Shakopee approves trash contract extension despite rate concerns
The Shakopee City Council voted 4-1 on August 5 to extend its five-year contract with Dick's Sanitation Inc., approving continued waste and recycling services while one council member raised concerns about potential future rate increases.
Councilor Lara cast the sole dissenting vote, questioning whether the city should have re-bid the contract to ensure competitive pricing. She worried about the potential for unscheduled rate increases under the extended agreement. City staff countered that maintaining a single waste hauler provides economic benefits and stability for residents.
Dick's Sanitation representatives outlined planned improvements to their service, including a "track your truck" system that will let residents see in real-time how far away their garbage truck is—similar to package tracking services. The company also plans to deploy on-board cameras to monitor contamination in recycling bins and is preparing for mandated organics collection in the future. The council discussed smaller recycling bin options for seniors and clarified how alleyway service works during weight restrictions.
The council also approved a separate resolution thanking the Frederick family for donating a flagpole to the Miracle League field. Councilor Lara specifically requested this item be pulled from the routine consent agenda to publicly acknowledge the donation. The Park and Recreation Director explained the flagpole will allow Miracle League players to have a flag to face during the national anthem.
In other business, the council reviewed the city's preliminary five-year capital improvement plan, which includes $118.2 million in projects. City staff identified a $5 million annual funding gap for street repairs and recommended a $10 million bond sale to help close it. If approved, this would increase property taxes by approximately $43 annually for a typical $350,000 home starting in 2028. The Mayor warned of a "difficult budget" ahead for 2027, primarily due to costs associated with expanding fire department operations to 24/7 coverage. Council members discussed exploring corporate partnerships for large projects like an outdoor ice rink at Lions Park to help offset the tax impact.
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Votes (7)
Consent Agenda Modification and Approval
Dissent: None
Moved by Councilor Contreras [00:00:15] · Seconded by Councilor Delaney [00:00:20]
Councilor Lara requested the removal of item 5N from the consent agenda for separate discussion. The remaining consent agenda items, which included various permits, grants, and routine approvals, were then approved as modified.
Resolution R 2026-111: Donation for a flagpole at the Miracle League field
Dissent: None
Moved by Councilor Lara [00:24:20] · Seconded by Councilor Whiting [00:24:28]
Councilor Lara requested this item be removed from the consent agenda to specifically acknowledge and appreciate the Frederick's family for their donation of a flagpole to the Miracle League field. The Park and Rec Director explained the donation's purpose was to provide a flag for players during the national anthem.
Extension of comprehensive solid waste and recycling contract with Dick's Sanitation Inc.
Dissent: Councilor Lara
Moved by Councilor Whiting [00:35:10] · Seconded by Councilor Delaney [00:35:30]
City staff recommended extending the existing 5-year contract with Dick's Sanitation, citing a positive partnership. Dick's Sanitation representatives detailed upcoming innovations such as truck tracking and on-board cameras for contamination, alongside preparations for mandated organics collection. Council discussion included the rationale for Christmas tree collection pricing, clarification of alleyway service during weight restrictions, and the desire for smaller recycling bin options for seniors. Councilor Lara questioned the potential for unscheduled rate increases and advocated for re-bidding the contract to ensure competitive pricing, although city staff highlighted the economic benefits of a single-hauler system.
Monthly Financial Review
The Finance Director presented the General Fund's financial status through June 30th, showing revenues exceeding expenses by $1.8 million, suggesting a positive year-end. He clarified that the budget for the fire department would increase due to new hires funded by the SAFER grant, to be formally amended later. The second-quarter investment report showed $1.6 million in interest earnings, but an unrealized loss of $892,000 due to rising interest rates, though investments are held to maturity.
Review Preliminary 2027-2031 Capital Improvement Plan (CIP)
The preliminary 5-year CIP outlined $118.2 million in projects, with $30.4 million planned for 2027, prioritized by necessity. A $5 million annual funding gap for street projects was identified, leading to a staff recommendation for a $10 million bond sale, estimated to increase property taxes by $43 annually for a $350,000 home starting in 2028. The Mayor warned of a 'difficult budget' for 2027, primarily due to the new 24/7 fire department operations. Councilors discussed exploring corporate partnerships for large projects like the Lions Park outdoor rink to offset tax levy impacts.
Liaison Reports
Councilor Whiting reported on MVTA, noting increased ridership for express services to downtown (11%) and St. Paul (21.5%), and significant growth in the MVTA Connect service (20%). Councilor Delaney discussed a Spoke meeting that addressed the use of AI in LLCs, suggesting the city might consider developing its own AI policy and mentioned a public meeting regarding Dem-Con's plans to convert permitted space to municipal solid waste.
Other Business - Community Center Parking and ADA Access
Councilor Delaney raised a concern about parents frequently blocking the ADA ramp in front of the community center, hindering accessibility. The Mayor also noted a need for a handicap parking spot in front of the post office and indicated plans to discuss it with staff.
Notable Quotes (15)
I just wanted to uh give acknowledgement to the Frederick's family for their donation of the flagpole for the Miracle I don't know the any background behind as to why they wish to make a donation if it's in behalf of somebody or if they just want to be generous. I just wanted to give um acknowledgement to that donation.
Uh their main reason for wanting to donate it is so that the players in the Miracle League um could have a flag to look towards when they sing the national anthem.
There's no increase in fees because Dick's is volunteering as part of the contract that people on on board here to to work with the city to uh do the clean up days.
One of the things that we're investing in right now is really a track your truck. It will be similar to UPS or other items where residents will actually be able to see real time how far away their truck is.
Um one thing in recycling, well, there's still a fire in a recycling either MRF truck or facility almost daily across the United States. ... 98% of them are caused from lithium ion batteries.
The difference between 10 years ago, 5 years ago, and today, and moving forward, is you actually have less Christmas trees on the road. It's efficiency.
So, I mean to I mean just in my opinion, it just then makes this, you know, useless because um in 2028, it could go up to who knows we we don't know. It we and I get we can't we can't we don't we can't see into the future. We don't know what policies can be like you said can occur. But I don't know. It just I think if you're going to provide a chart that says here here's what you're um what we're voting on is what your expected rate increases are and I to take that into consideration, but then really it's not going to be accurate. Um I think it's something that if you're going to provide that, then you should agree to it and lock into it for that term. That's just my opinion.
If I may, I think one of there are multiple benefits to a closed system. One of the best is the economies of scale. So, individuals right now are paying almost 50% less than they would if they were doing it on their own.
Over the 5-year CIP, we have 118.2 million of projects identified uh with 30.4 million in 2027.
annually repayment would be about 1.16 million on a $10 million bond. ... The impact on the home on a $350,000 home would be about 43 bucks.
This budget is going to be a difficult budget. Um in in in 2027. And the biggest reason for that is that we went to 24/7 operations uh with two stations uh with our fire department.
Lions Park outdoor rink. This I know that it's not a project until 2028, 2029, and we just had mentioned that we're focusing on 2027. But the reason why I'm bringing this up and wanting to talk has the city ever um considered or um how other cities have, for example, I have pulled up here Lakeville has the Align and Align Health Pavilion rink. And we are looking to do the same thing that they are. Have you ever looked into seeing if we could find a partner like that for us to help offset costs?
I I will say one of those projects that I mentioned that may never happen, that may be one of those projects that never happens. Uh because it's way over what what the initial estimates were. ... it cost more to move it in to move it than to move it than than than so it you know, I I Yeah, that that may be a project that never happens.
Ridership is moving up a little bit. They want to point out uh on that uh be the third page in, I guess, the 11% increase to downtown on our express service and St. Paul, which might have to do with uh uh state government is up 21.5%. Um but look at that connect service. That's the one where you can get on your phone and just call up the the driver and have them come out. That's up 20% across the board.
Okay, we had a Spoke meeting and one of the big things was the they put a policy together for um use of AI in a large LLC. I don't know if that's something that maybe we as a city needs to look at, too, as AI kind of rolls out.
Ordinances & Resolutions (12)
Ordinance amending section 1110.01 related to the national electrical code.
Agreement with Willow Glen LLC for Minnesota River Bank stabilization improvements.
Plan for the Southbridge Crossing Garden Center.
Resolution for the donation of a flagpole at the Miracle League field.
Federal law governing the telecommunications sector, cited regarding outdated safety regulations.
Specific code within the Telecommunications Act that restricts local government regulation of wireless facilities based on environmental effects.
Federal law cited regarding accessibility barriers, non-discriminatory access, and prohibited surcharges for accommodations.
Specific regulations under ADA Title II cited regarding public entity obligations for accessibility.
Non-binding document outlining future city capital projects over the next five years.
Appendix to the CIP detailing future replacement of city equipment.
Longer-range capital improvement plan currently being updated.
Adopted earlier in the year, paving the way for a bond sale to fund street projects.
Source document
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Other Topics from This Document
Baymont Hotel License Reinstatement
Electromagnetic Radiation (EMR) and Wireless Infrastructure Concerns
Solid Waste and Recycling Contract Extension
Capital Improvement Plan (CIP) Funding and Future Budget Impact
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