HomeMy WebLinkAboutJuly 05, 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 July 5,2016
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; City Attorney Jim Thomson; City Clerk Lori Hensen;Police Chief Jeff Tate
2. Pledge of Allegiance
3. Approval of Agenda
Mr. Reynolds stated the resolution for 4.D.1 will be on table.
Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to approve the
agenda as amended.
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 No. 4.13.1, acceptance of a donation to the Shakopee Fire Department,was removed by Cncl.
Mocol for further discussion.
Item No.4.C.5,2016 trail reconstruction,was removed by Cncl. Luce for further discussion.
Moved by Councilmember Matt Lehman, Seconded by Councilmember Mike Luce to approve the
Consent Agenda with item numbers 4.13.1 and 4.C.5 removed.
Vote: 5 - 0
A. Planning and Development
B. Police and Fire
1. *Acceptance of a Donation to the Shakopee Fire Department(A,D)
Joe Simon introduced Niko Spehn,the area manager for Centerpoint Energy who was in attendance
to donate$975.00 to the Shakopee Fier Department for the purchase of 2 gas monitors.
Ms. Spehn gave a brief history of Centerpoint Energy's Community Partnership Grant Program.
She was pleased to present the City of Shakopee a Community Partnership Grant for$975 for the
purchase of QRAE 3 Wireless gas monitor equipment.
Mayor Mars thanked Ms. Spehn and Centerpoint Energy for the donation.
Cncl. Whiting asked how the monitors would be used. Mr. Simon said they could be brought into
buildings to detect various gases. They are stored on the trucks and brought into the buildings when
needed. Mr. Simon stated that most monitors last between 3-5 years.
Cncl.Lehman asked if the gas monitor is similar to the ones used in the automotive industry. Mr.
Simon said they are similar, but different.
Cncl.Lehman asked what kind of power source they run on. Mr. Simon stated they run off of a
battery.
Cncl.Luce ask if these monitors information about the location of the gas. Mr. Simon stated the Fire
Department generally checks with the appropriate agencies to determine the source of a leak.
Moved by Councilmember Jay Whiting, Seconded by Councilmember Kathi Mocol to accept the
donation of$975.00 from Centerpoint Energy donation to the Shakopee Fire Department.
Vote: 5 -0
2. *Request to Adopt Resolution No. 7741,Renewing the Joint Powers Agreement with Minnesota
Internet Crimes Against Children Task Force and Bureau of Criminal Apprehension(D)
Motion to authorize city officials to adopt Resolution No. 7741,to renew the Joint Powers
Agreement with the Minnesota Internet Crimes Against Children Task Force(MICAC)and the
Bureau of Criminal Apprehension(BCA). The agreement shall remain in effect through May 31,
2019. (Motion carried under the Consent Agenda.)
3. *Declare Five Forfeited Vehicles as Surplus Property(F)
Motion to declare the five forfeited vehicles named as surplus property. (Motion carried under the
Consent Agenda.)
C. Public Works and Engineering
1. *Fleet Management Software Joint Powers Agreement,Res.No. 7746(B,D,E)
Motion to approve Resolution No. 7746, authorizing the appropriate city officials to enter into a
Joint Powers Agreement with Scott County, Carver County,and the City of Burnsville for the Fleet
Management Software Collaboration. (Motion carried under the Consent Agenda.)
2. *Award a Bid for the 2016 Sanitary Sewer Lateral Pipe Rehabilitation Project No. 2016-6, Res.No.
7745 (E)
Motion to:
1.Approve Resolution No. 7745,to accept the bid and award a contract for 2016 Sanitary Sewer
Lateral Pipe Rehabilitation, Project No. 2015-4.
2. Include a contingency amount equal to 5% of the contract to cover minor change orders and
quantity adjustments that may occur.
3. approve an Extension Agreement with SEH, Inc. for Construction Engineering Services. (Motion
carried under the Consent Agenda.)
3. *Approve Use of Re-purchase Agreement for Unit#132--John Deere 5085 Tractor(E)
Motion to authorize staff to utilize the re-purchase agreement with Ag Power Enterprises, Inc. on
unit#132, a 2014 John Deere 5085 Tractor, for$6,400.00 with the funds to be expended fro the
Capital Equipment Internal Service Fund. (Motion carried under the Consent Agenda.)
4. *2016 Trail Sealcoat Project(A, E)
Motion to accept the quote for Gopher State Sealcoat, Inc. for$39,303.00 and authorize staff to
proceed with the 2016 Trail Sealcoat Project. Funds to be expended form the 2016 Park
Maintenance Budget. (Motion carried under the Consent Agenda.)
5. *2016 Trail Reconstruction(A,E)
Cncl. Luce asked why the bids for this project were so much over the bid of$60,000 that Public
Works was looking for.
Mr. Loney said it was unusual that the bids were not more competitive. The lower bid is close to the
target goal and there is plenty of money in the budget to cover the extra cost.
Cncl.Lehman asked what the average life of a trail is and if these trails are different then the
average trail. Mr. Loney said these are heavily used park trails that were initially constructed in the
early 1990's. With the improvements to trail construction over the years,the trails should last
between 25-30 years.
Cncl. Luce asked if unauthorized vehicles on the trails was a problem. Mr. Loney said it was not a
major issue. Cncl. Lehman pointed out that most trails are constructed to allow secondary
emergency access.Mr. Loney said that most damage to trails is environmental.
Moved by Councilmember Mike Luce, Seconded by Councilmember Jay Whiting to accept the low
quote and authorize staff to contract with Northwest Asphalt,Inc. for the 2016 trail reconstruction.
Vote: 5 -0
D. Personnel
1. *Change Code for 30.08 Criminal History Background Checks, Ord.No. 937(E)
Motion to adopt Ord.No. 937,to amend City Code No. 30.08, Criminal History Background
Checks. (Motion carried under the Consent Agenda.)
E. Parks and Recreation
F. General Administration
1. *City Bill List(F)
Motion to approve the bills and electronic transfers in the amount of$1,896,045.69 and payroll
transfers in the amount of$547,702.30 for a total of$2,443,747.99. (Motion carried under the
Consent Agenda.)
2. *Monetary Limits on Tort Liability for LMC Insurance Trust(F)
Motion for the City Council to not elect elect to waive the monetary limits on tort liability, as
established by Minnesota Statute 466.04. (Motion carried under the Consent Agenda.)
3. *Temporary Liquor License-Parish of St. Joachim&Anne
Motion to authorize the a temporary liquor license for Julifest held by the Parish of St. Joachim &
Anne. (Motion carried under the Consent Agenda.)
4. *Response to SMSC Fee to Trust Application-Tollefson Parcel(D,F)
Motion to authorize the mayor to sign the attached response, on behalf of the City of Shakopee,
regarding the Shakopee Mdewakanton Sioux Community's application to move the identified parcel
of land into trust status. (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 dialog 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.
No one responded.
6. Public Hearings:
A. Cable Franchise
Mr. Reynolds requested this item be continued until the July 19,2016 meeting of the City council.
Moved by Councilmember Matt Lehman,Seconded by Councilmember Mike Luce to continue the
Cable Franchise Public Hearing until July 19,2016.
Vote: 5 -0
7. Business removed from the Consent Agenda will be discussed at this time
Please see items:
4.13.1
4.C.5
8. General Business:
A. General Administration
1. Presentation by Bill Jaffa
Mr. Reynolds introduced Mr.Bill Jaffa with the Scott County CDA. The City Council had
requested Mr. Jaffa give a brief overview of his organization's activities.
Mr. Jaffa gave a brief history and background of the CDA, and discussed the CDA partnership with
Shakopee on the River City Center,Northridge Court, and The Henderson.
Shakopee currently has the largest percentage of CDA housing in the county with 45%of the
allocation of the county's Housing Choice Voucher Program. That number is expected to grow.
The CDA offers project-based assistance and tenant-based assistance, a mortgage foreclosure
prevention program, a homebuyers club, down payment grant assistance, First Stop Shop, Economic
Incentive Program,and the TAP Grant program.
Mayor Mars asked when the current Maxfield study would be available. Mr. Jaffa said a draft
should be available with in the next two weeks.After the cities review the draft a final version will
be adopted and presented to the cities.A commercial and industrial study will also be completed
soon.
Cncl.Whiting. asked Mr. Jaffa to discuss the differences between the housing voucher program and
workforce housing.
Mr. Jaffa first stated that the CDA is currently supporting two applications for workforce housing.
Both projects would accept Housing Choice Vouchers.
Mayor Mars asked if the CDA had discussed how they would handle the growing mental health
concern.Mr. Jaffa stated that the CDA had begun discussions on the issue and would likely partner
with the CAp Agency and Scott County to address the concern. Currently,the CDA works with the
county on some transitional housing for the mentally ill that is owned by the CDA.
Cncl.Lehman asked how the CDA balances the needs of tax payers who are frustrated that their
taxes are going up to pay for other people's housing, particularly those who struggle to pay for their
own homes.
Mr. Jaffa said the question is broad but reminded the council that the CDA is not a taxing authority
but created under the Minnesota State Legislature. The question should be put to those who set the
tax rates.
Cncl.Lehman said that while he understood that the legislatures were the ones who chose the tax
rates but also understood how struggling tax payers would be unhappy about being taxed to pay for
another's home, especially at the potential cost of loosing their own home.
Cncl.Luce noticed that according to Mr.Jaffa's numbers that approximately$8,500.00 or$700.00
per month was being paid for rent per household through the voucher program. Mr. Jaffa explained
that some households were able to pay more than others and an average of the cost would not give a
full picture of the program. He suggested Cncl. Luce talk to CDA Housing Director,Julie Siegert to
get a better idea of how the numbers work.
Mayor Mars encouraged the council members and city staff to meet with Mr. Jaffa and thanked Mr.
Jaffa for his presentation.
Mr. Jaffa would welcome any dialogue with council members and staff.
2. Monthly Financial Review(C)
Mr.Nelson presented the June monthly financial review.
Revenues were slightly above the targeted goal of 50%for the month. The first half tax settlement
was received in late June and revenue fro licenses and permits is now at 100%of the budget
projection.Inter-governmental revenue is down state aid of approximately$600,000 will likely not
be received until October. Miscellaneous revenues are down due to the June interest not yet posted
and because the League of Minnesota Cities Insurance Trust will not be received until the end of the
year.
Expenditures are near the 50%goal partially due to a smaller City Council budget. However,the
finance department is above the 50%mark due to a payment of$258,000 to Scott County for 2016
assessing services.
Under"Other Finances" $125,000 each for the storm and sewer water funds was transferred "in"to
the General Fund and$2.1 million was transferred out. These budgeted transfers occur once a year.
Of the $2.1 million, $1.2 million went to the Capital Improvement Fund and$900,000 to the EDA
Special Revenue Fund. Of the $900,000 to the EDA,$500,000 went to the downtown/101 corridor
and $400,000 went for operations and the revolving loan.
All other departments are where they should be and the city is currently under spent.
The state auditors visited Shakopee in June to review the 2015 calendar year. The auditors reviewed
the city's General Fund and Fund Balance Policies and stated the city was in line with what the State
Auditor's office recommend.
Because the city is moving into budget season,Mr.Nelson discussed the city's fund balances and
the appropriate balances for each fund type. He then went over the definitions and policies of the
city's fund balance and fund equity.
Cncl.Luce asked if forfeiture money could only be used to process forfeitures. Mr.Nelson stated the
money can be used for any forfeiture related activity. Cncl.Luce asked what percentage of the
forfeiture money is given to the different governments involved.Police Chief Jeff Tate stated that
10%goes to the state,40%to the city, and 50%to the county.
Mr.Nelson stated there was a significant drop in the Special Revenue fund in recent years because
MVTA took over the city's public transportation.Mayor Mars asked if a$2 million+balance would
no longer be needed for Special Funds. Mr.Nelson stated that a$2 million dollar balance would not
likely be necessary in the future.
Cncl.Lehman asked if the transportation piece was a pass through fund. Mr.Nelson stated that the
city's transportation dollars now go directly of the MVTA without passing through the city first.
There is a Debt Service Fund for each active bond.Due to a refunding and debt pay off,the Debt
Service Fund has decreased in recent years. it is expected to grow again over the next year.
Cncl.Luce asked what the expected increase to the Debt Service Funds would be. Mr.Nelson stated
he was currently working on those numbers but expected it to be around $1 million of increased
potential tax levy as long as franchise fees go where staff expects them to. More debt will be paid
off in the near future. Cncl. Luce asked if the Debt Service Increase would be over$2 million
without the franchise fees. Mr.Nelson stated the payment for the community center will be
approximately$2.3 million annually.
Mr.Nelson noted that a large spike in the Capital Project Funds in 2012 because there were fewer
projects that year and the balance was allowed to grow.He is planning to prepare a 20 year
projection for the Sewer Fund since the sewer fund is below where is should be. Mr. Lehman asked
if the Sewer Fund took into account the 2015 rate increase. Mr.Nelson explained that the increase
actually happened in January 2016.A number of Capital Expenditures have also caused the Sewer
Fund to drop.
Cncl. Whiting asked if the drop was partially due to the extended sewer reconstruction projects over
the past few years. Mr.Nelson stated they had an effect but Mr. Loney assured him that Shakopee's
sewer system is now in good repair and the number of large projects should decrease in the coming
years. Mr. Loney stated that the sewer reconstruction was nearly completed. Mr.Nelson will also do
projections for the Storm Water Fund.
Mayor Mars was concerned about the future cost of maintaining storm water ponds. Mr.Nelson
agreed that due to some new regulations it could be costly.
Cncl. Luce asked if Mr. Loney was treating some of the storm water ponds. Mr. Loney stated that
Public Works is hying a pilot project to improve the water quality of some of the larger ponds.Mr.
Loney warned that some of the new regulations for storm water ponds could be particularly costly
for Shakopee because of it's many outlets to the Minnesota River.
There was a slight drop in the Internal Service Funds due to a 20%decrease in internal service
charges on rents for buildings,equipment, and the park asset fund.Mr.Nelson would like to
eliminate the decrease.
Cncl.Lehman reminded Mr.Nelson that money was taken from the Building Fund to fund the new
City Hall and noted that it is likely the Internal Service Fund would increase and decrease as new
government buildings were developed.
9. Liaison&Administrator Reports
Mr. Reynolds and Mr.Nelson will be holding listening sessions on July 13,2016 and July 14,2016
to help the general public understand the city's budget process in general and the challenges
involved with this year's budget.
On July 26, 2016 he would like to hold a special workshop meeting to discuss the CIP budget. Ms.
Hensen stated that there would be Election Judge training in the council chambers that night. Mr.
Reynolds will look for a different date and discuss it at the staff meeting.
Cncl.Luce Asked Mr. Reynolds how he was planning to publish the listening sessions. Mr.
Reynolds would use both internal and external mediums to get the information out.
Mr. Reynolds provided the council with a copy of a collection report for Clean-up Day held on
April'10,2016
Cncl.Mocol attended a final planning session of the SDA and stated they are ready for their event.
Cncl.Whiting also mentioned the International Festival
Mayor Mars attended the Chamber board meeting on June 22, 2016 He received several emails
about fireworks over the Fourth of July holiday. He reviewed the building permit fee memo from
Mr. Reynolds. He read articles in the Star Tribune about$19/hour jobs and pod housing and noted
these issues could be coming before the council soon. He also mentioned the International Festival
that would be held on July 8th, 2016
Cncl. Lehman attended the township meeting with a focus on infrastructure. The Met Council give
a presentation on infrastructure, SPUC discussed water elevations, and Shakopee staff discussed
Shakopee's sewer systems.
Cncl. Luce went to the MVTA's monthly meeting where they discussed the bus service from the
Mall of America to Marshall Station.and the one for all of the businesses in town. Amazon is on
board with the project and already committed funds. SMSC is interested but would like to see some
issues resolved first.
10. Other Business
Cncl. Luce would like to discuss the fee schedule, Mr. Reynolds stated that the fee schedules are
currently being looked at, at the staff level and will be brought before the council in the next few
months. He stated that they were under some constraints because of a law suit but they are in the
process of reviewing that.
Cncl. Luce stated that he spent a day knocking on doors for the Inclusive Park Fund and everyone
seems to be receiving the park very well. He talked to Mr. Samson's assistant and they have agreed
to fund the city another$5,000 a year for another 3 years.
11. Adjourn to July 19, 2016 at 7:00 p.m.
Moved by Councilmember Matt Lehman, Seconded by Councilmember Mike Luce to adjourn to July
19, 2016 at 7:00 pm.
Vote: 5 - 0
L ri He se
City Clerk
Beth Lopez
Recording Secretary