County Meeting Notes: Dec. 17, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

• Approved purchase of new loader. 
• Approved Hwy 14 turn back settlement, more info to come Thursday(settlement release)
• 800 Mhz radio is conversion nearing completion, total cost around 2.5 million, Will also need fulltime county sheriff to service and operate.
• Approved levy of 2.44% increase or $20,435,170,
• Approved budget of 8.30% increase or $ 45,739,990
• Asked why with new moneys they still had increase in the levy,  Answer health care increases and the increase in wheelage tax was dedicated to the roads.(more documentation at meeting Thursday.)

County Board Notes-November 26, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

• Finance Department – Proposed a 2.44% Levy & 8.28% Overall Budget Increase for 2014
• Human Services – Hiring additional staff to handle workload
• Sheriff – Want to add a Sergeant to be the Radio System Manager for the  800 MHZ system for $66,000.00. So far the 800 MHZ system has cost the county just under 2.5 Million
• Court Appointed Attorney’s – Cost has increased because of a change in the system. They used to contract with one Attorney, but now use a “pool” of Attorney’s.
• Wheelage Tax – They are going to use this money for road improvements rather than tax reductions. #310,000.00
• Capital Budget Improvements – Looking to use $214,000.00 from Reserves & $440,000.00 from Budget for a total of $653,961.00.
• Visitor Phone Upgrades at Detention Center – They are looking to spend $63,000.00 to upgrade Visitor Phones at Detention Center to utilize SKYPE. This will also allow them to record conversations.
• All budgets have gone through Policy Committee’s
• Quick Claim Deed – The County is going to quick claim deed some right of way to 4 business located across from Grace’s Restaurant to the City so these businesses can get clear titles to their property
• Strategic Plan – They discussed their Strategic Plan a bit without detail and we can request a copy if we would like one.

City Council Notes-November 19, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

Tax Increment Financing District 3-6.  Modification to add another parcel of property that is owned by Viracon to TIF District 3-6.

Building permits for 2013, through October 31.  There were 11 permits for single family dwellings issued.  In 2012 we had 10.

New liquor license for Bump’s Bar (Carol Gowland) at the former Reno’s bar site on 18^th Street.

Owatonna Public Utilities Commission.  Request by OPU to increase the pay per month for the OPU commissioners.  Original request was for an additional $100.00 per month.  Council voted 5-2 to increase by $25 per month to new monthly amount of $125.  Previously the pay rate was $100 per month.  Budget impact for OPU will be about $1500 per year.

MN DOT office of Aeronautics grant purchase for John Deere Gator for airport use.  Total cost of $16300 of which $5433 will be paid by Owatonna.

Council Hearing for City Budget for 2014, hearing at Council Chambers before next Council meeting on December 3, at 6pm.  The budget will be adopted on December 17^th Council Meeting.

Adjourn 7:20 pm

County Meeting Notes-Nov. 12, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

Representative John Petersburg gave an anticipated session highlight with top issues, including minimum wage and bullying legislation. Bonding probably won't take place until next biennium (DMC-Rochester; county may look at bonding for Public Works Building) and transportation funding may not happen until 2015 session.

Highway 14 East Turnback-overall the agreement w/ county and MnDOT is close to being agreed upon with a few small details to be worked out (culvert expectation and repair, timeline for turn back  design agreements, property acquisition along Cty Rd 43). 

Septic Ordinance review-State updated requirements in 2008 w/ a few changes since. New rules need to be adopted into an ordinance by Feb. 14, 2014. Commissioners not positive if they'll accept the Transportation and Drainage Committee's recommendation to go back to the state requirement on inspection upon the addition of a "bedroom"; county currently requires the inspection for any home addition.

Senator Klobuchar has contacted Administrator Shea with news that FEMA has committed to an appeal decision within 3-4 weeks.

There will be one meeting in December (17th); January's meeting dates will be Jan. 7th and Jan. 28th.

There will be a joint meeting with the county, city and school district on Dec. 2nd at 4:30 PM at the Owatonna Arts Center.

Repeal the B2B Taxes-Sign the Petition!

Help us repeal the B2B taxes on 

1) storage and warehouse sales tax, 

2) sales tax on labor for repair and maintenance of business-related equipment and 

3) sales tax on telecommunication equipment purchases

County Board Notes, October 22, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

• Human Resources - Approved hire/Transfer of new employees.
• Finance - No Report
• Public Works Task Force
• Commissioner Bruce Kubicek led presentation, 
• Four of the 6 members of the public committee were present.  
• Task force made it clear that their recommendation was the option #4 with minor tweeks,(Veterans service van storage, make room for offices, external wash bay to add a little room inside)
• Received copies of final committee minutes which included all four options and price breakdowns.
• Received presentation given to the Noon Rotary.
• One Commissioner did not get the 7 mill max, heard option 4 with tweeks led to a 8 mill project and opt 2 was 9.5, they were close enough that he liked the opt 2.
• Current lease has been renewed for another 2 years.
• Some of the costs, included Prevailing wage
• Architect stated that we may have missed optimum building time as construction materials have gone up along with more contractors being busy.
• Board referred the building to the public works committee, probably should attend this meeting.
• Authorized Easement with State DOT for bridge work.
• Authorized agreement with Waseca County for sharing of Human Service Director
• Adopted Objectives and goals and are moving forward with a strategic plan.
• Had three resolutions, One being on entering into discussions with DOT on turn back agreement for Hwy 14 East.

City Council Notes-Oct. 15, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

Tax Increment Financing district No.6 created for Pillsbury property.
Brings educational facility back to Pillsbury campus with language school and Charter school.  Allows for 1,000,000 of tax increment to be used for the remodeling of buildings on campus.  Funds paid up front by developer, then recaptured with 4.75% interest until year 2041 or until paid off.   One local investor involved in project.
Development agreement with City of Owatonna and Pillsbury Intl Academy and E & A Ventures.  Two separate projects involving Fernbrook and Pillsbury Academy.


Resolution 96-13 Delinquent OPU accounts, allows to be collected with Real Estate taxes.

Brooktree settlement funds.  City to get 1,858,293 from DuPont settlement for trees damaged at Brooktree.  Funds to be used for tree removal and replacement and other improvements at Brooktree.

Rezone and vacate easements for property for Viracon expansion.

Changes in purchasing policy to clarify and better regulate purchases.


Please Note next Council meeting date changed to Monday November 4th, due to Levy vote on the 5th.

County Board Notes-Sept. 24, 2013

A part of the OACCT's Public Policy efforts for 2013 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 County Commissioners reviewed the Ag Society's lease, barn partnership request and loan contracts. Some small modifications need to be made to article five, but the contracts were expected to pass at the 7 PM meeting that night.

Help wanted: Throw your hat in ring for 2014 elections

By David C. Olson

The Minnesota Chamber of Commerce is recruiting candidates now to seek a legislative seat in the November 2014 elections. Please step forward, and we’ll guide and support you through the election process. Our pitch is sincere and straightforward. It’s more important than ever that we send men and women, Democrats and Republicans, to the Capitol who understand what it takes to run a business in today’s dynamic economy.

Why the urgency? Witness the legacy of the 2013 Legislature. The session kicked off with a common theme of jobs. Yet the gavel closed one of the most bruising and challenging sessions for Minnesota employers and their employees. We ask you to join the Minnesota Chamber and our statewide network of local chambers to place a priority on electing pro-business individuals to the Minnesota House in 2014. We’re working on many fronts to build relationships with existing legislators as well as to identify pro-business candidates.

Here are a few ways you can help.
Offer personal tours of your business: Think about leaders in your community who understand what it’s like to operate a business, and encourage them to run for the Legislature. Invite candidates and legislators to your facility, whether you are a large manufacturer or have three employees. Seeing your business and your employees in action is a great way to educate policy-makers on the issues you face and your value to your community and Minnesota.

Communicate with your workers: Communicate with employees about the key issues that face your company and their paychecks. Do what works best for you, whether it’s including information in newsletters or conducting an information session over lunch hour. Then encourage and allow individuals to run for office if you can make it work for your businesses.

Support pro-business candidates: Seeking elective office can be a daunting task, especially for political newcomers. You can support candidate efforts in a variety of ways – from knocking on doors or writing a letter to the local newspaper to introducing them to other key business leaders or writing a check to their campaigns.

The Minnesota Chamber has a skilled team that works diligently at managing the risks that legislative decisions pose to you. Our ultimate success, however, depends on the individuals who cast the “yes” and “no” votes. Our work for the 2014 elections begins with targeting individuals who can bring their business acumen to St. Paul.

There’s no better place to identify candidates than within our working ranks. While we acknowledge the challenge for employers and employees alike with the time demands of today’s Legislature, we must make electing pro-business candidates a higher priority. The results of the 2013 session speak for themselves. Minnesota cannot afford more sessions like the one we just had.

David Olson is president of the Minnesota Chamber of Commerce – www.mnchamber.com.

OACCT Board of Directors Endorse School's Operating Levy

The OACCT Board of Directors is supporting the passage of the School District’s operating levy this fall.

A recent OACCT member survey, initiated by the OACCT Public Policy committee (chaired by Dr. Mike Peterson-McGregor Chiropractic), indicated support of Owatonna schools and support of the passage of the operating levy.

Reasoning behind this support stems from a great need for high quality preK-12 education in our community, focused on developing our future workforce.  Also, quality schools play into economic development and business growth of the area.

Additional rationale for this support was the fact that the additional $1.8 million requested will be used for financial stability and reaching learning and academic goals. If approved, the levy will be renewed for an additional seven years.  An additional reason for support includes the current Owatonna Public Schools operating levy of $3.9 million will expire in 2016 and hasn't been adjusted for inflation and is losing $1 million per year in purchasing power.

•Financial Status:
--The district’s current underlying rating, as issued by Moody’s Investors in April 2013 is Aa3 and is Moody’s upper 90th percentile of all school districts in MN.
--In the fall of 2012, the district refunded its existing debt of $8,690,000.  By refunding this debt at a lower interest rate local property owners will experience a savings of  $568,274 over the next four years.  The expense related to interest payments during this same period will be $237,975. If the district’s credit rating decreased by one notch, expense related to interest would be an additional $32,000.  A decrease of two notches in the credit rating would increase interest cost by $70,000.
--The state legislature has an additional $400,000 of funds to award the Owatonna Public School District if the levy passes or will be given to another district if the levy fails

• The Cost of Unfunded Mandates:
--The federal dollars come into the district in the form of Title VI – B.  Depending on the size of the district, and the year, these federal dollars could account for up to 50%  of the district’s total for all traditional federal aids and grants.  For a district like Owatonna, these numbers would be approximately $1.0 million and $3.0 million respectively.
--Around 1980 when IDEA became law, the federal government indicated it would fund 40% of all the costs related to the implementation of IDEA.  Today, that support is  actually about 19 percent.

• In 2004, the total levy (including bonded debt, operating levy, community ed, etc.) the board authorized that year was $7.536 million. The total levy the School Board will preliminarily authorize on will be $7.529 million--less than 9 years ago.

“The upcoming school levy is important to our school district. The cost of compliance with the unfunded and underfunded mandates from both the state and the federal governments create a tremendous hardship on our district. Combine that with the ever-increasing importance that quality public education plays in economic development and this becomes an issue we cannot afford to ignore.” Bill Owens, United Prairie Bank/OACCT Public Policy Committee

County Board Notes-Sept. 17, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

Council reviewed and approved multiple actions and resolutions, including: licenses and permits for an on-sale with Sunday liquor license application for Agave Azul restaurant, 369 18th St. SE; move forward with applying for the Legacy Grant application for asphalt paving of the trail from North St. to 26th ST.; a 50/50 cost split with homeowner for a retaining wall replacement at 304 Lemond Rd; awarded bids for the 2013 Sanitary Sewer Lining project; set a date for the public hearing for utility liens; declared cost and order prep of 2013 mowing of weeds, grasses and other harmful vegetation and public hearing date of topic at October 15th council meeting.

City staff also responded to public comment concerns of the Charter cable contract and little movement with getting competitive bids for service (current contract has expired; in negotiations with Jaguar Communications and an October franchise meeting has been set). 

Meeting adjourned at 8 PM. 

School Operating Levy Survey Results

Recently the OACCT sent out a survey to the membership regarding the Owatonna School District's upcoming fall operating levy.  Below is a link to a summary of the results; an 18% response rate was garnered. The OACCT Public Policy committee will be reviewing the responses and discussing best approaches with this topic.

http://www.owatonna.org/pdf/2013 School Operating Levy Survey Memo.pdf

Here is link the the Owatonna School Districts Fact sheet: http://www.owatonna.org/pdf/DistrictLevy13.pdf

Congressman Walz in Owatonna-Hwy 14 needs to be in MnDOT 20 Year Plan

Owatonna Mayor Tom Kuntz describes the importance of Highway 14
being in MnDOT's 20 year plan. Federal dollars
will be virtually non-existent if the project's not included in the plan.
The recent announcement that TIGER grant dollars will not
be used for this project is a glaring example of how, federally,
the Congressman's hands are tied if the state won't support the
highway project by placing it in the 20 year plan.

 Congressman Walz stopped in Owatonna as a part of a three-community press conference centering around the importance of including Highway 14 in MnDOT's 20-Year Plan.

Lack of the highway in the 20 year plan limits the ability of Congressman Walz to direct federal resources toward Highway 14, which is frustrating when it comes to competing for future funds.

Let Commissioner Zelle with MnDOT and Governor Dayton know how important it is to get Highway 14 put in the 20 year plan!

OACCT President/CEO Jennifer Libby describes how
businesses are effected by the incomplete Highway 14; the
unfinished road creates economic impact concerns as well
as safety issues.

County Board Notes-Sept. 10, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

County Commissioners reviewed CSAH 34 (26th St.) & Landmark Drive access agreement. The developer's engineer is proposing a 3/4 access at this intersection after reviewing the Gap Analysis Study. Three scenarios were presented to accomplish this.  Commissioners seemed concerned that the south side (not currently in development) would encounter the same situation once efforts were made to develop and are concerned with having to address this same situation in a few years. The County Engineer and Commissioners will review.

County staff reviewed the preliminary levy amount of 5.01% (can go down once set, but can't be raised) and an overall 8.56% total budget increase for 2014. Commissioners learned of budget details and were to vote at the 7 PM meeting on the preliminary levy amount (expected to be less than the 5.01%).

Chamber Applauds City's 0% Levy Efforts

A recent letter of support of a 0% levy was shared with City Officials. OACCT President Jennifer Libby stated, “We applaud the fiscally conservative suggestion that you have taken in looking at this,” Libby said. “As the voice of over 580 members, we understand the rigor it takes to come forward with this kind of recommendation and the decisions that have to be made to be effective going forward without compromising the infrastructure, but we want to make sure that you hear our support.”

August 16, 2013

Dear City Council Member:

As an active participant of the City budget process over the last several years, the Owatonna Area Chamber of Commerce & Tourism (OACCT), representing more than 580 businesses, is pleased that the City target levy amount is set to remain at 0% increase from 2013 to 2014.  We applaud your fiscally conservative choice with tax payer contributions as you realize a 3.4% increase in LGA funding in 2014.  We value your partnership in representing a fiscally aware and conscious perspective to our community.

The OACCT would also like to commend your results in reducing personnel costs from 72% of the budget in 2008 to the projected 68% in 2014.  The business community can appreciate the actions that have been put in place that yield budget reductions results like these such as attention to detail, careful planning, living with the budget’s means and creating efficiencies.    We will be informing our membership of these disciplined choices.

The goal of the Chamber has been and continues to be an engaged voice in the budgeting process of the City.  We believe that transparency, efficiency and broad vision are key components of the budget process and the business community needs to share that responsibility for improving Owatonna. We encourage your utilization of the “central garage” concept, continuing to streamline processes and budgeting with less dependency on the volatility of government dollars like LGA.

If our organization can ever be of assistance, please do not hesitate to contact us.

City Council Notes-September 3, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

-New 3.2% Liquor license for Aldi Foods

-On Sale liquor license for the new Italian Restaurant, “Andiamo”

-Airport Land Lease with Airport and Walser Automotive, to lease approximately   0.4 acres for auto display on airport property at a cost of approximately $4427.00 per year.

-Approve work order for Master Plan at airport for total cost up to $187,400.00 of which the City of Owatonna would pay 10% of cost.

-Agreement with ISD761 for Community Service officers in School

-Final Plat of Pillsbury First Addition

-Proposed Levy for 2014 Budget, Levy Amount 9,697,265 for City Levy, and 120,000 for HRA Levy.  Total City Budget of $23,872,821 proposed for 2014.  The final Budget decision will be made in December.

-Second Reading to rezone Pillsbury property from R-3 single and two family residential to PUD, Planned Unit Development.

-Owatonna Arts Center addition, reject bids and return bond monies to bidders, because bids exceeded funds available.

First Council Meeting in November , meeting date has been changed.

-Jennifer Libby, on behalf of Owatonna Chamber spoke during Public Comments section of meeting, expressing support of Chamber for a zero percent increase in the Levy for 2014 budget.

-Meeting Adjourned 7:40 pm

City Council Notes-August 20, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

-Mayoral Proclamation for Owatonna Senior Center Month for September and Sept 19, 2013 as Owatonna Senior Center Day in honor of the 25th anniversary of SeniorPlace.

-Public hearing and resolution passed on receiving $400k grant on Viracon expansion project for equipment

-consent agenda passed with no discussion

-rezoning approved for Pillsbury College development.  Council expressed concern about reading about this first in the newspaper.  Public hearing planned to consider TIF for this project.

-Sidewalk project between Hoffman and Frontage rd rejected since lowest bid came in significantly higher than engineer's estimates.  Project to be re-bid in the Spring of 2014.

County Board Notes-August 27, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

County Commissioners toured the Steele County Landfill, learned of services and saw the new cells D&E (cells expected to accept about 10 years of garbage). The hauler market is very competitive and Steele County does receive some waste from surrounding counties for a fee; fees help the landfill to pay expenses and helps to keep their rates competitive.

The county will need to start planning next steps with expansion/land acquisition in the next 5-10 years to meet future waste needs (at current fill rate an approximate 20 year capacity is expected).  

The landfill realizes 33,000 tons of waste in the landfill per year (a total of 70,000 tons, but approximately 40,000 is recyclable). About 600-700 appliances are received; about 500 electronics; 1,500-2,000 tires/yr and approximately 33 tons of scrap metal is received a year.

Residents can bring out waste oil and used oil filters for recycling at no cost, as well as bring out household cleaners, paints, stains, etc. to be recycled and reused (you can shop for free). 

MnDOT District 6 Safety Audit Report/Highway 14

Highway 14 Partnership members:

First, thanks to all who attended today’s presentation on the Owatonna-Dodge Center Safety Audit.  We had a good turnout with both business and local government attendees, which is important to demonstrating to MnDOT that completing this highway is a broad, regional priority.

MnDOT does not yet have the Safety Audit Report finalized, nor were any handouts distributed today.  The Department will be posting the Report and today’s PowerPoint online in the relatively near future, at which point they will notify me and I will send you the link to the materials.  I will provide a brief summary of the topics covered until that point:

To compile the Safety Audit, a team of independent reviewers used 2007-11 crash data, meetings with MnDOT District 6 staff and Highway 14 stakeholders, and field observance of the corridor.  The project was broken into segments and each intersection was reviewed.  Traffic was observed both in the morning and evening hours.

Traffic patterns include a high degree of commercial and agricultural vehicles, commuter use, the use of the highway as a connector between Rochester and Mankato, and a 7500 ADT.

Since there is no identified completion date for the four lane expansion of this project, the purpose of this safety audit was to look for short and medium term safety solutions.  A mill and overlay project of the segment is scheduled for 2015, so it is possible that some of the Safety Audit recommendations could be implemented at that time.

Safety issues identified in meetings included:  speed, commercial traffic (15% of volume, which is high compared to other rural two-lane highways), limited passing opportunities, snow removal, railroad crossing near 54th Ave SE, and lack of notice of four to two lane transition.

Traffic data shows that this segment of Highway 14 has a crash rate and severity rate less than the statewide average (using 2007-11 data) in comparison to both expressways and two lane rural highways with 5-8000 ADT.  The segment has a similar severe crash rating to the statewide average.  There were three severe and two fatal crashes from 2007-11.

The most common type of crash is head-on.  Most crashes are related to driver negligence or speed.  2/3rds of segment crashes were in the winter.  Most crashes occur in the evening.  Seatbelt use is high on the corridor.  There is a low crash rate at intersections, since most are at right angles.

The Safety Audit Team issued the following recommendations to MnDOT District 6:
• Centerline rumble striping
• Centerline buffer zone (widen distance between the two lanes, add two stripes, possibly add delineators to make a no-passing zone)
• Add passing lanes
• Improve winter maintenance (increase plowing, add vegetative snow fence to prevent drifting)
• Conduct a speed study (to consider increasing segment speed limit to 60 mph)
• Update the railroad crossing

The following intersection improvements were issued:
• Add turn lanes or bypass lanes at four leg intersections
• Increase sign size  and/or add “stop ahead” signs to side roads
• Add stop bars or “stop ahead” pavement markings to side roads

Specific recommendations for portions of the project:
• Additional signing on east and west end noting drop from four lane to two lane
• Change the lane drop from the left to right lane (to reflect standard practice)
• Additional lighting at 54th Ave SE and railroad tracks
• Bump sign at 54th Ave SE
• Coordinate rail crossing improvements with MnDOT Rail Office
• Right turn lane at CSAH 1
• Centerline rumble strips/stripes at US 14/CSAH 1
• Left turn lane at CSAH 3
• Left turn lane at southbound CSAH 5

Following the presentation, there was some discussion with the Audit Team.  Some attendees expressed concern with potentially increasing the speed limit.  MnDOT noted that the safest option tends to be setting the speed limit at the level most drivers feel comfortable driving.  They said the Audit is not recommending a speed limit increase, just that the District consider a speed limit study of the segment.

Other attendees noted that it tends to be the heavy commercial traffic that slows down speeds, so perhaps increasing the speed limit would be a good idea because many commercial vehicles are required to drive at posted speeds.

Some members questioned whether it was worthwhile from a cost-benefit standpoint to implement short or medium term solutions rather than fund the four lane expansion.  The Audit team reiterated that there charge was simply to identify potential short and medium term safety solutions, but it would be up to District 6 to determine the best path forward.

Members asked when District 6 would be making decisions on implementing the recommendations.  Greg Paulson, District 6 Assistant Engineer said improving the striping is something that could be done yet this year.  More significant investments, like passing lanes or buffer zones would have to be analyzed for their cost/benefit.  He noted that there are several items out there now with the project that could impact options.  The District submitted a TIGER grant application for federal funding to begin the expansion for the first 2.5 miles east of Owatonna, and grant awards are expected to be named this fall.

Paulson also noted that the $300m in Corridors of Commerce program funding criteria are currently being put together and information on the process to acquire these funds will likely be released this fall or winter.  The District would need about $100m for the Owatonna-Dodge Center project.  There’s a lot of competition statewide for the $300m, so he assumes Highway 14 can maybe get some, but probably not all, of those funds.

Paulson said that with the TIGER grant and Corridors of Commerce out there, those could impact the Safety Audit options and there will likely not be one set decision time on what options will be implemented.  The District will review the Safety Audit report and prioritize the recommendations and consider what they can/should do now and what they might do in conjunction with the 2015 mill/overlay.  Decisions on the bigger items won’t be made until fall or winter.  Updates will be posted to the Owatonna-Dodge Center project website.

Overall, I think there was a thoughtful discussion of the safety concerns.  It’s also clear that District 6 is hopeful that they can receive TIGER grant or Corridors of Commerce funding to begin the four lane expansion.  I was pleased to see they won’t be making any hasty decisions and they want to see how these funding options unfold.   I’m very excited to see how the next few months unfold for Highway 14!  I will keep everyone updated with the Safety Audit documents and any announcements about funding.

Thank you,


Amanda Duerr, Lobbyist
Flaherty & Hood, P.A.
525 Park Street, Suite 470
St. Paul, MN  55103
Direct Dial: 651-259-1928
Cell: 651-208-2815
acduerr@flaherty-hood.com

City Council Notes-August 5, 2013

Utility change orders for work in progress for 2014 on several projects.

Owatonna got a 500,000 grant from DNR to purchase properties in floodplain.  Two properties on Lemond Road will be purchased for 160,000 at 215 & 223 Lemond Road.  The City will then own and maintain the property after the removal of the houses.

Mountain Bike trail in Kaplan’s woods is proposed. 

MN Investment Fund grant for Viracon project, set hearing for August 20

Coffee with Council Saturday of Fair, Saturday August 17 at 9am, Aurora Diner.

From Budget Planning Session (6 PM):  As of now the target Levy amount is set to remain at zero increase from 2013 to 2014, however the City is anticipating an additional 782,000 from LGA.  Governmental Funds budgeted for 2014 at 19,416,038 compared to 2013 at 18,781,005 or a 3.4% increase. 

Comparing 2008 to 2014 budget, the City was able to reduce personnel costs from 11,599,348 to 11251939, or reduction from 72% of budget to 68% of budget.

September 3, adopt proposed 2014 budget and set date for public hearing

Future budget workshops listed in presentation, all at Council Chambers at 5:30pm.

We tip our hat to existing businesses, too

We tip our hat to existing businesses, too

By David C. Olson

A newsletter from the Minnesota Department of Employment and Economic Development declared “jobs” as “the big winner” this legislative session: “DEED is thrilled that the Minnesota Legislature approved (and Gov. Dayton signed) more than $95 million in economic development funding along with tax incentives that will help businesses expand and create jobs.”

From my perspective, the Legislature’s first priority should be to make our business climate more competitive for all businesses. I find it troubling that while providing incentives to a few specific businesses, this same Legislature raised taxes and fees by $2.3 billion, much of which will fall on businesses statewide.

The Minnesota Chamber of Commerce and our statewide network of local partners work tirelessly to strengthen the business environment for all types and sizes of companies no matter where they are located. That is what our team of lobbyists did at the Capitol every day during the 2013 session.  That work is also at the heart of Grow Minnesota!, our distinctive private-sector initiative dedicated to helping businesses stay and expand in our communities.

Grow Minnesota! recently celebrated its 10th anniversary. With 60 local chamber partners, our 10-year partnership has resulted in face-to-face conversations with well over 7,000 Minnesota companies and provided direct assistance to more than 1,000 businesses. Our retention efforts have protected close to 15,000 jobs. Our portfolio of company profiles identifies business challenges and trends that help shape and support the Minnesota Chamber’s public policy agenda at the Capitol.

We welcome all partners, private and public, in developing Minnesota’s economy. It takes hard work. We won’t be successful unless we pay as much, or even more, attention to existing businesses as we do to offering incentives to companies to relocate or expand in Minnesota. Bottom-line dividends depend on checking in regularly with local business owners and managers.

Legislative leaders are quick to promote this year’s economic develop0ment package as an investment in the economy and Minnesota’s future – but we remind policy-makers to not lose sight of the cumulative impact of their actions on the businesses that already line our main streets, commercial districts and industrial parks.

Business retention is painstaking work. However, these last 10 years have proven at least two things: First, that it is critical to the development of our economy and job growth; and, second, that the work of programs like Grow Minnesota! is more important than ever.  We need to reach more Minnesota businesses – always thanking them for being here and helping them stay and grow in Minnesota. 

David Olson is president of the Minnesota Chamber of Commerce – www.mnchamber.com.

County Board Notes-July 23, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

-Board appointed Ed Nelson as Steele County Trails Administrator

-Public hearing was held with regard to some county street projects, primarily the turning back of CR111 to a gravel road, there were multiple questions on the wisdom of this change.   City of Medford, Blooming Prairie and Owatonna presented information to be considered in their 5 yr. CIP.  The city of Owatonna has multiple projects/repairs they would like considered should funding become available.  

-Board noted they have 7 open employee postions

-Board discussed plan for HR dept. and ultimately an HR director

-Awarded contracts to paint the Hope School, Community Center HVAC project, basement/dryland training at Four Seasons and replace chairs at the Four Seasons

-The board was presented with informationa from the Association of MN Counties citing the passage of wheelage taxes by all surrounding counties and they approved one as well, with little discussion.

-County  awarded contract for Engineering for CSAH 12 in Medford for redesign

-Awarded contract for Dane Rd. bridge approach repair

-County planning to take over maintenance of county parking lots including plowing, striping and seal coating

-Board approved the Hold Harmless agreement for the Chamber for Arts in the Park

-County Attorney highlighted the positive BCA report citing our low crime rate and high case clearance rate

Task Force requests two more construction alternatives

Press Release:
Owatonna – The Steele County Public Works Service Center Task Force has asked the project’s architect
and construction manager to bring back two additional plans for review at its next meeting, Aug. 27.
The group met July 18 and saw two other revised plans: a plan estimating complete project cost of $10.1
million and one coming in at $8.3 million, both down from the $13.6 million plan of 2012.

The private citizen members continued to press for a design that costs $7 million – a project cost they
say is palatable to the community – as well as a design that simplifies the building to a square box.
The task force has been meeting since January to identify a satisfying solution to current and long-term
highway department facility needs. In fall 2012, the County Board tabled a vote to build a $13 million
new facility on Crane Creek Road/old Highway 14 after the project ran into criticism from business and
private citizens questioning the cost and scope of the project. The county has been leasing temporary
facilities since the September 2010 flood left its 40-year-home on Hoffman Drive uninhabitable.
Earlier this summer, the task force recommended building new on its Crane Creek property, when cost
estimates on remodeling two other existing buildings proved inefficient.

Present at Thursday’s meeting were private citizens Margaret Michaletz, Jim Schafer, Steve Kath, Matt
Durand and Tony Louris, county commissioners Bruce Kubicek and James “Corky” Ebeling, city council
member Greg Schultz, county and city staff representatives and Deb Brandwick from Oertel Architects
and Scott Quiring of Amcon Construction Management.

The group is asking for a $7 million project mainly to see if it’s even feasible, as most task force
members seemed to agree that the $8 million proposal would not satisfy county needs. For Kath, the
project should have a budget and the highway department has to figure out what it can get for the
money, a position he has championed at every meeting. Commissioner and task force chair Kubicek saw
it a different way: “What do we do when we end up with a building we can’t use? By giving us a number,
you’re telling us what to put in it.”

A scaled-back project would mean the highway department would have to give up what staff perceives
as operational efficiencies, including office space sufficient to house all staff, Kubicek and county
engineer Anita Benson said.

Other options in the less expensive models include: trading out preformed concrete walls for metal in
the vehicle storage area; eliminating the veteran’s service parking, reducing maintenance areas,
eliminating emergency management and sheriff’s department storage, reducing office space and other
parking. The entire developed site would go from 28 acres down to 17 and would move the sand and
salt storage closer to Colonial Manor, creating more noise for residents.
Members also discussed that the new site should replace the functions of the Hoffman Drive location, at
least. “$7 million might not get us there,” Louris added.

The task force will review two new plans in August and may forward a building recommendation to the
county board at that time.

In related news, county Administrator Tom Shea updated the task force on a request for FEMA money.
The county’s paperwork is in Washington, D.C., where it awaits a positive or negative ruling on its
second appeal phase. Shea has asked Gov. Mark Dayton, U.S. Sens. Amy Klobuchar and Al Franken and
Congressman Tim Walz to help speed up the process. The county cannot start on any project until it has
FEMA’s yes or no, Shea noted.

The one year delay has increased the cost of the project by more than $1 million so far, according to
Shea. He emphasized the importance of getting a decision from FEMA as soon as possible. “The
compounding effect of lease payments, inefficient operations at the temporary facility, increased
interest rates, and inflation of construction costs for a new building are increasing daily,” Shea said.
So completing the task force work and moving on to final design phase is very important, Kubicek said.
The county wants to move dirt as soon as it hears FEMA’s decision, he added.

City Council Notes-July 16, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

-Mayor recognized and awarded plaques for a successful Senior Games event

-Presentation and motion to award Bonds for various street, sewer and equipment purchase/projects. The rates and terms are favorable and we have maintained a Aa2 rating w/ Moodys

-We were given a legislative update which highlighted the expected stability of LGA, but there will be necessary fine tuning of the formula in the future

-Consent agenda passed without issue

-The Steele Co. Safe and Drug Free Coalition presented us with proposed changes to our policy regarding smoking in city parks.   This proposal was met with concerns over no real enforcement, inconsistency in policy application and signage concerns.  There was a motion passed to send it back to Park & Rec. to review and make some changes for possible future consideration.

-Personnel policy was updated to eliminate a program to purchase computers for city employees and allow them to reimburse the city with payments withheld from their paychecks.  This change was suggested by our auditor as it is uses public funds to essentially offer no interest loans to employees and is not a prudent use of public funds.

-There was also a resolution to bring some needed road repairs to the county's attention as they finalize their 5 year capital improvement plan.  These are county maintained roads within the city.

City Council Notes-July 2, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

6:00 pm Study Session
City of Owatonna discussed options for the increase in LGA funds, an additional $794881.00 is expected from the State of Minnesota.  The general consensus of the Council and Mayor was to use the funds for a conservative one time type of use.  Some ideas exchanged were seal coating and overlay of streets, update the GIS system, roof at West Hills, and library carpets.   Pay for elected officials was not discussed at this meeting.

7:00 pm Council meeting

Hearing for special assessments tabled until further notice

Settlement agreement with DuPont for damaged trees at golf course was presented by City Attorney Mark Walbran.  The City to get $1,858,293.00 from DuPont, plus DuPont will remove trees at DuPont’s cost.

2nd Reading for Food vending and Food vending vehicles ordinance change.

2nd Reading on sewer rate increase.  It is estimated that the rate increase will generate an additional one million dollars per year for the sewer fund.  Per the City memo “Sanitary sewer rates have not increased since 2004….The Sewer fund has been losing money the past few years and additional investment is needed in the collection system.  The proposed rate increase will cover the expected losses and initiate additional expenditure for rehabilitation of the collection system.

Meeting adjourned 7:25

County Board Notes-June 25, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

County Commissioners reviewed 26th Street Access Agreement Amendment from City Council (no major changes to agreement).

SDA (Health & Human Services redesign efforts): Mower County voted not to participate in SDA; Waseca County will vote next week. Remaining interested counties will have to review and discuss options to SDA before moving forward further.

Help Repeal B2B Taxes

Business to business taxes in 2013 session

The Minnesota Chamber was successful in defeating over $3.6 billion in new business to business taxes proposed in Governor Dayton’s original budget that would have extended the sales tax to virtually all business transactions including advertising, accounting, legal, repair, architectural, engineering, graphic design, management consulting, marketing, scientific research and development, security, computer services, plus many other management and consulting services.   Unfortunately, three new business to business transactions were included in the final 2013 omnibus tax bill.  These new B2B taxes were insisted upon in the final deal by Senate DFL Majority Leader Bakk and agreed to by Governor Dayton and House DFL Speaker Thissen.  These new taxes will result in tax increases of $314 million in FY 14/15 and $449 million in FY 16/17.

 The three new business to business transactions now taxable in Minnesota are as follows:   

·         Labor service charges for repair and maintenance of business equipment effective July 1, 2013.  This will raise $152 million in FY 14/15.

·         Purchases of telecommunications equipment by telecommunications providers effective July 1, 2013.  This will raise $66 million in FY 14/15.

·         Storage and warehousing services of business related goods effective April 1, 2014.  This will raise $95 million in FY 14/15.

The new B2B taxes do not apply if it is a service done by an employee or by an affiliated company.  The new sales tax is the state rate of 6.875% plus any local sales tax.

The Minnesota Chamber opposed these new B2B taxes and strongly advocated against their inclusion in the 2013 session.  We will advocate for repeal of these taxes in the 2014 session as the new B2B taxes will:

·         Result in extreme competitive disadvantage for businesses impacted by this new fixed cost of doing business in Minnesota that is not imposed in most other states.

·         Make Minnesota an outlier both regionally and nationally.   There are important economic reasons why almost all states have chosen not to impose a retail sales tax on business inputs due to the economic distortions and inefficiencies that are created by the pyramiding of the sales tax on business services and purchases and the detrimental impact on a state’s economy and business climate.

·         Harm small and mid-sized businesses especially hard as our small businesses are less likely to be able to do these new services in-house and thereby avoid the sales tax.    

·         Ultimately harm consumers and workers as the final incidence of this regressive tax is passed along through higher prices for goods and lower wages and fewer job opportunities.

400 Robert Street North, Suite 1500, Saint Paul, MN  55101.  |  651.292.4650  |  www.mnchamber.com

·         Undermine job creation and undermine other important public policy goals.  For example,

o   A new $24 million Job Creation Fund was created in 2013 session in order to encourage industries including storage and warehouse to locate in Minnesota.   This new tax not only puts our current warehouse and storage businesses at an extreme competitive disadvantage that will likely result in job losses – it will also make it extremely difficult to recruit any new facilities to Minnesota.

o   The tax bill results in very inconsistent policies such as changing the current upfront exemption for capital equipment to a refund in order to encourage more capital equipment purchases at the same time imposing an additional cost of 6.875% sales tax (plus any local sales tax) on the labor to repair and maintain that equipment.

o   Another competing and inconsistent policy is the telecommunications equipment tax that will make it more expensive to build Minnesota’s telecommunication infrastructure.  This tax goes in the opposite direction of recommendations by Governor Dayton’s   Broadband Task Force and the $500,000 for creation of broadband development office to encourage more investment of high tech equipment and capacity in Minnesota. 

What is taxable under the new B2B taxes? 

Labor service charges for repair and maintenance of business equipment including farm machinery, medical equipment, electronic equipment, capital equipment, computer and industrial equipment.  This includes but is not limited to photocopying machines, printers, televisions, and scientific instruments.  This does not include motor vehicles, furniture and fixtures, ships, railroad stock and aircraft.  This does not include services provided by own employee or affiliated company.  This is effective for purchases after June 30, 2013.

Storage and warehouse business services.  This includes all business related storage and warehousing activity including agricultural input storage, petroleum storage, storage/warehouse at Port of Duluth, and distribution centers.  This does not include agricultural products, refrigerated storage, electronic data, mini-storage for consumers.  This does not include storage and warehousing if own your own facility and services are done by your employees.  This is effective for purchases after March 31, 2013.

Telecommunications equipment applies to purchases by the telecommunications service providers on the machinery, equipment, fixtures used in receiving, initiating, amplifying, processing, transmitting, retransmitting, recording, switching, or monitoring telecommunications services used by telecommunications, cable television, direct satellite service provider in providing telecommunications service.  It includes repair and replacement parts.  This is effective for purchases after June 30, 2013.

The Minnesota Department of Revenue is providing further guidelines on implementation that will be released over new few weeks and months. 

Please contact Beth Kadoun at bkadoun@mnchamber.com or call 651-292-4678 if you have any questions.  If you would to be involved in a coalition to repeal these new B2B taxes please contact Jennifer Byers at jbyers@mnchamber.com. 

400 Robert Street North, Suite 1500, Saint Paul, MN  55101.  |  651.292.4650  |  www.mnchamber.com

City Council Notes-June 18, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

Financial Director Rhonda Moen was presented with an Award of Financial Reporting Achievement.

Legislative Update from Senator Vickie Jensen.  We've covered much of what Senator Jenson updated the Council with but not the Local Sales Tax option.  Per Senator Jenson the City Council can decide on a local sales tax option without state legislative approval.  The Chamber should be involved if any local sales tax option is considered as early in the process as possible.

In economic development news, a 3.2% liquor license was approved for Target's expansion and the Right-of-Way Access Agreement on 26th St was also approved.

5 year capital improvement plan approved.

Bids for selling $3,890,000 in General Obligation Bonds by mid July was approved.  Note that City has a very good AA2 Moody's financial rating.

The Owatonna Arts Center has secured $1,300,000 in financing for their expansion project at West Hills and were authorized to advertise for bids.  Note $500,000 was from a local sales tax option for the elevator of this project.

County Public Works Task Force Update

June 18, 2013
For more information, contact Tom Shea at 444-7431

Task Force reviews changes to scale down Service Center

Owatonna – Citizen members of the Steele County Public Works Service Center Task Force worked Tuesday, June 18, to cut costs from the proposed new county highway building.
The community clearly rejected the scope of the 2012 proposal, members said, and the county board must present a less expensive project if it wants public support.

The task force has been meeting since January to identify a satisfying solution to current and long-term highway department facility needs. In fall 2012, the County Board tabled a vote to build a new facility on
Crane Creek Road/old Highway 14 after the project ran into criticism from business and private citizens questioning the cost and scope of the project. The county has been leasing temporary facilities since the September 2010 flood left its Hoffman Drive home uninhabitable. The Hoffman Drive was originally built in the 1930’s and has been the county’s base of highway operations for over 40 years.

Present at Tuesday’s meeting were: Margaret Michaletz, Jim Schafer, Steve Kath and Tony Louris, as well as County Engineer Anita Benson, Highway Maintenance Manager Beth Brady, Deb Brandwick from Oertel Architects and Scott Quiring of Amcon Construction Management.

They reviewed the original plans and discussed the benefits and costs of each component. To slash costs, Brandwick marked out areas for cuts: reducing size of wash bays, removing veteran services parking, shrinking office space, reducing the conference room and lobby and shrinking the maintenance bays. Also taken from the project would be two separate storage sheds. These adjustments would shed millions of dollars from the project, she said.

Some discussion ensued regarding the benefits of the original plan. Kath said the county should keep its most important amenities. “But you need to first set a budget and then make decisions. I’m not here to tell you what you need; that’s your call.”
Michaletz voiced similar opinions, noting to Brandwick and Quiring that they were not given a budget when they started. “It has to be a reasonable amount.” She also cautioned about building for future needs.  “You don’t know the future – how life can change,” she said.

Benson noted the highway department wants a “durable, long-term solution.”
She and Brady said the design components were aimed at enhancing efficiencies, by having the whole highway department under one roof, vehicles parked by supplies and under a secured roof and wash bays to extend the life of trucks and plows. But there are compromises that can be made, they said.
Schafer also said county citizens want something that will last. He recommended that the task force present two to three alternatives to the county board. “Our job was to explore options and I think we’ve done that, but the county board has to make the final call,” he said.
Brandwick and Quiring said they would present new drawings at the next meeting of the full task force, set for July 18 at 3 p.m. The full task force includes the private citizens representing each county district, as well as city and county staff and elected officials.

County Board Notes-June 11, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

Right of Way Access Agreement: an agreement draft for the county and city to enter in an agreement to allow full access on 26th St. at the intersection of Landmark Dr. and CSAH 34 (26th St.); added to draft a 5-year review provision; City Council will review at their meeting next Tuesday.

Health & Human Services Service Delivery Area-Design Phase: four counties are included (Mower, Dodge, Steele and Waseca); next steps include refining work plan, timetable and budget for the detailed design phase and Steele County's consideration of a resolution that includes a shared vision, enter into a detailed design phase and commit to a joint powers arrangement and to allocate funding ($902,120 Steele County portion).

Public Works Building update: task force thought it would be too many 'what if's' with the two existing sites to do remodel projects; task force recommending to build on land off of old Hwy. 14; they have working sessions set up to discuss size and scope of project; end of August is timeline to have task force make recommendation to the Commissioners.

Task Force recommends building on purchased land

The Steele County Public Works Service Center Task Force is recommending that Steele
County build a new highway department facility on its purchased land on old Highway 14.
However, the price must be lower than the proposal a year ago, task force members emphasized.
The recommendation will be presented to the Steele County Board at its June 11 meeting.
The task force has been meeting since January to identify a satisfactory solution to current and longterm
highway department facility needs. In fall 2012, the County Board tabled a vote to build a $13
million new facility on Crane Creek Road after the project ran into concern from business and private
citizens questioning the cost. The county has been leasing temporary facilities since the September 2010
flood left its 40-year-home on Hoffman Drive uninhabitable.

The task force – made up of city and county staff and elected officials, along with five private citizens –
met June 4 to review costs associated with three options: buy and remodel the current leased buildings
at 900 NW 30th Place in the industrial park, buy and remodel the vacated Caterpillar building on South
County Road 45 or build new on old Highway 14/Crane Creek Road.

Deb Brandwick of Oertel Architects and Scott Quiring of Amcon Construction Management presented
revised estimated costs of each site, after touring both existing facilities. They estimated costs of $11.2
million to purchase and remodel the Caterpillar building and $9 million to purchase and remodel the
location currently being leased. Buildings at both sites are 30-plus years old. Task force discussion and
consensus was that neither site appeared to be a good investment for the county based on the age and
work flow constraints.

County possession of the Caterpillar building would remove $2.5 million of tax base from Owatonna
Township rolls, township leaders wrote in a resolution forwarded to the task force. The township
recommended the county build on its purchased site.

Margaret Michaletz, a private citizen task force member, said it was time to move forward. “We’ve had
one common thread throughout these discussions with taxpayers: it must be reasonable. We’ve learned
enough; it’s time to spend energy on shrinking the proposed building.”

Chair of the task force and County Commissioner Bruce Kubicek recommended the group meet again in
a work session on June 18 to redesign the proposed building. He expressed hope the redesign work be
done by August.

Discussions at that meeting will include proposed cuts and changes. The challenge will be prioritizing
needs after analyzing the cost benefit on labor efficiencies and materials life cycle savings, county staff
noted. The next full task force meeting is scheduled for 3-4:30 p.m. July 18.

City Council Notes: June 4, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

Legislative Update from Representative John Petersburg to Council
LGA Increase to Owatonna of an additional 700,000 estimate, 80 million more to the program.
61 cities in Minnesota do not get LGA
Cities and Counties Exempted sales tax.      
$1.60 increase in cigarette tax per pack (Minnesota=2.08, Iowa =1.36, SD=1.53, and ND =.44)

Marriage Bill
Daycare workers Union Authorization
Tax Bill    2.1 billion in new taxes
                300-600 million in new fees
                Spending increase by 3.1 billion
                1300 new State jobs

Legislature adjourned to Feb 25th 2014



Other City Council items
Second reading on Amendment to Off Street Parking, will reduce the number of required spaces for offices and other business uses from present requirement of 1 per 200 square feet  to 1 per 300 square feet.

Approve cable TV franchise audit.  Hire Lewis & Associates to audit Charter books, the City gets 5% of gross revenue from Charter, audit is done to make sure that Charter is in compliance.  A three year review will cost $8500 for the audit

County Public Works Building Update

Media Release

Date: May 28, 2013

From:  Tom Shea

Administrator

Steele County

                                               

For Immediate Release

Steele County Public Works Service Center Task Force Notes Progress

Owatonna – A 16-member county task force continues its work to identify a satisfying solution to current and long-term highway department facility needs.

Five private citizens are serving on the Task Force, each chosen by the commissioner of his or her district. The five were asked to lend an outside view of the project, listen to other citizens’ concerns and bring their fields of expertise to the process. The five are Marvin Spindler, Jim Shafer, Matt Durand, Steve Kath and Margaret Michaletz.

Since the formation of the task force five months ago, the public works task force has learned the needs of the county and explored the options presented. Currently, three options are being considered seriously: construction of a new building on Crane Creek Road (old Highway 14) that the county has invested approximately $900,000 in purchase and site preparation, buying the vacated former Caterpillar building on South County Road 45 listed at $3 million, or buying the current leased facility located at 900 30^th Place NW in the Owatonna industrial park.

The task force toured the Caterpillar building and reviewed remodeling costs provided by Oertel Architects and Ancom, Construction Managers. Task force members have been sharing the information they’re receiving with friends and colleagues in the community and sharing their findings with the committee, as well.

The Task Force members have also prioritized 11 criteria important for selecting the site.

At the May meeting, Kath noted that the task force’s work will be completed when “we have the best number we feel comfortable with.  We did the best we could and this is what the group decided.“

The Public Works Task Force meets again June 4 at 3:00 p.m. in the County Boardroom.

Formation of the task force arose early in 2013 after the County Board tabled a vote to build a $13 million new facility on Crane Creek Road in mid-2012. The project ran into criticism from business and private citizens who questioned the cost and the seeming lack of community input on the proposal.

The county is looking for new highway headquarters after the September 2010 flood left its 40-year-home on Hoffman Drive uninhabitable. Since then, it has been leasing temporary facilities in the industrial park.

County Board Meeting: May 14, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

County Commissioners received a packet and annual update from Tourism Director Lisa Havelka. Last year the county was able to give $1,200 toward Southern Minnesota Tourism Association (about 36 counties that  co-op to bring tourism to southern MN). Commissioners to decide at 7 PM meeting if they are able to contribute again.

Laura Ihrke presented information on ditch viewer training. Appx. $10,000 to be raised (amount goes down if more counties participate).

U of M Extension presented a program review of 2013/2014 goals.  Areas included: Ag, Horticulture  4-H, and  Nutrition Education.

Steve Rholik presented info on the contract change order with Motorola, as well as info on the 800 MHz antennas (both Blooming Prairie sites).

Anita Benson presented an update on the Public Works Service Center Task Force. The task force has worked through priority rankings for items on the site. Preliminary costs for the Caterpillar concept and Manthe/Crane Creek concept have been initially outlined. June 4th is next task force meeting. Group is planning on an public update/announcement of a "progress report" soon.  FEMA is supposed to respond to county soon.

City Council Notes-May 7, 2013

A part of the OACCT's Public Policy efforts for 2013 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.

Steele County Assessor had the Board of Appeals and Equalization report, some highlights from the report,
128 foreclosures in Owatonna in 2012 versus 175 in 2010.
Commercial and Industrial property had slight increase in value of .7%
Plan to evaluate all commercial and industrial properties in 2013 for 2014 assessment.
Value on new construction for 2012 was $8,144,900.00

Conditional Use permit for new drive thru restaurant at 1232 Oak Ave South, by Tailwind Investment.

Conditional use permit for OPU for repurpose of the old power plant.

Bids awarded on various street projects for 2013 including NW Industrial Park Pond for $1,000,472.00 awarded to Borneke Construction using State and TIF monies.

Development agreement with Tailwind LLC for old Budget Mart and Hardee’s site.  Creates TIF district for total amount of TIF is 220,000 with 100,000 going to developer for demolition and site prep, and 120,000 going to City for realignment of Barney Street and administrative costs.

Coffee with Council May 18 from 9-10 am at The Kitchen.

County Meetings Available Online

http://www.owatonnalive.com/SC-Board-Meetings.html

The Chamber’s Public Policy committee is pleased to announce that County Commissioner meetings will be available online at Owatonnalive.com. This has been one of the committee's 2013 legislative agenda goals: transparency: encourage greater transparency with county information, including: budget, meeting notices, agenda with supporting documentation. Achieve County Commissioner meetings shown on television or some other electronic medium

The Public Policy committee has encouraged County officials to make public meetings available by broadcasting/streaming.

City Council meetings will be available soon too on Owatonnalive.com.  City meetings currently available on bliptv.com

Highway 14 Legislative Movement

Senator Vicki Jensen speaks at April 17 Transportation Rally.

Some promising news on Highway 14!  The Minnesota Senate Transportation Committee passed a transportation budget that included funding for the Corridors of Commerce program ($47.6 million in FY14 and $110.3 million in FY14).  Language related to project selection criteria states “In selecting a project from District 6 and 7, the commissioner is encouraged to prioritize the expansion to four lanes of an interregional corridor that connects regional trade centers, connects with other interregional corridors, and contains two lane segments with 1.5 times the state average fatality rate for rural two lane roads”.  This is demonstrates that Highway 14 should be a priority for program funding.

The revenue source that pays for the Corridors of Commerce program is a gross receipts tax on motor fuels at the wholesale level.  Motor fuels distributors will be imposed a 5.5 percent tax on their gross receipts to be paid on a quarterly basis, not per transaction.  Correspondingly, the gas tax is decreased by 6 cents.   Once fully phased in, this revenue stream is projected to generate around $200 million/yr for the Highway User Tax Distribution Fund, which distributes funds to trunk highways (to the Corridors of Commerce program), counties, and cities.  Agricultural and heating fuel is exempt from the gross receipt tax.

Beyond the support for Highway 14, this bill is good for Greater MN.  Some additional items in the include:
•Counties are given  the authority to impose a $10 wheelage tax
•Greater MN counties are given the same authority to impose a half-cent sales tax for transportation projects without voter referendum as metro counties currently hold
•Increased funding for Greater MN transit through additional General Fund dollars and increasing its MVST allocation from 4% to 5%
•Cities may create Street Maintenance Districts and impose fees to plan/fund street maintenance
•Increased funding for the TED program
•Increased the metro sales tax by .25 to fund the transit system

This bill will be up in the Senate Finance Committee on Friday and Senate Tax Committee on Monday.

It’s a long road ahead, but Highway 14 is on everyone’s radar and we have a great position in the Senate bill.  PLEASE keep up your advocacy to the Governor and House leadership to encourage them to support a statewide transportation investment and funding for the Corridors of Commerce program.

Contact Governor Dayton:  1-800-657-3717 or http://mn.gov/governor/contact-us/form/
Contact Speaker Thissen:  (651) 296-5375 or rep.paul.thissen@house.mn

Sen. Vicki Jensen (Owatonna) and Senate Transportation Chair Scott Dibble should also be  thanked for their efforts.  As a committee member, Sen. Jensen has been an incredible advocate for Highway 14 and she deserves a lot of credit for the position we are in today.  Sen. Dibble, from Minneapolis, stood up for the transportation needs of Greater MN and had the courage to move forward with a statewide transportation investment despite the political forces against him.

Sen. Jensen:  (651) 296-9457 or sen.vicki.jensen@senate.mn
Sen. Dibble:  (651) 296-4191 or sen.scott.dibble@senate.mn

Finally, several Highway 14 Partnership members who came to St. Paul to participate in the transportation rally on Wednesday:  President Les Abraham, Owatonna Mayor Tom Kuntz (speaker), Katie Nelson (Owatonna Chamber), Guy Kohlnofer (Dodge County Engineer), Al Forsberg (Blue Earth County Engineer), Blue Earth County Commissioner Vance Stuehrenberg (speaker), and Beth Hodgman (speaker).  Again, Highway 14 was at the forefront of the transportation discussion because of their advocacy!

--submitted by Lobbyist Amanda Duerr, Highway 14 Partnership