HomeMy WebLinkAbout09/17/2013 OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL
REGULAR SESSION SHAKOPEE,MINNESOTA SEPTEMBER 17,2013
1. Roll Call
Mayor Tabke called the meeting to order at 7:00 p.m. and roll call was taken.
Present: Mayor Brad Tabke, Councilmembers, Jay Whiting,Matt Lehman, Steve Clay and Pat
Heitzman
Staff Present: 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; Samantha DiMaggio,
Economic Development Coordinator; and Jim Thomson, City Attorney
2. Pledge of Allegiance
3. Approval of the Agenda
Mr. McNeill advised Council that item IO.E.1,Appeal of Penalty for Unauthorized Tree
Removal Assessment for Eternity Homes— 1995 Evergreen Lane, should be removed from the
agenda, and deferred to the October 1, 2013 meeting. Added to the agenda was I O.F.1,
Shutterfly Subordination Agreement.
Clay/Heitzman moved to approve the agenda as amended. Motion carried 5-0.
4. Consent Business
Cncl. Heitzman asked to remove 4.F.4,Request for Pay Increase for Shakopee Public Utilities
Commissioners—Resolution No. 7358.
Cncl. Whiting asked to remove 4.F.6, Valley Fair Alcohol License Action.
Cncl. Clay asked to add to the consent agenda 10.A.1, Planned Unit Development Amendment
for Saint Francis Regional Medical Center—Res.No. 7361,and IO.A.2,Planned Unit
Development Amendment for Shakopee Valley Market Place—Res.No. 7362.
Lehman/Whiting moved to approve the Consent Agenda as amended. Mr. McNeill read the
Consent items. Motion carried 5-0.
4.A.1 Lehman/Whiting offered Resolution No. 7360,A Resolution Setting the Public Hearing
Date to Consider the Vacation of Drainage and Utility Easement. (Motion carried under the
Consent Agenda)
4.C.1 Lehman/Whiting moved to authorize the appropriate City officials to sign the easement
agreement with Betaseed for the Valley View Road Project. (Motion carried under the Consent
Agenda)
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4.C.2 Lehman/Whiting offered Resolution No. 7353,A Resolution Accepting Work on the
2012 Bituminous Overlay, Project No. 2012-1, and moved its adoption. (Motion carried under
the Consent Agenda)
4.C.3 Lehman/Whiting offered Resolution No. 7356, which ordered a Preliminary Engineering
Report for the Hilldale Drive Improvements. (Motion carried under the Consent Agenda)
4.C.4 Lehman/Whiting offered Resolution No. 7355, A Preliminary Engineering Report for the
2014 Street Reconstruction Project; authorize the appropriate City officials to execute an
agreement with ITCO Allied Engineering Company to perform soil borings; and authorize the
appropriate City officials to execute an agreement with Bolton&Menk, Inc. to perform
engineering services. (Motion carried under the Consent Agenda)
4.C.5 Lehman/Whiting offered Resolution No. 7354,A Resolution Declaring the Amount to be
Assessed,Ordering the Preparation of Proposed Assessments, and Setting the Public Hearing
Date for Delinquent Refuse Bills; also directing a$45 administrative fee penalty to be added to
assessment amounts for City costs. (Motion carried under the Consent Agenda)
4.D.1 Lehman/Whiting moved to authorize the appropriate officials to enter into a contract
extension with the Minnesota Municipal Utilities Association(MMUA)for the provision of a
Safety Management Program, at a cost not to exceed$24,400. (Motion carried under the Consent
Agenda)
4.D.2 Lehman/Whiting offered Resolution No.7357,A Resolution Amending the Personnel
Handbook for Employees of the City of Shakopee. (Motion carried under the Consent Agenda)
4.D.3 Lehman/Whiting moved to recognize Janna Grassel's successful completion of the
required probationary period and grant her full-time, regular status in the position of Crime
Prevention Specialist. (Motion carried under the Consent Agenda)
4.D.4 Lehman/Whiting moved to recognize Philip Sendelbach's successful completion of the
one-year probationary period and grant him full-time,regular status as a Police Officer(Motion
carried under the Consent Agenda)
4.F.1 Lehman/Whiting moved to approve the bills in the amount of$ 1,518,715.01 and
electronic transfers in the amount of$386,286.97 for a total of$1,905,001,98. (Motion carried
under the Consent Agenda)
4.F.2 Lehman/Whiting moved to approve the City Council minutes from September 03,2013.
(Motion carried under the Consent Agenda)
4.F.3 Lehman/Whiting moved to approve the application and grant a massage therapist license
to Mary Wolf. (Motion carried under the Consent Agenda)
4.F.4 Removed from consent agenda.
4.F.5 Lehman/Whiting moved to designate Tuesday,December 10th, 7:00 p.m.,to be the time
and date for a workshop presented by the Urban Land Institute of Minnesota,entitled
"Navigating the New Normal". (Motion carried under the Consent Agenda)
4.F.6 Removed from consent agenda.
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Shakopee City Council Page 3
10.A.1 Lehman/Whiting offered Resolution No. 7361, a Resolution of the City of.Shakopee,
Minnesota,Approving an Amendment to the Planned Unit Development for South Valley Health
Campus. (Motion carried under the Consent Agenda)
10.A.2 Lehman/Whiting offered Resolution No. 7362,A Resolution of the City of Shakopee,
Minnesota,Approving An Amendment to the Planned Unit Development for Shakopee Valley
(Motion carried under the Consent Agenda)
5. Recognition of Involved Citizens by" Council.
Mayor Tabke asked if there was anyone in the audience who wished to speak on an item not on
the Agenda.
Troy Boegeman, 1995 Evergreen Lane, acknowledged that 10.E.1,Appeal of Penalty for
Unauthorized Tree Removal Assessment for Eternity Homes— 1995 Evergreen Lane was
removed from the agenda and deferred to the October 1 S`meeting,but stated that he would like to "!
see the penalty enforced, and stated that he would like the Council to deny the appeal.
6. Public Hearings:
6.A. Authorizing the Issuance,Sale,and Delivery of the Health Care and Housing
Facilities Revenue Refunding Note(Benedictine Health System Obligated Group) Series
2013 in Three Series and Related Documents-Res.No. 7359
Clay/Whiting moved to open the public hearing. Motion carried 5-0.
Julie Eddington of Kennedy&Graven presented staff and Council with a brief presentation on
Conduit Debt.
Ms. Eddington said St. Gertrude's Health Center has requested that the City issue three separate
notes in the total amount of approximately 20 million dollars. The proceeds of those notes are
going to refinance the various senior housing projects,which are located in the City of Osseo,
City of Minneapolis and City of Shakopee. The City is authorized to issue these notes under
Minnesota State Statute. The other impacted cities had authorized these requests earlier this
summer.
Upon approval of the resolution,the Notes will be issued as conduit debt, and executed by the
Benedictine Health System. The issuance does not obligate the City of Shakopee for the debt, or
obligate future tax levies.
She said that the credit rating of the City will not be adversely impacted,even if the group
encounters financial difficulties.
Mayor Tabke asked if there was anyone in the audience that wished to speak at the public
hearing. No one responded.
Whiting/Clay moved to close the public hearing. Motion carried 5-0.
Whiting/Heitzman offered Resolution No. 7359,Authorizing the Issuance, Sale,and Delivery of
the Health Care and Housing Facilities Revenue Refunding Note (Benedictine Health System
Obligated Group), Series 2013 in Three Series and Related Documents. Motion carried 5-0.
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Shakopee City Council Page 4
7. Business removed from the Consent Agenda
4.F.4 Request for Pay Increase for Shakopee Public Utilities Commissioners (SPUC)-
Resolution No. 7358.
Cncl. Heitzman asked for the removal of this item because the pay increase requested is
approximately 30% . He agrees they deserve a raise but with the current request and the recent
approval of the Mayor and Council pay increases, he is concerned about the example it is setting
for upcoming employee pay increases and union contract negotiations. Cncl. Heitzman said he
wouldn't support a 30% increase.
Cncl. Lehman asked Ms. Wilson if there was a comparable community that was used to
determine the pay increase. Ms. Wilson said there aren't any metro communities with the same
utility structure as Shakopee, but that staff could do some research if Council wanted to defer the
motion.
Cncl. Clay and Mayor Tabke agree that the commission members should get a pay increase.
Clay/Whiting offered Resolution No. 7358, a resolution establishing a rate of pay for
Commissioners of the Shakopee Public Utilities Commission,and move its adoption. Discussion
followed.
Cncl. Lehman asked how the Commission came up with 30%percent increase. John Crooks,
Shakopee Public Utilities manager, said that there was consensus among the Commissioners for
a pay increase because of growth and the demand for increased meetings.
Cncl. Heitzman would still like staff to research what commission members in other cities are
getting paid.
Mayor Tabke asked for a vote on the motion. Motion carried 3-2 with Cncl. Lehman and Cncl.
Heitzman in dissent.
4.F.4 Valley Fair Alcohol License Action
Cncl. Whiting asked for the removal of this item because he felt it was important to bring the
issue forward again.
Mr. McNeill said that at the previous City Council meeting,David Frazier, General Manager of
Valley Fair, made note of the fact that Valley Fair actually holds five different licenses
throughout the park. He also said that in 2013,the Minnesota Legislature approved a law
specific to Valley Fair, which would allow a single alcohol license to be issued park-wide at
Valley Fair. However,that single license has not yet been considered, or approved by the City
Council. Therefore,he questioned whether the October,2012 incident was actually a second
violation.
Upon direction from the City Council, staff had subsequently looked at this situation with the
City Attorney. It was noted that the two infractions listed in this memo were at separate locations
in the park, and were under separate alcohol licenses. As a result, it was the opinion of the City
Attorney that each of the licenses must be considered separate, and therefore,the infraction
which occurred on October 6,2012 was actually a first infraction.
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Shakopee City Council Page 5
When given this information, Valley Fair has signed an acknowledgment stating their violation
for a first-time offense. In accordance with City Code,therefore, the violation to be imposed
would be a$1,000 fine,with a one-day suspension of alcohol sales. However,the Code also
provides that$500 of the fine, and the one-day suspension will be stayed, if Valley Fair has no
subsequent violations within a one-year period of time(expiring October 6,2013). That was
acceptable to Valley Fair management. Valley Fair therefore signed an acknowledgement of the
violation of City Code, and will accept the penalty.
It should be noted that Valley Fair has been advised that their proposed change to make the park
fall under a single liquor license will complicate future violations. Assuming this is enacted, a
second violation which occurs anywhere within the park under the single license will mean that
no alcohol could be sold anywhere in the park for a five day period of time. That is currently
being considered by Valley Fair.
Staff therefore recommended that City Council receive the acknowledgment of the first-time
violation by Valley Fair, and impose the$1,000 fine and one-day suspension of alcohol sales
privileges,with$500 of the fine and the one-day suspension to be stayed for a period of one
year, assuming there are no other violations which occur before October 6,2013.
Cncl. Whiting stated the seriousness of the violation. He asked Mr. Frazier if they still plan on
combining all licenses into one license. Mr. Frazier said he is open to discussing the options of
five licenses or one license.
Cncl. Whiting said that he would like to consider stiffer penalties for establishments that hold
more than one liquor license.
Mr. Padilla, Food and Beverage Director,provided Council with an overview g ,p w of their staff
training process with regard to serving g p g g alcohol.
Lehman/Heitzman moved to accept the admission of Valley Fair for a first-time alcohol sales
violation, and impose a$1,000 fine and a suspension of one-day of sales of alcohol privileges,
with$500 and the one-day suspension being stayed, if no further violations take place before
October 6,2013. Discussion followed.
Cncl. Whiting expressed concern if Valley Fair chooses to continue with the five licenses, and
another issue similar to this one comes up.
Mayor Tabke asked for a vote on the motion. Motion carried 5-0.
8. Recesses for Economic Development Authority Meeting.
Clay/Heitzman moved to recess for the Economic Development Authority Meeting. Motion
carried 5-0.
9. Reconvene
Mayor Tabke reconvened the meeting at 8:25 p.m.
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Shakopee City Council Page 6
10. General Business
10.F.1 Shutterfly Subordination Agreement
Mr. McNeill asked for Council's approval to enter into a Subordination Agreement with Ryan
Companies relating to the Shutterfly project.
In effect,the City is being asked to take a second position when it comes to financing relative to
the mortgage provider to the Ryan Companies. Without the Subordination Agreement,it would
difficult for private developers to obtain financing. Ryan/Dean Lakes, or subsequent secondary
developers, continue to pay all special assessments related to the Dean Lakes properties.
Whiting/Clay offered Resolution No. 7364,Resolution Approving Subordination Agreement and
Authorizing the Execution and Delivery of the Subordination Agreement and a Certification
Letter to Dean Lakes I,LLC. Motion carried 5-0. Motion carried 5-0.
11. Council Member Reports
Cncl. Heitzman had nothing to report.
Cncl. Clay had nothing to report.
Cncl. Lehman said the 494/169 project is up for consideration of an award as one of America's
top 10 road projects.
Cncl. Whiting attended the employee picnic and thanked City employees for all their work. On
09/06/13 he attended the SCALE executive committee and discussed post-secondary education,
sex offender registration and input regarding potential State legislative mandates. On 09/09/13
was the school board meeting. There was discussion about district strategic direction testing,
social media, substitute teacher pay and the Board's decision to implement their long range
strategy and ask voters to approve an 89 million dollar bond referendum to build a new high
school. On 09/10/13 he attended the Shutterfly groundbreaking ceremony. On 09/12/13 he
attended the SCALE general membership meeting.
Mayor Tabke met with Shakopee Area Catholic Schools on 09/05/13 to talk about the jobs that
are coming to Shakopee and how they will affect the religious community. He also attended the
employee picnic. On 09/10/13 he attended the Shutterfly groundbreaking. Later that evening he
welcomed the firefighters from all of the surrounding communities at a meeting in Shakopee.
On 09/12/13 he attended the ground breaking ceremony for Recovery Technology Solutions
(RTS). That evening he attended the SCALE Scott County First Stop Shop had a broker and
developer event at Canterbury Park. On 09/17/13 he attended a luncheon the Chamber of
Commerce held at Mystic Lake.
12. Other Business
Mayor Tabke presented Shannon Fiecke,reporter for the Shakopee Valley News, with a card and
wished her well on her new endeavors.
13. Adjourn
Whiting/Heitzman moved to adjourn to Tuesday, October 1, 2013 at 7:00 p.m. Motion carried 5-
0.
Official Proceedings of the September 17,2013
Shakopee City Council Page 7
Meeting ended at 8:34 p.m.
Julie A. Linnihan
Finance Director/City Clerk
Kim Weckman
Recording Secretary