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HomeMy WebLinkAbout08/25/1992 TENTATIVE AGENDA SHAKOPEE, MINNESOTA COMMITTEE OF THE WHOLE AUGUST 25, 1992 Mayor Gary Laurent presiding 1] Roll Call at 7:00 P.M. 2] Approve Minutes of July 13, 1992 and August 11, 1992 3] Continue Discussion on 1993 Budget 4] Confirm Future Budget Worksessions: September 8th and/or 10th 5] Adjourn Dennis R. Kraft City Administrator OFFICIAL PROCEEDINGS OF THE SEAEOPEE CITY COUNCIL COMMITTEE OF THE WHOLE SHAEOPEE, MINNESOTA JULY 13, 1992 Mayor Laurent called the joint meeting with the Shakopee Public Utilities Commission to order at 7:00 p.m. , with Cncl. Lynch, Beard, Sweeney, and Vierling present. Present from the Shakopee Public Utilities Commission: Barry Kirchmeier, Terry O'Toole, Jim Cook, and Shakopee Public Utilities Manager, Lou VanHout. Also present from City staff: Dennis Kraft, City Admn. ; Lindberg Ekola, City Planner; and Dave Hutton, Public Works Director. Beard/Lynch moved to approve the agenda as amended with the additional items added, as requested by the Shakopee Public Utilities Commission (SPUC) : 14a) Downtown Undergrounding; 14b) Request for Site Condemnation; and 14c) Information on Non-lighting Services. Mayor Laurent read and presented Resolution No. 3615, A Resolution Commending the Shakopee Public Utilities Commission and Manager, Lou VanHout, to the Commission. President Kirchmeier stated it the responsibilities of the Shakopee Public Utilities to: 1) Supply electricity and water to the citizens of Shakopee at a reasonable cost; 2) Provide reliable modern facilities for electricity; and 3) Provide revenue to the City. Pres. Kirchmeier then gave a recap of SPUC' s 1991 activities. Pres. Kirchmeier stated there would be a modest increase in rates in the near future and added that the last rate increase had been in 1982 . He noted that the savings from the newly contracted utility company would not go into effect until the three-year notice to NSP had been presented. He added that with this new service, customers will experience fewer rate increases. The long term plans for SPUC were discussed. Pres. Kirchmeier stated that two extensive studies had been conducted; 1) Electric System Study; and 2) Comprehensive Water Plan. He stated that copies of these plans could be provided, upon request. Discussion was held on the SPUC policy to look at the watermains anytime the City does street reconstruction. Pres. Kirchmeier stated that with this plan, any watermains that need repairs are serviced to prevent future problems. Pres. Kirchmeier stated that SPUC will be in need of a new water tank. The City Admn. asked if SPUC had received a copy of the Metropolitan Council Water Plan. Mr. VanHout stated he did not remember seeing this information. The City Admn. questioned if this report was compatible with SPUC' s policies. Official Proceedings of the July 13 , 1992 Committee of the Whole Page -2- Discussion was held on the new electrical substation, which is planned to be located south on County Road 17. Mr. Cook stated that with this substation, if the power goes down, the City won't feel the affects. Pres. Kirchmeier stated that the projected cost for this project is $2, 154, 000 and scheduled for 1996. In conjunction with this project, the need for bonding in 1995 was discussed. Discussion was held on who pays for the costs incurred when a watermain system is upgraded. Mr. VanHout stated that the watermain construction costs pay for repairs up to the curb stop, the property owner is responsible for upgrading or reconstructing the remainder. Mr. VanHout added that if the City causes some damage to a residential service line while doing watermain reconstruction, SPUC does not have the customer pay for the repair up to the curb stop. Discussion was held on the SPUC contribution to the City, which the City Admn. noted is really a cash flow item. He asked if it were possible to increase the monthly payment to the City. Discussion was held. Pres. Kirchmeier stated he° had no problem with increasing the contribution as long as there would be some type of refund or credit to SPUC for any overpayment. The City Admn. and SPUC Manager will review the contribution formula and payment in a close-out method. Discussion was held on the recommendation by the Public Works Director/City Engineer that the sewer and water extension into a new subdivisions be 10 feet and not stop at 1 foot from the property line. The SPUC Manager stated this is the way it has always been done. He added that this was not necessarily correct, but it has been a consistent standard making it easier for all involved to establish utility locations. He added that he has to be concerned with the electrical system as well as the water system, but didn't have any real problem in moving it to 10 feet if that was the current consensus. Discussion was held. Pres. Kirchmeier stated this is an issue that should be reviewed by the SPUC Manager and the City Admn. The City Engineer added he would like to hear what other water utilities are doing. Discussion was held on the street lighting responsibilities. The City Admn. stated this subject has specifically been brought to his attention in reference to maintenance of the ornamental-type lighting. He stated a customer had been calling the City questioning when these repairs were going to be made and the City Official Proceedings of the July 13 , 1992 Committee of the Whole Page -3- was under the belief that this was the responsibility of the Shakopee Public Utilities. The SPUC Manager stated it was his understanding that the City was to replace the ornamental posts but they would do the maintenance of these posts. He added that since this is not a normal post held in SPUC inventory, it was his belief that the City was to retain the inventory. He added that this issue is worthy of continued discussion and review to prevent any mis-communications. The Committee suggested that the City Admn. and SPUC Manager meet and come up with a policy on the replacement and maintenance of the ornamental-type lighting posts. Comm. Cook stated that this issue does need some quick resolution because this has been an on-going problem between the Shakopee Public Utilities staff and City staff. Discussion was held on how to establish and maintain different types of lighting in inventory. The SPUC Manager stated that it makes no difference to them what type of lighting a developer wants in a subdivision as long as either the homeowners association or the developer keeps an inventory on their specific type of lighting posts. He added that this issue should definitely be further discussed in a meeting between City and SPUC staff. Comm. Beard stated he is in favor of the flexibility for different lighting and suggested if lighting is to be ornamental, this be included in the Developers Agreement whereby the developer must retain an inventory. Comm. Sweeney stated that this is really an administrative task and would like to see something in writing so it could be approved and become a policy. Comm. Lynch questioned who is responsible for subdivisions that have no lighting. Comm. Vierling responded by stating that in the past, street lighting was to be petitioned and assessed back for the initial cost. The City Admn. extended a compliment to SPUC from customers who have been very impressed that when the power does goes down, it comes back very quickly. The City Admn. stated that the joint arrangement between City staff and SPUC on vehicles seems to be working very well. He expressed to SPUC that if they had a need to sell or buy a vehicle, City Official Proceedings of the July 13, 1992 Committee of the Whole Page -4- staff should be notified as the City may be able to go through the Hennepin County contract for SPUC. The City Planner stated that the pre-application meeting process has been established, which gives the developer a chance to go over a lot of different concerns prior to formal application. He added that having a representative there from SPUC has really been helpful. Pres. Kirchmeier stated that a new employee has been hired by SPUC and one of their responsibilities is to interface with City staff. The Building Permit process was discussed. Mayor Laurent stated that several developers had mentioned to him the inconvenience of first having to go to the Shakopee Public Utilities office for one form and then the City Hall to complete the permit application. He asked if there wasn't a way to make this process a one-stop arrangement. The SPUC Manager stated that this process had originated approximately 10 years ago and for electrical or water reasons, the occupancy permit was not approved. He added that when they are notified of a pending building permit request, they can be sure than everything is in place. The SPUC Manager stated that this was a service being provided by them and was only to be advisory in nature to inform the City of what electrical and water services are available to a particular site. Pres. Kirchmeier stated he believes this is something that can easily be worked out. The SPUC Manager and City Admn. will review this issue to come up with a workable process. The City Engineer stated that developers from outside of Shakopee do not understand the inspection process and they have questioned if they are paying for double inspections. The SPUC Manager stated they do bill for inspection services and since the sewer and water don't always get put in at the same time, there often are two inspections, but he added that there should not be an extra cost. He added that he is willing to discuss this issue if it is really a problem. The City Engineer stated that the Commission may want to consider having someone out at a site on just a day-to-day basis since the City has to have someone on site at all times. He added this may help to defray costs. Discussion was held on application review deadlines and that since various departments all have to do the review, ample time has to be Official Proceedings of the July 13 , 1992 Committee of the Whole Page -5- given for these reviews and for the paper work associated with the reviews. The City Admn. stated that they are trying to do things efficiently and do it right, so if there are any areas where SPUC feels they are being slowed down, City staff would like to know about this. The City Admn. stated that the Finance Director had commented that some invoices are taking up to six months to get paid, and is suggesting a finance charge be implemented for delays. Comm. Cook stated that itemization and backup material is needed before they are able to approve payment. He requested that if anything can be done to make this research faster, perhaps hi- lighting some of the information, this would speed up the process. The City Engineer stated that this same situation occurs with City staff when they are presented with a SPUC invoice. He suggested better documentation from both staffs be provided to speed up this process. - Comm. Sweeney stated this is an issue to be resolved by the City Adorn. and the SPUC Manager. Pres. Kirchmeier presented a potential problem with doing undergrounding services in the downtown area. He stated that in some instances when the existing over ground services are adequate, it' s difficult to cost justify the underground services. He stated he is not sure how this will get handled when it comes to SPUC for a decision. Discussion was held. The City Engineer stated that staff has been meeting with the SPUC Manager to resolve this issue and at this point, they are proposing that all the costs be gathered together for undergrounding and then the various boards will determine their cost share and the balance will go back to the property owner to determine the assessments via the public hearing process. Pres. Kirchmeier stated that some sites will be needed for wells and water tanks and asked the Council to formally acquire these sites by the condemnation process. Discussion was held on whether or not the condemnation process is the best means of acquiring property in this instance. Comm. Sweeney stated that he believes it is not appropriate for a public body to purchase property, but better to use the condemnation process to prevent any potential for conflict of interest. Official Proceedings of the July 13 , 1992 Committee of the Whole Page -6- Discussion was held with Mayor Laurent voicing his opinion that sometimes a condemnation process gets to be more expensive. Pres. Kirchmeier stated that condemnation may be the best process for the sake of timeliness when specific site locations are needed. He added their request is really just for the City to be able to obtain the sites needed by SPUC in whatever manner it takes. The SPUC Manager stated that at times extra non-lighting work is done for the City. He added that it has been brought to his attention by residents that this could be a legal issue whereby the City should be contracting out for this service. He added he thought there was a new state law regarding this issue and perhaps the City Attorney could review this law to see if its applies. He added he has no problem with continuing to service the City in this fashion, as long as it is all legal. Discussion was held and the City Engineer stated that they do not want SPUC doing any of this work if the issue is one of a legal nature or becomes too controversial. The Committee of the Whole suggested getting an opinion from the City Attorney. Mayor Laurent asked if there was any other issues to be discussed. There were none. Remarks were made by both the members of the Committee of the Whole and members of the Shakopee Public Utilities Commission relative to improved working conditions and better cooperation that now exists between the two entities. Members of SPUC remarked they now feel a part of the City. The Committee of the Whole adjourned at 9: 10 p.m. J�ith S. Cox City Clerk Jane VanMaldeghem Recording Secretary OFFICIAL PROCEEDINGS OF THE COMMITTEE OF THE WHOLE Shakopee, Minnesota August 11, 1992 Mayor Laurent called the meeting to order at 7: 05 p.m. , with Cncl. Lynch, Vierling, Beard, and Sweeney present. Also present: Dennis Kraft, City Administrator; Karen Marty, City Attorney; Barry Stock, Assistant City Administrator; Judith Cox, City Clerk; Lindberg Ekola, City Planner; Gregg Voxland, Finance Director; Dave Hutton, Public Works Director; Tom Steininger, Police Chief; and Frank Ries, Fire Chief. Vierling/Beard moved to approve the meeting minutes of June 23 , 1992, and June 30, 1992 , as presented. Motion carried unanimously. The City Administrator gave the Committee three options available for the 1993 budget: 1) Retain the same dollar level as 1992 ; 2) Retain the same service level as 1992; and 3) Approve/revise division requests/recommendations for 1993 . The City Administrator stated that the purpose of this meeting is preliminary discussion on the 1993 budget in order for staff to receive further direction on how to proceed. The Finance Director reminded the Committee of the deadline dates for 1993 budget approval in order to get the budget adopted and levied. Discussion as held on the projected 1993 dollar revenue for Canterbury Downs. The consensus was to have this figure at $0. 00. Cncl. Sweeney stated that fiscal disparities for Canterbury Downs TIF District is currently being paid by the City as a whole. He suggested transferring the fiscal disparities payment to the Canterbury Downs district because if Canterbury Downs doesn't pay their taxes, the City as a whole will have to pay the fiscal disparities. Discussion was held. The Finance Director will come back to the Committee with answers to questions pertaining to the Canterbury Downs fiscal disparities contribution. Cncl. Sweeney questioned the cash flow "bump" that will be received from the Shakopee Public Utilities and if this has been taken into consideration for revenue projections in the 1993 budget proposal. The Finance Director stated this has not been accounted for in the proposed budget and explained why. Discussion was held on the school levy that has not been exercised to its fullest potential and how this may change if contributions are no longer received from Canterbury Downs and this may affect the 1993 budget. The Finance Director will research the impact to the City if the school district is forced to exercise full levy potential. Official Proceedings of the August 11, 1992 Committee of the Whole Page -2- Discussion was held on the dollar margin in the general fund balance and what the dollar amount would be if it were lowered to 25 percent. The Finance Director will bring back to the Committee the dollar figure in the fund balance and what percent it is over 25%. Discussion was held on the 1993 budget recommendations by each division. Council division discussion: The City Administrator stated that nothing new is being proposed or recommended for the 1993 budget. He added that the only place to increase may be in conference and/or convention fees. Cncl. Lynch and Cncl. Beard stated that as new members they saw the benefit in the seminars pertaining to Councilmembers and requested that the amount of $400 from 1992 be increased to $1, 000. Discussion was held. Cncl. Sweeney suggested these fees could be funded by a lowering of the salaries for the Councilmembers and proposed a 50 percent reduction in salaries. Discussion was held. The consensus was that the salaries may have to remain as they currently are in order for Councilmembers to qualify for P.E.R.A. Discussion was held on reevaluating the level of services to the residents of Shakopee vs. an increase in taxes. Staff to come back with a reasonable dollar figure in the Council division to achieve the goals of the City Council. Administration division discussion: The City Administrator stated that an increase of $41, 000 is recommended in order to fund a part time administrative assistant position, to purchase cable studio equipment, and fees for labor relations and professional services. Discussion was held on the cable access studio equipment. Clerk division discussion: The City Clerk stated that this budget varies from year-to-year dependent upon election costs. She added that in 1993 election costs would be down. Finance division discussion: The Finance Director stated that an increase of $34, 000 is being recommended. He stated this is for a an additional employee and proposed additional cost for a change in audit firms. Discussion was held on the proposed cost for the change in audit firms and how this cost could perhaps decrease with the inclusion of the additional staff person. Legal division discussion: The City Attorney stated that gross misdemeanor cases have increased her work load and that of her Official Proceedings of the August 11, 1992 Committee of the Whole Page -3- secretary. She stated that an increase of $22,000 is being proposed in order to add a part time secretary to staff, cost of a printer, cost for a zoning ordinance consultant, and a pay equity adjustment. Discussion was held on the gross misdemeanor cases being handled by the City Attorney. The City Attorney stated that in the past the City had contracted out with the County Attorney for these services, but that this is really the job responsibility of a City Attorney and the County is no longer willing to do them. The City Attorney stated that in order to get the zoning ordinance re-written quicker a consultant is needed. Discussion was held on using the Joint Prosecution (Scott Prosecution Association) for gross misdemeanors. Staff was directed to look into this option. Planning division discussion: The City Planner stated that the case load for the Planning Commission has increased over the past year. He stated that an increase of $71, 000 is recommended in order to fund five different studies: downtown, bypass noise, traffic control, east Shakopee transportation, and County Road 17 bypass. Discussion was held on the need for these studies. The City Planner will provide further information as to why these studies are being recommended. Discussion was held on checking out available staff from the Pollution Control Agency for helping prepare the noise standards. Discussion was held on limiting the number of items placed on the Planning Commission agenda and the possibility of going to two Planning Commission meetings per month. Discussion was held on a possible increase in fees for the Planning Department. The City Planner to research the possibility of an additional Planning Commission meeting per month. General government buildings division discussion: The Ass't City Administrator stated that an increase of $14 , 000 was being proposed, which was for library improvements. He added that this - - - particular area may need some amendments as he has not been able to sufficiently review the requirements of the ADA. Police division discussion: The Chief of Police stated they are proposing an increase of $48,880, which includes retaining the 19th officer, a Community Services Officer and the purchase of all requested capital departmental equipment. The Chief of Police stated that the capital equipment fund may have to be increased once the State changes the computer format. He stated he would also like to upgrade the civil defense sirens and Official Proceedings of the August 11, 1992 Committee of the Whole Page -4- purchase a PBT. He stated that one of their radar units is old and currently being repaired. Discussion was held on the proposed $2,500 for two mannequins. The Fire Chief stated they have two that could be made available to the Police Department; thus decreasing the proposed budget to $46, 880. The Chief of Police stated he would like to increase his staff from 18 officers to 19 officers. Discussion was held on the factors that would require an increase in Police staff especially if Canterbury Downs is no longer in existence. Staff to return with research done from other communities as to their number of officers. Discussion was held on the need for a code enforcement officer. Fire division discussion: The Fire Chief explained the recommendation for an increase of $594, 000, which includes the purchase of an aerial fire truck at $550,000 and the moving of the $29,000 ambulance costs to the Fire division from the unallocated division. He stated the increase in budget is also for five additional fire fighters at a cost of $3 , 000 each. Discussion was held on the need for extra firefighters due to the projected City growth. The Fire Chief to return to the Committee with further information on the need for additional firefighters. Discussion was held on the dollars that the City contributes to the firefighter's pension fund. Inspection division discussion: The Assistant City Administrator stated the cost is less due to two full time positions going to one full time position and a seasonal inspector. He added that this has not reduced services for the City. Engineering division discussion: The Public Works Director/City Engineer stated they are proposing an increase of $83 , 570 for additional staff for the Engineering Department. He stated the department needs to have a full time Secretary, an Assistant City Engineer, and an additional Engineering Technician and added that this was ranked in priority level. The Public Works Director suggested engineering fees go to a flat fee of 7.5 percent of project cost which will generate additional income. He reminded the Committee that the Engineering Department is a revenue-making department with 60 - 80 percent of budget recovered in fees. The Public Works Director stated that the Engineering Department is severely overloaded with the increase in City-wide projects. He suggested that the Council either fund for additional personnel or increase the budget to pay for additional consultant services. Official Proceedings of the August 11, 1992 Committee of the Whole Page -5- Discussion was held on consultant costs vs. using in-house personnel. The Public Works Director to research this and come back with more accurate figures for the hiring of additional personnel. Street division discussion: The Public Works Director stated that being proposed is an increase of $24,780, which includes an increase in overtime, additional maintenance worker, and increasing the budget from $75,000 in 1992 by $20, 000 for pavement preservation work. The Public Works Director explained the need for an additional maintenance worker. Shop division discussion: The Public Works Director stated the proposals in this division include an additional mechanic and the retention of the summer helper from 1992 . The Public Works Director explained the need for an additional mechanic stating that the current shop mechanic repairs the equipment for the Shakopee Public Utilities - and the Police Department. He added that his time is billed out, but it takes time to work on all the equipment from the various departments. Discussion was held on utilizing service garages vs. hiring an additional person. Park division discussion: The Public Works Director stated that they are proposing two summer employees for 1993 . Pool division discussion: The Ass't City Administrator stated that this budget is hard to determine but is proposing a minimum of $35, 000 for facility upgrading due to ADA, health codes and maintenance. The Ass't City Administrator stated that the pool needs to be brought up to ADA compliance, which will have a lot to do with the dollar figures for this division. He added that the pool concession stand does not meet code requirements, and once the inspector comes in to certify the pool area for ADA guidelines, they will require changes to the concession stand. Recreation division discussion: The Ass 't City Administrator stated this budget is very uncertain but currently they are looking at a reduction in program supervisor and receptionist to three- fourths time. He added he is considering no new programs and perhaps even program cuts. He added that any reduction in this division may possibly result in reduced services to the public and to various associations. The Ass't City Administrator stated that once all personnel are relocated to the new City Hall, this will give him better knowledge of the personnel needed. Official Proceedings of the August 11, 1992 Committee of the Whole Page -6- The City Council requested detailed memos from all department heads on budget increases over last year before any action can be made. Mayor Laurent commented on the success of the 1992 Derby Days and complimented the Ass't City Administrator for all his efforts. The meeting of the Committee of the Whole adjourned at 9:50 p.m. Ju¢4th S. Cox ( — Ci Clerk Jane VanMaldeghem Recording Secretary