Shakopee City Council Regular Meeting and Joint Meeting with Shakopee Public Utilities - March 17, 2026

The Shakopee City Council met on Tuesday, March 17, 2026, at 7:00 PM at City Hall, 485 Gorman Street. The meeting included a joint session with the Shakopee Public Utilities (SPU) Commission. Key outcomes included the approval of the final plat for Bluff View 2nd Addition (4–1), and informational discussions on SPU's year in review, future annexation plans, and a proposed amendment to the franchise fee agreement for large load customers.

Consent Calendar

• All 18 consent agenda items were approved unanimously without discussion. These included the monthly financial report for February 2026; awards for pavement rehabilitation, sewer televising, and intersection improvements; cooperative agreements with Scott County, SPU, and MnDOT; surplus property; approval of March 3, 2026 minutes; delegation of plumbing review ordinance (O2026-008); acceptance of an MNOSHA grant; easements for Xcel Energy; ordinance on wireless communication towers (O2026-005); an interim use permit for a construction trailer; and hiring a Communications Specialist - Digital Media at Step 6.

Public Comments & Testimony

• Scott County Commissioner Jody Brennan spoke about mortgage theft/fraud prevention. She stated that Scott County has no record of such incidents but encouraged residents to sign up for a free Property Watch Alert on the county land records website to receive notifications of any changes to their property records. She noted that Minnesota’s abstract title search requirement makes mortgage theft more difficult than in other states. The city administrator confirmed that the county assessor will present at the April 7 meeting.

Discussion Items

8A – Final Plat of Bluff View 2nd Addition

• Staff presentation: Applicant Summergate Development proposes the second and final phase of a single-family residential subdivision with lots of varying widths. The plat is consistent with approved guiding (suburban residential, 3–6 units/acre) and the prior PUD. City engineering imposed conditions regarding phasing and securities for County Road 16/17th Avenue and sanitary sewer. A 30+ acre parcel will be deeded to the city as open space.
• Councilor Whiting expressed opposition, stating that the original intention of a parkway along the bluff line was not realized; instead, homes have backyards with views. Staff responded that a trail system through the backyards is planned, and the city-owned open space will be signed and preserved for habitat (including rusty patch brown bumblebee and long-eared bat). The motion carried 4–1, with Councilor Whiting voting no.

9A – SPU Year in Review

• Mr. Durant (SPU) reported on several initiatives:
  • AMI system: All but three customers have been converted; an opt-out policy charges $75/month for manual meter reading. The system enables remote disconnect/reconnect and can alert customers to possible leaks via continuous overnight usage.
  • Water tower painting: A custom design on a prominent tower cost an $80,000 upcharge on a $1.6M paint job; it was featured in a national calendar (Top 12).
  • Solar grid access charge: Implemented to ensure solar customers pay a fair share of system maintenance.
  • Reliability: 99.99% reliability rate, with national awards.
  • PFAS: Below all regulatory levels but monitored.
  • Substation and water improvements: West Shakopee substation online; new well (Pumphouse 23); tank 9 (Woodduck Trail) bids; booster station additions; ongoing service territory discussions with Xcel Energy and Minnesota Valley Electric.
  • Lead service lines: Very few found; replacement ongoing with federal grant applications.
  • Backflow prevention: State code requires annual testing; SPU plans to consolidate testing to early season and offers testing services.

9B – City Annexation and Future Planning

• Mr. Kerski (City Planner) presented future annexation areas: the Bauer property (recently annexed), Green View (under construction), a small parcel to finish Zumbro Avenue, the San property in Louisville Township (expected 2027, with lift station to serve adjacent areas). Beyond 150th Street, Shakopee, Mdewakanton, and Sioux communities own land, making further annexation unlikely. The gravel pit north of 150th is a long-term industrial opportunity.

9C – Pilot Agreement Amendment (Large Load Customers)

• Mr. Durant and Mr. Reynolds proposed amending the franchise fee agreement to attract customers with loads over 10 megawatts. Current structure: 6% (5.5% to city, 0.5% to EDA) on all gross revenue. Proposed: first $1.5 million at 6%, excess at 1%. This mirrors Xcel’s existing agreement (3% on first $950,000, then 0.5%). SPU argued it is necessary to be competitive, especially as they seek to serve large industrial users or data centers, while the city’s policy is to receive twice Xcel’s rate. Estimates: a 25 MW facility at half load could still generate ~$16,000/month in payments.
• Council concerns: Councilor Whiting and Mayor Lehman worried about subsidizing large users (especially data centers) and the contradiction of conservation messaging. They requested more information, noting the memo was received only 72 hours prior. Councilor Whiting also asked about data center water use; SPU requires closed-loop, zero water cooling. SPU clarified that 25 MW is the maximum per facility; the system could handle up to three such facilities (75 MW total). No vote was taken; the item was informational.

Key Outcomes

• Approved: Resolution R2026-034 approving Final Plat of Bluff View 2nd Addition (4–1).
• No action: The large load franchise fee amendment was discussed but not voted on; further research and staff responses to council questions were requested.
• Other: Councilor Whiting requested a future discussion on city staff’s use of NDAs. The mayor suggested waiting for state legislation, noting that NDAs are often required for businesses to share plans. The item may be revisited after the state session.
• Adjourned: To the next regular meeting on April 7, 2026, at 7:00 PM.