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)