Loading...
HomeMy WebLinkAbout10/19/2010 TENTATIVE AGENDA CITY OF SHAKOPEE ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA OCTOBER 19, 2010 LOCATION: Council Chambers, City Hall, 129 Holmes Street South Shakopee 9/fission Statement 'The 9/fission of the City of Shakopee is to provide the opportunity to live, workand play 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 financial 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. Revised Cooperative Agreement with Scott County for a Trail along the West Side of CSAH 18 (E) 2. Approve Quote for Upper Valley Drainageway Stabilization at Sarazin Street (E) 3. County Road 101 Reconstruction Layout Approval — Res. No. 7055 (D) B] Parks, Recreation, and Natural Resources TENTATIVE AGENDA October 19, 2010 Page 2 5] Consent Business continued: C] ' Police and Fire D] Community Development E] Personnel 1. Resignation of Community Service Officer Travis Brown F) 2. Hiring of Community Service Officer — Thomas Sheveland (E) F] General Administration 1. Approve Bills in the Amount of $1,892,274.60 (C) 2. Approve Minutes of September 21 and October 5, 2010 (F) 3. Fund Balance Policy — Resolution No. 7051 (C) 4. Transferring Board of Equalization Duties to Scott County — Res. No. 7052 (F) 5. Fixed Asset Capitalization Level (F) 6. Changing December 21, 2010 Meeting Date (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] 7:00 P.M. Public Hearings: A] Proposed assessment for delinquent refuse bills — Res. No. 7054 (E) B] Proposed vacation of an easement in Westridge Lake Estates 2 Addition at 1053 Peninsula Point Road and 1067 Vista Ridge Lane — Res. No. 7053 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: None TENTATIVE AGENDA October 19, 2010 Page 3 13] General Business: A] Public Works and Engineering B] Parks, Recreation and Natural Resources C] Police and Fire D] Community Development E] General Administration 1. Capital Improvement Plan (CIP) and Future Tax Levy Update (C) F] Personnel 1. 2011 Employee Medical and Dental Insurance — Res. No. 7056 (E) 14] Council Concerns 15] Other Business 16] Recess for an executive session to discuss labor negotiations 17] Re- convene 18] Continuation of General Business: F.2.] Approval of 2010 Labor Contract for Patrol Officers (E) F.3.] Approval of 2010 Labor Contract for Sergeants (E) 19] Adjourn (The next meeting will be on Tuesday, November 9, 2010.) • OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA OCTOBER 19, 2010 Mayor Schmitt called the meeting to order at 7:00 p.m. with Council members Steve Clay, Matt Lehman, Pamela Punt and Pat Heitzman present. Also present was Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; Bruce Loney, City Engineer/Public Works Director; R. Michael Leek, Community Development Director; Gregg Voxland, Finance Director; Sarah Sonsalla, City Attorney; and Judith S. Cox, City Clerk. The Pledge of Allegiance was recited. Mayor Schmitt asked if there were any additions or deletions to the agenda. Mr. McNeill asked to add 13.A.1. Sewer Extension on 2 Avenue and Shumway Street. Clay /Punt moved to approve the agenda as amended. Motion carried 5 -0. In the Mayor's Report Mayor Schmitt attended the Municipal Legislative Committee in Shoreview on October 7 On October 8 he attended the SCALE meeting held at the Training Facility in Jordan. On October 9 he attended the fire department retirement banquet. On October 14 he attended the 169 Corridor meeting. Heard reports on Minnesota Department of Transportation. He also attended strategy meeting regarding the Transportation Policy memo that was drafted and sent to the Metropolitan Council. Mayor Schmitt asked if there were any additions or deletions to the Consent Agenda. Cncl. Lehman asked to remove 5.A.3., County Road 101 Reconstruction Layout Approval — Res. No. 7055. Lehman/Heitzman moved to approve the Consent Agenda as amended. Mr. McNeill read the consent agenda. Motion carried 5 -0. Lehman/Heitzman moved to authorize the appropriate City officials to execute a Cooperative Agreement with Scott County for the construction of a bituminous trail along the west side of CSAH 18. (Motion carried under the Consent Agenda) Lehman/Heitzman moved to accept the quote from Final Grade, Inc. in the amount of $42,298.50 for the Upper Valley Drainageway Stabilization at Sarazin Street project. (Motion carried under the Consent Agenda) Lehman/Heitzman moved to accept, with regret the resignation of Travis Brown from his position as a Community Service Officer with the Shakopee Police Department, effective October 27, 2010. (Motion carried under the Consent Agenda) Lehman/Heitzman moved to authorize the hiring of Thomas Sheveland as a probationary Community Service Officer at Step E of Grade Level 2 of the City's 2010 Non - Union Pay Plan, subject to the satisfactory completion of pre- employment medical and psychological examinations. (Motion carried under the Consent Agenda) Official Proceedings of the October 19, 2010 Shakopee City Council Page -2- Lehman/Heitzman moved to approve the bills in the amount of $1,170,645.91 and electronic transfers in the amount of $721,628.69 for a total of $1,892,274.60. (Motion carried under the Consent Agenda) Lehman/Heitzman moved to approve the City Council minutes of September 21, 2010 and October 5, 2010. (Motion carried under the Consent Agenda) Lehman/Heitzman offered Resolution No. 7051 A Resolution Adopting a Fund Balance Policy, and moved its adoption. (Motion carried under the Consent Agenda) Lehman/Heitzman offered Resolution No. 7052, A Resolution Transferring the Board of Equalization Duties to Scott County, and moved its adoption. (Motion carried under the Consent Agenda) Lehman/Heitzman moved to increase the fixed asset capitalization threshold from $5,000 to $10,000 due to inflation and the few items purchased that cost between those two amounts and to increase the life from more than one year to more than two years. (Motion carried under the Consent Agenda) Lehman/Heitzman moved to reschedule the second regular City Council meeting in December to Monday, December 20 at 7:00 p.m. (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. Heitzman/Clay moved to open the public hearing on the proposed assessments for delinquent refuse bills from Dick's /Lakeville Sanitation, Inc. Motion carried 5 -0. Bruce Loney, Public Works Director /City Engineer, presented Council with Resolution No. 7054 that would assess property owners on taxes payable 2011 for unpaid refuse and recycling services from the City's designated garbage hauler, Dick's /Lakeville Sanitation, Inc. Mr. Loney said that the memo stated there were approximately 250 delinquent accounts for a total amount due of $66,500.00. Mr. Loney said that prior to the Council meeting several people paid their bills which reduced the number of delinquent accounts to 180 for a total amount due of $49,000.00. In addition $45.00 is added to each assessment for staff time. Mr. Loney said that Mr. Domack was present from Dick's Sanitation to answer any questions. Mayor Schmitt asked if there was anyone in the audience who wanted to speak at the public hearing. Steve Link, 12756 Old Brickyard Road, presented Council with his concerns. Mr. Link said that he owns rental property at 972 Atwood St. Approximately three weeks ago he received a letter from the City saying that he owed $139.00 for an unpaid garbage bill which included the garbage bill and assessed late fees. Mr. Link said that one of his renters moved out of his property at 972 Atwood St. in June, 2009. Unknown to Mr. Link, the renter had an unpaid garbage bill in the amount of $19.00. Because of the laps in time of the renter not paying the over - due bill and the assessment fees, it didn't prompt the shadow billing that Dick's Sanitation does with property owners until the bill exceeded $100.00. Mr. Link expressed his concerns regarding the property owner's responsibility in paying the bill when the account was in the renter's name. He said all other utilities are in the tenant's name and they are solely Official Proceedings of the October 19, 2010 Shakopee City Council Page -3- responsible for any late bills and or fees they incur and doesn't understand why the garbage service is held to a different standard. He also expressed his dissatisfaction with being forced by a City contract to use the specified garbage service. Mr. McNeill addressed Mr. Link's questions and concerns regarding the contract the City has with Dick's /Lakeville Sanitation. It was suggested to Mr. Link that if a renter moves out of his rental units, he should contact Dick's/Lakeville Sanitation to see if there are any unpaid bills incurred by the renter. It was also suggested to Mr. Domack of Dick's /Lakeville Sanitation, that in the future if a name at a residence changes at a rental property that they should begin shadow billing the property owner immediately. Mr. Domack said that they would shadow bill the property owner immediately instead of waiting quarterly and/or the bill to exceed $100.00. Linda Johannes, 12756 Old Brickyard Rd., Shakopee, said she owns rental property at 969 Atwood St., and suggested that the shadow billing start immediately so property owners could deduct late bills from the tenant's security deposit. Heitzman/Clay moved to close the public hearing. Motion carried 5 -0. Punt/Clay offered Resolution No. 7054, A Resolution Adopting Assessments for Delinquent Refuse Bills, and moved its adoption. Motion carried 5 -0. Clay/Heitzman moved to open the public hearing on the Vacation of Easement in Westridge Lake Estates 2nd Addition. Motion carried 5 -0. Michael Leek, Community Development Director said that Darrel Gonyea has submitted an application for vacation of an easement located at 1053 Peninsula Point Road & 1067 Vista Ridge Lake. Mr. Leek provided Council with a map highlighting the existing easement. The applicant is intending to realign the common property line thru a Minor Subdivision application and would provide a new easement along the newly created property line, consistent with the City Engineering Department's requirement. The Planning Commission recommended approval. Darrel Gonyea, 1053 Peninsula Point Road, answered a few questions that Council members had regarding the vacation of easement. Mayor Schmitt asked if there was anyone in the audience that which to speak at the public hearing. No one responded. Lehman/Heitzman moved to close the public hearing. Motion carried 5 -0. Lehman/Punt offered Resolution No. 7053, A Resolution Approving a Vacation of Easement within Westridge Lake Estates 2nd Addition at 1053 Peninsula point Road and 1067 Vista Ridge Lane, and moved its adoption. Discussion followed. Cncl. Clay expressed his concerns that people are not taking the time to properly survey their properties before putting in encroaching on easements. Mayor Schmitt asked for a vote on the motion. Motion carried 5 -0. Official Proceedings of the October 19, 2010 Shakopee City Council Page -4- Mayor Schmitt asked to discuss the item that was pulled from the Consent Agenda, County Road 101 Reconstruction Layout Approval. Cncl. Lehman said he asked for this item to be removed from the Consent Agenda because he owns property in the 101 corridor and can not vote on the item. Clay/Heitzman offered Resolution No. 7055, a Resolution Approving C.R. 101 Fillmore Street to Marschall Road Reconstruction Layout, and moved its adoption. Motion carried 4 -1 with Cncl. Lehman abstaining. Mayor Schmitt asked for Council liaison reports. Cncl. Heitzman said he attended the 169 Corridor meeting. Cncl. Punt had no report. Cncl. Lehman said he spent time with the Minnesota Pollution Control Agency (MPCA) discussing pollutants from the City storm drains into the Minnesota River. Cncl. Clay attended the Shakopee Public Utility Commission meeting. Discussed was the work they finished working on the shut off valve boxes to get ready for the winter snow plow season. SPUC also did 30 random home water tests for lead and all came back negative for lead. They also hired Mr. Schimmel as the new Water Superintendent. Lehman/Punt moved to recess for the Economic Development Authority Meeting. Motion carried 5 -0. Mayor Schmitt re- convened the meeting at 8:02 p.m. Kris Wilson, Assistant City Administrator, presented Council with the 2011 Employee Medical and Dental Insurance. Ms. Wilson said the Council is being asked to consider two options for employee's 2011 health insurance, a renewal option for 2011 dental insurance and to adopt the City's contribution rates for 2011. Ms. Wilson said the City received a renewal offer from Delta Dental that provides the same coverage that we currently have for 3.5% increase in monthly premiums. Ms. Wilson said state law requires public sector employers to seek competitive bids on their employee insurance benefits at least once very five years. Because it has been five years since seeking bids for medical insurance, the City hired insurance broker, Financial Concepts, Inc. (FCI) to assist in the process. Bids were sought from Medica, Blue Cross Blue Shield, Health Partners and Preferred One. Only one was interested and submitted a bid and that was Blue Cross Blue Shield (BCBS). BCBS offered the same two plans that the City currently has, however they are only willing to offer us one provider network. With Medica the City currently has two provider networks, a larger and a smaller network. If the City switches to BCBS, everyone would have access to the larger open- access network only and the City would end up paying for the increase in cost. BCBS offer reflects a 9.4% increase over current rates compared to an average of 11.1% if the City stays with Medica, but because of the provider network issue described above, a move to BCBS would result in the City and 46 employees who currently opt for the smaller network paying more than with Medica, 40 wouldn't see a change and 41 would see a cost savings. The added cost to the City by selecting the BCBS offer over Medica would be approximately $15,600 for 2011. This would, Official Proceedings of the October 19, 2010 Shakopee City Council Page -5- however, save a group of 40 employees a collective $26,400. The move to BCBS would also result in some employees finding their current doctors to be out of network and their current prescription to be non - formulary, resulting in a higher cost to the employee. Ms. Wilson said that FCI then contacted Medica and was able to negotiate them down to an offer of a 12.8% increase to the Traditional Co -Pay plan and 10.6% increase on the high deductible plan for the same benefit levels currently in place. Additionally, Medica has provided the City with a rate cap of 13% for 2012, whereas BCBS is only able to offer a 16% rate cap. As a result, staying with Medica is likely to cost the group less over the course of two years than switching to BCBS. Ms. Wilson said that an employee insurance committee was formed to study the options available to the City and provide input on the final recommendations. The group as a whole had no clear consensus as to a preference of Medica or BCBS. Ms. Wilson discussed the City contribution levels for the employees. She said for many years the City has paid 100 percent of the monthly premium for employees selecting single medical coverage, 88 percent for 2 -party coverage and 72.5 percent for family coverage. For dental insurance, the City has traditionally paid 100 percent of the monthly premium for employees selecting single coverage and contributed an equal dollar amount toward the cost of 2 -party and family coverage. Staff is recommending that the Council approve the same level of contribution. Ms. Wilson also said that staff is recommending that the City stay with Medica and Council approve the same contribution level of $750 for single and $1,500 for 2- party /family for employee Health Savings Accounts (HSA) for those employees selecting the high- deductible medical plan. Also enter into contract with Delta Dental to continue the existing dental offerings at the quoted price. Brad Bisek, 14087 Wilds Path NW, Prior Lake, who is also a City employee, spoke on behalf of other City employees who favor the BCBS health insurance offer. Mr. Bisek said that, according to his numbers, a majority of staff members would see a cost savings benefit by moving to BCBS but realizes that approximately 46 staff members would see an increase from $3.00 to $6.00. Mr. Bisek presented a spreadsheet with comparison numbers between BCBS and Medica. Clay /Lehman offered Resolution No. 7056, A Resolution Adopting the City of Shakopee's Contribution Levels for Employee Benefits for the Year 2011, and moved its adoption. Motion carried 5 -0. Lehman/Heitzman moved to authorize appropriate officials to enter into contracts with Medica and Delta Dental for the renewal of group insurance plans for 2011 at the quoted prices. Motion carried 5- 0. Lehman/Heitzman moved for a seven minute recess. Motion carried 5 -0. Mayor Schmitt re convened the meeting at 9:30 p.m. Mr. Loney presented Council with the Sewer Extension at 2nd Avenue and Shumway St. Official Proceedings of the October 19, 2010 Shakopee City Council Page -6- Mr. Loney said that Council ordered a preliminary report for sewer and water on 2nd Avenue from Apgar St. to Shumway St. and water on Shumway St. from 2nd Avenue to 3 Avenue. The project was authorized to determine cost of extending utilities to 211 Shumway versus replacement of the septic system. Mr. Loney discussed the pros and cons of moving forward with the project. Some of the pros are that municipal services would be extended to the residents in the project area. The downside of the project is that the cost to do the project is significant. The cost of a watermain is approximately $100,500 which SPUC said they would pay for half of the cost. The sewer and water costs are approximately $157,480 for a total cost of $257,980. The assessment per lot would be approximately $52,000 per lot which probably exceeds the value of what the lots are worth. Mr. Loney was looking for Council direction if he should move forward with the study and benefit analysis or discontinue the study. Lehman/Heitzman moved to direct staff to not move forward with the study for financial reasons and to allow the property owner at 211 Shumway to proceed with putting in a septic system. Motion carried 5 -0. Gregg Voxland, Finance Director, presented Council with the Capital Improvement Plan (CIP) and future Tax Levy Projections. Mr. Voxland gave a review of the current status of the 2011 -2015 CIP and the impact of the decision not to assess for overlays. Mr. Voxland said that the impact of the overlay decision is that the city pays for the share of the project that would have been assessed. Plus, because at least 20% of the project is not assessed, bonds cannot be sold to finance the project and spread the cost (tax levy) out over several years. It was the intent on the current overlay schedule to transition the levy to a current operating levy instead of a debt service levy over several years. The decision not to assess forced an immediate change instead of transitioning a debt service levy over time. Staff has put together a budget that uses the fund balance in the Capital Improvement Fund (CIF) to transition to the operating levy for overlays. Mr. Voxland reviewed the CIF and the projected debt service levy based on the CIP. The increasing debt service levy for 2012 -2015 amounts to about a 2% annual increase in the total levy. If General Fund expenditures are increased 3% annually, there would need to be an annual levy increase between 2% and 3% also. This may result in a total tax increase between 4% and 5% for the next few years. Discussion followed. Mr. Voxland said he would come back to Council with some alternative scenarios to the issue. Lehman/Punt moved to recess for an executive session to discuss labor negotiations, at 10:10 p.m.. Motion carried 5 - Mayor Schmitt re- convened the meeting at 10:30 p.m. No action was taken during the executive session. Official Proceedings of the October 19, 2010 Shakopee City Council Page -7- Mr. McNeill summarized that the ratification of the 2010 Patrol Officers Union Contract consists of a one -year labor agreement with a 1% general wage increase and a $25 uniform allowance increase. Clay/Punt moved to authorize the appropriate officials to enter into a one -year labor agreement for 2010 with Law Enforcement Labor Services, on behalf of the City's patrol officers, to include a 1% general wage increase and a $25 uniform allowance increase. Motion carried 5 -0. Ms. Wilson presented Council with the Sergeants 2010 labor contract. She said the sergeants have verbally agreed to a one year contract for 2010 to include a 1% general wage increase and a $25 uniform allowance increase, language changes to the injury on -duty article that have no monetary value, an addition to the 20 year step to the longevity pay plan in exchange to do away with the longevity plan for any new appointed or promoted sergeants, an adjustment to the post employment health care savings plan that has no monetary value and a mid -way step to the vacation accrual cap so that an employee between 11 -15 years of service may accrue up to 300 hours of vacation. Lehman/Heitzman moved to authorize the appropriate officials to enter into a one -year labor agreement for 2010 with Law Enforcement Labor Services on behalf of the City's police sergeants. Motion carried 5 -0. Mr. McNeill stated that the patrol officers and sergeants have settled on a 1% cost of living adjustment for 2010. The non -union and public works group did not receive a cost of living adjustment. He asked if Council would like to consider a one -time additional floating holiday to be taken before December 31, 2010 for those employees who received no adjustment for 2010. Lehman/Clay moved to authorize staff to extend to the non -union employees and the Public Works staff an additional floating holiday to be taken before December 31, 2010. Motion carried 5 -0. Punt/Heitzman moved to adjourn to Tuesday, November 9, 2010 at 7:00 p.m. Motion carried 5 -0. Meeting adjourned at 10:35 p.m. Judith S. Cox City Clerk Kim Weckman Recording Secretary