Statement Regarding Resolution To Reject Spuc Action In Shakopee

From the City of Shakopee:

February 29, 2020

On Feb. 18, the Shakopee City Council met in a closed session under MN Statute Section 13D.05 Subdivision 3(b) with the city attorney to discuss options related to Shakopee Public Utilities. In that meeting, the council instructed the city attorney to prepare a resolution disagreeing with SPUC’s one-sided action to change the formula for SPUC’s financial contributions to the city. That resolution will be considered by the council on March 4.

Council’s primary objective with this resolution is to obtain collaboration from SPUC. The council and SPUC serve the same customers – the residents of Shakopee – and you should expect us to work together. To date, SPUC has proven to be an unwilling partner and the organization continues to display rogue behaviors that cause the council concern. The council resolution specifically asks for SPUC to rescind its decision to unilaterally change its contribution formula and to meet with the council to negotiate a solution. This isn’t asking for much – these formulas have been set collaboratively since at least the 1980s.

To date, SPUC has shown no willingness to meet in a public forum to jointly discuss this matter. SPUC prefers a closed-door meeting between the leaders of the organizations. The council disagrees – the potential outcome of these discussions is too great to happen without the ability of the public to view and develop their own opinions.

It will undoubtedly catch your attention at the end of the resolution under consideration that the council is authorizing the city attorney to take legal action to nullify SPUC’s actions related to the contribution formula. Legal proceedings are not the council’s first choice, but to hold SPUC accountable on behalf of Shakopee residents, council is willing to take this extraordinary action.

Let’s be clear: this is not about the city wanting more money from SPUC. We agree the formula could be changed and are confident a mutual agreement to the benefit of residents could be achieved. However, unilateral decision-making that SPUC is engaging in is not in the best interest of residents.

While the resolution points at one specific instance where SPUC has gone rogue, there are many other instances we can detail where SPUC’s behavior is not accountable and causes concern. Data requests for public information have gone ignored or are returned incomplete. SPUC has filed plans with the state without collaborative review. Short-sighted financial and water infrastructure planning without collaboration, water quality concerns and SPUC’s potential violations of state statutes are also major concerns.

It is unfortunate the council must consider this resolution to simply try to obtain cooperation from SPUC. The council hopes SPUC will choose a new course, one where we work together to serve Shakopee residents.

This press release was produced by the City of Shakopee. The views expressed here are the author’s own.