Shakopee City Council Regular Meeting - February 4, 2026

The Shakopee City Council met in regular session on Wednesday, February 4, 2026, at 7:00 PM at City Hall, 485 Gorman Street. Mayor Lehman presided, and Councilmembers Delaney, Contreras, and Lara were present; Councilmember Whiting was absent. The council approved the agenda and the consent agenda, held a public hearing on the 2026 Street Reconstruction Plan, recessed for an Economic Development Authority meeting, accepted a donation for aquatic programming, and reviewed a detailed right-of-way management and fiber projects update.

Consent Calendar

• Approved the consent agenda by one motion, including:
  • Equipment purchases
  • Traffic Safety Committee recommendations for traffic control changes
  • Resolution R2026-022 appointing individuals to various boards and commissions
  • Plans and bidding authorization for the 2026 Pavement Rehabilitation Projects
  • Plans and bidding authorization for the 2026 Pavement Rejuvenation Project
  • 2026 Pay Equity Reporting
  • Surplus property declaration
  • Approval of Captain Jamie Pearson as the next Chief of Police
  • Approval of the January 20, 2026 City Council minutes
  • Acceptance of ISG's proposal for design and construction services for the Shenandoah Drive and Schenian Street intersection improvements
  • Finance Department awards for financial reporting efforts
  • Modifications to the Residential Rental Ordinance

Public Comments & Testimony

• No members of the public spoke during the non-agenda public comment period.
• No one testified during the street reconstruction public hearing.

Public Hearing: Street Reconstruction Plan

• Staff presented the proposed five-year street reconstruction plan, required under Minnesota Statute 475 before bonds can be issued. A two-thirds council vote is required for approval.
• Staff noted last year's plan failed on a 3-2 vote; the new plan includes a $12 million maximum bond issuance and added language on the timing and process of bond issuance.
• The plan contains $33.6 million in projects over five years, all of which were already included in the Capital Improvement Plan. No new projects were added.
• Staff estimated the actual bond sale would be about $9-10 million, with the $12 million cap serving as a cushion. The resolution includes IRS-required reimbursement language, allowing reimbursement of project expenses up to 18 months after project completion or three years after the first project expense.
• Without a bond sale, staff said the city would need a $3.3 million annual Capital Improvement Fund levy increase for three years and would still need to defer about $2-2.5 million of 2027 projects.
• With a $10 million bond sale at roughly 3% interest, annual repayment would be about $1.16 million, with the first debt service levy impact in 2028. The impact was estimated at $43 annually on a $350,000 home, or about $12 per $100,000 of market value.
• Staff cited a community survey showing 76% support for a $24 annual increase per $100,000 in market value for road improvements and 57% support for a $48 annual increase. Construction cost inflation was noted as averaging about 10% per year over the past 20 years.
• Councilmembers discussed pavement rejuvenation products, road life cycles, bond timing, state aid, and the impact of expiring fire department grant funding. Staff said the goal for residential roadways is a 50-year life using treatments such as rejuvenators, chip sealing, crack sealing, and mill and overlay.
• The public hearing was opened and closed, and the council adopted Resolution R2026-019, which adopts the street reconstruction plan and declares the city's intent to reimburse qualified expenditures from future bond proceeds.

Economic Development Authority Meeting

• The City Council recessed and reconvened as the Economic Development Authority, with Vice President Lara presiding.
• The EDA approved its consent agenda, including meeting minutes.
• The EDA approved a three-year lease extension for Bokery Boutique Fashion LLC, doing business as Z Dress, at rates described as increasing from $18 to $18.25 to $18.50 to $18.75 over the lease term. Staff said Z Dress had been successful during its one-year trial lease, while other tenants were struggling, with some businesses down 40-50%.
• The EDA approved the EDA bill list, which included $696,900 to the State of Minnesota described as a pass-through payment for a potential property on Third Avenue related to an apartment building.
• The EDA adjourned to March 3, 2026, at 7:00 PM.

General Business: Monetary Donation for Aquatic Programming

• Sue Westergard asked the council to accept her donation for the women's water safety class, made in memory of her mother Helen and her best friend Kathy. She thanked city staff, teachers, volunteers, and participants.
• She reported that 172 women have participated, with a median age of 37.8 years, the youngest age 18 and the oldest age 71. The current session has 23 participants.
• The council approved Resolution R2026-023 accepting the monetary donation.

General Business: Right-of-Way Management and Fiber Projects Update

• Staff presented an overview of state rules and the city's right-of-way management ordinance, including Minnesota Rules 7819, Minnesota Statutes Chapter 216D, and city code requirements for permits, insurance, underground placement, restoration, notification, and stop work authority.
• In 2025, the city issued 706 right-of-way permits and collected $382,000 in fees, compared with $158,000 in 2024 and $108,000 in 2023. The city budgets for about $100,000-110,000 in such fees.
• Fiber projects generated $220,000 in permit fees in 2025 from 26 permits: 13 for Gigapower, 8 for Nuvera, and 5 for Metronet/T Fiber. Gigapower and Nuvera were the two largest users, with an additional $11,000 from a CenterPoint project downtown.
• Staff described 2025 challenges including insufficient resident notification, poor contact information, locate delays, property damage, gas service strikes, electric service outages, and overbuilding in the same areas.
• The 2026 mitigation plan includes phased permit releases, a public open house, neighborhood signs, door hangers, part-time consulting inspectors funded by permit revenue, a requirement to vacuum-expose utility services instead of hand digging, weekly construction coordination meetings, and dedicated restoration crews.
• Councilmembers strongly supported the communication and inspection measures. The Mayor asked staff and the city attorney to explore recovering public safety response costs from utility companies for repeat incidents, and staff said they would look into the legal options. Staff also agreed to send the presentation and update to absent Councilmember Whiting, who had requested a workshop on the topic.

Reports

• Councilmember Lara reported on a joint Shakopee School Board and Scott County meeting, noting $980 million in state mandates, with Scott County's share estimated at $3-4 million. He also mentioned vape detectors installed in 22 high school restrooms at a cost of $48,000, and positive attendance trends.
• Councilmembers Contreras, Delaney, and Lehman reported on attending the firefighter swearing-in ceremony, Better Batteries Plus ribbon cutting, the Chamber annual meeting, and related events.
• Councilmember Delaney reported on the Highway 13 public meeting, the 169 Coalition, SPU commissioner training, SPU anniversaries (125 years of electric, 115 years of first well, 75 years of commission), and an SPU annual audit by Abdo.
• The City Bill List was presented with no questions.

Key Outcomes

• Approved the agenda and the consent agenda without opposition.
• Adopted Resolution R2026-019 approving the Street Reconstruction Plan and declaring intent to reimburse expenditures from future bond proceeds, with a $12 million bond authorization cap.
• Approved the EDA lease extension with Z Dress and the EDA bill list.
• Approved Resolution R2026-023 accepting the monetary donation for aquatic programming.
• Directed staff and legal counsel to investigate the potential for recovering emergency response costs from utility companies and to communicate the fiber project update to Councilmember Whiting.
• Adjourned to February 17, 2026, at 7:00 PM.