OACCT Letter to County Commissioners/Public Works Building-June 3, 1014

June 3, 2014

Steele County Commissioners
Administrator Tom Shea

Steele County Administration Center

630 Florence Ave.

Owatonna, MN 55060

Steele County Commissioners and Administrator Shea,

The Owatonna Area Chamber of Commerce & Tourism (OACCT) Board of Directors would like to encourage your active consideration of the Steele County Community Taskforce position of holding the total cost of land, construction, and furnishing of the Public Works Building to the recommended $7 million investment.

While the needs of this project are important to operations of the county, we believe that holding the line on the recommended $7 million budget for the building is imperative to Steele County taxpayer. 

The community will be faced with many financial options that could become obligations in the foreseeable future. We believe the taxpayers should be able to view the broad perspective of potential projects and financial impacts and make their investment decisions based on community projects’ costs, economic implications and return on investment.  Specifically, projects like the potential School District building/facilities levy, a potential community center and the half-cent sales tax option that could be implemented on behalf of the county could negatively impact the taxpayer based on the various projects’ timing and additional levies enacted.  

If you have any questions, don’t hesitate to contact Jennifer at the OACCT office, 451-7970.

Sincerely,

Scott Kubicek, Advantage Cabinets                                          Andy Michaletz, Owatonna Business Park

Chair, OACCT Board of Directors                                            Chair, OACCT Public Policy Committee

Jennifer Libby, OACCT

President/CEO

City Council Meeting Notes-June 3, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

Study Session – Waste Water, Storm Water and Fee Resolution

·         Waste Water Expansion

o    Currently running approximately 75% capacity

o    One large development project could push us closer to capacity

o    Estimated that within the next five years it will be a go for the expansion

o    No official estimate on cost of expansion

o    How to pay for it…

§  Utilize part of waste water fund (don’t want to deplete the fund)

§  Bonding

§  Rates

·         Waste Water Fund

o    Waste water fund is at approximately $15M and shrinking

o    Meant for special projects and emergencies

o    Looking to at least maintain current level and would like to grow it knowing expansion may be coming

o    Rate increases (3-10%) will be evaluated to determine what percentage increase will maintain/grow fund

o    Current rate is in the bottom third of surrounding communities

·         Storm Water

o    2008 was the last base rate increase

o    Current rate is on the lower end based on rates of surrounding communities

o    Rate for businesses isn’t very straight forward and has many variables

§  Low density vs high density

§  Acreage

§  Base rate

§  There is a credit system that isn’t utilized

§  Not a simple calculation

o    No major issues within the system, just a few trouble spots on bigger storms

·         Outcomes

o    Public Works will evaluate waste water rate increase impact to fund and come back to council with recommendation

o    Council and Public Works will work to identify what the target balance for the waste water fund should be

o    Public Works will evaluate storm water rate increase and come back to council with a recommendation

Council Meeting

o    UV Splash Dash approval delayed until council can hear how the organizer, Winter State Entertainment, will address concerns (from citizens to council members) with trash and how the trails are left after the event,

o    Dog Pound (Birthday Bash & End of Summer Bash events were granted exception to the noise ordinance until Midnight.  It was requested until 1:00 AM, but council is being considerate of residents close to downtown.  In addition, it was noted that this sets a precedence for future requests and that the Council need to be consistent.

o    Tobacco permit approved for Owatonna Tobacco Inc. on Bridge Street (new ownership)

o    Mineral Springs Parkway Project

o    Residents are concerns with current design

o    Council approved a delay until 2015 and rebid (5-1)

o    Council stated that this will happen in 2015 regardless

o    During the delay, Public Works will continue to work with residents to come up with the best approach

o    Airport – East Apron Pavement Project

o    MNDOT recommended re-pavement

o    There will be an expansion of the apron as well

o    Estimated cost of $370,000

o    Funding will be Federal, State and local

o    Council approved the project (6-0)

City Council Notes-May 20, 2014

A part of the OACCT's Public Policy efforts for 2014 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. Demolition of houses on Lemond Road. The contract for demolition was awarded NOT to the lowest bidder rather to a contractor that has displayed good and faithful work practices in the past. A local contractor was the lowest bidder but has performed poorly in past contracts awarded with the city. Mark Wallbran , city attorney clarified this ruling under state law.

2. Airport work order: The estimates for engineering services has with Bolton and Menk engineering has come in $2,500 over budget for services. Troy Klecker reported that the bonding bill that recently passed in St. Paul will cover the immediate cost of repairs at the airport. Net cost to the city is zero.

3. A lot of discussion on residential variances. The planning and zoning committee will re-visit the setback limits on three and four season porches. Current set backs are 20 ft. form property line. Troy Klecker reported in recent years there has been an increase amount of requests for this variance. Council input stated to be careful in re-writing the variance to open up the opportunity for citizens to request building closer to their property line.

4. The council approved a pay increase for council members and the mayor. Last pay increase was in 1997. Minimal increase of $50.00 per month. And the mayor $100.00 per month. Council member Raney suggested having the charter commission evaluate future pay increase for the council to avoid a conflict of interest.

5. Repair road on Mineral Springs Road and put a bike path/trail extension on east side of road. A lot of decision on this topic. Council member Svenby noted he has been on the council for nine years and this project has been pushed back to the nest year for nine years. He voted to approve the repairs. The building inspector met with land owners and all of the land owners are not in favor of the repairs. The council vote was 3-2 vote. They need four votes for the resolution to pass. Council voted to table the vote to next meeting. One land owner expressed concern on the bike path on the east side of the road. That land owner opposed the bike trail, “stating that five houses will be impacted with the bike trail on the east side of the road and if the built trail is constructed on the west side of the road would only impact one land owner” Land owners concern bike path would be to close to the house and any screening (ie bushes , trees, fencing, etc.) would take even more of their land.

6. Gateway Apartment was given the go ahead to build a new apartment building in the vacant lot to the east of the existing gateway building. They are approved for tax increment financing (TIFF) with a payback structure to the city.

County Board Notes-May 13, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

There was much discussion on the Mathiowetz – Burnham Pit. Parties from both sides were very passionate about this case and in the end, the Commissioners voted to approve the pit. Mathiowetz has agreed to 25 additional conditions (above and beyond those required) in an effort to reduce the impact on the area residents.

County Board Notes-April 22, 2013

A part of the OACCT's Public Policy efforts for 2014 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.

General:

·         President’s Volunteer Service Awards given to Dave Purcell, Shirley Woodfill and Tom Carnaskus (I make no claims of  for >100 volunteer hours in 12 months

·         EMS week proclamation for May 18-24 – resolution approved

·         On sale liquor license for Spurgy’s Bar and Grill in Hope, MN – approved

·         Extensive discussion (public and Council) centered around a Conditional Use Permit request for Burke Firing Range to use their property in Blooming Prairie for civilian and Law Enforcement training. Approximately ten citizens from Blooming Prairie were present and voiced objections, mostly centered around safety. A motion to deny was presented and carried by the Council.

Land Use/Records:

·         Regional Rail Authority public hearing date set for May 13 at 7:30

Public Works

·         Continue environmental assessment on building project – on hold since 2012 – motion to proceed carried

·         Advertise for bids for striping 6” on eligible county highways (Federal Aid – Highway safety project) due May 22, 10am  – motion carried

·         Advertise for bids for 4” striping on remaining county highways and city of Owatonna due May 22, 11am – motion carried

o   Higher traffic roads get 6”, lower 4”, Public Works can provide maps

·         Spring parking lot sweeping awarded to Wolf and Sons $1580 – motion carried

·         Parking lot striping awarded to Seykora $3641 – motion carried

·         Purchase of skid loader attachment $12,701 from Bobcat of Mankato – motion carried

·         Professional Services Agreement – approve a not-to-exceed contract with Stolberg(?) Engineering- $159,730 for promotional service project for Kasa(?) 42 and Main St project in Blooming Prairie. Doug Johnson abstained from the vote because of a potential conflict – motion carried

·         Disposition of Excess Right of Way Easements Policy – policy approved

Committee of the Whole

·         Personnel report – carried

·         Ag Society Loan $100,000 draw on already approved loan – motion carried

·         Emergency Management Director Position – motion to remove tabled item from last meeting (resignation was withdrawn) – motion carried

·         Emergency Management Director Position – modified service delivery structure presented to Cmte of the Whole and arrangement discussed with Mike Johnson to continue as emergency director  reporting structure proposed. Board discussion – concern expressed in reporting relationship. Nina believes in emergency situations it’s appropriate, but has philosophical concern with the Board being administrative responsibility day to day. Will the Board be expected to do documentation, performance evaluations, etc.? In favor of concept, but wants duties and reporting worked out – motion carried

·         I-35 easement – relocation of utilities so I-35 bridge can be replaced – motion carried

·         Added agenda item – Drug Court MOU – motion to authorize Chair to sign – motion carried

City Council Notes-Aprl 15, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

We held a public hearing on the TIF district for Daikin Applied (McQuay) and passed the TIF modification.

We passed resolutions supporting Daiken and Jostens in their application for the MN Jobs Creation Fund for business expansion.

We had a hearing to address non-compliance issues with Charter Communications, the hearing was tabled until the next meeting.

We approved  a cooperative agreement with the county on doing some sanitary sewer repair on Dane Rd. to coincide with their repairs.

A proposed ordinance to increase setbacks on accessory structures was tabled to allow a meeting with the Planning Commission.

New polling places were designated for the primary election.

A contract was awarded for Boiler repair at the WWTP (treatment plant), unfortunately a local contractor was the low bidder but didn't fulfill all of the necessary requirements to win the bid. 

Authorization was approved to Bid this year's crack sealing. 


The public comment portion was used to discuss the proposed pay increase for the council and dissatisfaction with the City's efforts to bring in another cable TV provider. 

County Board Meeting Notes-April 8, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

Dangerous Dog Ordinance meeting set for May, 6^th, 2014

Authorize advertising for three or four bids for work to be done this summer,

Accepted bids on three projects to be done this summer.

Presentation and request for continued support and funding of the Steele County Humane society

Authorized the purchase of Veterans Service van and passed a resolution thanking Veteran groups for donations to purchase the van.

Employee actions where accepted except the resignation from Michael Johnson, Apparently he is not happy with some changes and has turned in a resignation, the board and administrator do not want him to go and are going to try and change his mind.

Most interesting item was the Conversation at the Committee of the whole on the future financial plan for the county.

Things of interest

• They have 7.5 million built into the plan as a place holder for a Public works building.
• We have about 20 years of service left with the landfill, conversation needs to begin on purchase of new land and or plans for a future landfill or contracting this out. 5-6 million in the next 5 years,
• A mention of a Criminal Justice center to be discussed in the next 10 years or so. Approx cost 15 million plus.
• Roofs are going to become an issue that needs attention in the next 5 years.

County Board Meeting: March 25, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

2 positions have been filled,  1 for Exec. Asst. Director of HR and Project Engineer

The South Central Human Relations Center has updated their renovation plans to remove a parking lot and are working on a refinance option.

They discussed the possibility of collaborating with OPU for some IT needs.

There was also discussions about standardizing some processes across departments to ensure continuity and uniformity across the departments.

They were presented with bids for farmland rental which they will likely approve at a rate of $503.00/acre if I understood it correctly.

Much of the meeting was a presentation on the pay equity/compensation study.  The study and report are not yet complete and they would like to do some tweaking to minimize employee appeals based upon the findings as this could open a can of worms with regard what employees are paid compared to other communities.  

City Council Meeting Notes-March 4, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

Most of the meeting was a consent agenda but there was a fair amount of discussion on some street and utility improvement projects. A number of citizens expressed their opinion, some for and some against the projects. One was tabled till next meeting and one passed to order bids.

One of the major items of the meeting was the approval of the approval of the Assessment Rate to stay the same at $52.00 per linear foot.

They also approved replacement of the Heat Pump at the Waste Water Treatment Plant as well as a feasibility study for the Lemond Road Project.

City Council Notes-February 18, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

John Petersburg, House Representative made a presentation to the Council regarding upcoming session. 

Some issues for this year

Sunday Liquor sales

Minimum wage

Anti -bullying bill

Public hearing bond issuance for South Central Human Relations Center.  Issue of bonds for maximum of 2.5 million

Resolution to support the MoveMN campaign.  Passed, but Councilman Dotson voting no.

Conditional use permit by Panda Express to allow second building on their lot, possible use of Aspen Dental.

County Board Notes-Feb. 11, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

Senator Vickie Jensen

See Attached

·         Senator Jenson commented that it was important to her to bring back the county/state match with regard to infrastructure. She would like to see the amount increased to $2MM.

·         The B2B tax is a hot button for everyone and there is tremendous support to repeal it. The Senator did mention that if it is not done soon they will have to look for other sources for the money that this tax was to support.

·         I35 will undergo major work in our community 2014/2015. The Senator wants to make sure that the county is kept in the loop concerning access and material handling logistics.

Public Works Building Review

See Attached

·         Anita Benson presented Options 2 and 4 to the committee

o   Option 2 has a price of approximately $9.5MM.

§  This is a much larger facility and has more amenities.

§  This is the option that she is supporting.

o   Option 4 has a price of approximately $7MM.

§  This is a scaled back facility

§  It subsequently has fewer amenities. It has room for fewer vehicles than the original Hoffman facility.

§  According to Anita, the Task Force “whittled it down” to one of these two options with a preference for Option 4.

·         Tom Shae reported that the decision on the second appeal is “eminent”. He made inquiries to determine the meaning of eminent. Apparently a decision has been made and forwarded to “legal”. Once it clears that hurdle it will be expressed to the county. He had no idea how long that will take.

·         Commissioner Ebling presented that the Task Force really did not support an option as much as a price tag of $7MM.

·         There was concern that Option 4 does not meet the needs of the county with regard to room.

·         Others on the committee concurred and it was determine that the issue needs to go to Public Works to scale back the features of Option 2 to more closely fit the Option 4 price tag.

·         There is some concern that the county will get into the bonding process and then find out that the FEMA claim is approved. It was determined that it is more prudent to move along in the process using the 2015 lease expiration as a deadline.

·         There is also some concern in that some of the cost saving plans call for moving the building itself closer to the highway therefore limiting the amount of driveway. The city would like to add a retaining pond in that location. There was also some discussion by the Commissioners that the space nearest the highway might be better used for commercial development. 

City Council Notes: Feb. 4, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

State Senator Vicki Jensen provided some pre-session information regarding bills she is authoring/sponsoring.  I have attached the handout she provided for the session. 

The Mayor spoke about his trip to DC for the state of the union address as a guest of Congressman Tim Walz.

The most exciting thing on the agenda was the permit request to hold a wedding reception in a hangar at the airport, there was some discussion on the topic regarding the city competing with private businesses for this kind of space or event.  The request was ultimately approved based upon the groom's status as a pilot and his ties to the airport. 

City Council Notes-Jan. 21, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

Most of the meeting was a consent agenda issuing permit for routine gambling permits. Only concern on the consent agenda was a wedding reception schedule at the airport on May 17, 2014 was tabled until the next meeting.

The major item of the meeting was the approval of the new construction of a Kwik Trip on 26th and Landmark Drive.

-Concerns were the bike path/ side walk from Landmark to Cedar Avenue.  Who is going to maintain the bike path/walkway for snow removal and lawn care in the summer.  The land owners (Kwik Trip) will maintain the pathway from their property line to west to Cedar Avenue.

-The council also brought up a concern of public safety. The kids participating in sport activities at Manthe Park crossing 26th Street to Kwik Trip with no cross walk.  The cities position was citizens will have to travel west on the south side of 26yh street and cross 26th to the north on Cedar to access Kwik Trip.  Council concern was kids were going to cross 26th at the new left turn lane for a short cut to Kwik Trip.
Other major topic was the addition of 4 new propane tanks for Pirkl Gas Inc. off of Mineral Springs Road.

-Decision was to place four new 45,000 lbs. storage propane storage tanks on the property.

-Two of the 45,000 lbs. tanks will be installed that meet the city code and meet the requirements set by the Minnesota state  statute. Safety concerns were raised regarding the expansion of the two additional new 45,000 lbs. The business owner assured the council that Pirkl Gas has  gone above and beyond the state requirements for safety and is confident that the state will approve the additional  two 45,000 lbs. to be installed in the future on that site referred to above.

-Pirkl Gas is seeking State approval for the next two 45,000 lbs. tanks to be installed in the future.  Pirkl Gas will install the infrastructure (i.e. base concrete in nature and empty 45,000 lb. propane cylinders) for the two additional 45,000 tanks to be installed in the future.

County Board Notes-Jan. 7, 2014

A part of the OACCT's Public Policy efforts for 2014 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 discussed the layout and organizational structure for a new position-Community Service Director (option) within public health. Commissioners are focused on not creating more mid-management layers and not adding more FTE's. There has been difficulty in finding qualified candidates that having the nursing education, as well as the administration background.

Commissioners discussed two grievances: one individual issue and another a group/union classification issue. 

Administrator Shea and Bill Effertz will be hosting a land values meeting with land owner lots (two or more) on Jan. 16th.  The purpose is to education land owners how property valuations are factored, as well as get land owner input.

City Council Notes-Jan. 7, 2014

A part of the OACCT's Public Policy efforts for 2014 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.

Building Inspection Report, 17 permits for new single family dwelling in 2013 versus 12 for 2012.

The only action item on the Agenda was to set hearing for Bond sale regarding South Central Human Relations Center.  The hearing is set for Tuesday February 4, 2014.

Meeting adjourned at 7:18 pm

County Settles with MnDOT on Hwy. 14 Turn Back

January 3, 2014 - 4:45 pm
Joint Statement by Steele and Waseca County Board of Commissioners
For further information contact:
Tom Shea, Steele County Administrator - 507-444-7431
Laura Elvebak, Waseca County Administrator - 507-835-0631

Steele, Waseca Counties Agree to MnDOT Agreement
Steele and Waseca County Boards voted today to approve the Settlement Agreement drafted by
the Minnesota Department of Transportation (MnDOT) relating to old Highway 14* turn back
and presented to the Counties as a final agreement offer. The insistence of MnDOT that the
Counties accept substantive changes to the hand shake agreement of October 28th has eroded
the confidence and trust in the Counties working relationship with their transportation partner.

The Counties have experienced an unnecessary and burdensome process and strongly
encourage MnDOT to establish guidelines on the turn back system so that other counties do not
repeat the waste of time and resources Steele and Waseca Counties have to achieve this
resolution, a resolution which could have and should have been done 16 months ago.

Despite all of this, the Counties believe this agreement, while not perfect, is still in the best
interests of the citizens of the Counties. Further, in spite of this unfortunate process, Steele
and Waseca Counties are committed to restoring a mutually respectful working relationship
with MnDOT and pledge to work hard to re-store that trust between the counties and State of
Minnesota.

*Between the Waseca/Blue Earth County line and the City of Owatonna