HomeMy WebLinkAbout4.F.2. Approval of Minutes: March 19, 2013 Consent Business 4. F. 2.
St- 1AKC3('EF
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Julie Linnihan, Finance Director /City Clerk
DATE: 04/02/2013
SUBJECT: Approval of March 19, 2013 City Council Minutes (F)
Action Sought
Move to approve the minutes from March 19, 2013.
Attachments: 03 -19 -13 City Council Minutes
OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL
ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA March 19, 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, Councilors Pamela Schurman, Matt Lehman, Steve Clay and Jay
Whiting.
Staff Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City Administratar;
R Michael Leek, Community Development Director; Bruce Loney, Public Works
Director/Engineer; Julie A. Linnihan, Finance Director/City Clerk; Jamie Polley, Parks,
Recreation &Natural Resource Director; and Sarah Sonsalla, City Attorney
2. Pled�e of Alle�iance
3. Service Plaques—City Boards and Commissions
Mayor Tabke recognized retiring volunteers of various Boards and Commissions. He presented
plaques to Premm Badhwa(Transit Commission 2007-2013) and George McGuire (Economic
Development Advisory Committee—2010-2013). Mayor Tabke also said that there are plaques
for individuals who couldn't attend the meeting. They are Andy Seidensticker(Planning
Commission 2006-2013) and Gretchen Seifert(Park and Recreation Advisory Board 2010-2013)
4. Approval of the Agenda
Mr. McNeill asked to add 12.F.2, Reschedule SCALE Economic Development 501 Workshop.
Schurman/Clay moved to approve the agenda as amended. Motion carried 5-0.
5. Consent Business
Cncl. Lehman asked to remove from the Consent Agenda item S.D.1, Authorization to Hire
Economic Development Coordinator
Lehman/Schurman moved to approve the Consent Agenda as amended. Mr. McNeill read the
Consent items. Motion carried 5-0.
S.C.1 Lehman/Schurman offered Resolution No. 7283, A Resolution Accepting Work on the
Main Street Utility Improvements Project, Project No. 2012-5, and move its adoption. (Motion
carried under the Consent Agenda)
S.C.2 Lehman/Schurman offered Resolution No. 7284, A Resolution Approving Plans and
Specifications and Ordering Advertisement for Bids for the 2013 Bituminous Overlay, Project
No. 2013-2, and move its adoption. (Motion carried under the Consent Agenda)
Official Proceedings of the March 20, 2013
Shakopee City Council Page 2
S.C.3 Lehman/Schurman moved to authorize the purchase of two light trucks from Midway
Ford for the price of$39,327.84. The funding to be expended from the Capital Equipment
Internal Service Fund. (Motion carried under the Consent Agenda)
S.C.4 Lehman/Schurman moved to approve and authorize the appropriate city officials to enter
into a Cleaning Contract with Plymouth Ridge, Inc. d/b/a Coverall Cleaning Concepts until
February 28, 2014 for seasonal park restroom cleaning. (Motion carried under the Consent
Agenda)
S.E.1 Lehman/Schurman moved to authorize the purchase of a Daktronics Scoreboard from
Aim Electronics in the amount of$42,170.00 plus tax. (Motion carried under the Consent
Agenda)
S.E.2 Lehman/Schurman offer Resolution No. 7279, A Resolution Approving Plans and
Specifications and Ordering Advertisement for Bids for Riverside Fields Park Construction
Project No. PR 2012-1. Also, move to authorize the bid opening on April 9, 2013 at 11 a.m.
(Motion carried under the Consent Agenda)
S.F.1 Lehman/Schurman moved to approve the bills in the amount of$707,533.51 and
electronic transfers in the amount of$520,096.54 for a total of$1,227,630.05. (Motion carried
under the Consent Agenda)
S.F.2 Lehman/Schurman moved to approve the minutes from February 19, 2013 and March 5
(Motion carried under the Consent Agenda)
S.F.3 Lehman/Schurman moved to authorize the Mayor and City Administrator to execute the
agreement for professional services amendment (Change Order#10) between the City and Foth
Infrastructure and Environment, LLC. (Motion carried under the Consent Agenda)
S.F.4 Lehman/Schurman moved to set a hearing for Tuesday, April 16, 2013, at 7:00 p.m. or
thereafter, to review the actions of Duerr LLC dba Wine Cellars, Global Restaurant Group, Inc.
dba Dangerfield's, Stonebrooke Golf Club LLC, Raceway Park, Inc. and American Legion Club
Post No. 2. (Motion carried under the Consent Agenda)
5.F.5 Lehman/Schurman moved to authorize the expenditure of up to $47,000 for the
reconfiguration of office space at City Hall and the Community Center by Lambrecht
Construction. (Motion carried under the Consent Agenda)
S.F.6 Lehman/Schurman moved to direct staff to dispose of the identified surplus cubicle parts
and associated hardware though electronic sale. (Motion carried under the Consent Agenda)
6. Business removed from the Consent Agenda
Cncl. Lehman removed S.D.1, Authorization to Hire Economic Development Coordinator. He
stated that creating this position is a missed opportunity to save money and felt the First Stop
Shop would be more cost effective.
Clay/Whiting moved to autharize the hiring of Samantha DiMaggio for the position of Economic
Development Coordinator, at Step D of Grate 8 of the City's 2013 Non-Union Pay Plan,
contingent upon successful completion of the required background check and pre-employment
physical/drug-test. Motion carried 4-1 with Cncl. Lehman in dissent.
Official Proceedings of the March 20, 2013
Shakopee City Council Page 3
7. Recognition of Involved Citizens bv City Council.
Mayor Tabke asked if there was anyone in the audience who wished to speak on an item not on
the Agenda. No one responded.
8. Convene Economic Development Authority Meetin� (City Council to Remain in
Session
9. Public Hearin�s
9.A Joint City Council/EDA Public Hearin� on Emerson Development A�reement
Lehman/Schurman moved to open the public hearing. Motion carried 5-0.
Mr. McNeill said the City Council and EDA called for a joint public hearing to consider a
business subsidy plan and development agreement for Emerson Process Management.
The public hearing is set for 7:00 p.m. on Tuesday, March 19th. However, Emerson and City
staff is continuing negotiations on the business subsidy plan and development agreement.
Unfortunately, the proposed documents were not ready for consideration by either of the policy
making bodies at this time.
Mr. McNeill asked the Council to open the Public Hearing and then continue it to the Apri12,
2013 meeting.
Mayor Tabke asked if there was anyone in the audience who wished to speak at the public
hearing. No on responded.
Lehman/Clay moved to continue the Public Hearing for Emerson Process Management to
Tuesday, April 2, 2013 at 7:00 p.m. Motion carried 5-0.
10. City Council Adiourns (EDA Remains in Session)
Lehman/Whiting moved to recess far an Economic Development Authority Meeting. Motion
carried 5-0.
11. EDA Adiourns & City Council Reconvenes
Mayor Tabke reconvened the meeting at 7:20 p.m.
12. General Business
12.A.1 Historic Preservation Ordinance and Desi�n Guidelines
Mr. Leek said the Historic Preservation Advisory Commission (HPAC) has been warking for
several years on an ordinance and is looking for guidance from the City Council regarding
whether or not to pursue the ordinance through additional comment and public hearing
processes. He said that the City Council is not being asked to designate historic properties or
approve the ordinance this evening.
Pat Plouman, President of the HPAC,provided Council with background history of the HPAC
and is asking Council far guidance regarding the draft ordinance the HPAC has developed.
Official Proceedings of the March 20, 2013
Shakopee City Council Page 4
Mark Noble, Planner II said the HPAC met with property owners last summer, and made
changes to the draft ordinance based on comments they received from the property owners, in
addition to comments received from the State Historic Preservation Office. Staff received
assistance from the City Attorney's office in the drafting of the ordinance in its current form.
Additionally, staff intends to develop design guidelines to offer the property owners a guide to
assist with the preparation of plans and development of projects that they may wish to construct.
The Commission requests that the Council review the information provided and offer
suggestions or recommendations prior to the Commission proceeding with notifying the property
owners of a public hearing; at which time the Commission will forward a recommendation to the
City Council for adoption of the Ordinance.
The Commission has tentatively scheduled the review of the draft ordinance on their May 13th
Commission meeting, at which time the property owners of the potential listed properties will
have an opportunity to approach the Commission and share their opinions on the proposal.
Mr. Noble said that after the meeting, the results of that meeting and the recommendation of the
Commission will be forwarded to the Council for formal adoption. He also provided a list of
properties that would be regulated by this Ordinance, as well as being potential recipients of
funding from State and Federal grant and loan programs, should the City be recognized as a
Certified Local Government (CLG).
Before taking comments from Council, Mr. Noble introduced the HPAC members present at the
meeting. They are Pat Plouman, Patricia Coonen-Korte, Sara Weyer and Marty Berens.
During Council discussion several concerns came up such as whether subsequent property
owners would be able to opt out whether the City should cover fees and costs for people who
wish to comply with an adopted ordinance. A Council member eXpressed the belief that such
an ordinance would not be constitutional.
Sara Weyer asked Council if they were willing to engage in a work session with the HPAC to
wark through the details of the ardinance. Council and the HPAC agreed to set up a work
session on April 9, 2013 and to include the homeowners that are on the current HPAC list of
designated historical properties.
Mayor Tabke asked if there were any homeowners that wished to speak regarding the ordinance.
Bob Bauer, 434 Lewis Street, said the notification to homeowners from the HPAC has been
lacking. He also said that several other property owners are not aware of what the HPAC's
intent is with this ordinance. Mr. Bauer also said he's a city attorney for other cities and feels the
draft ordinance is unconstitutional.
Shawn Nelson, 603 8t" Ave., has concerns about what impact the ordinance has on future
homeowners in the city.
Patricia Coonen-Korte, HPAC member and homeowner at 106 6t" Ave., supports historic
preservation of properties.
Jordan Olson 249 Mound St., wanted to remind Council that they are in charge of city
infrastructure and not imposing items such as the ordinance in discussion upon any private
homeowner.
Official Proceedings of the March 20, 2013
Shakopee City Council Page 5
Lori Gillick, 136 6t"Ave E., said she owns two properties on the HPAC's list and opted out of
the program because she said the ordinance is too restrictive.
Mr. Leek wanted it known that the HPAC has been sharing the draft ordinance provisions with
potentially affected property owners, and Mr. Noble confirmed that it had been sharing that
information with them.
Lehman/Clay moved to recess for a break. Motion carried 5-0.
Mayor Tabke reconvened the meeting at 8:32 pm.
12.E.1 Presentation of the Shakopee Tennis Association on a Proposed Indoor Tennis
Facili
Jamie Polley, Parks, Recreation& Natural Resources Director, stated that the Shakopee Tennis
Association would like to present to Council a preliminary business plan for an Indoor Tennis
Facility. The Park and Recreation Advisory Board (PRAB) is recommending to the City Council
the endorsement of the Shutrop Park site as the location for the facility until a 3rd party
assessment and analysis is completed.
Dave Forbes, President of the Shakopee Tennis Association, discussed the future vision of
developing the Shutrop Park site to house an indoor tennis facility. He reviewed the proposed
timeline far the project which includes a market study, business plan, fundraiser, final design and
construction.
Mr. Fobes is asking for support from the City Council to commit Shutrop Park as the future
location for the indoor tennis facility until a 3rd party assessment and analysis of the feasibility of
the project and location can be completed. Following the study the Tennis Association will
present findings to the City Council. If the findings are positive and the project is self-supported
and found to be feasible, the City Council may be asked at that time for a commitment on the
Shutrop Park site.
If Shutrop Park is utilized for the facility, the tennis association is requesting to lease, at a
minimal fee, approximately five acres. The city would develop the remaining four acres. The
entire park would remain city property.
Whiting/Lehman moved to endorse the concept of the Shutrup Park site as the location for the
indoor tennis facility through a letter of intent until a 3`d party assessment and analysis is
completed within one year. Motion carried 5-0.
12.F.1 Settin� a Public Hearin� for Compass Datacenter's Request for Tax Abatement
Mr. McNeill said Council is being asked to consider a request for tax abatement and call for a
public hearing to consider abatement.
Compass Data Systems has identified 11.32 acres of property in the Dean Lakes area, upon
which five condominiums housing data centers would be constructed. Of the approximately
500,000 square foot parcel, about 110,000 square feet would be covered by buildings.
The number of full-time permanent employees to be created within two years of the issuance of
certificate of occupancy would be a minimum of 40, being paid an average wage of$68,000 per
employee.
Official Proceedings of the March 20, 2013
Shakopee City Council Page 6
The total amount of subsidy requested is approximately $2.1 million. Total investment would be
approximately $67 million, the majority of that is from non-taxable property such as computer
equipment. It is estimated by Scott County that the amount of taxable property would be $13
million. This figure is important for determining taX abatement or tax increment.
Compass has requested assistance in the form of tax abatement, fee waivers for trunk storm
water charges, infrastructure assessments, and sewer availability charges.
Compass Data Center has requested 50% tax abatement over 10 years based on an assumption
that the entire $67 million would be taxable which it's not based on estimates from Scott County.
Mr. McNeill presented the Council with tax abatement revenue estimates from Springsted, the
City's financial advisar. Springsted's estimates are as follow:
EMV
Estimated Incremental New Building Market Value Assumption $13,000,000
Estimated Total City Abatement Revenue over 9 years $563,318
Estimated Total County Abatement Revenue over 9 years $544,346
Estimated Total Tax Abatement Revenue over 9 years $1,107,663
Ray Watson, a representative of Compass Data, answered questions the Council had with regard
to the request.
The information was provided to the Economic Development Authority Commission(EDAC)
which recommended that 50% abatement was a more appropriate figure. Using that scenario,
Compass would receive a total of$281,659 over a nine year period of time.
Council was asked to schedule a public hearing on April 9, 2013 at 7:00 to meet the time line of
Compass.
Whiting/Schurman offered Resolution No. 7285, A Resolution Calling a Public Hearing on a
Property Tax Abatement for Certain Property in the City of Shakopee, Minnesota, and Granting
Certain Business Subsidies to Compass Datacenters. Motion carried 5-0.
12.E.2 Text Amendment to the Shakopee City Code Sec. 11.60 Subd.9 Re�ardin�Tree
Management Re�ulations, Ord. No. 866
Ms. Polley asked Council for review and approval of Ordinance No. 866 Fourth Series, an
ordinance adopting revisions to City Code Sec. 11.60, Subd. 9 regarding tree management
regulations.
She stated that the current Tree Management Regulations are triggered by any development on a
parcel of land containing a tree and for which a preliminary plat, minor subdivision, building
permit, conditional use permit, variance, fence permit, or grading permit is required. At this
time, the act of cutting trees alone does not trigger any of the previously listed permits and
therefore does not put into effect the tree management regulations. No tree replacement would be
required.
In 2012 and 2013 three large developable areas in Shakopee were clear cut by the owners. Two
of the three areas contained large oak trees. The cutting of the trees in these areas did not trigger
the need for a permit and therefore did not trigger the Tree Management Regulations. During the
Official Proceedings of the March 20, 2013
Shakopee City Council Page 7
time that the third area was being clear cut, the Council adopted Ordinance No. 864, An Interim
Ordinance of the City of Shakopee, Minnesota Establishing a Moratorium Temporarily
Prohibiting Land Alteration activities in the City.
Ms. Polley said the Moratorium is in effect for 180 days. It pertains to any private or public
infrastructure and utility installation,building construction, excavation, grading, clearing, filling
or other earth change on any parcel of land, or adjacent parcels of land in common ownership,
greater than one acre in size, and that will result in the alteration of land of by mare than 1 foot
from the natural contour of the ground on any contiguous 450 square feet of ground where
significant trees are present. It also applies where there is any cutting, removal or killing of more
than 10% of the significant trees on any such parcel of land
The proposed text amendments to the Tree Management Regulations were reviewed by the
Environmental Advisory Committee on February 13, 2013 and recommended to the Planning
Commission. On March 7, 2013 the Planning Commission reviewed the amendments and held a
public hearing. One developer was in attendance to comment on the proposed changes. The
Planning Commission has recommended to the City Council the text amendment to Section
11.60, Subd 9 as presented.
After a long discussion with Council, it was determined that the Environmental Advisory
Committee needs to do more research on the following questions:
1. What is the impact on the State law regarding right to farm? Can trees be
removed if the intent is far agricultural purposes and what happens if agricultural
use is not implemented?
2. Research impact on commercial/industrial development on less than 2.5 acre lots.
3. How to deal with small lots, commercial/industrial and residential, in old
Shakopee zoning district.
4. Can tree replacement ordinance for heritage trees be increased from 2:1, to 4:1, or
greater?
12.F.2 Reschedule SCALE 501 Workshop
Mr. McNeill said the SCALE 501 Workshop that was scheduled for April 9, 2013 needs to be
rescheduled. He proposed May 14, 2013. Council agreed to reschedule to workshop for May
14, 2013 at 7:00 p.m.
13. Council Members' Reports
Cncl. Schurman had no report.
Cncl. Lehman attended the 169 Corridor Coalition. The discussion was regarding lobbying and
advocacy for 169 between 494 and Mankato.
Cncl. Clay attended the Shakopee Public Utilities Commission. Commissioner's Helkamp and
Mars extend their appreciation for being appointed to serve another term. SPUC had also had
discussion about privately owned fire hydrants.
Cncl. Whiting attended the joint EDAC/Planning Commission meeting regarding the continued
process for revising the sign ordinance. He attended the SCALE meeting and was elected as
Official Proceedings of the March 20, 2013
Shakopee City Council Page 8
Vice Chair. Discussion at SCALE was about legislative updates and emergency
communications. The last meeting he attended was the school board meeting with discussion
regarding a survey of the community regarding a second high school. Cncl. Whiting stated he
opted out of the newspaper driveway drops. He stated that the information to opt out had been
on the city website at one time. He asked that it be put back on there.
Mayor Tabke had no report.
14. Other Business
14.A Closed Session to Discuss Real Estate Transaction
Clay/Schurman to move to closed session to discuss real estate transaction for property at 2°a and
Scott Street. Motion carried 5-0.
Mayor Tabke reconvened the meeting and stated no action was taken
15. Adiourn
Lehman/Whiting moved to adjourn to Tuesday, April 2, 2013 at 7:00 p.m. Motion carried 5-0.
Meeting ended at 10:52 p.m.
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/�Julie A. Linnihan
Finance Director/City Clerk
Kim Weckman
Recording Secretary