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HomeMy WebLinkAbout11/29/1988 TENTATIVE AGENDA ADJ.REG.SESSION SHAKOPEE, MINNESOTA NOVEMBER 29, 1988 Mayor Dolores Lebens presiding 11 Roll call at 7 : 00 P.M. 2] Review of Scott County Assessor's Office Appraisal/ Assessments of Shakopee Properties 3] other Business 4] Adjourn Dennis R. Kraft Acting City Administrator MEMO TO: Dennis R. Kraft, Acting City /Admi)nistrator FROM: Judith S. Cox, City Clerk/ �tyI✓ RE: Review of Scott County Assessor's Office Appraisal/Assessments of Shakopee Properties DATE: November 21, 1988 Introduction On November 1, 1988 Council directed appropriate City officials to set up a worksession with Mr. Gerald Garski and Mr. Steve Hurni, representatives of the Local Government Services Division of the State Department of Revenue. Background Both Mr. Garski and Mr. Hurni of the Local Government Services Division of the State Department of Revenue will be present at the Council worksession on November 29, 1988, at 7: 00 p.m. They are coming at Council's request to review the Scott County Assessor's Office appraisal/assessments of Shakopee properties. Attached for your reference are copies of the September 30, 1988 letter from Mr. Garski and the October 7, 1988 letter from Mr. Garski. The letter dated October 7, 1988 more properly addresses question No. 2 in the letter dated September 30th as well as addressing hotel/motel valuation practices. JSC/jms STATE OF MINNESOTA --- - DEPARTMENT OF REVENUE Mail Station 3340 St. Paul, MN 55146-3340 OCT- , 1988 September 30, 1988 +coPEE John Anderson City Administrator City of Shakopee 129 East 1st Avenue Shakopee, Minnesota 55379-1376 Dear Mr. Anderson: Pursuant to your request for information regarding various assessment practices of the Scott County Assessor's office as they relate to the City of Shakopee, we present the following: 1. The Scott County assessor's office uses a gross rent multiplier (GRM) method to value four or more unit apartment buildings. This method is used nationwide and is recognized by all appraisal/assessment organizations including the International Association of Assessing Officers as an accepted method of valuing apartment buildings. Personnel in the assessor's office appear to understand both the theory underlying the use of the GRM and its application to rental property. Median sales ratios for Scott County show apartment property being valued at 101.2% of market value; within the City of Shakopee this ratio is 99.9% which indicates the valuation of apartment buildings is being done correctly. 2. The difference in the value of vacant land at the junction of highways #13 and #42 in Prior Lake/Savage is due primarily to the fact that the SW corner of this intersection, which is in Prior Lake, has city sewer and water while the other three corners in Savage do not. Additionally it does not appear that Savage will furnish sewer and water to this area in the near future. This fact obviously has an impact on the value of the lots and this has been recognized by the assessor's office in their estimates of value for the property. County wide vacant land appears to be valued on a consistent basis although, since no sales ratio is developed on vacant land sales, we have no demonstrable proof that vacant land is valued within a certain level of its actual market value within Scott County_ AN EQUAL OPPORTUNITY EMPLOYER John Anderson September 30, 1988 Page Two 3. Attachment A is a five year history of the sales ratio for Scott County depicting the median sales ratio and number of study items for each city and town in the county by class of property. Please note that the city of Shakopee appears to be assessed very closely to the assessment level of the total county. This would indicate the presence of a consistent assessment. 4. Attachment B is a printout showing the mean and median and aggregate ratios, coefficient of dispersion and index of regressivity for Scott County in total as well as all cities and towns within the county by class of property. This information is only available for 1987; no historical data is available. The various ratios are the same information as was shown on the five year history noted in #3 above. The coefficient of dispersion is generally accepted as one of the prime indicators of the quality inherent in a mass appraisal system. The smaller the coefficient the more uniform the assessment. While no definite number can be stated as the ideal coefficient of dispersion, the International Association of Assessing Officers has adopted the broad standard that coefficients should be in the 10-20 percent range. Most of the county coefficients and all of Shakopee's fall within this range. The index of regressivity or price related differential attempts to measure whether an assessment is regressive or progressive. For example, whether low cost homes are valued more closely to the actual market than expensive home. Indices in the .95-1.10 range are considered acceptable with 1.0 being the best. Unfortunately a meaningful index cannot be construed with a sample size of less than 25 so most of the data shown for property classes other than residential is of questionable value. However, the residential price related differential for Scott County as a whole and Shakopee in particular are very good. 5. Attachment C shows the State Board of Equalization changes Scott County has received over the last three years. It is difficult to determine if these changes represent a "normals county's typical change orders. In 1987 the State Board applied change orders to 54 counties and in 1988, 62 counties inclulding Anoka, Carver, Dakota, Hennepin, Ramsey, Washington and Wright. These counties are metro area counties with some of the same growth oriented assessment problems as Scott. Some change orders applied county wide while others applied to only one city or town. Probably the most accurate generalization that can be made concerning State Board orders is that whenever a county has a class of property which is involved in a volatile market situation it is more likely to receive a change order than a county with static real estate markets. Attachment D is a summary of the 1987 State Board of Equalization changes which shows the rather random nature of the changes. John Anderson September 30, 1988 Page Three 6. The assessor assigned by the county to work in the City of Shakopee is Mr. Robert Schmitt. Mr Schmitt holds the designation of Certified Minnesota Assessor Specialist which is the second of the four levels of licensure given by the State Board of Assessors. Mr Schmitt has had the following specialized assessor education: Course A - Assessment, Law, History and Procedure - 1 week Course B - Residential Appraisal- 1 week Course P - Farm Appraisal - 1 week Course H - Mass Appraisal- 1 week IAAO 2 - Income Approach to Valuation - 1 week IAAO 4 - Assessment Administration - 1 week Seminar- Grain Elevator Valuation Property Tax Appeals Expert Testimony In addition, Mr. Schmitt has written an appraisal report of a residential structure which has met the requirement of the State Board of Assessors' grading committee. Mr. Schmitt would seem well qualified as an assessor. I hope this information suits your needs. If you have any additional questions we will attempt to answer them. Sincere , GERALD D. GARSKI, Assistant Director Local Government Services Division (612) 642-0483 GDG:vhI9 _e�mm_ a_�eoWe�vewm_m _em y s � e t ,5 n • o. Y N' a' m • I T I, o T' - 3 J A. C 2 3•. T 1 AI '. 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F The Commissioner of Revenue does hereby certify that this form and the following schedules consisting of I 1 pages are a true and official copy of all changes (including any values on For in PT 54C) in the assessment of real and personal property pursuant to Minnesota Statutes Section 270.13. The County Assessor is hereby directed to enter upon the assessment rolls of his county for 1995 these chanyes (including any values on Form PT 540) pursuant to Minnesota Statutes Section 273.061, Subdivision 9. tJam Minnesota Commnsioner Re or e L ilov 15 jars ,f ) 0�1 For: Va.t-., c, Assessment District Classification artd Kind (Land, Per Cent Per Cent Structures) of Property Increase Decrease Cities: Belle Plaine Residential Land and Structures +10% Jordon Residential Land and Structures +15% Prior Lake Residential Land and Structures +5% Townships: Spring Lake Residential Land and Structures +5% County-aide Apartments Land and Structures +15% County-wide Commercial Land and Structures +15% Except: New Prague, City of Commercial Land and Structures +20% I i This is an order of the State Board of equalization and can not be appealed to the Minnesota Tax Court NOTE: Each utility owning property within your county is a moiled to one 4c classification pursue no to M.S.273.13,S u lid.9.Plea se asses s l' one parcel for each utility using this classification in order to comply with the provisions of this star ore. tTgr�--pUIyNB BNAM4Hlr 4Y M1Eq{. qNp M4t1ry11Ngr. YryUYCM1TY Vg6UKti •� .uu_r as To tha County Autllmr of R('OTf County - - The Commissioner of Revenue does hereby cervi fly that this form and the fon owing schedules consisting of pages area true and official copy of all changes (including any values on Form PT 54C) in the assessment of real and personal property pursuant to Minnesota Statutes Section 270.13. The County Assessor is hereby directed to enter upon the assessment rolls of his county for 198 6 dense changes (including any values on Form PT 54C) Pursuant to Minneso Statutes Section 273.061, Subdivision 9, Dam 7ndPer November 14, 1986Assessment District Classification and KiCent Per Cent Structures) of Prrease Decrease City of: New Market Residential Land and Stru0%New Prague Residential Land and Stru -10% Prior Lake Seasonal Residential Recr0% Structures Only This is an order of the State Board of Equalization NOTE:Each utility in Q atlon and cannota appealed to the Minnesota Tax Court. Y own9 property within your county is entitled to one 3a classification pursuant to M.S. 273.13,Subd. 21. Please assess one parcel for each utility using this classification in order to comply with the provisions of this statute. I fl The CaThmjsrh,h,c.of ^7Es pamGy certlrytMttM1alo•m.rW the rdl i �— - Y e on Form 1>{G4C)In the upwame��a al .. .a, end official copy o sl i ��r including any el / -..• to Minnesot a D:e+otes?.- monast"fooery., 1 wn...n," van(including a i 3.The County A"54c is hereby directed e1.s enter upon the ceeesamenvdb or his r:oumy This is these•ofthe Sate Board of Equny alization Fond ca not be igppral d,Mtn.mite,Stetutee section 2�3.e6 t.Subdivision 9. This is an order of the State aomtl of r:quelizetion and cannot be appealed a M�nnasota Tax-, Dab r..ou.Fommbel I d asen November 10, 1987 7�;; '( r�, - '' ./'✓�✓J Assessment District Classification and Kin d, at Cent Per Cent Structures)of Property Increase Decrease City of: Savage, Elko, New Market Residential Land and Structures +5% New Prague - Residential Land and Structures +10% Prior Lake Seasonal Residential Recreational +10% Land and Structures Shakopee Commercial-Industrial Land and Structures +10% Township of: 1 Cedar Lake, Jackson, Louisville Residential Land and Structures +5% Credit River, New Market Residential Land and Structures +10% NOTE. Each utility ownlnp preany within your coumY•^ey.ec—erne lowe.asaesemom mre proven.+a:,Clne:9amow•1Y for onlyone parcel.'p•nprny The,par.el-1cn candhoea lo•Me law e,......men..... the Se ll aminose P.openY Tut T•nn-'io.C•Wneep•ovW&ain M.S.270.1195. .. r r � i .� J i ✓ �• e .� ✓ s a ,. d NUMERICAL SUMMARIES OP STATE BOARD bE EQUALIZATI09 TOTALS �C-kf R7✓�1 �. > COUNTIES IN STATE 87 CITIES IN STATE 855 TOWNSHIPS IN STATE 1, 795 UNORGANIZED TOWNS 20 (COUNTED AS 1 PER COUNTY) COUNTY-WIDE INCREASES 6 COUNTY-WIDE DECREASES 7 CITY INCREASES 19 CITY DECREASES 3[ TOWNSHIP INCREASES 46 TOWNSHIP DECREASES 2- UNORGANIZED TOWN INCREASES 1 UNORGANIZED TOWN DECREASES MISCELLANEOUS INCREASES* I MISCELLANEOUS DECREASES* 1. STATE BOARD CHANGES BY COUNTY CITY, TOWN BY PERCENT COUNTY-WIDE CITY TOWNSHIP UNORGANIZED TOWNSHIP MISCELLANEOUS* INCREASE 5% 0 4** 12 0 0 106 4 S.0 28** 0 1 15% 2 4 8** 1 0 205' 0 3** 5** 0 0 6 21** 53** 1 1 DECREASE 59 2 6 4** 0 1/2 IU% 2 74 1'S** S 0 152 2 2** 0 1/2 209 1 (-8Y,) 1 - 1 0 _ 0 _ 7 34 30** 3 1 STATE BOARD CHANCES BY COUNTY, CITY, TOWN BY CLASSIFICATION INCREASES COUNTY-141DE CITY T014NSHIP UNORG. TWP MISE* TOT: Ag. Land 0 0 8 0 0 Ag. Bldgs. 0 0 0 0 0 AS. Land & Bldg. 0 0 0 0 0 Res. Land 0 1 1 0 0 Res. Bldgs. 0 0 3 1 0 Res. Land & BLdg. 0 10 21 0 I. Apt. Land & Bldg. 1 0 0 0 0 j SRR Land 1 1 4 0 0 SRR Bldg. 1 2 10 0 0 1 SRR Land & Bldg. 2 0 6 0 1 -- I Comm. Land & Bldg. 1 7 0 0 0 _ All Classes Land & Bldg. 0 0 0 0 0 6 21 53 1 2* S. DECREASES COUNTY-WIDE CITY TOWNSHIP UNORG. TWP NISC* To 1'A 0 --_ 0 0 Ag. Bldgs. 0 0 10 0 0 Ag. Land & Bldg. 2 0 0 0 Ives. Land . .n.. . I;LL, p 1 9 U 'I AllL .. i_aud f,_f,IJ;z' -- 0 ____----—._O ��__— ____.o__ Ir SRR land 0 0 0 Il 0 situ Uld•�. SIM land & Bldg. 0 0 ' 0 (1 C.. land 2. I4ld; il_.. 2 JO * MISCELLANEOUS INCREASES AND DECREASES REFER TO THOSE CHANGES WHICH APPLY TO PARTIAL TAXING DISTRICTS OR DIFFERENT SCHOOL DISTRICTS. A 10% INCREASE WAS ORDERED FOR SRR LAND AND BUILDINGS AND RESIDENTIAL LAND AND BUILDINGS IN THE FIRST ASSESSMENT DISTRICT IN TWP 134 N RANGE 29 W IN CROW WING COUNTY. A 15% DECREASE WAS ORDERED FOR THAT PORTION OF GRAND RAPIDS TWP OF ITASCA COUNTY IN SCHOOL DISTRICT 316 AND A 5% DECREASE FOR THAT PORTION IN SCHOOL DISTRICT 318. ^* SEVERAL CITIES AND TOWNSHIPS RECEIVED INCREASES OR DECREASES IN MORE THAN ONE CLASSI- FICATION OF PROPERTY. 2 CITIES RECEIVED DOUBLE INCREASES OF 5% AND 207. 7 TOWNSHIPS RECEIVED DOUBLE INCREASES OF 10%. 157 AND 20%. 3 TOWNSHIPS RECEIVED DOUBLE DECREASES OF 57, 10% AND 15%. �mEsy STATE OF MINNESOTA DEPARTMENT OF REVENUE • ._.. Mail Station 3340 St. Paul, MN 55146-3340 - 0CT1 _ is:,s October 7, 1988 Mr. John Anderson City Administrator City of Shakopee 129 East 1st Avenue Shakopee, MN 55379-1376 Dear Mr. Anderson Reference is made to our recant telephone conversation. Your concerns during our discussion centered around the assessor's valuation of vacant land in Shakopee and the valuation of motels and hotels in Scott County. We do not have enough data to compute any meaningful measures of the accuracy of the valuation of the motels and hotels in Scott County; therefore to gauge the accuracy of the valuation, I suggest you refer to the commercial/industrial valuation data which I have already given you. The results of our analysis of the valuation of this class of property would be our best estimate of the quality of the assessment placed on motel/hotel property. In order to provide you with information about the valuation of vacant land in Shakopee I asked Regional Representative, Steve Hurni, to research the question. His responses to my questions are shown in the attached report. I hope this information is sufficient for you needs. Very truly yours, ERALD D. GARSKI, Assistant Director Local Government Services Division (612)642-0474 GDG:smc AN EQUAL OPPORTUNITY EMPLOYER Vatua.ti.on o6 Vacant Land In Scott County Question 01: I4 the vacant Rand in .the city o6 Prior Lake, at .the junction o6 013 8 e42, being valued di66enentty than the vacant land in the city o6 Shakopee? Re4ponee: I bound no evidence that there was a di66eAent method being used in the city o6 Shakopee when eampa2ed to the city o6 Prion. Lake. Question 02: Are the vacant tote in the city 06 Pnio)L Lake, at the junction o6 ►13 9 x42 being valued at thein. actuat market vatue6? Response: The .inteneection o6 013 8 042 has three ca&nelc6 in the city 06 Savage and one conn¢), in the city o6 P)Liar Lake. A6 o6 this date, the)e is not city sewer on water avaitabte bon the three connens that ane in the city o6 Savage. The corner that is in the City o6 Prior Lake doe6 have city sewer and wate& available, however, the)Le has only been one sate in that subdivision, Jame-6 Fi"t Addition, and that sate took place in June o6 1983. This sate was bon the conn) lot, the most dez iAeabte tot, and was bon $100,000. A bank has been built on that tot. That tot is auveentty valued by the assessor's o66iee at $73,500. Although, there have not been any atheA. tots that have sotd, .there ane toffs that have been devetoped and they ane cu4Aentty valued 6nom $45,000 to $75,500. The vacant undevetoped tots in that subdivision a&e cuftAentty vatued 6rom $15,000 to $17,500. with onty one sate in the James FiAst Addition subdivision and with three o6 the connens undevetoped with no devetopment 60reseen in the neon 6ufiu)Le, I do not beet that there is enough neUabte data to make a determination as to whetheA. the vacant tots aAe being valued at thein actuat market vatue. Note: TheA.e ane vacant tote bon sate in Jame,6 First Addition and I contacted the Listing neat estate 6i)m, Edina Realty, to bind the Listing prices o6 the vacant Loth and the Length 06 time that the tots have been bon sate. The )Leat estate 6inm stated that att 06 thein agents were busy, but would refiunn my phone catt within an hour. The neat estate 6i4m did not return my phone Balt. I would suggest that the Scott County Assessor's 066ice research thio matter 6untheA, to assist thein 6uture valuation o6 the subdivision. Que6tion 03: Axe .the vacant Cote .in the city ob Shakopee being valued at theix aetuat market vatue6? Responhe: I xev.ieaed the vacant tote .in the Centuny Ptaza Second Addition, the Centu4y Ptaza Thi4d Addition, and the Funni.e6'a Second Addition. I bound .that thexe was enough hate data .in 1984 and 1985 to jurtiiy vatuing the vacant Cots companabte to the, now, developed tot6. The 1988 e6timated market vatuez, a6 oniginatLy e tabt.izhed box fihohe thxee zubdiv.ision6 by the Scott County Asbe,66ox'h Obb.iee, did not appeax to be .in exce6h ob thein market vatue6. However, these were bubhequentty xeduced to thein. 1987 e6timated market vatueh Ceveth by the 1988 Shakopee City Board o6 Equalization. I beet that, based on the amount ob sate data box those thAee hubdiv.isions, the %eductionA by the 1988 Shakopee City Board ob Equalization wue not justib.ied and the A""4ox'h vatue6 hhoutd have been maintained. 3� MEMO TO: Dennis Kraft, Acting City/�� nistrator FROM: Judith S. Cox, City CityV RE: Appointment of Acting City Clerk DATE: November 28, 1988 INTRODUCTION & BACKGROUND: I will be on vacation for two weeks beginning December 3, 1988. In the event there would be any documents which need signing before I return, there should be an Acting City Clerk appointed. Usually the City Administrator served in this capacity. Since we are between City Administrators and Mr. Kraft is serving as Acting City Administrator, we are recommending that someone else be appointed Acting City Clerk. Our recommendation is that Jeanette Shaner be appointed Acting City Clerk at this time. ALTERNATIVES- 1) Appoint Jeanette Shaner, Acting City Clerk 2) Appoint Dennis Kraft, Acting City Clerk 3) Other RECOMMENDED ACTION: Appoint Jeanette Shaner Acting City Clerk from December 5, 1988 until December 19, 1988. JSC/tiv J 'J MEMO TO: Shakopee City Council FROM: Dennis R. Kraft, Acting City Administrator RE: Proposal For Legal Services DATE: November 29, 1988 Attached please find a proposal that was submitted to the City by Alton Law Offices for the provision of legal services in response to the RFP the City sent out earlier. Please note that the letter of transmittal is dated November 10, 1988 which was the deadline for receipt of proposals. The proposals were put in an envelope and were placed in the mail drop box on the outside of City Hall. However, because of the size of the package and the limited dimensions of the mailbox the envelope became stuck in the mailbox. It was discovered this morning by City Staff. It is therefore my recommendation that this proposal be treated in a manner consistent with the other proposals that you received a week ago from Gregg Voxland. Please contact me if you have any questions on this matter. A meeting will be set up in the near future to discuss this item if the City Council so desires. DRK/tiv ALTON L,nv or•FICUS a m" un„s.Ah"" mn MRIe. .kmn kl.klnmhan,..t rm,nu1 Mina aPh—e12v kc7470 ui...ri..emrvn.n.le Win mmne:n5142,"rn. 9 rmpimlww.Suite PH 287 kla.achnil Road Il)rnv R.S-1 N.hul.flimxsnm 5511{\ 111),N.2x2 Rin.,F.,11,%ri,,,.......5lu`] Shakmxe,Minnesota SM" Shakopee, Minnesota November 10, 1988 Dennis Kraft, Interim City Administrator City of Shakopee 129 East First Avenue Shakopee , Minnesota 55379 Dear Mr . Kraft: This letter is in response to the request for proposals to provide legal services to the City of Shakopee . Our firm wishes to be considered for the Level II services position . With our background and experience, we believe we can provide the type of quality legal services the City desires in a prompt and personal manner . We are committed to the notion that the City needs legal counsel easily available and able to respond to inquir- ies without delay. In addition, we understand that an established community with its separate identity going through a period of change faces difficult legal problems. Our firm can provide the professional counsel necessary. However , there is more to lawyering than legal memoranda and opinions. We recognize there are people problems and issues associated with the legal issues. We are sensitive to this part of lawyering and strive to work closely with people on a personal and neighborly level. Recognizing the need to develop close working relationships with the City' s elected officials and staff, we are willing to meet individually with each council member and selected staff at any time, including during your selection process. Further , if the city should desire , we would be willing to establish set office hours, coordinated through the City Administrator to meet with any city officials or staff. Upon hire we assume and expect that we would spend several hours meeting with the city administrator , city engineer and engineering consultants, planning staff, Level I legal counsel and officials in order to gain familiarity with current city projects, plans and proposals. There would be no charge to the City for this initial time spent "getting up to speed." Dennis Kraft November 10 , 1988 Page 2 In regard to criminal prosecution, we believe we can assist the law enforcement effort of the city. We can lend support and assistance to the Chief of Police and the department. It is our experience that tough prosecution and efficient disposition of cases is in the best interest of Law enforcement and the public . In addition to simply prosecuting the cases charged , we could be available to consult with police officers during the charging process, as well as to meet with the officers from time to time to discuss department procedures and changing legal requirements. We have substantial familiarity with the Scott County Court House, its personnel and procedures. This can be a benefit in criminal prosecution . Compensation Our proposal is to bill the City at the rate of $65.00 per hour for the civil law portion of the position for the principal attorneys. This is a substantial discount from our normal hourly rate. We are willing to negotiate if the City desires an annual retainer contract. Those meetings that the City desires an attorney attend would be attended by a principal attorney, and the time would be billed at the $65.00 hourly rate, but not to exceed $180 .00 per meeting. Any necessary paralegal/law clerk time would be billed at $25.00 per hour and secretarial time would be billed at the rate of $10 .00 per hour . Based on the volume of cases for the past year , we are willing to charge a flat annual fee of $24 ,000 ($2,000, per month) for the misdemeanor prosecution by the principal attorneys. We would supply monthly time accountability reports of cases prosecuted . In the event that the volume exceeded 480 hours per year (40 hours per month) , additional time would be billed at $65.00 per hour . Associate time would be billed at $40.00 per hour , paralegal/law clerk at $25.00 , and secretarial at $10.00. Experience Alton Law Offices, including the former firm of Manahan and Tucker is a general practice law firm located in Shakopee . The firm and the individual attorneys have experience in local government law, small business activity and criminal prosecution. Dennis Kraft November 10 , 1999 Page 3 Regarding civil municipal litigation: The law firm has represent- ed several private clients in the defense of zoning , land use and other ordinance violations. We have significant litigation experience in a wide variety of civil law matters, including fully litigated trials in land use disputes. We have a working knowledge of the areas of law outlined in the request for proposals from the perspective of the local governing body and of the individuals regulated and governed . Further , we have represented clients in platting property and in condemnation matters in the past few years. Experience also includes representation of clients in regard to planned unit development, tax increment financing applications, conditional use matters, zoning variance issues, transfer of liquor licenses and charitable gambling. In the areas of employment law, we have familiarity with public employee disciplinary proceedings and union grievance procedures. We have considerable experience in the rapidly developing area of wrongful termination from employment and would be able to advise the City of Shakopee in relation to policies and procedures in the hire and termination of employees. We have working experience with the tax increment financ- ing process. This includes negotiation with the City of Shakopee and its bond counsel to secure approval of tax increment financing for development projects. Regarding criminal prosecution, we have experience with all aspects of criminal procedure and with substantive criminal law, both statutory and constitutional. Brian Alton will be the attorney responsible for the day to day administration of the Level II City Attorney position . The current principal responsibilities of Brian Alton include working one-half time as general legal counsel to Minnesota Health Care Administrators, Inc. The other one-half time is spent on general practice matters with an emphasis on small business and real estate . Brian Alton is willing to commit one-half time to the civil portion of the City Attorney position, as well as to oversee criminal prosecution. He will be available daily to address legal issues as they arise. John Manahan will be available to consult on various issues and perform services where his area of expertise would be of benefit to the City of Shakopee. Dennis Kraft November 10 , 1988 Page 4 Joan Miller will perform the civil, municipal , and criminal law work as assigned to her by the lead attorney. She will also be available to the City on a daily basis. Ms. Miller' s skills in communication and group dynamics along with her training and experience in the legal field will enable her to effectively fulfill this role. References The following is a list of representative clients : Stang Concrete Company, Inc. ; Contact: Susan Stang , 890-3604 Bauman and Furrie; Contact: Al Furrie, 445-5020 Minnesota Health Care Administrators, Inc . ; Contact: William Welpton , 496-2393 or 1-800-333-4057 Apple River Campground , Inc; Contact: Bryan Vanasse , (715) 247-3378 or 1-800-637-8936 Shakopee House Restaurant; Contact: Tony Strupeck, 445-1400 First National Bank of River Falls, Wisconsin; Contact: Jeff McCardle, (715) 425-2401 Uncommon Conglomerates, Inc. ; Contact : Clyde Eklund , 227-7000, We look forward to discussing this position matter with you in more detail. If you require clarification or more information , please do not hesitate to call. Enclosed are requested resumes. Very truly yours, ,-ALTON LAW OFFICES is - Brian D. Alton BDA/ma Encl BRIAN D. ALTON 287 Marschall Road Shakopee, Minnesota 55379 (612) 445-7470 EDUCATION HAMLINE UNIVERSITY SCHOOL OF LAW St. Paul , Minnesota Juris Doctor 1982 Activities: Publication Editor ; Journal of Minnesota Public Law, Co-Author "Farmland Preservation - Suggested Legislation" in Journal of Minnesota Public Law, UNIVERSITY OF WISCONSIN-RIVER FALLS River Falls, Wisconsin Bachelor of Science , Major : Political Science Minor : Metropolitan Region Studies, 1979 EMPLOYMENT ALTON LAW OFFICES Shakopee, St. Paul, MN and River Falls, WI 1982 - Date; Partner MINNESOTA HEALTH CARE ADMINISTRATORS, INC. Shakopee, MN 1987- Date; Vice President, General Counsel DISTRICT ATTORNEY, STATE OF ALASKA Anchorage, Alaska 1981 Legal intern OFFICE OF THE DISTRICT ATTORNEY, PIERCE COUNTY Ellsworth, Wisconsin 1980 Law clerk PROFESSIONAL American Bar Association and Family Law Section ACTIVITIES American Judicature Society Minnesota Bar Association and Real Property Section Wisconsin Bar Association The Mediation Center , St. Paul Panel of Mediators Shakopee Chamber of Commerce District 16 Community Council/Summit Hill Assoc. President, Board of Directors BAR ADMISSIONS State Of Minnesota State of Wisconsin United States District Court, District of Minnesota United States District Court, Western District of Wisconsin JOAN MILLER 287 Marschall Road Shakopee, Minnesota 55379 (612) 445-7470 EDUCATION UNIVERSITY OF MINNESOTA LAW SCHOOL Minneapolis, Minnesota Juris Doctor 1985 Activities: Legal Aid Clinic UNIVERSITY OF MINNESOTA Minneapolis, Minnesota Master of Arts; Counseling , 1979 Bachelor of Science; English Education, 1968 EMPLOYMENT ALTON LAW OFFICES Shakopee and St. Paul , MN 1987 - Date; Associate FAIRVIEW SOUTHDALF. HOSPITAL 1981-1982; Part-time counselor Family Renewal Center IND. SCHOOL DISTRICT 112 1976 - 1981; Counselor PROFESSIONAL ACTIVITIES American Judicature Society Minnesota Bar Association Hennepin County Bar Association The Mediation Center , St. Paul Panel of Mediators Legal Advice Clinics, Ltd. BAR ADMISSIONS State of Minnesota JOHN M. MANAHAN 8516 Russell Avenue South Bloomington, MN 55431 (612) 884-2435 - Home (612) 296-7091 - Office Education- St. Mary' s College, Winona, MN B.A. 1966 University of Minnesota Law School J.D. 1973 Military: U.S. Army, 1967 - 1969 (Served in Vietnam, 1968 - 1969) Professional: Krass, Manahan, Meyer and Kanning, Chtd. Shakopee, Minnesota Partner; 1974-1979 Manahan and Associates (Manahan, Johnson and Tucker) Shakopee, Minnesota Senior Partner; 1979-1987 Office of Treasurer , State of Minnesota St. Paul, Minnesota Deputy Treasurer; 1987 - Date Professional and Civic Activities: Eighth District Bar Association; 1974-1987 President - 1978 Shakopee Lions Club; 1974-1987 Board of Directors; 1975-1986 President - 1984 Shakopee Industrial Commercial Commission; 1980-1987 Vice-Chair ; 1985-1987 Shakopee Chamber of Commerce Board Member ; 1976-1982 President - 1982 Scott County Transporation Coalition; 1986-present Minnesota Valley Restoration project, Inc. (Murphy' s Landing) Board Member ; 1985-1987 Vice-Chair; 1986-1987 MEMO TO: Shakopee City Council FROM: Dennis R. Kraft, Acting City Administrator RE: Legal Opinion From City Attorney On The Relationship Of The Shakopee City Council And The Shakopee Public Utility Commission DATE: November 29, 1988 Attached please find a memorandum from the City Attorney on the above mentioned subject and a supplemental memorandum which also addresses this subject. Upon receipt of the initial memorandum I thought that the subject could be explored in somewhat more detail. Therefore I asked the City Attorney to provide additional information on this subject, which he has done. At the present time the Shakopee Public Utility Commission is interested in meeting with the City Council to discuss the relationship between the two groups. I believe it would be positive if the two groups can meet in the near future and attempt to discuss matters of mutual concern. Once Councilmembers have had a opportunity to review the City Attorney memoranda please contact Jack if you have any questions. DRK/tiv SUPPLEMENTAL MEMORANDUM On the Relationship of the Shakopee City Council and the Shakopee Public Utility Commission Recently at the request of the Utility Commission and the Shakopee City Council, I issued a Memorandum on the relationship between the two bodies and I thought I had answered all the concerns between them when I wrote that the Commission shall have "full, absolute and exclusive control of and power over any and all utilities placed under its control including the power to operate, extend, modify or change the same and to establish and maintain a reserve fund which shall be equal to 10% of the gross receipts collected during the preceding month. The only control over the Commission that the Council has is in the appoint— ment of the members of the Commission." MSA 453.03; 453.13; 453.21 Apparently, 1 was not sufficiently specific in the memo, a copy of which is hereto attached for reference and made a part hereof, hence this supplement. The key words is the legislation governing power granted to the Commission are that the Commission shall have full, absolute and exclusive control of and power over all utilities under its control. This broad grant of power gives the Commission exclusive control over rate fixing and disposition of all monies collected by it with the provision that the Commission shall have the power to "enter into an agreement with the Council for the payment by the City for utility services and other services and to agree on payments to be made by the Commission to the City in lieu of taxes and the transfer of surplus utility funds to the general fund of the City." MSA 412.361 (5) See also City Code 2.54 and 2.54(7) The amount of such payment as well as the time thereof and the manner, as a friendly gesture, is left open to possible mutual agreement, but the bottom line is that the Utility must agree to the amount and time of payment. The Council cannot arbitrarily set an amount or time or terms of payment nor can the voters of the City. The only time the voters of the City come into play is if a question of abolishing the Commission was put to a vote and this was done once already and was defeated. It follows that if the Commission agrees to the terms of any ordinance such as the ordinance of September 27, 1977, it would be effective and valid as long as the Commission is in agreement, but if the Commission changes its position and does not agree, the ordinance would be ineffectual. To reiterate, the Council, without agreement of the Utility Commission, cannot unilaterally set rates and the times and methods of payments. If I can be of any further assistance to either party please contact me. Dated this 23rd day of November, 1988. Very truly yours, lius A. Coller, II Shakopee City Attorney �f Memorandum on the relationship of the Shakopee City Council and the Shakopee Public Utility Commission Recently I have been instructed to point out and review the relationship between the Shakopee City Council and the Shakopee Public Utility Commission. In 1950 the City of Shakopee was a City of the Fourth Class and was operating under a Special Legislative Charter granted in 1875 and revised 'in 1899 by Charles G. Hinds, City Attorney. In December of 1950 the Common Council of the City adopted the enabling legislation to create and establish a Water, Light, Power and Public Building Commission pursuant to Minnesota Statute Chapter 453. The Commission so established was to consist of 3 members who shall have full, absolute and exclusive control of and power over any and all utilities placed under its control including the power to operate, extend, modify or change the same and to establish and maintain a reserve fund which shall be equal to 10% of the gross receipts collected during the preceding month. The only control over the Commission that the Council has is in the appointment of the members of the Commission. MSA 453.03; 453.13; 453.21. At the present time the Municipal utilities are governed by Minnesota Statutes Annotated 412.321, etc. No limitation was placed on powers previously granted but they were clarified by 412.361 (5) by providing the commission shall have the power to enter into an agreement with the Council for the payment by the City for utility services and other services and to agree on payments to be made by the commission to the City in lieu of taxes and the transfer of surplus utility funds to the General Fund of the City. MSA 412.361 (5) See also City Code 2.54 and 2.54 (7) In April of 1967 the voters of Shakopee voted on the following proposition "Shall the payments by the Shakopee Public Utility Commission to the General Fund of the City be increased by 6% as provided by Ordinance No. 265 to provide a total payment to the City of Shakopee of 12% of the gross receipts of the Utility Commission from all sources except rentals?" The proposition carried and accordingly, the Council passed Ordinance 265 on February 28, 1967 increasing the payments by the Commission to the General Fund of the City to 12% of the gross receipts. This was repealed by Ordinance No. 1977 and replaced by Resolution of the Commission setting the contribution to the City at $230,000.00 or 22.5% of its gross margin beginning January 1, 1978 for the calendar year. Since 1978 the Council and the Commission have frequently by mutual consent rearranged the rate changes. Clearly the Commission and the Council are not bound by the 1967 election because the Commission by Statute has the sole and exclusive power to fix the rates and to adopt rules and regulations with or without consultation with the Council. MSA 412.361 (4) However, as a matter of practice,and I think good policy, payments have been mutually agreed upon and as long as the payments conform to the current agreement, accounts between the City and the Utility are even. Respectfully submitted, Julius A. Coller, II Shakopee City Attorney