Loading...
HomeMy WebLinkAbout09/22/2015 DRAFT OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL REGULAR SESSION LOCATION Council Chambers City Hall 129 Holmes Street South September 22,2015 SHAKOPEE MINNESOTA 7:00 p.m. 1. Roll Call Present: Mayor Brad Tabke; Councilmember Matt Lehman; Councilmember Jay Whiting;Councilmember Kathi Mocol;Councilmember Mike Luce Staff City Administrator Bill Reynolds; Assistant City Administrator Kris Wilson; Public Works Present: Director/Engineer Bruce Loney;Parks and Recreation Director Jamie Polley; City Clerk Lori Hensen; Interim Finance Director Jean McGann 2. Pledge of Allegiance 3. Approval of Agenda Moved by Councilmember Matt Lehman,Seconded by Councilmember Kathi Mocol to approve the Agenda. Vote: 5 -0 4. Workshop Discussion A. Community Center/Ice Arena Design Update and Discussion(A,B) Ms.Polley addressed the Council regarding the Community Center/Ice Arena Design Update and Discussion. Ms. Polley stated that the City has hired 292 Design Group to develop the final plans and specifications for the Ice Arena addition and Community Center improvements. The City has also hired RJM Construction to provide construction management services. Tom Betti,of 292 Design Group presented the plans for the two sheet ice facility as wells as the plans for the Community Center updates to the Council.The schematic designs have been developed from staff, citizen and user group input. Cncl. Lehman asked if there was an elevator included in the plans. Mr.Betti stated that yes there will be an elevator in the building. Mayor Tabke stated that he appreciates the detail and the number of items that were able to be added to the plans. Ms. Polley explained that the next steps include working with 292 Design Group and RJM Construction to continue working on the design and working on the details of each space. 5. Public Hearing A. Tax Abatement Bonding to Finance Community Center/Ice Arena Project,Res.No.7615 (F) Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to open the Public Hearing. Vote: 5 - 0 Tax Abatement Bonding to Finance Community Center/Ice Arena Project,Res.No. 7615. The Council is asked to conduct a public hearing on the proposal to issue tax abatement bonds in the amount of$32,225,000 to fmance the construction of a new two-sheet ice arena and proposed enhancements to the Community Center facility. The amount of bonds to be issued totals$32,225,000. Of this amount$30,500,000 would be for direct project costs and the remainder would pay for the cost of issuance. Over the 20 year life of the bonds, the City would make principal and interest payments totaling approximately$50 million. Paul Steinman, the City's financial consultant from Springsted,gave a brief overview of Tax Abatement financing. Judy Vermeulen,stated that she was a resident of Shakopee for many years,and she has since moved. She says she moved to find better senior opportunities as she felt Shakopee offered very little for seniors. Her senior group had no place to meet,have coffee or socialize. She congratulated the Council on the senior center included in the plans. Rachel Anderson, 1105 Juniper Court,stated that she recently sold her home on Shakopee, and has been renting. Her family is currently looking for a new home on Shakopee because they enjoy the amenities that Shakopee offers like parks,trails and the Community Center. She added that her family has always used the Chaska Community Center because of all of the programs offered. She is very excited about the Community Center project and stated that it has impacted her family's decision to continue to look for a new home in Shakopee instead of moving elsewhere. She said that she has very young children and the aquatic center plans are very attractive, as well as the community gathering spaces. She added that she is more than willing to pay higher taxes for more amenities. Brad Eckstrom, 1282 Granite Court, stated that in his opinion the Community Center was shoved down the tax payers throats in 1994, and he feels the same thing is happening with these plans.He strongly opposes approving the plans without going to a referendum, and that is not right to the Citizens.He added that just because a few citizens use the ice,it is not right for everybody. He stated that he is all for a nice Community Center,but the Citizens should make the decision. Craig Greenwald, 1808 Presidential Lane,referenced a quote by Cncl.Whiting at the June 16,2015 City Council meeting, and stated that he doesn't feel that a vote for this project represents the people. Betty Gerold, 1005 Shawmut Street,quoted Kathi Mocol regarding a statement she made stating that the Community Center is a need not a want.Ms. Gerold stated that it all depends on which side of the fence you are one. She said that this is not a need,some people can afford this and some people cannot.Taxes are already going up because of the School referendum. She added that this decision should go to referendum,not tax abatement. Michael Goyal, 2644 Lakeview Drive, stated that he is a senior in High School,and he feels that we need a new Community center for all members of our Community whether it is seniors or small children using the aquatic center,it is for more than just hockey. He also referenced surrounding communities who have used tax abatement. Kevin Gillick, 136 6th Avenue East,stated that he is in favor of shooting for the moon in regards to the plans for the Community Center,but he feels the voters should be able to decide if it is what they want. He added that he feels going through any other financing mechanism is a misuse of power by the City Council.He then asked if area businesses will be sharing in the additional taxes. Mr. Steinman stated that yes they will.Mr. Gillick also presented information on the tax rate of Shakopee and surrounding Communities. Nicole Vogel,745 Westchester Avenue,stated she is a senior at Shakopee High School and she is also a member of the girls hockey team. She added that she works at the Community Center is often asked by parents why there are not more programs offered,and it is because there is not enough ice time. She feels that this new facility will help develop hockey for the future and will also help Shakopee grow. William Mars, 1279 Cider Circle, stated that he has over 20 years of financial experience, and asked a couple questions of Mr. Steinman regarding bond payments,and levy amounts. Mr. Steinman answered the questions. Mr. Mars added that he believes the City Council should be searching for the most economic and financially sound way of moving forward with this project. Ibrahim Mohammed, 8053 Stratford Circle, stated that he feels that this is a great opportunity for all residents including children and seniors. He added that he does not feel that the tax increase is a big deal for what it will cover. He stated that the City has grown and as a citizen of Shakopee he fully supports the Community Center.He stated that he feels that the people should support the decision of the leaders who were elected. Todd Hallet, 7104 Sussex Lane,reviewed surrounding communities who have used Tax abatement that was supported at the City Council level.He stated that the hard decisions need to be made by the City Council and not put back on the citizens by going to referendum. He added that he feels that these plans are listening to the people, and he is proud to support it. Lauren McNeil, 2022 Omega Drive,stated she is a junior on High School and also plays on the varsity hockey team. She is upset by the fact that young kids have to stay up late in order to get ice time and then get up early for school. She added that many students have left Shakopee to play for other teams. Keith Meyer,2237 Wildwood Drive,stated that he is a CFO of a medium sized company in the Twin Cities, and he feels that is seems reasonable that the City Council would go to the citizens for a vote on this program.He added that he does not feel that tax abatement is right. Bill Iverson, 1845 Countryside Drive,stated that he is here on behalf of residents who do not have a lot of resources, and would like to know how much a membership at the new facility will cost families. Also would like to know if all residents will have access to the Community Center. Tim Johnson,4651 Village Square Blvd.N., stated he has lived in Shakopee for 15 years, and it is not the same small community it used to be. He stated that in his opinion Shakopee needs amenities to attract new residents.Mr. Johnson explained to the Council that he believes they were voted in to their positions to make these decisions and not to put the decision back on the residents. Lori Ann Gillick, 136 6th Avenue,stated that she believes this issue is a great civic opportunity for young people. She stated that she is not opposed to a new Community Center,but she is opposed to how the residents will be taxed for it.Ms. Gillick explained that large companies such as Amazon,and Shutterfly were given tax incentives,and that money should have been used on the Community Center instead. Mr. Steinman responded and explained TIF and Tax abatement. Susan VanEyl, 1975 Hilldale Drive,stated that she believes that private enterprise is a better solution, and that is a resident wants to use a gym, they should pay for it. She added that she does not believe that the Community Center is a need, it is a want. She also expressed concern regarding any future tax increases because of City projects. She stated that she feels like there is too much emphasis being out on hockey,and there are many other amenities that are not being included. Ed Loiselle, 14077 Autumn Trail,Thanked everyone for showing up.He stated that he has the privilege of teaching students in Shakopee every day, and he wants to keep the talent he sees in Shakopee.He added that he would like to see these students return to Shakopee after they graduate. Joseph Ditto, 1753 Stagecoach Road,asked Cncl.Mocol if she stated in a previous meeting that the Community Center was a need rather than a want. Cncl. Mocol agreed that she did make the statement. Mr. Ditto responded saying that many tax paying citizens have never stepped foot on a sheet of ice. He added that,in his opinion,the Community Center is a want not a need. Renee Schmid, 527 Vista Ridge Lane,asked for the Councils support on the new Community Center. Stated she has kids on hockey,and she travels all over. She stated that we need to keep kids in Shakopee. Butch Lehman, Shakopee resident,commented that the amount of people who were present at the meeting was impressive. He stated that he likes what the Community Center plans look like,but he does not think that all people are being considered when discussing the$50M price tag. The added taxes from the Community Center as well as the School referendum could be difficult for fixed income families.He added that that he doesn't think the Council should take advantage of the moment at the expense of others. He thinks that the Community would be more unified if they were able to vote on the decision. Kevin Wetherille,2129 Valley Creek lane, stated that he was the Chairman of the Shakopee Chamber of Commerce previously and heard from many residents that Shakopee needs more restaurants and gathering places.He stated that in his opinion a new Hockey center would create many new opportunities with the possibility of hosting hockey tournaments. Hockey tournaments bring people into restaurants and other businesses. Mary Isaakson, 703 Lewis Street,had questions regarding membership costs to use the Community Center after the updates. She stated that she has concerns that residents may not be able to afford to use it.Mayor Tabke responded by saying that the intent will be to keep the membership costs near market rate,but he added that all residents will have access to it. Leo Budija, 1798 Foxrun, stated that the community is the triple the size it was,and there are not many more amenities than we had back then. He stated that he feels that the Community Center is a need not a want,and it is the Councils job to provide the opportunity for residents to live a happy,healthy life. Randy Kubes, 1244 Monroe Street,moved to Shakopee in 1986.He stated that now is not the time to be afraid,but to do something to bring the community together.He added that will be proud to pay whatever tax in necessary to bring the community together. Suresh Nair, 7984 Spring Lake Drive, stated he has lived in Shakopee for more than 10 years,and he feels like Shakopee is a growing City that needs proportionate amenities. He added that Shakopee needs to move forward, and if the Community Center is delayed another 5 years the costs could double. He feels like everyone should work to make Shakopee a better place to live. Renae Lehman, 815 E 8th Avenue, stated she has lived in Shakopee for her whole life. She thinks it is great that the hockey association is such a tight knit group.Ms. Lehman questioned why the City can't partner with another organization,or ask another organization to chip in. She feels that an issue of this magnitude should go to the voters. She added that the City needs to take a step back and get solid numbers before moving forward. Alex Gaugh, 1918 Pheasant Run Street,stated he is a Senior in high school,and he notices the City changing and growing rapidly.He stated that there are frequently new students joining classes at the high school. Shakopee needs amenities to keep people coming and also to keep the residents we have living here.He added that he feels we have the opportunity to make Shakopee very appealing. Katie Tabke, stated that there are many things that attracted her family to Shakopee. They love this community, and plan to spend their lives here,and they believe it has a lot to offer. She added that she would love to see more programing for young children, and a place for older children to go and hang out and feel safe. Jarod Swanson, 1359 Noble Drive,stated he has coached young kids in hockey and they have had to go to Dakotah Sport and Fitness to get ice time. He added that he is a swimmer and he would love to join club swimming,but there is nowhere to do that in Shakopee. Moved by Councilmember Jay Whiting,Seconded by Councilmember Kathi Mocol to close the Public Hearing. Vote: 5-0 Discussion: Cud.Lehman stated that he understands the need for the Community Center,but he has concerns about the wave of taxation that is occurring.He thinks the timing of this is very poor and he added that he doesn't think that the operational costs have been figured out. He doesn't feel that he knows where the majority of residents stand on this issue just based on the turn out at the hearing. He stated that he has watched the community be divided since 1996 over this issue, and that it is not healthy for a community to be this divided. The Council should be encouraging unity,but this process could magnify the division.He stated that he feels that an issue of this magnitude needs to go to the people for a vote. Cncl. Whiting stated that he has spoken to hundreds of people and feels that very few oppose it.He stated that the new Community Center will keep families living in Shakopee and spur growth and development.He added that he feels like the issue would pass a referendum,but why spend the extra money.Mr. Whiting stated that he feels that kids are at risk traveling to other communities for ice time, losing sleep and losing productivity in classes. Shakopee needs a Community Center to continue to grow,and now is the time to invest in the Community. Cncl. Mocol thanked everyone for coming, and stated that she feels confident using tax abatement bonds for this project. She stated that it is a need in the community. She added that she feels Shakopee is a proud metropolitan community with the heart of a small town,and that she believes the community has been involved in this decision. Mayor Tabke stated that he has worked on this project for many years and he is very proud of it. He added that he does think this will divide the community,but thinks it will bring the community together. He stated that his goal as Mayor is to help set up the community for years to come so kids will come back to Shakopee to build their lives and raise their families.He feels that this project goes a long way to meeting the long term goals of the conununity.He added that every resident is an investor in the community. He thanked Staff and everyone involved for all of their hard work. Moved by Councilmember Jay Whiting,Seconded by Councilmember Kathi Mocol to approve Resolution No. 7615,a resolution approving property tax abatement related to Community Center expansion and public infrastructure improvements in the City of Shakopee. Vote: 3 -0 Other: Councilmember Matt Lehman(ABSTAIN) Councilmember Mike Luce(ABSTAIN) Discussion: Cncl. Lehman stated that he is abstaining from the vote because his property was listed specifically.He added that he doesn't feel that he knows what the majority of the people want. Mayor Tabke asked legal how to proceed after the vote. Julie Eddington,Kennedy and Graven,stated that the 3 votes will count as the only votes and they are a majority. She added that the abstentions should be noted in the minutes. Cncl. Lehman asked if since his PID is listed specifically if it is a conflict of interest. Ms. Eddington answered that a tax abatement district contains many parcels and PID's, and that the entire city is taxed for the bond issue. She added the Cncl.Lehmans interest is the same as everybody in the City. 6. Consent A. Closing of the 2004D Debt Service Fund,Res.No. 7614(C) Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to approve Resolution No. 7614 closing the 2004D Debt Service Fund into the 2012A Refunding Debt Service Fund. Vote: 5 -0 7. General Business A. 2016 Proposed Property Tax Levies,General Fund Budget and Debt Levy Cancelations,Res.Nos. 7612 &7613 (C) Ms. McGann presented the 2016 Proposed Property Tax Levies, General Fund Budget and Debt Levy Cancelations. She explained that the City of Shakopee is required to comply with the statutory deadlines for submittal of the property tax levy to Scott County and must certify the levy before September 30, 2015. The levy amount that will be certified to Scott County before September 30th,2015 is the base for budget work that will be brought back to City Council for continuing budget discussions in October and November. Ms. McGann stated that City Staff recommends the City Council adopt the property tax levy as reviewed and discussed by the City Council on August 5th.The preliminary levy increase represents a 5.1 %increase over the 2015 levy. Personnel Cost of living increase Union contracts are settled for 2016 and include a 3%cost of living increase. As in past years, non-union cost of living increases will be projected at the same level as union. PERA Effective Jan. 1,2015, for coordinated members of the general employees' retirement plan of PERA, both employer and employee base contributions increase from 6.25%of salary to 6.50%of salary.As before,this percentage is in addition to any contribution rate adjustment provided by Minn. Stat. § 353.27. The contribution rate for a basic member of the general employees retirement plan remained at 9.10%of salary. There are no changes for 2016. Insurance For 2016 an increase of 5%in health insurance costs are anticipated. Organizational Structure In 2015 the Council approved an organization structure change. For 2015, increases in wages/benefits were accounted for with vacant positions. The full impact of the organizational structure change in 2016 will be approximately$157,000. Included in the organizational change is the addition of a Human Resource Manager and a Planning Manager. Levy Limits At this time there are no levy limits for 2016. Capital Improvement Program As part of the 2016 budget process,we will be presenting a 5 year planning model for Engineering and Parks. The model is intended to show stakeholders the results of current budget actions and provide scenarios for future actions at the staff and Council level.This format integrates the current 5 year capital plan and 2016 budget. The plan provides information and analysis on Capital Funds, including Park Funds,as well as the Sanitary and Surface Water Enterprise Finds. The Capital Improvement Program is prepared by City staff,reviewed by the Planning Commission for conformance with the Comprehensive Plan. It is then submitted to the City Council for approval. Bills Mars,resident, asked if any additional costs including operational costs for the new community center would be discussed in the 2017 budget. Mayor Tabke answered yes. Cristeta Berini, Shakopee Valley news, asked how the difference in the percentage from the last discussion will affect different properties in Shakopee. Ms.McGann answered that a homeowner with a home value of$236,823.00 will see an increase of$73.42 with the 5.1%levy. Cncl. Whiting stated that this is not the final levy because the County numbers are still needed. Ms. McGann responded that she will have final numbers from the County prior to approving the final budget and final levy. Cncl. Whiting asked if Ms.McGann feels the preliminary numbers are close t the final numbers. Ms.McGann answered that there may be a slight adjustment,but the numbers are very close. Cncl.Lehman asked if the levy amounts can be changed prior to the end of December. Ms. McGann responded that the final numbers must be certified by December 28,2015. Mayor Tabke asked if the 5%healthcare increase was included.Ms. Wilson answered that she is estimating a 5%increase,but firm numbers should be brought to the Council in October. Cncl. Whiting stated for the record that the proposed increase was the maximum amount that can be taxed. Moved by Councilmember Jay Whiting,Seconded by Councilmember Kathi Mocol to approve the proposed FY 2016 Proposed Property Tax Levies,Preliminary General Fund Budget and canceling specific debt service levies for 2016. Vote: 5 -0 8. Adjourn to October 6,2015 at 7:00 p.m. Moved by Councilmember Matt Lehman,Seconded by Councilmember Kathi Mocol to adjourn. Vote: 5 -0 lensc Acting Ci' lerk Heidi Emerson Recording Secretary