,826,811.90 (C)
2. Approve Minutes of July 20 and August 2, 2010 (F)
3. Temporary Liquor License - Shakopee Area Catholic School (F)
4. Policy for Private Activity Revenue Bond Financing — Res. 7031 (B,C,D)
5. Amending Fees for Private Activity Revenue Bond Financing — Ord. 836 (B,C,D)
6. Purchase of Replacement Computers (F)
6] RECOGNITION BY CITY COUNCIL OF INTERESTED CITIZENS — (Limited to five
minutes per person/subject. Longer presentations must be scheduled through the City
Clerk. As this meeting is cablecast, speakers must approach the microphone at the
podium for the benefit of viewers and other attendees.)
7] Preliminary Approval for Issuance of a Conduit Revenue Note for the Benefit of St. Gertrude's
Health Center — Res. No. 7033 (D)
8] Business removed from the consent agenda will be discussed at this time
9] Liaison Reports from Council Members
10] Recess for Economic Development Authority Meeting
11 ] Re- convene
12] Recommendations from Boards and Commissions:
A] Comprehensive Plan Amendment and Rezoning from Highway Business (B -1) to Light
Industrial (I -1) Zone Requested by Liberty Properties LLC — Resolution No. 7030 and
Ordinance No. 835 (B)
13] General Business:
A] Parks, Recreation and Natural Resources
1. Consideration of a Resolution Determining the Necessity for the Issuance of General
Obligation Bonds and Calling a Special Election for Community Center Improvements,
Resolution No. 7034
B] Public Works and Engineering
1. Assessment Policy Revision — Res. No. 7025 (B)
TENTATIVE AGENDA
August 17, 2010
Page 3
13] General Business continued:
C] Police and Fire
1. Proposed Rental Housing Ordinance (A &D)
D] Community Development
E] Personnel
F] General Administration
14] Council Concerns
15] Other Business
16] Adjourn to Tuesday, August 24, 2010 at 7:00 p.m.
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA AUGUST 17, 2010
Mayor Schmitt called the meeting to order at 7:00 p.m. with Council members Steve Clay, Matt
Lehman, and Pat Heitzman present and Cncl. Pamela Punt arrived at 7:02 p.m. Also present
were Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; Jim
Thomson, City Attorney; Judith S. Cox, City Clerk; Bruce Loney, City Engineer/Public Works
Director; R. Michael Leek, Community Development Director; Gregg Voxland, Finance
Director; Jamie Polley, Parks, Recreation, and Natural Resources Director; and Jeff Tate, Police
Chief/Emergency Management Director.
The Pledge of Allegiance was recited.
Mayor Schmitt asked if there were any additions or deletions to the agenda. Mr. McNeill said
there were no changes to the agenda.
Clay /Lehman moved to approve the agenda. Motion carried 4 -0.
In the Mayor's Report Mayor Schmitt said he attended Derby Days.
Cncl. Punt arrived at the meeting.
Mayor Schmitt asked if there were any additions or deletions to the Consent Agenda.
Mr. McNeill had no additions or deletions. Cncl. Lehman asked to remove 5.F.4, Policy for
Private Activity Revenue Bond Financing — Resolution 7031 and 5.F.5., Amending Fees for
Private Activity Revenue Bond Financing.
Lehman/Heitzman moved to approve the Consent Agenda as amended. Mr. McNeill read the
consent agenda. Motion carried 5 -0.
Lehman/Heitzman offered Resolution No. 7029, A Resolution Ordering a Preliminary
Engineering Report for the 2011 Street Reconstruction Project, and moved its adoption;
authorized the appropriate City officials to execute an agreement with ITCO Allied Engineering
Company to perform soil borings; and authorized the appropriate City officials to execute an
agreement with WSB & Associates, Inc. to perform engineering services. (Motion carried under
the Consent Agenda)
Lehman/Heitzman moved to accept the quote from Minnesota Dirtworks, Inc. in the amount of
$44,483.75 for the Shakopee Valley Marketplace Drainage Repair, Project No. 2009 -6. (Motion
carried under the Consent Agenda)
Lehman/Heitzman moved to accept, with regret, the resignation of Karen Johnson from her
position as a Police Officer with the Shakopee Police Department effective August 17, 2010.
(Motion carried under the Consent Agenda)
Official Proceedings of the August 17, 2010
Shakopee City Council Page -2-
Lehman/Heitzman moved to approve the bills in the amount of $1,417,007.58 and electronic
transfers in the amount of $409,804.32 for a total of $1,826,811.90. (Motion carried under the
Consent Agenda)
Lehman/Heitzman moved to approve the minutes of July 20, 2010 and August 2, 2010. (Motion
carried under the Consent Agenda)
Lehman/Heitzman moved to approve the application and grant a temporary on -sale liquor license
to Shakopee Area Catholic School, 2700 17 Avenue East for October 1, 2010. (Motion carried
under the Consent Agenda)
Lehman/Heitzman moved to authorize appropriate City staff to purchase 35 desktop computers
from TigerDirect and two laptop computers from Dell for an amount not to exceed $30,000.
(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.
Mark McNeill, City Administrator, presented Council with the Preliminary Approval for
Issuance of a Conduit Revenue Note for the Benefit of St. Gertrude's Health Center.
Mr. McNeill said that Kevin Rymanowski of Benedictine Health Systems would be presenting
what the bonds would be used to finance.
Kevin Rymanowski of Benedictine Health Systems stated that St. Gertrude's Health Center has
requested that the City issue a tax - exempt conduit revenue note in the maximum amount of
$6,500,000 on its behalf in order to provide financing for the cost of the acquisition,
construction, and equipping of an approximately 40,500 square foot three -level building
expansion with 30 new licensed skilled nursing facility beds, expanded therapy space, a large
education area, a staff lounge, laundry, housekeeping, and central supply areas and storage space,
and private patient rooms at the Borrower's Health and Rehabilitation Center.
Julie Eddington, bond counsel, Kennedy and Graven, explained that the City will charge an
administrative fee for the bonds to help with their staff costs but the bonds themselves will be
sold to the public and whatever interest rate it is sold to the public at is what St. Gertrude's will
pay so there won't be any additional interest for the City to pay.
Lehman/Clay offered Resolution No. 7033, Resolution Giving Preliminary Approval to the
Proposed Issuance of a Revenue Note Under Minnesota Statutes, Section 469.152 through
469.1651, as amended; Authorizing the Publication of a Notice of Public Hearing; and
Establishing the Date for a Public Hearing Regarding the Issuance of a Revenue Note, and
moved its adoption. Motion carried 5 -0.
Mayor Schmitt asked to dicuss business removed from the Consent Agenda.
Cncl. Lehman asked to remove 5.F.4., Private Activity Revenue Bond Financing — Resolution
No. 7031 because he's wondering what prompted the changes.
Official Proceedings of the August 17, 2010
Shakopee City Council Page -3-
Gregg Voxland, Finance Director, said that the City has not had a formal written policy
concerning issuance of tax exempt revenue bonds for private activities, i.e. conduit bonds. As a
result of the IRS examining tax exempt financing more, we adopted a policy resolution last
November on tax exempt finance the City issues and at the same time our bond Council prepared
one for private activity bonds which wasn't brought forward yet. The application of St.
Gertrude's brought this to the forefront again.
Punt/Heitzman offered Resolution No. 7031, A Resolution Adopting a Private Activity Revenue
Bond Policy, and moved its adoption. Motion carried 4 -1 with Cncl. Lehman opposed.
Cncl. Lehman asked for the removal from the Consent Agenda of 5.F.5, Private Activity
Revenue Bond Financing Fees because the fees have all been reduced and wants to know if they
are consistent with the Springsted Study of services supplied.
Mr. Voxland said the fees for the Private Activity Revenue Bond Financing was not a part of the
Springsted study. He did say that the fees have been increased and brought into compliance with
the policy just adopted.
Lehman/Clay offered Ordinance No. 836, Fourth Series, an Ordinance of the City of Shakopee,
Minnesota Amending the City's Adopted 2010 Fee Schedule for
Commercial /Industrial/Mortgage Revenue Bonds, and moved its adoption. Motion carried 5 -0.
Mayor Schmitt asked for Council liaison reports. Cncl. Heitzman and Cncl. Punt had nothing to
report. Cncl. Lehman said that Derby Days was a success. He also had a question regarding the
concrete replacement needed on the road construction project in his neighborhood due to the
significant rainfall. He is wondering if the contractor is paying for the replacement. Mr. Loney
stated that it's the responsibility of the contractor to replace the concrete at their cost. Cncl. Clay
attended the Shakopee Public Utility Commission meeting. Due to all the rain this summer,
SPUC has experienced a revenue loss from water. He said that there have been 28 applications
received for the Water Superintendant's position that is open.
Clay/Punt moved to recess for an Economic Development Authority meeting at 7:29 p.m.
Motion carried 5 -0.
Mayor Schmitt re- convened the meeting at 7:33 p.m.
Michael Leek, Community Development Director, presented Council with the Rezone Property
from Highway Business (B -1) to Light Industry (I -1) Zone, and Comprehensive Plan
Amendment to Guide the Property for Industry Use.
Mr. Leek said that Liberty Properties, LLC made application for Comprehensive Plan
Amendment to guide property that they were interested in buying for industrial use, and to
rezone the property from Highway Business (B -1) Zone to Light Industry (I -1) Zone. The
property is located at 7800 Highway 101 East and is approximately 5.6 acres in size, consisting
of two parcels with several buildings occupying a majority of the site. A third parcel was
subsequently added.
Official Proceedings of the August 17, 2010
Shakopee City Council Page -4-
Mr. Leek said the Planning Commission reviewed this request and recommended approval of the
rezoning and Comprehensive Plan Amendment to the City Council for the three parcels. He
noted that the rezoning cannot become effective until the Metropolitan Council approves the
Comprehensive Plan Amendment.
Lehman/Heitzman offered Resolution No. 7030, Approving a Request to Amend the
Comprehensive Plan to Guide Properties for Industrial Use, and moved its adoption; and offered
Ordinance No. 835, Approval of a Request to Rezone Property from Highway Business (B -1)
Zone to Light (I -1) Industry Zone, and moved its adoption. Motion carried 5 -0.
Mr. McNeill presented Council with the Consideration of a Resolution Determining the
Necessity for the Issuance of General Obligation Bonds and Calling a Special Election for
Community Center Improvements — Resolution No. 7034.
Mr. McNeill said that over several meetings the Council has heard the proposal to construction
improvements to the Community Center at a cost of $7,855,000.
Mr. McNeill reviewed the rental rates for 35 years and 50 years. Because the difference is
minimal, the consensus of the Council is to stay with the 35 year rental rates (depreciation).
Clay /Heitzman offered Resolution No. 7034, A Resolution Determining the Necessity for the
Issuance of General Obligation Bonds and Calling a Special Election Thereon, and moved its
adoption. Discussion followed.
Cncl. Lehman doesn't feel the Community Center improvements are a necessity and its not good
timing from an economical standpoint. He would prefer staffing the police department to 1.5
officers to 1,000 population.
Cncl. Punt agreed with Cncl. Lehman that the timing to ask our citizens is not setting up the
Shakopee Recreation: Bringing People Together group for success which is her primary concern.
Cncl. Heitzman said if the project is put off the costs would increase and there would be a loss of
interest from the citizen's of Shakopee.
Cncl. Clay said now is the time to move forward with the project because the construction costs
are low as well as the bond rates. He doesn't have a problem with the voters deciding and there
is not a large cost to put the question on the ballot this fall.
Mayor Schmitt also agrees with Cncl. Clay and Heitzman that the construction costs are low as
well as the bond rates. He also feels that the project is a positive contribution to the community.
He supports the project as presented
Mayor Schmitt asked for a vote on the motion.
Motion carried 3 - 2 with Cncl. Lehman and Cncl. Punt opposed.
Lehman/Heitzman moved to take a 10 minute recess. Motion carried 5 -0.
Official Proceedings of the August 17, 2010
Shakopee City Council Page -5-
Mayor Schmitt re- convened meeting at 8:40 p.m.
Jeff Weyandt, Assistant City Engineer, presented Council with the Assessment Policy Revisions.
Mr. Weyandt said the policy revision is to eliminate assessments on overlay projects. Each year
staff has informational meetings with residents and there always seems to be concern if an
overlay project is a maintenance activity and should it be included in their taxes.
Mr. Weyandt said that the current policy is to assess 30% of an overlay project. Mr. Weyant said
the benefits for not assessing projects are a cost savings and it would give the flexibility to be
able to add streets to the project after receiving bids.
Mr. Weyandt discussed the ways to fund overlay projects, which is to take the money out of the
State Aid Street Fund. He also said, that if the policy is adopted, staff would like to eliminate
the assessments planned for this year's project.
Mayor Schmitt would prefer to fund overlay projects out of the department budget as opposed to
using state aid funds.
Lehman/Punt offered Resolution No. 7025, A Resolution Amending the Special Assessment
Policy (with regards to street overlay projects), and moved its adoption. Motion carried 4 -1 with
Mayor Schmitt opposed.
•
Punt/Heitzman moved to direct staff not to assess the 2010 Bituminous Overlay Project No.
2010 -2. Motion carried 5 -0.
Jeff Tate, Police Chief/Emergency Management Director, presented Council with the Proposed
Rental Housing Ordinance.
Chief Tate said that in the past there have been discussions regarding rental housing ordinances
with no clear direction. He said the issue has been brought forward again and asked if Council
would like staff to further explore. If Council directs staff to move forward, he would like
Council to give direction on what parameters to follow for a proposed ordinance.
Chief Tate said that staff has reviewed ordinances in other cities. He discussed the benefits of a
rental ordinance. He said that it provides guidance for maintenance issues, provides a data base
of owner information and contact information of rental units, and provides for the community as
a whole that rentals are safe, secure, sanitary, and free from criminal activities.
Chief Tate said that from a police department perspective, if the Council believes it would be
desirable to implement a rental housing registration/licensing program, it would be desirable and
suggested that the crime free multi- housing program be incorporated into the program.
Mr. Leek, Community Development Director, said that he has looked at ordinances and
programs throughout the metro area. He said that there are more communities that have adopted
programs. He said a registration program provides the opportunity for the crime free multi -
housing program to be involved and provides a database of owner and contact information.
Official Proceedings of the August 17, 2010
Shakopee City Council Page -6-
Jim Thomson, City Attorney, said that staff is looking for direction, is this something the City
wants to do and at what level because codes can range from simple registrations of rental
property to getting rental units to participate in the crime free multi- housing program or is the
Council interested in maintenance issues of rental properties and tenant quality.
Clay/Punt moved to direct staff to come back to Council with an example of what a rental
housing ordinance would look like if it included all rental dwellings, that included all of the
issues Mr. Thomson discussed along with a fee schedule for rentals and additional staffing costs
to implement this ordinance. Discussion followed.
Cncl. Lehman said if an ordinance is passed he would like to start with the larger units (10 +) and
have them participate in the crime free multi- housing program.
Joseph Ditto, 9010 Whispering Oaks Trail, addressed the Council. Mr. Ditto said he's a licensed
real estate investor, licensed real estate agent and general contractor. He said he buys houses and
rents them out. His concerns are that there are too many home rentals and townhouse rentals
with the owners inexperienced in renting property. He also said he likes to rent houses in
Shakopee because there aren't regulations on landlords. He said he would look for other
communities to rent out properties if there were regulations in Shakopee.
Mayor Schmitt asked for a vote on the motion. Motion carried 4 -1 with Cncl. Lehman opposed.
Mayor Schmitt asked if the were any Council concerns. Cncl. Clay said he received a call from a
citizen regarding the bathrooms at Huber Park being locked much of the time. Mr. McNeill said
he would check into that.
Clay /Lehman moved to adjourn to Tuesday, August 24, 2010 at 7:00 p.m. Motion carried 5 -0.
Meeting adjourned at 9:24 p.m.
e ff_
dish S. Cox
City Clerk
Kim Weckman
Recording Secretary