HomeMy WebLinkAbout08/20/2013 OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL
ADJ. REGULAR SESSION SHAKOPEE,MINNESOTA AUGUST 20,2013
1. Roll Call
Mayor Tabke called the meeting to order at 7:00 p.m. and roll call was taken. '
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Present: Mayor Brad Tabke, Councilors Pamela Schurman,Matt Lehman, Steve Clay and Jay
Whiting.
StaffPresent: Mark McNeill, City Administrator;Kris Wilson,Assistant City Administrator; '
R. Michael Leek, Community Development Director; Bruce Loney,Public Works ,
Director/Engineer; Julie A. Linnihan,Finance Director/City Clerk; and Jim Thomson, City '
Attorney
2. Pledge of Alle�iance ,
3. Auproval of the A�enda
Mark McNeill advised Council that there is a proposed revised agenda. Mr. McNeill said that '
4.C.2,Award a Contract for the Valley Park Business Center Improvement Project No. 2013-6,
Res.No. 7343 has been updated. Item 4.F.4, Application for Tobacco License eCig Store of �
Shakopee LLC was also updated with an address change. Whiting/Schurman moved to approve !
the agenda as amended. Motion carried 5-0.
3.A RecoQnition of Retiring Council Member Pamela Schurman
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Mayor Tabke presented Cncl. Schurman with a plaque for her years of service on the Council. '
4. Consent Business
Cncl. Lehman asked to remove from the Consent Agenda,4.C.2,Award a Contract for the
Valley Park Business Center Improvement Project No. 2013-6,Res.No. 7343 and 4.F.3,
Autharizing Out-of-State Travel for Mayor Brad Tabke,Res.No. 7340. '
Whiting/Lehman moved to approve the Consent Agenda. Mr. McNeill read the Consent items.
Motion carried 5-0.
4.A.1 Whiting/Lehman offered Resolution No. 7342, a resolution approving the Final Plat of '
Dean Lakes Tenth Addition,and move its adoption. (Motion carried under the Consent Agenda) '
4.B.1 Whiting/Lehman moved to authorize the payment of$1,500 from the police department's
drug forfeiture fund to the Meth Task Force for anti-drug presentations in the Shakopee schools
for the 2013-2014 school year. (Motion carried under the Consent Agenda)
4.C.1 Whiting/Lehman moved to authorize the appropriate City officials to execute a Pipeline
Crossing Agreement with Union Pacific Railroad Company. (Motion carried under the Consent
Agenda)
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Shakopee City Council Page 2
4.C.2 Removed from the Consent Agenda
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4.C.3 Whiting/Lehman moved to authorize the appropriate City officials to sign the easements
from St. Francis Regional Medical Center. (Motion carried under the Consent Agenda)
4.D.1 Whiting/Lehman offered Ordinance No. 871,an ordinance of the City of Shakopee '
amending Shakopee City Code Section 2.41 dealing with criminal history background checks. '
(Motion carried under the Consent Agenda) ;
4.D.2 Whiting/Lehman moved to recognize Bradley Purrington and Alexander Dauphen's !
successful completion of the two-year probationary period required of paid-on-call firefighters ,
and grant them regular status. (Motion canied under the Consent Agenda) '
4.D.3 Whiting/Lehman offered Resolution No. 7345, a resolution amending Resolution Na ',
7260, adopting the 2013 pay plan for certain non-union employees of the City of Shakopee, and ;
move its adoption. (Motion carried under the Consent Agenda) ,
4.D.4 Whiting/Lehman offered Resolution 7347, a resolution adopting a Policy on Uniforms for
Employees of the Fire Department and Amending Resolution No. 6336,a resolution setting a ',
Uniform/Clothing Policy, and move its adoption. (Motion carried under the Consent Agenda) i
4.E.1 Whiting/Lehman moved to approve the Shakopee Youth Hockey Association Advertising II
and Concessions Stand Agreements for the 2014 and 2015 seasons. (Motion carried under the '!
Consent Agenda) �
4.F.1 Whiting/Lehman moved to approve the bills in the amount of$2,152,849.64 and
electronic transfers in the amount of$448,747.86 for a total of$2,601,597.50. (Motion carried
under the Consent Agenda) '
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4.F.2 Whiting/Lehman moved to approve the minutes from July 29, 2013. (Motion carried �
under the Consent Agenda)
4.F.3 Removed from the Consent Agenda
4.F.4 Whiting/Lehman moved to approve the application and grant a tobacco license to eCig
Store of Shakopee, LLC, 185 1 st Avenue East . (Motion carried under the Consent Agenda) ,
4.F.5 Whiting/Lehman moved to authorize an amendment to Section 3.7 , and the "Recitals" �
section of the Development Agreement with Rosemount. Inc. (Motion carried under the Consent ',
Agenda) !
4.F.6 Whiting/Lehman moved to approve the application and grant a temporary on-sale liquor
license to the Shakopee Area Catholic Schools for October 4,2013 at 2700 17th Avenue East. ;
(Motion carried under the Consent Agenda)
Casey Hankinson,vice president of Development for Ryan Companies, commended the City '
staff for the work they did with Shutterfly project. He said that a groundbreaking ceremony will
be held on September 10�h at 11:00 a.m.
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Shakopee City Council Page 3
5. Reco�nition of Involved Citizens bv Citv Council.
Mayor Tabke asked if there was anyone in the audience who wished to speak on an item which '�
was not on the Agenda. No one responded. �I
6. Public Hearings: '
6.A Public Hearin�for Vacation of Public Drainage and Utilitv Easements on propertv ;
located at 1624 Weston Court(Apple Ford Shakonee site) and 1684 Weston Court-Res. No.
7341
Whiting/Lehman moved to open the public hearing. Motion carried 5-0. '
Michael Leek,Community Development Director, stated that Gulbrandson Real Estate, LLP has ,
submitted an application for vacation of public drainage and utility easements on property i,
located at 1624 Weston Court(Apple Ford Shakopee site)and 1684 Weston Court(site upon
which the Apple Ford Shakopee dealership is proposing an expansion).
The easements referenced in this request are located under the existing building,would be
located under the proposed expansion area, along with other locations where they no longer are
needed. As part of the minor subdivision application which was recently submitted and is
currently being reviewed by staff,the applicant will be providing new drainage and utility
easements as requested by city and Shakopee Public Utility Commission staff.
The required ten-day notice of the public hearing was provided by publication in the Shakopee
Valley News. Comments ftom staff inembers and utilities, as well as a recommendation for
approval of the vacation from the Planning Commission, will be presented to the City Council '
for consideration.
The applicant/property owner has recently revised the site plan by eliminating the car wash '
proposed on the southerly portion of the lot,and have scaled back their proposed expansion in
that there is no encroachment over the drainage and utility easements between Lot 1 &Lot 2,
Block l, Shakopee Valley Marketplace West. They have subsequently withdrawn that segment ',
of their request. ;
Mayor Tabke asked if there was anyone in the audience that wished to speak at the public II
hearing. No one responded. '
Whiting/Clay moved to close the public hearing. Motion carried 5-0.
Lehman/Schurman offered Resolution No. 7341, a resolution approving a vacation of public
drainage and utility easements on property located at 1624 Weston Court(Apple Ford Shakopee
site) and 1684 Weston Court(site upon which the Apple Ford Shakopee dealership is proposing '
an expansion),and move its adoption. Motion carried 5-0.
6.B. Vacation of Cei�tain Drainage and Utility Easements in Onus MVW and Onus
MVW 2nd Addition-Res.No. 7346
Schurman/Whiting moved to open the public hearing. Motion carried 5-0. !
Mr. Leek said Clark Engineering,representing SanMar,has submitted an application for
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Shakopee City Council Page 4
vacation of portions of drainage and utility easements in the Opus MV W and Opus MV W 2nd !
Addition plats.
The purpose of this application is to prepare far a minor subdivision to adjust a lot line to create �I
a more marketable parcel southeast of SanMar's building that is zoned Light Industry(I-1). The
proposed parcel is 9.30 acres. The proposed vacation is for utility easements adjacent to the ',
current lot line. Clark Engineering has already applied for a minor subdivision that contemplates
the vacation of these specific easements, which would make the proposed lot more marketable
for future industrial development. Additional easements that comply with Engineering Design i
Criteria are proposed as part of the minor subdivision.
The Planning Department provided notice to other City departments and utility companies. At '
this time there are no utility services located in these easements. All comments received during '.
the review period are in favor of the vacation,provided acceptable drainage and utility easements . '
are dedicated as part of the minor subdivision adjacent to the relocated lot line. !
At the August 8th meeting of the Planning Commission,the Planning Commission unanimously
recommended that the City Council approve the vacation request as presented. I
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Mayor Tabke asked if there was anyone in the audience that wished to speak at the public ,
hearing. No one responded. �'
Whiting/Lehman moved to close the public hearing. Motion carried 5-0. ',
Whiting/Clay offered Resolution No. 7346, a resolution approving the vacation of certain
Drainage and Utility Easements in both Opus MVW and Opus MVW 2nd Addition, subject to I
the dedication of the drainage and utility easements as proposed by the minor subdivision. '
Motion carried 5-0.
7. Business removed from the Consent A�enda
4.C.2 Award a Contract for the Vallev Park Business Center Imnrovement Proiect No.
2013-6,Res.No. 7343
Cncl. Lehman asked what the update was in the memo. Bruce Loney,Public Works ;
Director/Engineer stated that per the agreement with Opus and Emerson the City needed to have �
them review the bids which happened after the original memo was sent out. Discussion took
place with Opus and Emerson which is stated in the updated memo. '
Whiting/Schurman offered Resolution No. 7343,a resolution which awards a contract to '
Northwest Asphalt, Inc., and approved a 5%contingency amount on the project for use by the !
City Engineer in Authorizing change orders or quantity adjustments,and authorize the '
appropriate City Officials to execute an extension agreement with WSB&Associates, Inc.to '
perform construction engineering services. Motion carried 5-0.
4.F.3 Authorizing Out-of-State Travel for Mavor Brad Tabke—Res.No. 7340
Cncl. Lehman asked for the removal of this item for discussion, He stated that he believed the
out of state travel was against the current city policy that requires authorization ahead of time.
Mayor Tabke explained his position regarding the trip to meet the CEO of Shutterfly to discuss
the opening of Shutterfly in Shakopee.
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Shakopee City Council Page 5
Jim Thomson,City Attorney, said that what Cncl. Lehman is referring to is a policy and not an
ordinance or law. He also advised that Council had the authority to approve a retroactive
approval under the policy.
Clay/Whiting offered Resolution No. 7340, A Resolution Authorizing Out-of-State Travel for
City Business by Mayor Brad Tabke. Motion carried 4-1,with Cncl. Lehman in dissent. �
8. Recess for Economic Development Authority Meeting
Clay/Lehman moved to recess for an Economic Development Authority meeting. Motion �
carried 5-0.
9. Reconvene
Mayor Tabke reconvened the meeting at 7:45 p.m.
10. General Business
10.D.1 Establishin�Elected Officials Salaries for 2014—Ordinance No. 872 '
Kris Wilson,Assistant City Administrator, said at the August 7 City Council meeting,the �
Council discussed the current salaries paid to elected officials and directed staff to return with an
ordinance to increase the Mayor's salary from$7,854 to$15,000 per year and Councilpersons'
salazies from$6,715 to $7,500 per year. Elected official salaries were last increased January 1,
2006.
Whiting/Clay offered Ordinance No. 872, an ordinance amending City Code Chapter 2, Section I�
2.13,pertaining to the salaries of Mayor and Councilpersons. Motion carried 3-2 with Cncls. i
Lehman and Schurman in dissent.
10.F.1 2014 Budget Review
Mr. McNeill explained that the Minnesota legislature enacted a 3% levy limit over the 2013 '
payable levy amount. He also stated that the legislature also created a tax exemption on certain ;
City purchases. The full impact of the sales tax exemption is not known at this time. The other I
item the legislature changed is the formula in which Local Government Aid(LGA) is calculated.
However,even with the new formula, Shakopee will not receive LGA.
Mr. McNeill explained that Council will need to set a preliminary levy for FY 2014 at the
September 3,2013 meeting. Council will also need to determine what debt service levies to �
cancel and what fund position to help pay the expenditures in 2013. '
Julie Linnihan, Finance Director/City Clerk,also stated that the requested action the Council will �!
be asked to approve is a preliminary levy on Tuesday, September 3rd. This levy must be certified
to Scott County,prior to September 15th, 2013.
The requested levy will be the 2013 levy amount($15,333,223),plus an increase of the property '
tax levy limit amount of 3 %($459,997), thus increasing the 2014 requested levy to $15,793,220. ;
Ms. Linnihan said the process will be different from prior years, in that the individual City
departments will not be presenting their line item budgets to Council. The departmental budgets
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Shakopee City Council Page 6 ;
are instead being reviewed at a staff level, and the overall budget, including revenues, !,
expenditures, and fund transfers will be refined during September and October. If necessary, a
workshop for budgetary purposes will be scheduled in October. ;
The final budget will be presented to Council,along with the final property tax levy,at the
December 3rd City Council meeting. ;
Ms. Linnihan discussed updated property values received from Scott County. The Net T�
Capacity for 2013 was$39,030,498. The estimated Net Tax Capacity for 2014 is$40,977,859, an
increase of$1,947,361 or 4.83 %. When a property tax increase is proposed, market value '
increases from the prior year values will result in a lower impact to residents on their 2014
property tax statements. These increased values typically allow for a reduced impact on property '
tax payers (except when a property tax levy is increased). �
She provided the most recent levy rate estimates from Scott County. The increased value that has
been estimated by Scott County will allow for a 3 %property tax levy increase while
maintaining an estimated tax rate slightly less than the 2013 budget year(41.996 in 2013, and
41.214 in proposed 2014) ,.
As noted previously,municipalities will be subject to property t�levy limits for 2014. At this
time,this is only for the upcoming budget year.
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The Truth in Taxation(TNT)process will continue as in recent years,with the requirement to
hold a portion of the public meeting to discuss the 2014 Budget,prior to December 30th,2013.
At this meeting staff is required by law to include a discussion of the estimated savings that may
be experienced as a result of the sales tax exemption. This discussion will also include whether i
this exemption will result in a property tax levy reduction. ,
Overall budget adjustments from 2013 to 2014 include personnel costs such as increased wages,
health insurance, PERA, as well as a full year cost of the positions approved and added during
2013.
New osition requests are being reviewed by the City Administrator, as he continues meetin '
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with staff to prioritize and evaluate their departmental budgets and requests. These will be
discussed with Council at a future date.
Several departments have prepared positions adjustments that reflect changes in the job
responsibilities,work flow,and in preparation for succession planning which will result from
longer term employees who are considering retirement. Also,an increase in salary has been ;
budgeted for the Mayor and City Councilors. I
Overall adjustments to the budget expenditures include a reduction of the building fund
departmental"rental"charges of 5%from the 2013 rate. ,
Equipment rates have been updated for the individual departrnents,with allowances for the I�
newly purchased equipment as well as increases in anticipated replacement costs.
Sales tax adjustments have been only minimal during the preparation of the preliminary budget,
as the MN Department of Revenue is continuing to refine the interpretation of the newly enacted
law.At this time,there will be no sales tax exemption for any departments of the City that
involve activities or services that could be provided by the private sector(i.e.; Community
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Shakopee City Council Page 7
Center), services or work provided through a Joint Powers Agreements,or contractual work for
projects or improvements.
Property and liability insurance rates are also being updated by the League of MN Cities
Insurance Trust, with an estimated 2 to 3 %increase over 2013 premiums. ;
The City initiated several fund transfers in the 2013 budget, and these will continue in 2014.
Scott County has provided the debt service amounts for which the City is allowed to levy in the �
2014 budget process. In 2013 the City did not levy for any of the levy amounts,but instead
continued its past practice of utilizing cash position and fund transfers to pay the annual debt
service payment amounts.
The debt service requirements for 2014 total $1,212,743. The Council will be requested to '
consider levying for some part of this debt service obligation. The 2004B Debt is partially i
covered through the Fire Referendum Levy,proposed in 2014 at$175,000, which is '.
recommended to be increased from the 2013 levy of$150,000. Staff's other recommendation is �
to consider the 2006A debt, as part of the 2014 debt levy. ;
The Council asked for additional information on the City's outstanding debt.
The 2014 Capital Infrastructure plan was discussed at a Council meeting in July. The primary �
projects for the 2014 budget year will be funded through the use of transfers from the General '�
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fund($750,000),Municipal State Aid funds($1,966,000), special assessments($2,640,000),
SPUC portions($790,000)as well as Federal and County cost sharing. The plans provide for the
bituminous overlays, street reconstruction, CSAH 17 and Vierling Drive Intersection,
Shenandoah Business Park Improvements and the TH 101 Trails. I
11. Council Members' Reports '
Cncl. Whiting attended the school board learning session. There was discussion about offering ',
all-day kindergarten in 2014 and the need to provide space to accommodate it. The School
Board also discussed the future high school. '
Cncl. Clay had no report.
Cncl. Lehman had no report.
Cncl. Schurman had no report.
Mayor Tabke attended Project Community Connect on August 8th. On August 12�h he attended
the Kinder�arten class at the YCMA and attended the Regional Council Mayor's meeting. On
August 13t he attended the ribbon cutting ceremony at Green Meadows Park. On August 17�h
St. Francis sponsored a Bike Ride with the Mayor. He said he also attended the ribbon cutting
ceremony at the Home Choice store,in which the store donated$1,000 to Enigma Teen Center.
12. Other Business
Mr. Loney said there is a final County Rd. 17/Vierling Dr. reconstruction open house on
Wednesday, August 21 St at Country Inn Suites. '
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Shakopee City Council Page 8
13. Adiourn
Schurman/Clay moved to adjourn to Tuesday, September 3, 2013 at 7:00 p.m. Motion carried 5-
0.
Meeting ended at 8:20 p.m.
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fJulie A. Linnihan
Finance Director/City Clerk
Kim Weckman
Recording Secretary
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