City Council Notes-May 15, 2012

A part of the OACCT's Public Policy efforts for 2012 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

1.4.1-3 Council accepted Daniel McIntosh’s resignation from the Airport Commission, approved Tom Harrison as new Airport Commissioner, and the mayor administered the oath of office to Tom Harrison

1.6 Council approved payment of city expenditures in the amount of $605,835.88

2 Consent Agenda; Council approved all items.

3.2.1 Bill Effertz, County Assessor, reviewed a list of properties, explained the difficulty of making some assessments, and advised that anyone with questions or seeking to appeal may do so at the June 14 County Board of Equalization meeting. Council approved the report.

3.2.3 Wells Fargo Bank requested a handicap parking stall be located in front of its business on East Broadway. The city will relocate a handicap parking stall along East Park Square, which is not in front of any businesses and will be used more if moved, to the Wells Fargo location. The new handicap stall will eliminate a 30-minute stall in front of the bank, and the previous handicap stall will become a 2-hour stall. The cost of changing the signage is minimal. Council approved this move.

3.4.1 Council approved moving the 4th Ward polling site from the fairgrounds to St. John’s Lutheran Church while the county fair is in session, so the 2012 Primary Election will not be disrupted. Council approved this move.


The agenda items may be found online at the following links:
http://ci.owatonna.mn.us/sites/default/files/documents/2011/01/Agenda%20Packet%202012-05-15%20%28Part%20A%29.pdf  (Items 1-2)

http://ci.owatonna.mn.us/sites/default/files/documents/2011/01/Agenda%20Packet%202012-05-15%20%28Part%20B%29.pdf  (Items under 3)

Filing Dates for Elected Officials Nearing

Have You Considered Running for Office?

Open seats and filing dates:

Steele County: Filing: May 22-June 5
County Commissioner for District 2 – Two year term
County Commissioner for District 3 – Four year term
County Commissioner for District 4 – Four year term
County Commissioner for District 5 – Four year term
File with the Steele County Auditor, 630 Florence Avenue, Owatonna


City of Owatonna: Filing: July 31 – August 14
Member at Large
Second Ward
Fourth Ward
Mayor
File at City Hall, City Clerk’s office, 540 West Hills Circle

School Board: Filing: July 31- August 14
Board of Director- Four year term
Board of Director- Four year term
Board of Director- Four year term
Board of Director-Two year term
File at the School District Office, 515 W. Bridge St., Owatonna


http://www.voiceforowatonna.org/voter-resources/state-officials/MN

Inspections/Building Dept Launches Website

http://www.ci.owatonna.mn.us/building-inspections

The City of Owatonna Building Inspections dept. has launched a new website and is looking forward to providing enhanced customer service and improved communication.

$13M County Public Works Project

Steele County is proposing a $13M new public works building.  Chamber members have been expressing many questions about the cost of this project.  The Chamber policy committee has asked many questions about the proposal and you can find the written answers at:  http://www.owatonna.org/pdf/countyshopquestions12.pdf.

Steele County Highway shop site plan.
Anticipated cost $13 M; anticipated move in date: August 2013

We appreciate the time taken so far by the county staff and commissioners to answer our questions.  The commissioners will be holding a public event on Tuesday, May 15th at 6:30 p.m. at the County Administration (630 Florence Ave) building to present information and answer more questions about the proposal.

A few of the questions/concerns we still have about this project:
-The overall cost of the project and its impact to tax payers
-Cost of maintaining the additional space
-How the new efficiencies equate to cost savings (i.e.-how much staff time will this save in an average year)

The commissioners have told us that they want to hear from you at their next meeting on May 15th.  Plan to join us for this important discussion.  This is information the commissioners will use prior to their vote on funding the highway complex at their June 12th meeting.

Click here for the presentation slides for the May 15th meeting.

Click here for site plan, rendition and building layout.

Chamber Questions Sent to County on Hwy. Building

The OACCT Public Policy committee recently sent pre-questions to the Steele County Commissioners regarding the proposed Highway Dept. building, scheduled for move in in August 2013.

To review the questions and written responses from Administrator Shea, click here.

Next, the Public Policy committee attended the County's Committee of the Whole meeting on May 8th to further clarify some of the responses and learn more about the project.

We appreciate Administrator Shea the Commissioner's time.

Chamber Questions County Hwy Building Costs

Chamber President Brad Meier asks the Steele County

Commissioners questions regarding the projected

$13M highway shop building

project.

The OACCT Public Policy committee and Chamber President Brad Meier attended the Steele County Commissioner's Committee of the Whole meeting on May 8th to find out why the projected costs of the proposed highway department shop is upwards of $13M.

County efficiency, space needs and FEMA money for the three flooded buildings on Hoffman Dr. were factors in the estimated cost of the project.

An internal and external space needs assessment was conducted, as well as a county equipment list was used to determine the square footage needed in a new facility.  These items were laid out with the architect for the most efficient use for operations.

Administrator Shea did clarify that the project budget was a factor, but the county needs assessment took priority.  Shea and Commissioners insisted that the proposed shop doesn't include any "wish list" items--it's strictly designed around need.

When asked if the county had a reserve account or money saved for this project, Shea explained that it's not the county's policy to reserve money. "It's been the policy of the board not to earmark money for future use-it's asking people today to pay for future use."

Commissioners were also asked if they could monetize the efficiencies the new shop would bring to the county. The answer was no, but that the soft benefits of time savings and  proper care of equipment would be impactful to residents when their road needed to be plowed in the winter and less equipment would need to be purchased since it was properly maintained.

The Commissioners are hosting a public open house on May 15th for residents to learn more about the project. A project timeline shows the county moving into the new shop August 2013. 

http://www.southernminn.com/owatonna_peoples_press/news/local/article_b444d5f4-a640-5e5f-b755-d9253052de81.html

Steele County Redistricting & Filing Info

Interested in running for County Commissioner in districts 2-5?  Not sure what district represents you?

Click here to review the newly redistricted lines for Steele County.

Click here to review the filing deadlines.

Click here to review elections boundary info.

Chamber Members Voice Business Legislative Issues

Chamber members discuss top business issues for the
2013 legislative session with
Jennifer Byers, MN Chamber of Commerce.

Numerous OACCT members, and other business leaders from the region, gathered to share input on business issues the Minnesota Chamber should focus on for the 2013 session.

Among the top issues: taxes and tax reform (business should be apart of the discussion); workforce issues (specifically soft/critical skill development); energy costs (less government involvement); healthcare; prevailing wage and the state departments managing details of the legislative action that is unclear and not consistent, which makes it difficult for businesses to comply.

Jennifer Byer is the vice president of grassroots and local chamber relations for the Minnesota Chamber of Commerce (jbyers@mnchamber.com).

Elected Officials Working on Sales Tax & Use Audit Issue

Letter from Representative Kath to Commissioner Frans asking
 about small business struggles with Sales Tax & Use  Audits

Recent responses from both Senator Parry and Representative Kath regarding struggles OACCT members are encountering with the MN Dept. of Revenue on Sales Tax & Use Audits are encouraging that we're being heard.

The OACCT waits anxiously to hear a response from the Dept. of Revenue or our elected officials.

Below are a couple of examples of how the sales tax and use audits effect us locally:


An example is an anonymous OACCT member sharing their experience as a local business accountant.
“…the big concern was the number of auditors the state had hired and the "return on investment" these new auditors were required to earn.  It seemed the state was putting more pressure on short term returns, for budget reasons, than long term compliance.  This put pressure on the auditors and their attitudes changed to a more aggressive and less forgiving attitude.”  

Another OACCT member, Ag Power Enterprises, recently went through this audit and felt confident to identify themselves and share their experience.
“The audit lacked a plan.  The auditor did not start by attempting to get an understanding of our business.  That ultimately resulted in him missing huge segments of the business transactions.  His sampling techniques were random.  The documentation said he wanted to look at changed several times over the audit, so his effectiveness at uncovering problems was poor.


There seemed to be several good learning opportunities but he just dropped them.  The audit report at the end of the audit was strictly a justification for applying our percentage of shortage from one or two months to the entire 27 month audit period.  There should have been a narrative report that articulated our shortcomings so that we have a plan of improvement.  That seems like a missed opportunity and points to a more punitive posture than a teaching posture. 


We are pretty good at complying with sales tax rules at Ag Power, but even so, there are several complexities that have tripped us up.  There should be a process of giving a warning about an issue and then going back for a second audit that checks to see if the needed corrections have been made.  From my CPA experience, I would say that that process should especially be available for very small businesses.  Small business owners are jacks-of-all-trades and can easily miss sales tax rules.


Taxpayers deserve more professionalism and business friendly procedures out of the Department of Revenue.”
-David Allard, controller, Ag Power Enterprises

City Council Notes-May 1, 2012

A part of the OACCT's Public Policy efforts for 2012 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

The council meeting was mostly a report from Fire Chief Mike Johnson on how the department is running.  He stated that the efficiencies of the department has reduced the rate amount for home owners insurance.

Next major item was the rental agreement between Spectrum Pilot Services and airport to provide flight instruction and plane rental services.  The agreement states that Spectrum would pay $75.00 per month to rent office space and allow Spectrum hanger space when needed.  This is a one year lease and will re-evaluate this after the first year.

The balance of the meeting was spent on re-appointments to city boards and commissions recommendations.

12 County Partnership-Human Services

Proposed business model of
12 county/regional service distribution

OACCT members gathered to hear a draft proposal designed from 12 southeastern counties (organized by Accenture, hired with funds from the Bush Foundation) on delivering human services in a regional venue. These counties are leading a collaborative, cost-savings and cost-effective effort-the first of it's kind in Minnesota.

The newly conceptualized business model shows if services are combined to meet the demographic need an estimated $25-$40 million (10-15%) savings over a five year period could be realized per county and an estimated $50+ million total savings realized by federal, state and counties (combined) over a five year period.

Estimated savings if 12 county business model was implemented

Next steps include answering questions of governance (i.e. 1 county, 1 vote on the regional board), funding (where/how is money dispersed), locations of high touch services, and pay plan.

An upcoming meeting with all counties will determine if this conceptional model will push forward into reality.

Steele County Administrator Shea is supportive of the concept, but still wants to see "the devil in the details" ironed out before fully committing.

Is Your Business Being Treated Fairly When It Comes to Sales Tax?

Brad Meier, president/CEO
OACCT

Do you think it’s fair that an online retailer can sell the same product sitting in your store and not pay sales tax?  We don’t.

Internet sales have grown at a phenomenal rate and represent nearly 10% of all retail purchases.  Because a U.S. Supreme Court decision (before e-commerce existed), online-only retailers are not collecting sales tax from consumers at the point of sale

This deeply flawed and outdated system hurts small businesses that collect sales tax as required by law. This unfair tax advantage leads to less commerce at brick-and-mortar retailers that contribute to our state and communities.

There is a legislative ‘fix’ that could come at the end of the session.  We are advocating for e-fairness and requiring on-line retailers remit the same sales tax as our bricks and mortar retailers.

Highway 14-Will it ever become a four lane highway?

The MN Department of Transportation (MNDOT) is giving us enough red flags about the four lane completion of Highway 14 from Owatonna to Dodge Center that we are concerned it won’t be in their upcoming 20 year plan (to be released near the end of the year).

Can we count on State Funding for Highway 14 completion?
At a recent meeting in St. Paul where the MNDOT Commissioner Tom Sorel presented the departments vision for the future, it was clear they are planning to save the major road investments for congestion projects. They have strongly suggested they are not going to include the four-lane expansion of Highway 14 in this new plan.

They have also suggested highway expansion remains an option to address rush hour congestion.  This contradiction will lead to an unacceptable outcome for southern Minnesota.

Highway 14 remains one of the most dangerous rural roads in Minnesota.  Projected population and traffic growth along the corridor will only make this highway more dangerous in the future.

Four-lane expansion is the only solution that will address safety, mobility and traffic growth along Highway 14.  Many cheaper alternatives have already been exhausted; more will only make the situation worse.

How can I Help get Highway 14 completed?
We are not sitting idle.  We recently sent an alert out to all chamber members asking you to send a pre-written message to the Governor and our state representatives urging their support for having Highway 14 in the 20 year plan.

This pressure needs to remain to strengthen the message that Highway 14 as a 2 lane is not acceptable.
The Legislature should not abdicate such an important decision like this to MnDOT alone.  The Legislature needs to assert its right to oversee MnDOT before any final decision is made.

School Position Future Proposals

Mike Milstead, Ag Power Enterprises
OACCT Board Chair

The Owatonna School District is important to local business success by educating the future workforce, attracting new employees, and creating our future leaders.  The Owatonna Area Chamber of Commerce & Tourism (OACCT) Board of Directors would like to suggest increased involvement by the business community in the strategic efforts of the school district.

Chamber members know the recent decision to cut school programming is a major decision that will impact the district and community in multiple ways.  We believe that a clear plan that results in a safe, productive, and challenging environment will continue to produce the quality student for which Owatonna has come to be known.  Not being directly connected to the development of these recent proposals leaves us unqualified to advocate a position either way on behalf of our members regarding the validity of the proposal or the course of action that should be taken to resolve the budget crisis.

Chamber members have acknowledged the importance of the district’s plans and are requesting the Chamber’s agenda include sharing business input on current and future school district proposals.

We welcome an opportunity to share business expertise with school district officials to assist in resolving the challenges facing the district.

Committee member Mike Milstead is one of the owners of Ag Power Enterprises, which is building a new location on 18th St. SW.  The building is scheduled for completion late spring/early summer.