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09/12/1989
TENTATIVE AGENDA ADJ. REG. SESSION SHAKOPEE, MINNESOTA SEPTEMBER 12, 1989 Mayor Dolores Lebens presiding 1] Roll Call at 7:00 P.M. 2] Scott County 1990-94 Capital Improvement Plan - tabled 9/5 bring item 8c 3] Letter from Gary Scott regarding Mr. Krass' letter dated July 18, 1989 - bring item 8d 4] Agenda items deleted from Sept. 5th agenda: a] Ordinance No. 275, amending the zoning regulations b] Elimination of left turns at Holmes and Lewis Streets off of Highway 101 c] Ordinance No. 274, amending the refuse collection d] Code of Ethics Bring items 10a, lob, 10c, and lip from Sept. 5th agenda 5] Reconsideration of Assessment Agreement with Scott County at the request of Gary Scott - bring item llc 6] Reconsideration of Res. No. 3110, Providing for the Issuance and Sale of $3,600,000 G.O. Tax Increment Bonds - bring. item 12e. 7] Reconsideration of street feasibility study for the Bergquist Company - bring item llb. 8] Funding A Joint Study - City/County/School 9] Vacation of Park Land in Timber Trails 10] Super 8 Partnership Application for Reduction in Assessed Valuation 11] 1990 Budget - bring budget handed out September 5th 121 Staff Reorganization - memo on table 13] Other Business: a] b] C) 14] Adjourn to Tuesday, September 19, 1989 at 7: 00 P.M. Dennis R. Kraft City Administrator STORM SEWER IMPROVEMENTS 6 CERTIFICATION OF MINUTES RELATING TO $1,965, 000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1989A Issuer : City of Shakopee, Minnesota Governing body: City Council Kind, date, time and place of meeting: A regular meeting held on Tuesday, September 12, 1989, at 7 :30 o'clock, P.M. , at the City Hall. Members present: Members absent : Documents attached: Minutes of said meeting (pages) : RESOLUTION NO. _// RESOLUTION RELATING TO $1,965,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1989A; CALLING FOR THE PUBLIC SALE THEREOF I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer and the seal of the City this _ day of September, 1989 . Judith Cox, City Clerk 9440Y Councilmember introduced the following resolution and moved its adoption: RESOLUTION NO. 3113 RESOLUTION RELATING TO $1,965,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1989A; CALLING FOR THE PUBLIC SALE THEREOF BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota (the City) , as follows : 1 . Authorization. It is hereby determined to be necessary and expedient for the City to sell and issue its general obligation tax increment bonds in the principal amount of $1,930 ,612 to finance costs to be incurred by the City in constructing storm sewer improvements in aid of its Minnesota River Valley Housing and Redevelopment District No. 1 in accordance with its Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 and 4 , and to issue and sell, together with said bonds, $34 ,388 of bonds of the same series , representing interest as provided in Minnesota Statutes, Section 475. 56 . Such bonds shall be denominated "General Obligation Tax Increment Bonds, Series 1989A, " and shall be issued in the aggregate principal amount of $1,965,000 (the Bonds) . 2 . Sale. This Council shall meet at the time and place specified in the notice of sale hereinafter prescribed for the purpose of receiving sealed bids and awarding sale of the Bonds . The City Clerk-Treasurer is hereby authorized and directed to cause notice of the time, place and purpose of the meeting to be published in the official newspaper of the City and in Commercial West once not less than ten days before the date of said meeting in substantially the following form: -2- NOTICE OF BOND SALE $1 ,965, 000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1989A CITY OF SHAKOPEE, MINNESOTA NOTICE IS HEREBY GIVEN that the City of Shakopee, Minnesota, will receive sealed bids for the purchase of $1 , 965,000 General Obligation Tax Increment Bonds, Series 1989A, of the City (the Bonds) , until 11 : 00 A.M. , Central Time, on Tuesday, October 3, 1989 , at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, St . Paul , Minnesota 55101-2143 at which time the bids will be opened and tabulated for presentation to the City Council for action thereon at a meeting to be held at the City Hall at 7: 30 P.M, on the same day. No bid submitted may be withdrawn before the Council meeting. The Bonds will be issued for the purpose of financing costs to be incurred by the City in aid of its Minnesota River Valley Redevelopment District No. 1 . The Bonds will be issuable as fully registered bonds, in denominations of $5,000 or any integral multiple thereof, will be dated, as originally issued, as of November 1, 1989, and will mature on February 1 in the following years and amounts: Year Amount Year Amount 1991 $ 70, 000 1998 $160,000 1992 110, 000 1999 170,000 1993 115, 000 2000 180,000 1994 125, 000 2001 190 ,000 _ 1995 130, 000 2002 205,000 1996 140, 000 2003 220,000 1997 150,000 - Bonds having stated maturities in 1996 and later years are each subject to redemption at the option of the City, in inverse order of maturities and in $5, 000 principal amounts selected by lot within a maturity, on February 1, 1995, and any date thereafter, at a price equal to the principal amount thereof plus interest accrued to the date of redemption. Interest will be payable on each February 1 and August 1 , commencing August 1, 1990 . A legal opinion will be furnished by Dorsey 6 Whitney, of Minneapolis, Minnesota. Copies of the Official Terms of Offering and additional information may be obtained from the undersigned or from Springsted Incorporated at the above address, telephone 612-223-3000, financial consultants to the City. Dated: September 12, 1989 . BY ORDER OF THE CITY COUNCIL - Judith Cox, City Clerk City of Shakopee, Minnesota -3- 3 . official Terms of Offering. The following official Terms of Offering shall constitute the terms and conditions for the sale and issuance of the Bonds and such terms and conditions are hereby authorized to be incorporated in material distributed to prospective bidders for the Bonds: -4- 09/e8/89 10'23 $til[ 223 3002 JYKI]6a�tu tit. OFFICIAL TERMS OF OFFERING $1,965,000 CITY OF SHAKOPEE, MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1989A Sealed bids for the Bonds will be received by the City or Its designee on Tuesday, October 3, 1989, until 11:00 A.M. Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated November 1, 1989, as the date of original issue, and will bear Interest payable on February 1 and August 1 of each year, commencing August 1, 1990. Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. The Bonds will be issued In the denomination of $5,000 each, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and Interest, Principal will be payable at the main corporate office of the registrar and Interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February 1 in the years arrd amounts as follows: 1991 $ 70,000 1996 $140,000 2000 $180,000 1992 $110,000 1997 $150,000 2001 $190,000 1999 $115,100 1998 $160,000 2002 $205,000 1994 $125,000 1999 $170,000 2003 $220,000 1995 $130,000 OPTIONAL REDEMPTION The City may elect on February 1, 1995, and on any day thereafter, to prepay Bonds due on or after February 1, 1996. Redemption may be in whole or in part and if in part, in inverse order of maturity and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par and accrued Interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax Increment Income from the City's tax Increment financing District's No. 1 and 4. The proceeds will be used to finance eligible project costs within the City. TYPE OF: BID Bids shall be for not less than $1,930,612 and accrued interest on the total principal amount of the Bonds, and shall be accompanied by a certified or cashier's check in the amount of $19,650, payable to the order of the City. No bic will be considered for which said check has not been received. The City will deposit the thank of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the 09,08i89 1523 $612 223 30e2 SPRIMCSrhu INI:. auuo,uua purchaser falls to comply with the accepted bid, said amount will be retained by the City. No bid can be withdrawn after the time set for receiving bids unless the meeting of the City scheduled for award of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in Integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional bid will be accepted. AWARD The Bonds will be awarded to the bidder offering the lowest dollar Interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, to the total dollar Interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total not dollar interest cost of each bid, In accordance with customary practice, will be controlling. The City will reserve the right to: (1) waive non-substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (ill) reject any bid which the City determines to have failed to comply with the terms herein. REGISTRAR The City will name the registrar which shalt be subject to applicable SEC regulations. The City will pay for the services of the registrar, CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shelf be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Dorsey & Whitney of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reasons of the purchaser's noncompliance with said terms for payment. OFFICIAL STATEMENT Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The purchaser will be provided with So copies of the Official Statement. Dated September 11, 1988 BY ORDER OF THE CITY COUNCIL /a/Judith Cox Clerk - ii .. C 4 . official Statement . The city Clerk and other officers of the--city, n cooperation with Springsted Incorporated, financial consultant to the City, are hereby authorized and directed to prepare on behalf of the City an official statement to be distributed to potential purchasers of the Bonds . Such official statement shall contain the statement of official Terms of offering set forth in paragraph 3 hereof and such other information as shall be deemed advisable and necessary to describe accurately the City and the security for, and terms and conditions of , the Bonds . Mayor Attest : City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Councilmember and upon vote being taken thereon, the following voted in favor : and the following voted against the same: whereupon said resolution was declared passed and adopted, and was presented to and approved by the Mayor, whose signature was attested by the city Clerk. -5- BRIDGE IMPROVEMENTS y' CERTIFICATION OF MINUTES RELATING TO $1, 635,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 19893 Issuer: City of Shakopee, Minnesota Governing body: City Council Kind, date, time and place of meeting: A regular meeting held on Tuesday, September 12, 1989, at 7:30 o ' clock, P.M. , at the City Hall . Members present: Members absent: Documents attached: Minutes of said meeting (pages) : RESOLUTION NO. '6 RESOLUTION RELATING TO $1,635,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 19898; CALLING FOR THE PUBLIC SALE THEREOF I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer and the seal of the City this _ day of September, 1989 . Judith Cox, City Clerk 935BY Councilmember introduced the following resolution and moved its adoption: RESOLUTION NO. 3114 RESOLUTION RELATING TO $1,635,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1989B; CALLING FOR THE PUBLIC SALE THEREOF BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota (the City) , as follows: 1. Authorization. It is hereby determined to be necessary and expedient for the City to sell and issue its general obligation tax increment bonds in the principal amount of $1,606,387 to finance costs to be incurred by the City in constructing bridge improvements in aid of its Minnesota River Valley Housing and Redevelopment District No. 1 in accordance with its Tax Increment Financing Plans for Tax Increment Financing Districts No. 1 and 4, and to issue and sell, together with said bonds, $28,613 of bonds of the same series, representing interest as provided in Minnesota Statutes, Section 475.56. Such bonds shall be denominated "General Obligation Tax Increment Bonds, Series 19898, " and shall be issued in the aggregate principal amount of $1, 635,000 (the Bonds) . 2. Sale. This Council shall meet at the time and place specified in the notice of sale hereinafter prescribed for the purpose of receiving sealed bids and awarding sale of the Bonds . The City Clerk-Treasurer is hereby authorized and directed to cause notice of the time, place and purpose of the meeting to be published in the official newspaper of the City and in Commercial West once not less than ten days before the date of said meeting in substantially the following form: I NOTICE OF BOND SALE $1, 635 ,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1989B CITY OF SHAKOPEE, MINNESOTA NOTICE IS HEREBY GIVEN that the City of Shakopee, Minnesota, will receive sealed bids for the purchase of $1,635,000 General Obligation Tax Increment Bonds, Series 19898, of the City (the Bonds) , until 11 :00 A.M. , Central Time, on Tuesday, October 3, 1989, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, St . Paul, Minnesota 55101-2143 at which time the bids will be opened and tabulated for presentation to the City Council for action thereon at a meeting to be held at the City Hall at 7:30 P.M, on the same day. No bid submitted may be withdrawn before the Council meeting. The Bonds will be issued for the purpose of financing costs to be incurred by the City in aid of its Minnesota River Valley Redevelopment District No . 1 . The Bonds will be issuable as fully registered bonds, in denominations of $5,000 or any integral multiple thereof, will be dated, as originally issued, as of November 1, 1989, and will mature on February 1 in the following years and amounts: Year Amount Year Amount 1991 $60,000 1998 $130, 000 1992 90 ,000 1999 140,000 1993 95,000 2000 150,000 1994 105,000 2001 160,000 1995 110,000 2002 170 ,000 1996 115,000 2003 185, 000 1997 125,000 Bonds having stated maturities in 1996 and later years are, each subject to redemption at the option of the City, in inverse order of maturities and in $5,000 principal amounts selected by lot within a maturity, on February 1, 1995, and any date thereafter, at a price equal to the principal amount thereof plus interest accrued to the date of redemption. Interest will be payable on each February 1 and August 1, commencing August 1, 1990. A legal opinion will be furnished by Dorsey 6 Whitney, of Minneapolis, Minnesota. Copies of the Official Terms of Offering and additional information may be obtained from the undersigned or from Springsted Incorporated at the above address, telephone 612-223-3000, financial consultants to the City. Dated: September 12, 1989 . BY ORDER OF THE CITY COUNCIL Judith Cox, City Clerk City of Shakopee, Minnesota -2- 3 . Official Terms of i Offerng. The following Official Terms of Offering shall contitute the terms and conditions for the sale and issuance of the Bonds and such terms and conditions are hereby authorized to be incorporated in material distributed to prospective bidders for the Bonds : I -3- 09i08i89 15:24 0612 223 3002 SPRINGSTFA INC. / OFFICIAL TERMS OF OFFERING v $1,635,000 CT'OF SHAKOPEE, MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 19899 Sealed bids for the Bonds will be received by the City or its designee on Tuesday, October 3, 1989, until 11:00 A.M. Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota after which time they will be Opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, Of the same day. DETAILS OF THE BONDS The Bonds will be dated November 1, 1989, as the data of original Issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1990. Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRS. The Bonds will be issued in the denomination of$5,000 each, or In integral multiples thereof, as requested by the purchaser, and fully registered as to principal and Interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February 1 in the years and amounts as follows: 1991 $ 60,000 1996 $115,000 2000 $150,000 1992 $ 90,000 1997 $125,000 2001 $160,000 1993 $ 95,000 1998 $130,000 2002 $170,000 1994 $105,000 1999 $140,000 2003 $185,000 1995 $110,000 OPTIONAL REDEMPTION The City may elect on February 1, 1995, and on any day thereafter, to prepay Bonds due on or after February 1, 1996, Redemption may be in whole or in part and if In pert, in Inverse order of maturity and within a maturity by lot as selected Dy the registrar. All prepayments shall be at a price of par and accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax increment Income from the City's tax Increment Lnancing District's No. 1 and 4. The proceeds will be used to finance eligible project coats within the City. TYPE Of: BID Bids shall be for not less than $1,606,387 and accrued Interest on the total principal amount of the Bonds, and shall be accompanied by a certified or cashier's check in the amount of $16,350, payable to the order of the City. No bid will be considered for which said check has not been received. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the 09/08/89 15'25 0612 223 3002 SPKtKwrtu purchaser fails to comply with the accepted bid, said amount will be retained by the City. No bid can be withdrawn after the time set for receiving bids unless the meeting of the City scheduled for award of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No condit(onal bid will be accepted. AWARD The Bonds will be awarded to the bidder offering the lowest dollar Interest cost to be determined by the deduction of the premium, If any, from, or the addition of any amount less than par, to the total dollar interest on the Bonds from their data to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controlling. The City will reserve the right to: (1) waive non-substantive Informalities of any bid or of matters relating to the receipt o1 bids and award of the Bonds, (i) reject all bids without cause, and, (Iii) reject any bid which the City determines to have failed to comply with the terms herein. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations, The City will pay for the services of the registrar, CUSIP NUMBERS M the Bonds quality for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall to paid by the purchaser, SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutualty satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Dorsey & Whitney of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no-Otigation certlficats. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or Its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reasons of the purchaser's noncompliance with said terms for payment. OFFICIAL STATEMENT Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The purchaser will be provided with 50 copies of the Oficial Statement. Dated September 11, 1988 BY ORDER OF THE CITY COUNCIL /s/Judith Cox Clerk 4 . Official Statement . The City Clerk and other officers of the City, in cooperation with Springsted Incorporated, financial consultant to the City, are hereby authorized and directed to prepare on behalf of the City an official statement to be distributed to potential purchasers of the Bonds. Such official statement shall contain the statement of Official Terms of Offering set forth in paragraph 3 hereof and such other information as shall be deemed advisable and necessary to describe accurately the City and the security for, and terms and conditions of, the Bonds. Mayor Attest: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Councilmember and upon vote being taken thereon, the following voted in favor: and the following voted against the same: whereupon said resolution was declared passed and adopted, and was presented to and approved by the Mayor, whose signature was attested by the City Clerk. -4- g MEMO TO: Honorable Mayor and City Council FROM: Dennis R. Kraft, City Administrator RE: Funding of Joint Tax Study DATE: September 8, 1989 Introduction At the regular Council meeting of September 5th the City Council indicated, by a 4 to 2 vote, support for financial participation in the conduct of a joint tax study with the County of Scott and Independent School District No. 720. Background As all Councilmembers are well aware property taxpayers in Shakopee experienced a dramatic increase in their property taxes payable for the year 1990. One response to this dilemma was for a study to be conducted to attempt to determine the root causes of this problem. RFP's were sent out and two proposals were received. Following that the firm of Olson Theilen was recommended to do the study. Following that ISD 720's Board of Directors decided that, because of their financial condition, they could not support the $100,000+ study. Subsequently, an attempt was made to diminish the scope of the study without losing the overall objective. Olson Theilen has submitted a revised proposal which has a cost associated with it of $61,250. This represents a City contribution of approximately $20,500 plus related out-of-pocket expenses. The out-of-pocket expenses for the City will be less than $1,000. Attached to this memo is a copy of the original submission from Olson Theilen and their revised estimate dated September 7, 1989. This proposal will be submitted to the ISD 720 Board on Monday, September 11th and the Scott County Board of Commissioners on Tuesday, September 12th. At the time of the City Council meeting during the evening of September 12th we will know what actions the other two governmental entities have taken on this study. I anticipate that both will approve the funding of the study. Alternatives 1. Approve the study as submitted. 2. Reject the proposal and do not participate in the study. Recommendation It is recommended that the City Council approve participation in the study and agree to pay one-third of the cost provided that both the Scott County Board of Commissioners and ISD 720 agree to also financially participate in the study. Action Requested Move to approve participation in the joint tax study with the Scott county Board of Commissioners and ISD 720 in the amount of $20,416.67 plus out-of-pocket expenses provided that the other two governmental entities also fund their representative one-third shares of the study. Further move to direct the appropriate City officials to enter into an agreement with Olson Theilen for the conduct of the study. DRK/jms . - 89 T H u 0 9 :.3 a O L S E N !'r OLSEN THMLEN &CO.. LTD. L� Ct "NUdP blic Accountants B Consultanu September 7, 1989 Mr. Joseph F. Ries Administrator Scott County Courthouse 118 428 South Holmes Street Shakopee, Minnesota 55379-1382 Dear Mr. Ries: Following our meeting on August 30, 1989, the following considerations and changes to the original RFP have been incorporated into our proposal. 1. Review the methodology of the Springsted study and incorporating the data into our report. 2. Property valuation process - use of state to do a study, specifically the Department of Revenue or check on data available for use in the report. 3. Fiscal Disparity - use of Springsted. 4. Tax increment financing - drop compliance audit, change to an Impact analysis of tax increment financing for future years. 5. Role of the county auditor - reviewing calculation of 'fiscal disparities contributions to tax increment financing to tax revenue fluctations for a 5 year period (1984 - 1988). All of the above were considered in the revised fee estimate attached. If you need further information or explanation, please call me or Paul Dahlke. Sin/ceerrely, ? Dennis R. Carson, CPA Vice President and Director DRC/mmo Enclosure 223 [i,de Canada Road,S[. Paul. Sonne ota 55117 612 4834521 FAX 612 4832467 .- 89 T H U 0 9 - „ e O L S E N T H Z E L E N P - © s SCOTT COONTT COMMITTEE REQUEST FOR PROPOSALS FEE ESTIMATE SEPTEMBER 6, 1989 Section One General - A, B, C $10,900 Fiscal Disparity - F 2,T50 Tax Increment - E, 1 21,100 Other - D 11,000 - H (20-25 properties) 11,000 - G 4,500 Total 361.250 Section Two - implementation of Recommendations Based on the statement of recommendations in Section One, any recommendation which the Joint Committee feels they need assistance in implementing and subsequent follow-up, Olsen, Thielen & Co., Ltd. will do for $800 per recommendation. For example, a recommendation to control spending would be handled by the responsible jurisdication of the Committee. However, if we recommend a procedural change in the steps followed by the county auditor in his calculations, we would write it up and follow through (if the Committee so chooses). Section Three No changes from original ($4,500) 1. Section H is based on 20 - 25 properties rather than 50 properties as listed in the outline on June 26, 1989. 2. Section I has changed to no compliance audit, rather Section I will be an impact analysis of the tax increment financing for future years. 3. All of the above fees are "not to exceed" amounts. 4. The use of consultants is included In the above total. 5. Out of pocket expenses of Olsen, Thielen h Co., Ltd. (detailed in original bid) and consultants are not included. JOINT COMMITTEE SUMMARY OUTLINE OF OLSEN, THIELEN do CO., LTD.'S PRESENTATION AUGUST 30, 1989 1. Approach Outline Section One - Conduct Property Tax Study A. Analyze cost and revenue structures of the entities - Review the entities' budgets, expenditures, receipts (revenues) - Analyze the percentage of property tax contribution to revenue stream - Relate to a base year and compare to other consumer rates B. Compare and contrast the role of property taxes of the entities with similar entities in the metro area - Information requested in A compared to other entities of similar types in the metro area C. Analyze the property tax base of each jurisdiction of the Joint Committee members - Analyze the data available from the assessor D. Analyze the property tax valuation procedures and practices of Scott County - Review incoming data to the county - Review data collection procedures of the field personnel - Document methods used to compute values on different classes of property - Review methods used to determine neighborhoods and if differences in values are noted, how is that difference used in the valuation process - Review with county staff the procedures to insure equitability of values within their areas of responsibility - Review office procedures relating to value generation and the workflow of the office to insure maximum effectiveness with those procedures S- E. Qualify and analyze the extent and effect of tax increment financing on Scott County and surrounding counties - Identify the Tax Increment (TI) districts within Scott County, reviewing their organizational papers, noting similarities and differences in TI districts - Review tax burden of each TI district today and as it is projected for the life of the district - Review the TI dollars and the areas being served by those projects - Determine the tax burden the TI districts are placing on the non-TI properties - Review similar information for the surrounding metro counties F. Quantify and analyze the extent and effect of fiscal disparities (FD) on the Joint Committee jurisdictions as compared with other metro jurisdictions - Review the properties governed by fiscal disparities in Scott County - Determine methods used to establish the dollars (percentages) to be applied by each of the metro counties - Review procedures used by the Fiscal Disparities Fund Committee as they apply to Scott County - Contrast tax burden implied by fiscal disparity payments - Review collection and settlement practices. Compare these practices with other metro counties - Review FD monies returned to the "Committee" - Review FD practices in other metro counties G. Review local government and state aid formulas for the Joint Committee jurisdictions versus other metro areas - Analyze the local government and state aid received by the entities - Research other metro counties and compare to the Scott County jurisdictions - Review the effect of the formulas on the overall revenues received (i.e. the need for excess levies) H. Review and compare property taxes on comparable properties in similar areas in Scott County and adjacent metro counties - The types of property that should be studied must be identified by the "Committee" (residential, commercial, seasonal rec.) - Selection of 50 properties which are similar in classification and in different areas of Scott County - Determine any difference in taxation between similar properties in Scott County - Determine any differences in taxation between similar properties from Scott County in relation to properties in adjacent counties I. Compliance Audit - Analyze and document the procedures of the tax increment financing administration - Discuss with staff all procedures involved - Test the compliance with established collection and remittance procedures J. Report the results of the study to the Joint Committee. - Method of analysis used - Review of the analysis - Statement of findings with detailed analysis of the role of property tax - Statement of recommendations Section Two - Implementation of Recommendations - Document the estimated time to establish the recommended changes in Section One - Document the cost to improve and savings of the recommendations Section Three - Outline of Management Study and Review - Briefly review the management functions to develop the outline Presented By: Dennis R. Carson, Vice-President and Director Paul D. Dahlke, Manager JOINT COMMITTEE AUGUST 30, 1989 Full Study Reduced Study Original Proposal Section I General - A, B. C, G $ 15,400 Fiscal Disparity - F 26,000 Tax Increment - E, I 27,600 Other - D, H 34,000 Total $103.000 Alternatives Scott County Approach General - A, 8, C. G $ 15,400 $15,400 Fiscal Disparity - F (Scott only) 13,000 13,000 Tax Increment - E. I (Scott only) 14,600 14,600 Other - D 17,000 11,000 Total $ 60,000 $54.000 Metro Approach General - A. B, C. G $ 15,400 $15,400 Fiscal Disparity - F (Compare Metro) 13,000 13,000 Tax Increment - E (Compare Metro) 13,000 13,000 Other - H 17,000 11,000 Total 8 58,400 $52.400 9 MEMO TO: Dennis R. Kraft, City Administrator FROM: Judith S. Cox, City Clerk RE: Vacation of Park Land in Timber Trails DATE: September 7, 1989 INTRODUCTION: In order to follow up with Council direction to staff, it is appropriate at this time for the appropriate city officials to be authorized to execute an easement over the East 10 feet of the park property located in Timber Trails, for lake access. BACKGROUND: You will recall that during the platting of Stonebrooke, City Council agreed to lease to the developer the 66 foot park located adjacent to the golf course. It was subsequently learned that the City could not lease park property dedicated on a plat. It was later discovered that it was possible to vacate park property. The vacation of park property would result in the ownership of the property going back to the original owner of the property at the time of platting. If the original owner of the park in question was agreeable to deeding the property to the City, the City could then go through the vacation process and once the park was vacated, the City could lease the property to the owners of the golf course. The property owners living within Timber Trails were agreeable to the vacation of the park property with the condition that they continue to have lake access by virtue of an easement. The original fee owner was contacted and agreed to deed the park property to the City. On May 16, 1989, Council moved to authorize the Assistant City Attorney to file the deed to the 66 foot park in Timber Trails giving the City fee title and further authorized the vacation action in District Court subject to the obligation of the Stonebrooke developers paying all court costs and fees related thereto and the dedication of an easement over the East 10 feet of the property for lake access for property owners of Timber Trails and Stonebrooke subdivisions. The application of the City of Shakopee to vacate the park land will be considered in district court on September 19th. The Assistant City Attorney, Rod Krass, is recommending that Council authorize the proper city officials to execute the easement for lake access for property owners of Timber Trails and Stonebrooke subdivisions. With this assurance that there will be an easement for lake access, there should be no need for property owners in Timber Trails to object to the vacation in District Court. RECOMMENDED ACTION: Authorize the proper city officials to execute an easement for lake access over the East 10 feet of that portion of the plat of Timber Trails designated as "park" and located immediately adjacent to and westerly of Lot 2, Block 5 for property owners of Timber Trails and Stonebrooke subdivisions. Y. Patrick Wrallitt, !fir, f Prolessional Association Law Olace 525 East First Avenue J.PATRICK LEAVITT,JR. Shakopee,Minnesota 55379 VIRGINIA RINGGENBERG Attorney at Law (612)045-3044 Paralegal Fax 445-7812 JAMES LEAVITT Associate September 8, 1989 Members of the City Council of the City of Shakopee 129 First Avenue East Shakopee, Minnesota 55379 RE: Timber Trails - Stonebrook Golf Club Lake Access Gentlemen: - I have been retained by the residents of Timber Trails to represent them in the City's action to vacate a tract of park land bordering Lake O'Dowd. I have read the minutes of your May 16, 1989 meeting and approve of the motion pertaining to the action to vacate and the granting of an easement to the residents of Timber Trails and Stonebrook subdivisions. ' My request is that the easement be amended to read "the East 12 ft."of the property. The possibility of fences, walls, or unreasonable property owners in the future, may make a 10 foot access impractical. I do thank you. Very truly yours, � AMESLLEAVITT, III y Attorney at Law JL:vr I have talked with Gary Laurent', Stonebrooke developer, and he has advised me that he has no objections to the 12' easement as opposed to the 10' easement. He will consult also with his partner. He agreed to provide me with a lettertothat affect by the Sept. 12th Council meeting. - - - Judy Cox, City Clerk. 9 azo V } SS37q /7" c.xs 4-0 (I T-� 7� 4) I' D STATE OF MINNESOTA DEPARTMENT OF REVENUE Mail Station 3340 St. Paul, MN 55146-3340 (612) 296-0185 AMENDED September 6,1989 Mr.Thomas Hennen Mr.Don Martin Scott County Auditor Scott County Auditor Scott County Courthouse Scott County Courthouse 428 S.Holmes Street 428 S.Holmes Street Shakopee,MN 55379 Shakopee,MN 55379 Ms.Judith Cox Clerk Shakopee City Clerk School District#720 Shakopee City Hall 505 S.Holmes 129 E. 1st. Avenue Shakopee,MN 55379 Shakopee,MN 55379 RE: Shakopee Super 8 Partnership City of Shakopee, County of Scott, State of Minnesota Application #340861 Parcel#27120 004 An error was discovered in our letter of August 7, 1989 to you informing you of the application for abatement filed with the Commissioner of Revenue for the above named property. Our letter misstated the original and corrected tax capacities for the taxes assessed in 1988 and payable in 1989. Our letter stated these figures as follows: ORIGINAL VALUES CORRECTED VALUES Market Value Tax Capacity Market Value Tax Capacity $1,142,800.00 $43,137.00 $858,000.00 $14,910.00 AN EQUAL OPPORTUNITY EMPLOYER Application #340861 September 6, 1989 Page Two The letter should have stated the following: ORIGINAL VALUES CORRECTED VALUES Market Value Tax Capacity Market Value Tax Capacity $1,142,800.00 $58,047.00 $858,000.00 $43,137.00 Your city has notified our office that they request a hearing on this abate- ment. If the city of Shakopee no longer wishes such a hearing due to this revised information, please inform us, in writing,as soon as possible. H the city wishes to continue the hearing, please call our office at 296-0185 so that we may proceed to schedule the hearing. Sincerely, MICHAEL P. WANDMACHER, Director Local Government Services Division MPW:smc MEMO TO: Honorable Mayor and City Council FROM: Dennis R. Kraft, City Administrator RE: Changes in City Organization DATE: September 12, 1959 INTRODUCTION• As I indicated to Council members earlier there are certain changes in the City organization that I think will allow for a more efficient execution of the mission of city government. The following recommendations are consistent with that objective. BACKGROUND: The Community Development Director's position is presently open and the Council has authorized interviews for filling that position. Two current City employees applied for the position and each was interviewed. It is my opinion that neither of the individuals interviewed for the position had the combined requisite amount of experience, education and other attributes to successfully fill the position. Therefore I am recommending that the position not be filled at this time and that Barry Stock who is presently the Administrative Assistant in Community Development be transferred to the newly created position of Assistant City Administrator. It is also my recommendation that Barry continue having direct responsibility for economic development activities and the Cable TV activities of the City. It is my intent to also be directly involved in economic development activities as required. I am recommending that both the Personnel function and the Management Information Systems (MIS) responsibilities be transferred to Administration. Barry would have direct responsibility for Personnel, MIS, Cable and Economic Development. The Planning function is presently short staffed. I would recommend that the position of Planner I be created. This is an entry level planning position and was in the budget a couple of years ago but the decision was made not to fill the position. In that two positions have been deleted from the Community Development Department there is a need for additional staffing. The difference between a Planner I and a Community Development Director represents a savings of something over $20,000 per year. With additional staff in planning it could also be responsible for transit related activities and those relating to recycling and refuse. It is also possible that Finance could pick up some of the financial responsibilities of the transit operation; more specifically those relating to the processing of financial records filed with the Regional Transit Board. The attached revised organizational chart reflects the changes that I am recommending. This chart also depicts which staff would support the various advisory commissions of the City. RECOMMENDATIONS• The following recommendations are made for City Council consideration: 1. Transfer Barry Stock from Administrative Assistant in the Community Development Department to Assistant City Administrator in the Department of Administration responsible for economic development, personnel, MIS and cable TV. 2. Transfer Marilyn Remer, Personnel Coordinator and Steve Hurley, MIS Coordinator to the Department of Administration. 3. Direct that the Community Development Director position not be filled. 4. Authorize advertising for authorized advertising for the filling of a Planner I position in the planning operation. 5. Transfer transit and refuse and recycling to Planning at such time as the Planner I position is filled. ACTION REOUESTED• 1. Move to transfer Barry Stock from the position of Administrative Assistant in Community Development to Assistant City Administrator and direct the City Administrator to conduct a salary survey in order to set a salary range for the new position. 2. Move to transfer Personnel and MIS from Finance Department to Administration. 3. Move to transfer the economic development function from Community Development to Administration. 4. Move to transfer Cable from Community Development to Administration. 5. Eliminate the Community Development Department and create a Planning Department. w TV Im I jm I d IO O: WOI ; 1<0! 10� Icw Im� I a , gl Z i 1. 0s' pl mE m E `o col �c� ! ' d `•�- 'o� IE�E ; jEo! iaU' a SII 9 iUl I mo III 4 .> Iz �i I 'V n A I i ui L-i H 1 41 oil � E— .01 � . IO Io I u N m n ' 3il x c m I e iE � v a IZ c `o of Ec IO o Il a' I LJ T I �I aoi laa. co' ur� wS Ew i3..! u ? E I.°.6 vE"c e�I i c oal I��aj, IOUi°S9 cK ,�c>; F .a $ n m O TO: THE SHAKOPEE CITY COUNCIL FROM: JOE ZAK DATE: SEPTEMBER 12,1989 REF: THE SPRING NEW HOME MINNEAPOLIS STAR TRIBUNE IOF (PARADE EHOMES) 1989 SUBJ: THE FALL NEW HOME PREVIEW (PARADE OF HOMES) MINNEAPOLIS STAR TRIBUNE OF SUNDAY SEPTEMBER 10,1989 FELLOW COUNCILMEMBERS: HERE WE ARE AGAIN! THE INSTANT REPLAY OF THE MARKETING OF SHAKOPEE - PART II. MTHE INNEAPOLISOAPS BUILDERSRE COPIED ASSOCIATIONH(PARADETHE NOFYPAPER SUPPLEMENT OF THE HOMES) I BELIEVE THAT THIS AP SPEAKS FOR ITSELF IN SHOWING THAT DEVELOPMENT AND SPRINGWTH HENIWET ADNONEART HOMELONAROUNUS,DISPLAY. .THISHFAILIL,EWEEAVENINQ HOMESEONHIS DISPLAY. THE LAST TIME I LOOKED, BOTH SAVAGE AND PRIOR LAKE ARE IN SCOTT COUNTY. OR CTHEY HAVE A SIMILAR SOOUNTY THIS TIME. YOUAHAVERTTONLOOKWATCANTHETNEWNESTLY CONSTRUCTBLAIIONT NECHASKAI,OTT EDEN PRAIRIE, BURNSVILLE, EAGAN . .EVEN VICTORIA. THERE IS CONSTRUCTION AND GROWTH ALL AROUND US AND WE SIT ISOLATED! !! ! NE ARE THE LARGEST CITY IN SCOTT COUNTY AND OUR MANE DOES NOT EVEN APPEAR ON THE MAP!!!! IF WE REJECT NEW INDUSTRY AND TRY TO STOP NEW BRIDGE AND ROAD CONSTRUCTION, ARE WE DOING SHAKOPEE A DISSERVICE?? THIS AP IS AN E19I11 GREATER RRpSSMENT TAN THE SPRIN6 ISSUE AND VERY VISUALLY POINTS OUT THE NEED FOR A PRO-BUSINESS, PRO-GROWTH AND PRD CITIZEN ATTITUDE. DOES IT MEAN THAT WE GIVE AWAY THE TOWN?? THE ATTITUDE COSTS US NDTHING AT ALL!! ! !�„ Z .AXE 12 C� WAYZATA 12 MINNETRISTA " QRONO "4 - .... ST. LOUIS PARK --yS�,. LAKE M/NNETONKA )TMOUND DEEPHAVEN MINNETONKA' LAKE SPRING - ?M��1 CALHOUN AtPARK C, � '' LAKE HARRIET EAA M y�,�,,; SHOhC' y\ D y r .•! 169 CHANHASSeN� rr-�, II ` ' LJEDEN PRAIRIE VICTORIA J CHASKA F:2 169 I -OOMINGTO x7z SAVAGE 3 CO. RD, 02 WESTERN SUBURBS BLOOMINGTON 10 T"Year CG-M ,Hi. 219 Arrrenaure w.aleemem carR m aamw woe.m tang,C...In. 11501 W.M.Way .Y98t Flaaercrd. )2 LWb Can N N. 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N NWJalnwn Conotruc8on,lnu ';2:HankPWa N mun,une,Design and Rude dEW FairweYHH pM 131NFawM1am Cwn r Ciwmm Ermrgy Nome4lrc. 8496renmoN Lane N Al Hemmm�CwmwNan.kre N LLWJWmson Lonabucfion,lne 'a3gys WWELam N Btlrm CMabu[8m.krc .W.=. .aa pNe eNI,&Mdk vc ] yY I+M Homes 3T1d RH9 b0^°T N MCOumM ComhuctM4 klc. N JW#BAIdx CauwctloR lm. 2 Rgn"Ylane 85 Mmpwmry W nand Rule 1 N IMW CM1m DrM 12]48 man Lane '� Bar Ak Buev4lrrc 37N WMIren Dma 8x Sessarel&ildera 85 I mtea Harass 12501 DYU9atY Trail :%'t DeemcM Trail ]6 ManWarrery Oeeipn are Rule 131Innwucnm Drne N Cnge[Herres 'x WealeY Cwwtmcea4lrre 3Y051ariWrw9e DrNeN 02 H3]]In clHaoc�en Oya 12115_MMasra Tmn e)^•S Joamaa]T-1 37 THSanailt Wmea r Na Mt moa CamL,Ine 3W2 Rua Or Sep sdN 6] Na.Honxon H.—I,Ine, BT R28dd Wrnan'A•eY -^n'oaa Trail 30 S.Fklenen Combuc8on IM <2666oulda Rg9e Panl amT-1 C0.lm. 120�MIe .I RmO N Oak Run Ask"Moalm. N ROWurw Hwma. oaTail 39 BwNr Noueln9 Com. IEW MAbrd Diy. 12W2 ECM lam hra L n7 R w18 Re9e RW 65 layd D.HHIk 5 Aaax.eu 80 918ou d.Horn. m T-1W Cowan.uitl,RW 6761 LwWn lam I0.t19 EamNer L.I. YC buclen 753Rife RM9e RwW 66 115'1edA WHane4lm. 00 Cµ66&bY Lam�1m xam Trail 61 WIaMB me CavelapnaMCarp 0] Jwik a AMr C=nRudoR Im. 21 kitlelataetll&m Cant,lnc a +na'e Cmlom Hwro . 7MWele Re,Read 225tMMganY WaY 14 EUewAe aS -:S CFanencn Road 42 RSM Hnme I— yJ VokandearinHamaa,I— SO BnAdon Cum 16745 EMiee Way '±eaMtilmlp Dyw. 43 R.Reard Hmm. APPLE VALLEY N Weneneen Hanka.we. x Mzuo Cmlmm Hame4 In. 112 Smeb49e(XNeS 14825 EnbassY Avpnun Malmiy D/ne µ Came.Hone. N 121. un Lameuctbn 04 RSM Hames.Inc. Hulme Cant.Nc 7125roneMd9e Cuc'a 12102 Gantry Wo 1.I.DrvminM&n Yal Pinmal Coun 45 SunM1im Combunion Ca.,lm. 08 DiebiA Buwne.lx N Wa Nina_ Rxhr SYpl Conebucll.'In . )85 Tronn Reke 1]23J Hureirplan Orin 9mr 3638 WdneMW 48 mile LanwcSM ta. ]0 SumM1ne eamwNoo La^Irrc N Bulb 7 4Hs.mm�nn Cmnbucdm,Inc. 595Autumn Gak Coun .953WroaC Cnw -'o On, 47 Plensch RwIeffs Im. ]t M.W.JaMe-Lonawction,lnw lYBs pYrtYin CAwl / J MEMO TO: Mayor and City Council FROM: Judith S. Cox, CityClerk RE: Filings for Upcoming Election DATE: September 12, 1989 At the close of business this day the following individuals have filed for elective office: Mayor: Dolores Lebens Gary Laurent Allan Hastings Council: Gloria Vierling Gary Scott Robert Sweeney Richard Kechely