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HomeMy WebLinkAboutMay 17, 2016 Minutes D R A F T OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL REGULAR SESSION LOCATION Council Chambers City Hall 129 Holmes Street South May 17, 2016 SHAKOPEE MINNESOTA 7:00 p.m. 1. Roll Call Present: Mayor Bill Mars;Councilmember Matt Lehman; Councilmember Jay Whiting; Councilmember Kathi Mocol;Councilmember Mike Luce Staff City Administrator Bill Reynolds;Public Works Director/Engineer Bruce Loney;Finance Director Present: Darin Nelson;Parks and Recreation Director Jamie Polley; City Attorney Jim Thomson; City Clerk Lori Hensen 2. Pledge of Allegiance 3. Approval of Agenda Mr. Reynolds stated that an updated copy of Resolution No. 7732 was added to the Agenda. Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to approve the Agenda. Vote: 5 -0 4. 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 Council to remove any items from the consent agenda for individual discussion. Those items removed will be considered following the Public hearing portion of the agenda.Items remaining on the Consent Agenda will not be discussed and will be approved in one motion.) Item 10.E.I.,Acceptance of donations for the Shakopee Fun for all Playground,Res.No. 7729,was removed by Cncl.Luce for further discussion. Item 10.E.3.,Acceptance of a donation for the Shakopee Fun for all Playground,Res.No. 7730,was removed by Cncl. Luce for further discussion. Item l O.E.4.,Acceptance of a donation for the Shakopee Fun for all Playground,Memorial Park Bridge and Historical signage,Res.No. 7731,was removed by Cncl.Luce for further discussion. Moved by Councilmember Jay Whiting,Seconded by Councilmember Matt Lehman to approve the Consent Agenda as amended. Vote: 5 -0 A. Planning and Development 1. *Preliminary and Final Plat of the City Hall Campus Motion to approve Resolution No. 7726, a Resolution approving the Preliminary and Final Plat of the City Hall Campus.(Motion carried under the Consent Agenda) B. Police and Fire C. Public Works and Engineering 1. *Approve Plans and Authorize Ad for Bids for the 2016 Sanitary Sewer Lateral Pipe Rehabilitation Project No. 2016-6,Res.No. 7728(E) Motion to approve Resolution No. 7728 A Resolution Approving Plans and Specifications and Ordering Advertisement for Bids for the 2016 Sanitary Sewer Lateral Pipe Rehabilitation Project No. 2016-6, and move its adoption. (Motion carried under the Consent Agenda) 2. *Authorize Disposal of Miscellaneous Surplus Property(F) Motion to declare listed items as surplus property and authorize their disposal. (Motion carried under the Consent Agenda) D. Personnel E. Parks and Recreation 1. *Acceptance of Donations for the Shakopee Fun For All Playground,Res.No. 7729 (A,B,D) Acceptance of Donations for the Shakopee Fun For All Playground,Res.No. 7729, To accept a donation from Bert Notermann,owner of Lions Tap, for the Shakopee Fun For All Playground. Wonderful supporter of the Shakopee community,Bert Notermann,owner of Lions Tap,has generously donated$5,000 for benches to the Shakopee Fun For All Playground.RecommendationTo accept the generous donations in support of the Shakopee Fun For All Playground. Cncl.Luce removed this item from the Consent Business to allow Mr.Noterman to address the Council and present his donation. Mr.Noterman stated that the playground is very important to himself and his family. Mayer Mars thanked Mr.Noterman and stated that his generosity is valued and appreciated. Moved by Councilmember Mike Luce, Seconded by Councilmember Jay Whiting to adopt Resolution No. 7729, a resolution of the City of Shakopee,Minnesota,accepting a$5,000.00 donation from Lions Tap for the Shakopee Fun For All Playground, and move its adoption. Vote: 5 -0 2. *Stans Park Playground Replacement(A) Motion to approve the MN/W1 Playground proposal for Stans Park playground replacement.(Motion carried under the Consent Agenda) 3. *Acceptance of a Donation for the Shakopee Fun For All Playground,Res.No. 7730(A,B,D) Acceptance of a Donation for the Shakopee Fun For All Playground,Res.No. 7730 to accept a donation from Eugene Hauer for the Shakopee Fun For All Playground. Long time Shakopee resident and wonderful supporter of the community,Eugene Hauer,has spoken with committee members and have generously donated$2,000 for benches to the Shakopee Fun For All Playground. Cncl.Luce removed this item from the Consent Business to recognize the generous donation from the Eugene Hauer family. Moved by Councilmember Mike Luce, Seconded by Councilmember Matt Lehman to adopt Resolution No. 7730, a resolution of the City of Shakopee,Minnesota, accepting a$2,000.00 donation from Eugene Hauer for the Shakopee Fun For All Playground,and move its adoption. Vote: 5 - 0 4. *Acceptance of a Donation for the Shakopee Fun For All Playground,Memorial Park Bridge and Historical Signage,Res.No. 7731 (A,B,D) Acceptance of a Donation for the Shakopee Fun For All Playground,Memorial Park Bridge and Historical Signage,Res.No. 7731, from the Shakopee Mdewakanton Sioux Community. Partners and generous supporters of the City of Shakopee,the SMSC, has spoken with committee members and have generously donated$50,000 to the Shakopee Fun For All Playground. In addition,the SMSC has graciously donated $10,000, as well as being a major partner,to the replacement of the Memorial Park bridge.The SMSC is also donating$10,000 to historical trail signage that will be placed in the Memorial Park extension to the south of CR 101. The Shakopee Historical Society will be designing and funding the historical signage in this park area.RecommendationTo accept the generous donations in support of the Shakopee Fun For All Playground,Memorial Park bridge replacement and historical signage. Cncl.Luce removed this item from the Consent Business to recognize the SMSC for their generous donation. Discussion: Mayor Mars stated that he met with Chairman Vig of the SMSC, and discussed this donation.He stated that he is very thankful for the SMSC's generosity and their partnership, Moved by Councilmember Mike Luce, Seconded by Councilmember Kathi Mocol to adopt Resolution No. 7731, a resolution of the City of Shakopee, Minnesota, accepting donations from the Shakopee Mdewakanton Sioux Community for the Shakopee Fun For All Playground,Memorial Park Bridge and Historical Signage, and move its adoption. Vote: 5 - 0 F. General Administration 1. *City Bill List(F) Motion to approve the bills and electronic funds transfers in the amount$1,169,587.76,payroll transfers in the amount of$487,091.07 for a total of$1,656,678.83. (Motion carried under the Consent Agenda) 2. *Authorize Street Closures and Support to the 2016 "Open Streets-Downtown Shakopee" (D) Motion to authorize the requested street closures and support to the 2016 Open Streets-Downtown Shakopee event hosted by Main Street Shakopee as outlined in the letter. (Motion carried under the Consent Agenda) 3. *Approve Temporary Beer Licenses for Shakopee Lions Club(F) Motion to approve the applications and grant temporary on-sale 3.2 percent malt liquor licenses to the Shakopee Lions Club for their Softball Tournament held at Tahpah Park on June 3 through June 5,2016. (Motion carried under the Consent Agenda) 4. *Premises Permit for Shakopee Lions Club,Res. No. 7725 (F) Motion to approve Resolution 7725, a resolution of the City of Shakopee approving the premises permit for Shakopee Lions Club located at the Pullman Club 124 First Avenue East.(Motion carried under the Consent Agenda) 5. RECOGNITION OF INVOLVED CITIZENS BY CITY COUNCIL-Provides an opportunity for the public to address the Council on items which are not on the agenda. Comments should not be more than five minutes in length. The Mayor may adjust that time limit based upon the number of persons seeking to comment. This comment period may not be used to make personal attacks,to air personality grievances,to make political endorsements or for political campaign purposes. Council Members will not enter into a dialogue with citizens, and questions from Council will be for clarification only. This period will not be used to problem solve issues or to react to the comments made,but rather for informational purposes only. Kim Churchill, 16209 Evanston Avenue Prior Lake, addressed the Council regarding issues involving mental illness. Georgie Engelhard, 1524 Balinese Street,addressed the Council regarding the need for housing for those dealing with mental illness. Margaret Chamberlain, 1499 Yorkshire Lane, addressed the Council to advocate for mental health awareness. 6. Business removed from the Consent Agenda will be discussed at this time Moved by Councilmember Jay Whiting, Seconded by Councilmember Mike Luce to adjust the Agenda to allow for the items removed from the Consent Agenda to be discussed prior to the Public Hearing. Vote: 5 - 0 7. Public Hearings: A. Establishment of a Utility Franchise Fee Moved by Councilmember Matt Lehman,Seconded by Councilmember Kathi Mocol to open the Public Hearing. Vote: 5 -0 Mr. Reynolds addressed the Council in regards to the potential establishment of utility franchise fees in Shakopee. Moved by Councilmember Matt Lehman, Seconded by Councilmember Mike Luce to take a five minute recess. Vote: 5 -0 After a short recess, Mr. Reynolds resumed his presentation to the Council.He explained that per state law, a city may impose a franchise fee on a gas or electric utility for the use of the public right-of-way by adopting an ordinance. The fees (either fixed or percentage)can be used for any public purpose. Mr.Reynolds then explained the purpose of franchise fee's and how they are structured. Mr.Nelson described the impact of fixed charges versus percentage charges on Franchise fee's. Cncl.Lehman asked if franchise fees are strictly for gas and electric. Mr. Reynolds replied yes, franchise fees are for use of the right of way and will only be charged on gas and electric charges. Cncl.Lehman asked if the fees will be charged on the actual usage or on the customers total bill. Mr. Reynolds replied that the charges will only be applied to the actual usage of the utility. Cncl.Whiting asked if the franchise fee can be changed at a later date if it is adopted.Mr. Reynolds replied that the City can adjust the fees ay any time. Mr. Reynolds explained the the Council that Staff id recommending a 3%usage fee across the board for residential,commercial and industrial. Staff is also recommending that the fee be dedicated to capital improvements and infrastructure. Cncl.Lehman stated that he would like to see a breakdown of the impact that the fees'will have on small business as well as big business. Cncl Mocol stated that she would like to know the impact that the fee's will have on Jackson Township after annexation. Joe Green,Minnesota Valley Electric,addressed the Council regarding the franchise fee's. Nicko Spehn, Centerpoint Energy, addressed the Council regarding the franchise fee's. Laverne Gilliam,2912 10th Avenue,addressed the Council and asked if there would be administrative fee's added to the franchise fee's. Mr. Thomson replied that the common practice is to include all charges in the franchise fee. Phillip Young,2395 Alysheba Court, addressed the Council and asked what the negative side was to franchise fee's,and would the fees discourage businesses from building in Shakopee. He also asked if new businesses will be allowed to request that the fee's be waived. Cncl. Lehman answered that businesses will be allowed to request the waiver, but that will not mean they are going to get it. Cncl,Mocol asked for information regarding financial aide for people who own older, less energy efficient homes. Moved by Councilmember Matt Lehman, Seconded by Councilmember Mike Luce to close the Public Hearing. Vote: 5 - 0 Discussion: Cnel.Lehman stated that he would like more information. Mr. Reynolds stated that Staff will bring back more information and answers to Councils questions at the next City Council meeting. Cncl.Lehman stated he would like more information on the impact of franchise fee's on various levels of use. Mayor Mars stated that he would like examples of how customers bills will be affected. Cncl. Whiting stated that he likes the idea of diversified revenues, and feels every utility should pay the same fee. He added that he would be in favor of a flat fee as opposed to a percentage fee. Cncl.Mocol stated she would like to see bill comparisons to judge the impact. She also wants more information on financial aide available, as well as the impact on Jackson Township. Cncl.Lehman added that he would like information on the long term impact to the general levy. Cncl.Luce stated that, in his opinion, a flat fee could be more challenging to smaller users. 8. Recess for Economic Development Authority Meeting: Moved by Councilmember Jay Whiting,Seconded by Councilmember Kathi Mocol to recess for the Economic Development Advisory meeting. Vote: 5 -0 9. Reconvene 10. General Business: A. Planning and Development B. Police and Fire C. Public Works and Engineering D. Personnel E. Parks and Recreation 1. Approved a Sponsorship Agreement for Community Center and Ice Arena Facilities(B, C) Ms. Polley addressed the Council regarding approval of a Sponsorship Agreement with the Shakopee Mdewakanton Sioux Community(SMSC)for the Community Center's Senior Lounge, lobby, walking track and the Ice Arena concession stand. Ms. Polley explained that on May 3, 2016 the City Council approved the Sponsorship Agreement that coincides with the city's sponsorship policy. The SMSC Business Council has generously agreed to sponsor the following areas within the Community Center and Ice Arena upon completion of the construction: e Ice Arena Concession Stand- $75,000 o Senior Lounge- $50,000 e Lobby- $30,000 .Walking Track- $25,000 The sponsorship of each area will be for a term of 10 years.The sponsorship includes exclusive naming rights and the SMSC's name and/or logo on each area. The size and location of the sponsor's name and/or logo will be at the discretion of the city. The City will also use the sponsor's name in publications and references to the sponsored areas. Cncl.Lehman Thanked the SMSC for their donation.He asked how the donated dollars are applied to the specific projects. Ms.Polley responded that the sponsorships will go to pay down the bonds on the facility. Cncl.Mocol thanked the SMSC for their generous contribution. Discussion: Mayor Mars thanked the SMSC for their generous donation, and stated that many people worked hard to make this happen. Cncl.Luce thanked the SMSC for their donation and added that he feels this is a great start toward bridging the gap. Cncl.Whiting thanked Chairman Vig and the Business Council for the donation. Moved by Councilmember Kathi Mocol, Seconded by Councilmember Jay Whiting to authorize by motion the execution of a Sponsorship Agreement with the Shakopee Mdewakanton Sioux Community for the sponsorship of the Community Center Senior Lounge, lobby,walking track and Ice Arena concession stand. Vote: 5 -0 2. Approval of the Shakopee School District ISD 720 Ice Rental and Team Room Agreement(C,D) Ms. Polley addressed the Council in regards to the approval of the Shakopee School District ISD 720 Ice Rental and Team Room Agreement, an agreement for the use of the city ice arena. The Shakopee varsity and junior varsity hockey teams call Shakopee Ice Arena their home rink. Second to the Shakopee Youth Hockey Association the school district hockey teams are the second largest renter of ice time,renting approximately$50,000 worth of ice time per year. The varsity and junior varsity teams currently share ice time and are allocated the hours immediately after school for their practice time. Priority scheduling is currently given to the School District for all game times. Ms. Polley explained that the City Council reviewed the proposed agreement on May 3, 2016 and provided the following comments which have been incorporated into the agreement: 1. Change the agreement term length to 10 years from 20 years- See Section 1 2. Insert a termination clause- See Section 19 3. Illustrate the break down of the lump sum payment of$125,000 - See Exhibit A.1 The School District hockey teams currently use the general use locker rooms and do not have a location within the existing rink to store their equipment. Student athletes bring their hockey gear to and from the rink daily. The construction of the new ice arena will include team rooms for the hockey teams. A boys and girls team room were added to the facility and will allow the student athletes to keep their equipment at the rink during the hockey season.An agreement between the School District and the city has been negotiated for use of the team rooms and contracted ice time. Ms. Polley and Mr. Reynolds answered questions and responded to concerns raised by the Council and after much discussion the City Council approved an ice rental and team room agreement with Shakopee School District regarding use of the new Shakopee Ice Arena.The 10-year agreement includes a$125,000 annual payment from the school district, granting the district 26 game blocks, 402 practice hours and lease of team rooms. Moved by Councilmember Kathi Mocol, Seconded by Councilmember Jay Whiting to approve the Agreement for Use of the City Ice Arena by the Independent School District No. 720 and authorize the appropriate staff to execute such agreement. Vote: 3 -2 Opposed: Councilmember Matt Lehman Councilmember Mike Luce F. General Administration 1. Policy for Appointment and Operation of Boards and Commissions,Res.No. 7727(B,D,F) Policy for Appointment and Operation of Boards and Commissions,Res.No. 7727. Mr. Reynolds stated that the review of the past policy and practice regarding the operation of the City of Shakopee Boards and Commissions Interview Committee made apparent the need for an update to conform with current law and best practices.This policy is a revision that provides both an update and incorporates the city's past policy and practice.Mr.Reynolds explained that a draft was reviewed by council on May 3,2016 and the comments of council have been incorporated to include: .All applicants including incumbents will need to interview if they wish to be considered for selection to a board or commission; .A process has been outlined for voting at the council level; . Service has been limited to three(3)consecutive full terms; and .Recognition that the committee may select some applicants who were not selected to be considered if there are future vacancies. Cncl.Mocol stated that she had voiced her concerns in regards to limiting open seats to residents only and not including businesses.Mr.Reynolds replied that there was not enough consensus regarding Cncl.Mocol's concerns,but added that Council could discuss it further. Cncl. Whiting stated that, in his opinion,the EDAC has had some great candidates appointed from businesses, and they pay taxes in the Community. He added that, in his opinion,the pool of candidates is being limited if businesses are not included. Cncl. Lehman stated that while there could be qualified candidates who are business owners, and even residents of other Cities,the argument could then be made that these same candidates could be an asset to other Boards and Commissions as well. Mayor Mars reviewed the surrounding Cities residency requirements for Boards and Commissions appointments. Mayor Mars invited Angie Whitcomb,President of the Chamber of Commerce to address the Council. Ms. Whitcomb stated that the Chamber does not lobby on behalf of businesses, but instead they advocate for all businesses. She stated that she is requesting that the Council amend section 3A to include the option to appoint owners of businesses that are located in Shakopee and area business leaders. Mayor Mars stated that there is a need to determine if the appointments should be limited to only business owners, or if representatives of a business could be appointed. Paul Youngs, Chamber of Commerce Chairperson, addressed the Council and gave his thoughts on appointing businesses to the EDAC. Cncl. Mocol stated that, in her opinion, business owners in the community are serving the City's residents. Cncl.Luce stated that small business owners have a stake in the Community. He added that he feels citizens should get preference,and then small business owners. Cncl.Lehman stated that he is only in favor of residents being appointed. Cncl. Whiting stated that business owners have an interest in Economic Development.He added that the appointments should go to the most qualified individuals whether they are residents,business owners, or business leaders. Mayor Mars asked the Council to discuss how Boards should choose the Chairperson. After much discussion,the Council determined that each Committee should choose their own Chairperson,unless there is not enough experience or a lack of interest, in which case the City Council may appoint a Chairperson. Cncl. Whiting stated that he feels a code of ethics should be created for Boards and Commissions. Mr. Reynolds replied that he is in the process of creating a handbook to be given to each member of a Board or Commission detailing ethics, City background,structure,budget etc... When it is complete it will be distributed to all of the Council members. Cncl.Whiting stated that he feels that candidates for the EDAC should be a resident of Shakopee, a business owner in Shakopee or a Senior Level leader of a business in Shakopee. Cncl.Mocol agreed. Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to change item 3A to include residents and/or business owners, or Senior level business leaders of businesses based in Shakopee for the Economic Development Advisory Committee only. Vote: 3 -2 Opposed: Councilmember Matt Lehman Councilmember Mike Luce Discussion: Mr. Thomson advised that the Council only needs to decide whether or not business owners,however defined, should be eligible to be appointed to the EDAC. Mayor Mars stated that he wants a policy that is fair and equal. Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to approve Resolution Number 7727, a resolution adopting the Policy for the Appointment and Operation of Boards and Commissions as amended. Vote: 3 -2 Opposed: Councilmember Matt Lehman "! Councilmember Mike Luce 2. Award Construction Contracts for the Shakopee City Hall Project(B,E) Mr. Reynolds addressed the Council to award Construction Contracts for the Shakopee City Hall Project.Mr.Reynolds stated that there was a correction,but the correction does not impact the bottom line amounts. Mr. Reynolds explained that the City Council approved the plans and specifications and authorized the advertisement for bids for the construction of a new city hall on April 5,2016. On March 15, 2016,the City Council approved the financing structure of the facility utilizing a series of internal transfers and an interfund loan. In addition at that time it approved the selection of CPMI as the construction manager to work with the project architects BKV Group. On May 5,2016 the city received a total of 75 bids for 25 bid categories. CPMI has completed the review of the bids and has conducted a scope of work review with the apparent low bidders. A letter from CPMI with the recommendation is included with this memo. Total low bids with alternates Numbers 1,2, 3, and 5 was$7,869,711. Recommendations for Award of Contract CP1.01 Earthwork&Utilities- S.M. Hentges $342,600.00 CP1.02 Concrete& CP1.03 Masonry-Hollenback&Nelson $918,800.00 CP 1.04 Steel Erectors-Maxx$170,100.00 CP1.05 Multiscope-Donlar $747,000.00 CP 1.06 Roofing-Berwald $293,000.00 CP1.07 GFRC Panels- Flynn $273,700.00 CP1.08 Metal Panels-Progressive $243,872.00 CP 1.09 Glazing- S &J $495,600.00 CP 1.10 Drywall/Plaster- RTL $706,969.00 CP 1.11 Tile&Terrazzo- Advance Tile&Terrazzo$186,000.00 CP1.12 Acoustic- Twin City Acoustics $311,895.00 CP 1.13 Flooring-CPMI Estimate $90,000.00 CP1.14 Painting-Wasche $78,870.00 CP1.15 Signage-CPMI Estimate $15,000.00 CP 1.16 Elevator-Otis $120,400.00 CP1.17 HVAC&CP1.18 Plumbing&Piping-Peterson Sheet Metal$883,000.00 CP1.19 Mechanical Insulation- Mavo $107,500.00 CP1.20 Fire Protection-General Sprinkler Corp. $153,000.00 CP 1.21 Temperature Control-Automated Logic $94,840.00 CP 1.22 Electrical- EPS $699,000.00 CP1.23 Asphalt Paving-Northwest$96,645.00 CP1.24 Site Concrete-North Country$54,000.00 CP1.25 Landscape&Irrigation-Plant Pro $97,878.00 MP1.01 Steel Erection- Thomberg Steel $321,000.00 MP1.02 Doors&Hardware-Kendall $113,643.00 MP1.03 Pumps&Boilers-Mulcahy$52,108.00 MP1.04 Air Handling Units- SVL w/o Alternate $43,500.00 MP 1.05 Chiller- Trane$64,141.00 A Representative from CPMI was available to answer questions from Council. Cncl.Mocol stated that she has concerns about moving forward with the approval of the plans for the new City Hall without having a plan in place for the current City Hall building. Mr. Reynolds replied that Staff is working toward the goal of determining options to bring to Council for the current City Hall building. Cncl.Lehman had questions regarding some of the estimates that were included. The Representative from CPMI addressed the questions. Mayor Mars asked if the monument sign was included in the bids. Cncl.Luce stated that, in is opinion,the monument sign could be a hazard and he feels it should be removed.Mr.Reynolds replied that because there are going to be two entrances to the campus,the monument sign will direct people to the appropriate parking area. Cncl Whiting stated that, in his opinion,the monument sign should stay in the plans. Mayor Mars stated that there was not enough consensus by Council to remove the monument sign. Cncl.Lehman asked if the Resolution covers the total amount of the bids. Mr. Thomson stated that the Resolution includes the total amount as well as bid alternates 1,2,3 and 5. Cncl.Luce stated that he feels comfortable moving forward with this project after speaking with Mr. Nelson. Moved by Councilmember Jay Whiting,Seconded by Councilmember Matt Lehman to approve Resolution No. 7732, a Resolution Awarding Contracts for the Construction of the Shakopee City Hall. Vote: 4- 1 Opposed: Councilmember Kathi Mocol 11. Liaison&Administrator's Reports The Council Members presented their Liaison reports. The City Administrator presented his Administrator report to the Council. 12. Other Business Cncl. Lehman asked if he could get a list of efficiencies that have been bestowed on Shakopee within last last couple years from SCALE. Mr. Reynolds replied that he would create a list for Cncl. Lehman or request that SCALE give a presentation. 13. Adjourn to June 7, 2016 at 7:00 p.m. Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to adjourn. Vote: 5 - 0 Lori H�i City C�rk Heidi Emerson Recording Secretary