HomeMy WebLinkAbout01/10/1989 TENTATIVE AGENDA
ADJ.REG.SESSION SHAKOPEE, MINNESOTA JANUARY 10, 1989
Mayor Dolores Lebens presiding
1] Roll Call at 7:00 P.M. for a joint meeting with the Shakopee
Public Utility Commission
2] Opening Comments by the Mayor
3] Overview of SPUC operations and objectives by SPUC
4] Response to allegations by SPDC
5] Joint discussion of all other issues
6] Need to re-establish City Council/Commission working
relationship
7] Construction of public improvements
8] Other business:
9] Adjourn to Tuesday, January 17, 1989
Dennis R. Kraft
Acting City Administrator
RESOLUTION E
A p—ESOLL"TION CREATING A WATER, LIGIC AND POWER AND PUBLIC
BUILDING COK41SSION
BE IT RESOLVED by the Common Council of the City of Shakopee,
Minnesota, as follows :
Section I. That pursuant to the laws of the State there
is hereby created, established and set up for the City of Shakopee
a Water, Light, Power and Public Building Commission to have full,
absolute and exclusive control of power over the water, light,
power plants and public buildings , and all parts , buildings ,
attachment, and appurtenances thereto, and all apparatus , machinery
and material of every kind and description used or to be used in
operating these plants or any or either of them; and the power
and authority to extend, add to, change or modify the same and to
do any and all things in and about the same which said Commission
may deem necessary, expedient or proper for the economical opera-
tion of the same but shall not have the power to sell, lease,
rent or in any way dispose of or encumber or suffer or permit the
property or any part thereof to come under the control of any
other person or corporation. The Commission shall have authority
to buy all material and employ all help necessary to operate the
water, light, power plant and public buildings of said City.
Section II. That said Commission is empoered to
-� supervise, manage and operate the sewer system of said City
-- as it now exists or is subsequently improved, extended or altered
by the City and so operate any and control any other utilities
subsequently acquired, in so far as permitted by law, so to do.
Section III. That the following persons are hereby
appointed and declared to be Commissioners for the terms of
office as follows :
1. R. C . Condon for a three year term.
2 . Dr. J. E. Ponterio for a two year term.
3. Charles Fricke for a one year term.
and the foregoing shall hold their office until their
successors are appointed and qualified as provided by law.
Section IV. The Commission shall have the power and
authority to employ a Secretary who shall qualify for office
and furnish a corporate bond running to the City in an amount
fixed by the Commission as required by law.
Section V. The Commission hereby created shall on or
before October 31st in each calendar year starting with October
31st, 1951 transfer to and pay into the General Fund of the City
of Shakopee an amount not less than 4% of the fixed assets of
the water, sewer, electric utilities and income producing
buildings.
Section VI. The Commission hereby established, shall
organize and commence operation April 1st , 1951.
Passed in adjourned regular session of the Common Council
of the City of Shakopee, Minnesota, held this 12th day of
December 1950.
Lawrence Kreuser, Presi}ident
F.A. Dircks , City Rec . Approved this 14th day of Dec. 1950
Clarence J. Czaie, N:eyor
Ch. - 1 .6 3
Published Notice
ORDINANCE NO. 265
An Ordinance to Increase Payments by Shakopee Public Utilities
Commission In Liau of Tazes
THE COMMON COUNCIL OF THE CITY OF SHAKOPEE DOES
ORDAIN:
SECTION I: Payments to be Increased
From and after the 15th day of the first month following
the approval of the increase hereby ordained, the payment by
the Shakopee Public Utilities Commission into the general fund
of the City of 6% of the gross receipts of said Commission,
excepting all rentals collected, and as provided by the Amended
Charter, shall be increased by 6% to provide that the payments
to be made by said Commission to the general fund of the City
_ of Shakopee shall be 12% of the gross receipts of said Utilities
Commission from all sources, excepting rentals collected.
SECTION 11: Subject to Approval
The 6% increase hereinbefore provided shall, before it
becomes effective, be approved by the majority of the voters of
said city voting on the question at the next regular election held
hereafter.
SECTION III: Authorization
The proper city officials are busby authorized and directed
to place the question of said increase as hereinbefore pproposed
on a ballot for the next regular city election to be beld April
4, 1967.
Passed in adjourned session of the Common Council held
this 28 day of February, 1967.
'i A. J. BERENS
President of the Common Council
ATTEST:
EtELVIN P. LERENS
City Recorder
Approved this 1st day of March,
1967.
.� RAY SIEBENALER
_ Mayor of the Qty of Shakopee
Prepared end approved this
10 day of February, 1967.
JULRIS A. COLLER
City Attorney
(Pub. to Shakopee Valley News, March 9, 1967). (36778)
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• 3
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
ADJ.REG.SESSION SHAKOPEE, MINNESOTA AUGUST 9, 1977
Mayor Harbeck called the meeting to order at 5:03 P.M. with Cncl.
Hullander, Reinke, Ward and Leroux present. Cncl.Lebens was absent.
Also present were Utilities Commissioners Bishop, Nolting and Reinke;
the City Adm. ; City Treasurer; and Mr. Van Hout and Mr. Leaveck from
r the Shakopee Public Utilities .
Hullander/Leroux moved to reconsider Variance Resolution No. CC-147,
a size variance from the Sign Ordinance, which was -acted upon at the
July 26th .meeting. Cncl .Hullander explained that the reason for his
motion is because the applicant would like to make another proposal
at this evenings meeting. Discussion followed.
Motion carried unanimously.
Hullander/Leroux::moved..to .table -Variance 'Resolution .No-. .CC-147_ until -
the. next-7egular...session-; Motion::cazried,unanimously.
Discussion commenced -on- the-contribution-of the -Shakopee Public-_
Utility Commission to-the -General- Fund. of :the -City of Shakopee. The
City Administrator and -the Utilities Manager prepared a memo, which-
was distributed prior tothemeeting, explaining. .the problem and
recommending a solution. The present contribution is 12% of gross
revenue. They recommended that this formula-be changed to 22.5% of
gross-margin. Mr. Jerome -Jaspers -of-.Jaspers, Loosbrock Inc. ,. stated
_.
thathe -felt this -was-.a -better formula for::the -Shakopee a-Public Utilities
-
Commission:-
Commissioner_Bishop .stated -that he-felt!this formula would .allow :the
-
Utilities to increase -their reserves-: The-present -formula was not
allowing them -to -do-this.
-
- The-_City _Adm. :and the•-Utilities Mgr:-also.secommended Yhat: .the._contributi
of-3he__Utiii'ties be -set .at.323%-.of the.-gross margin with a :min3-mum
_. contributionof. $230,000.'.per_-_year..__ Secondly_;.- .they-recoimsended -thatahe
H. City ;pay for the--:cost :of electricity :for ;city .buildings_-and-:that-the =
percentage -of-: :gross margin -be--adjusted :to .reflict.*these additional :costs.
z
Thirdly;- they recommended-thatz-tha Utilities -continue- to-:provide free -
_ service and,-maintenance-for the :street _Iighting: . --
Ward/Hullander.move&:to_:concur. with the._threexecommendations,:and-rthat
the: city staff draw-.up=theappropriate resolution or-ordiinance-:to u
_--"- - reflectJThis.: . Motion--cazried,�unanimousl
Y•i=
Ass '.t.' Aity.�Attorney. Rod -Krassreported :thathe:.had,received a letter. fror.
Mr: Allendorf _of:Jtahr.msking.that the_-industries::-be. kept --informed ion_:
the_Vrogress of::the -negotiations.with =Northern .States. .-Power.- He is keep-
ing them-informed. -
Commissioner-Bishop reported.-.that:=the-iXilities ..will.'be:_•meeting with
--
representatives from N.S.-P..: again tomorrow.:. The:.currentdraft..-nf an :-
_
UKUINANCB NO. 413
AN ORDINANCE AMENDING
ORDINANCE 265 3
INCREASING PAYMENTS BY
SHAKOPEE PUBLIC UTILITIES COMMISSION
IN LIEU OF TAXES
The City Council of the City of Shakopee does ordain as
follows:
Section 1: Section 1 of Ordinance 265 is hereby repealed
in its entirety, and the following substituted therefore:
"Section 1: Payments to be Established
From and after the 1st day of January, 1978, the
payment by the Shakopee Public Utilities Commission
into the general fund of the City of Shakopee shall
be established by the City Council of the City of
Shakopee by resolution: - -
Section 2• Repeal
Sections 2 & 3 of Ordinance 265 are hereby repealed in
their entirety.
Section 3 : Effective Date
This ordinance shall not take effect until January 1, 1978.
Passed in adjourned regular session of the City Council this li
27th day of September, 1977 .
Mayor of the City of Shakopee
ATTEST:-
-`
Ci Admi strator
Prepar�� X
ved by:
S , MANAHAN, MEYER & KANNING
Assistant City Attorneys
e
/
A RSCOL'viICV r'3T_ABLISRING ?AY.MENTS
3Y THE SH.9K0Y:E PU3LTC U:ILITI,:.3 C0:1?IiS3Zi.A
TO THE C1=1 OF S:-IA_KOFEZ IN LIEU OF TA.U'J
BE iT RESOLVED 3Y THE CITY COURGIL Or^ THE CITY CP SIUKOPEE
AS FOLLOWS:
1. The Shakopee A.:blic Utilities Commission did, by Resolution
No. 193 dated 12112177, agree to and therefore shall contrib+sta to the
general fund of the City of Shakopee an amount annually equal to the
greater of the following:
a. $240,383.00 or
b. 23.77 per cent of its gross margin, gross
margin being defined as the total gross
sales :sinus the total cost of purchase
energy.
2. Said payments shall commence on Jaunary 1, 1978. One—
twelfth of the annual amount shall be paid monthly on the first day
of each month commenctn$ January 1, 1975. -
Adopted in regular session of the City Council of the City of
$$akopee, iiiinesota, he'_d t:ia 13th d:iy of December, 1977.
tdayor of the City of Shakopee
ATTEST:
v
Cityle"Vll
Prepared and approved as to
f0 this this * day of
> 1977.
Assistant City Attorneys
RESOLUTION #272
A RESOLUTION CLARIFYING FACTORS USED IN THE
DETERMINATION OF THE CONTRIBUTION FROM THE
SHAKOPEE PUBLIC UTILITIES COMMISSION TO THE
CITY OF SHAKOPEE IN LIEU OF TAXES
WHEREAS, The Shakopee Public Utilities Commission and the Shakopee City Council
did meet in joint session and did agree on the classification of factors in the
determination of the annual contribution as described in Shakopee Public Utilities
Commission Resolution #193,
THEREFORE, BE IT RESOLVED, that the calculation shall be as follows:
GROSS SALES: - ELECTRIC: WATER:
Residential Electric XX
Residential Water Heating XX
Rural Sales XX
Rural Water Heating XX
Commercial Sales XX
Customer Penalties IDC
Power Adjustment XX
Water Pumping - XX
Water Sales _ XX
Total Gross Sales XX XX
COST OF ENERGY:
Wholesale Electric XX
Power for Pumping _ XX
Total Cost of Energy XX XX _
Gross Margin XX XX
Times 23.77% .2377 .2377
Payment to Citv XX XX
Passed in adjourned regular session of the Shakopee Public Utilities Commission
this 15th day of March, 1954.
- ' President: Wallace Bishop
ATTEST:
I Barbara Mer. en, Commission Secretary
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, I 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 wordsir. 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. Collar, II
Shakopee City Attorney
�f
I
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.
Rinds, 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,
abao11-4ts and amcl. sZlme cmatsol of and posse: over avq and all utilities 91aced 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 121 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 22.51 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
TO: John Anderson, City Administxatoc
FROM: Lou Van Hout, L'tiiities Manager
DATE: 10/25/88
RE: Information request from City Council
Enclosed is the answer to the request for certain pay information
as requested in your memo.
The information on assets is being assembled and will be sent
within a few days. We have always gone by the information in the
annual audit but we will try to provide the current information
in the manner it is desired. - -
The information on attorney fees will have to be located in the
files from previous years. We will be working on that also. We
should know shortly how long it might take to get that
information together.
1// er
a
Name Ti le Length o` Servico Base Pay
1968
Louis Van Hout Manager i2 years 55, u93 .U:I/Year
Raymond Friedges Line Supt. 28 years 45, 777. 00/Year
Barbara Menden Comm. Sec.
Office Super. 21 years 29, 306 .00/Year
Barbara Nevin Billing Clerk/
. Typist 15 years 9.81/hour
Sharon Moonen Billing Clerk/
Typist 9 years 9.81/hour
Sherri Anderson Billing Clerk/
Typist 8 years 9.81/hour
Nancy Huth Billing Clerk/
Typist 17 years 9.81/hour
Terrill Roquette Technical Asst. 9 years 13.76/hour
John Dellwo Serviceman 18 years 16.92/hour
Marvin Athmann Crew Foreman 13 years 18.33/hour
Eugene W. Pass Lineman 1st Class 16 years 16.92/hour
Kent Sanders Lineman 1st Class 9 years 16.92/hour
Roger Hennen Lineman 2nd Class 2 years 15.24/hour
Arthur Young Senior Water Systems
Operator 9 years 15. 93/hour
Kenneth Mender. Water Systems Operator
1st Class 7 years 12.82/hour
James Dunning Part time 7 .51/hour
Vincent Marschall Meter Reader 8.03/hour
James Cook Commission President 150.00/month
Barry Kirchmeier Commissioner 125.00/month
Jim Kephart Commissioner 125.00/month
T0: John Ander ion, City Administrator
FROM: Lou Van lout , i%trim;<::: Manayei
RE: Information request un Assets
DATE: 10/28/88
As a previous memo stated, we usually use the data from the most
recent audit when discussing financial matters, however, the
current information is available.
With the exception of the Customer Deposits Account which has to
be kept separate from our other funds, and the Cash on. Hand which
is kept at S 400.00 throughout the year, all the rest of our
financial assets are reported on the monthly Cash Flow Statement
prepared by the City Treasurer.
A copy of that ,report for 9/30/88 is attached for reference_
A listing of all financial assets is as follows:
Checking Account Balance: 7, 677. 19
Investments : ~3• 578' 713. 30
Subtotal from Cashfiow Statement: 3, 386, 390.49
(as on 9/30/88. Cash Flow Statement )
Customer Deposits Account: 36, 133.74
Cash on hand 400.00
total: S 3,422, 924. 23
More information on investments is detailed on the attached list
that has ween furnished by the Greg Voxland.
Shakopee Public Utiliey Co®ission
Cash Flow Statement
September 30, 1988
Electric Water Sever/Garbage
Fund Fund fluid Total
---------------------------------------------------- --
Receipts $706,301.14 $6,164.32 $87,002.38 $799,467.84
Interest 34.02 22.68 56.70
Disbursements 679,509.78 10,873.76 87,002.38 797,185.92
------------------------------------------------------
Net Increase
(Decrease) 26,825.38 (24,686.76) 0.00 2,138.62
Balance Begin 2,367,998.87 1,016,253.00 0.00 3,384,251.87
------------------------------------------------------
--------------
Balance End 2,394,824.25 991,566.24 0.00 3,386,390.49
In checking ---_�
Not Posted Checking Investments
Balance Begin 90,207.59 (129,669.02) 3,423,713.30 $3,384,251.87
Balance End 0.00 7,677.19 3,378,713.30 $1,386,390.49
Interest Received
---------------
REPO $0.00
CHECKING 56.70 S Rte ;:,Rom G e =/y,
COMM P_4PER 0.00
FHL 0.00
4M Fund 0.00 Tye des r A-/Z e Z:�2o M 6,0,
T Note 0.00
T Note 0.00
Cert. Deposit 0.00
-------------
Total $56.70 -
This statement based on data supplied by SPUC staff.
SHAKOPEE PUBLIC UTILITIES COMMISSION
INVESTMENTS
October 1988 Printed 27-Oct-88
1988
INV Broker Purchase Maturity YIELD basis
-------------------------------------------------------------
TR DB 06-May-88 15-May-92 8.54 555,799.13
TR DB 25-Feb-88 15-Feb-91 7.67 522,193.03
T Nate ML 03-Dec-85 15-Feb-91 9.21 380,000.00
FHL DB 25-Nov-87 26-Nov-90 8.40 250,000.00
FHL DB 25-Aug-87 27-Aug-90 8.95 200,000.00
UST DB 29-May-87 15-Aug-89 8.22 152,096.93
TR DB 25-Feb-88 15-Aug-89 .7.35 386,638.80
T Note ML 30-Jun-86 15-May-89 7.02 339,799.17
4M 592,186.25
-----------------------------------------
Tota1 3,378,713.30
-----------------------------------------
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LAMOFFICES
KRASS b MONROE
CHARTERED
Phillip R.Krasa Marseiall Road Business Center
Dennis L Monroe - 327 Marschall Road
Barry K. Me.er _ P.O. Box 216
Jay D.Goldberg i i r
Tr nr R.'Mist. Shakopee,Minnesota 55379
Mad,J.Moxness Telephone(612)4455080
D'arw M.Carlson NOV 1 1. 1938 FAX(6121445-7640
Robert J.Walter
Lachlan B.Muir
Jarnes B.Crdt ✓k r sy ti .' 'k[^
Colleen M.Trende
Odm D.Te Slaa
'Patric: °.\Wle,
Kent A. Colson.CPA November 10, 1988
Mr. Lou Van Rout
Shakopee Public Utilities
1030 East Fourth Avenue
Shakopee, MN 55379
Re: City of Shakopee / Shakofee Public Utilities Commission
Our File No. 1-1373-2
Dear Lou:
Enclosed please find a copy of the Memorandum 1 have done for Gregg. The
only action required by you at this point is to make an application for the Tax
ID Number, which I suggest you do as quickly as possible. Call if you have any
questions.
Very truly yours,
BRASS E MONROE CHARTERED
Phillip R. crass
F7S:miv
Enclosures _
cc: LB'regg Voxland
MEMO
TO: Gregg Voxland
FROM: Rod
DATE: November 9, 1988
RE: City of Shakopee / Shakopee Public Utilities Commission
Pile No. 1-1373-2
INTRODUCTION
You has asked me to do research on the issue of whether or not Shakopee
Public Utilities Commission (SPUC) is considered a separate entity from the City
of Shakopee. Specifically, you have asked me to research four separate issues:
I. Whether the City must figure SPUC employees in its affirmative action
program.
II. Whether the City must figure SPUC employees in its comparative value
work program.
III. Whether SPUC is gntitled to its own federal employer identification
number.
IV. Whether SPUC is entitled to its own discriminatory benefit plan
separate from the City of Shakopee pursuant to Internal Revenue Code
Section 89.
The short answer to issues I, II and III is SPUC should be considered a
separate, independent, autonomous unit from the city government and should be
treated as such. The City need not include SPUC employees in its affirmative
action program or in its comparative work value program. SPUC should be given
its own employer identification number. Regarding issue IV, it appears that SPUC
does not meet the necessary criteria to have its own discriminatory benefit plan
separate from the City of Shakopee.
DISCUSSION
The provisions regarding public utility commissions (PUCE) are enumerated
in Minn. Stat. 412.321 through 412.391. Minn. Stat. 412.331 empowers a city to
establish a PUC.
Establishment of a Commission. Any statutory city may by ordinance
expressly accepting the provisions of Sec. 412.331 to 412.391 establish
a public utilities commission with the powers and duties set out in those
sections. Any water, light, power and building commission now in existence
-1-
in any statutory city shall hereafter operate as a public utilities
commission under Sec. 412.321 to 412.391.
Minn. Stat. 412.361, Subd. 2, empowers the commission to hire employees and set
their compensation.
The commission shall have the Power to employ all necessary help for the
management and operation of the public utility, prescribe duties of
officers and employees and fix their compensation. (Emphasis added)
I. whether the City must figure SPUC employees in its affirmative action
program.
Minnesota law requires that all employers, including cities, employing more
than 20 full-time employees to have an affirmative action program in order to
receive state grants and contracts exceeding $50,000.00. 1988 Minn. Session Laws
(1988 Amendment to Minn. Stat. 363.073) . The issue that must be determined is
whether the City of Shakopee or SPUC is considered the employer for utility
employees.
Minnesota statutes and the general consensus is that SPUC and not the City
is considered the employer of utility employees and therefore holding SPUC
responsible for its own affirmative action program. The City is not required
to include SPUC's employees in its affirmative action program.
There are many factors used to determine which party is the employer. The
factors included are who has the power to hire and fire, and who has the power
to fix the employee's compensation. One of the more important factors considered
when determining which party is the employer is which governmental unit has the
final budgetary approval authority for its employees. Minn. Stat. 179A.03, Subd.
15(c) says an employer is:
the governing body of a political subdivision or its agency or
instrumentality which has final budgetary approval authority for its
employees. However the views of elected appointing authorities who have
standing to initiate interest arbitration, and who are responsible for the
selection- direction discipline. and discharge of individual employees
shall be considered by the employer in the course of discharge of rights
and duties under Sec. 179A.01 to 179A.25. (Emphasis added)
As I said above powers enumerated in Minn. Stat. 412.361, Subd. 2 give SPUC
the power to hire its own employees and fix their pay. It follows that SPUC is
responsible for establishing and maintaining its own affirmative action program.
We spoke with Dick Kirk=, executive administrator of the Minnesota
Municipal Utilities Association, and he agreed with this line of thinking. He
said that PUC employees are considered public employees, but through the
provisions enumerated in Minn. Stat. 412, PUC is considered the employer and is
responsible for its own affirmative action program. He said that Minn. Stat.
412 considers PUC as an independent autonomous governmental unit which is part
of the City. Since it is in charge of choosing its own personnel, it should not
be considered in the City's own affirmative action program. Kirkum analogized
PUC as being similar to the Metropolitan Airport Commission (MAC) . The MAC
-2-
employees are state public employees but the state does not have the power to
hire and set wages for the MAC employees. This duty is left to the commissioners
of MAC. The Commission is responsible to file its own affirmative action program
separate from the state.
We have spoken to many cities with PUCs and found this is the general
consensus of other cities. I contacted several cities which are of similar size
to Shakopee and have a PUC set up similar to SPDC. Of those cities I contacted,
including Alexandria, Willmar, Moorhead and Grand Rapids, all the PUCs filed a
separate affirmative action program from the City.
II. Does the City Have to Figure SPUCs Employees Salaries in Its Comparable
Work Value Program?
The answer to this issue is provided in the Minnesota Statutes also. As
related in Section 412.361, Subd. 2 (at the top of page 2 of this memo) the
Commission has the necessary authority to make employment relationships it deems
proper. Other applicable statutes relating to this issue include the following:
Minn. Stat. 471.991, Subd. 3 defines comparable work value as:
"Comparable work value" means the value of work measured by the skill,
effort, responsibility, and working conditions normally required in the
performance of the work.
Minn. Stat. 471.992, Subd. 1 requires municipalities to have a comparable work
value program.
Subject Two, Sections 179A.01 and 179A.25, but notwithstanding any other
law to the contrary, every political subdivision of this state shall
establish equitable compensation relationship between female-dominated,
male-dominated, and balance classes of employees. (Emphasis added)
It would seem that SPUC for purposes of this comparable work statute can
then be considered a political subdivision and thus has the authority to do its
own comparable workatudy, which I understand has been done.
This is also the general practice for other PUCs we contacted. Dick Rirkum
said that as far as he knew, PUCs have their own comparative work program figured
carate from the cities. All the cities we contacted kept their PUCa comparable sel
7k value program separate from the city for the reasons I just explained. wot
.. Is SPUC Entitled to Its Own Employer Federal Identification Number? II)
I could not find any specific authority that required a PUC to have its
: federal tax ID number (TIN) . It appears for all practical purposes SPUC ow
,old have its own TIN. she
We called the Internal Revenue Service and an agent said if the City wanted _
have a separate TIN assigned to SPUC, there would be no problem. TINS are to
,d for reporting employer's earnings. Since SPUC operates from a separate USE
roll and a separate budget from the City, it makes good sense that SPUC should pay
-3-
have its own TIN separate from the City's. The agent I spoke with also said if
the City wanted to consider SPDC a separate entity from the City or a separate,
independent autonomous unit from the City, SPUC would need its own TIN.
This is also the general consensus with the other cities we contacted.
All the cities we contacted have separate TINS for the PVCs.
I recommend that SPUC apply for its own TIN immediately so that it is in
place for the beginning of calendar year 1989.
IV. Is SPUC Allowed to Have Its Own Discriminatory Benefit Plan Pursuant to
Internal Revenue Code Section 897
Section 89 deals with discriminatory benefit plans for highly compensated
employees. The applicable section which appears to apply to SPUC is IRC Sec.
89 (2) (5) which says:
Separate line of business exception. If, under Section 414 (R) , an
employer is treated as operating separate lines of business for a year,
the employer may apply the proceeding provisions of this section separate
with respect to employees in such separate line of business. The preceding
sentence shall not apply to any plan unless such a plan is available to
a group of employees as qualify under a classification set up by the
employer and found by the Secretary not to be discriminatory in favor of
highly compensated employees. (Emphasis added)
The code does not define what a 'separate line of business' is. These
requirements are provided in the subsequent narrative from the joint conference
agreement.
The commentary provided by the joint conference agreement suggest that SPDC
is not entitled to have its own discriminatory benefit plan. SPUC does not meet
all of the requirements. For the employer to qualify under the discriminatory
benefit plan the employer must prove to the satisfaction of the Secretary that
the employer operates separate lines of business or operating units for bona fide
business reasons. The conference committee details several requirements that
each separate line of business or operating unit must pass in order to be
considered a separate unit. The requirement that SPUC fails is that each
operating unit must have at least 50 employees. An operating unit is not
considered separate for purposes of non-discrimination rules unless it has at
least 50 employees. SPUC has fewer than 20 full-time employees. Therefore, it
fails this requirement and cannot be considered a separate unit from the City
and have its own discriminatory benefit plan.
It appears this is the consensus of the cities we contacted. All the
cities we contacted have no such benefit plan in the PUC (their PUCE had between
20-30 full-time employees also) . In fact, none of the people we talked with had
ever heard of such a plan.
Moreover, SPUC does not meet the "Safe Harbor" exception noted in the
Thompson Publishing Group "Practical Guide to Section 89 Compliance' Employer's
Handbook we consulted.
-4-
CONCLUSION
For the issues regarding affirmative action, comparable work value and
employer ID number, SPUC should be considered an independent autonomous
government unit separate from the City. The City should not figure SPUC
employees in its affirmative action and comparative work programs. SPUC is
responsible for having its own affirmative action and comparative work value
programs. SPUC should also have its own employer ID number separate from the
City. It appears that SPUC cannot be considered a different entity from the City
for purposes of having its own discriminatory benefit plan.
Please let me know if you want me to do anymore research on these issues.
/mlw
it
-5-
UW OFFICES
KRASS & MONROE
CHARTERED
Phillip R.K. Marschall Road Business Center
Dennis L Monroe 327 Marschall Road
Bang K.Meyer P.O. Box 216
Jay D.Goldberg
Trevor R.Mlsten Shakopee,Minnesota 55379
Mads J.Moxnesv Telephone(612)445-5080
Dune M.Carlson FAX(612)445-7640
Robert J.Walter
Lachlan B.Muir
James B. Croft
Colleen M.Tia de MEMORANDUM
Odin D.Te Slag
Patricia A.Weiler
KeftOA.Carlson, reg Voxland
FROM: Phillip R. Brass
DATE: November 11, 1988
RE: SPUC Disbursements - Minnesota Statute 412.371
You have asked me to look at Section 412.371 of Minnesota Statutes to determine
whether or not the City and the Public Utilities Commission are properly
handling receipts and disbursements. The Statute is very short, and I enclose a
copy.
A reading of the Statute indicates to me that the present handling of receipts
by the Public Utilities Commission is in accordance with this Statute. As I
understand it, all receipts are deposited and the records of those deposits are
delivered to your office.
It appears, however, that this Statute requires that the Office of City
Treasurer prepare the actual checks used for payment of Public Utilities
Commission bills and expenses. The Statute contemplates that the Secretary of
the Public Utilities Commission, Lou Van flout, shall draw an order upon your
office for the proper amount allowed by the Utilities Commission at its
meetings. Mr. Van Hout's order is to be countersigned by the President of the
Commission and when presented to you, you are obligated to honor that order and
make the payment requested. The Statute contemplates that the Public Utilities
Commission approve claims in the same manner the City Council does. On the
City's side, after the Council approves the bills, an order signed by the Mayor
and City Clerk is given to your office for payment. Exceptions to this system
are noted in Section 412.271, Subd. 1, a copy of which I also enclose. The
exceptions for the City and, therefore, I assume for the Public Utilities
Commission, include the payment of judgments, salaries and wages previously
fixed by the Council (Commission) or by Statute, principal and interest on obli-
gations, rent and other fixed amounts, the exact amount of which have been pre-
viously determined by contract.
Section 412.271 includes two other exceptions noted in Subdivisions 4 and 5, a
copy of which I also enclose, which exceptions are, as you can see, very
limited.
Mr. Greg Voxland
Page 2
November 11, 1988
It appears that Section 412.371 is going to require some modification in the
present method of payment of the Utilities Commission's claims and expenses.
Please feel free to contact me should you have any further questions.
prk/ph
Enclosures
STATUTORY CITIES
§ 412.271
therefor or upon its own initiative. and cost
3. Purposes thereof may be paid out of general revenue
Village council desiring w add additional fund b s ial mannm mor by issuance of
pump to its water system could finance project Y pec
by issuing certificates of indebtedness. Op. taz anticipated certificates. Op.AttYGen.,
Atty.Gen., 469{_11, 472, May 13, 1955. 1952, No. 136, p. 258.
Village council is empowered to establish
and improve a strew either upon a petition
412271. Disbursements
Subdivision 1. Method. No disbursement of city funds, including funds
of any municipal liquor dispensary operated by the city, shall be made except
by an order drawn by the mayor and clerk upon the treasurer. Except when
issued for the payment of judgments, salaries and wages previously fixed by
the council or by statute, principal and interest on obligations, rent and other
fixed charges, the exact amount of which has been previously determined by
contract authorized by the council, and except as otherwise provided in
subdivisions 4 and 5, no order shall be issued until the claim to which it
relates has been audited and allowed by the council.
Solid. 2. Claims, payment. Except for wages paid on an hourly or daily
basis, where a claim for money due on goods or services furnished can be
itemized in the ordinary course of business the person claiming payment, or
the claimant's agent, shall prepare the claim in written items and sign a
declaration that the claim is just and correct and that no part of it has been
paid; but the council may in its discretion allow a claim prepared by the clerk
prior to such declaration by the claimant, if the declaration is made by an
endorsement on the order check by which the claim is paid as provided
below. Whenever work for which wages are to be paid on an hourly or daily
basis is
hoethe
solskeech
name of eachemplyeeand hmmber of hourshallkeep
worked byad
the timekeeper, supervisor, or other officers or employee having knowledge
of the facts shall sign a declaration that the facts recited on the payroll are
correct to the best of the declarant's information and belief; and when any
claim for wages listed on a payroll is paid, the employee shall sign a
declaration, which may be a part of the payroll, to the effect that the
employee has received the wages and done the work for which wages have
been paid. The declarations relating to claims or payrolls shall be in subsLan-
here
tially the following form: "I declare under the penalties of perjury
insert, if claimant: that this claim is just and correct and no part of it has
been paid; if timekeeper, supervisor, officer or employee having knowledge
of the facts; that to the best of my, information and belief the items of this
payroll are correct; if employ" who has been paid: that I have received the
wages stated on this payroll opposite my time and have done the work for
which the wages were paid.)
....................
.................... Signed.,
Date
The effect of this declaration shall be the same as if subscribed and sworn to
under oath. 205
Nm25"S —a
§ 412.271 CITIES, METROPOLITAN AREAS
Subd. 3. Endorsement on claims. The clerk shall endorse on each claim
required to be audited by the council the word "disallowed" if such be the
fact, or, "allowed in the sum of 5..........," if approved in whole or in part,
specifying in the latter case the items rejected. Each order shall be so drawn
that when signed by the treasurer in an appropriate space, it becomes a check
on the city depository. Such order -check may have printed on its reverse
side, above the space for endorsement thereof by the payee, the following
statement: 'The undersigned payee, in endorsing this order -check, declares
that the same is received in payment of a just and correct claim against the
city of ............. and that no part of such claim has heretofore been paid."
When endorsed by the payee named in the order -check, such statement shall
operate and shall be deemed sufficient as the required declaration of the
claim. Any order presented to the treasurer and not paid for want of funds
shall be so marked and paid in the order of its presentation with interest from
the date of presentation at the rate of five percent or such lower rate as is
fixed by the council prior to its issuance.
Subd. 4. Immediate payment of claims. When payment of a claim based
on contract cannot be deferred until the next council meeting without loss to
the city through forfeiture of discount privileges or otherwise, it may be made
immediately if the itemized claim is endorsed for payment by at least a
majority of all the members of the council. The claim shall be acted upon
formally at the next council meeting in the same manner as if it had not been
paid, and the earlier payment shall not affect the right of the city or any
taxpayer to challenge the validity of the claim.
Subd. 5. Lmprest funds. The council may establish one or more imprest
funds for the payment in cash of any proper claim against the city which it is
impractical to pay in any other manner, except that no claim for salary or
personal expenses of an officer or employee shall be paid from such funds.
The council shall appoint a custodian of each such fund who shall be
responsible for its safekeeping and disbursement according to law. Money
for the operation of such fund shall be secured by a transfer from the general
fund. A claim itemizing all the various demands for which disbursements
have been made from the fund shall be presented to the council at the next
council meeting after the disbursements have been made. The council shall
act upon it as in the case of other claims and an order shall be issued to the
custodian for the amount allowed. The custodian shall use the proceeds of
the order to replenish the fund; and if the council fails to approve the claim
in full for any sufficient reason, the custodian shall be personally responsible
for the difference.
Subd. 6. Independent boards, powers. Subdivisions 4 and 5 shall apply
to any independent board or commission of the city having authority to
disburse funds without approval of the council. In such case references in
these subdivisions to the council shall be considered to be to the board or
commission and the money for the fund may be secured from any undedicat-
ed fund under its jurisdiction.
Laws 1949, c 119, § 34, eff. July 1, 1949. Amended by laws 1951, c. 378, § 10; Laws
1953, c 319, § 5; laws 1955, C. 867, § 5; Iaws 1973, c 123, art. 2, § 1; Laws 1986, c.
444.
206
STATUTORY CITIES
HlstoAcal Nae
The what
apprars951 u he pro a2t.ddnsmiming or
surdm
the form of declaration to lir signed by dam -
ant and the effect of the decimation -
The 1953 amendatory am in what is now
designated as solid. 3. si bnimted 'shall, for
`mad in the sentence regardmg the dmw•mg of
orders when signed by the Treasurer becoming
a check on the village depository.
The 1955 amensi mr. act red shgruted the
former three paragraphs of solid. 1 u subds. I
§ 412.271
Not. 3
m 3 and rtdesignated former subda 2 to 4 as
subds. 4 to 6 respectively, added m the first
sentence of subd. 2 the provision giving disere-
tion u, the council to allow claims if declars-
tion is nude by endorsement on the order -
check, added to said. 3 the form of mdorse-
mem m be printed on the reverse side of the
ordr,heck, and inserted in solid. 5 "which is
imprscu®1 to pay in any other manner".
Library References
Municipal Corporations o 858 et seq.
CJS. Municipal Corporations § 1833.
Noes of I ecislotu
Procedure set forth in this section should be
Amount of order 4
followed in allowing claims or making dis-
Auditing 6
bimmu is of funds of a municipal liquor
Delegation of power 1
dispensary, and a village council could not
Forms 2
delegate the authority m make such duburu-
Signatures 3
sgru si
mems and approve such claims m a liquor
payment 5
control commission established by ordinance.
--
Op.AUy.Gen., 218R 3uh 13. 1%2.
Village administrator in village operating un-
1. Delegation of Power
der standard plan of government could not an
The only person amhorixed to draw orders
u purchasing agent empowered to make nec-
in of the clerk woold be the deputy clerk.
emanm, purchases and supplies for all depan-
place
Op.Atty.Gen.. 4696, April 12. 1967.
mens of the village within a limited amount.
in of the fact that the authority did not fix
The village council could not designate is
view
standards or give directions pursuant m
trustee as an alternate person to sign orders
am,
which the administrmor should am OPAtty.
for disbursement of funds in the absence of the
Gen 471f Oe 24 1961
Berk.meuwer. Id.
Manager of village liquor store could not
n weld employ ac-
While a cpe
enc from liquor Fund. Op.
nuke di.,
n
eountant to perform ministerial duties in con-
perform
Atty Gen N P_yO->r2• Sept 2. 1955.
N P-
nenion with the receipt and payment of mon-
for liquor store, the audit and
Village council may not delegate authority to
ey the municipal
allowance of claims purstunt to the provisions
rltanager Of municipal or ilsfliquor store m Pay
bilis for purchases out
of § 412271 are quasi judicial functions in
council, and would not be delega-
wages ei employees i
of reeeiy¢, and payment of wages to such
this
cloud public
his to such employee. Op.Anv.Gen., 218-R,
employees and other bills is governed by 951.
Op.Atty.Gen.. 21E -R,
May 8. 1963.
section.
Village council, in establishing by ordinance
The clerk of a village, with the consent of the
a hospital board and spmifi ing its powers and
council, mould appoint a deputy to Perform
duties, cannot confer
[rs board the full
bookkeeping services, including the keeping of
power to receive and is 7111 moneys
the books and records of the municipal liquor
of villa p.
from operation of village hospital. Op.
store. Id. -
cetved
Atty.Ge^- IWl-H, August 24, 1949.
A school board ma) by b -v unanimous affirms-
-
five anion, designate two m more of its num- num-
— For
-v
her to constitute an executive committee of the
A -village would be to compliance with the
board, which, to the extent determined by the
provisions of ..bd. 2 and 3 of this section in
affismative action have and exercise the au-
using a nsbber sump on the back of its checks
thority of the board in passing upon and cams-
conyining the information required in subd. 3.
'rag to be paid the current or runof-the-mina
OP,,.Gen.. 469s-16. May 21. 1965.
bills u obligations of the school district during
of the board.
Foreckm, which was intimatin Order ad
the interval between meetings
Dec. 28, 1962.
appropriatespacefor signature of
ch
OpAtty.Gen.. 161.-16(b),
2O%
R
§ 412.271
Nota 2
village clerk, mayor and treasurer, was suffi.
cient for use as village order for payment of
claims. Op.ALty.Gen., 476-A-11, Feb. 16. 1953.
3. Slgnsm.
Fmgllage operatingu under
ihe present Village of o village operating under the present Village
Code are requiredto sign the declaration pro
scribed ysolid. id.2 of this senior and the
commission
w n sthrctary is required to keepwithin n
Nov.payroll giving the information specified
the subdivision. Op.Atty.Gen., 469E-6, Nov
21, 7958.
If the manager of the municipal liquor more
is also appointed as deputy village clerk under
§ 412151, he may, in conjunction with the
mayor, sign orders on the treasurer for dis-
bursements from municipal liquor more funds,
in accordance with this senior. OpAtty.Gen..
218-R, April 15, 1953.
Mayor and treasurer of village could autho
ries clerk to affix their facsimile signatures on
checks by using an electric check signer. Op.
Atty.Gen., 476-A-11, March 2. 1953.
Village warrants need not be signed by vib
lase treasurer, but a system map be adopted of
having village warrants countersigned be the
treasurer, so as to make them checks. Op.Atty.
Gen., 456-8. June 23. 1949.
CITIES, METROPOLITAX AREAS
4. Amount of order
Under solid. 3 of this section, order could b,
properly issued which was iarger than balance
in fund. the balance being applied against or.
der to reduce the mierem payable. OpAnr.
Gert. 476-a-11, Mae 25, 1956.
S. Time of payment
11 payment of claim based on enntran aril
ing in course of operation of village hospital
cannot be deferred until next council meetirr,
without loss to village through forfeiture tai
discount privileges o: otherwise, it may be
nude immediately. Op.Aity.Gen., 1001-11, An
,not 24, 1949.
A. Auditing
This section which prohibits the disburse.
ment of murucipa: fund, until claims therefor
have been audited did now mukv municipal
council a tribunal for assessing damages and
did not apply to unliquidated ciafm. for dam
ages due to breach of implied contract to for
nish adequem and continuous electric smite.
Lund v. Village of Princeton. 1957, 250 Minn.
472. 85 N.w.2e 197.
There is no statutory provision for special
auditing committee of municipal liquor more.
Op.Atty.Gen., 218-R. June 10. 1952.
412.281. Repealed by Laws 1978, c. 787, § 7, eff. Jan. 1, 1979
Hla genal Note
The repealed section, which provided for an Laws 1973. c. 123, an. 2, § 1.
annual financial statement to be prepared by Laws 1957, c. 11. § 1.
the village clerk, was derived from: laws 1949, c 119, § 35.
Laws 1973, a 492, § 7. See. nota. § 471.695 n seq.
412.291. Repealed by Laws 1978, c. 787, § 7, eff. Jan. 1, 1979
Hlstorleal Note
The repealed section, which defined the fis- See, now, § 471.695 et seq.
d year for villages, was derived from Laws
1949, c 119, § 36. and Laws 1973. c- 123. an. 2,
§ 1.
412.301. Financing purchase of certain equipment
The council may issue certificates of indebtedness or capital notes subject to
the city debt limits to purchase public safety equipment, ambulance equip-
ment, road construction or maintenance equipment• and other capital equip-
ment having an expected useful life at least as long w the terms of the
certificates or notes. Such certificates or notes shall be psyable in not more
than five years and shall be issued on such terms and in such manner as the
council may determine. If the amount of the certificates or notes to be issued
to finance any such purchase exceeds one percent of the assessed valuation of
208
2. Repairs
Cost o con.
pairing tracto
§ 412.361
CITIES, METROPOLITAN AREAS
STATUTORY CITI
14
Nota 9
9. Televiston tramnlasioa
11. Diawademaoce of service
_ and substitute therefor
' ine endorsement that th
A village council old properly authoria is
The Municipal Utilities Commission of the
T paid is true and correct
public utilities commission to purchase trans-
Village of Halstad had Power under this sec-
-
mission system to strengthen television recep-
624a-1, May 7, 1968.
tion to discontinue water service for non -pay-
ment by water user of account, which included
= 412.381. Reports
tion. OpAtty.Geo.,
expense of meter installation. OpAtty.Gen.,
in
The accounting
10 Rist.
624-0.5, June 17. 1957.
statements
annual statements
Pr city charter amendment permiming
l2. Lem
each such report f
the public utilities department to make a rea-
aonsbl< charge for lightlng. heat, water. power
Public utilities commission of village has no
financial report sh:
or other utility service to any department of
authority to adopt rule making its charges for
- the calendar year a'
the city was proper. Op.Any.Gen., 624a-3,
utilities service a lien on the property acrved.
Op.Atty.Gen., 624-1)-5. June 28. 1949.
Or statement of the
July 15,1%3.
cost of publication
412371. Public utility fund and disbursements
published shall be
Subdivision 1. A separate fund or a
separate account shall be established
Laws 1949, c 119, §
laws 1987, c. 394• ar
in the city treasury for each utility. Into this fund or account shall be paid all
the receipts from the utility and from it shall be paid all disbursements
attributable to the utility.
The 1987 amendaton
Snbd. 2. The commission shall, in the game manner as the council under
to 41.697 ...
section 412.271, subdivision 1, and to the same extent, audit claims to be paid
reference
from the public utilities fund. The secretary
of the commission shall draw an
412391. Abollti
order upon the treasurer for the proper
amount allowed by the commission.
Upon counter signature by the president of the commission and presentation
Subdivision 1.
orders shall be paid by the treasurer.
be abolished or iL
Laws 1949, c. 119, § 47, eff. July 1, 1949.
Amended by laws 1973, u 123, an. 2, § 1;
council by follow::
Laws 1986, c. 444.
Subd. 2. The c
Library aeferaneea
equal in number
previous city electi
Municipal Corporations x887.
CSS. Municipal Corporations § 1884.
the question of ab,
the ballot shall be
Notes of
Decisions
commission be ab
Dls at raem,mta 2
ling for services rendered in the management
and supervision of a water utility established
Subd. 3. Upon
Emergency claims 3
Reeelptz 1
under village powers authorized by special leg-
of transfer IO the
Vouehers 4
--
islation. Id.
A public inihty, commissioner of a village
or more of the ui
pursuant to §§ 412321 to 412391
shall, in the same
1. Receipts
Resolution of council of the Village of Fib-
can contract to provide for medical and hospi-
cam
tal benefits pursuant to § 471.61, and the pay'-
VO[tIS. The Ques'
bing discontinuing pavments to utilities cont-
went of this premium can be made from the
-Shall jurisdietior
mission was mefiessuve. OP.Atty.Gim-
fund established pursuant to this section Op.
public utilities Cor
469-D-6, Feb. 18. 1957.
Attv.Gen., 249-B-8. March 24, 1958.
Subd. 4. If a c
L Disbursements
3. Emergency daises
voters under subd
compensation of town board members for
pe
concerning the town anter
Village Public utilities commission could
from sinking fund which
1 -^ 412.331 to 41235.
services autility.granting he
tablizhed under special legislation granting the
ape
withdraw moneys
was Pert of public sett@les fund and pay enter
tender subdivisioc
town village authority with relation to
§§ 412321 to 412391, should be ppaid from a
for the
n claims. OpAtty.Gdv., 624-A-6, Jan 9,
1950
submitted to the'.
take
separate account account or fund established
changeshall
utility rather than from the towns general
fund. OpAtty.Gem. 442a-19, Nov. 30. 1961.
4. V --h-
Laws 1949, e. 119.
Per diem amounts paid.to members of town
Village public utilities commission dors not
have to eliminate verified voucher
1973, c 123, art 2.
board pursuant to § 367.05 would be control-
authority
226
STATL-MRY CITIES § 412391
- and substitute therefor a verified warrant upon has not been received. OpAny.Gcm. 62FA-6,
she endorsement tlat the claim which is being Dec. 18, 1953.
paid is true and correct and that prior payment
412.381. Reports
- The accounting officer of the commission shall make such monthly or
annual statements of operation as the commission may require. A copy of
each such report shall be filed in the office of the city clerk. An annual
financial report shall be made and a copy filed with the clerk at the close of
the calendar year and shall be included ai part of the annual financial report
_ or statement of the clerk in conformity with section 471.697 or 471.698. The
cost of publication of any other official statement required by law to be
- published shall be paid from public utility funds.
Laws 1949. C. 119, § 48, eff. July 1, 1949. Amended by laws 1973, c. 123, an. 2, § 1;
Laws 1987, c. 384, an. 2. § 90.
HletnArrJtl Note
31n 1987 amertino w net substituted the ref reference to the annual financial report which
erence to § 471.697 or 471.698 for a forma is to include reports in conformity with the
reference to § 412261. and also insetted the new statutury references.
412.391. Abolition of commission
- Subdivision 1. The public utilities commission of any statutory city may
be abolished or its jurisdiction over any particular utility transferred to the
council by following the procedure prescribed in this section.
Subd. 2. The council may, and upon petition therefor signed by voters
equal in number to at least 15 percent of the electors voting at the last
previous city election shall submit to the voters at a regular or special election
the question of abolition of the public utilities commission. The question on
the ballot shall be stated substantially as follows: 'Shall the public utilities
commiss?on be abolished?"
Subd. 3. Upon like presentation of a petition for election on the question
of transfer to the council of the jurisdiction of the commission over any one
or more of the utilities previously placed under its jurisdiction, the council
shall, in the same manner as under subdivision 2, submit the question to the
voters. The question on the ballot shall be stated substantially as follows:
"Shall jurisdiction over (Name of public utility) be transferred from the
public utilities commission to the council?"
Subd. -4. If a majority of the vote=_ cast on a proposition submitted to the
voters under subdivision 2 or 3 is in the affirmative, the provisions of sections
412.331 to 412.381 shall cease to apply to the city, in the case of an election
_ under subdivision. 2, or to the particular utility mentioned in the proposition
submitted to the voters, in the case of an election under subdivision 3. Such
_— change shall take place 30 days after the election.
- _ Laws 1949, c. 119, § 49, eff. July 1, 1949. Amended by Laws 1953, c 735, § 7; Laws
- 1973, c. 123, an. 2. § 1.
G 227
TO: Philip R. Krass
FROM: Lou Van Hout
RE: Your Memo to Greg Voxland, SPUC Disbursements -
Minnesota Statute 412.371
DATE: 11/17/88
Thanks for the copy of your memo sent for my information.
After reading the language in the statute, and talking with Barb,
I believe that actually we are in compliance with the statute.
The actual process of paying bills involves more paperwork in its
administration than would be expected from a reading of 412.371.
This is to be expected because appears that law was intended to
define only the major division of responsibilities between the
parties, and not to get into administrative details.
It appears that the requirements of the law are:
a) Separate fund or account to be kept for each utility.
b) Receipts and disbursements are to be paid from this
fund or account.
c) Commission to audit the claims to be paid.
d) Secretary draws an order upon the treasurer for the
proper amount allowed by the commission.
e) President of the commission counter signs the order.
f) The order is presented to the treasurer.
g) The order is paid by the treasurer.
I believe that all of the requirements of 412.371 are being met
by the administrative procedure now being used.
A point of contention seems to rest on the question of exactly
who is to prepare the actual checks.
The statute designates that the payment of the order is to be
made by the treasurer. I believe this is being done with the
procedure we now follow. The preparation of the unsigned check
blanks appears to be a clerical function which is relatively
minor as far as the Statute is concerned. It is my understanding
that the actual payment of the order takes place at the time the
treasurer places his signature on those checks.
pg 2
At present, the unsigned checks are prepared along with the order
for payment of claims. Those unsigned checks are then sent to
the treasurer along with that order. After the treasurer
verifies that the checks have been prepared as listed on the
order, he signs the checks and returns them to the Utilities
Office for mailing.
In my view this administrative system appears to meet all the
requirements of the law.
It is my desire to stay with the present system if possible due
to its efficiency. Almost any administrative system can be
organized in more than one way, but it would be unfortunate to
change one that has in fact been working smoothly unless there
was a real reason to do so.
Not being aware that questions on this matter were even being
raised, I don't know what information was given to you about the
actual administrative process we follow. So I can only respond
to the point mentioned in your answer to Greg which was about the
preparation of the actual checks. If there is more to the issue
please let me know.
. Streefland(audito),Voxland
1
CITY OF SHAKOPEE, MINNESOTA Exhibit F
ELECTRIC FUND
BALANCE SHEET
DECEMBER 31, 1987 AND 1986
1987
____________
1986
____________
r
IF
ASSETS
Current Assets:
1)
$ 2,264,295
$ 1,769,867
Cash And Investments (Note
32 719
24,385
Accrued Interest Receivable
494,482
494,812
Accounts Receivable
15,136
31,666
Due From Other Funds
215,242
244,035
Inventory
18,000
27,245
Prepaid Expense
____________
____________
3,039_874
2,592_010
�.
Total
--
-
Restricted Assets:
133,105
128,610
Cash And Investments (Note 1)
------------
_--_-_-3,536,677
3,536,677
3,447,830
Fixed Assets (Note 1)
(1,760-430)
(1,674,682)
Less Allowance For Depreciation
--------
1,776,247
1,773,148
Total
-
--
$ 4,949,226
$ 4,493,768
TOTAL ASSETS
LIABILITIES AND RETAINED EARNINGS
kkk
Liabilities:
Current Liabilities (payable from
current assets)
$.,
370,228
$ 426,846
Accounts Payable
136,103
118,192
Due To Other Funds
____ _
____________
506,331
545,038
Total
Current Liabilities (payable from
Restricted Assets)
33,105
28,610
R
Customer Deposits
____ _
____________
IL
539,436
573,648
TOTAL LIABILITIES
-
------------
__--325,999
325,999
Contributions From Other Funds
Retained Earnings
100,000
100,000
Reserves For Construction
3,983,791
3,494,121
Unreserved
----
------------
4_409_
3,920_120
Total Equity
790
-
TOTAL LIABILITIES, CONTRIBUTIONS
$ 4,949,226
$ 4,493,768
h RETAINED EARNINGS
C
The accompanying notes are an integral part
of these financial statements.
E4
CITY OF SHAKOPEE,
MINNESOTA
Exhibit F-1
ELECTRIC FUND
STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEARS ENDED DECEMBER 31, 1987 AND 1986
1987
1986
Operating Revenue
-----------
-----------
Sales
$4,938,894
$4,669,926
Operating Expense
-----------
-----------
Purchased Power
3,649,996
3,432,628
Operations And Maintenance
526,907
519,873
Depreciation
133,438
122,662
Total Operating Expense
-----------
4,310,341
-----------
-----------
4,075,163
-----------
Operating Income
628,553
594,763
Add: Non -Operating Revenue
Interest Income
176,749
156,526
Other Income
18,481
19,128
Net Income Before Operating Transfers
-----------
823,783
-----------
770,417
Transfer To General Fund
(213,616)
(221,980)
Transfer To Capital Equipment Fund
(120,497)
(102,207)
Net Income To Retained Earnings
-----------
489,670
-----------
446,230
Retained Earnings - January 1
3,594,121
3,147,891
Retained Earnings - December 31
-----------
$4,083,791
-----------
$3,594,121
The accompanying notes are an integral part of these financial statements.
67
CITY OF SHAKOPEE, MINNESOTA Exhibit F-2
ELECTRIC FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE YEARS ENDED DECEMBER 31, 1987 AND 1986
1987 1986
----------- -----------
Funds Provided:
Operations
Net Income (Loss) For The Year
$
'
489,670
$
446,230
Add: Items Not Requiring Current
Outlay Of Resources - Depreciation
-----------
133,438
-----------
122,662
Total Funds Provided By Operations
623,108
568,892
Current Liabilities Payable From Restricted
Assets Increased
4,495
-----------
5,050
Total Funds Provided
-----------
-----------
627,603
-----------
573,942
Funds Applied:
Acquisition Of Fixed Assets
136,537
292,795
Increase In Restricted Assets
-----------
4,495
-----------
5,050
Total Funds Applied
141,032
-----------
297,845
Net Increase (Decrease) In Working Capital
-----------
$
486,571
$
276,097
Changes In Elements Of Working Capital
..
Cash And Investments
$
494,428
$
199,399
Accrued Interest Receivable
8,334
(4,488)
Accounts Receivable
(17,299)
102,590
Due From Other Funds
439
18,654
Inventory
(28,793)
(1,596)
Prepaid Expense
(9,245)
3,569
Accounts Payable
56,618
(33,715)
Due To Other Funds -
(17,911)
-----------
(8,316)
Net Increase (Decrease) In Working Capital
-----------
$
486,571
$
276,097
The accompanying notes are an integral part of these financial statements.
M
E
b
,m;
S
1
E
�T
C
fi
6
E
`e
69
CITY OF SHAKOPEE,
MINNESOTA
Exhibit G
WATER FUND
BALANCE SHEET
DECEMBER 31, 1987
AND 1986
1987
1986
ASSETS
Current Assets:
Cash And Investments (Note 1)
$ 128,565
$ 178,672
Accrued Interest Receivable
15,397
14,945
Accounts Receivable
78,105
64,036
Due From Other Funds
5,045
5,399
Inventory
18,933
16,150
Prepaid Expense
5,988
8,741
Total -
____________
252,033
____________
287,943
Restricted Assets:
Cash And Investments (Note 1)
827,343
"736,Q85
Fixed Assets (Note 1)
5,316,291
5,070,745
Less Allowance For Depreciation
(1,367,346)
(1,284,933)
Total
3,948,945
____________
3,785,812
____________
TOTAL ASSETS
$ 5,028,321
$ 4,809,840
LIABILITIES AND RETAINED EARNINGS
Liabilities:
Current Liabilities (payable from
current assets)
Accounts Payable
$ 23,293
$ 25,158
Due To Other Funds
30,302
21,472
TOTAL LIABILITIES
53,595
____________
46,630
------------
Contributions From Other Funds & Developers
3,918,130
3,853,152
Retained Earnings
Reserves For Construction
827,343
736,085
Unreserved
229,253
173,973
Total Equity
4,974,726
4,763,210
TOTAL LIABILITIES, CONTRIBUTIONS
& RETAINED EARNINGS
$ 5,028,321
$ 4,809,840
The accompanying notes are an integral part of these financial statements
70
CITY OF SHAKOPEE, MINNESOTA Exhibit G-1
WATER FUND
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEARS ENDED DECEMBER 31, 1987 AND 1986
1987 1986
___________ ___________
Operating Revenue
Sales $ 376,923 $ 272,679
Other - 81,227 108,408
___________ ___________
Total 458,150 381,087
___________
J Operating Expense
Operations 6 Maintenance
222,860
212,004
Depreciation
115,564
107,838
Total Operating Expense
338,424
________
319,842
___________
Operating Income
119,726
61,245
Add: Non -Operating Revenue
Interest Income
83,207
95,646
Other Income
80
300
Trunk Charges
22,179
5,720
Less: Non -Operating Expense
Interest Expense
(953)
(1,550)
Other Expense
(14,904)
Net Income Before Operating Transfers
_-_224,239
--_146,457
Transfer To General Fund
(60,384)
(54,868)
Transfer To Capital Equipment Fund
(17,317)
Net Income To Retained Earnings
___________
146,538
-----------
91,589
Retained Earnings - ianuary 1
910,058
818,469
Retained Earnings - December 31
___________
$1,056,596
___________
$ 910,058
The accompanying notes are an integral part of these financial statements.
71
CITY OF SHAKOPEE, MINNESOTA Exhibit G-2
WATER FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE YEARS ENDED DECEMBER 31, 1987 AND 1986
1987 1986
----------- -----------
Funds Provided:
Operations
Net Income (Loss) For The Year
$
146,538
$
91,589
Add: Items Not Requiring Current
Outlay Of Resources - Depreciation
115,564
107,838
Total Funds Provided By Operations
-----------
262,102
...........
199,427
Contributions - Other Funds 6 Developers
64,978
14,437
Total Funds Provided
-----------
327,080
-----------
213,864
Funds Applied:
Acquisition Of Fixed Assets
278,697
300,526
Increase In Restricted Assets
91,258
-----------
34,907
Total Funds Applied
-----------
369,955
-----------
335,433
Net Increase (Decrease) In Working Capital
-----------
$
(42,875)
$
(121,569)
Changes In Elements Of Working Capital
Cash And Investments
$
(50,107)
$
(62,214)
Accrued Interest Receivable
_
452
(2,751)
Accounts Receivable
171;069
8,365
Due From Other Funds -
(354)
(82,092)
Inventory
2,783
(3,657)
Prepaid Expense
(2,753)
848
Accounts Payable
1,865
(7,718)
Due To Other Funds
(8,830)
-----------
27,650
Net Increase (Decrease) In Working Capital
-----------
$
(42,875)
$
(121,569)
The accompanying notes are an integral part of these financial statements.
72
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ENCLOSURES:
A) SPUC RESERVES INFORMATION CONTAINED IN 1987 SPUC AUDIT.
B) SPUC RESERVES INFORMATION CONTAINED IN THE 1987 CITY AUDIT.
C) STATEMENT OF CASH AND INVESTMENTS BALANCES AT 1'/31/88.
D) 5 YEAR SPUC CAPITAL IMPROVEMENTS PLAN.
E) SERVICE AREAS MAP.
0 SHAKOPEE PUBLIC UTILITIES COMMISSION
SHAKOPEE, MINNESOTA
REPORT ON EXAMINATION
WITH SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 1987
SHAKOPEE PUBLIC UTILITIES COMMISSION
Shakopee, Minnesota
Electric Fund
Balance Sheet
December 31, 1987 and 1986
1987
1986
ASSETS
Current Assets
Cash
$ 46,685
$ 38,847
Investments
2,217,610
1,731,020
Accrued interest
32,719 "
24,385
Accounts receivable
494,482
511,781
Due from City of Shakopee
15,136
14,697
Inventory
215,242
244,035
Prepaid expenses
18,000
27,245
Total current assets
3,039,874
2,592,010
Restricted Assets
Construction fund investments
100,000
100,000
Customer's deposits
33,105
28,610
133,105
128,610
Property, Plant and Equipment
3,536,677
3,447,830
Accumulated depreciation
1,760,430
1,674,682
1,776,247
1,773,148
Total Assets
$4,949,226
$4,493,768
LIABILITIES, RESERVES, CONTRIBUTIONS AND RETAINED
EARNINGS
Current Liabilities (payable from current assets)
Accounts payable
$ 370,228
$ 426,846
Due to City of Shakopee
136,103
118,192
506,331
545,038
Other Liabilities (payable from restricted assets)
Customer deposits
33,105
28,610
Contributions from Municipalities and developers
325,999
325,999
Retained Earnings
Reserved for emergencies
100,000
100,000
Unreserved
3,983,791
3,494,121
4,083,791
3,594,121
.
$4,949,226
$4,493,768
The accompanying notes are an integral
part of these financial statements.
13
SHAKOPEE PUBLIC UTILITIES COMMISSION
Shakopee, Minnesota
Water Fund
Balance Sheet
December 31, 1987 and 1986
ASSETS
1987 1986
Current Assets
Cash
t 54,970
Investments
73,595.
Accrued interest
15,397
Accounts receivable
78,105
Due from City of Shakopee
5,045
Inventory
18,933
Prepaid expenses
5,988
Total Current Assets
252,033
rRestricted Assets
Construction fund
827,343
NProperty, Plant and Equipment
5,316,291
Accumulated depreciation
1,367,346
3,948,945
Total Assets
55428,321
LIABILITIES, RESERVES, CONTRIBUTIONS
AND RETAINED EARNINGS
Current Liabilities
Current maturities of long-term debt
$ 2,988
Accounts payable
23,293
Due to City of Shakopee
22,550
Total Current Liabilities'
48,831
Long-term debt
Contributions from Muncipalities and Developers
Retained Earnings
Reserved for future construction
Unreserved
Total Liabilities, Reserves,
Contributions and Retained Earnings
4,764
3,918,130
827,343
229,253
1,056,596
$5,028,321
The accompanying notes are an integral
part of these financial statements.
18
$ 28,643
150,029
14,945
64,036
5,399
16,150
8,741
287,943
736,085
5,070,745
1,284,933
3,785,812
$4.809.840
$ 7,602
25,158
6,119
38,879
7,751
3,853,152
736,085
173,973
910,058
$4,809,840
SHAKOPEE PUBLIC UTILITIES COMMISSION
Shakopee, Minnesota
Notes to Financial Statements
Retained Earnings
The Utilities designates a portion of its revenue (trunk charges and water
connection fees) each year for future construction. As of December 31, 1987 net
income, retained earnings reserved and unreserved are as follows:
Reserve designation December 31, 1987
Electric Water Total
Emergencies $ 100,000 $ $ 100,000
Trunk charges 190,420 5 190,420
Connection charges 636,923 * 636,923
Total $ 100,000 $ 827,343 $ 927,343
8
Electric
Water
Total
Retained earnings
January 1, 1987
Reserved
$ 100,000
$ 736,085
S 836,085
Unreserved
3,494,121
173,973
3,668,094
Total
3,594,121
910,058
4,504,179
Transfers to unreserved
73,085
73,085
Net Income 1987 (loss)
Reserved
164,343
164,343
Unreserved
489,670
(17,805)
471,865
Total
489,670
146,538
636,208
Decrease in reserve
Over sizing costs
Transfers from reserve
(73,085)
(73,085)
Retained earnings
December 31, 1987
Reserved
100,000
827,343
927,343
Unreserved
3,983,791
229,253
4,213,044
Total
$4,083,791
$1,056,596
$5,140,387
Reserve designation December 31, 1987
Electric Water Total
Emergencies $ 100,000 $ $ 100,000
Trunk charges 190,420 5 190,420
Connection charges 636,923 * 636,923
Total $ 100,000 $ 827,343 $ 927,343
8
COMPREHENSIVE
ANNUAL FINANCIAL
REPORT
OF THE CITY OF
SHAKOPEE
MINNESOTA
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 1987
DEPARTMENT OF FINANCE
Gregg.M. Voxiand, Director Of Finance
Member of Government Finance Officers' Association
of the United States and Canada
City of Shakopee
129 East First Avenue
Shakopee, Minnesota 55379
(6 12) 445-3650
•
CITY OF SHAKOPEE, MI.NNESOTA
Exhib'.c F
Elscroc F=
BALANCE SHEET
DECEMBER 31, 1987 AND 1986
J-
tun-r
-__.....
_
____________
ASSETS
enc Assets:
Curr
sh And Investments (Note1)
$ 2,264, 293
$ 1,769,867
Ca
trued Interest Receivable
24,385
Ac37,714.
counts Receivable
494,482
494,812
At
e From Other Funds
15,136
31,666
Du
vpaid
215,242
244,035
In
E
epaid Expense
18,000
27,245
Pr
Coral
ricced Assets:
--3.039_874_
'-2_592-010-
Rest,
.a_Fh. On& i42slg-�a �11ote 'L)�
133,105
128,610
3 Assets (Note 1)
3,536,677
------------
3,447,830
Fixe
cs Allowance For Depreciation
(1,760,430)
(1,674,682)
Le
Corel
__________
---------
1,776,247
1,773,148
TOTAL ASSETS
____________
$ 4,949,226
________-__
$ 4,493,768
:TIES AND RETAINED EARNINGS
LIABIL:
.lities:r
Liabi
Trent Liabilities (payable from
a
Cul
.urrent assets)
.ccounts PayableP
$ 370,228
$ 426,846
F
us To Other Funds
136,103
118,192
C
Total
rent Liabilities (payable from
____________
506,331
___________
545,038
Cur
estricted Assets)
7
ustomer DepositsC
33,105
28,610
TOTAL LIABILITIES
________
539,436
___________ _
573,648
r
L
utions From Other Funds
____________
325,999
____________
325,999
Contrib
Betaine
I Earnings
ves For Construction
100,000
100,000
Reser
erved
Unres
3,983,791
3,494,121
-
......
(-
Ital Equity
"--'-
------------
r
4,409,790
3,920,120
TOTAL LIABILITIES, CONTRIBUTIONS
____________
____________
^- -
6 RETAINED EARNINGS
$ 4,949,226
$ 4,493,768
-
�mpanying notes are an integral part
of these financial statements.
The accc
66
j E
CITY OF SHAKOPEE, MINNESOTA
s"
BALANCE SHEET
DECEMBER 31, 1987 AND 1986
1987
ASSETS ____________
Current Assets:
Cash And Investments (Note 1)
Accrued Interest Receivable
Accounts Receivable
Due From Other Funds
Inventory
Prepaid Expense
Total
Restricted Assets:
Cash And Investments (Note 1)
Fixed Assets (Note 1)
Less Allowance For Depreciation
Total
TOTAL ASSETS
LIABILITIES AND RETAINED EARNINGS
Liabilities:
Current Liabilities (payable from
current assets)
Accounts Payable
Due To Other Funds
TOTAL LIABILITIES
Exhibit G
1986
------------
$ 12Q,563, �°
$ 178,672
15,3975
14,945
78,105
64,036
5,045
5,399
18,933
16,150
5,988
____________
8,741
252,033
____________
____________
287,943
____________
827,343
736,085
5,316,291
5,070,745
(1,367,346)
(1,284,933)
3,948,945 3,785,812
$ 5,028,321 $ 4,809,840
$ 3 $ 23,29325,158
0,302
21,472
53,595 46,630
Contributions From Other Funds 6 Developers
Retained Earnings 3,918,130 3,853,152
Reserves For Construction
Unreserved 827,343 736,085
229,253 173,973
Total Equity ____________
4,974,726 4,763,210
TOTAL LIABILITIES, CONTRIBUTIONS
............
6 RETAINED EARNINGS
$ 5,028,721 $ 4,809,840
The accompanying notes are an, integral part of these financial statements,
70
THE FIGURES BELOW REPRESENT A PRELIMINARY (UNAUDITED) CALCULATION
OF THE TRUNK AND CONNECTION CASH AND INVESTMENT BALANCES AND THE
OPERATING CASH AND INVESTMENT BALANCES AS OF 12/31/88.
SHAKOPEE PUBLIC UTILITIES COMMISSION
DECEMBER 31,1988
CASH AND INVESTMENTS BALANCES
COMBINED ELECTRIC AND WATER FUNDS
INVESTMENTS AT COST 3,789,539.61
METER ACCOUNT CHECKING BALANCE 36,331.40
REGULAR CHECKING ACCOUNT BALANCE 87,430.70
CASH IN DRAWER 400.00
3,913,701.71
OF THE ABOVE AMOUNTS, THE SPLIT BETWEEN ELECTRIC AND WATER CASH
AND INVESTMENTS IS ESTIMATED TO BE AS FOLLOWS:
ELECTRIC 70 % = S 2,700,000
WATER 30 X = 1,200,000
OF THE ABOVE AMOUNTS, THE WATER RESERVED FUNDS ARE ESTIMATED TO
BE AS FOLLOWS AT 12/31/88:
TRUNK CHARGES 230,443
CONNECTION CHARGES 748,933
TOTAL WATER 979,376
A FINAL DETERMINATION OF THE CASH AND INVESTMENTS IN TOTAL OR IN
THE THE VARIOUS FUNDS CANNOT BE MADE UNTIL THE ANNUAL AUDIT FOR
1988 IS COMPLETED.
THE 1987 AUDIT FIGURES WILL GIVE AN EXACT AMOUNT OF THE CASH AND
INVESTMENTS IN EACH FUND FOR THAT YEAR.
1/6/89
Shakopee Public Utilities Commission
5 year Capital Improvement Plan
Draft date 2-1-88
APPROVED DATE 2-1-88
1988
A. Office and Administration
1. computer $ 20,000
2. misc. equipment 10,000
Electric
Meters
7,000
1.
transformers
83,000
2.
meters,services
31,000
3.
13.8 kv feeder,Blue Lake
70,000
4.
2 mi OH line,30,Apgar & Co. Rd.78
28,000
5.
add'1 phase Co.Rd 42
20,000
6.
pole yard screening,etc.
7,000
7,
replace sta. wagon
12,000
B.
eng. study,downtown UG elec.
10,000
9.
ly mi OH Co.Rd.77 & 78
23,000
10.
replace pick up truck # 617
12,000
11.
substa. bay ckt #9
50,000
12.
misc. UG lines
40,000
13.
service area acquisition
40,000
14.
35' bucket service truck
30,000
15.
bobcat & trlr.
13,000
16.
Bldg. refurbishing
7,000
17.
Misc. shop equip.
10,000
18.
Elect. share of office
22,500
C. Water,operating funds
1.
Meters
7,000
2.
pump mtce #3 well
15,000
3.
pumphouse #2 fence removal
4,000
4.
replace pick up truck #615,
14,000
S.
pipe locator
1,000
6,
fence replacement, standpipe
7,000
7.
hydrant replacements
6,000
misc. system improvements
15,000
11gp8q.
mitcTb��g�P z fuRish
57;50
&T
11:
weer s ah o ice
D. Water,restricted funds Trunk fund:
1.
oversizing,CO.Rd 17
12,000
2.
oversizing,13 th Ave
40-,000
3.
oversizing Heritage plat
24.000
30,000
508,500
129,500
76,000
1989
4. Office and Administration
1. general $ 10,000
B. Electric
1.
transformers
$ 89,000
2.
meters,services
33,000
3.
downtown Ug lines
50,000
4.
reconductor ckt #7, 1 mi
15,000
S.
OF lines, and equip.
64,000
6.
UG lines,and equip
46,000
7.
Service area acquisition
500,000
8.
Misc. shop equipment
10,000
Electric share of office
7,500
807,000
C. Water,operating funds
1.
meters -
8,000
2.
central control system
60,000
3.
Pump mtce #4 well (5 year)
5,000
4.
hydrant replacements
6,000
5.
misc. system improvements
13,000
6.
cum. study update
6,000
7,
water share of office
2,500
100,500
D. dater system, restricted funds trunk fund
oversizino 50-,000
1990
A. Office and administration
1. general $ 10,000
B. Electric
1. transformers $ 90,000
2. meters and services 35,000
3. OH lines and equipment 65,000
4. UG lines and equipment 60,000
5. replace chasis truck #616 40,000
6. downtown UG H"3887. misc. shop equip.
Electric share of office 7,500
C. Water,operating funds
1. meters 9,000
2. 42 well improvement 25,000
3. tank #3 repainting 100,000
4. replace truck #620 16,000
5. misc. equip. 5,000
water share of office 2,500
0. Water, restricted funds, trunk fund
oversizing 50,000
+15,000 UG = aware new sub. div. in new area
359,500
157,500
1991
A. office and administration
1. general $ 16,000
B. Electric
1. transformers 90,000
2. meters and services 35,000
3. OH lines and equipment 60,000
4. UG lines and equipment 60,000
5_ downtown UG 50,000
6. trucks replaced s misc. equip. 20,000
Service area acquisition 500,000
electric share of office 12,000
C. Water,operating funds
1. system improvements 20,000
2. misc. equip. 5,000
3. water share of office 4,000
D. Water,restricted funds trunk S Conn. fund:
1.. new well -(Conn. fund) 300,000
2. oversizing (trunk fund) 50,000
827,000
29.000
1992
A. Office and administration
1. general $ 16,000
a. Electric
1.
transformers
30,000
2.
meters and services
90,000
3.
08 lines and equipment
40,000
4.
UG lines and equipment
50,000
70,000
5.
refurbish downtown sub.
200,000
6.
trucks replaced s misc. equip.
20,000
7.
elect share of office
12,000
482,000
C. Water,operating funds
I. misc.
system improvements
30,000
2. misc.
new equip.
51000
3. water
share of office
4,000
39,000
D. water, restricted funds trunk fund:
oversizing 70,000
O
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-----Oqqq
]ERIVr AREA MAP
F 9NA EE
Wss-
PMNs1I Monne KR
a
Dennis L flunrtx j�`(/��l\J\J
Barry K Memr
Jay D •r6 MON ROE
7kwR. Walr R. Nalsten
Mark J. Maness- rnanrrerl
Diane M. Carlson
Rwxrt J. Natter
January 9, 1989 .
Mr. Lou Van Bout, Manager ..
Shakopee Public Utilities Commission
1030 East Fourth Avenue
Shakopee, MN 55379
Re: City of Shakopee / Shakopee Public Utilities Commission
Our File No. 1-1373-2
Dear Lou:
Idchlan is \luir
James H Cm0
Colleen M. Vende
Orlin 0 TO Slaa-
Patncia A Meller
kiM A. Carlson. CPA
. re.wm LMITYSom.�e
zMOMmwea in Uil4a„
.wo rcmnim m swm ww
I am dm receipt of your memo of January 6, 1989, which related to your
November 17, 1988 response to my November 11, 1988 memorandum to Gregg Vozland
relative to the obligation of SPUC to disburse in accordance with Minnesota
Statutes 412.371. I noted that your November 17 memo did go to Gregg end Jim
Streeflaad as well.
I heard nothing from Gregg or Jim subsequent to their receipt of your
November 17 memo and it appears to me from the information provided in that memo
that SPDC is in fact conforming with Minnesota Statutes 412.371 and the
requirements I outlined in my November it memorandum.
Very truly yours,
ERASS S MONROE CHARTERED
Phillip R. Kress
PRR:mly �
cc:,_ Gregg Voxland
Shakopee City Treasurer
Reply W: Marschall Road Business Center 321 Marschall Road P.O. Bo<316. Shatnpee. Minnesota 55379 Telephone: 16121445-5080 FAX 16131445-7640
Fnuthmim Crnvr SoitetIDn 1650Ae' 83nd 4trvm, Blmminemn. hlinnrcnta (o4(9 TrIonhonr 1612 9P.i-in9u FA i6:21 F.V'.-5Af9
7
MEMO TO:
Dennis
Kraft,
Acting City Administrator
FROM:
David
Hutton,
City Engineer`Du-
SUBJECT:
Joint
Meeting
Between the City Council and SPUC
DATE: January 5, 1989
As I understand it a joint meeting between the City Council and
SPUC has been scheduled for January 10, 1989. I am not sure if
an agenda has been established for this meeting or if it is
simply to discuss the financial situation between the two
entities, but I have several items that I feel should be
discussed sometime regarding public works improvement projects.
Specifically, I am referring to joint projects involving both
City facilities (sewer, street, etc.) and SPUC facilities
(watermain).
Since quite often a public improvement project involves the
construction of all these facilities, the Engineering Department
and SPUC employees interact quite frequently during the course of
a project. In my brief tenure in Shakopee, I have observed
several areas whereby the overall contract administration can be
improved, in my opinion.
1. Reconstruction Projects.
It is my understanding that on street reconstruction
projects, the SPUC policy is to not replace any watermains
or electric lines or upgrade deficient systems unless the
street construction requires it or the City pays for the
work, regardless of the age of the system or deficiency.
Conversely, the City quite often replaces the sanitary sewer
systems and other utility companies (telephone, gas, etc.)
are encouraged to upgrade their systems, and quite often do
so (at their own expense), to alleviate the potential for
digging up a new street several years later for utility
repairs.
I believe that the SPUC policy should be more flexible and
some consideration should be given to upgrading deficient or
"borderline" systems during street reconstructions, at no
expense to the City.
Contract Administrator.
On public works projects, the actual contract is usually
signed between the City and the contractor. The Engineering
Department is responsible for administering the contract,
but the SPUC manager must also approve all payments, change
orders, etc. This creates the potential for conflicts,
delays or disagreements between the two administrators, with
the contractor stuck in the middle.
I believe that it would be more desirable and efficient for
one entity to administer the construction contracts, namely
the City (as a party of the contract). An alternative would
be to remove all watermain work from the City contracts and
require a separate contract for that work, signed and
administered solely by SPUC.
3. Inspection.
This item is related to contract administration. During the
course of a project, the Engineering Department inspects all
work, except the watermain which is inspected by SPUC
employees, but the actual payment and estimate of quantities
for the watermain is processed by the Engineering
Department.
Again, this creates the potential for conflicts and also
results in a duplication of effort since the sewer and water
are often installed by the same contractor at the same time.
Having two inspectors on the site reduces the overall
efficiency of all parties.
I believe that the City should assume the inspection of all
new watermain, since our inspectors are on the site anyway.
SPUC would still be involved if there are any problems or
field changes to the original design. Once the work is
completed and accepted, it would then be turned over to SPUC
for all future maintenance.
4. Design Criteria.
There is the need for establishing consistent SPUC design
criteria to conform to City criteria and requirements.
One example of this are the shut-off valves for service
connections. The City requires all new plats to provide a
10 ft. utility and drainage easements on all lots,
specifically for the purpose of installing the water shut
off valves 9 feet in from the right-of-way line. This
allows room behind the curb for all of the other underground
utilities, protects the valves and is an accepted practice
in other communities and generally used by many design
engineers. SPUC is now requiring that all shut off valves
be installed within the actual right-of-way, thereby
eliminating the need for any easements. Some uniformity
between the two policies should be established. Staff has
requested that SPUC revise their criteria for this item, but
no further communication has ensued.
5. Aatermain Oversizing Policy.
The SPUC oversizing policy does not agree with the City's
special assessment oversizing policy. These two policies
I
should be consistent. In addition, SPUC apparently only
applies their policy to those developers who request it,
rather than apply to all projects equally.
6. Developers Agreement.
Again, on public improvement projects a prospective
developer has a choice of constructing all improvements or
having the City construct them. This process is covered by
a developers agreement. SPUC would prefer that all
reference to watermains be approved by them prior to
executing such agreements or else require a separate
agreement directly between SPUC and the developer. Again,
since all portions of a public improvement project are so
inter—related this policy has the potential to introduce
conflicts and misunderstandings between all parties.
These are just a few topics that should be discussed between City
staff and SPUC staff. I do not know if the joint meeting is the
proper arena to discuss these, but I wanted you to at least be
aware of them.
If you have any questions, please advise.
DH/pmp
POLICIES
P453e.o our ✓3Y
SPuc. tir WEFFiNS
Citycash
PAYMENTS FROM THE SHAKOPEE PUBLIC UTILITIES
COMMISSION TO THE CITY OF SHAKOPEE
FIGURES WERE EXTRACTED FROM THE AUDIT REPORTS
YEAR
SOURCE
DOLLARS
TOTAL PAYMENT
1966
ELECTRIC CASH CONTRIBUTION
41,400
$63,381
DONATED STREET LIGHT ELECTRICITY
13,490
DONATED STREET LIGHT MAINTENANCE
4,891
WATER CASH CONTRIBUTION
3,600
1957
ELECTRIC CASH CONTRIBUTION
50,612
$76,383
DONATED STREET LIGHT ELECTRICITY
9,335
DONATED STREET LIGHT MAINTENANCE
10,451
WATER CASH CONTRIBUTION
51985
1968
ELECTRIC CASH CONTRIBUTION
63,660
$97,490
DONATED STREET LIGHT ELECTRICITY
12,163
DONATED STREET LIGHT MAINTENANCE
14,903
WATER CASH CONTRIBUTION
6,764
1969
ELECTRIC CASH CONTRIBUTION
64,112
$97,807
DONATED STREET LIGHT ELECTRICITY
14,940
DONATED STREET LIGHT MAINTENANCE
10,973
WATER CASH CONTRIBUTION
7,782
1970
ELECTRIC CASH CONTRIBUTION
68,192
$112,645
DONATED STREET LIGHT ELECTRICITY
19,561
DONATED STREET LIGHT MAINTENANCE
14,965
WATER CASH CONTRIBUTION
9,927
1971
ELECTRIC CASH CONTRIBUTION
76,776
$118,956
DONATED STREET LIGHT ELECTRICITY
23,948
DONATED STREET LIGHT MAINTENANCE
8,165
WATER CASH CONTRIBUTION
10,067
1972
ELECTRIC CASH CONTRIBUTION
83,605
$130,274
DONATED STREET LIGHT ELECTRICITY
26,381
DONATED STREET LIGHT MAINTENANCE
9,620
WATER CASH CONTRIBUTION
10,668
1973
ELECTRIC CASH CONTRIBUTION
97,476
$145,869
DONATED STREET LIGHT ELECTRICITY
26,890
DONATED STREET LIGHT MAINTENANCE
8,167
WATER CASH CONTRIBUTION
13,336
1974
ELECTRIC CASH CONTRIBUTION
125,111
$179,440
DONATED STREET LIGHT ELECTRICITY
32,105
DONATED STREET LIGHT MAINTENANCE
4,226
WATER CASH CONTRIBUTION
17,998
1975 ELECTRIC CASH CONTRIBUTION
136,780
$213,574
DONATED STREET LIGHT ELECTRICITY
42,123
DONATED STREET LIGHT MAINTENANCE
15,442
WATER CASH CONTRIBUTION
19,229
1976 ELECTRIC CASH CONTRIBUTION
186,325
$257,738
DONATED STREET LIGHT ELECTRICITY
41,034
DONATED STREET LIGHT MAINTENANCE
8,835
WATER CASH CONTRIBUTION
21,544
1977
ELECTRIC CASH CONTRIBUTION
217,926
$281,692
DONATED STREET LIGHT ELECTRICITY
31,889
DONATED STREET LIGHT MAINTENANCE
9,458
WATER CASH CONTRIBUTION
22,419
FORMULA CHANGE
1978
ELECTRIC CASH CONTRIBUTION
192,139
$276,011
DONATED STREET LIGHT ELECTRICITY
18,751
DONATED STREET LIGHT MAINTENANCE
16,876
WATER CASH CONTRIBUTION
48,245
1979
ELECTRIC CASH CONTRIBUTION
179,422
$275,633
DONATED STREET LIGHT ELECTRICITY
22,141
DONATED STREET LIGHT MAINTENANCE
13,108
WATER CASH CONTRIBUTION
60,982
1980
ELECTRIC CASH CONTRIBUTION
176,442
$281,479
DONATED STREET LIGHT ELECTRICITY
23,976
DONATED STREET LIGHT MAINTENANCE
17,119
WATER CASH CONTRIBUTION
63,942
1981
ELECTRIC CASH CONTRIBUTION
203,581
$296,298
DONATED STREET LIGHT ELECTRICITY
24,112
DONATED STREET LIGHT MAINTENANCE
13,144
WATER CASH CONTRIBUTION
55,461
1982
ELECTRIC CASH CONTRIBUTION
222,424
$308,137
DONATED STREET LIGHT ELECTRICITY
27,185
DONATED STREET LIGHT MAINTENANCE
9,050
WATER CASH CONTRIBUTION
49,478
1983
ELECTRIC CASH CONTRIBUTION
219,496
$302,178
DONATED STREET LIGHT ELECTRICITY
26,093
DONATED STREET LIGHT MAINTENANCE
10,027
WATER CASH CONTRIBUTION
46,562
1984
ELECTRIC CASH CONTRIBUTION
227,662
$308,634
DONATED STREET LIGHT ELECTRICITY
26,874
DONATED STREET LIGHT MAINTENANCE
6,460
WATER CASH CONTRIBUTION
47,638
1985 ELECTRIC CASH CONTRIBUTION
278,477
DONATED STREET LIGHT ELECTRICITY
24,815
DONATED STREET LIGHT MAINTENANCE
14,872
WATER CASH CONTRIBUTION
55,298
1986 ELECTRIC CASH CONTRIBUTION
287,723
DONATED STREET LIGHT ELECTRICITY
26,853
DONATED STREET LIGHT MAINTENANCE
9,611
WATER CASH CONTRIBUTION
54,868
1987 ELECTRIC CASH CONTRIBUTION
300,497
DONATED STREET LIGHT ELECTRICITY
24,711
DONATED STREET LIGHT MAINTENANCE
81905
WATER CASH CONTRIBUTION
77,701
$373,462
$379.055
$411,814