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10/19/1993
MEMO TO: Honorable Mayor and City Council FROM: Dennis R. Kraft, City Administrator RE: Non-Agenda Informational Items DATE: October 15, 1993 1 . Attached is correspondence from Janet Williams, Scott County Library System Director regarding future needs at the library facility. 2 . Attached are the August 9, and September 1, 1993 minutes of the Shakopee Public Utilities Commission. 3 . Attached is a facsimile transmittal from MnDOT regarding the removal of the Naegele sign by Rahr Malting. 4 . Attached is the Police Newsletter for Council review. 5 . Attached are the October 7, 1993 minutes of the Planning Commission and Board of Adjustments & Appeals . 6 . Attached is a memorandum from the Public Works Director regarding the 1993 Reconstruction Project . 7 . The City has received notification and has been invited to submit comments relating to an application for acquisition of land to be held in trust for the benefit of the Shakopee Mdewakanton Sioux Community. The property in question is part of the abandoned r-o-w of the Chicago, Milwaukee, St . Paul and Pacific Railroad Company lying in N 1/2 SW 1/4 of 22-115N-22W. The property does not lie within the corporate limits of the City of Shakopee. We will not be commenting on the application. 8 . The Chamber has applied for an Exemption of Lawful Gambling License for October 28th. They meet the requirements of the City Code . 9 . Attached are the Revenue and Expenditure Reports as of September 30, 1993 . SCOTT COUNTY LIBRARY SYSTEM COURTHOUSE 428 S. HOLMES ST. SHAKOPEE, MN 55379-1395 (612) 496-8330 JANET WILLIAMS Director September 28, 1993 Barry Stock Assistant City Administrator Shakopee City Hall 129 S. Holmes St. Shakopee, MN 55379 Dear Barry: This letter is to keep you apprised of the progress at the Shakopee Public Library and to discuss future needs at the library facility. We are moving along with our plans for the carpet installation and rearrangement of the library. Tentatively this project is to take place the week of November 29 , 1993 . From the county's perspective we are totally rearranging the interior of the Library and updating many of the furnishings. A Sentence to Service crew will be assisting us with the painting and moving all of the shelving during the recarpeting process. In one of our previous discussion we talked about future physical needs of the library which would have budget implications and could be planned for in future budget years by the City of Shakopee. Our recommendations are to: - Install a door in the staff room. This would facilitate our daily deliveries in the rear of the building and not having to track through the library proper. - Expand the power distribution to accommodate the new and growing amount of equipment that the library houses. - Evaluate light levels, effectiveness and number of light fixtures. - Add high clerestory windows to the east wall which would bring natural light into that part of the library. - fireproof and alarm the book return room. We are pleased with the parking lots, signage and landscaping. An Equal Opportunity/Affirmative Action Employer We are very excited about the carpeting project at the Shakopee Library. Once that is completed we plan to open the library on Sunday afternoons from the first Sunday in January through May. We will then evaluate the use and determine whether or not we will continue the hours. If you have any questions please feel free to call me at 496- 8331. Sincerely, f :,K ------------ anet Williams, Director Scott County Library System JW: jlc MINUTES OF THE SHAKOPEE PUBLIC UTILITIES COMMISSION The Shakopee Public Utilities Commission convened in regular session on August 9 , 1993 at 4 : 30 P .M. in the Utilities meeting room. MEMBERS PRESENT : Commissioners O'Toole , Cook and Kirchmeier . Also Liaison Sweeney, Manager Van Hout and Secretary Menden . Motion by Cook, seconded by Kirchmeier that the minutes of the July 6 , 1993 be approved as kept . Motion carried. Motion by Cook, seconded by Kirchmeier to convene to executive session for the purpose of discussing land acquisition. Motion carried. Motion by Kirchmeier, seconded by Cook to adjourn from executive session . Motion carried. BILLS READ: City of Shakopee 20 ,032 . 00 ARA/Cory Refreshment Services 78 . 00 Auto Central Supply 85 . 03 B & B Transformer 186 . 38 Chad Bacon 7 . 18 Battery And Tire Warehouse , Inc . 69 . 97 R.W. Beck and Associates 3 ,187 . 83 Bill ' s Toggery, Inc . 43 . 98 Border States Industries , Inc . 3 , 651 . 19 Burmeister Electric Co . 13 , 323 . 15 Business Essentials , Inc . 254 . 37 Certified Laboratories 200 . 28 Chicago and Northwestern Transportation Co . 180 . 00 City of Shakopee 59 . 18 City of Shakopee 67 ,477 . 28 City of Shakopee 930 . 50 City of Shakopee 329 . 52 City of Shakopee 270 . 00 Clay ' s Printing Service 410 . 67 Cooper Power Systems 15 , 514 . 15 Cooperative Power 39 ,886 . 44 Cy ' s Amoco and Tire 124 . 90 DCA, Inc . 300 . 00 Dressen oil Company • 31 . 95 Feed-Rite Controls , Inc . 1 ,648 . 09 Glenwood Inglewood 36 . 77 Gopher State One-Call , Inc . 698 . 64 Graybar Electric Co . , Inc . 2 ,850 . 77 HDR 910 . 77 Hance Cable Testing and Locating 231 . 00 Hialeah Meter Co. 793 . 20 Hi-Line Electrical Speciality Products 803 . 02 Jerry' s Lawn Service 1 ,804 . 12 Richard Knutson , Inc . 98 , 324 . 39 Leef Bros . , Inc . 24 . 08 Ray LeMieux 86 . 16 M-V Thermogas Co . -Chaska 19 . 34 McGrann Shea Franzen Carnival Straughn and Lamb 197 . 54 Metro Sales , Inc . 144 . 52 Midwest Engine Service and Supply 691 . 19 Minnesota Dept . of Public Services 393 . 50 Minnsota Trucking Association 98 . 92 Minnesota Valley Testing Laboratories , Inc . 154 . 00 Mitch Mullins 90 . 00 Motor Parts Service of Shakopee 37 . 24 North Star International Trucks, inc . 21 . 66 Northern States Power Co . 423 ,429 . 46 Northern States Power Co . 1 , 362 . 99 Northern States Power Co . 664 . 64 Gene Pass 194 . 00 Phil ' s Maintenance and Repair 164 . 25 PLehal Blacktopping, Inc . 485 . 00 RESCO 479 . 63 Road Machinery and Supplies Co. 2 U . 7 2 Remarkable Products 12 . 95 Reynolds Welding Supply Co. 24 . 56 Ries Heating and Sheet Metal 54 . 49 River Electric Association 17 , 087 . 00 Carol Roquette 54 . 32 Schoell and Madson, Inc . 6 , 491 . 21 Shakopee Public Utilities Commission 111 . 48 Shakopee Public Utilities Commission 43 . 55 Shakopee Services , Inc . 88. 38 Southwest Suburban Publishing 804 . 05 Starks Cleaning Services Inc. 72 . 42 Stemmer Farm and Garden Supply, Inc . 203 . 90 Dean Struck 131 . 04 United Compucred Collections, Inc . 452 . 62 Lou Van Hout 59 . 84 WaterPro 180 . 54 Westinghouse Electric Supply Co. 3 ,435 . 16 Widmer, Inc . 660 . 00 Yarusso ' s Hardware Co . 45 . 39 Motion by Kirchmeier , seconded by Cook that the bills be allowed and ordered paid. Motion carried. Mr. John Goihl representing Stonebrook Homeowners Association was present to discuss electric rates for the well . The new rates in effect 7/93 now has a clause to accommodate a low load factor. The bills will be analyzed to see if they qualify. A communication from Roger Bauer representative for St . Mary' s of the Purification Church regarding their annual church festival maximum demand was acknowledged and placed on file . Motion by Kirchmeier, seconded by Cook that the Shakopee Public Utilities , in accordance with Section X of its electrical rate make an exemption for St . Mary' s of the Purification Church of Marystown for their annual festival on August 14 , 15 to limit the amount of demand kilowatt usage to 56 on Saturday and 68 on Sunday . Motion carried . Motion by Cook, seconded by Kirchmeier to offer Resolution #405 A Resolution Setting the Method of Determining the Power Adjustment Charge , the Power Adjustment Base and Other Terms . Ayes : Commissioners Cook, O'Toole and Kirchmeier. Nayes : none Motion carried . Resolution passed. An update on the bond sale was done by Bill Fahey, Fahey Companies . The closing is set for August 24 , 1993 . Motion by Cook, seconded by Kirchmeier to offer Resolution #407 A Resolution Relating to $4 ,250 ,000 Shakopee Public Utilities Revenue Bonds , Series 1993 ; Authorizing The Sale, Fixing the Form and Details , Providing for the Execution and Delivery Thereof and the Security Therefore. Ayes : Commissioners Kirchmeier, Cook and O ' Toole . Nayes : none . Motion carried. Resolution passed. An update on Murphy' s landing past due account was given to the Commission. Liaison Sweeney gave an accounting from the Council meeting as to the status of Murphy' s Landing with the City. There will be an upcoming meeting with the City Council and the County on August 11 , 1993 . Motion by Kirchmeier , seconded by Cook to offer Resolution #406 A Resolution Approving of the Pipe Oversizing on the Watermain Project Parkview First Addition. Ayes : Commissioners Cook, Kirchmeier and O' Toole . Nayes : none. Motion carried . Resolution passed. Motion by Cook , seconded by Kirchmeier to offer Resolution #404 A Resolution For a Partial Release of Agreement to Complete Water System. Ayes : Commissioners Cook , Kirchmeier and O' Toole . Nayes : none . Motion carried. Resolution passed. There were no new plats for July, 1993 . There was one fire call for one hour labor for July, 1993 . There were no lost time accidents for July, 1993 . The next meeting will be set for September 1 , 1993 for the purpose of bill paying only. The next regular meeting of the Shakopee Public Utilities Commission will be held on September 13 , 1993 at 4 : 30 P.M. in the Utilities meeting room. Motion carried. Motion by Kirchmeier, seconded by Cook that the meeting be adjourned. Motion carried . ')--) \7\ A r \ L\,'\,'A r,,,,,\,:;\ , Barbara Menden , .^omission Secretary MINUTES OF THE SHAKOPEE PUBLIC UTILITIES COMMISSION The Shakopee Public Utilities Commission convened in regular session on September 1 , 1993 at 4 : 45 P .M. in the Utilities meeting room . MEMBERS PRESENT : Commissioners O'Toole and Kirchmeier . Also Manager Van Hout . Absent was Commissioner Cook. Commissioner Cook had previously advised of a schedule conflict . The meeting had been set for the purpose of paying bills . President O 'Toole called the meeting to order. BILLS READ: Citizens State Bank 4 ,160 ,872 . 72 City of Shakopee 20 ,032 . 00 American Financial Printing, Inc . 1 ,991 . 10 Auto Central Supply 91 . 58 B & B Transformer , Inc . 319 . 50 R.W. Beck and Associates 400 . 81 Bentz Construction , Inc . 840 . 00 Border States Industries , Inc . 29,755 . 39 Bro-Tex , Inc . 102 . 07 Burmeister electric Co. 3 ,258 . 91 Business Essentials , inc . 56 . 58 City of Shakopee 1 ,418 . 63 City of Shakopee 12 . 00 Clay' s Printing Service 212 . 21 Cooperative Power 47 , 498 . 26 Dave ' s Valley Sports 382 . 50 Environmental Quality Board 240 . 34 Fahey Companies 28, 741 . 00 Feed-Rite Controls , inc . 63 . 75 Gopher State One-Call , Inc . 748 . 14 Graybar Electric Co. , Inc . 7 , 173 . 83 Hance Cable Testing and Locating 236 . 05 Hennen ' s ICO 8 . 50 Lano Equipment , Inc . 23 . 77 Leef Bros . , Inc . 24 . 87 Ray Lemieux 93 .80 M-V Thermogas Co. 26 . 36 MVA Company 121 . 10 Minnesota Valley Testings Labs, Inc . 70 . 00 Motor Parts Service Co . , Inc . 50 . 15 Northern States Power Co. 528,082 . 24 Northern States Power Co . 1 ,705 . 67 Paul Williams Tire Co. , Inc. 276 . 90 Pacific Air Switch Corp. 7 ,008 . 00 Personnel Policy Makers 32 .85 Pitney Bowes 238 . 03 Resco 2 ,689 . 93 St . Paul Stamp Works , Inc . 900 . 07 Schoell and Madson, Inc . 1 ,028 . 99 Sensus Technologies, Inc . 133 . 21 Schwaab, Inc . 125 . 96 Shakopee Public Utilities Commission 63 . 21 Shakopee Postmaster 5 ,000 . 00 Starks Cleaning Services, Inc . 72 . 42 Dean Struck 175. 28 System Control Services , Inc . 138 . 80 T & R Service 34 . 00 Total Tool 334 . 44 Lou Van Haut 48. 31 Voss Lighting 759 . 65 WaterPro 509 . 13 WESCO 2 ,238 . 10 Yarusso ' s Hardware Co . 46 . 05 Motion by Kirchmeier, seconded by O'Toole, that the bills be allowed and ordered paid with the note made that the first check was to confirm internal transfers which had occurred as part of the bond sale. Motion carried. Motion by Kirchmeier, seconded by O' Toole, that the meeting be adjourned to September 13 , 1993 at 4 : 30 P.M. in the Utilities meeting room. Motion carried . /71 (riA ,1)6.AA A;w1)c„In Barbara Menden , ommission Secretary DOT .. . E . , E= ITS TEL 1-612-582-1454 UC- u 93 7 : 24 N0 .003 P . 01 MINNESOTA DEPARTMENT OF TRANSPORTATION METROPOLITAN DIVISION HEADQUARTERS Water's Edge Building 1500 West County Road B-2 Roseville, Minnesota 55113-3105 Telephone: 582-1000 Mari Facsimile (Mail Room): 582-1131 Division Staff: 582-1166 Permits: 582-1454 Accounting: 582-1308 Public Affairs: 582-1368 „,-�.:xx:x` x:;x w".�'3:°".'"``. -'�x"'%sw.: u>.k��.;Fz:. �:r>i :x:*'k 7�m�>. ,F..''�� 3�»'��xo` '��'S:'� :fcyi<:Gdrl. »�: 3)..Y>.ic3�j:!'8tx. u .:'➢i. »:M <.'�>< »> G. y»:,�,�.i. <»oo;x: x;«•�k £ 'C: %aic;,�.: n.. i$`: .»,.:..r...:.>,.r >:::.'£.. >:33`. :. 3":i:<w:.> ., +,Mr: '. f r.,,• »M*�:.;:,,:,q:.�r&.«.;J"#�.e •»"':°r ..�...�4 '33: ,,.;+:r:�:Yixx�:oc-r> ...........Koe.o..r :'1::�:;�i>:o::ws3:���..":c:7f:F:`�i�rrvz ,Y..�it�,�%:<rm:.:3• ..'�.�,.,,,.. FACSIMILE TRANSIVITITAX� DATE (4 • °a • LOCATION : C_v'r'•e o 1tN‘1.041:. Ce, FROM Estrz.4 t \ %J...A ..4+,.) LOCATION : Mr.J A Q f T. nran MESSAGE : \ •.1'AV.A.t.4, S\C.,1`4 — - ��.A 1.1�. rn�14T►N C� _ M, w , vim. -1%4 '"t 0v)W1 _�►S S'�.�?, C,U N4�e. A T 0 pages to follow 42- OFFICIAL OFFICIAL PROCEEDINGS OF THE BOARD OF ADJUSTMENTS AND APPEALS Regular Session Shakopee, Minnesota October 7 , 1993 MEMBERS PRESENT: Joos, Mars, Madigan, Spurrier, Kelly MEMBERS ABSENT: Christensen, Zak STAFF PRESENT: Lindberg Ekola, City Planner Terrie Sandbeck, Assistant Planner Lisa Anderson, Recording Secretary I. ROLL CALL Chrmn. Mars called the meeting to order at 7 : 30 p.m. Roll call was taken as noted above. II. APPROVAL OF AGENDA The agenda was approved as presented. III. APPROVAL OF SEPTEMBER 9, 1993, MEETING MINUTES The meeting minutes were approved as presented. IV. RECOGNITION OF INTERESTED CITIZENS Chrmn. Mars recognized anyone in the audience wishing to speak on any item not on the agenda. There was no response. V. PUBLIC HEARING: TO CONSIDER AN APPLICATION FOR A 5' VARIANCE FROM THE 10' SIDE YARD SETBACK REQUIREMENT IN ORDER TO ADD A FOUR SEASON ROOM TO THE REAR OF THE HOUSE AT 906 RAMSEY STREET - FRED AND JO ANN COLLER Chrmn. Mars opened the public hearing regarding the request for a 5 foot variance from Fred and Jo Ann Coller. The Assistant Planner stated that the applicants are requesting a 5 foot variance from the 10 foot side yard setback within the Urban Residential (R-2) Zoning District. She stated that the existing structure was constructed in 1968 . At that time, the side yard setbacks within the R-2 Zoning District were 10 feet on one side and 5 feet on the other. The structure was constructed with a 5 foot side yard setback from the southern lot line, and a 12 foot side yard setback from the northern lot line. She stated that in 1979 , the Zoning Ordinance was changed and a 10 foot setback was required for both side yards of interior lots. She added that this action resulted in Minutes of the Page- 2 Board of Adjustment and Appeals October 7, 1993 transforming the building into a nonconforming structure. The Assistant Planner stated that the applicants are proposing to reconfigure a portion of the existing deck and to construct a four-season porch onto the west side of the existing principal structure, approximately 5 feet from the southern lot line. The proposed structure would be in conformance with the existing building line of the home. She stated the staff has received no opposition to the request, in fact, has received two letters from neighboring residents expressing approval of the request. She stated that staff is recommending approval of the variance based upon a review of the criteria established in the Findings. Chrmn. Mars asked if there were any questions of staff. There was no response. Chrmn. Mars then asked the applicant to approach the podium. Mr. Fred Coller, 906 Ramsey Street, stated that the material supplied by staff sums up their position very well, and also stated that he talked to the majority of the neighbors within the area and there are no objections. Comm. Joos stated that the Zoning Ordinance Committee will be recommending to the Planning Commission and City Council that the "old Shakopee" area be allowed to have the original setbacks. Therefore, there would no longer be a nonconforming setback issue in that area. Motion: Comm. Spurrier/Kelly moved to close the public hearing. Vote: Motion carried unanimously. Motion: Comm. Spurrier/Joos offered a motion to approve Variance Resolution No. PC-669 , a Resolution Granting a 5 Foot Variance to the Required 10 Foot Minimum Side Yard Setback Requirement in the Urban Residential (R-2) Zoning District. Vote: Motion carried unanimously. VI. PUBLIC HEARING: TO CONSIDER AN APPLICATION FOR A VARIANCE FROM THE MINIMUM LOT SIZE REQUIREMENT IN ORDER TO CONSTRUCT AN OFFICE AND WAREHOUSE GARAGE FOR AN ASPHALT PAVING AND SEALCOATING OPERATION AT 8770 EAST 13TH AVENUE — MINNESOTA ROADWAYS Chrmn. Mars opened the public hearing regarding the request for a variance from the minimum lot size requirement from Minnesota Roadways. Minutes of the Page- 3 Board of Adjustment and Appeals October 7, 1993 The Assistant Planner stated the applicant is requesting a 14 . 75 acre variance from Section 11. 32 , Subd. 4 .D, which requires a lot size of 20 acres for areas that are without city services and located within the Light Industrial (I-1) Zoning District. This requirement was adopted in 1979 . The applicant is proposing to construct an office and warehouse on the site, and has submitted an application for a Conditional Use Permit in order to store recycled rock and aggregate materials, as well as their asphalt and paving equipment on the site. The Assistant Planner stated that the public hearing regarding the request for the Conditional Use Permit will be held later in the evening. The subject site was annexed into the City of Shakopee from Eagle Creek Township in 1971. The parcel was created in May of 1979, when the property was still zoned Urban Residential and under the regulations of Eagle Creek Township. The Assistant Planner also stated that the site was rezoned from Urban Residential (R-2) to Light Industrial (I-1) in 1979 . The I-1 Zoning District required parcels without City services to be at least 20 acres in the area. She stated that the staff is recommending approval of the Variance from the 20 acre lot requirement because the criteria for granting the variance can be met. Comm. Kelly asked what the rationale was for the 20 acre minimum lot size initially in this zoning district. The City Planner informed Comm. Kelly that there needs to be a similar parallel to what happens in the R-1 District. There needs to be a minimum size of property to help prevent premature development. It also helps to keep this type of industrial operations of this nature in the I-1 area. It ensures that adequate areas are available for that type of use, which tends to require more of the warehousing and wholesaling type of operations. In contrast, the City Planner also stated that in the Urban Service area, the minimum lot size is 1 acre and those properties are serviced by public water and sewer The 20 acre minimum was originally intended to help Minutes of the Page - 4 Board of Adjustment and Appeals October 7, 1993 discourage, to a certain degree, premature development in the Rural Services area. Comm. Kelly then asked if we are trying to change development now if that is the larger size initially. The City Planner responded that the property is one that existed prior to the City's development of the subdivision regulations. This is somewhat of a compromise between allowing some development to occur out in the Rural Services area, and at the same time to prevent too much from happening at one time. Comm. Spurrier stated his concerns that the proposed land use on CR 18 are a much different land use than what is being proposed here. He stated his concern about the relationship of this site to current interchange plan for TH 101 and CR 18 , and TH 101 and the proposed CR 21. Also, he expressed his concern with the relationship of this site to the new by-pass. He asked, if the board approves this, will the State or the County have to buy it back at a higher value? The City Planner responded that the proposed business on 13th Avenue would not be affected, and that the State is not expected to purchase any property on the south side of 13th Avenue. These properties are not part of the by- pass or the Bloomington Ferry Bridge plan. Comm. Spurrier questioned whether or not the site would have direct access to the interchange ramps. The City Planner responded that there is no direct connections to the ramps or future roadways. Chrmn. Mars questioned criteria #5 "The variance requested is the minimum variance which would alleviate the hardship. " Deviating from the 20 acre minimum down to five acres is a 75% reduction and much more than a minimum variance. The City Planner explained that those properties created in that time frame of 1979 put into place sort of an awkward situation for the City to have to deal with. Five acres is what the applicants have available to them for development. Comm. Kelly asked if the Zoning Ordinance was effect in 1979 when it went from residential to light industrial, and asked what the hardship is. Minutes of the Page- 5 Board of Adjustment and Appeals October 7, 1993 The Assistant City Planner responded that this lot was created in May of 1979 and the Zoning Ordinance was adopted in October of 1979 . Therefore, the hardship falls upon the property owner, as the lot was created before the adoption of the Zoning Ordinance. Chrmn. Mars asked for clarification regarding Section 11. 03 , Subd. 3 .B which states, "B. Unplatted lot of record shall not be developed unless the current code provisions are met" . The Assistant City Planner clarified it that in 1979 the lot was made nonconforming, but it was still a buildable lot. However, the adoption of Section 11. 03 , Subd. 3 .B classified the lot as unbuildable. Comm. Kelly stated his concern that if you take ten acres and start breaking it down to five acres for more sites we are generating more developers on a 20 acre site. Comm. Spurrier commented that we should do something to urbanize these sites. We need to control the nature of the development that occurs from now on. Chrmn. asked the developer to step to the podium. Mr. Jack Mueller, Eden Prairie, MN, owner of Minnesota Roadways, informed the Planning Commission that they only need five acres. There are ten acres on this corner that is not yet developed, but they need only about half of that area. They would like to stay away from the corner to stay a distance away from Valley Paving. However, Minnesota Roadways would like to develop their land in a similar way as Valley Paving and make the lot very attractive. They will address the traffic flow later on. This five acre site would allow a long-term area for them in the Shakopee community. Chrmn. Mars recognized anyone in the audience wishing to speak further on this matter. Randy Saurer, 9401 East Boiling Springs Lane, approached the podium. He expressed his concern that with the new by-pass, and stated that he feels this area is becoming more of a residential area than it has been in the past. He thinks if this is designed to use 20 acres, then they should use that. He would like to see something put there that is appropriate. Chrmn. Mars recognized anyone else in the audience wishing to speak on this matter, there was no response. Minutes of the Page - 6 Board of Adjustment and Appeals October 7, 1993 Motion: Comm. Joos/Madigan moved to close the public hearing. Vote: Motion carried unanimously. Comm. Spurrier stated that he understands that a 20 acre requirement is intended to keep the area from being urbanized, but that five acres is large enough to develop for this proposed, unsewered land use. Motion: Comm. Spurrier/Joos offered Variance Resolution No. PC-673 , A Variance Approving a 14 . 75 Acre Variance from the 20 Acre Minimum Lot Area Requirement Comm. Spurrier added that this is an existing lot of record, and recorded prior to the effective date of the ordinance that prohibits it. Comm. Joos also pointed out that there are 6 criteria to be approved and all criteria have been met. Therefore the board must grant the variance according to the rules of granting variances. There will be time for discussion regarding the application for the Conditional Use Permit to be brought up later, and added that discussion regarding this is not pertinent to this variance request. Vote: Comm. Joos, Mars, Madigan, and Spurrier voted to approve the motion, with Comm. Kelly voting against. VII. ADJOURNMENT The meeting adjourned at 7 : 58 p.m. OFFICIAL PROCEEDINGS OF THE SHAKOPEE PLANNING COMMISSION Regular Session Shakopee, Minnesota October 7, 1993 MEMBERS PRESENT: Joos, Madigan, Kelly, Mars, & Spurrier MEMBERS ABSENT: Zak & Christensen STAFF PRESENT: Lindberg Ekola, City Planner Terrie Sandbeck, Assistant City Planner Dave Hutton, City Engineer Lisa Anderson, Recording Secretary I. ROLL CALL Chrmn. Joos called the meeting to order at 8 : 02 P.M. The roll call was taken as noted above. II. APPROVAL OF AGENDA Chrmn. Joos stated that Agenda Item 16B is an East Shakopee Transportation update scheduled for October 14 , 1993 . The action requested is to cancel that meeting, because we have no direction on the Chaska interceptor at this time. Comm. Spurrier requested that the Planning Commission remove this item from the consent agenda. The agenda was approved as amended. III. APPROVAL OF THE SEPTEMBER 9, 1993, MEETING MINUTES The minutes of the September 9 , 1993 , meeting were approved as presented. IV. RECOGNITION OF INTERESTED CITIZENS Chrmn. Joos recognized anyone in the audience wishing to speak on any item not on the agenda. Mr. Ronald Thiebaud, 1428 Maras Street, stepped up to the podium and asked questions regarding the status of the zoning in his area. Chrmn. Joos stated the Zoning Ordinance Committee (ZORC) has been meeting weekly for about the last three weeks, and will be meeting again next week to hopefully wrap things up and to get a recommendation for the Planning Commission. He added that the ZORC is right on schedule. V. APPROVAL OF CONSENT AGENDA Motion: Comm. Mars/Spurrier offered a motion to approve the consent agenda. 2 Minutes of the October 7,Page - 2 Shakopee Planning Commission Vote: Motion carried unanimously. VI. PUBLIC HEARING: TO CONSIDER AN APPLICATION FOR A CONDITIONAL USE PERMIT — SHIELY PROPERTY Chrmn. Joos opened the public hearing to consider an application for a conditional use permit to move in a refurbished railroad caboose and box car upon the Shiely property located south of Hwy. 101 and east of Valley Park Drive. Comm. Mars added that on the table was a letter from the applicant requesting a withdrawal of that request. Motion: Comm. Mars/Spurrier made the motion to close the public hearing. Vote: Motion carried unanimously. Motion: Comm. Mars/Spurrier made the motion to accept the withdrawal of the Application for the Conditional Use Permit request from Landscape Junction, Inc. Vote: Motion carried unanimously. VII. PUBLIC HEARING: TO CONSIDER THE REZONING OF A 67.8 ACRE PARCEL FROM MULTI—FAMILY RESIDENTIAL (R-4) TO URBAN RESIDENTIAL (R-2) , AND TO DELETE AN 84 . 5 ACRE SITE FROM THE MANDATORY PLANNED UNIT DEVELOPMENT REQUIREMENT — SIENNA CORP. Chrmn. Joos opened the public hearing to consider the rezoning of a 67 . 8 acre parcel lying on the south side of East 4th Avenue, and to delete an 84 . 5 acre site from the mandatory Planned Unit Development (PUD) requirement on the Official Zoning Map. The City Planner indicated that the request is to rezone 68 acres of the 84 . 5 acres of property owned by the Lenzmeier family from R-4 , Multi-family Residential, to R-2 , Urban Residential. The applicant desires that the request go forward and that a decision be made by the City Council. The City Planner pointed out that in the review process it was determined that this property is located in the mandatory PUD area. This requires that the applicant apply for approval of a Planned Unit Development. At this time, City staff is recommending denial of the zoning request, because it is not consistent with the land use plan as established in the approved Comprehensive Plan for the city. Minutes of the Page-3 Shakopee Planning Commission October 7, 1993 The City Planner stated that the area has been designated for multi-family land uses. He added that the Planning Commission is required to make a recommendation to the City Council within 60 days unless the applicant were to request a time extension. However, the applicants have not submitted such a request, and would like to see the Commission go forward with a recommendation to the City Council. Comm. Mars questioned why the applicant wanted to drop the PUD requirement. The City Planner responded that one reason was because what they are proposing would be a straight forward request for single family and multi- family development. He added that the City has many of those types of properties throughout the City that were not required to go through the PUD process. Since it is located in this location, with respect to the race track and the mandatory PUD, that requirement applies. Chrmn. Joos requested the applicant to step up to the podium. Larry Frank, Sienna Corp. , 653 Brockton Curve, Eagan, indicated there was some difference of opinion regarding the PUD ordinance and its requirements for open space. A PUD usually fits on a site that has lots of amenities. He stated that they are looking at a pretty flat site, and the flatness of the site and the requirement for open space doesn't seem to fit. Mr. Frank continued to say that the issue before the Planning Commission was whether single family is appropriate on this part of the property. He feels he can resolve all issues in the staff report by changing the site plan, and added that they are requesting an extension on the recommendation regarding the preliminary plat. Mr. Frank would like the rezoning request to go to the City Council, but wants to request extension on the preliminary plat to resolve the issues on the site plan. Mr. Frank indicated that there are four criteria to look at with a request for a rezoning. The growth management program that the City has requires the City to create new and attractive neighborhoods on the south and east fringes of the community. It also states that the primary reason for this is to promote and allow the needs of the local market. Mr. Frank pointed out that the demand for multi-family and single family land has been changing over the years, and the rezoning would meet the needs of the local market. Comm. Spurrier asked if this could be a PUD. The City Planner clarified that it could be submitted as a PUD. Minutes of the Page -4 Shakopee Planning Commi cion October 7, 1993 He indicated that there would need to be a substantial review on that type of submittal before it could become a successful PUD. Comm. Spurrier asked if the applicant was opposed to processing a PUD for this site, or is the applicant more concerned that it won't meet PUD standards. Mr. Frank clarified that the question lies in the interpretation of the PUD - the PUD states that you need 20 percent open space. What is open space and was is parkland? The City Planner stated that the main issues for this public hearing are to focus on the rezoning issues - is this area supposed to be rezoned, and the deletions of the mandatory PUD requirement. Chrmn. Joos recognized any further questions from anyone in the audience. Mr. John Lenzmeier, owner of the land, approached the podium and requested a final decision on this matter. Motion: Comm. Spurrier/Mars offered a motion to close the public hearing. Vote: Motion carried unanimously. Comm. Mars asked for clarification on what prohibits someone from having R-4 zoned property and putting single family development on it. The City Planner responded that the current the current R-4 district does allow single family residential development as a permitted use. Comm. Spurrier stated his concern for the supply of R-4 land, and if the land would need to be replaced if it were lost. The City Planner responded that this is an area that was designated in the 1980 Comprehensive Plan for multi-family residential uses, and that recent numbers in terms of vacant land inventory for multi- family verses what is needed is about the same. Motion: Spurrier/Mars offered a motion to recommend denial of the request to rezone 67 . 8 acres of land currently zoned R-4 to R-2 , and to recommend denial of the request for the deletion of the mandatory PUD requirement for the 84 . 5 acre site. Comm. Joos stated he is not opposed to the rezoning of R- 4 to R-2 , but he believes we need a mandatory PUD. The PUD requirement would provide an opportunity to address where single family abuts R-4 property. Minutes of the Shakopee Planning Commission OctobePage - 5 r 7, 19 5 Comm. Mars commented that if the R-4 stays the same, they could do single family development underneath that. The PUD requirement around the race track was a control mechanism put in order to help development around the race track. In other areas the PUD was used for amenities and to allow flexibility with the development within a PUD. Comm. Mars stated that he feels that the R-4 is fine for what is requested. The controls around the race track have proved to be somewhat of a barrier around the race track, but with the R-4 zoning, it would allow an orderly process for land development. Vote: Motion to recommend denial of the request to the City Council carried unanimously. VIII. PUBLIC HEARING: TO CONSIDER THE PRELIMINARY PLAT OF PRAIRIE BEND — SIENNA CORP. Chrmn. Joos opened the public hearing to consider the preliminary plat of Prairie Bend, lying on the south side of East 4th Avenue, south and west of the K.C. Hall. The City Planner stated that he received a letter from the applicant requesting an extension for sixty days. He added that staff recommends granting the extension to the applicant. Motion: Comm. Mars/Spurrier offered a motion to continue the public hearing until the December 9 , 1993 , Planning Commission meeting. Vote: The motion carried unanimously. IX. PUBLIC HEARING: TO CONSIDER THE PRELIMINARY DEVELOPMENT PLAN AND FINAL DEVELOPMENT PLAN FOR THE EAGLE CREEK BLUFF ADDITION PLANNED UNIT DEVELOPMENT — VANZEE HOMES, INC. Chrmn. Joos opened the public hearing to consider the Preliminary Development Plan, and the Final Development Plan for the proposed Planned Unit Development of Eagle Creek Bluff Addition. The City Planner stated that the proposed development covers 65 . 9 acres of land and is located east of CR 18 , and south of Boiling Springs Lane. The majority of the subject site is zoned Rural Residential (R-1) and the east central portion of the site is zoned Shoreland (S) . The applicant is requesting approval of a PUD to develop 32 single family residential lots. Staff is recommending that the Planning Commission continue this public hearing. One of the issues that require further Minutes of the Page-6 Shakopee Planning Commission October 7, 1993 discussion is that of the public utilities. Staff has made a recommendation for a common water distribution system in compliance with the Shakopee Public Utilities (SPUC) so that future water service for this development shall be served from Shakopee Public Utilities, and not from the City of Savage. The City Planner went on to say that an applicant can submit a proposal in which there would be some variances from existing proposals in exchange for preservation of various species of vegetation. The Planned Unit Development process becomes more of a flexible review process at which the Planning Commission and the City Council must look closely. Another item required would be a phasing plan to help identify the various time frames for public improvements and how they would connect with both cities. The City Planner said he has received various comments from the City Engineer regarding the Wetlands Delineation Plan, and comments from the County Engineer regarding the proposed PUD. Therefore, staff is making a recommendation to continue this public hearing to allow the applicant to submit additional information for review. He added that the applicant has not yet submitted a letter requesting a continuance. Comm. Kelly inquired about whether or not SPUC has ever made a request like this before. The City Planner responded that early in the review process for Westridge Bay Estates II, the applicant had considered putting in individual wells, but was encouraged to work toward a common water system. Chrmn. Joos stated that this is a good idea from a developer's standpoint because it is very cost effective to sell the lots. Comm. Kelly stated that the flip side of that would be then you would have to establish a home owners association to provide for the maintenance of the system. One failure would put the whole development out of water. Comm. Kelly added that he doesn't have a problem with the developer requesting it, but he does have a problem with the City requiring it. Chrmn. Joos added that this request has never been made before. Chrmn. Joos asked the applicant to step up to the podium. Dennis Grizwold, architect for the development, stated that the average lot size is 1.4 acres and the smallest lot is .86 acre. Lots 8 through 12 are over an acre in size. The smallest lot is actually lot 10, on the north end of the project on Boiling Springs. The applicant is Minutes of the Page-7 Shakopee Planning Commission October 7, 1993 requesting approval of a PUD for 65 acre area, and is requesting that they be allowed to put in 32 lots on that site. Mr. Grizwold stated that he feels that a PUD is the only practical way of dealing with the site. The reason is that the location of the site is very important in relation to the property to the east and north. It happens to be in another city, but it's very important on how this part of Shakopee works with the City of Savage. The applicant stated that within that area, the City of Savage is seeking multi-uses in the form of light industrial uses, or office industrial uses in the northeast corner. The southeast corner, at the intersections of CR 16 and TH 13, there would be townhouses. There would be an access point to the southeast to get out to TH 13 and CR 16. There would be an access up through Covington Pond up to TH 101. The third access would be to the west out to CR 18. Mr. Grizwold stated that the proposal within Savage is to create a very dynamic open space concept using Eagle Creek in the manner that it lies there now, using the existing wetlands as a very integrated open space within the townhouses, the industrial development, and the single family development. His proposal is to use the planned development concept so that he could have smaller lots in order to work with the open space and the physical features of the site. Chrmn. Joos asked the applicant what the price range of these lots would be. Claus VanZee, 9951 Credit River Boulevard, Prior Lake, responded that they would be in the price range of $40, 000 to $60, 000. Chrmn. Joos stated that in the past there has been numerous water problems with Boiling Springs and asked the applicant how that would be handled. Mr. Grizwold responded by saying that the number of ponds that they are creating through that area are generally on the south side, or on the upper side of the creek. They are trying to catch and detain all of the run-off before it reaches the creek. Also, they will be putting in storm sewers to connect that system under the stream to connect the pond system to the pond to the north. Chrmn. Joos asked how the water flows in relation to the Boiling Springs area for Shakopee. Mr. Grizwold stated that the water would flow down to the detention pond where it would be contained, and then they could control the outflow. Minutes of the PW-8 Shakopee Planning Commission October 7, 1993 Chrmn. Joos asked the applicant what type of traffic pattern he saw developing. Would Boiling Springs Lane be used as a collector street? Mr. Grizwold clarified by stating that it would not be designed as a collector street. They should have somewhat of a 3-way split coming in and out of the project area. It is designed so that people will not be cutting through. Comm. Spurrier questioned whether the development proposed in Shakopee is proposed to be developed without urban services, and the development in Savage with urban services. Mr. Grizwold stated that yes, that was a correct statement. However, the City of Savage is receptive to a joint powers agreement, or would be interested in discussing the connection of the water utility. Comm. Spurrier asked the applicant if there have been any traffic projections performed for the peek A.M. and P.M. hours. The applicant replied that there have not been any projections done at this time. Chrmn. Joos asked for clarification of the boundaries for the school district. The applicant pointed out that the northwest corner of the site would be in the Shakopee school district. Chrmn. Joos recognized anyone in the audience wishing to speak regarding this matter. Randy Saurer, 9401 East Boiling Springs Lane, came forward to express his concerns. He stated that he is concerned about having Boiling Springs Lane go through the proposed development. It is a dead end street now, and it would be quite a change for the residents living there. All the residents have 2.5 acres right now. Mr. Saurer informed the Commissioners that he likes the idea of having a park there to preserve Boiling Springs, but added that five hundred homes is a lot of homes. He also stated that he felt Savage should provide access through Savage and not through Shakopee. They are two totally different cities and are not consistent - Savage is urban and Shakopee is rural. He also stated that he has not heard anything mentioned about sanitary sewer services. Verlyn Hanson, 14869 Estate Avenue SE in Prior Lake, the owner of the property, approached the podium to state his concerns. He feels that these streets would be an advantage to the residents. Boiling Springs is a cul-de- sac and does not have a large enough radius for busses to turn around in. Mr. Hanson stated that he feels that Minutes of the Page- 9 Shakopee Planning Commission October 7, 1993 putting the street in would be an improvement so the busses and the mail could go through. Comm. Spurrier stated that he would like to see the issue of mixed urbanization with rural services interface. The City Planner stated that there is a way to make those interconnections work and that will begin to happen in the City of Shakopee over the course of the next ten to twenty years. It needs to be studied a lot more and that is part of the staff recommendation, to help the developer work with the City of Shakopee and the City of Savage. Comm. Spurrier asked the developer if they were under some specific time constraint for a decision. The applicant stated that they had until January. Chrmn. Joos stated he was still concerned with where the school districts are divided. The applicant responded that he would bring a map that shows the school district boundaries to the next meeting. Motion: Comm. Mars/Madigan offered a motion to continue the public hearing to the November 4 , 1993 , meeting so allow time for the developer to obtain additional information regarding the recommendations listed in the staff report, and to allow time for City staff to obtain additional information from the City of Savage. Chrmn. Joos asked the applicant if a continuance to the November meeting would allow adequate time to obtain more information. The applicant responded "yes" . Vote: Motion to continue the public hearing to the November 4 , 1993 , meeting carried unanimously. X. PUBLIC HEARING: TO CONSIDER THE PRELIMINARY PLAT OF EAGLE CREEK BLUFF ADDITION - VANZEE HOMES, INC. Chrmn. Joos opened the public hearing to consider the preliminary plat for the proposed Eagle Creek Bluff Addition Planned Unit Development, located east of CR 18 and south of Boiling Springs Lane. The City Planner stated that staff is recommending continuing the public hearing on this request to the November 4 , 1993 , meeting. Chrmn. Joos recognized anyone in the audience wishing to speak regarding this matter. There was no response. 1Mnutes of the Rage - 10 Shakopee Planning Commission October 7, 1993 Motion: Comm. Mars/Madigan offered a motion to continue this public hearing regarding the preliminary plat to the November 4 , 1993 , meeting. Vote: Motion carried unanimously. XI. PUBLIC HEARING: TO CONSIDER AN APPLICATION FOR A CONDITIONAL USE PERMIT AT 8770 13TH AVENUE — MINNESOTA ROADWAYS Chrmn. Joos opened the public hearing to consider an application for a conditional use permit to allow outside storage of equipment and materials upon the property located at 8770 13th Avenue East. The applicant is Minnesota Roadways. The Assistant City Planner stated that the applicant is proposing to purchase the site to construct an office and warehouse for Minnesota Roadways. They would like to store diesel fuel, recycled rock and aggregate materials, as well as their asphalt and paving equipment, on the site. She stated that, although construction companies and special trade contractors are permitted uses within the I-i district, the outdoor storage of diesel fuel, rock and stone products, and machinery and transportation equipment, are listed as Conditional Uses within this zone. The Assistant City Planner also stated the truck traffic concerns that came up during the variance discussion could best be addressed by the applicant. She added that a Williams Pipeline carrying high pressure liquid petroleum crosses the southern portion of the site. The pipeline has a 100 foot wide easement. In the event of an emergency, Williams Pipeline needs to be able to obtain access to the pipeline as soon as possible, and have commented that they will not allow any encroachments upon this easement for this reason. This includes parking of either vehicles or semi-trailers or tractors, the construction of any permanent structures, or the storage of materials. The principal structure is proposed to be constructed at least 105 feet to the north of this easement. Staff has recommended a condition requiring that the applicant submit verification that Williams Pipeline Co. approves the use of the land within their easement prior to the release of the Building Permit. Minutes of the Page-11 Shakopee Planning Commission Odober 7, 1993 She stated that staff is recommending approval of Conditional Use Permit Resolution No. PC-674, subject to the eight conditions discussed in the staff report. Comm. Spurrier asked if we looked at the capacity of 13th Avenue to take the additional industrial load that would come from this proposal. Mr. Hutton stated that 13th Avenue is on the municipal state aid system, and is designed as a collector street. In addition, it is located within an industrial zoning district and it was built for heavy truck use. CR 18 was also built for heavy truck use, so these roads should not be adversely affected. Comm. Spurrier reiterated his concern about the roads being able to handle the repetitious truck traffic. The City Planner pointed out that this is a collector street and those factors are considered in the road construction. Chrmn. Joos expressed his concern regarding comments from Scott County Environmental Health regarding the on-site sewage system. The Assistant City Planner responded that issue will be addressed with the review of the Application for the Building Permit. Chrmn. Joos asked the applicant to approach the podium for questions concerning this request. Jack Mueller, 10356 Coloney Court, Eden Prairie, with Jeff Minea of Welsch Co. , were representing Minnesota Roadways. The applicant stated that there is a misconception regarding the road use and that basically the land will be used as a short term storage site. There will not be a considerable amount of truck traffic going in and out of the facility. Trucks will be leaving the site in the morning and will return in the evening. There would be some traffic throughout the day, but that would be held to a minimum. Most of the raw materials are purchased off-site. Very seldom are they going in and out with full trucks. The only thing they are requesting on site storage for are the recycled sealcoating materials. This type of rock will be only stored on site from July through May of the following year. The main recycling would be done in April and May with the use of an on-site screening apparatus. The applicant went on to say that the other type of storage they would need as far as materials, would be recycled blacktop or excavated materials. They always dispose of those off-site and away from their area of Minutes of the PW - 12 Shakopee Planning Commission October 7, 1993 business. However, these sites are sometimes only accessible on an 8 : 00 A.M. to 4 : 00 P.M. time frame, and his crews are usually working from a 6 : 00 A.M. to 6: 00 P.M. time frame. Therefore, they need some type of temporary storage so they can take that material to the proposed waste facility during their working hours the following day. There are no other materials coming and going. Eighty or ninety percent of the time the equipment is going to be empty or with a low weight going to and from the site. In regards to the fuel tank storage, they do need two 10, 000 gallon tanks on the site. The tanks would be above ground, double walled, on cement slabs and would be approved by the Environmental Protection Agency (EPA) . Chrmn. Joos questioned whether or not this site would be used as a storage site for the tractor-trailers. The applicant stated that there would only be long term storage in the winter, but no permanent storage. Chrmn. Joos stated a concern for potential soil contamination from the trucks while being stored in the winter. The applicant stated his willingness to comply with hard surfacing regulations. Comm. Spurrier asked the applicant if there would be any green space other than the front yard. The applicant responded that there was no green space in the back, and he can't foresee any need for any green space. Basically, they are going to have fence around the outside perimeter and they are giving up a fifth of their space for the pipeline easement. He would still like to have as much parking space as he could. Comm. Spurrier stated that the applicant indicated there would be a continual flow of trucks for the transfer of those recycled materials. Comm. Spurrier expressed his concern for the Average Daily Traffic (ADT) of heavy commercial vehicles to and from this site, and questioned the applicant as to whether or not he was prepared to limit this site to a specific heavy commercial ADT which might be tied to the ratio and the size of this site that 13th Avenue serves. The applicant stated that he would estimate that there would be approximately 30 round-trips per day. Each of their 30 trucks would be leaving and coming back to the site once a day. He added that as far as delivery to and from the yard, he would estimate that these deliveries never average more than four or five a day. It would be Minutes of the Page-13 ShakopeePlanning Commission October 7, 1993 pretty minimal. He stated that 40 trucks a day would be a safe amount to say. He added that most of the loads would be empty ones. Chrmn. recognized anyone in the audience wishing to comment on the matter. There was no response. Motion: Comm. Mars/Madigan offered a motion to close the public hearing. Vote: Motion carried unanimously. Comm. Spurrier questioned if there was a limit in this zoning district regarding the maximum height of the stock pile. The City Planner responded that in the staff recommendation, there is a 12 foot height limitation being recommended for the storage of materials. The applicant stated that in their letter to the Commission, they stated they would have the stock pile of no higher than ten feet. Chrmn. Joos asked the applicant how much noise there would be during the screening. The applicant replied there would be minimal noise, and added that most of the screening is done in North Minneapolis. Motion: Comm. Mars/Madigan offered a motion to approve this Conditional Use Permit, subject to the following conditions: 1. The applicants must obtain all required permits from the Minnesota Pollution Control Agency and Scott County Environmental Health. The operation must comply with all environmental requirements, including the NPDES Permit, as per these governmental agencies. 2 . Flammable liquids on the site must be stored in accordance with Fire Codes. A copy of the safety data sheets and a list of emergency contact telephone numbers shall be provided to the Shakopee Fire Department prior to the release of the Building Permit. 3 . The bulk storage of fuel on-site shall be limited to one (1) 10, 000 gallon tank for storing #2 diesel fuel, and one (1) 10, 000 gallon tank for storing low sulfur fuel. Minutes of the RW- 14 Shakopee Planning Commission October 7, 1993 4 . The applicant shall submit verification that Williams Pipeline Co. approves of the use of the land within their easement prior to the release of the Building Permit. 5. The outdoor storage of equipment, vehicles, and materials shall be limited to twelve (12) feet in height. 6 . A landscaping and screening plan shall be approved by the City Planner prior to the approval of the Building Permit. 7 . Approval of the Conditional Use Permit is contingent upon the applicant receiving a Certificate of Exemption (Wetlands Conservation Act of 1991) or receiving approval by the City with appropriate minimization / replacement measures. 8 . If complaints to City staff in the future on this Conditional Use Permit warrant a review by the Planning Commission, the City Administrator shall have the authority to require such a review. 9 . The operation shall not exceed an Average Daily Traffic (ADT) of forty (40) heavy commercial vehicles per day. Comm. Kelly stated that he understands the rationale regarding the 40 ADT' s, but feels that such a condition is unenforceable and would place a burden on the applicant which the neighbors don't share. This would be worth considering. Vote: Motion carried unanimously. XII. PUBLIC HEARING: TO CONSIDER AN AMENDMENT TO CONDITIONAL USE PERMIT NO. 624 — RAYMOND AMES Chrmn. Joos opened public hearing to consider an amendment to Conditional Use Permit No. 624 for Mineral Extraction and Land Rehabilitation upon the property located on the north side of Valley View Road, approximately midway between CR 17 and CR 83 . The applicant is Raymond Ames. The Assistant City Planner stated that Raymond Ames has submitted an application for an amendment and a renewal to Mineral Extraction and Land Rehabilitation and Minutes of the Page -15 Shakopee Planning Commission October 7, 1993 Conditional Use Permit Resolution No. PC-624 , which was originally approved on October 30, 1991. The proposed gravel mine would be located north of Valley View Road and east of CR 17 in Section 17 , and the permit allowed the mining of sand to be used only for the construction of the Shakopee Bypass. This resolution required that the excavation commence on or before October 30, 1992 ; that the mining operation be completed by October 30, 1994 ; and that the rehabilitation of the site be completed by October 30, 1995. Due to delays in the bid letting for fill sand to be used in the construction of the bypass, the applicant requested an received an amendment to delay these deadlines for one year in October of 1992 . Delays in the bid letting have once again caused a delay, and the applicant is requesting another amendment to delay these deadlines for another year. She stated that staff is recommending approval of an amendment to Condition No. 2 and Condition No. 4 of Resolution No. PC-624 to reflect the one year extension. Chrmn. Joos requested the applicant to come forward. James Hill, Jr. , James Hill, Inc. , appeared on behalf of the applicant who was unable to attend. He stated that this was their third year before the commission. Mr. Hill stated that MNDOT did award one of the segments in September of 1993 . Neither the applicant nor his company was awarded that contract, and as it would require that the applicant use public roads to deliver sand to that site, they did not come before the board to ask for an amendment to provide sand for that site. The next segment was intended to be bid in September of 1993 , but was pushed back to November of 1994 . The balance of the contract segments will be coming in 3 month increments until the Shakopee Bypass is complete. The pit is not open, it sits as it was built by nature. Chrmn. Joos recognized anyone in the audience wishing to speak on this matter, but there was no response. Motion: Comm. Spurrier/Mars made a motion to close the public hearing. Vote: The motion carried unanimously. Motion: Comm. Spurrier/Mars made a motion to approve Amendment No. 2 to Resolution No. PC-624 , revising Condition No. 2 and Condition No. 4 to read: Minutes of the Page -16 Shakopee Planning Commission October 7, 1993 2 . All mining operations shall be completed by October 30, 1996. Rehabilitation of the site shall be completed by October 30, 1997, or within one year of the closing of the mining operation, whichever is sooner. If the time frame for the construction of the Shakopee Bypass is extended by the Minnesota Department of Transportation beyond the 3 year approval, the applicant may apply for a renewal of the Conditional Use Permit and the Mineral Extraction and Land Rehabilitation Permits. 4 . The Planning Commission shall review the Mineral Extraction and Land Rehabilitation Permit and the Conditional Use Permit prior to the operation of the mine and at the end of each year of the mining operation (October 30, 1994 , 1995, 1996, and 1997) . If the applicant wishes to extend the mine beyond the three year time frame, both the Mineral Extraction and Land Rehabilitation Permit and the Conditional Use Permit must be renewed. Vote: The motion carried unanimously. XIII. REVISED FINAL PLAT FOR THE MEADOWS 9TH ADDITION The Planning Commission recommended approval of the Revised Final Plat for The Meadows 9th Addition on the Consent Agenda, subject to the following conditions: 1. Approval of title opinion by the City Attorney. 2 . Execution of a Developer' s Agreement for construction of required improvements: a. Street lighting to be installed in accordance with the requirements of the Shakopee Public Utilities Commission. b. Electrical system to be installed in accordance with the requirements of the Shakopee Public Utilities Commission. c. Water system to be installed in accordance with the requirements of the Shakopee Public Utilities Commission. d. Installation of sanitary sewer and storm sewer systems, and construction of streets in accordance with the requirements of the Design Criteria and Standard specifications of the City of Shakopee. Minutes of the Page - 17 Shakopee Planning Commission October 7, 1993 e. Street signs will be constructed and installed by the City of Shakopee at a cost to the developer of $250. 00 each per sign pole. A total of three (3) street signs will be required. f. The City Engineer will reapportion the existing special assessments against the lots and the developer shall waive his right to appeal the reapportionment. g. The applicant shall dedicate Outlot A to the City for parkland dedication, as per the Preliminary Plat. The park dedication requirement for The Meadows 9th Addition is 2 . 85 acres (10%) . This amount, less the dedication of Outlot A for parkland (4 . 7 acres) , less the parkland dedication credit of 1. 2054 acres which resulted from the 8th Addition, results in a park dedication requirement credit of 3 . 0554 acres. This land dedication shall be credited to the parkland dedication requirements for future developments of the plat. h. The applicant shall construct an 8' bituminous trail within Outlot A between Lot 13 , Block 4 , The Meadows 8th Addition, and the proposed Lot 1, Block 4 , The Meadows 9th Addition, to provide a connection between the proposed parkland and the proposed intersection of Primrose Lane and Lupine Court, as designated in the preliminary plat. i . The developer is granted permission to delay the setting of the iron monuments for the plat for one year from the date of the recording of the final plat, and shall post a bond or letter of credit to ensure compliance within the one year time frame. 3 . The developer shall submit verification that the Minnesota Pollution Control Agency has reviewed and favorably commented on the proposed noise mitigation plan prior to the recording of the Final Plat. 4 . Noise mitigation features shall be incorporated into the design of the homes within this addition prior to issuance of the building permit. Homes located in the two tiers of lots adjacent to the TH Minutes of the Page-18 Shakopee Planning Commission October 7, 1993 101 corridor, will be constructed according to the standards of the Department of Housing and Urban Development (HUD) to reduce ambient noise within the homes to levels acceptable by the Minnesota Pollution Control Agency. 5. The developer shall construct a continuous noise mitigation barrier along the south side of the plat to reduce the noise impact from the TH 101 Bypass upon the development in accordance with the MNPCA noise standards. 6. The developer shall sign and record an agreement identifying the possible noise impacts created by the TH 101 Bypass for each property within the plat. 7 . If part of the plat is abstract, and part of the plat is torrens, the applicant shall provide a revised final plat which shows this division. 8 . The developer shall provide a recordable agreement stating that not more than 10% of the plat will be developed into twin homes (6 lots) . Twin homes will require separate utility connections, and sites must be identified prior to installation of utilities. 9 . Prior to the recording of the Final Plat, all repairs required by the City shall be made to the Upper Valley Drainageway, and the City shall formally accept the ditch and ponds. 10 . Prior to the recording of the final plat, final construction plans for all public improvements must be approved by the City Engineer. 11. The developer shall be responsible for grading of the plat as shown in the grading, drainage and erosion control plans. XIV. DISCUSSION: PROPOSED AMENDMENTS TO RESOLUTION NO. 376 FOR THE FORMER NBZ GRAVEL MINE Chrmn. Joos opened the floor for discussion on the amendments to Resolution No. 376 for the former NBZ gravel mine, located west of CR 83 and south of CR 16 . The discussion was requested by Apple Valley Readymix (AVR) , Inc. Minutes of the Page -19 Shakopee Planning Commission October 7, 1993 The City Planner stated that there was an annual review for the gravel mine earlier this summer, and since that time AVR has worked through the purchase of the operation of this facility. They have met with city staff on a couple of occasions, and they are here tonight to present more information regarding this matter. Mr. John Voss, Planning Consultant, 7300 West 147 Street, Apple Valley; Liza Robson; and Jerry Sundae, Engineer from Sundae Engineer in Bloomington, appeared on behalf of AVR, Inc. They handed out a booklet to the Planning Commission to explain the proposals they will be discussing during the November meeting. Comm. Spurrier stated that this permit and any change to it always seems to generate a good deal of public interest, and so generally we try to move this issue to a meeting date that does not coincide with our regular Planning Commission and suggested that we schedule this if we are planning a date in November. The City Planner stated that during the review process in that occurred in July, the Planning Commission found this operation not in compliance with Conditions No. 16 and No. 17 of the permit. If the Planning Commission wishes, they could direct staff not to take any enforcement actions to allow this amendment proposal and any environment assessment procedures to be processed. The two areas not in compliance is the depth of the mining and the side slopes. Mr. Voss stated that those two areas have not been taken care of at this time. Motion: Comm. Spurrier/Mars offered a motion to request that staff notify those individuals that would receive notice of this amendment request, that the Planning Commission will be postponing action on this request until after the EAW is completed. Vote: Motion carried unanimously. Motion: Comm. Madigan/Mars offered a motion to direct staff not to take any enforcement action at this time. Vote: Motion carried unanimously. XV. PUBLIC HEARING: TO CONSIDER THE PRELIMINARY PLAT OF MINNESOTA VALLEY 8TH ADDITION — LAURENT BUILDERS, INC. Chrmn. Joos opened the public hearing to consider the preliminary plat of Minnesota Valley 8th Addition, lying Minutes of the Page-20 Shakopee Planning Commission October 7, 1993 at the intersection of Vierling Drive West and Presidential Lane. The City Planner stated that this is a request for preliminary plat approval. The site is located along Vierling Drive West and Presidential Lane. It consists of 15 lots, and is zoned Urban Residential (R-2) . He noted a revised recommendation by staff that requires the developer to construct the sewer main to the north edge of the proposed Lot 6, Block 1, in the Presidential Lane right-of-way, and to construct a sewer service line to the property line of Lot 1, Block 1, Minnesota Valley 6th Addn. He stated that Minnesota Valley 6th Addition was a project that came before the Planning Commission in 1992 that originally proposed 3 lots. Because of the location of sewer lines and the contour lines, essentially what was recommended was the approval of 1 lot. Minnesota Valley 6th Addition consisted of one lot. In that, there was some confusion in terms of the status of the sewer service for Lot 1, Block 1, for Minnesota Valley 6th. With this recommendation, staff is trying to help resolve some of the issues that could possibly come up. Chrmn. Joos stated that initially Vierling Drive was proposed as a loop street to the Minnesota Valley Mall. He requested clarification as to the status of that proposal. The City Planner responded that the proposed Vierling Drive will connect by wrapping around the west side of the shopping center and TH 169 and 10th Avenue. This segment of Vierling Drive would be constructed with this subdivision, or in sequence with the City. Chrmn. Joos asked the applicant to step forward. Gary Laurent, Laurent Builders, Inc. approached the podium. Mr. Laurent stated that the change to recommended Condition No. 5 is one that he is in the process of evaluating right now. He is having the engineer work on some cost estimates, but he is agreeable to leave it as a condition. Chrmn. Joos stated that Condition No. 5 is to be deleted and Condition No. 2 . D covered the elimination of No. 5 by expanding the requirements under Condition No. 2 .D. Mr. Laurent stated that his comments stay for this deletion. Comm. Madigan stated a concern that this is so close to the park and was wondering if the developer had taken into consideration the noise factor. Mr. Laurent stated NGnutes of thePage-21 Shakopee Planning Commission October 7, 1993 that the northwest corner of Tahpah Park and the southeast corner actually touch the park. However, he feels that the fact that the park already exists is going to serve as some warning to any potential homeowners who may move to this area. As a developer and builder, he protects himself by showing potential buyers a map of TahPah Park and of the new southerly bypass. Comm. Spurrier asked where the trail and the sidewalk would be located. The City Planner stated that the location of that trail is proposed to run from TahPah Park over to the shopping mall. A trail would be located within the right-of-way on the south side of Vierling Drive. Sidewalks will be constructed within the right- of-way of Vierling Drive on the north side. It could be possible to relocate the trail along the back side of those lots. Comm. Spurrier asked if the property owners on Vierling Drive west of the proposed subdivision are on a residential street that is bought and paid for, but the improvement of Vierling Drive would widen that approximately eight feet, and an additional eight foot trail on one side, a sidewalk on the other. He asked what is the proposed time for those improvements and what would the city expect to pay for those improvements. Mr. Hutton responded by stating that the City Council has adopted a policy on collector streets that sidewalks and trails will not be assessed to adjacent property owners. The City will pay for those on collector streets. The funding on street projects would be 25% assessed up to residential street width. Anything wider than 36 feet is not assessed. In addition, if a street has not reached its life expectancy, the 25 percent assessment would be prorated accordingly or how old the street is. There would need to be a public hearing and the City Council may delineate from the policy. The time frame is that the traffic flow will be studied in 1994, and the work be done in 1995. Chrmn. Joos recognized anyone in the audience wishing to speak on this matter. Duaine Wood, 1800 Vierling Drive, approached the podium. He stated he was not concerned about the addition, but was concerned about where the trail was going to be. He asked if they would they take part of his land to construct the trail. The City Planner responded by saying that the trail would be constructed within the Vierling Drive right-of-way, and not upon private property. MffiuM.Isofthe Page-22 Shakopee Planning Commission October 7, i Motion: Comm. Mars/Madigan offered a motion to close the public hearing. Vote: Motion carried unanimously. Motion: Comm. Mars/Madigan offered a motion to recommended approval of the preliminary plat for Minnesota Valley 8th Addition, subject to the following conditions: 1. Approval of the title opinion by the City Attorney. 2. Execution of a Developer's Agreement for construction of required improvements: a. Street lighting to be installed in accordance with the requirements of Shakopee Public Utilities. b. Electrical system shall be installed in accordance with the requirements of Shakopee Public Utilities. c. Water system to be installed in accordance with the requirements of Shakopee Public Utilities. d. Installation of sanitary sewer and storm sewer systems shall be in accordance with the requirements of the Design Criteria and Standard specifications of the City of Shakopee. The developer shall construct the sewer main to the north edge of the proposed Lot 6, Block 1, in the Presidential Lane right-of-way and shall construct a sewer service line to the property line of Lot 1, Block 1, Minnesota Valley 6th Addition. e. Local streets within the plat shall be constructed in accordance with the requirements of the Design Criteria and Standard Specifications of the City of Shakopee. f. Street signs will be constructed and installed by the City of Shakopee at a cost to the developer of $250.00 each per sign pole. g. The Park Dedication Requirement shall be a cash payment in lieu of park land. The Park Dedication fees shall be deferred on a lot by of the Page-2 3 Shakopee Planning Commission October 7, 1993 lot basis and are to be paid prior to the release of each principal structure building permit. h. The applicant shall construct 5 foot wide sidewalk along the north side of Vierling Drive, and an 8' wide bituminous trail along the south side of Vierling Drive. i. The City Engineer will reapportion the existing special assessments against the lots and the developer shall waive his right to appeal the reapportionment. 3 . The developer shall enter into an access agreement as follows: No direct access from the individual lots onto Vierling Drive will be allowed for Lot 5 of Block 1, Lot 2 of Block 2, Lot 6 of Block 3, and Lot 1 of Block 4 . Access rights shall be limited by dedicating to the City the access rights in the access agreement. 4 . The proposed plat for Minnesota Valley 8th Addition cannot be served by sanitary sewer until the adjacent property to the east develops and adequate sewer services to serve the plat can be provided. No Building Permits shall be approved for any of the lots within the plat until adequate sanitary sewer services can be provided. 5. Prior to approval of the final plat, final construction plans for all public improvements, the stormwater management plans, and the grading and erosion control plan must be submitted and approved by the City Engineer. 6. The developer shall be responsible for grading of the plat as shown in the preliminary drainage plan. 7 . The developer must provide on-site observation and compaction testing of house pads by a registered professional soils engineer for the areas where native soils are displaced or where the building sites are filled. 8 . The developer shall provide a recordable agreement stating that not more than 10% of the plat will be developed into twin homes (2 lots) . Twin homes will require separate utility connections, and sites must be identified prior to installation of utilities. Minutes of the Pap-24 Shakopee Planning Commission October 7, 1993 9. The developer must obtain the necessary approvals from the Minnesota Pollution Control Agency for stormwater facilities. 10. If part of the plat is abstract, and part of the plat is torrens, the applicant shall provide a revised final plat which shows this division. 11. Approval of the preliminary plat is contingent upon the applicant receiving a Certificate of Exemption (Wetlands Conservation Act of 1991) or receiving approval by the City with appropriate minimization / replacement measures. Vote: Motion carried unanimously. XVI. Other Business A. Zoning Ordinance Update - The Planning Commission set November, 9, 1993 as the public hearing date for the Zoning Ordinance Committee to make their recommendation to the Planning Commission regarding the proposed revisions to Chapter 11 of the City Code. B. The Planning Commission canceled the October 14th Shakopee East Transportation meeting. This meeting will be rescheduled at a later date. XVII. ADJOURNMENT Motion: Comm. Mars/Madigan offered a motion to adjourn the meeting at 10: 35 p.m. MEMO TO: Dennis Kraft, City Administrator FROM: Dave Hutton, Public Works Director SUBJECT: 1993 Reconstruction Project �L DATE: October 13, 1993 NON-AGENDA INFORMATIONAL ITEM FOR CITY COUNCIL Attached is correspondence from S.M. Hentges & Sons, Inc. requesting that they be allowed to postpone the completion of the 1993 Reconstruction Project until next year and also extend their completion date accordingly. Staff has reviewed this request and has approved of it by a change order to the contract. Staff wanted to inform Council of this change to the project scope. S.M.Hentyes &Sons Inc. P. 0. BOX 212 SHAKOPEE, MN. 55379 SHAKOPE.MN._445-7004 (612) 445-7004 September 17 , 1993 Mr. David Hutton City Hall 129 South Holmes Shakopee, MN 55379 Re: Project 1993-7 Dear Dave, Confirming our conversation today we will complete the portion of this project that includes 4th Avenue and everything toward the North except for the bituminous wear course. We will complete the remaining areas including the bituminous wear course on or before August 1, 1994 . It is understood that this a mutual agreement and no liquidated damages will arise from this extended completion date. Sinc - ely, / .1• Steven M. Hentges President GENERAL CONTRACTOR SEWER & WATER, EXCAVATING, SITE DEVELOPING, TRUCKING & HEAVY EQUIPMENT MOVIN H 0000-+ V M(0oo000)MVtn0-+OM0 0 O(0NO11)(0O1. 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C' I-1 I1 0 I- II J 0 W 1- II Z 1 I1 Q LL 1 II M 11 I- I- 0 N N II L, 1' II Z 1 Z ZCc 11 Q 11 W 0. = < 0 II J V) u f < LL CC V) 11 Q wII 0 0 CC 1- wNCc O u 1N W 0 11 W II n J I- J u 2 II Q Q Z < 11 W I- II w I- I•I I- 1- II 0 Q 11 0 0 Q II W II 0 I- 0 I- W u 0 I.7 II U) to N CO 1) II Z CO I1 U) M 1... O CO II O O II Q Cl) 0 0 II w TENTATIVE AGENDA ADJ.REGULAR SESSION SHAKOPEE, MINNESOTA OCTOBER 19, 1993 LOCATION: City Hall, 129 Holmes Street South Mayor Gary Laurent presiding 1] Roll Call at 7 : 00 P.M. 2] Approval of Agenda 3] Liaison Reports from Councilmembers 4] Mayor's Report 5] RECOGNITION BY CITY COUNCIL OF INTERESTED CITIZENS 6] Approval of Consent Business - (All items listed with an asterisk are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember so requests, in which event the item will be removed from the consent agenda and considered in its normal sequence on the agenda. ) *7] Approval of Minutes of October 5, 1993 8] Communications: None 9] 7: 30 P.M. Public Hearing on proposed assessments for Apgar from 6th to 1st, 2nd Avenue from Atwood to Pierce, and Pierce from 2nd to 3rd; Project No. 1992-6; Res. 3879 10] Boards and Commissions: Planning Commission: *a] Revision to Meadows 9th Addition - Res. 3877 b] Preliminary Plat of Minnesota Valley 8th Addition, lying at the intersection of Vierling Dr. W. and Presidential Lane - Res.3876 c] Rezoning of 68 acre parcel, lying south of 4th Avenue and south and west of the KC Hall (Lenzmeier Property) 11] Reports from Staff: *a] Official Mapping, Water Storage Site *b] Ordering Improvements to McKenna Road - Res. 3882 *c] Insurance Coverage For Mechanic's Tools *d] Approve Bills in the Amount of $1, 075,406. 26 e] 1994 AMM Policies and Legislative Proposals (Bring copy distributed at October 5th Council meeting) TENTATIVE AGENDA October 19, 1993 Page -2- 12) Resolutions and Ordinances: *a] Res. No. 3878, Changing Nov. 2, 1993 Council Meeting Date *b] Res. No. 3883, Authorizing Sale of $1, 400, 000 G.O. Improvement Bonds, Series 1993B *c] Res. No. 3884, Authorizing Sale of $1, 000, 000 G.O. Tax Increment Refunding Bonds, Series 1993C *d] Res. No. 3880, Requesting Mn/DOT Approval of Off-System Expenditure of Municipal State Aid Funds for 4th Avenue Between Fillmore and Naumkeag *e) Res. No. 3881, Declaring Costs To Be Assessed & Setting Hearing for 12th Ave. Sanitary Sewer and Watermain, Project 1992-4 *f] Ord. No. 363, Amending Snow Emergency Routes 13] Other Business: a] b] c] 14] Recess for an Executive Session to discuss the acquisition of property 15] Re-convene 16] Adjourn Dennis R. Kraft City Administrator REMINDER: November 2nd, City Election, 7: 00 am to 8:00 pm November 3rd, Council Meeting, 7: 00 pm 0 . St•FMICIS. REGIONAL MEDICAL CENTER For Immediate Release October 15, 1993 •"*". fj. Contact: Theresa Johnson,Public Relations,496-7585 Affiliation of St. Francis Regional Medical Center, HealthSpan Completed Shakopee, Minn. -Leaders of the Benedictine Health System (BHS),Duluth, and HealthSpan Health (D. Systems Corporation, Minneapolis, signed the final agreement on Oct. 13 creating an affiliation for St.Francis Regional Medical Center, Shakopee, with HealthSpan. In a formal signing ceremony at St. Francis, Sister Kathleen Hofer,OSB,chief executive officer of BHS, and Gordon Sprenger, executive officer of HealthSpan,endorsed the document which estab- lishes the partnership. The organizations view the move positively in positioning St. Francis for the Cir): future,continuing needed community health services in the Minnesota Valley,and in maintaining the sponsorship, mission and values of the Sisters of St. Benedict. "Close cooperation between physicians and hospitals is needed for the future of healthcare," said Don Leivermann, CEO and president of St.Francis. "This cooperation," he said, "will benefit not only patients but employers,payors,physicians and the entire community as well." In the agreement, "HealthSpan will be responsible for the day-to-day operation of St.Francis through our partnership," Sprenger said. "We hope to maintain the unique character of St. Francis while expanding the medical services available to the community it serves." -more- 325 West Fifth Avenue, Shakopee, Minnesota 55379(612)445-2322 Affirmative Action Emplojer.A member of the Benedictine Health System. A new 13 member board of directors will be formed for St. Francis. Directors will include commu- nity members, physicians, and representatives from St. Francis, HealthSpan, and BHS. Other details of the agreement are not being released publicly, but both organizations will work with area physicians in developing the new medical complex to be built south of the new Shakopee bypass. Hofer affirmed the effort, "Our partnership with HealthSpan and the linkage it provides to the rap- idly evolving healthcare market in the Twin Cities allows us to maintain a continued strong presence for Benedictine-sponsored healthcare in the Minnesota Valley." St. Francis is a full-service hospital with more than 400 employees and 200 physicians representing over 30 specialties. Since 1938, St. Francis has been serving the Minnesota communities of Belle Plaine, Carver, Chaska, Chanhassen, Eden Prairie, Jordan, Prior Lake, Savage and Shakopee. HealthSpan, an integrated health services system, encompasses a diverse system of more than 3,200 affiliated physicians, hospitals, clinics, and health-related services. It is one of the largest, not-for- profit secular healthcare systems in the U.S., with more than 16,000 employees. BHS is Minnesota's largest Catholic health system, sponsoring six Minnesota health organizations in addition to St. Francis: St. Joseph's Medical Center, Brainerd; St. Mary's Regional Health Center, Detroit Lakes; and St. Mary's Medical Center, Polinsky Medical Rehabilitation Center, the Benedic- tine Health Center, and the Benedictine Foundation in Duluth. BHS also sponsors St. Mary's Hospi- tal in Cottonwood, Idaho, and through BHS Long Term Care, six long term care facilities in North and South Dakota. -30- OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL REGULAR SESSION SHAKOPEE, MINNESOTA OCTOBER 5, 1993 Mayor Laurent called the meeting to order at 7:00 p.m. with Councilmembers Vierling, Beard, Lynch, and Sweeney present. Also present: Dennis R. Kraft, City Administrator; Barry Stock, Assistant City Administrator; Dave Hutton, Public Works Director; Judith S. Cox, City Clerk; and Gregg Voxland, Finance Director. Lindberg Ekola, City Planner, arrived at 7:27 p.m. Mayor Laurent added to the agenda: 15a) MWCC property sale, 15b) Special meeting for bond sale, 15c) possible sale of land (RLS 135, Tract A) , 15d) Tax Increment Financing refunding bonds. Mayor Laurent suggested that 3 items on the Council agenda be discussed in Executive Session: 10a) Paul Schwaesdall - land in front of the Huber Building, 15a) MWCC property sale, 15c) Possible sale of land (RLS 135, Tract A) , 15d) Tax Increment Financing refunding bonds. Lynch/Vierling moved to approve the agenda as modified. Motion carried unanimously. Mayor Laurent recessed the Council meeting at 7: 08 p.m. for a Housing & Redevelopment Authority meeting. Mayor Laurent reconvened the Council meeting at 7: 19 p.m. Liaison reports were given by the Councilmembers. Sweeney/Vierling moved to publicly thank the Shakopee Public Utilities Commission for working through and adopting a resolution which will change the monthly payment to the City of Shakopee to more closely approximate 1/12 of the actual amount that will be due in a year. Motion carried unanimously. Mr. Ekola arrived and took his seat. Mayor Laurent gave the Mayor's report. Mayor Laurent asked if anyone present in the audience wished to speak on any item not on the agenda. There was no response. Councilmembers added the following items to the consent business: 13b) Health insurance for retired employees, 15b) Special meeting for bond sale. Sweeney/Beard moved to approve the consent business as modified. Motion carried unanimously with Cncl. Vierling abstaining on the minutes of 9-7-93 and Cncl. Beard abstaining on the minutes of 9- 21-93 . Official Proceedings of the October 5, 1993 Shakopee City Council Page -2- Sweeney/Beard moved to approve the minutes of September 7, 1993 (Motion carried under consent business with Cncl. Vierling abstaining. ) Sweeney/Beard moved to approve the minutes of September 21, 1993 (Motion carried under consent business with Cncl. Beard abstaining) Mayor Laurent opened the public hearing on the application from The Unbank Company for a Minnesota Currency Exchange License. Ms. Cox explained that this is a renewal of a license held for the last four to five years and is located at Canterbury Downs. She stated that the business is not in operation but that they wish to renew their license so that it will be in effect when there is activity out there. She stated that staff is unaware of any reason to deny the application. Mayor Laurent asked if there were any comments from members of the audience. There were none. Mayor Laurent closed the public hearing. Vierling/Beard offered Resolution No. 3867, A Resolution Approving The Application of Unbank Company For A Currency Exchange License at 1100, Canterbury Road, and moved its adoption. Motion carried unanimously. Mayor Laurent opened the public hearing on the application from Shakopee Check Cashing for a Minnesota Currency Exchange License. Ms. Cox explained that this is also a renewal of a license, that staff is unaware of any reason to deny the application, and that the applicant was present if Council had questions. Cncl. Sweeney asked the applicant if the business is in operation. Mr. Marzario responded that it was. Mayor Laurent asked if there were any comments from members of the audience. There were none. Mayor Laurent closed the public hearing. Sweeney/Lynch moved to offer Resolution No. 3868 , A Resolution Approving The Application of Shakopee Check Cashing For A Currency Exchange License at 1147 Canterbury Road, and moved its adoption. Motion carried unanimously. Mayor Laurent opened the public hearing on the proposed improvements to the alley in Block 48 lying between Holmes and Fuller and between 3rd and 4th. Official Proceedings of the October 5, 1993 Shakopee City Council Page -3- Mr. Hutton stated that this is an existing paved alley that is fairly old and deteriorated. He stated that it is at least 20 years old. The main problem is in the drainage. Water drains from Holmes Street and Fuller Street and collects in the center. He identified three options: drain the alley to Holmes, put in a catch basin at the low part of the alley, and that there may still be a need to drain the alley to the north which would require obtaining an easement from the property to the north. Mr. Hutton stated that the cost estimate to redo the alley is $6, 325. 00 which would be assessed 100%; and, the cost estimate for the storm sewer is $4, 000 which would be paid out of the storm drainage utility. He recommended that the project be bid with the downtown alley project rather than on its own. Frank Schneider, 127 West 4th, addressed the Council giving a history of public improvements made over the past 25 years for Holmes Street, 4th Street, and Fuller St. for which he was assessed. He also gave a history of the development in this block which he feels led to the drainage problem. He stated that he paid for the alley once, that he would like to see it improved, but doesn't believe he should have to pay. Ray Siebenaler, 119 West 4th, stated that he is in favor of putting in something to get rid of the puddle in the alley and leaves it to the Council to correct. He believes that it is a bad situation and agrees with Mr. Schneider that it came from runoff from the buildings. Jay Kohlrusch, owner of a new building where runoff is occurring, stated that he has tried to correct the drainage problem (created when he built his building which no longer allowed the water to drain through his property] , but the runoff is too low. He is in favor of the project. Phil Norton, 338 Holmes, stated that he took a transit and shot the block. He noted that all the water runs to a point in the middle of the block that is 15 inches low. Mr. Schneider reviewed a staff memo dated 6/26/91 to Council where it was recommended that the property owner [Kohlrusch Abstract] make the necessary improvements to correct a drainage problem. He feels that the alley should drain through the Kohlrusch property. There being no further comments from the audience, Mayor Laurent closed the public hearing. Cncl. Vierling stated that she feels the assessment policy should be followed because the alley is 25 years old and the storm sewer improvement is not being assessed. Official Proceedings of the October 5, 1993 Shakopee City Council Page -4- Beard/Vierling offered Resolution No. 3874, A Resolution Ordering An Improvement And The Preparation Of Plans And Specifications For The Alley In Block 48 (Original Plat of Shakopee) Project No. 1994- 1, and moved its adoption. Motion carried unanimously. Mr. Kraft explained that Mr. Brambilla received a building permit and that Mr. Brambilla is of the opinion that the value placed on the building for purposes of establishing the building permit fee is to high and is requesting a rebate of some of the fee. Mr. Kraft explained the process used by the building department to determine the value of buildings when building permits are requested. He said that Shakopee follows the same procedure as other cities. Jack Brambilla, 620 Monroe, explained that he was able to construct the building for $750, 000. He feels that the $1,200, 000 value placed on the building by the City is to high and requested a partial refund of his building permit fee in the amount of $2, 326.83. Sweeney/Vierling moved that administration be directed to reimburse Mr. Brambilla $2,326.83 of his building permit fee. Motion defeated unanimously. Sweeney/Beard moved to direct staff to prepare an amendment to the personnel policy to provide that retired employees who are over age 65 are pooled separately from the active employees for rating purposes of group insurance coverage. (Motion carried under consent business. ) Sweeney/Beard moved to terminate the probationary status of Bill Egan and appoint him to the full-time permanent position of Maintenance Worker effective September 22, 1993 . (Motion carried under consent business. ) Sweeney/Beard moved to authorize the proper City officials to execute an assessment agreement between the City of Shakopee and the County of Scott for the assessment of property in Shakopee for the 1994 assessment year in the amount of $31, 500. 00. (Motion carried under consent business. ) Mr. Ekola explained that the 1994-1998 Capital Improvement Program is a guide for capital improvements within the City. He identified the eight types of project categories it included and stated that it is a general tool which is renewed each year. He explained that the City Engineer will bring back each project for council approval to do a feasibility study. Mr. Ekola stated that the Planning Commission recommends approval of the 5-year CIP with one change. They would like A-20, Vierling Official Proceedings of the October 5, 1993 Shakopee City Council Page -5- Drive from Polk to Highway 169, to be moved from 1996 to 1994. Discussion followed. Cncl. Sweeney stated that he had a problem with the total cost of all the projects for the five years. He stated that the $17, 000, 000 projected cost for 1994 is higher than other years and identified the projects proposed for 1994 that he was not supportive of. Sweeney/Vierling moved to remove Harrison St. (A-8) and Pierce St. (A-11) from the 1994 Capital Improvement Program, Street and Highway Projects. Motion carried with Councilor Beard dissenting. Sweeney/Lynch moved for a feasibility study on Pierce Street with the intent to vacate it. Motion carried unanimously. Lynch/Beard moved to approve the 1994 Capital Improvement Program, Sidewalk and Trail Projects B-1 to B-8. Motion carried unanimously. Sweeney/Vierling moved to approve the rest of the 1994 Capital Improvement Program, Street and Highway Projects A-1 to A-11 (except A-8 and A-11) . Motion carried unanimously. Vierling/Lynch moved to approve the 1994 Capital Improvement Program, Sanitary Sewer Projects (C-1 to C-3) . Motion carried unanimously. Vierling/Beard moved to approve the two 1994 Capital Improvement Program, Stormwater Drainage Projects (D-1 and D-2) . Motion carried unanimously. Sweeney/Lynch moved to approve the 1994 Capital Improvement Program, Park Projects E-1 to E-5. Motion carried unanimously. Vierling/Sweeney moved to approve the 1994 Capital Improvement Program, Municipal Buildings, Project F-1, Public Works Parking Lot. Motion carried unanimously. Sweeney/Lynch moved to delete from the 1994 Capital Improvement Program, Fire Project G-1, Fire Station No. 2 Land Acquisition. Motion carried unanimously. Mr. Hutton explained that, although not a part of the CIP presented to City Council, the Planning Commission recommends improving Vierling Drive from Polk Street around the mall because of traffic circulation concerns. Discussion followed. Sweeney/Lynch moved to direct staff to prepare a study of the traffic patterns with respect to Vierling Drive and the mall in Official Proceedings of the October 5, 1993 Shakopee City Council Page -6- 1994 so the information can be available for next year when discussing the 1995 CIP. Motion carried unanimously. Mr. Stock stated that City Council needs to discuss Park Projects 5 through 8. Cncl. Sweeney stated that E-5, Tahpah Park Bleachers, and E-6, Community Youth Building-Air Cond. , will depend upon donations. Sweeney/Vierling moved to add E-5, E-6, and E-7 to the 1994 Capital Improvement Program, Park Projects. Motion carried unanimously. Lynch/Vierling moved to add E-8, Community Center and facilities, to the 1994 Capital Improvement Program, Park Projects. Motion carried unanimously. Sweeney/Beard moved to take the Chaska Interceptor Agreement off the table. (Motion carried under consent business. ) Sweeney/Beard moved to table the Chaska Interceptor Agreement. (Motion carried under consent business. ) Sweeney/Beard moved to approve the bills in the amount of $141,705.22 . (Motion carried under consent business. ) Sweeney/Beard moved to direct staff to prepare the appropriate resolution changing its regular time of meeting for November to November 3, 1993 at 7: 00 p.m. Motion carried unanimously. Sweeney/Beard offered Resolution No. 3870, A Resolution Appointing Judges of Election and Establishing Compensation, and moved its adoption. (Motion carried under consent business. ) Sweeney/Beard offered Resolution No. 3865, A Resolution Ordering Improvements and the Preparation of Plans and Specs for the Downtown Streetscape Project - Phase II, Project No. 1993-12, and moved its adoption. (Motion carried under consent business. ) Sweeney/Lynch offered Resolution No. 3872 , A Resolution Declaring the Cost to be Assessed and Ordering the Preparation of Proposed Assessments for the Alley Located Between Market Street and Outlot A of Eastview Addition (Block 309, 314 and 317 of Wermerskirchen's Addition) and Minnesota/Dakota Street from 7th Avenue North to the Alley, Project NO. 1993-5, and moved its adoption; and, set public hearing for November 3rd, at 7 : 30 p.m. Motion carried unanimously. Sweeney/Lynch offered Resolution No. 3873, A Resolution Declaring the Cost to be Assessed and Ordering the Preparation of Proposed Assessments for the 1993 Sidewalk Replacement Program, Project No. 1993-11, and moved its adoption; and, set the public hearing for November 3rd, at 7 : 30 p.m. or thereafter. Motion carried unanimously. Official Proceedings of the October 5, 1993 Shakopee City Council Page -7- Sweeney/Beard offered Resolution No. 3871, A Resolution Canceling Debt Service Levies for 1993-1994 , and moved its adoption. (Motion carried under consent business. ) Sweeney/Beard offered Resolution No. 3875, A Resolution of the City of Shakopee, Minnesota, Reassessing Certain Property for the 1991-3 2nd Avenue Project, and moved its adoption. (Motion carried under consent business. ) Sweeney/Beard moved to set the sale date for the 1993 improvement bonds for November 18, 1993 and to have a Council special meeting at 5 : 00 p.m. (Motion carried under consent business. ) Sweeney/Vierling moved to concur with the recommendation of the HRA and directed staff to proceed with the refunding of the 1984 special obligation TIF bonds (K-mart) with general obligation TIF bonds in conjunction with the sale of the 1993 improvement bond issue. Motion carried unanimously. Mayor Laurent recessed the City Council meeting at 9 : 24 p.m. for the purpose of discussing the purchase and sale of property. Mayor Laurent reconvened the City Council meeting at 10 : 00 p.m. (No action was taken by the Council during the Executive Session. ) Sweeney/Lynch moved to direct staff to prepare the necessary documents to convey property (boulevard areas North of Pablo's Restaurant) to Mr. Paul Schwaesdall for $1 . 00 plus the cost of preparing and drafting the documents; and, that the documents contain either a reversionary clause or a deed restriction limiting the use of the property. Motion carried unanimously. Mayor Laurent adjourned the meeting to Tuesday, October 19 , 1993 at 7 : 00 p.m. The meeting adjourned at 10: 02 p.m. Judith S. Cox City Clerk Recording Secretary 9� MEMO TO: Dennis Kraft, City Administrator FROM: Dave Hutton, Public Works Director SUBJECT: Apgar Street, Project No. 1992-6 DATE: October 13, 1993 INTRODUCTION: A public hearing has been scheduled for October 19, 1993 to consider the special assessments for the Apgar Street Project. Attached is Resolution No. 3879, which adopts the special assessments for this project. BACKGROUND: The Apgar Street Project has been completed and all project costs have been identified. In order to include the assessments for the 1994 tax statements, the assessments must be certified to Scott County by November 30, 1993. This project consists of reconstructing Apgar Street between 1st Avenue and 6th Avenue, reconstructing the paved portions and paving the gravel portions of 2nd Avenue between Atwood Street and Pierce Street and paving Pierce Street between 2nd Avenue and 3rd Avenue. The final project costs are$407,573.19,which consists of construction costs totalling$341,113.59 and actual engineering/administrative costs totalling $66,459.60. The actual engineering and administrative costs are 19.5% of the construction costs. The gravel street segments that were upgraded as part of this project will be assessed 100% and the paved street segments that were reconstructed will be assessed 25% in accordance with the City of Shakopee Special Assessment Policy. In addition, any street oversizing costs (over 36 feet wide) will not be assessed. Due to the nature of this project, there are 4 separate assessment methods used. Attached is the assessment summary for each segment of the project. The total amount being assessed is $93,700.30. The feasibility report has estimated the total assessments to be $101,328.55. While the total amount assessed is lower, two of the segments resulted in higher assessments and two segments resulted in lower assessments. The final assessments were based on actual field measurements for each street and are extremely accurate in regards to determining the quantities used on each segment for the various construction items. The Apgar Street portion of the project resulted in the actual assessments being 13% higher than estimated. The reason for the increased costs were due to the added costs for removing excess railroad tracks and a retaining wall at 3rd and Apgar. These two items were not included in the original cost estimates. It should also be noted that the 2nd Avenue segment, between Apgar Street and Atwood Street, included sanitary sewer service line assessments to the properties that received new service lines, resulting in their total assessment being substantially higher than listed in the feasibility report. But the feasibility report does not include sewer service assessments as there is no way to determine ahead of time which properties will need new sewer services. Excluding the service lines costs, the final assessments for this segment are 12% higher than estimated The original assessment roll includes a $10,000.00 assessment to Rahr Malting for their contribution to 2nd Avenue but since they have already paid this amount, their assessment has been adjusted accordingly. They will of course receive the same front foot or lot assessment rate as all other properties. At the conclusion of the public hearing, attached is Resolution No. 3879 which adopts the special assessments for this project. ALTERNATIVES: 1. Adopt Resolution No. 3879. 2. Deny Resolution No. 3879. RECOMMENDATION: Staff recommends Alternative No. 1. ACTION REQUESTED: Offer Resolution No. 3879, A Resolution Adopting Assessments for Apgar Street, 6th Avenue to 1st Avenue; 2nd Avenue, Atwood Street to Pierce Street; and Pierce Street, 2nd Avenue to 3rd Avenue, Project No. 1992-6 and move its adoption. DEH/pmp MEM3879 RESOLUTION NO. 3879 A Resolution Adopting Assessments For Apgar Street, 6th Avenue To 1st Avenue; 2nd Avenue, Atwood Street To Pierce Street; And Pierce Street, 2nd Avenue To 3rd Avenue Project No. 1992-6 WHEREAS, pursuant to proper notice duly given as required by law, the City Council of the City of Shakopee met and heard and passed upon all objections to the proposed assessments of: Apgar Street, 6th Avenue to 1st Avenue; 2nd Avenue, Atwood Street to Pierce Street; and Pierce Street, 2nd Avenue to 3rd Avenue by street reconstruction, pavement, sanitary sewer and watermain. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. That such proposed assessment together with any amendments thereof, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named herein and each tract therein included is hereby found to be benefitted by the proposed improvements in the amount of the assessments levied against it. 2. Such assessments shall be payable in equal annual installments extending over a period of ten years, the first installment to be payable on or before the first Monday in January, 1994, and shall bear interest at the rate of 6.5 percent per annum from the date of the adoption of this assessment resolution. To the first installment shall be added the interest on the entire assessment from the date of this resolution until December 31, 1994 and to each subsequent installment when due shall be added the interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor,pay the whole of the assessment on such property,with interest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid within thirty (30) days from the adoption of this resolution; the owner may thereafter pay to the County Treasurer the installment and interest in process of collection on the current tax list, and may pay the remaining principal balance of the assessment to the City Treasurer. 4. The Clerk shall file the assessment rolls pertaining to this assessment in her office and shall certify annually to the County Auditor on or before November 30th of each year the total amount of installments and interest on assessments on each parcel of land which are to become due in the following year. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of . 1993. 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HOLMES STREET LOT 10 BLOCK 33 SHAKOPEE, MN. 55379 SHAKOPEE PLAT 27-001272-0 JER-MOR ENTERPRISES INC LOT 6&EX.W. 40' OF LOT 7 80.00 $1,317.47 $744.00 $2,061.47 206 S. SCOTT BLOCK 34 SHAKOPEE, MN. 55379 SHAKOPEE PLAT 27-001273-0 BRETT BERKLAND W.40' OF LOT 7 40.00 $658.74 $475.20 $1,133.94 416 2ND AVE.W. BLOCK 34 SHAKOPEE, MN. 55379 SHAKOPEE PLAT 27-001274-0 WILLIAM FEYEREISEN E.55' OF LOT 8 BLOCK 34 55.00 $905.76 $409.20 $1,314.96 420 W. 2ND AVE. SHAKOPEE PLAT SHAKOPEE,MN. 55379 27-001275-0 GARY L MORTENSON &WIFE W. 5' OF 8 AND ALL OF LOT 9 65.00 $1,070.45 $66.00 $1,136.45 428 W. 2ND AVE. BLOCK 34 SHAKOPEE, MN. 55379 SHAKOPEE PLAT 27-001276-0 DOUGLAS E. &JODY L. SORENSON LOT 10 BLOCK 34 60.00 $988.11 $501.60 $1,489.71 438 W. 2ND AVE. SHAKOPEE PLAT SHAKOPEE, MN. 55379 TOTALS= 600.00 $9,881.05 $3,121.90 $13,002.95 ASSESSMENT COST/FRONT FOOT= $16.4684 FUNDING SUMMARY Non-Assessed Street Portion $158,228.08 Assessed Amount $ 93,700.30 Storm Sewer Utility $ 51,085.04 Sanitary Sewer Fund $ 49,221.72 S.P.U.C. Portion (Watermain) $ 55,338.05 TOTAL $407,573.19 Note: The City will receive approximately $156,000.00 in Municipal State Aid funds to pay for the non-assessed street portions of the project. ASSESSMENT SUMMARY 1. Apgar Street, 1st Avenue to 6th Avenue 25% Assessed, Zonal Assessment Total Amount Assessed = $41,891.45 Number of Lots = 44.81 Cost Per Lot = $944.99 Per Lot Estimated Assessments in Feasibility Report = $37,055.05 or $826.94 Per Lot Actual Assessments are 13% Higher than Estimated 2. Pierce Street, 2nd Avenue to 3rd Avenue 100% Assessed, Zonal Assessment Total Amount Assessed = $16,421.92 Number of Lots = 10 Cost Per Lot = $1,642.19 Per Lot Estimated Assessments in Feasibility Report = $29,098.79 or $2,909.88 Per Lot Actual Assessments are 44% Lower than Estimated (Note: The Feasiblity Report has a computation error resulting in estimating twice as much gravel and asphalt as needed for this segment.) 3. 2nd Avenue, Pierce Street to Apgar Street 100% Assessed, Front Foot Assessment Total Amount Assessed = $22,398.93 Total Front Foot = 600 Feet Cost Per Front Foot = $37.31 Per Front Foot Estimated Assessments in Feasibility Report = $26,355.00 or $43.93 Per Front Foot Actual Assessments are 15% Lower than Estimated 4. 2nd Avenue, Apgar Street to Atwood Street 25% Assessed, Front Foot Assessment Total Amount Assessed = $9,881.05 Total Front Foot = 600 Feet Cost Per Front Foot = $16.47 Per Front Foot Estimated Assessments in Feasibility Report = $8,819.71 or $14.70 Per Front Foot Actual Assessments are 12% Higher than Estimated In addition, a total of $3,121.90 was assessed directly for new sanitary service lines. 'IDa = ammativTI umia zrae 009 = NOLII('IOSa I las 'Ira@ oqor ;oaJ.tadpao4u = AK'IdSIQ 9SWAU I 'Ird13 9 October 17 , 1993 Dear Members of the City Council: We, the reliable tax paying citizens of Shakopee who live on Apgar Street from 4th Ave. to 6th Ave, would like to remind you that at the April 6th, 1993 City Council Meeting we spoke with you regarding the attached letter concerning the improvements made to Apgar St. which began MUCH TOO LATE in the year on September 14 , 1992 and was NOT COMPLETED until the spring of 1993 . As the attached letter states we had to undergo much inconvenience, mess and extra expense throughout the fall, winter and spring as a result of poor planning by city planners and we asked that our assessments be lowered because of this. If you will look back at the minutes and/or video of that meeting, you will be reminded that Dave Hutton promised that there would be a re-assessment meeting for those of us directly affected. That never happened and we ask WHY? We also ask for that same reduction in our assessments that we asked for back in April of 1993 . This is the second promise that was not carried out by officials who's salaries we help pay for. This is terribly disappointing and causes hard feelings and mistrust toward city officials who are supposed to be working for us, not against us. We hope that this matter gets resolved quickly and fairly to instill trust back into our city officials, and so we can pay our fair assessment (taking into account all we had to put up with) and forget about the whole darn mess and hope we all learned something from this unfortunate scenario. Sincerely, Q ✓f fly �/ cq,,t.or,& �arJ 5" .•(�.VY..iL C C . lc)aj'Alt --- Y! , , c , , J • OCT 1 91993 Dear Members of the City Council: We, the reliable tax paying citizens of Shakopee who live on Apgar Street from 4th Ave. to 6th Ave, wish for you, the members of the City Council, to consider the following: DO NOT ALLOW ANY ROAD PROJECTS TO BEGIN AFTER AUGUST 1ST ANYWHERE IN SHAKOPEE! Why? We do not want any others to go through a fall, winter and spring such as we have, and are experiencing. On Sept. 14, 1992 the city began work on Apgar St. to put in curb and gutter ( a project that was supposed to begin in July) . The city planner promised us, and assured us whenever we asked, that it would have curb, gutter and at least one layer of pavement down by Oct. 31st. This did not happen. As a matter of fact, between 5th and 6th, the area that had the least amount to do on it utility wise, still does not even have curb and gutter. We invite you to come up and observe what this section of Apgar is like, especially after a rain (or snow) . The surface is just like runny red clay that never drys out. It is also very slippery. Some of us have fallen on this going down our driveways or slipping on our steep, unstable sidewalk drop offs. This red clay does not come out of clothing so various items have been ruined (like jackets) . Luckily, no one has been seriously injured yet. We also try to keep our cars clean through car washings but one trip to our driveways gunks up the whole bottom again which also gets on our carports (where kids play) and in our garages and then into the house. We have had to buy extra outside mats and inside throw rugs to protect our carpets from that red dirt that doesn't come off and also will need to have our carpets professionally cleaned when and if Apgar ever gets finished. Another thing we are upset by is the fact that NOTHING has been done at all to fill any of the pot holes (of which there are many) all winter. They are so bad in some spots, many of us may have to have our cars realigned. We believe we should be compensated for all these extra expenses, work and inconveniences by having our assessments for this project reduced considerably because the project was not completed by Oct. 31, 1992 as promised. Sincerely, 9 October 17 , 1993 Dear Members of the City Council: We, the reliable tax paying citizens of Shakopee who live on Apgar Street from 4th Ave. to 6th Ave, would like to remind you that at the April 6th, 1993 City Council Meeting we spoke with you regarding the attached letter concerning the improvements made to Apgar St. which began MUCH TOO LATE in the year on September 14 , 1992 and was NOT COMPLETED until the spring of 1993 . As the attached letter states we had to undergo much inconvenience, mess and extra expense throughout the fall, winter and spring as a result of poor planning by city planners and we asked that our assessments be lowered because of this. If you will look back at the minutes and/or video of that meeting, you will be reminded that Dave Hutton promised that there would be a re-assessment meeting for those of us directly affected. That never happened and we ask WHY? We also ask for that same reduction in our assessments that we asked for back in April of 1993 . This is the second promise that was not carried out by officials who's salaries we help pay for. This is terribly disappointing and causes hard feelings and mistrust toward city officials who are supposed to be working for us, not against us. We hope that this matter gets resolved quickly and fairly to instill trust back into our city officials, and so we can pay our fair assessment (taking into account all we had to put up with) and forget about the whole darn mess and hope we all learned something from this unfortunate scenario. Sincerely, - 0./C2,02. . c)/2--Cgt463 Fr,r,•tur„-.0 /1 , , 6 „ dd.gp .4, �, p OCT 1 9X93 n __ Dear Members of the City Council: We, the reliable tax paying citizens of Shakopee who live on Apgar Street from 4th Ave. to 6th Ave, wish for you, the members of the City Council, to consider the following: DO NOT ALLOW ANY ROAD PROJECTS TO BEGIN AFTER AUGUST 1ST ANYWHERE IN SHAKOPEE! • Why? We do not want any others to go through a fall, winter and spring such as we have, and are experiencing. On Sept 14, 1992_ the city began work on Apgar St. to put in curb and gutter ( a project that was supposed to begin in July) . The city planner promised us, and assured us whenever we asked, that it would have curb, gutter and at least one layer of pavement down by Oct. 31st. This did not happen. As a matter of fact, between 5th and 6th, the area that had the least amount to do on it utility wise, still does not even have curb and gutter. We invite you to come up and observe what this section of Apgar is like, especially after a rain (or snow) . The surface is just like runny red clay that never drys out. It is also very slippery. Some of us have fallen on this going down our offs.dowThin our or slipping on our steep, unstable sidewalk drop clay does not come out of clothing so various items have been ruined (like jackets) . Luckily , no one has been seriously injured yet. We also try to keep our cars clean through car washings but one trip to our driveways gunks up the whole bottom again which also gets on our carports (where kids play) and in our garages and then into the house. We have had to buy extra outside mats and inside throw rugs to protect our carpets v r m that red dirt that our carpets professionally doesn't will will need to have cleaned when and if Apgar ever gets finished. Another thing we are upset by is the fact that NOTHING has been done at all to fill any of the pot holes (of which there are many) all winter. They are so bad in some spots, many of us may have to have our cars realigned. We believe we should be compensated for all these extra expenses, work and inconveniences by having our assessments for this project reduced considerably because the project was not completed by Oct. 31, 1992 as promised. Sincerely, ID0.. CONSENT MEMO TO: Dennis Kraft, City Administrator FROM: Lindberg S. Ekola, City Planner RE: Proposed Revision To The Final Plat For The Meadows 9th Addition DATE: October 11, 1993 INTRODUCTION: The street, Indigo Lane, proposed on the west side of The Meadows 9th Addition needs to be relocated due to a Minnegasco gas line. The location of The Meadows 9th Addition is shown on Exhibit A. BACKGROUND: At the August 17, 1993 meeting, the City Council approved the final plat for The Meadows 9th Addition, subject to eleven (11) conditions. Indigo Lane was proposed to be located on the west side of the plat to provide a future street connection with future development to the west of The Meadows subdivision. Please refer to Exhibit B. DISCUSSION: After the City's review of the Final Plat, Minnegasco staff members identified a problem with the location of the proposed street, Indigo Lane. Minnegasco, by policy, does not allow the construction of streets above their gas lines, except at street crossings. As shown on Exhibit B, Indigo Lane would be constructed over a gas line on the west side of The Meadows 9th Addition. Minnegasco is requiring that the street not be constructed in this location. One option would be to delete the construction of the connecting street from the final plat. Staff feels that a street connection is needed between The Meadows subdivision and the land areas to the west. Providing alternative local street connections within this residential neighborhood area is essential to the local circulation patterns for pedestrians and bicyclists, as well as motor vehicles. Mr. Paul Cherne, of Pioneer Engineering Co. , has submitted a revised Final Plat drawing which relocates the connecting street through the Thistle Court cul-de-sac. (See Exhibit C. ) At their meeting on October 7 , 1993 , the Planning Commission recommended approval of the proposed revision to the final plat, subject to the construction of a temporary cul-de-sac and the recording of necessary easements. The temporary cul-de-sac would be removed with the future development of the land to the west of The Meadows subdivision. The Planning Commission also recommended one clarification to the previously approved condition in regard to the noise mitigation barrier. A financial guarantee should be provided to the City in the Developer's Agreement assuring the construction of the noise barrier. The Planning Commission recommends that Condition 5 from the approved resolution be moved under Condition 2 as a Developer Agreement item. ALTERNATIVES: 1. Approve the revised final plat. 2 . Do not approve the revised final plat. 3 . Table the decision on the revised final plat for additional information from the applicant and/or staff. PLANNING COMMISSION RECOMMENDATION: The Planning Commission recommends approval of the revised final plat for The Meadows 9th Addition, subject to the following conditions: 1. Approval of title opinion by the City Attorney. 2 . Execution of a Developer's Agreement for construction of required improvements: a. Street lighting to be installed in accordance with the requirements of the Shakopee Public Utilities Commission. b. Electrical system to be installed in accordance with the requirements of the Shakopee Public Utilities Commission. c. Water system to be installed in accordance with the requirements of the Shakopee Public Utilities Commission. d. Installation of sanitary sewer and storm sewer systems, and construction of streets in accordance with the requirements of the Design Criteria and Standard specifications of the City of Shakopee. e. Street signs will be constructed and installed by the City of Shakopee at a cost to the developer of $250. 00 each per sign pole. A total of three (3) street signs will be required. f. The City Engineer will reapportion the existing special assessments against the lots and the developer shall waive his right to appeal the reapportionment. g. The applicant shall dedicate Outlot A to the City for parkland dedication, as per the Preliminary Plat. The park dedication requirement for The Meadows 9th Addition is 2.85 acres (10%) . This amount, less the dedication of Outlot A for parkland (4 .7 acres) , less the parkland dedication credit of 1.2054 acres which resulted from the 8th Addition, results in a park dedication requirement credit of 3 . 0554 acres. This land dedication shall be credited to the parkland dedication requirements for future developments of the plat. h. The applicant shall construct an 8' bituminous trail within Outlot A between Lot 13, Block 4, The Meadows 8th Addition, and the proposed Lot 1, Block 4, The Meadows 9th Addition, to provide a connection between the proposed parkland and the proposed intersection of Primrose Lane and Lupine Court, as designated in the preliminary plat. i. The developer is granted permission to delay the setting of the iron monuments for the plat for one year from the date of the recording of the final plat, and shall post a bond or letter of credit to ensure compliance within the one year time frame. j . The applicant shall construct a temporary cul-de-sac at the end of the relocated connecting street (previously known as Thistle Court) . The applicant shall record an easement agreement with the Scott County Recorder which provides easements for the temporary cul-de-sac prior to the recording of the final plat. k. The developer shall construct a continuous noise mitigation barrier along the south side of the plat to reduce the noise impact from the TH 101 Bypass upon the development in accordance with the MNPCA noise standards. 3 . The developer shall submit verification that the Minnesota Pollution Control Agency has reviewed and favorably commented on the proposed noise mitigation plan prior to the recording of the Final Plat. 4 . Noise mitigation features shall be incorporated into the design of the homes within this addition prior to issuance of the building permit. Homes located in the two tiers of lots adjacent to the TH 101 corridor, will be constructed according to the standards of the Department of Housing and Urban Development (HUD) to reduce ambient noise within the homes to levels acceptable by the Minnesota Pollution Control Agency. 5. The developer shall sign and record an agreement identifying the possible noise impacts created by the TH 101 Bypass for each property within the plat. 6. If part of the plat is abstract, and part of the plat is torrens, the applicant shall provide a revised final plat which shows this division. 7 . The developer shall provide a recordable agreement stating that not more than 10% of the plat will be developed into twin homes (6 lots) . Twin homes will require separate utility connections, and sites must be identified prior to installation of utilities. 8. Prior to the recording of the Final Plat, all repairs required by the City shall be made to the Upper Valley Drainageway, and the City shall formally accept the ditch and ponds. 9. Prior to the recording of the final plat, final construction plans for all public improvements must be approved by the City Engineer. 10. The developer shall be responsible for grading of the plat as shown in the grading, drainage and erosion control plans. ACTION REQUESTED: Offer Resolution No. 3877, A Resolution Approving Amendment No. 1 of Resolution No. 3843 , A Resolution Approving the Final Plat of The Meadows 9th Addition, and move its adoption. RESOLUTION NO. 3877 A RESOLUTION APPROVING AMENDMENT NO. 1 OF RESOLUTION NO. 3843, A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, APPROVING THE FINAL PLAT OF THE MEADOWS 9TH ADDITION. WHEREAS, the Shakopee City Council did approve the Final Plat of The Meadows 9th Addition on August 17, 1993; and WHEREAS, the Planning Commission of the City of Shakopee did review the request for approval of a revised Final Plat of The Meadows 9th Addition on October 7, 1993, and have recommended its approval; and WHEREAS, all notices of the public hearing have been duly sent and posted and all persons appearing at the hearing have been given an opportunity to be heard thereon. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, as follows: That the Final Plat of The Meadows 9th Addition, described as: Outlot A, The Meadows 8th Addition; and That part of Outlot A, The Meadows 1st Addition, Scott County, Minnesota, lying westerly of a line parallel with and distant 30.00 feet easterly of the westerly line, subject to easement is hereby approved, subject to the following conditions: 1. Approval of title opinion by the City Attorney. 2. Execution of a Developer's Agreement for construction of required improvements: a. Street lighting to be installed in accordance with the requirements of the Shakopee Public Utilities Commission. b. Electrical system to be installed in accordance with the requirements of the Shakopee Public Utilities Commission. c. Water system to be installed in accordance with the requirements of the Shakopee Public Utilities Commission. d. Installation of sanitary sewer and storm sewer systems, and construction of streets in accordance with the requirements of the Design Criteria and Standard specifications of the City of Shakopee. e. Street signs will be constructed and installed by the City of Shakopee at a cost to the developer of$250.00 each per sign pole. A total of three (3) street signs will be required. f. The City Engineer will reapportion the existing special assessments against the lots and the developer shall waive his right to appeal the reapportionment. g. The applicant shall dedicate Outlot A to the City for parkland dedication, as per the Preliminary Plat. The park dedication requirement for The Meadows 9th Addition is 2.85 acres (10%). This amount, less the dedication of Outlot A for parkland (4.7 acres), less the parkland dedication credit of 1.2054 acres which resulted from the 8th Addition, results in a park dedication requirement credit of 3.0554 acres. This land dedication shall be credited to the parkland dedication requirements for future developments of the plat. h. The applicant shall construct an 8' bituminous trail within Outlot A between Lot 13, Block 4, The Meadows 8th Addition, and the proposed Lot 1, Block 4, The Meadows 9th Addition, to provide a connection between the proposed parkland and the proposed intersection of Primrose Lane and Lupine Court, as designated in the preliminary plat. i. The developer is granted permission to delay the setting of the iron monuments for the plat for one year from the date of the recording of the final plat, and shall post a bond or letter of credit to ensure compliance within the one year time frame. j. The applicant shall construct a temporary cul-de-sac at the end of the relocated connecting street(previously known as Thistle Court). The applicant shall record an easement agreement with the Scott County Recorder which provides easements for the temporary cul-de-sac prior to the recording of the final plat. k. The developer shall construct a continuous noise mitigation barrier along the south side of the plat to reduce the noise impact from the TH 101 Bypass upon the development in accordance with the MNPCA noise standards. 3. The developer shall submit verification that the Minnesota Pollution Control Agency has reviewed and favorably commented on the proposed noise mitigation plan prior to the recording of the Final Plat. 4. Noise mitigation features shall be incorporated into the design of the homes within this addition prior to issuance of the building permit. Homes located in the two tiers of lots adjacent to the TH 101 corridor, will be constructed according to the standards of the Department of Housing and Urban Development (HUD) to reduce ambient noise within the homes to levels acceptable by the Minnesota Pollution Control Agency. 5. The developer shall sign and record an agreement identifying the possible noise impacts created by the TH 101 Bypass for each property within the plat. 6. If part of the plat is abstract, and part of the plat is torrens, the applicant shall provide a revised final plat which shows this division. 7. The developer shall provide a recordable agreement stating that not more than 10% of the plat will be developed into twin homes (6 lots). Twin homes will require separate utility connections, and sites must be identified prior to installation of utilities. 8. Prior to the recording of the Final Plat, all repairs required by the City shall be made to the Upper Valley Drainageway, and the City shall formally accept the ditch and ponds. 9. Prior to the recording of the final plat, final construction plans for all public improvements must be approved by the City Engineer. 10. The developer shall be responsible for grading of the plat as shown in the grading, drainage and erosion control plans. BE IT FURTHER RESOLVED, that the Mayor and City Clerk are hereby authorized and directed to execute said Plat and Developer's Agreement. Passed in session of the City Council of the City of Shakopee, Minnesota, held this day of , 1993. Mayor of the City of Shakopee Attest: City Clerk Approved as to form: City Attorney . . 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I f, _ -7',.„T''---;: " •'a;.cn�e-s-_ 6 r� ,;(.,8 i_tS -:..7.•A - i. ; ••' 11 l S o % :L Z 9 •QrI � r• 1I ,r n •u 1 n e 1 • A _ R ,.ate_-' t-f--: Jen- atn, ncecr. .__.•re._. 1 °fes s - - - — v ctl_ -� r sI 1 t4• 3.0..[300 a ) D .b MEMO TO: Dennis Kraft, City Administrator FROM: Terrie Sandbeck, Assistant City Planner RE: Preliminary Plat for Minnesota Valley 8th Addition DATE: October 11, 1993 INTRODUCTION: Mr. Gary Laurent of Laurent Builders, Inc. , has submitted an Application for Approval of the Preliminary Plat for Minnesota Valley 8th Addition. The proposed subdivision is located east of the Shakopee Town Square Mall, along Vierling Drive, and south of Presidential Lane. The plat covers 4 . 003 acres, and consists of 15 lots. It includes Outlot A of Minnesota Valley 6th Addition, and Outlots B, D, and E of Minnesota Valley 3rd Addition. The site is zoned Urban Residential (R-2) . (See Exhibit A. ) At their meeting on October 7 , 1993 , the Shakopee Planning Commission recommended approval of the Preliminary Plat to the City Council, subject to 11 conditions. CONSIDERATIONS: 1. The draft 1990 Comprehensive Plan has designated this area for Single Family Residential development. This land use category allows detached housing on parcels approximately 9 , 000 to 12 , 000 square feet in size. It includes locations already developed, as well as locations of new plats. 2 . Seven of the 15 proposed lots meet the area and dimension requirements for development with single family homes, and eight of the lots meet the requirements for development with either single family or two family dwellings. The average residential lot size is 11, 624 square feet, with the smallest lot proposed to be 9 , 450 square feet in area. 3 . Access to the development from the east is through a westerly extension of Vierling Drive. Access from the north will be through a continuation of the existing Presidential Lane to the proposed extension of Vierling Drive. The portions of these roads within the plat were dedicated with Minnesota Valley 3rd Addition in 1979 . The Transportation Section of the draft 1990 Comprehensive Plan has designated Vierling Drive as a collector street. This roadway classification provides both traffic movement and limited access, while interconnecting with minor arterials and providing continuous access across and around neighborhoods. A collector street within the urban area of the City has the capacity to carry 1, 000 to 5, 000 vehicles per day. 1 4 . The approved Citywide Sidewalk and Trail Plans propose that both a sidewalk and a trail be located within the boundaries of this plat. A five foot wide sidewalk should be constructed along the north side of Vierling Drive, and an eight foot wide trail should be constructed along the south side of the street, within the Vierling Drive right-of-way. A condition has been recommended which requires the construction of the trail and sidewalk with the approval of this plat. (See Exhibit B. ) 5. Typically the City controls access to major streets in the subdivision process. Staff recommends that the developer enter into an access agreement as follows: No direct access from the individual lots onto Vierling Drive will be allowed for Lot 5 of Block 1, Lot 2 of Block 2 , Lot 6 of Block 3 , and Lot 1 of Block 4 . Access rights shall be limited by dedicating to the City the access rights in the access agreement, and these access limitations shall be shown on the Final Plat. A copy of the Preliminary Plat has been attached to the end of this memo as Exhibit D. 6 . The proposed plat for Minnesota Valley 8th Addition cannot be served by sanitary sewer until the adjacent property to the east develops and adequate sewer services to serve the plat can be provided. Therefore, the development of this proposed plat is dependent upon the platting of the property to the east. A condition has been recommended that prohibits the approval of any Building Permits for the site until adequate sanitary sewer can be provided. 7 . The applicant originally proposed the Minnesota Valley 6th Addition (north of the 8th Addition) as a 3 lot subdivision in 1992 . Due to the shallow sewer depths, it was recommended that the 3 lot subdivision not be approved. The lot furthest to the north was finally approved for the Minnesota Valley 6th Addition. (See Exhibit C. ) In the review process for Minnesota Valley 6th Addition, it was not clear as to whether the sewer service for the one lot in this subdivision would be temporary until the permanent sewer line going south to the V. I.P sewer was constructed, or if it would be permanent. There was no condition on the Final Plat approval of Minnesota Valley 6th Addition clarifying this issue. The Planning Commission and staff are recommending that the applicant extend the sewer main to the north edge of Lot 6, Block 1, in the proposed Minnesota Valley 8th Addition, and shall provide a sewer service to the property line of Lot 1, Block 1, Minnesota Valley 6th Addition. (See Condition 2 .d. ) This would allow for a deeper sewer service to be constructed for Lot 1, Block 1, in accordance with the City's Design Standards. 2 8. The City Engineer has commented that the construction plans submitted by the applicant must be revised to use the City's design criteria. A Stormwater Management Plan and drainage calculations have not yet been submitted. The City Engineer has recommended approval of the preliminary plat with the condition that the final construction plans, the stormwater management plans, and the grading and erosion control plan be approved by the City Engineer. 9. Shakopee Public Utilities has commented that both water and electrical services will be available to the site, subject to their standard policies, charges, and requirements. 10. The City's Building Official has commented that the applicant must provide on-site observation and compaction testing of house pads by a registered professional soils engineer. 11. Scott County Environmental Health has commented that there are no environmental concerns relating to the site. However, they suggest that the construction phase include a dust control plan. 12. On January 1, 1992, the Wetland Conservation Act of 1991 became effective. If no wetlands are affected, the City will issue a Certificate of Exemption to the owner. A condition has been recommended making its approval contingent upon the applicant receiving a Certificate of Exemption or receiving the appropriate minimization / replacement approvals. 13 . Since the area is not identified as a future park site in the City's draft Comprehensive Plan, Staff is recommending that a park dedication fee be collected in lieu of park land. The park dedication requirements for the 7th Addition were $300. 37 per lot. Using the Assessed Value from the Scott County Assessor's Office in the calculation, the park dedication requirement would be approximately $165.00 per residential lot. Based on these low calculations when using the Assessed Value, the City Council may wish to authorized the hiring of an appraiser to perform an appraisal of the parcels within this phase. The dedication of land for park purposes is made at the time of the platting of the land, and cash payments are due prior to the final approval of the plat by the City Council. However, the developer for this proposed plat has submitted a request to defer the Park Dedication payments to the time of the issuance of the building permit. Due to this request, the City Council may enter into a contractual agreement to allow the park dedication payments to be deferred. This contract will designate the amount to be paid in lieu of park dedication, and is filed with the Scott County Recorder as a lien against the property. 3 14 . There are special assessments against this property. The City Engineer will reapportion these assessments against the lots and the developer will waive his right to appeal the reapportionment. PLANNING COMMISSION RECOMMENDATION: The Planning Commission recommends approval of the Application for Preliminary Plat approval for Minnesota Valley 8th Addition, subject to the following conditions: 1. Approval of the title opinion by the City Attorney. 2 . Execution of a Developer's Agreement for construction of required improvements: a. Street lighting to be installed in accordance with the requirements of Shakopee Public Utilities. b. Electrical system shall be installed in accordance with the requirements of Shakopee Public Utilities. c. Water system to be installed in accordance with the requirements of Shakopee Public Utilities. d. Installation of sanitary sewer and storm sewer systems shall be in accordance with the requirements of the Design Criteria and Standard specifications of the City of Shakopee. The developer shall construct the sewer main to the north edge of the proposed Lot 6, Block 1, in the Presidential Lane right-of-way and shall construct a sewer service line to the property line of Lot 1, Block 1, Minnesota Valley 6th Addition. e. Local streets within the plat shall be constructed in accordance with the requirements of the Design Criteria and Standard Specifications of the City of Shakopee. f. Street signs will be constructed and installed by the City of Shakopee at a cost to the developer of $250. 00 each per sign pole. g. The Park Dedication Requirement shall be a cash payment in lieu of park land. The Park Dedication fees shall be deferred on a lot by lot basis and are to be paid prior to the release of each principal structure building permit. h. The applicant shall construct 5 foot wide sidewalk along the north side of Vierling Drive, and an 8' wide bituminous trail along the south side of Vierling Drive. 4 i. The City Engineer will reapportion the existing special assessments against the lots and the developer shall waive his right to appeal the reapportionment. 3 . The developer shall enter into an access agreement as follows: No direct access from the individual lots onto Vierling Drive will be allowed for Lot 5 of Block 1, Lot 2 of Block 2 , Lot 6 of Block 3 , and Lot 1 of Block 4 . Access rights shall be limited by dedicating to the City the access rights in the access agreement, and these access limitations shall be shown on the Final Plat. 4 . The proposed plat for Minnesota Valley 8th Addition is not presently served by sanitary sewer. No Building Permits shall be approved for any of the lots within the plat until adequate sanitary sewer services can be provided. 5 . Prior to approval of the final plat, final construction plans for all public improvements, the stormwater management plans, and the grading and erosion control plan must be submitted and approved by the City Engineer. 6 . The developer shall be responsible for grading of the plat as shown in the preliminary drainage plan. 7 . The developer must provide on-site observation and compaction testing of house pads by a registered professional soils engineer for the areas where native soils are displaced or where the building sites are filled. 8 . The developer shall provide a recordable agreement stating that not more than 10% of the plat will be developed into twin homes (2 lots) . Twin homes will require separate utility connections, and sites must be identified prior to installation of utilities. 9 . The developer must obtain the necessary approvals from the Minnesota Pollution Control Agency for stormwater facilities. 10. If part of the plat is abstract, and part of the plat is torrens, the applicant shall provide a revised final plat which shows this division. 11. Approval of the preliminary plat is contingent upon the applicant receiving a Certificate of Exemption (Wetlands Conservation Act of 1991) or receiving approval by the City with appropriate minimization / replacement measures. 5 ACTION REQUESTED: 1. Offer Resolution No. 3876, A Resolution Approving the Preliminary Plat of Minnesota Valley 8th Addition, and move its adoption; and 2 . Offer a motion to authorize the hiring of an appraiser to perform an appraisal of the plat, and move its approval. 6 RESOLUTION NO. 3876 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, APPROVING THE PRELIMINARY PLAT OF MINNESOTA VALLEY 8TH ADDITION. WHEREAS, the Planning Commission of the City of Shakopee did recommend approval of the Preliminary Plat of Minnesota Valley 8th Addition on October 7, 1993, and has recommended its approval; and WHEREAS, all notices of the public hearing have been duly sent and posted and all persons appearing at the hearing have been given an opportunity to be heard thereon. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, as follows: That the Preliminary Plat of Minnesota Valley 8th Addition, described as: Outlots B, D, and E, Minnesota Valley 3rd Addition, and Outlot A, Minnesota Valley 6th Addition. is hereby approved, subject to the following conditions: 1. Approval of the title opinion by the City Attorney. 2. Execution of a Developer's Agreement for construction of required improvements: a. Street lighting to be installed in accordance with the requirements of Shakopee Public Utilities. b. Electrical system shall be installed in accordance with the requirements of Shakopee Public Utilities. c. Water system to be installed in accordance with the requirements of Shakopee Public Utilities. d. Installation of sanitary sewer and storm sewer systems shall be in accordance with the requirements of the Design Criteria and Standard specifications of the City of Shakopee. The developer shall construct the sewer main to the north edge of the proposed Lot 6, Block 1, in the Presidential Lane right-of-way and shall construct a sewer service line to the property line of Lot 1, Block 1, Minnesota Valley 6th Addition. e. Local streets within the plat shall be constructed in accordance with the requirements of the Design Criteria and Standard Specifications of the City of Shakopee. f. Street signs will be constructed and installed by the City of Shakopee at a cost to the developer of$250.00 each per sign pole. g. The Park Dedication Requirement shall be a cash payment in lieu of park land. The Park Dedication fees shall be deferred on a lot by lot basis and are to be paid prior to the release of each principal structure building permit. h. The applicant shall construct 5 foot wide sidewalk along the north side of Vierling Drive, and an 8' wide bituminous trail along the south side of Vierling Drive. i. The City Engineer will reapportion the existing special assessments against the lots and the developer shall waive his right to appeal the reapportionment. 3. The developer shall enter into an access agreement as follows: No direct access from the individual lots onto Vierling Drive will be allowed for Lot 5 of Block 1, Lot 2 of Block 2, Lot 6 of Block 3, and Lot 1 of Block 4. Access rights shall be limited by dedicating to the City the access rights in the access agreement. 4. The proposed plat for Minnesota Valley 8th Addition is not presently served by sanitary sewer. No Building Permits shall be approved for any of the lots within the plat until adequate sanitary sewer services can be provided. 5. Prior to approval of the final plat, final construction plans for all public improvements, the stormwater management plans, and the grading and erosion control plan must be submitted and approved by the City Engineer. 6. The developer shall be responsible for grading of the plat as shown in the preliminary drainage plan. 7. The developer must provide on-site observation and compaction testing of house pads by a registered professional soils engineer for the areas where native soils are displaced or where the building sites are filled. 8. The developer shall provide a recordable agreement stating that not more than 10% of the plat will be developed into twin homes (2 lots). Twin homes will require separate utility connections, and sites must be identified prior to installation of utilities. 9. The developer must obtain the necessary approvals from the Minnesota Pollution Control Agency for stormwater facilities. 10. If part of the plat is abstract, and part of the plat is torrens, the applicant shall provide a revised final plat which shows this division. 11. Approval of the preliminary plat is contingent upon the applicant receiving a Certificate of Exemption (Wetlands Conservation Act of 1991) or receiving approval by the City with appropriate minimization / replacement measures. BE IT FURTHER RESOLVED, that the Mayor and City Clerk are hereby authorized and directed to execute said Plat and Developer's Agreement. Passed in session of the City Council of the City of Shakopee, Minnesota, held this day of , 1993. Mayor of the City of Shakopee Attest: City Clerk Approved as to form: City Attorney EXHIBIT A •• • LI.Ap . .. t 't ..1 / i Y ' � =ter (•— x __ —�__; I_ .__ t �i _• 1 •i " ' 7 : ' - �, v .: -_.---; --i t:-,---i }---;.-.4 ; _*_- ^--4 // ,-,• ` f it /, . 1 r- 1-- ---i17: :..jI_-.1--_1L::�-1r--t-:•-j ;-• iC;. , I } • .. / 7_ s-_— c - '_-. - : t. } \ /1/7 ;6''B I, :, . —" L•---it--*•.I' I---i- 1 i j---- - t�--; ��4 { ` �-1 1---!----7 t---i---1f. -r: R { _ \' ri: } 4.0 : ,1•. .0• : ' t - I•--}• i--3;•; t-4; —s—'----: }--:1 r: : I LI---i �_-1 ; . • t 1 '// }—j _ z \ ' . z ,- -•-'• ! �_._s 1 -j-_ -- Fes- r.--... at \\ --ar-T` -'v Egi'►%v:!row_ ,s `!"'-'� �- - '.G AGRICULTURE ; ,,\ R1 RURAL RESIDENTIAL 1\ ' _ -- +i R2 URBAN RESIDENTIAL 'k ' R3 MID—DENSITY RES. 1 I R4 MULTI FAMILY RES. ; . B 1 HIGHWAY BUSINESS : - - , B2 COMMUNITY BUSINESS - _ • B3 CENTRAL BUSINESS ____ _.__- --- 1 I1 LIGHT INDUSTRIAL - ` 12 HEAVY INDUSTRIAL • • j • • I S SHORELAND . - . I. ...... • FLOODPLAIN DISTRICT • - I-•-•• MANDATORY PUD ^ • - RTD RACETRACK DISTRICT t ° + :,, 'Zoning Map • City of SHAKOPEE ---- v ., • V) I O rr .1 4I'" 'il -I ' (0 ir r...1_,Ic___.14 I ;.,! ________-—---- -- ------ air. ›. ....1 ? Y J W 1Q �`11 Q 4, a 1:1 / V....112 O SV.I uWJ Ip Z 3 r 1 I (7 a O 0.i1 s I , ) CI -� j I V .-- —_ I N ~o 1 j,i� Qom. ©ip. - Is' +f.'AWi`X1 ,,1 ''4^ e, 1113 A3NIl10 Avs� r 1: ` I� uJu t w �__^Y 1 0 ,, o w • 4 1 —�. Ys _ Moser ar I :.I 1 �WI Y NOS'p°f . ,l! - \\ .-- 441-1 lid 1i " -- ` ... .. i: • alp r4hillillCIsarri .... �;I' A ..t: Igo �- �o Hard I 1 -- - IS • _,. \\I_ I .�OdAt9Pr' „ n "� M-lnHard — ll ,e \_•—_--JI::' 1 ,.\ -11 _ . _ VI no 0%.k Llh, F - . 14.-- >1 &o. JT1 : j m, I . _ . .> * iJio ° • k.! — Ys -N3e��a n>ri pRit$11 i.i. - 3 o i. In 1 :II �\.. q .0o ~. I � ir i Fo � W ., . 1 -:--, I • 2 ` A 4.... 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T_�' V �i t iI M• ..1 ' la\ 1 y+,., T Q . laLl CC gI/ Y• /` , Ig \�.�� O L—1\.r,.i Ir..I 1• •'O I W 1. 1� M SLt 1•\ • ••o a i I< 0 /LL\ `V`,, - —;; rr \\III F--- O " G %� \ • I �_a; s L,—,� t\ 0 1 ►• \ LI \ \1`• \ 0 o ..7 1•ro4'H J : • OMNI I PP.)!-/-,'x;11 ;;r\r \ I Lam. �: � f.i. LA3-1-1 1 !.I.' � 1NNIi'a I 1 \so5ti.• I. •\ • r^ ' DC— MEMO TO: Dennis Kraft, City Administrator FROM: Terrie Sandbeck, Assistant City Planner RE: Application for Rezoning of the Lenzmeier Property From Multi Residential (R-4) to Urban Residential (R-2) And to Delete the Mandatory PUD Requirement DATE: October 11, 1993 INTRODUCTION: Sienna Corporation has submitted a request to rezone 68 of the 84 . 5 acres of property owned by the Estate of Lorraine Lenzmeier from Multi-family Residential (R-4) to Urban Residential (R-2) , and to delete the mandatory requirement for a Planned Unit Development (PUD) . The site is located south of 4th Avenue, approximately 1/2 mile west of Canterbury Downs. (See Exhibit A. ) At their October 7 , 1993 , meeting, the Planning Commission held the public hearing regarding this request, and has recommended the denial of this application to the Shakopee City Council. BACKGROUND: The westerly portion of the site was annexed from Eagle Creek Township into the City of Shakopee in 1967 , and the remainder of the site was annexed in 1971. It was zoned for light industrial uses. Between 1979 and 1986 the north and western portion of the site was zoned for Community Business (B-2) , and the southeast portion of the site was zoned for Multi-family Residential (R-4) uses. In 1984 , the Shakopee Racetrack area Planning & Zoning Study was performed for the City of Shakopee as a condition of approval for the Canterbury Downs Racetrack. Its purpose was "to allow the City to both maximize the opportunities, and avoid potential problems associated with the location of Minnesota's first parimutuel racetrack within its corporate limits" . Construction of the racetrack was completed in June of 1985. Although the completion of the track stimulated growth of existing businesses, it also stimulated land speculation within the community to such a degree that the City was inundated with development inquiries and requests for rezoning to accommodate hotels, motels, restaurants, and associated commercial developments. Because the only land properly zoned for these uses near the racetrack was in single ownership, a great deal of pressure was put on the City to open up development opportunities for other adjacent landowners. In response to landowner concerns, the City Council appointed a Race Track District Lane Use Study Committee. Hoisington Group, Inc. was selected by the Committee in December of 1985 to assist them with the Race Track Land Use Study. The subject site was included in this study. Exhibit B illustrates the preferred alternative concept plan for the racetrack study area. An east- west collector street was proposed to cross the subject site. Multi-family residential and mixed residential (cluster, zero lot line, townhouses, apartments) were the proposed land uses for the subject site. Exhibit C illustrates the draft 1990 Comprehensive Plan land use for the subject site and surrounding area. High density residential and a public park site are the recommended land uses for the subject site. Exhibit D is the applicant's cover letter which describes the proposed rezoning request. The applicants have also submitted an Application for Preliminary Plat approval for the proposed Prairie Bend residential subdivision. The proposed plat covers a total of 84 . 5 acres. It would consist of 142 single family lots on approximately 55 acres, 280 multi-family units within five structures on 14 .4 acres, and 8.9 acres of parkland. Attached at the end of this memo are copies of the proposed preliminary plat. The developer was recently made aware that the subject site is located within a Mandatory Planned Unit Development (PUD) area. Section 11.40, Subd. 2 states that, "within areas so designated on the official zoning map of the City the use of a PUD shall be mandatory" . The applicant is requesting with the rezoning application that the City delete the site from the Mandatory PUD requirements instead of submitting a request for approval of a Planned Unit Development (PUD) . The City Code requires the approval of one of these options prior to approval of a preliminary plat. DISCUSSION: The central issue with this application is whether or not the proposed single family land use is appropriate. The Planning Commission recommended denial of the R-4 to R-2 rezoning request and the deletion of the mandatory PUD because the requests are inconsistent with the adopted land use plan. The subject site is located within the area included in the East Shakopee Area Transportation Study. A revised land use / transportation plan will be prepared with this study. Staff anticipates that the land use / transportation plan will be developed after the completion of the Chaska Interceptor Agreement. Since further land use planning efforts are proposed for the subject site and the surrounding area, staff suggested that the applicant request a time extension on the rezoning request. The applicant indicated at the Planning Commission meeting that they would like to pursue the rezoning request with the City Council at this time. 2 The Planning Commission staff reports included additional information on this request. The following paragraphs summarize this information. The comprehensive sewer planning process established projections for multi-family residential growth over the next years. The following table summarizes those projections: Time Frame Dwelling Units Acres 1990-2000 596 d.u. 119 2000-2010 551 d.u. 110 Total 1147 d.u. 229 acres Based on the Metropolitan Council's vacant land inventory, there are approximately 210 acres of vacant multi-family designated land in the current Metropolitan Urban Service Area (MUSA) . The applicant is proposing 280 multi-family dwelling units and 142 single family lots on the 84 .5 acre site. The reduction of 68 acres for single family development may or may not be critical to meeting the City's housing goals, depending upon the future expansions of the urban service area and additional multi-family areas. The subject site is located within the East Shakopee Transportation Plan study area. This plan is currently being developed by the City. Several land use and transportation questions in the East Shakopee Transportation study area need further analysis before a staff recommendation can be made on revisions to the land use plan. It would appropriate to complete this land use planning effort prior to amending the zoning pattern within this area. Consideration of a variety of residential land uses will be incorporated into this study for this area. The subject site is located within a Mandatory Planned Unit Development (PUD) area. Section 11.40, Subd. 2 states that, "within areas so designated on the official zoning map of the City the use of a PUD shall be mandatory" . In addition, the developer is proposing to construct five multi-family structures containing 280 units on the western side of the parcel. The developer is proposing that this portion of the subject site remain zoned Multi- family Residential (R-4) , and that these five structures be constructed upon one lot. Section 11. 03 , Subd. 3 .C, regarding Lot Provisions, states, "except in the case of planned developments, as provided for hereinafter, not more than one principal building shall be located upon a lot" . The developer has not submitted a request for approval of a Planned Unit Development. The mandatory PUD requirement was based on the 1986 Land Use Study 3 for the racetrack area. The intent of the mandatory PUD requirement was to encourage the maximum compatibility for development within the racetrack district area and to provide greater City control over the development review process. The mandatory PUD requirement was adopted at a time when the City was experiencing a tremendous number of requests for development near the racetrack. Since 1986, the number of proposed projects adjacent to the racetrack has reduced significantly. A large amount of vacant land still exists around the racetrack. The potential for significant commercial development still exists, but likely will not be near the scale as originally expected. Planning for the appropriate land use compatibilities and traffic control are two of the primary concerns for this area. Scott County Environmental Health has reviewed the proposal and commented that they did not have any environmental concerns. However, as a separate issue, they continue to recommend that the City try to convince the Minnesota Pollution Control Agency to conduct an air quality study in the Shakopee Valley area, especially in the industrial park. They stated that this proposed residential development would be affected by the periodic air inversions which occur within the area. Their comments have been attached to this report. There are special assessments against this property which have been deferred through the Green Acres law. The total pay off amount for 1993 for parcel no. 27-905017-0 is $11,488. 68, and for parcel no. 27-906028-0 is $27, 159. 25. When property in the Green Acres program is sold for development, the deferred special assessment installations become payable with interest. FINDINGS: Section 11. 04, Subd. 7 of the City Code states that amendments changing the boundaries or regulations of any existing district shall not be issued indiscriminately, but shall be based on findings or criteria including, but not limited, the criteria listed below: Criteria #1 The original zoning ordinance was in error. Finding #1 The zoning ordinance has not been found to be in error. The intent of the Multi-family Zoning District is clear. Criteria #2 Significant changes in community goals and policies have taken place. Finding #2 The goals and policies for the Multi-family Zoning District within the City of Shakopee have not 4 changed. Multi-family residential land uses and a public park site continue to be the recommended land uses for the subject site. Criteria #3 Significant changes in City-wide or neighborhood development patterns have occurred. Finding #3 The Planning Commission did not find that significant changes have occurred in the City's development patterns which would justify the proposed rezoning. Criteria #4 The amendment is necessary to implement the Comprehensive Plan's growth management program. Finding #4 The rezoning of this parcel from R-4 to R-2 would be in conflict with the Comprehensive Plan's growth management program. ALTERNATIVES: 1. Deny the request to rezone 68 of the 84 . 5 acres of land that is currently zoned Multi-family Residential (R-4) to Urban Residential (R-2) , and deny the request for the deletion of the mandatory PUD requirement for the 84 . 5 acre site. 2 . Approve the request to rezone 68 of the 84 . 5 acres of land that is currently zoned Multi-family Residential (R-4) to Urban Residential (R-2) , and approve the request for the deletion of the mandatory PUD requirement for the 84 . 5 acre site. 3 . Table the decision to allow for the applicant and/or staff to provide additional information. PLANNING COMMISSION RECOMMENDATION: The Planning Commission has recommended Alternative No. 1, to deny the request for rezoning from R-4 to R-2 , and to deny the request for the deletion of the mandatory PUD requirement for the 84 . 5 acre site. ACTION REOUESTED: Offer a motion to direct staff to prepare the appropriate ordinance to rezone 68 acres of the subject site from Multi-family Residential (R-4) to Urban Residential, and to delete the mandatory PUD requirement for the 84 . 5 acres site, and move its approval. (Approval of this motion would require an affirmative vote of 4/5 of the City Council. 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W :� m \ \` ice_ 1 —•• - • 1I = 11 - .5 y �..� �Q 1 a �orn..7 r,d,l a �.-- 1 .o r�W • • - 11 �J \\\ 00rOci 1 S, �:I L- -- \\`--J ) 1 ter ►_ _ ::�I_. _' I I °' II Y I _ p I 1 _ �I 1 m • I m �t1. .1-, lt.,. y 1�----��-J 1� m = _ I (= 1;1 --_-_1-1\-----0`, _ aZ= )i �(� Irl / " m I \ \ 1� 1 rI rE i l W it 1��A-� F - = m J 11 I N��1 " - µ • 11 • no - -;j . - ^ UU O iJ �\ \\1 - - . II / \\\ \ II / • `\\ \\ .� a • \N\ N , ; ...- o-- iI / vm v - \ \ \-\` ,,,„= l-•..i-c. 1 o a o .\\ \\\ \ m \\\��i LL• L U \.• c 9 a .... ' - N2 = = � iL - UUuu e E�IBIT D:_. PRAIRIE v QFND A Mixed Residential Development Project Summary • Sienna Corporation and the Estate of Lorraine Lenzmeier are requesting a change in zoning for approximately 68 acres of land from R-4 to R-2. The parcel in questions lies south of 4th Avenue, The Knights of Columbus Hall, and Valley Cemetery; east and north of the Upper Valley Drainageway; and approximately 'h mile west of Canterbury Downs. The site is presently zoned R-4. The proposed project, Prairie View, will consist of 142 single family lots on approximately 55 acres, 280 multi-family units on approximately 14.4 acres, and approximately 8.9 acres of dedicated parkland. Additionally, there is an easement on approximately 6.2 acres for the Upper Valley Drainageway and the future Upper Valley Drainageway Trail. At present the total 84.5± acres of the Estate of Lorraine Lenzmeier are zoned R-4, multi- family, which allows, one family, two family or multi-family buildings under 30' in height. The Prairie View development proposes to amend the zoning on approximately 68 of the 84.5 acres. The rezoned land would be adjacent to Light Industrial, the Knights of Columbus Hall and the Valley Cemetery to the north, R-4 zoned land to the east, the Upper Valley Drainageway with Light Industrial and R-4 to the south, and the Upper Valley Drainageway and R-4 to the west. There are four basic criteria for granting zoning amendments in the City of Shakopee, although there may be others, the four are as follows: 1. The original Zoning Ordinance is in error. 2. Significant changes in community goals and policies have taken place., 3. Significant changes in City-wide or neighborhood development patterns have occurred. 4. Implementing the Comprehensive Plan's growth management program. Regarding criteria number one, one could not say the original zoning ordinance is in error; rather that over time criteria for different land uses change. For example, many cities zoned large parcels of land for a commercial use, however the change in shopping patterns and transportation made many of these commercial corners unsalable or undevelopable. Factors such as financing, real estate taxes, market area, and changes in shopping patterns render some of these commercial sites unmarketable. This can happen to any zoning district whether it be residential, commercial, or business. Responding to criteria number two, changing the zoning on the 68 acres does not indicate or require any significant changes in community goals or policies. City goals are to provide a variety of housing stock for its residents. The proposal calls for 280 multi-family rental units which responds to a certain segment of the population, and 142 single family lots which will sell in the mid-twenties providing an opportunity for home ownership and :.:...�•-..mss.::.._--__�... _..:,.._..>.. _:«_•... . ... . ... r ..-- -. ,. ._ .. � affordable housing. This proposal achieves these community goals. Single family, doubles, townhouses, or rental apartments are all permitted uses in the R-4 zone. It is at the direction of the City that a zone change is being requested for the single family area. 1 Criteria number three refers to significant changes in City-wide or neighborhood development patterns. This area of Shakopee certainly is in the midst of changes with the closing of Canterbury Downs and its effect on adjacent properties, along with construction on the Shakopee Bypass. This proposal would change a portion of R-4 land to R-2 and suggest additional R-4 be added east to the west side of the future extension of Shenandoah Drive (which is presently RTD). Sienna would additionally recommend the southwest corner of 4th Avenue and Shenandoah Drive be rezoned to B-2 from RTD. This area is presently in transition with City Staff studying it for recommended changes. There will be zoning changes in the future in this area specifically because of the Canterbury Downs situation. Prairie View will be an integral part of these changes. Regarding the fourth criteria, the Comprehensive Plan's growth management program will not be affected. Land use Goal #7 is: "Create attractive new residential neighborhoods on the south and east fringes of the community." The proposed subdivision is on the east fringe of the community. Additionally, the Housing Plan portion of the Comprehensive Plan states "the primary focus of the Shakopee Housing Plan will be on promoting and allowing builders to respond to the perceived needs of the local market." The Lenzmeier parcel consists of approximately 84.5 acres and is zoned R-4. If this 84.5 acres were developed as multi-family it could support 1,690 units, certainly a supply that would take many years to satisfy. However, there is a strong demand for home ownership in the Shakopee area that is here today and will also be here for many years. Of course affordability, financing, and the status of the economy will effect this. Additionally, the demand for multi-family rental units has decreased and economically most projects are not viable. The Lenzmeier property has been on the market for 2+ years, but because of the largeness of the site and the economics of multi-family development, they have been unable to sell it. Sienna Corporation's proposal accomplishes seven goals which are as follows: 1. Allows the Lenzmeier's to sell their property and clear up the Estate of Lorraine Lenzmeier. 2. Retains approximately 14.4 acres of R-4 land representing 280 units of multi- family housing. 3. Provides for 142 single family lots which will convert to 142 affordable housing units for the City of Shakopee. 4. Achieves Land Use Goal #7 by creating an attractive new residential neighborhood on the east fringe of the community. 5. Provide approximately 8.9 acres of parkland for the community and area, and also helps accelerate the timing of the Upper Valley Drainageway Trail. 6. Proposes recommended changes in zoning districts on adjacent land to the east. 7. Initiates the construction of Viking Drive which is planned for in the City's Transportation Plan. The proposal before the Planning Commission and City Council of Shakopee is well planned and will provide the Lenzmeiers, the City of Shakopee, Sienna Corporation and the project's future residents a quality neighborhood that will be an asset to the Community. • EXHIBIT E I- i1•! cct 1 ,i\ ' i i 1I I ( N i • .• m § / i I /* it / it .11.. • ;` r • 1 N t, 1 i • I 4.,\ \ \ 1 i co :- cc . 7.1-4\—1 . (../ 11 \ , i ! i .. z it • 7,. . ic„, ; 1 \i N i z< - !i .V rs". - y /• : z `• : 0 1 , i 1 Cot-- i <% -——— ./�-_. W i ; t�csi�Ltsa••._a_.......,.....—.�' I • Y ..:-_4:_- �c-7• ; 1 1/ t---1.--":"1) 1—..-: I.- .r o ' • I I ^ I c• L CC0 - 11 • \. /P" 4. ... --f---1 .---"--.- a...‘,., /- •Ty ' _. \ : r— 1 . s'•4 �At A- } LL L . . 'd' N .. _ � � r -ire , 1 \_-_ . IC -00 1.....„.-1t : , iii;-, TI..' A ____. - 4t--,;•-,,f. - — \ - , _., . _ - ____--i , , _ - ./.; i •,,,„, ,„,„„,,,,, /, ! . , . • , _ • ... . • ,� - ��—� • •S-----21.t=--24°'j i� /,.,tet�, I L'! �Y.-.I.2 .(` !. J� 1! 0 EXHIBIT G SCOTT COUNTY la . ENVIRONMENTAL HEALTH COURTHOUSE A102 428 S. Holmes St. SHAKOPEE, MN 55379-1393 (612)496-8177 MEMORANDUM DATE: August 25, 1993 TO: Terrie Sandbeck, Asst. Planner, Shakopee i?' FROM: Al Frechette, Env. Hlth. Mngr. SUBJECT: Comments on Sienna Corporation proposed residential development on the south side of east 4th Ave., south and west of K.C. Hall: Thank you for the opportunity to comment on Shakopee's development proposals that may have some impact on the environment and public health. I have reviewed this proposal and did not see any obvious environmental concerns. We also checked our computerized data files for dumps, spills, hazardous waste generators etc., and did not find anything in our records within the proposed site. From a general perspective, this area is very sensitive to ground water contamination as there is very little soil cover over the limestone. Construction activities resulting in spills should be reported immediately to the Minnesota Pollution Control Agency. On another general issue, I have, on several occasions, recommended that Shakopee try to convince the Minnesota Pollution Control Agency to conduct an air quality study in the Shakopee Valley area, especially the industrial park. The purpose of that study would be to identify sources of air emissions, quantify them and develop an air impact model to help predict air inversion problems. This would provide the Shakopee Planning Commission with valuable information to evaluate future development proposals, and for zoning. As you know, there are several industries in the valley who generate air emissions. This proposed residential development will also contribute to the air quality problem to the extent that wood burning stoves and fire places, furnaces and automobiles do, however, likely more problematic will be the increased number of potentially impacted citizens who will be living in this area which is subject to periodic air inversions. I am not suggesting in any way that this issue be considered a negative factor for this particular residential development. However, I am using this opportunity to again suggest this study be conducted. 1 An Equal Opportunity IAffirmative Action Employer • I • V I 1 • ,1 i� L.J1tt I.Iv./.-ILI.11.11 rs , I� ^I I: '1 , -r " 1 1. ill , _:7 ,•Cl ,.-, �I-'•111\•� 111 hi '11 i. ` ma�i a;- -�1\ El I; '.,, ,)• I '1 i5, i ,'./. ul ��� /� \N . 4.1' -.I �1� Cll4ff 'i.1 I- ©I 5.‘].``ti —1� jI i......: if ,„iii �. ii • 4►/ p Ha _;iij;.l - "' d0�• • ••• _ y ; III ii[.:•{Fs 4 P 1-j1 all• F i 211 ElilY.. 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'S..' 1 �I r1' ,,II 1 • N ` ,r S99/ ' r ; ,- ,X iA SII/•„ -" )OO 1- 1, tUU 1 - I r 1111. ..Q.� /• I— _,_ `,\ ••'�yI. \•r,�\ i I.I I,.. i /' III,i Q.,' /��(s' — CA .! • 1 • \.41 I , I - ••I ,, ,' ' IIr II tl 0 ` 1 , I , ,,111 Oo •11:1 maiM SIENNA Suite 608.4940 Viking Drive•Minneapolis,Minnesota 55435 612-835-2808 CORPORATION October 13, 1993 The Honorable Mayor Gary Laurent and Members of the City Council City of Shakopee 129 E. 1st Avenue Shakopee, MN 55379 RE: Proposed Prairie Bend (Lenzmeier Property) Dear Mayor Laurent and Members of the City Council: At its meeting on October 7th, the Planning Commission denied the joint request of the Lenzmeier family and Sienna Corporation to rezone portions of the above 84.5 acre parcel from R-4 Multi Residential to R-2 Urban Residential and to delete the mandatory P.U.D. requirement. We are appealing the decision of the Planning Commission and requesting reconsideration by the Council for the following reasons: 1. There has been no demonstration to us that the removal of 68 acres of R-4 will have any impact on Shakopee's long term R-4 zoning needs. At the 1992 rate of 28 multi family home units construction in Shakopee, our site alone represents many year's supply of land for the entire City of Shakopee's multi-family needs. We believe the Lenzmeier property, if partially developed into single family, will not have any long term impact on multi- family land nor force a multi-family site shortage. 2. The reasoning behind the mandatory P.U.D. ordinance to control potential land rush - inspired second-rate developments has changed with the closure of the track and the dramatic changes to both the national and local real estate markets since 1986. Rezoning must be able to adjust to such changes in need, markets and development pace, particularly when they bring a positive effect on the City. 3. Our proposal to bring 142 single-family detached homesites to the Lenzmeier property meets both the social and market-driven goals of providing new home ownership at reasonable prices for the young families of the community and offering quality rental housing for those who choose not to own, all in a convenient location. Certainly, this objective meets the stated City Land Use Goal #7 of creating attractive new residential neighborhoods. Planners • Developers • Contractors The Honorable Mayor Gary Laurent and Members of the City Council October 13, 1993 Page Two 4. A major reason for using the Planned Unit Development concept of platting is to preserve and protect significant natural features of the site by the adjustments of normal platting requirements. Frankly, this site is devoid of significant natural features and, in our opinion, does not require the P.U.D. Rather, it is our goal to take this property and create an attractive, highly liveable neighborhood which accepts both multi and single family housing. We strongly believe that this can be done under the R-2 zoning requirements. 5. The Lenzmeier property's desirability for multi-family housing has been greatly diminished by the future location of the 169 Bypass and the likely loss of high visibility traffic near this property. 6. In summary, Sienna Corporation and the Lenzmeier family are offering the opportunity to the City to bring an attractive and needed new neighborhood to the City which will offer both the chance for families to achieve the dream of home ownership while still offering 280 units of quality multi-family living. All of this can be achieved by a combination of R-2 and R-4 P.U.D. zoning without either a sacrifice or a lowering of standards by the City. Lastly, the Planning Department review of our preliminary plat raised some valid issues which we believe can be resolved in future meetings between City staff and our designers. However, in order for this neighborhood to proceed, it must have a recision of the mandatory P.U.D. and a rezoning of 68 of its 84.5 acres to R-2. We respectfully request your close review of our request and urge a granting of a reasonable approach to a quality addition to the City of Shakopee. I will be in attendance at your meeting of October 19th and look forward to answering any of your questions. Thank you for your attention and consideration. Sincerely, SIENNA CORPORATION i API --141101,, f✓ J. I e: ston 'r•. - anager JWJ/lv cc: Barry Stock, City of Shakopee Lindberg Ekola, City of Shakopee Terrie Sandbeck, City of Shakopee John Lenzmeier smorik Suite 608 4940 Viking Drive•Minneapolis,Minnesota 55435.612-835-2808 CORPORATION October 13, 1993 The Honorable Mayor Gary Laurent and Members of the City Council City of Shakopee 129 E. 1st Avenue Shakopee, MN 55379 RE: Proposed Prairie Bend (Lenzmeier Property) Dear Mayor Laurent and Members of the City Council: At its meeting on October 7th, the Planning Commission denied the joint request of the Lenzmeier family and Sienna Corporation to rezone portions of the above 84.5 acre parcel from R-4 Multi Residential to R-2 Urban Residential and to delete the mandatory P.U.D. requirement. We are appealing the decision of the Planning Commission and requesting reconsideration by the Council for the following reasons: 1. There has been no demonstration to us that the removal of 68 acres of R-4 will have any impact on Shakopee's long term R-4 zoning needs. At the 1992 rate of 28 multi family home units construction in Shakopee, our site alone represents many year's supply of land for the entire City of Shakopee's multi-family needs. We believe the Lenzmeier property, if partially developed into single family, will not have any long term impact on multi- family land nor force a multi-family site shortage. 2. The reasoning behind the mandatory P.U.D. ordinance to control potential land rush - inspired second-rate developments has changed with the closure of the track and the dramatic changes to both the national and local real estate markets since 1986. Rezoning must be able to adjust to such changes in need, markets and development pace, particularly when they bring a positive effect on the City. 3. Our proposal to bring 142 single-family detached homesites to the Lenzmeier property meets both the social and market-driven goals of providing new home ownership at reasonable prices for the young families of the community and offering quality rental housing for those who choose not to own, all in a convenient location. Certainly, this objective meets the stated City Land Use Goal #7 of creating attractive new residential neighborhoods. Planners • Developers • Contractors The Honorable Mayor Gary Laurent and Members of the City Council October 13, 1993 Page Two 4. A major reason for using the Planned Unit Development concept of platting is to preserve and protect significant natural features of the site by the adjustments of normal platting requirements. Frankly, this site is devoid of significant natural features and, in our opinion, does not require the P.U.D. Rather, it is our goal to take this property and create an attractive, highly liveable neighborhood which accepts both multi and single family housing. We strongly believe that this can be done under the R-2 zoning requirements. 5. The Lenzmeier property's desirability for multi-family housing has been greatly diminished by the future location of the 169 Bypass and the likely loss of high visibility traffic near this property. 6. In summary, Sienna Corporation and the Lenzmeier family are offering the opportunity to the City to bring an attractive and needed new neighborhood to the City which will offer both the chance for families to achieve the dream of home ownership while still offering 280 units of quality multi-family living. All of this can be achieved by a combination of R-2 and R-4 P.U.D. zoning without either a sacrifice or a lowering of standards by the City. Lastly, the Planning Department review of our preliminary plat raised some valid issues which we believe can be resolved in future meetings between City staff and our designers. However, in order for this neighborhood to proceed, it must have a recision of the mandatory P.U.D. and a rezoning of 68 of its 84.5 acres to R-2. We respectfully request your close review of our request and urge a granting of a reasonable approach to a quality addition to the City of Shakopee. I will be in attendance at your meeting of October 19th and look forward to answering any of your questions. Thank you for your attention and consideration. Sincerely, SIENNA CORPORATION ir ' 4111.0.- •• i'ke r..4111°.r;�' ton anager JWJ/lv cc: Barry Stock, City of Shakopee Lindberg Ekola, City of Shakopee Terrie Sandbeck, City of Shakopee John Lenzmeier ha . CONSENT MEMO TO: Dennis R. Kraft, City Administrator FROM: Lindberg S. Ekola, City Planner RE: Official Mapping, Water Storage Site DATE: October 13, 1993 INTRODUCTION: The Shakopee Public Utilities Commission (SPUC) has requested that the Shakopee City Council initiate the official mapping process for a future water storage site in eastern Shakopee. BACKGROUND: An official map is one of the primary tools to carrying out a comprehensive plan. The primary purpose of the official map is to forestall the construction of buildings and other private improvements on land designated as future streets, parks or other public facilities. It is designed to save the public expense of paying for improvements or currently vacant property need for future public purposes. Adoption of the map does not create public ownership in the land or give the City any easement right to the land. It does insure that the City will have the right to purchase unimproved property, rather than more expensive improved property. The Municipal Planning Act authorizes cities to adopt an official map after a major thoroughfare plan and a community facilities plan have been adopted. Both the major thoroughfare plan and a community facilities plan have been adopted as a part of the City's Comprehensive Plan. DISCUSSION: Attached is the memo from the SPUC Utilities Manager which requests the initiation of the official mapping process for the water storage facility site. The procedure for official mapping requires the City Council to direct the Planning Commission to review the request and provide the City Council with a recommendation. SPUC has recently completed the update of the Comprehensive Water Plan. This plan recommends the construction of a water storage facility near the County Road 16 and the County Road 18 intersection. The attached map depicts the general site location of the proposed facility. ALTERNATIVES: 1. Direct the Planning Commission to review the proposed official map and forward a recommendation to the City Council. 2 . Do not direct the Planning Commission to review the proposed official map. STAFF RECOMMENDATION: Staff recommends alternative No. 1. ACTION REQUESTED: Offer a motion to direct the Planning Commission to review the proposed official map and forward a recommendation to the City Council, and move its adoption. LSE/jms attachment TO: Lindberg Ekcia , City Planner Lou van fOUL , .Fu- Utilities rlanauer " RE : Official Mapping, rva t e rt Ower Site LATE . 9/31 /93 L_ l 1 •• of L intent to site I believe you are generally aware the intent a water tower on the far east side of the city . .a mh L of specificsite was requested some time bac! 11!C ClcVulblLiG11 a �j / butL l it k e L_•.. L am _ then_ but apparently lacked some lieL:eb�ary in oLii""iation; and then there was a change in the appreal:ll to initiate a "mapping" process first , With Lue actual acquisition to follow. this I believe you and I had a brief phone conversation on 1b ill April , but there was no written contact until now. My tic L____ LL_ b LL_ J My files on this particular issue Havegotten a bit scattered, so Lreconstructthethis I believe the following to try to record on y contains L he relevant history:isLory , - Schoell and Madson, SFUC ' s consulting engineer, identified 4 acceptable sites in a letter eLLeL Gr 5/20/92 . - The Utilities Commission concurred with the analysis which snowed 1t.Site #4" as the best site . They directed me to get the acquisition process started. The acquisition was discussed at a Joint Council/Commission meeting on 7/13/92 , with the consensus that city staff would be asked to proceed with the actual acquisition pruu bb . - This was done in my memo to Dennis Kraft and Karen Marty on 7/22/72 which included a topographic map indicating the preferred site as well as the alternates . - Unfortunately it turned out that there was insufficient information to start the process because that topographic L- _ map did not contain any specific land survey information. - Before we had a chance to get the land survey information, the Utilities Commission was advised that it might be better to take things one step at a time, and that the official "Mapping" pruuebb was the next step. - My notes of our phone discussion in April indicates a need to have a legal description of the area of interest , and the identification of specific sites to follow after the official map is established. (continued) �ci �o • G . C13 (continued) - Recently a request for a PUD was filed for land just to the north of some of the alternate sites for the watertower. While that PUD does not interfere with the watertower, it does serve to indicate the need to act soon on the mapping process . Please accept this memo as a request to initiate the official "Mapping process for the watertower site on the east side of Shakopee on land described as follows ; - All in Section 13 , T 115 , R22 , lying east of the present alignment of County Road 10 , and south of the N. 1 , 320 . 00 feet of the SE 1/4 of Section 13, T 115 , RR 22, Scott County. This is the area we are requesting be Officially Mapped for watertower siting. I have not re-sent the topographic map showing the actual sites probable for the watertower because my understanding is that this will be a separate step to be taken after the Mapping process is complete. If more information, filing fee, or anything else is needed please let me know. I I , 13 \ I _ _ ___ ___ I_ ____ ____ _ _0 W -J W A > 1 4 Q C.R. 16 ------__- 1 Subject Property MCGUIRE CT. 1 _ 1 _} MCGUI - - - _ CIR, O06- SUNSE r DOUR r V DRIVE y co \ �1 o' � SP 1 J Gc,' D M 16 4 ti CONSENT Ili MEMO TO: Dennis Kraft, City Administrator FROM: Dave Hutton, Public Works Director SUBJECT: McKenna Road DATE: October 13, 1993 INTRODUCTION: Staff has received the attached correspondence from the Mdewakantaon Sioux Community regarding the status of McKenna Road. City Council direction is desired. BACKGROUND: On February 16, 1993 the City Council ordered a feasibility report for improving McKenna Road. This feasibility report was initiated by a request from the Mdewakanton Sioux Community (M.S.C.) and an offer from them to pay for 60% of the improvement costs. The feasibility report has estimated the project costs to be as follows: Construction Costs $190,000.00 Plus 25% Engr./Admin. Fees $ 47,500.00 Total Cost Estimate $237,500.00 The feasibility report recommended using a combination of all available funding sources, including the Standard Special Assessment Policy, the M.S.C. contribution and State Aid Funds. Using the Special Assessment Policy approximately $100,000.00 of the project costs was proposed to be assessed at a rate of$10.00 per front foot. The City Council held a public hearing on May 4, 1993 to consider the improvements. At the public hearing the M.S.C. withdrew their offer to fund a portion of this road due to the fact that their transportation study and comprehensive plan regarding the proposed Community Center had not been completed. The M.S.C. has now completed their comprehensive planning and have budgeted the upgrading of McKenna Road in their 1994 Capital Improvement Budget. They are now proposing to pay for 100% of the construction costs if the City absorbs all the engineering and administrative costs. Attached is a letter from Mr. William Rudnicki, Tribal Administrator, outlining the M.S.C.'s position in this regard. Mr. Rudnicki is suggesting that if the City accepts their offer, there would be no need to hold a public hearing as there would be no assessments. ALTERNATIVES: 1. Accept the offer and fund this project without any special assessments. 2. Reject the offer. 3. Accept the offer, but apply the Special Assessment Policy anyway. 4. Counteroffer requesting that the M.S.C. pay all of the costs, including the engineering/administrative costs. RECOMMENDATION: This street is on the Municipal State Aid System. Therefore, the City will receive State Aid Funds for 100% of the total project costs. Based on the estimated costs, the M.S.C. would contribute an additional $190,000.00 above and beyond what the City will receive in State Aid Funds, which the City Council is historically used for other non-assessed Capital Improvement Projects. Therefore, the City's engineering and administrative costs will more than be paid for. Staff would proposed to design this project in-house, which would keep these costs as low as possible. Based on the M.S.C. offer, staff does not feel that the City Council should assess any of this project. The estimated assessments were quite high because of the large landowner adjacent to this road and may have been difficult to show benefit as defined by State law. If the City Council considers the M.S.C.'s offer acceptable, staff should be directed to prepare an agreement covering the payment for this project and discuss with the M.S.C. the method of payment proposed. ACTION REQUESTED: 1. Move to accept the offer from the Mdewakanaton Sioux Community to pay for the construction cost to improve McKenna Road and direct staff to enter into disucssions with the M.S.C. on agreements covering the method of payment. 2. Offer Resolution No. 3882, A Resolution Ordering an Improvement and the Preparation of Plans and Specifications for McKenna Road, from County Road 16 to South Corporate Limits, Project No. 1994-2 and move its adoption. DEH/pmp MCKENNA RESOLUTION NO. 3882 A Resolution Ordering An Improvement And The Preparation Of Plans And Specifications For McKenna Road, Between County Road 16 And The South Corporate Limits Project No. 1994-2 WHEREAS, the City Council desires to upgrade McKenna Road by adding pavement; and WHEREAS, the Mdewakanton Sioux Community has proposed to pay for 100% of the construction costs for this project; and WHEREAS, the City Council has determined that no Special Assessments will be used for used this project. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. That the improvement is ordered as hereinafter described: Upgrading McKenna Road, between County Road 16 and the South Corporate Limits by pavement, gravel shoulders and any necessary drainage improvements. 2. David E. Hutton, Public Works Director is hereby designated as the engineer for this improvement,and shall prepare plans and specifications for the making of such improvement. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of , 1993. Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form: City Attorney SHAKOPEE MDEWAKANTON SIOUX COMMUNITY 2330 Sioux Trail N.W., Prior Lake, Minnesota 55372 Tribal Office (612) 445-8900 �� �� N TONS� FAX: (612) 445-8906 �Q >� OFFICERS STANLEY R. CROOKS Chairperson • i %• KENNETH ANDERSON ?\ / Vice Chairperson DARLENE MATTA • Secretary/Treasurer September 28 , 1993 City of Shakopee c/o Dave Hutton 129 S . Holmes St . Shakopee, MN 55379 Subject : McKenna Road Upgrade Shakopee, MN. Dear Dave : The General Council of the Shakopee Mdewakanton Sioux Community recently approved the Capital Improvement Project and Budget for Fiscal Year 1994 of which the pavement of McKenna Road was one of these projects. As mentioned on our phone conversation of September 28, 1993, we would like to proceed with Construction of the project during construction year 1994 . The Community will fund the cost of construction, on the City' s part, we would expect that the engineering, surveying, inspection, contract administration, bidding, right of way acquisition, and any environmental and legal requirements be completed through the City' s staff. My goal is to eliminate the need for a public hearing on this project . Questions concerning this project, please contact me at 496-6145 . Sincerely, William M. Rudnicki Tribal Administrator WMR/j bm cc : Tribal Business Council Dennis Kraft O1JSENT //, TO: Dennis Kraft, City Administrator FROM: Gregg Voxland, Finance Director RE: Insurance Coverage For Mechanics Tools DATE: August 16, 1993 Introduction The Public Works Director has inquired whether the City could insure the personal property tools of the assistant mechanic. Background The assistant mechanic is required to provide his own tools. I understand that it is common practice in the trade for the mechanic to supply his own tools and that the practice of the City supplying the tools for the mechanic is not the usual practice. It is also common practice for the employer to provide insurance the mechanics tools. The City could put on the schedule "mechanics tools" and have coverage under the insurance policy. Cost would be $100 for $20,000 worth of tools. The deductible is $1,000.00. The questions that must be answered by City Council is whether it wants to provide coverage for employees personal property and how will losses within the deductible will be handled. A secondary question arises as to whether the City will continue to supply the tools to one employee and not to another. Alternatives 1. Status Quo - no insurance for personal property and City supply tools to mechanic but not the assistant mechanic. 2. City supply tools to assistant mechanic. 3. City discontinue supplying tools to mechanic. 4. City provide insurance coverage for assistant mechanics tools and provide replacements for losses under $1,000. 5. City not provide insurance but pay for all replacement tools for assistant mechanic. 6. City provide insurance but not cover losses under the deductible for the assistant mechanic. Recommendation Staff recommendation is that if the City is following common practice of having the mechanic supply his own tools then the City should provide insurance. Since the Council has decided on $1,000 deductible, the City should provide replacement tools for replacements under the $1,000 deductible. If Council does not wish to provide insurance/replacement tools, then consideration should be given to providing a set of tools and tool box to the assistant mechanic which does not need to be as complete a set as is provided for the City Mechanic. Cost estimate by Public Works is $3,000 to $5,000. This would treat both mechanics equitably. Action Requested Move to provide insurance for the Assistant Mechanic's tool set and to replace lost or worn out tools within the insurance deductible. /1c) CONSENT Attached is a print out showing the division budget status as of 10/15/93 for 1993 based on data entered as of that date. There appears to be a few divisions running close to their budget. CITY OF SHAKOPEE EXPENSES BY DEPARTMENT CURRENT YEAR ANNUAL MONTH TO PERCENT DEPT DEPT NAME BUDGET ACTUAL DATE EXPENDED 00 N/A 0 0 202,662 0 11 MAYOR & COUNCIL 69,140 178 45,352 66 12 CITY ADMINISTRATOR 195,110 4,961 139,667 72 13 CITY CLERK 114,510 3,503 84,347 74 15 FINANCE 272,620 7,382 195,894 72 16 LEGAL COUNSEL 158,120 5,276 112,335 71 17 PLANNING 357,940 7,142 228,457 64 18 GENERAL GOVERNMENT BUILDINGS 116,450 5,269 88,766 76 31 POLICE 1,413,630 42,056 1,058,786 75 32 FIRE 805,820 17,658 196,813 24 33 INSPECTION-BLDG-PLMBG-HTG 165,804 5,019 112,877 68 41 ENGINEERING 342,720 9,849 209,882 61 42 STREET MAINTENANCE 688,710 13,193 442,604 64 44 SHOP 149,420 5,192 77,498 52 46 PARK MAINTENANCE 318,770 13,269 235,306 74 48 REFUSE COLLECTION 521,389 40,993 377,874 72 61 POOL 150,300 3,654 135,283 90 64 RECREATION 214,011 6,036 148,885 70 91 UNALLOCATED 51,380 283 303,357 590 TOTAL GENERAL FUND 6,105,844 190,913 4,396,645 72 17 PLANNING 360,860 14,274 239,935 66 TOTAL TRANSIT 360,860 14,274 239,935 66 12 CITY ADMINISTRATOR 64,870 1,121 39,221 60 TOTAL HRA 64,870 1,121 39,221 60 00 N/A 889,400 0 0 0 889 400 0 0 0 TOTAL CAPITAL EQUIP REVOLVING FUND o== 4 a a a s a w H a H 0 0 0 0 0 0 0 0 0 0 0 0 0 d H H H H H H H H H d 00 0 P4 N z 0 P4 w en 01 0 P . 1 .-1 r1 .-I r1 .-1 r1 r1 .-1 .-1 .-r .1 N H 0 O 0 .7 t t t t t t t t t t t t 0 .-1 .-1 r1 .-1 .-1 r1 .-1 .-1 .-4 .1 . 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Z d Z 0 H H A a H `3 Cl) H Z N � � H 0 H 0 t-4 PG 4OA za W g g c,„ 0 ON Cr d H d H Cl) Cl) (7 H x C. v 0 .-a 0 .-4 .-1 C/) C/) L4 A GLI O .-d 7 In O .--I ,n 7 ,n '0 N O O O 0 O 0.1 cv CA M Ch CA e--1 M •-.1 M 7 ZOO .-1 .-d sr N 7 .7 -4 7 7 7 N N CO O CO U 14 H 4t 4t 4t * 4t 4t 4t 4t 4t 4t 4t 4t 4t 4t 4t U Z A A A A A 0 A A A A A A A A A Z Z z z Z z Z z z Z Z Z Z Z z 0 W W W w W W 44 4. FA*. Lai+ t0:+ 1A 4+ fp:. fr. *-11 e� MEMO TO: Honorable Mayor and Council FROM: Dennis R. Kraft, City Administrator RE: AMM Legislative Policies - 1994 DATE: October 14, 1993 INTRODUCTION: Copies of the new AMM Draft Legislative Policies were recently distributed to each Council member. The City Council should formulate a position on these policies so that the Council representatives at the AMM Policy Meeting can represent the will of the Council . BACKGROUND: In the past the City Council has gone over the AMM Policies and has decided, typically by affirmative vote which policies they agree with and likewise by negative vote which policies they have not agreed with. This can be a very time consuming process, therefore I would suggest that the City Council deal with these policies on an exception basis, i .e . identify only those policies or groups of policies that the City Council disagrees with. If past meetings are any indication of what might happen at the upcoming meeting there are typically not very many policies that are highly controversial and which require extensive discussion and formal votes on a city by city basis. RECOMMENDATION: It is recommended that the City Council review the AMM Policies; identify those areas where there are disagreements, if any; identify the nature of the disagreements; formally adopt the policies as either originally presented or as amended, and then direct the City' s representatives to vote the will of the Council at the AMM Policy Meeting. ACTION REQUESTED: Move to adopt the AMM Legislative Policies for 1994 as presented (or in the alternative "as amended" ) . , .......... BULLETIN association of metropolitan municipalities October 1, 1993 AMM MEMBER LOCAL OFFICIALS: Attached are the recommendations for the 1994 Legislative Policy program from the AMM's five standing committees. Please review the policies with your Council for action at the Membership meeting scheduled for Thursday evening November 4 at the Ballroom at the Ramada Conference Center (McGuires) in Arden Hills. A notice on the specifics of the meeting will follow. In order to give you the maximum time possible to review these policies, they are being distributed prior to AMM Board review. Any changes made by the Board at their October 14 meeting will be sent to you in a subsequent mailing. 4110' WhWhat Do You Thin . Please review the policies and list your top five priorities by policy number. Your participation is important because the policy priorities help determine Sincerely, how staff time and resources are allocated. Dave Childs President, AMM TOP POLICY PRIORITIES, BY POLICY NUMBER 1. 4 . 2 . 5. 3 . City Name (Optional) . Please bring your response to the Membership meeting on November 4 . _ If you are unable to attend, please mail your response to Roger Peterson, AMM, 3490 Lexington Ave. , No. , St. Paul , MN. 55126 --it i\ 3490 lexington avenue north,st.paul,minnesota 55126(612)490-3301 11 1 1 1 1 11 1 1 1 1 1 1 1 1 11 1 1 1 1 1 11 , 1 1 1 1 1 11 _ - IMP- - -41111110 4101110- -0111111. 411111P, - association of metropolitan - municipalities _ - = - - 4111W - 41111111110 - - POLICIES = AND - .. ANEW- 41111110. - -ow LEGISLATIVE PROPOSALS _ - - 1994 4. _ .., _ - 41111110. - 4411110 - - Proposed for AMM Membership consideration on November 4, 1993 - ..0. ..0► -ow - - - - 411110- - -411111110 411110. - THIS DOCUMENT PRINTED ON RECYCLED PAPER - - B I n p f ' 1 i I i I 111111111111111111111111 1111 3490 lexington avenue north, st. paul, minnesota 55126 (612) 490-3301 INDEX PART ONE MUNICIPAL REVENUES AND TAXATION PAGE NUMBER I. MUNICIPAL REVENUES 1 - 11 A. LEVY/VALUE LIMITS 1 1. Levy Limits 1 2 . Oppose Valuation Or Operation Freezes 1 B. MANDATED STATE AND FEDERAL PROGRAMS 1 C. LOCAL GOVERNMENT AID 2 1. Aid Formula Criteria 2 2 . Local Government Aid Formula 3 3 . LGA Growth 3 D. PROPERTY TAX 4 1. Homestead Class Rate Change 4 2 . Non-Governmental Tax Exempt Property 4 3 . State, County, City and Metropolitan Owned 4 Tax Exempt Property 4 . Property Tax Reform 5 E. GENERAL FISCAL IMPACT POLICIES 6 1. Fiscal Note Continuation 6 2 . Funding Shifts 6 3 . State Revenue Stability 7 4 . City Fund Balances 7 F. SALES TAX DEDICATION GUARANTEE 8 G. HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA) 9 1. HACA Continuation 9 -i- 2 . HACA Growth Factor 9 3 . Oppose HACA Conversion To School Aid 9 4 . HACA Buydown For Class Rate Changes 10 H. STATE IMPOSED FEE FOR SERVICE 10 I. FISCAL DISPARITY FUND DISTRIBUTION 10 PART TWO GENERAL LEGISLATION II. GENERAL LEGISLATION 12 - 19 A. OPPOSE REDUCTION OF AUTHORITY OR LOCAL CONTROL 12 B. TORT LIABILITY 12 C. DATA PRACTICES 13 1. Open Meetings And Data Practices 13 2 . Liquor License Application 14 3 . General Public Data 14 D. POLICE AND FIRE PENSION PROVISIONS 15 1. Amortization Aid 16 2 . Employee Contribution Amount 16 3 . Benefit Increases 16 4 . Assumption Changes 16 E. CONTRACTORS PERFORMANCE BONDS 16 F. CONCURRENT DETACHMENT AND ANNEXATION 16 G. 911 TELEPHONE TAX 18 H. MARKETS FOR RECYCLED MATERIAL 18 PART THREE -ii- HOUSING AND ECONOMIC DEVELOPMENT AND LAND USE III . HOUSING AND NEIGHBORHOODS 20 - 36 A. HOUSING AND NEIGHBORHOODS 20 1. Examine Local Requirements That Affect 20 Housing Costs 2 . Practices By Other Levels Of Government 21 Which Affect Housing Costs 3 . Mandatory Land Use Standards 21 4 . State Housing Policy 21 5. Local Housing Policy 22 6. Metropolitan Housing Policy 23 7 . Neighborhood Liveability 24 8 . State And/Or County Licensed Residential 27 Facilities (Group Homes) 9. Licensed Residential Facilities (Group 29 Homes) Inspections B. ECONOMIC DEVELOPMENT 29 1. Cities Re-development and 30 Economic Development Responsibilities 2 . Equal Treatment of Cities 31 3 . Tax Increment Financing 31 4 . Property Tax/Value Abatement Authority 32 5. Local Option for Development Organization 33 Structure 6. County Economic Development Authorities 34 (EDA's) -iii- 7 . Development of Polluted Lands 34 8. Building Permit Fee Surcharge 35 C. LAND USE PLANNING 35 PART FOUR METROPOLITAN AGENCIES IV. PHILOSOPHY WITH RESPECT TO METROPOLITAN 37 - 53 GOVERNMENTAL AGENCIES A. PURPOSE OF METROPOLITAN GOVERNMENTAL AGENCIES 37 B. CRITERIA FOR EXTENSION OF METROPOLITAN 37 AGENCIES AUTHORITIES C. STRUCTURES, PLANNING, IMPLEMENTATION AND 38 FUNDING OF METROPOLITAN SERVICES AND PROGRAMS 1. Policy Planning - Implementation 38 2 . Funding for Regionally Provided Services 38 3 . Regional Tax Rates and User Fees 39 D. COMPREHENSIVE PLANNING - LOCAL AND REGIONAL 39 INTERACTION E. COMBINED SEWERS - SEPARATION 40 F. METROPOLITAN COUNCIL BUDGET/WORK PROGRAM PROCESS 40 1. Budget Detail And Specificity 40 2 . Reliance on Property Taxes 41 3 . Program Evaluation 41 G. METROPOLITAN PARKS AND OPEN SPACE FUNDING 42 1. Operation and Maintenance Funding 42 2 . Regional Bonding For Regional Parks 42 -iv- H. WATER RESOURCE MANAGEMENT 43 1. Water Supply. 43 2 . Surface and Groundwater Water Management 44 3 . Regional Wastewater (Sewer) Treatment 45 System 4 . Water Testing Connection Fee 46 I. WASTE STREAM MANAGEMENT 46 1. Integrated Waste Stream Planning 47 2 . Hazardous and Dangerous Waste Management 48 3 . Metropolitan/County Responsibilities 49 4 . Local Solid Waste Management 50 Responsibilities 5. Funding 50 6. Organized Collection 51 7 . Host Cities and Cleanup Responsibilities 52 PART FIVE TRANSPORTATION V. TRANSPORTATION POLICY STATEMENT 54 - 65 A. STREET, BRIDGE AND HIGHWAY GENERAL FUNDING 55 B. METROPOLITAN TRANSIT SYSTEM GENERAL FUNDING 55 C. TRANSPORTATION SERVICES FUND 56 D. TRANSPORTATION (HIGHWAY AND TRANSIT) FUNDING 56 ALTERNATIVES E. HIGHWAY AND TRANSIT INTEGRATION PLANNING 57 F. HIGHWAY JURISDICTION REASSIGNMENT, TURNBACKS, 57 -v- AND FUNDING G. TRANSPORTATION UTILITY 58 H. '3C' TRANSPORTATION PLANNING PROCESS - ROLE 58 OF ELECTED OFFICIALS I. PRESERVATION OF RAILROAD RIGHT-OF-WAY 59 J. CITY SPEED LIMITS 59 K. TRANSPORTATION INCENTIVES/DISINCENTIVES 60 L. REGIONAL TRANSIT SYSTEM 60 M. MSA SCREENING COMMITTEE 61 N. METROPOLITAN TRANSPORTATION TAX 61 O. AIRPORT POLICY 62 P. BIKEWAY GRANTS PROGRAM 62 Q. OPTOUT 63 R. MSAS FUNDING FOR COMBINED CITY STREET 64 DEPARTMENTS PART SIX ENDORSEMENT POLICIES VI. ENDORSEMENT POLICIES 66 - 74 A. TAXATION HEARING AND NOTIFICATION LAW 66 B. STATE ADMINISTRATIVE COSTS 67 C. REFERENDUM LEVIES 67 D. COMPARABLE WORTH 68 E. LIQUOR ISSUES 69 F. PELRA 70 G. ANNEXATION 71 H. ECONOMIC DEVELOPMENT AUTHORITIES 72 -vi- I. WETLANDS CONSERVATION 72 J. MSA MILEAGE LIMIT 73 K. HIGHWAY DEFINITION - TRANSPORTATION FUNDING 73 PART SEVEN METROPOLITAN GOVERNANCE REORGANIZATION VII . METROPOLITAN GOVERNANCE REORGANIZATION 75 - 78 A. LEGISLATIVE REORGANIZATION OF METROPOLITAN 75 GOVERNANCE 1. Restructuring of Metropolitan Agencies 75 2 . Legislative Committee Structure for 76 Metro Issues Consideration 3 . Selection of Metropolitan Council/ 76 Metropolitan Agencies Members 4 . Regional Rail Authorities/Transit 77 B. RE-ENERGIZING THE METROPOLITAN COUNCIL 77 -vii- I MUNICIPAL REVENUES PAGE 1 THROUGH 11 LEGISLATIVE POLICIES 1994 I MUNICIPAL REVENUE AND TAXATION I-A LEVY/VALUE LIMITS A-1 LEVY LIMITS The Association of Metropolitan Municipalities commends the 1992 Legislature for removing artifical Levy Limitations from cities for 1993 and beyond. The AMM has consistently opposed the levy limit laws in that they apply uniform statewide restrictions to cities and are too inflexible to accommodate inflation, uncertanties in state and federal financial aids, and the diverse problems and circumstances faced by cities throughout the state. Such laws are inconsistent with principles of local self-government and accountability. Neither do they recognize changing local conditions as to either expenditure needs or revenue sources. Levy limits ultimately work against the interests of local taxpayers because the law creates an incentive for cities to take maximum advantage of the opportunity to make general or special levies. THE AMM STRONGLY SUPPORTS THE LEGISLATURE'S DECISION TO END LEVY LIMITATIONS FOR CITIES AND FURTHER URGES THAT LEVY LIMITS NOT BE REINSTATED IN THE FUTURE. A-2 OPPOSE VALUATION OR OPERATION FREEZES During the 1993 legislative session the administration and some legislators made several proposals related to levy limitation through freezes or referenda. As in the case of the previous levy limitations these type of artificial restrictions will work adversely for the taxpayers in the long run. Property valuation freezes will create property tax disparities between current and new property and will create large individual tax bill fluctuations when the freeze is lifted and property valued at market. Also, creating temporary payroll or operating freezes will in turn cause larger increases at some later point or violation of state labor law. Providing referenda to allow frozen operations to increase will in itself cost money and impose unnecessary bureaucracy into the local government budget process. THE AMM OPPOSES IMPOSITION OF ARTIFICIAL GIMMICKS SUCH AS VALUATION FREEZES, PAYROLL FREEZES WITH REFERENDA, OR OTHER LIMITATIONS TO THE LOCAL GOVERNMENT BUDGET AND TAXING PROCESS. I-B MANDATED STATE AND FEDERAL PROGRAMS The cost of local government is being influenced more and more by -1- both state and federal legislatively mandated programs and increased mandated benefits or costs for in place programs. At the same time the legislature and administration are suggesting that expenditures are far too great at the local level and that cutbacks are needed. Cities cannot provide additional mandated programs without seriously impacting the ability of cities to provide the traditional services of public safety, street maintenance, snowplowing, etc. Mandated programs such as pay equity, binding arbitration, PELRA, certain Data Practice requirements, expensive election rules, waste recycling, and truth in taxation cost money. These costs must be recovered through levy, state payment, or reduction of current service. There is no other way. THE AMM URGES THE LEGISLATURE TO RECOGNIZE THAT MANDATED INCREASED EXPENDITURES IN ONE PROGRAM WITHOUT A CORRESPONDING INFUSION OF FUNDS MANDATES A NEW PROPERTY TAX OR A DECREASED EXPENDITURE IN THE OTHER SERVICE AREAS SUCH AS PUBLIC SAFETY ETC. THEREFORE, WHEN NEW PROGRAMS OR INCREASES TO EXISTING PROGRAMS ARE MANDATED, THE LEGISLATURE SHOULD PROVIDE SUBSTANTIAL STATE FUNDING ASSISTANCE. I-C LOCAL GOVERNMENT AID State Aid to cities has been a much debated legislative issue for two decades. Over that time the formula (s) have ranged from pure per capita, to need based on value and service, to a distribution based on location and past spending. Homestead Credit has changed to Homestead Aid and is no longer a direct taxpayer subsidy. New gimmicks such as Disparity Reduction Aid (Mill rate equalization) and Tax Base Equalization Aid, have been invented to target money to various regions when the general aid formula could not be politically designed to work. With few exceptions, cities across the nation have access to more than one form of municipal revenue. The dedicated Local Government Trust Fund recognizes that and provides Minnesota cities with a second source, sales tax, in addition to the traditional small share of the property tax. The advent of the dedicated Local Government Trust Fund (LGTF) made up of 1 1/2 cent current sales tax revenue and 1/2 cent locally enacted sales tax revenue provides the opportunity to return to the basics and to develop a rational redistribution formula. That formula should recognize the sales tax as 1) a second source of city revenue to fund general city services as well as 2) a source of funds to help eliminate some of the disparities caused by unique municipal overburden and for low property wealth. C-1 AID FORMULA CRITERIA -2- ANY AID DISTRIBUTION FORMULA SHOULD CONSIDER AND SUBSTANTIALLY INCORPORATE THE FOLLOWING CRITERIA: .THE SALES TAX IS A GENERAL REVENUE SOURCE FOR CITY EXPENDITURES AND THUS SOME DISTRIBUTION TO EACH COMMUNITY MUST BE PROVIDED TO UPHOLD THE ORIGINAL COMMITMENT TO ALL OF THE STATES TAXPAYERS; .RECOGNITION OF BURDENS CAUSED BY RAPID POPULATION GROWTH; .RECOGNITION OF BURDENS CAUSED BY POPULATION LOSS IN MEETING THE DEMANDS FOR PUBLIC SERVICES; .RECOGNITION OF NEEDS BASED ON CHANGING DEMOGRAPHICS SUCH AS AGING POPULATION, HOUSING STOCK, AND INFRASTRUCTURE; .RECOGNITION OF WEALTH OR TAX CAPACITY; .RECOGNITION OF BASIC NEEDED SERVICES WHICH SHOULD BE SUPPORTED AT AN APPROPRIATE SUPPORT LEVEL; AND .RECOGNITION OF PROPERTY TAX BURDEN RELATIVE TO INDIVIDUAL WEALTH. C-2 LOCAL GOVERNMENT AID FORMULA The aid formula proposal developed by the League of Minnesota Cities for the 1993 legislative session basically incorporated the criteria as stated in I-C-1 above. The legislature modified the LMC proposal by using average statewide tax rate times tax capacity as the base rather than twice the average tax base, substituted a declining grandfather for the LMC rolling grandfather, and added some cap limitation. Although the distribution changed some, the adopted formula is based on need and does substantially include the need criteria. ALTHOUGH THE ORIGINAL 1993 LMC PROPOSED LGA FORMULA IS PREFERRED, THE AMM CAN SUPPORT CONTINUATION OF THE CURRENT LGA FORMULA THROUGH 1995. HOWEVER, IF CHANGES ARE CONSIDERED BY THE 1994 LEGISLATURE THAT WOULD ADVERSELY AFFECT THE STABILITY OR INTEGRITY OF THE PROGRAM, THE AMM WOULD STRONGLY SUPPORT RETURNING TO THE ORIGINAL 1993 LMC PROPOSAL. CONVERSELY, THE AMM WILL SUPPORT CHANGES OFFERED TO THE CURRENT FORMULA THAT HAVE A POSITIVE IMPACT ON METRO AREA CITIES. C-3 LGA GROWTH In order to ensure that city property taxes do not grow abnormally, there needs to be continued growth in the LGA which is a major portion of the overall revenue base of cities. THE AMM SUPPORTS CONTINUED GROWTH OF LGA IN 1995 THROUGH INCREASED -3- CONTRIBUTION FROM SALES TAX TO THE LOCAL GOVERNMENT TRUST FUND. THE LGA GROWTH RATE SHOULD EQUAL THE LGTF GROWTH RATE. I-D PROPERTY TAX D-1 GENERAL CLASS RATE CHANGES A portion of the property tax relief provided to farms by the 1993 legislature was accomplished by shifting county and school taxes to city taxpayers. This shifting causes local property tax burdens for certain properties to increase due to the actions of the state legislature. However, local government officials are held responsible by their taxpayers. THE AMM OPPOSES CHANGES TO THE PROPERTY TAX CLASSIFICATION SYSTEM THAT WOULD CAUSE SIGNIFICANT SHIFTING OF PROPERTY TAX BURDENS FROM ONE CLASS TO OTHERS. D-2 NON-GOVERNMENTAL TAX EXEMPT PROPERTY One of the glaring inequities in the Minnesota tax system involves the free local services that are provided to tax exempt property owned by certain non-governmental organizations. It is widely acknowledged that such property benefits directly from governmental services such as police and fire protection and street services provided by cities. However, since there is not legal basis for claiming reimbursement for the cost of such services, they are borne by the local taxpayers. Furthermore, such property is concentrated in certain cities resulting in a heavy cost burden in certain parts of the state. THE ASSOCIATION BELIEVES THIS PROBLEM SHOULD BE CORRECTED BY ENACTING LEGISLATION, REQUIRING OWNERS OF TAX EXEMPT PROPERTY, EXCEPT FOR CHURCHES, HOUSES OF WORSHIP, AND PROPERTY USED SOLELY FOR EDUCATIONAL PURPOSES BY ACADEMIES, COLLEGES, UNIVERSITIES AND SEMINARIES OF LEARNING, TO REIMBURSE CITIES FOR THE COST OF MUNICIPAL SERVICES SUCH AS POLICE, FIRE, AND STREETS. D-3 STATE, COUNTY, CITY AND METROPOLITAN AGENCY OWNED TAX EXEMPT PROPERTY The State of Minnesota, some cities, counties and Metropolitan Agencies own a significant amount of property within the metropolitan area. Cities provide a range of services that benefit these properties. However, since the they are exempt from paying property taxes, municipalities are not reimbursed for the cost of these services. This places an unreasonable burden on cities. The State of Wisconsin established a program called "Payment for Municipal Services" in 1973 . The program provides a mechanism for -4- municipalities to be reimbursed by the state for services they provide to state-owned properties. Through a formula based on the value of state-owned buildings within a city, the Wisconsin system reimburses cities for police, fire, and solid waste services. THE AMM ENCOURAGES THE STATE LEGISLATURE TO ESTABLISH A PROGRAM FOR REIMBURSING MUNICIPALITIES FOR SERVICES TO STATE, COUNTY, OTHER CITY AND METROPOLITAN AGENCY FACILITIES. THE PROGRAM SHOULD (1) ENSURE THAT THESE AGENCIES PAY ASSESSMENTS FOR SERVICES THAT BENEFIT THEIR PROPERTY, AND (2) ALLOW CITIES TO RECEIVE COMPENSATION FOR SERVICES THAT ARE FUNDED THROUGH GENERAL REVENUE, SUCH AS POLICE AND FIRE, WHICH ARE VALUABLE TO THE STATE OF MINNESOTA, COUNTIES, ANOTHER CITY AND METROPOLITAN AGENCIES. D-4 PROPERTY TAX REFORM Many significant changes in the property tax system have been made since the 1988 Session. The AMM believes it is critical that any future proposals be evaluated on the basis of their impact on individual communities. A proposal that may appear balanced on a statewide basis can have very disparate effects on individual cities. The difference in property tax burdens among taxpayers living in neighboring tax jurisdictions which provide similar services must also be kept within reasonable limits. Any significant tax burden disparities would adversely affect cities' abilities to compete on a fair basis for residents and economic development. Tax increment districts are dependent on tax rates and assessment ratios of the current property tax system. The financial viability of those projects should not be jeopardized by state-imposed changes in the tax structure. Likewise, enterprise zone businesses have been recruited based on a commitment that they would receive a preferential classification ratio in the calculation of their property tax obligations. These development districts should be protected from any negative consequences of tax reform. The tax increment financing plan in effect at the time legislation is passed should be the basis for determining remedies. In enacting any major reforms of the Minnesota property tax system, including the complementary system of property tax relief through aids to local government, the AMM recommends that the Legislature pursue policies which meet the following conditions: THE IMPACT OF ANY PROPOSAL SHOULD BE THOROUGHLY ANALYZED, FOR ITS IMPACT STATEWIDE AND ON INDIVIDUAL COMMUNITIES. MAJOR SHIFTS THAT INCREASE DISPARITIES IN TAX BURDENS AMONG TAXING JURISDICTIONS OR REGIONS WITHIN THE STATE SHOULD NOT OCCUR. -5- ALL SIGNIFICANT CHANGES SHOULD BE PHASED IN SO THAT CITIES CAN ADEQUATELY PLAN FOR ANY NEEDED ADJUSTMENTS. LOCAL GOVERNMENT AID, OR AN EQUIVALENT PROGRAM OF PROPERTY TAX RELIEF SHOULD REMAIN AN ESSENTIAL COMPONENT OF THE PROPERTY TAX SYSTEM. CATEGORICAL AID PROGRAMS SHOULD NOT BECOME A SUBSTITUTE FOR LGA AND RELATED PROPERTY TAX RELIEF PROGRAMS. PROPERTY TAX REFORM SHOULD RECOGNIZE THE TAX/CASH FLOW NEEDS OF AND NOT JEOPARDIZE EXISTING DEVELOPMENT DISTRICTS, TAX INCREMENT FINANCE DISTRICTS OR ENTERPRISE ZONES. THE CHANGES IN TAX STATEMENTS MADE BY THE 1988 LEGISLATURE HAVE THE POTENTIAL TO MISLEAD TAXPAYERS ABOUT THE VALUE OF HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA) PAYMENTS MADE TO LOCAL GOVERNMENTS AND SHOULD BE CORRECTED. AN INCOME-ADJUSTED CIRCUIT BREAKER AND RENTERS' CREDIT SHOULD CONTINUE. SIMPLIFICATION AND ACCOUNTABILITY ARE DESIRABLE GOALS THAT SHOULD BE ADDRESSED WITHIN THE ABOVE TENETS. I-E GENERAL FISCAL IMPACT POLICIES E-1 FISCAL NOTE CONTINUATION Many laws are passed each year by the legislature which have a substantial effect on the financial viability of cities. Some of these, such as revenue and tax measures, have an obvious and direct effect which is often calculated and reported during the hearing process. Many others, such as worker's compensation benefit increases, mandated activities, binding arbitration and other labor related legislation, social programs, etc. , have costs which are not as obvious but which will now be known due to a fiscal note requirement. Cities and others will now be able to determine the real cost of a program or suggestion and be able to use this data in determining the merits. THE STATE SHOULD CONTINUE A POLICY OF "DELIBERATE RESTRAINT" ON ITS MANDATED PROGRAMS AND UTILIZE EXTENSIVELY THE RECENTLY ADOPTED FISCAL NOTE STATUTE IDENTIFYING LOCAL GOVERNMENT COSTS ON ANY NEW MANDATED PROGRAMS. E-2 FUNDING SHIFTS The Minnesota House of Representatives Research Department annually prepares 'Major State Aids and Taxes: A Comparative Analysis' . The statistics for 1985 through 1992 show an imbalance of state revenues collected and aids and credits distributed -6- between the metropolitan and outstate areas. Nearly 65% of the State Revenue is collected in the Metropolitan Area while only about 45% of the aids and credits are redistributed in the metro area. In 1992 there was $. 56 returned in aids and credits for each dollar collected in the metro area (down 3 cents from 1990) whereas, there was $1. 27 returned per $1. 00 collected in greater Minnesota (down 5 cents from 1990) . The trend in the past two to three years has been very slightly in favor of the metro area but there is still a vast imbalance in favor of outstate distribution per amount collected. If the imbalance is allowed to continue, state tax and aid policies may jeopardize the future economic growth of the metro area to the detriment of the whole state. STATISTICS COMPILED BY THE HOUSE RESEARCH DEPARTMENT SHOW THAT THE MAJORITY OF THE STATE REVENUE IS RAISED IN THE METRO AREA WHILE ONLY A MINORITY OF THE STATE AIDS AND CREDITS ARE ALLOCATED TO THE METRO AREA. THE AMM REQUESTS THE LEGISLATURE TO CONTINUE TO REDUCE THE IMBALANCE AND TO CONSIDER HOW THIS DISTRIBUTION OF RESOURCES EFFECTS THE ECONOMIC GROWTH AND VITALITY OF THE METRO AREA AND THUS THE ENTIRE STATE. E-3 STATE REVENUE STABILITY The AMM has in the past supported a state reserve fund to help deal with unanticipated economic changes that could result in mid year cuts to various city aid programs. The AMM also supports cash flow balances for cities so that short term borrowing is unnecessary. The same case can be made for the states cash flow. Finally, it seems prudent to develop a mid term correction or unallotment process that does not penalize any one segment of the state budget recipients over another segment if the economy drops beyond a reasonable reserve balance. THE AMM SUPPORTS A CONTINUED STATE FUND TO PROVIDE FOR STATE BUDGET CASH FLOW NEEDS AND A RESERVE FOR UNEXPECTED BUDGET SHORTFALLS DUE TO ECONOMIC DOWNTURNS. THE AMM ALSO ENCOURAGES THE LEGISLATIVE COMMISSION ON PLANNING AND FISCAL POLICY TO ADOPT A UNIFORM ACROSS THE BOARD UNALLOTMENT PROCESS FOR MAJOR ECONOMIC DOWNTURNS SIMILAR TO THAT PROVIDED BY THE 1993 LEGISLATURE. E-4 CITY FUND BALANCES There are several reasons why cities must carry adequate fund balances. First, cities need substantial cash balances at the beginning of their fiscal year to finance expenditures for the first six months of the year. (By statute, cities' fiscal year is on a calendar year basis, running from January 1 through December 31. ) The main sources of city revenue are property taxes and state aid; property tax payments are not made to cities until June and state aid is not provided until late July -- six to seven months into the city fiscal year. Without the necessary cash -7- balance at the beginning of the year cities do not have funds to operate for the first half of the fiscal year. The alternative would be for the city to engage in costly borrowing which is not in the interest of local taxpayers or the state. The office of the state auditor has recommended that to be prudent, cities should carry an end-of-the-year dedicated cash balance sufficient to fund city expenditures for the first half of the year. Second, many cities, in order to save taxpayer dollars and avoid paying costly interest on debt, accumulate funds for major capital purchases and infrastructure. A common example is saving over a period of years to purchase an expensive fire engine or public works vehicle. In some cities, it may appear as if a city has a large reserve compared to its annual expenditures, but in reality it is "saving" for a major purchase. Confusion over this practice has lead cities to more prudently "designate" their fund balances to clarify the intended future use of such funds. Because of the vast differences in the size of the 856 cities of Minnesota and the various local preferences in financing purchases, it would be bad public policy for the Legislature to restrict or eliminate cities' abilities to accumulate fund balances. Third, cities need to maintain some fund balance to meet emergency or unanticipated expenditures created by situations such as cuts in aid, natural disasters, lawsuits, and premature breakdown of vital equipment. Cities are not given the necessary revenue raising authority to be able to address these issues in the middle of a budget year. And finally, bond rating firms require liquidity and a demonstrated ability to pay debt in order to receive a favorable bond rating. Bond rating firms scrutinize city fund balances when rating bonds. The better the bond rating of a city, the lower the interest cost of borrowing are to the taxpayer. Therefore, THE LEGISLATURE SHOULD NOT ATTEMPT TO CONTROL OR RESTRICT CITY FUND BALANCES. THESE FUNDS ARE NECESSARY TO MAINTAIN THE FISCAL VIABILITY TO MEET UNEXPECTED OR EMERGENCY RESOURCE NEEDS OF CITY GOVERNMENTS, TO PURCHASE CAPITAL GOODS AND INFRASTRUCTURE,PROVIDE ADEQUATE CASH FLOW AND TO MAINTAIN HIGH LEVEL BOND RATINGS. I-F SALES TAX DEDICATION GUARANTEE The AMM commends the Legislature for the creation of the Local government Trust Fund (LGTF) consisting of sales tax dedication to city/county property tax relief. City governmental officials have long needed a stable source of funding to augment the property tax for provisions of municipal services. -8- CITIES CONTINUE TO SUPPORT THE CONCEPT OF THE LGTF WHICH INCLUDES AN IRREVOCABLE DEDICATION OF A PORTION OF THE SALES TAX AND MOTOR VEHICLE EXCISE TAX TO A DEFINED AND STABLE SET OF PROPERTY TAX RELIEF PROGRAMS. IF DEDICATION CANNOT BE ASSURED UNDER THE CURRENT SYSTEM, THE AMM WILL PURSUE MODIFICATIONS TO THE STRUCTURE AND COMPOSITION OF THE FUND OR A CONSTITUTIONAL DEDICATION OF THE TRUST FUND REVENUES TO PROPERTY TAX RELIEF PROGRAMS, OR BOTH. I-G HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA) G-1 HACA CONTINUATION Homestead and Agricultural Credit Aid (HACA) is the residual aid from the old Homestead and Agricultural credit programs. Taxpayers see a Homestead calculation on their Property Tax Statements but as time has passed, this calculated number and the actual HACA payment to local governments is sugnificantly different and of no relationship. $50 million of city HACA was shifted to schools in the late 1980's and has since been further reduced through general aid cuts. Unfortunately the school tax rates reduced by the shift have since risen beyond the buydown level. HACA is an integral part of the state and local governmental service financing. It is the vehicle used to control property tax increases when class rates are modified and it augments not duplicates the LGA system. HACA is as important as LGA and thus should be continued as a major part of the state and local fiscal partnership. HACA SHOULD BE CONTINUED AS A PART OF THE STATE AND LOCAL FISCAL RELATIONSHIP AND INCREASED AS APPROPRIATE. G-2 HACA GROWTH FACTOR The 1993 legislature repealed the HACA growth factor for cities, towns, schools, and special taxing districts but not for counties beginning in 1994 . The HACA growth factor assures that the property tax relief provided by the state through the classification system is paid by the state and not through tax shifts to other property and it is especially needed as a partial property tax relief offset in high homestead growth areas. THE AMM URGES THE LEGISLATURE TO RESTORE THE HACA GROWTH FACTOR FOR ALL CITIES OR PROVIDE AN ALTERNATE ESCALATOR. G-3 OPPOSE HACA CONVERSION TO SCHOOL AID Converting city HACA or LGA to school aid could force cities to dramatically increase their property taxes in order to maintain sufficient operating revenues. In addition, due to constant pressure to increase the resources available for schools, there is no assurance that conversion of city HACA or LGA to school aid -9- would result in permanent reductions in school levies or have a neutral impact on the taxes paid by local taxpayers. THE AMM OPPOSES CONVERSION OF CITY HACA TO SCHOOL AID G-4 HACA BUYDOWN FOR CLASS RATE CHANGES In the past the legislature has used HACA to pay for class rate changes for C/I and high valued homestead properties to ensure that other property classes are not penalized. THE AMM SUPPORTS STATE BUYDOWN OF FUTURE CLASS RATE CHANGES THROUGH HACA TO PREVENT SHIFTING PROPERTY TAX BURDENS TO OTHER PROPERTY CLASSES. I-H STATE IMPOSED FEE FOR SERVICE The legislature recently adopted a fee of $5. 21 for each municipality connected water hook up to provide money for federally mandated water well testing. The state imposed the fee in a way that local city officials have been blamed for the fee and increases on water bills resulting from the fee. In addition the fee was not imposed on trailor parks and certain other private interests, thus allowing a large portion of the population to escape paying. Finally, it has been reported that the total collected was in excess of the need and that the excess has been deposited in the state general fund for general expenses. THE AMM OPPOSES THE STATE MANDATING FEES IN A MANNER THAT FORCES CITY OFFICIALS TO BE HELD AS THE RESPONSIBLE CULPRITS IN LEVYING AND EXPLAINING THE PURPOSE. THE AMM ALSO OPPOSES FEES THAT ARE NOT SPREAD EQUITABLY TO ALL AND OPPOSES OVER COLLECTION OR USE OF A REVENUE GENERATED FOR A SPECIFIC PURPOSE TO BE USED FOR GENERAL GOVERNMENT EXPENSES. I-I FISCAL DISPARITY FUND DISTRIBUTION Fiscal Disparities (F.D. ) is a fiscal tool that shares Commercial/Industrial property value for tax purposes in the seven-county metropolitan area. Its primary purpose is to help equalize, to some degree, the property tax wealth among the cities by sharing part of the growth in communities experiencing significant growth with those experiencing little growth. A secondary aspect is it tends toward equalizing taxes on similar C/I properties in various communities. Recently suggestions have been raised to use a percentage of the fiscal disparities funds for specific social or other programs in the metropolitan area. Because of the way F.D. is calculated, this would amount to a hidden property tax increase across the metropolitan area that impacts the property tax poorer cities the -10- most. Fiscal disparities distribution is applied after levy certification so the property tax increase is automatic, not discretionary at the local level. Therefore, THE AMM OPPOSES USE OF FISCAL DISPARITIES TO FUND SOCIAL OR PHYSICAL METROPOLITAN PROGRAMS SINCE IT RESULTS IN A METROPOLITAN -WIDE PROPERTY TAX INCREASE HIDDEN FROM THE PUBLIC WITH AN EXCESSIVE IMPACT ON COMMUNITIES WITH LOWER PROPERTY WEALTH. -11- II GENERAL LEGISLATION PAGE 12 THROUGH 19 II GENERAL LEGISLATION II-A OPPOSE REDUCTION OF AUTHORITY OR LOCAL CONTROL The AMM has for many years opposed certain statutory changes that erode local authority or mandate activities which cost money to implement unless there is a provision to recover those costs. Rather than adopt a separate policy for each issue, the AMM believes that as general policy the legislature should not decrease current authority or mandate activities creating added costs to cities without providing the necessary funding or unless there is overwhelming obvious demonstration of obvious need. Included in this general policy is opposition to mandates such as; mandating wards for elections, setting city employee salaries, state or metropolitan licensing of tree treatment contractors, plumbing inspections by licensed plumbers only, and requiring competitive bidding for land sales. THE AMM OPPOSES STATUTORY CHANGES WHICH ERODE LOCAL CONTROL AND AUTHORITY OR CREATE ADDITIONAL TASKS REQUIRING NEW OR ADDED LOCAL COSTS WITHOUT A CORRESPONDING FUNDING MECHANISM. THIS INCLUDES MANDATING ELECTION BY WARDS AND INTRUSION IN SETTING LOCAL SALARIES. II-B TORT LIABILITY The Municipal Tort Liability Act was enacted to protect the public treasury while giving the citizen relief from the arbitrary, confusing, and administratively expensive prior doctrine of sovereign immunity with its inconsistent and irrational distinctions between governmental and proprietary activities. The act has served that purpose well in the past, however, courts frequently forget or ignore the positive benefits secured to citizens damaged by public servants as a result of enactment of the comprehensive act which includes some limitations on liability and some qualifications of normal tort claims procedure. The special vulnerability of far-flung government operations to debilitating tort suits continues to require the existence of a tort claims act applicable to local governments or local governments and the state. The need for some type of limitations is evidenced by recent experiences with the insurance market. Cities in Minnesota are finding it increasingly difficult to obtain insurance at an affordable rate, if at all. Amendments in 1983 to increase the dollar amounts recoverable by plaintiffs should be adequate to satisfy any reasonable claim. Further changes in limits beyond the current $200, 000 per person and $600, 000 per occurrence should not be made. Joint and several liability provisions have been modified to lessen the deep pockets effect some. The current limit of payment is times two for liability of 35% or less (i.e. if the city is 30% -12- liable, they may be required to pay 60% of the damage award) or total responsibility if liability is over 35% (i.e. if the city is 40% liable, they may be required to pay 100% of the damage award) . This still seems onerous especially when this comes out of taxpayers pockets. Payment liability should definitely not be increased. THE AMM SUPPORTS THE CONTINUED EXISTENCE OF THE MUNICIPAL TORT LIABILITY ACT AND RECOMMENDS THAT THE CURRENT LIMITS OF LIABILITY REMAIN INTACT. JOINT AND SEVERAL LIABILITY PROVISIONS FOR PAYMENT LIMITS SHOULD NOT BE INCREASED FROM CURRENT LAW SO THAT TAXPAYERS ARE NOT MORE UNFAIRLY SUBJECTED TO DEEP POCKET AWARDS. II-C DATA PRACTICES C-1 OPEN MEETINGS AND DATA PRACTICES The Legislature needs to continually reexamine the open meeting law and the data practices act. The intent of the open meeting law is to ensure, within practical limits, the access of persons to the actions and motivations of government. The data practices act is intended to ensure, within practical limits, the privacy of persons who willingly or unwillingly become involved with their government. Both laws are difficult to follow individually, and when private or other classified information must be discussed by a public body subject to the open meeting law, as inevitably it must in many situations, the government is forced to attempt to meet two conflicting statutes. The Legislature has attempted to identify problem areas and to provide clear rules for local government to follow. Unfortunately, not all circumstances can be anticipated nor remaining ambiguities addressed. Selection of city employees is complicated by the data practices act's classification of the identity of non-finalists as private. If meetings of public bodies to screen applicants until finalists are chosen were closed, this would protect the privacy rights of individuals and yet allow the public to be involved at the most important stage of the process, that being the selection of an employee from the group of finalists. Certain meetings, such as settlement meetings involving judicial or administrative actions, are more likely to be more productive and concluded faster if they are not subject to the open meeting law. The legislature should broaden current provisions to allow quasi-judicial officers or certain state employees to authorize closed meetings of public bodies. Several city officials have incurred huge personal costs defending open meeting law violation allegations, because state law treats the open meeting law somewhere between a civil and criminal matter. Recent proposals to increase the penalty section of the -13- open meeting law as a means of ensuring greater compliance are misplaced. City officials are making good faith efforts to comply with both laws. Without additional clarification, however, the Legislature must realize that city officials owe it to their constituents to limit the city's exposure to liability. THE AMM SUPPORTS LEGISLATION CLARIFYING THE OPEN MEETING LAW AND THE DATA PRACTICES ACT TO MAKE LOCAL GOVERNMENT COMPLIANCE EASIER AND LESS COSTLY. PUBLIC BODIES SHOULD BE ALLOWED TO CLOSE MEETINGS TO SCREEN JOB APPLICANTS UNTIL FINALISTS HAVE BEEN CHOSEN. THE LEGISLATURE SHOULD REPEAL CURRENT PROVISIONS WHICH REQUIRE REASONABLE EFFORTS TO KEEP DATA PRIVATE WHICH MUST BE DISCUSSED PUBLICLY, THUS FORCING LOCAL OFFICIALS TO VIOLATE ONE OR THE OTHER LAW OR TAKE ACTION UNAPPROPRIATELY. THE LEGISLATURE SHOULD CONSIDER ABANDONING JUDICIAL ACTIONS AS THE PRIMARY MEANS OF ENFORCING THE OPEN MEETING LAW. ALTERNATIVE DISPUTE RESOLUTION MECHANISMS, COMMISSIONS SIMILAR TO THE STATE NEWS COUNCIL, OR OTHER OPTIONS SHOULD BE EXPLORED. AT THE VERY LEAST, THE LEGISLATURE SHOULD AUTHORIZE LOCAL GOVERNMENTS TO REIMBURSE THEIR OFFICERS TO THE SAME EXTENT AS IF CRIMINAL CHARGES WERE BROUGHT BECAUSE OF THEIR OFFICIAL ACTIONS. C-2 LIQUOR LICENSE APPLICATION The definition of `licensing agency' in Minn. State 13 . 41 is not clear as to the inclusion of cities, therefore, it is unclear whether all or part of the information on license issuance is public. This can be a real problem when issuing liquor licenses, since part of the data concerns sensitive business and personal finances. THE AMM ENCOURAGES THE LEGISLATURE TO CLARIFY THAT POLITICAL SUBDIVISIONS OF THE STATE INCLUDING CITIES ARE LICENSING AGENCIES IN MINN. STATUTES 13.41 AND THAT FINANCIAL DATA OF A PERSON OR BUSINESS SUBMITTED IN CONJUNCTION WITH AN APPLICATION FOR A LIQUOR LICENSE OR OBTAINED AS A RESULT OF AN INVESTIGATION OF THE APPLICANT OR LICENSEE SHALL BE CLASSIFIED AS PRIVATE. C-3 GENERAL PUBLIC DATA The Government Data Practices Act allows municipalities to charge the actual costs of searching for, retrieving, and copying public data if copies of the data are requested. The law prohibits municipalities from charging the costs of searching for and retrieving data if a person asks only to inspect it. In many cases, the searching and retrieving are the most time-consuming aspects of supplying data. Making a copy is frequently only a small portion of the time required and should not be the standard for determining whether a charge is appropriate. Profit-making enterprises have used this free service to augment -14- their businesses. For example, individuals have established businesses for preparing special assessment searches. Personnel from these businesses use city facilities, including expensive computer equipment, to obtain the special assessment data. The personnel may also take significant amounts of staff time for explanations of the data collected. They then dominate the publicly provided telephone for lengthly periods to transmit the information obtained. These businesses use city facilities and personnel as part of a profit-making enterprise, solely at taxpayer expense. Municipalities should be allowed to charge for retrieving and explaining public data whether or not the request includes copying. The law also prohibits municipalities from charging for separating public from non-public data. This task may be very time-comsuming and is necessary to protect the non-public data. Municipalities should be allowed to charge for this service. To preserve the Act's spirit and intent of keeping government records open to inspection for public purposes, the new charges proposed would not apply to the media or to private citizens requesting information about themselves or their own properties. THE AMM ENCOURAGES THE LEGISLATURE TO AMEND MINN. STAT. 13.03, SUBD. 3 TO ALLOW MUNICIPALITIES TO CHARGE FOR RETRIEVING AND EXPLAINING PUBLIC DATA AND FOR SEPARATING PUBLIC FROM NON-PUBLIC DATA. THIS AMENDMENT WOULD NOT APPLY, HOWEVER, TO THE MEDIA OR TO PRIVATE CITIZENS REQUESTING INFORMATION ABOUT THEMSELVES OR THEIR OWN PROPERTIES. II-D POLICE AND FIRE PENSION PROVISIONS Local police and full-time fire relief associations were phased out by the 1980 legislature, unless the local council opts to keep the relief association. All new employees will become part of the state police and fire PERA fund and the state will reimburse local units for a portion of the unfunded liability remaining in the local fund. The unfunded liability was projected to be paid by the year 2011 but during the 1980's, investment earnings were in excess of 10% and thus could, at that continued rate, reduce the time to year 2005. Past earnings are not an indication of what happens in the future. The legislature considered siphoning earnings in excess of that needed for 2011 amortization to reduce state payments and property tax levy for unfunded liability as well as provide a bonus (13th. paycheck) to retirees. If investment increase drops below 10%, the local property taxpayers in future years will pay more, not only to pick up the property tax reduction but the state reimbursement reduction. It would be better public policy to wait until the unfunded liability is funded. Also, 1979 Law set employee contributions at 8% and the Legislative Retirement Commission has in the past established a -15- general policy requiring public safety employees to pay 40% of the normal pension costs. D-1 AMORTIZATION AID THE AMM OPPOSES LEGISLATION THAT PROVIDES FOR REDUCTIONS OF STATE AMORTIZATION AID TO LOCAL POLICE AND FIRE RELIEF ASSOCIATIONS. D-2 EMPLOYEE CONTRIBUTION AMOUNT EVEN THOUGH THE EMPLOYEE CONTRIBUTION AMOUNT WAS SET AT 8%, IN MANY FUNDS THIS IS NOT EQUIVALENT TO 40% OF THE NORMAL COSTS. THE AMM URGES THAT THE CONTRIBUTION LEVEL BE SET AT 40% OF THE NORMAL COST OF FINANCING THE BENEFITS EVEN IF THIS AMOUNT EXCEEDS 8% OF BASE SALARY. D-3 BENEFIT INCREASES THE AMM OPPOSES ANY BENEFIT INCREASES FOR LOCAL POLICE AND FIRE RELIEF ASSOCIATIONS UNLESS AN INCREASE, INCLUDING ANY RESULTING DEFICIT, IS FINANCED 50% BY THE EMPLOYING CITY AND 50% BY EMPLOYEES ON A CURRENT BASIS. D-4 ASSUMPTION CHANGES THE AMM SUPPORTS CHANGES IN ACTUARIAL ASSUMPTIONS RELATING TO SALARIES AND INVESTMENT RETURN TO MORE TRULY REFLECT EXPERIENCES. THE AMM OPPOSES PAYMENT OF ANY TYPE OF BONUS TO ACTIVE OR RETIRED MEMBERS (13TH. CHECK) AS A PART OF ACTUARIAL ASSUMPTION CHANGES. II-E CONTRACTORS PERFORMANCE BONDS The 1989 legislature modified Minnesota Statutes 574 . 26 to allow contractors to provide a letter of credit instead of a performance bond for contracts of less than $50, 000. Although an improvement at the time, this still will create significant hardship with many reputable minority and small contractors. In todays market, projects in excess of $50, 000 are very common and are not really large jobs. Experience also shows that letters of credit are safer for the public and easier to collect than Bonds. The emphasis should be on protecting the public. THE AMM URGES THE LEGISLATURE TO PROVIDE GREATER FLEXIBILITY IN CONTRACTOR GUARANTEES FOR CITIES BY ALLOWING IN ADDITION TO BONDS, OTHER RELIABLE FINANCIAL SECURITY GUARANTEES, SUCH AS LETTERS OF CREDIT, WITHOUT LIMITATION AS TO PROJECT COSTS TO THEREBY ENHANCE OPPORTUNITIES FOR MINORITY AND OTHER SMALL CONTRACTORS. II-F CONCURRENT DETACHMENT AND ANNEXATION Prior to 1985 the changing of municipal boundaries initiated by -16- property owners was limited to the single case where their property was totally surrounded by another community. The 1985 legislation opened the possibility up to all property owners to initiate such action. This broad based allowance is problematic in some instances because of the City expense and intercity divisiveness that it causes. IT IS THE POLICY OF THE AMM THAT THE PROVISION ALLOWING PROPERTY OWNERS TO PETITION FOR ANNEXATION BE MODIFIED TO ALLOW PETITIONING UNDER ANY OF THE FOLLOWING CRITERIA. -THE PROPERTY OWNERS HAVE BEEN DENIED A REASONABLE USE OF THEIR LAND WHICH IS CONSISTENT WITH AND ALLOWED UNDER THE CITY'S COMPREHENSIVE PLAN AND ZONING ORDINANCE. THE PROPERTY OWNERS HAVE NOT BEEN DENIED A REASONABLE USE IF THE PERMITTED DEVELOPMENT HAS BEEN DEFERRED PURSUANT TO A PHASING OR STAGING PLAN. -THE COMPREHENSIVE PLAN DOES NOT ACCOUNT FOR SIGNIFICANT BARRIERS SEPARATING THIS LAND FROM SERVICE FROM THE CURRENT COMMUNITY INCLUDING ANY ABILITY TO ACCESS ITS STREET SYSTEM. -PROPERTY OWNERS HAVE PAID FOR SPECIAL ASSESSMENTS FOR SERVICE BUT DUE TO ACTIONS TAKEN BY THE GOVERNING BODY ARE PROHIBITED FROM ANY CONNECTION TO THAT SYSTEM. BEFORE PROPERTY OWNERS INITIATE PROCEEDINGS UNDER THESE CONDITIONS THEY MUST UNDERTAKE A PROFESSIONAL PLANNING FEASIBILITY STUDY TO BE CONDUCTED BY A CONSULTANT TO BE SELECTED AND PAID FOR BY THE PROPERTY OWNERS. THE CURRENT COMMUNITY MUST APPROVE THE SELECTION OF THE CONSULTANT OR OFFER AN ALTERNATIVE CONSULTANT ACCEPTABLE TO THE PROPERTY OWNERS. IF AGREEMENT CANNOT BE REACHED, THE MUNICIPAL BOARD SHALL APPROVE A CONSULTANT. THE STUDY SHOULD EXAMINE THE PROPOSED DEVELOPMENT OF THE PROPERTY AND THE RAMIFICATIONS OF DETACHMENT AND ANNEXATION. THE STUDY SHOULD ADDRESS PHYSICAL PLANNING ISSUES, DELIVERY OF SERVICE AND ANY FINANCIAL RAMIFICATIONS TOGETHER WITH ANY IMPLEMENTATION PLAN. THE PROPOSED PLAN FOR THE PROPERTY SHALL BE PRESENTED TO THE CURRENT COMMUNITY. IF REJECTED BY THE CURRENT COMMUNITY, THE PROPERTY OWNERS SHALL PRESENT THE PLAN TO THE OTHER COMMUNITY. PRIOR TO A HEARING IN FRONT OF THE MUNICIPAL BOARD, AFTER THE PETITION HAS BEEN SUBMITTED, THERE SHALL BE A PERIOD TO ALLOW FOR MEDIATION BY THE CITIES. FAILING A MEDIATED RESULT, A REVIEW SHALL BE CONDUCTED BY THE REGIONAL PLANNING COMMISSION(S) OR METROPOLITAN COUNCIL WHERE THE CITIES ARE LOCATED. COMMENTS WILL THEN BE FORWARDED TO THE MUNICIPAL BOARD FOR CONSIDERATION. THE MUNICIPAL BOARD'S DECISION MUST BE BASED ON A BALANCING OF THE INTERESTS OF BOTH MUNICIPALITIES AND THE PROPERTY OWNERS. FACTORS -17- TO CONSIDER SHOULD INCLUDE BUT NOT BE LIMITED TO: -THE EXTENT OF PUBLIC SERVICES THAT CAN BE PROVIDED BY EACH MUNICIPALITY; -THE FINDINGS OF THE REGIONAL PLANNING AUTHORITY REGARDING THE IMPACT ON THE REGIONAL SYSTEMS; -THE ECONOMIC IMPACT ON EACH COMMUNITY AND THE PROPERTY OWNERS; -THE EXISTENCE OF PHYSICAL BARRIERS WHICH SEPARATE THE PROPERTY FROM THE REMAINDER OF THE CURRENT MUNICIPALITY BUT NOT THE PROPOSED MUNICIPALITY; AND -ADDITIONAL CRITERIA INCLUDED IN MS 414. 041, SUBDIVISION 5 II-G 911 TELEPHONE TAX Since 1985, Minnesota has had the authority to impose a fee of up to 30 cents per month on every telephone bill in the state. Currently, the fee is set at 18 cents per phone bill per month. The funds generated by this fee amount to several millions of dollars per year. The Department of Administration uses these funds to pay the recurring monthly costs to the 90+ phone companies in the state for the costs of the dedicated phone circuits. In a previous legislative session, legislation was introduced which would have allowed the surcharge to grow to $1. 00 . The excess fee was intended to develop capital in those outstate counties to implement enhanced 911 service over and above the basic 911 service they already have. THE AMM SUPPORTS ALLOWING THE CURRENT 911 ACCESS FEE ON TELEPHONE BILIS TO BE USED FOR COSTS OTHER THAN JUST ENHANCED UPGRADE FROM BASIC SERVICE AND THAT ANY FEE IN EXCESS OF 30 CENTS BE RETURNED TO THE JURISDICTION WHERE IT WAS COLLECTED. II-H MARKETS FOR RECYCLED MATERIAL In recent years, the state legislature has adopted legislation encouraging significant recycling of paper, cans, and plastic in the State of Minnesota. Fortunately or unfortunately, the activity has been such a success that the supply of recyclable material is outstripping the market for such material. It has been suggested that along with encouraging recycling the state should also help encourage and create opportunities or markets for use of recycled material. One idea by a local official went so far as to suggest building recycling plants at state prisons and creating a prison industry of manufacturing goods from their own recycling plant. -18- THE AMM URGES THE LEGISLATURE TO CREATE INCENTIVES OR USE ITS AUTHORITY TO IDENTIFY OR CREATE MARKETS FOR PROCESSING RECYCLED MATERIAL. -19- 1 I III 1 1 1 HOUSING AND ECONOMIC DEVELOPMENT AND LAND USE 1 1 1 1 1 1 1 1 PAGE 20 THROUGH 36 1 I 1 1 III HOUSING, ECONOMIC DEVELOPMENT AND LAND USE III-A. HOUSING AND NEIGHBORHOODS The housing problem for persons currently unable to afford market rate housing can best be mitigated if all levels of government and the private sector, including non-profit groups, work together and if each contributes a fair share to the solution. Each level of government should contribute to help solve the problem and each level's contributions should be of the kind it is best suited to make. The Federal and/or State Levels should provide direct financial subsidies for housing for low and moderate income persons. The Federal and State Governments also have the responsibility to provide a tax climate in which the private sector can produce and maintain rental units that are affordable to low and moderate income households. The State should also grant local units of government the authority and flexibility to conduct the kind of housing programs that best meets their diverse needs. The Metropolitan Council should continue to place high priority on housing planning for the Metropolitan Area and provide specific guidance to the public and private sectors so that both can make rational decisions relative to future housing needs. The Council should continue to be aggressive in seeking innovative ways to create housing opportunities for low income persons. Local units of government also have a major role to play. Local controls constitute but a small portion of the total cost of housing but local units should not establish requirements which go beyond what is necessary for the protection of health, safety and welfare. Local units should also work with the private and non-profit sectors to make the best use of existing tools to produce affordable housing which is more affordable. Decision makers at all levels must become more cognizant of their actions, policies, and decisions which have an undesirable impact on housing costs. A-l. EXAMINE LOCAL REQUIREMENTS THAT AFFECT HOUSING COSTS. Local requirements, if excessive, can add to the cost of producing affordable housing. IT IS THE RESPONSIBILITY OF CITIES TO PERIODICALLY REVIEW THEIR LOCAL REQUIREMENTS (LAND USE REGULATIONS, SUBDIVISION ORDINANCES, ETC. ) TO ASSURE THAT THESE REQUIREMENTS DO NOT GO BEYOND WHAT IS NECESSARY FOR THE PROTECTION OF HEALTH, SAFETY, AND WELFARE, AND INHIBIT THE CONSTRUCTION OF AFFORDABLE HOUSING. MODIFICATIONS SHOULD BE MADE IF EXLUSIONARY PRACTICES ARE FOUND. -20- A-2. PRACTICES BY OTHER LEVELS OF GOVERNMENT WHICH AFFECT HOUSING COSTS. Decision makers at other levels of government must become more cognizant of actions they take which have an impact on housing costs. These actions in themselves may be worthwhile and beneficial, but when implemented result in increased housing costs. Examples of this type of action would include such things as the sewer availability charge, restricted growth policies, building and energy codes, environmental rules, etc. OTHER LEVELS OF GOVERNMENT ALSO SHOULD EXAMINE THEIR PRACTICES AND POLICIES TO DETERMINE POSSIBLE UNNECESSARY IMPACTS ON HOUSING COSTS. CHANGES SHOULD BE MADE AS NECESSARY. A-3. MANDATORY LAND USE STANDARDS. Uniform standards for housing style, type and size are not appropriate because of the great diversity among cities and differences within cities relative to density of development, topography, age of housing stock, the mix of housing values, and the level of municipal services which are provided. Land use regulation is one of the tools used by city officials to protect the health, safety, welfare, and interests of the city's residents. THE LEGISLATURE SHOULD NOT PASS LEGISLATION WHICH MANDATES UNIFORM ZONING AND SUBDIVISION STANDARDS OR WHICH REMOVES ADDITIONAL LAND USE REGULATION AUTHORITY FROM LOCAL UNITS OF GOVERNMENT. CITIES SHOULD RETAIN THE AUTHORITY TO REGULATE THE LOCATION, SIZE, AMOUNT, AND TYPE OF HOUSING WITHIN THEIR BOUNDARIES. NO LEGISLATIVE INITIATIVE NEEDED. A-4. STATE HOUSING POLICY. The state should be a more active participant in providing funding for housing needs. It is expected that allocation of state resources would be based on an overall state housing policy which would provide the necessary tools for implementation. The Legislature needs to provide for financing strategies which will carry out the long range goals for providing and maintaining affordable housing opportunities. The state housing policy should enable and assist local governments, private and non-profit developers to initiate affordable housing. Local governments should participate in the formulation of a state housing policy which will be used to support local housing goals. THE AMM RECOMMENDS THAT THE STATE PROVIDE DIRECT FUNDING AND FINANCIAL INCENTIVES NEEDED TO ASSIST CITIES IN MEETING LONG TERM -21- HOUSING NEEDS IN THE STATE. DIRECT FUNDING SHOULD COME IN THE FORM OF GRANTS AND LOANS FROM STATE FINANCING SOURCES, INCLUDING BUT NOT LIMITED TO: - STATE APPROPRIATIONS - STATE BONDING - STATE GAMBLING REVENUE - MORTGAGE DEED TAX REVENUE - REVENUE FROM MINNESOTA HOUSING FINANCE AGENCY FINANCIAL INCENTIVES PROVIDED THROUGH THE STATE TAX POLICY SHOULD BE USED TO BENEFIT THE MAINTENANCE AND DEVELOPMENT OF AFFORDABLE HOUSING. INCENTIVES THAT SHOULD BE CONSIDERED BUT NOT LIMITED TO: - STATE LOW INCOME HOUSING TAX CREDIT - SALES TAX EXEMPTIONS FOR THE CONSTRUCTION AND OPERATION OF LOW INCOME HOUSING BY PUBLIC AGENCIES THE STATE LEGISLATURE IN ALLOCATING RESOURCES FOR HOUSING SHOULD NOT SPECIFICALLY TARGET AN ACTIVITY AND THEREBY SET ASIDE SMALL AMOUNTS OF FUNDS FOR MANY DIFFERENT SMALL PROGRAMS. THIS JUST INCREASES STATE AND LOCAL COST IN ESTABLISHING RULES, AND APPLYING FOR AND ADMINISTERING THE PROGRAMS. INSTEAD THE LEGISLATURE SHOULD SET GENERAL POLICY PRIORITIES FOR THE USE OF STATE FUNDS AND ALLOW FOR LARGER POOLS OF FUNDS BY WHICH LOCAL, NON-PROFIT AND FOR-PROFIT DEVELOPERS CAN APPLY BASED ON THEIR SPECIFIC ACTIVITIES. A PORTION OF ANY NEW REGIONAL TAX OR FUNDING SOURCE SHOULD BE USED TO ALSO FUND HOUSING ACTIVITIES IN COOPERATION WITH LOCAL UNITS OF GOVERNMENTS. THE AMM RECOMMENDS THAT THE PROPERTY TAX SYSTEM NOT BE USED AS A SOURCE OF NEW HOUSING FUNDS TO MEET STATE AND METROPOLITAN GOALS. A-5 LOCAL HOUSING POLICY There is a great diversity among cities in the metropolitan area. Some cities need more housing for low income persons while other cities need housing for moderate to upper income persons. Cities should have the authority to promote whichever kind of housing is in the public purpose and best interest of a particular city while attempting to provide housing opportunities to households of all income levels. Cities need to have a greater flexibility in financing their housing goals if they are to meet the intent of the Metropolitan Land Planning Act. CITIES SHOULD BE GRANTED SUFFICIENT AUTHORITY AND FLEXIBILITY BY THE LEGISLATURE TO CONDUCT AND FINANCE HOUSING PROGRAMS THAT MEET -22- THEIR INDIVIDUAL HOUSING NEEDS. LOCAL FUNDS CAN BE USED TO LEVERAGE FEDERAL, STATE AND METROPOLITAN RESOURCES WHEN THEY CAN MEET COMMON POLICY GOALS. IT IS NECESSARY TO EXPAND FINANCIAL RESOURCES AVAILABLE AT THE LOCAL LEVEL. INCLUDING BUT NOT LIMITED TO: -REMOVAL OF HOUSING AUTHORITY LEVY LIMITS -REINSTATING THE STATE DEED AND MORTGAGE TRANSFER TAX EXEMPTION FOR PUBLIC AGENCIES -ALLOWING CITIES TO IMPOSE IMPACT FEES A-6 METROPOLITAN HOUSING POLICY The 1991 Metropolitan Council through a specially appointed regional housing task force completed a thorough study of housing needs in the seven-county area. The study concluded that the region is facing critical challenges to its ability to provide decent affordable housing for its population. Demographic shifts, market forces and aging of the regional housing stock will combine in the 1990s to jeopardize many people's opportunity for housing of their choice. Those findings have not been addressed in a comprehensive manner at either the state and/or federal level and the AMM continues to support most of the task force's final report conclusions and is still very concerned with the problems identified in said report. And, it is still the case that individual cities do not have the financial resources to adequately deal with said problems which continue to cause unmet human needs for a good number of citizens in this Metropolitan area. TO BEGIN ADDRESSING THE REGION'S ON-GOING HOUSING PROBLEMS, THE AMM RECOMMENDS THAT: A. ALL CITIES AND THE METROPOLITAN COUNCIL UNDERTAKE COORDINATED PLANNING WITH RESPECT TO CITY AND REGIONAL HOUSING NEEDS INVOLVING BOTH THE PRIVATE AND PUBLIC SECTORS. B. A METROPOLITAN HOUSING AND NEIGHBORHOOD REVITILIZATION FUND BE ESTABLISHED. A SURCHARGE ON THE DEED TAX OR OTHER NON-PROPERTY REGIONAL FUNDING SOURCE OR NON-GENERAL OBLIGATION BOND SOURCE COULD BE USED TO PROVIDE THE FINANCING TO ADDRESS SUCH ISSUES AS ADEQUATE AFFORDABLE RENTAL HOUSING, AFFORDABLE OWNER OCCUPIED HOUSING, PRESERVATION OF AGING STOCK, SHELTER FOR PERSONS WITH SPECIAL NEEDS, ETC. ON A METROPOLITAN WIDE BASIS. C. ADDITIONAL FUNDING BE PROVIDED TO ASSIST CITIES WITH COMPREHENSIVE HOUSING PLANNING AND ITS IMPLEMENTATION. THE ADDITIONAL FUNDING COULD BE CONDITIONED ON A CITY UNDERTAKING, -23- IF IT HAS NOT ALREADY DONE SO, THE SPECIFIED COMPREHENSIVE AND COORDINATED PLANNING AND ANY METROPOLITAN ALLOCATION OF FUNDING COULD BE BASED ON CONFORMANCE WITH REASONABLE STANDARDS. A-7 NEIGHBORHOOD LIVEABILITY Rapidly evolving social, demographic, economic and behavorial changes are converging on many cities creating new challenges that exceed their capacity to deal effectively with their new environments. The challenges cities face, such as deteriorating neighborhoods, crime, and drugs, need the cooperative efforts of public, private and business interests to solve. Cities have expanded public safety, inspection, and health programs; have aggressively repaired and replaced infrastructure; i.e. , replaced streets and public utility lines; have removed diseased trees, redeveloped parks, refurbished or replaced neighborhood civic facilities; and have developed programs to assist low and moderate income families, yet problems continue to grow. Cities should take the lead in developing local and regional strategies that will assist them in dealing with growing neighborhood problems. These strategies should include the following major categories: 1. Physical and structural deterioration of the neighborhood. 2 . Social welfare of the neighborhood. 3 . Educational opportunities. PHYSICAL AND STRUCTURAL DETERIORATION OF THE NEIGHBORHOOD: a. Cities need to evaluate the demographic impact on their housing stock and plan for future rehabilitation or reuse. The demographic impacts may include declining home values, delayed or non-maintenance of housing stock, foreclosed or abandoned housing and the changing of neighborhood character (i.e. An owner-base to a tenant-base) . In a metropolitan area these forces go beyond a city's boundary and may require a more metropolitan view to try to resolve the causes of the problems. b. Cities need to plan for continued upgrading of public facilities (i.e. streets, utilities, parks) even in the face of declining values. This may require statutory authority beyond existing authority. c. Cities need to plan for regulatory enforcement at -24- levels needed to maintain neighborhood quality. If a strong level of enforcement is provided up front it can be an effective relatively low cost long term strategy for maintaining neighborhood quality. d. Cities need to plan for and encourage neighborhood residents' participation in the preservation of the city's neighborhoods. Neighborhood pride can become one of the strongest tools that cities can tap into, provided that other resources are in place that can provide the means by which this energy can focus. e. Cities need to expand their resource base and plan for the targeting of resources to accomplish their long-term strategy for neighborhood preservations. Expanding this resource base will require coordinated efforts at the federal, state, regional and local level. f. Cities need to strengthen their ability to take appropriate legal actions in a swift manner to eliminate deteriorating structures in a neighborhood. Lengthy procedures accelerate damaging impacts blighted structures have on a neighborhood. This should include the expanding use of the housing court to allow for action on single family dwellings and for City code enforcement. g. Cities need to plan for and encourage neighborhood resident's participation in recreational pursuits and activities. Along with the appropriate public facilities for recreation and leisure, there needs to be organized programs and activities to make the best use of these facilities. h. Cities should actively encourage apartment owners and managers to formally organize to create a forum by which owners, managers, city officials, and other interested parties may work cooperatively to establish a climate that would achieve an ongoing relationship among all participants and encourage livable apartment environment. SOCIAL WELFARE OF NEIGHBORHOODS: a. Cities need to evaluate those social issues that directly impact the liveability in a neighborhood (aging, child care, transportation, job training, domestic abuse, etc. ) and plan for long-range systems that will strengthen the liveability of neighborhoods. -25- b. Cities need to become more familiar with the social welfare system and work closely with state and county agencies to emphasize the need of stabilizing neighborhoods and the family units within those neighborhoods. c. Cities need to strengthen the cooperation of individuals and families within the neighborhood to support city initiatives dealing with crime and drug awareness, public health issues (i.e. garbage houses, animal infestation, etc. ) and domestic abuse. d. Cities need to plan for services to neighborhoods that will allow for affordable day care, transportation and job opportunities. The impact of lack of these services has the greatest impact on the low income and elderly households within any neighborhood. e. Cities need to develop programs and/or participate in the development of state and regional programs to lessen the impact that poverty has on the destabilization of a neighborhood. These programs are needed to deal with the broad range of issues rather than one specific activity and can be tailor-made to address a problem by linking activities together (i.e. rent, mortgage assistance or tax breaks tied to rehabilitation loans; rent assistance tied to child care; job training and transportation assistance, etc. ) . EDUCATIONAL OPPORTUNITIES: a. Cities need to encourage, participate in and strengthen the school systems community education outreach programs. These programs provide an opportunity to coordinate school and city efforts to strengthen the liveability of neighborhoods. b. Cities need to work within the education process by providing early childhood education on problems cities face in dealing with social impact on neighborhood liveability. c. Cities need to work closely with secondary and post secondary education systems to encourage job training programs. Such programs can help solve neighborhood problems (i.e. work study with forestry, rehabilitation, maintenance, etc. which will give work experience by providing opportunities in the -26- neighborhoods) . THE AMM RECOMMENDS: 1. WHERE LEGISLATION IS DIRECTED TO ASSIST LOW INCOME PERSONS AND CHILDREN IN POVERTY, LEGISLATORS RECOGNIZE THE LINKAGE BETWEEN HOUSING AND HUMAN SERVICES, JOBS AND TRAINING, HEALTH CARE AND TRANSPORTATION. WHEN THE LEGISLATURE CONSIDERS LOW INCOME PROGRAMS, IT SHOULD TREAT THESE ACTIVITIES IN A COMPREHENSIVE MANNER. 2. THAT THE LEGISLATURE ENACT NECESSARY LEGISLATION TO IDENTIFY AND ELIMINATE ANY BARRIERS THAT WOULD ACT TO DETER PERSONS FROM ACHIEVING 'THEIR GOAL OF ECONOMIC AND PERSONAL SUCCESS FOR THEM AND/OR THEIR FAMILY. 3. THAT THE GOVERNOR, BY EXECUTIVE ORDER, DIRECT HIS DEPARTMENT HEADS WHO ARE INVOLVED WITH ANY ASPECT OF HOUSING AND HUMAN SERVICES TO: A. COORDINATE THEIR OPERATIONS SO THAT THEY IDENTIFY AND REMOVE ANY CONFLICTING REQUIREMENTS. B. ADMINISTRATIVELY, WHERE POSSIBLE IDENTIFY AND REMOVE THOSE BARRIERS THAT ARE FELT TO RESTRICT A PERSON'S ABILITY TO ACHIEVE ECONOMIC AND PERSONAL SUCCESS. 4. THAT THE LEGISLATURE AND THE GOVERNOR ALSO SEEK ANY FEDERAL LEGISLATION AND/OR ADMINISTRATIVE RELIEF IN IDENTIFYING AND ELIMINATING THOSE BARRIERS AT THE FEDERAL LEVEL THAT THWART ECONOMIC AND PERSONAL SUCCESS. A-8 STATE AND OR COUNTY LICENSED RESIDENTIAL FACILITIES (GROUP HOMES) The AMM believes that persons with disabilities are entitled to live in the least restrictive possible environment and should have a range of residential choices throughout the state. The AMM also believes that residential based facilities (i.e. Group Homes) should not be concentrated. Over-concentration of such facilities could have a negative impact on the community and on the facility residents. The AMM believes that the principles contained in this policy are very appropriate and any state legislation pursued should not conflict with the AMM principles. The residents of residential based facilities come from our communities and the AMM believes that cities as one of the major institutions of our society have a responsibility to be a part of the solution by welcoming such facilities on a fair share and rational basis. The AMM believes that cities have a responsibility to be part of the solution, but it also believes -27- that the state has the major responsibility to assure that the residents living in residential based facilities receive care and supervision appropriate to the extent of their disability or their need to be housed in a group facility. The state's deinstitutionalization policy is directly linked to the need for more residential based care facilities in our cities and the state has the responsibility to provide sufficient funding to assure adequate care and supervision of the residents placed in such facilities. The AMM also believes that the state has an obligation to screen clients, particularly in the corrections area, so that persons placed in residential based facilities are not a danger to themselves, fellow residents, or the community. THE AMM BELIEVES THE FOLLOWING PRINCIPLES SHOULD BE IN LAW OR RULE TO REGULATE RESIDENTIAL BASED FACILITIES: -STATE AND COUNTY AGENCIES MUST PROVIDE TIMELY NOTIFICATION TO CITIES WHEN A RESIDENTIAL FACILITY LICENSE IS REQUESTED TO BE ISSUED OR RENEWED IN ORDER TO PROVIDE THE CITY ADEQUATE OPPORTUNITY TO RESPOND. CITIES ALSO NEED TO BE AWARE OF SUCH FACILITIES TO KNOW WHAT SPECIAL CARE IS BEING GIVEN RESIDENTS IN CASE OF PUBLIC SAFETY EMERGENCIES. -STEPS MUST BE TAKEN TO AVOID THE CLUSTERING OF COMMUNITY RESIDENTIAL FACILITIES ATTRIBUTABLE TO ECONOMIC, GEOGRAPHIC OR PROGRAMMATIC EXPEDIENCE. STANDARDS OF NONCONCENTRATION FOR THE STATE OR FOR COUNTY-ISSUED RFP'S SHOULD BE ESTABLISHED. ALL CITIES SHOULD HAVE THE RIGHT TO REGULATE THE DISTANCE BETWEEN GROUP HOMES IN A CONSISTENT MANNER. -THERE MUST BE A REALISTIC ONGOING SCREENING PROCESS TO ASSURE THAT PERSONS PLACED IN A RESIDENTIAL FACILITY WILL BENEFIT FROM SUCH LIVING ENVIRONMENT AND WILL NOT BE A DANGER TO THEMSELVES OR OTHERS. THE LICENSING AUTHORITY MUST BE RESPONSIBLE FOR REMOVING ANY PERSONS FOUND INCAPABLE OF CONTINUING IN SUCH ENVIRONMENT. -FACILITIES LICENSED BY THE CORRECTIONS DEPARTMENT SHOULD NOT BE EXEMPT FROM REASONABLE LOCAL LAND USE REGULATIONS. -A FAIR SHARE CONCEPT AND FORMULA SHOULD BE CONSIDERED WITHIN THE METROPOLITAN AREA, BUT SUCH CONCEPT AND FORMULA MUST BE COGNIZANT OF OTHER FACTORS INCLUDING TRANSPORTATION FACILITIES, JOBS AVAILABILITY, AND OTHER NEEDED SUPPORT SERVICES. -THE LICENSING AUTHORITY AND/OR THE LEGISLATURE SHOULD PROVIDE SOME LATITUDE TO CITIES IN SITING SUCH FACILITIES IN ORDER TO -28- PROVIDE LOCATIONAL SETTINGS THAT WILL BEST MEET THE NEEDS OF THE PROVIDERS, FACILITY RESIDENTS, THE NEIGHBORHOOD AND THE COMMUNITY AS A WHOLE. A-9 LICENSED RESIDENTIAL FACILITIES (GROUP HOMES) INSPECTIONS Cities are frequently requested by the state fire marshal to inspect group homes and day care facilities, which the state has the responsibility for. Also, there are inspections made by the county and/or state for health and licensing purposes. Cities do not care to provide this service since they 1) do not get compensation for performing the inspection, and 2) expose themselves to liability if the city is involved in the inspection. THE AMM RECOMMENDS THAT: THE STATE AND/OR COUNTIES PROVIDE ALL THE INSPECTION REQUIRED BY STATE LAW. IF THE STATE AND/OR COUNTIES WISH TO HAVE CITIES PROVIDE THE INSPECTION ON THEIR BEHALF, THE FOLLOWING CONDITIONS MUST APPLY: CITIES WOULD BE FAIRLY COMPENSATED FOR THEIR WORK. CITIES WOULD HAVE THE AUTHORITY TO ORDER COMPLIANCE AND/OR PROHIBIT THE FACILITY FROM OPENING UNTIL THERE IS COMPLIANCE. THE STATE AND COUNTIES WOULD BE RESPONSIBLE FOR THE RISK MANAGEMENT CONCERNS AND THE CITIES WOULD BE EXEMPT FROM LITIGATION THAT MAY OCCUR. III-B ECONOMIC DEVELOPMENT Cities have an interest in the maintenance of and appropriate enhancements to the economic base of their respective communities. It is the community's economic base which provides; a. ) the tax base and other revenue sources which support the general operations of cities, counties and school districts; b. ) the employment of some or a substantial number of residents and, c. ) the means by which the populus is housed. All metropolitan communities address economic development when it's translated to physical development through their local land use regulations with the individual communities striving for "orderly development" . As a group however , metropolitan -29- communities differ as to development needs and view points, with each community's needs subject to a number of variables. A municipality's ability to both regulate and promote economic development is based on authority established by other organizations and regulations. It is this ability that is of general interest to all Metropolitan communities. The Association of Metropolitan Municipalities (AMM) is the principal policy action group acting on behalf of its member cities. As such it is appropriate that AMM present the policy issues and concerns to those organizations that set the rules. As noted economic development for local governments is not just a matter of more tax base for the community but entails tools to promote, regulate and service the development. Promotional means include Housing and Redevelopment Authorities, Economic Development Authorities, Port Authorities, tax increment financing, revenue and general obligation bonds, condemnation and the Star Cities Program. Regulation includes its comprehensive planning and land use functions. Servicing include water, sewer, streets and other municipal services. B-1 CITIES RE-DEVELOPMENT AND ECONOMIC DEVELOPMENT RESPONSIBILITIES: The Twin City Metropolitan Area contains over 50% of the population of the State of Minnesota and is the major source of the economic vitality of this state. At the same time, the cities of Minneapolis and St. Paul, along with the older suburbs are facing the ongoing need for providing economic development opportunities for the lower income residents of their respective communities. There is also the need for the redevelopment of neighborhoods and commercial and industrial areas to revitalize the decaying areas of these cities, which is causing disinvestment. In view of the fact that cities have the primary responsibility for economic development and to accomplish the above goals, cities need fiscal tools so they can address these issues on a timely and effective basis. One of the major keys for reducing poverty in decaying areas is to provide access to good paying jobs such as those associated with manufacturing enterprises. It is important to provide incentives or other tools to help retain or introduce manufacturing business into economically distressed areas. The most effective program that the central cities have had at the state level has been the Urban Revitalization Action Program -30- (U.R.A. P. ) . This program was very easy to administer. Many inner-ring suburban communities with deteriorating job bases and aging housing stock asked for similar legislation in the past and feel that it would work well to address their housing and related economic development needs - including a targeted jobs program also. THE AMM URGES APPROVAL OF A NEW WORKABLE STATE ENTERPRISE ZONE OR A MANUFACTURING JOB OPPORTUNITY ZONE INCENTIVE PROGRAM FOR CITIES WHOSE MANUFACTURING JOB BASE IS ERODING. THE AMM ALSO URGES THE LEGISLATURE TO ENACT A NEW VERSION OF THE URAP PROGRAM THAT INCLUDES ALL CITIES WITH THE CHARACTERISTICS AND DEMOGRAPHICS THAT MEET DEFINED CRITERIA. SUCH CRITERIA SHOULD INCLUDE FACTORS SUCH AS POVERTY RATES, AGE OF HOUSING, UNEMPLOYMENT RATES, INCOME LEVELS, ETC. WE ALSO RECOMMEND THAT ONCE A CITY HAS BEEN DESIGNATED A URAP ELIGIBLE COMMUNITY, IT BECOMES AUTOMATICALLY ELIGIBLE FOR ANY BENEFITS THAT WOULD BE AVAILABLE UNDER ANY FEDERAL OR STATE ENTERPRISE ZONE LEGISLATION AND/OR ANY OTHER PROGRAM TARGETED TO CITIES WHOSE CHARACTERISTICS AND DEMOGRAPHICS INDICATE THERE ARE NEEDS THAT CANNOT BE MET WITHOUT STATE AND OR FEDERAL ASSISTANCE. B-2 EQUAL TREATMENT OF CITIES. The AMM believes that all cities irrespective of size or location should be treated fairly with respect to the availability and use of state authorized economic development programs, including redevelopment tools, and programs and other state funding. NEW OR REVISED PROGRAMS DESIGNED TO ADDRESS SPECIFIC ECONOMIC CIRCUMSTANCES WITHIN CITIES OR COUNTIES SHOULD USE PROBLEM DEFINITION AS THE CRITERIA FOR PARTICIPATION AS OPPOSED TO GEOGRAPHIC LOCATION, SIZE OR CITY CLASS, ETC. B-3 TAX INCREMENT FINANCING. Tax Increment Finance (TIF) has enabled cities to plan and carry out housing, economic development, and redevelopment projects on their own initiative. TIF represented, prior to 1990, the most feasible and effective strategy or tool exercised by cities to preserve and improve their own physical and economic environments. TIF is virtually the only tool available to most cities for positive self intervention to curb the spread of blight and to encourage and manage sound economic development which is so vital to provide jobs and to maintain a healthy tax base. Over the past several years, however, TIF authority has been seriously limited, and, as a result, the ability of cities to -31- engage in needed development and redevelopment has been sharply reduced. The state needs to acknowledge that cities are the primary governmental unit responsible for economic development to create jobs and help stabilize the state's economy, redevelop blight and decay, develop affordable rental and owner-occupied housing, and clean up pollution within cities. TIF has proven to be the most effective tool for cities in fulfilling these needs, and some of the restrictions need to be removed to allow these efforts. The LGA/HACA aid penalty should not apply to all TIF districts. If the Legislature is not willing to remove it, cities should not be restricted in their means of paying for the penalty. The general fund of a city should not be responsible for this penalty, and the Legislature should remove the prohibition on developer payment of the penalty. TIF should be improved and must be preserved for use by all cities irrespective of geographical location and any limitations should be based on demographic criteria. THE AMM ENCOURAGES THE LEGISLATURE TO MAKE POSITIVE CHANGES TO THE TAX INCREMENT FINANCING LAWS. -ALLOW POOLING FOR REDEVELOPMENT AND POLLUTION DISTRICTS. -ALLOW CREATION OF POLLUTION DISTRICTS FOR CLEAN-UP CONTAMINATED SOILS. -ELIMINATE THE LGA AND HACA PENALTY FOR REDEVELOPMENT AND POLLUTION DISTRICTS. -PROVIDE AUTHORITY FOR AN EFFECTIVE, WORKABLE MANUFACTURING TIF DISTRICT. -ALLOW REDEVELOPMENT AND RENEWAL DISTRICTS TO BE REDESIGNATED AS A POLLUTION DISTRICT IF CONTAMINATION REQUIRING SIGNIFICANT CLEAN UP COSTS IS FOUND. B-4 PROPERTY TAX/VALUE ABATEMENT AUTHORITY Minnesota Cities have the prime governmental responsibility for economic development. While cities have the responsibility, by statute and default, they have very few tools to carryout that responsibility. The major existing tool is Tax Increment Financing (TIF) and its effectiveness has been diminished by legislative actions in recent years. The AMM believe additional tools are needed and would support legislation which authorizes cities to abate either property taxes or property value. The AMM believes only abatement efforts to preserve tax base, -32- promote job creation or retention, redevelop blighted areas and to promote affordable housing should be eligible for abatement. Criteria should be developed to guarantee that these tools would have accountability by both the local governments and the property owners. Programs such as homestead credit, "this old house", the abatement authority for enterprize zones, and the new contamination tax for pollution cleanup have all set the precedent for a coordinated system of value and tax abatements. Currently, many property owners are discouraged from making substantial improvements to their property because of the offsetting penalty of increased taxes. THE AMM SUPPORTS THE CREATION OF TWO TYPES OF ABATEMENT AUTHORITY TO FACILITATE REDEVELOPMENT AND JOB CREATION. PROPERTY TAX ABATEMENTS SHOULD BE AVAILABLE FOR ALL TYPES OF PROPERTY TO ABATE THE TAXES THAT ARE CAUSED BY INCREASES IN VALUE WHICH ARE DUE TO IMPROVEMENTS THAT ARE MADE TO THE PROPERTY IF SUCH PROPERTY IS PART OF A REDEVELOPMENT AGREEMENT BETWEEN THE CITY AND THE PROPERTY OWNER. PROPERTY VALUE ABATEMENTS SHOULD BE AUTHORIZED FOR TARGETED REDEVELOPMENT WHICH OCCURS IN "PRESERVATION AND REHABILITATION ZONES" WHICH WOULD BE ESTABLISHED BY CITIES TO INCLUDE A NUMBER OF BLIGHTED PROPERTIES. SUCH ZONES COULD BE CREATED BASED ON DEFINITIVE CRITERIA SUCH AS AREAS WITH DECLINING PROPERTY VALUES, LOW HOUSEHOLD INCOMES, ETC. , AND SHOULD BE TARGETED TO RESIDENTIAL AND EMPLOYMENT/INDUSTRIAL PROPERTY ONLY. B-5 LOCAL OPTION FOR DEVELOPMENT ORGANIZATION STRUCTURE. There have been previous legislative initiatives which would have the effect of forcing cities to have a combined, single development authority for housing and economic development and redevelopment activities. The proponents argue that the intent of such legislation is not to restrict local development activities but to help assure coordination and cooperation at the local level . We believe cities ought to have the maximum flexibility in determining which type or types of local agencies are the most appropriate to meet the desires and unique needs of different cities. There is a possibility that a bill similar to the previous bill will be introduced again. THE AMM SUPPORTS LEGISLATION WHICH WOULD ENABLE CITIES TO HAVE A SINGLE, COMBINED DEVELOPMENT AUTHORITY AS LONG AS IT IS OPTIONAL. IF THE LEGISLATURE BELIEVES THAT IT IS IN THE `PUBLIC INTEREST' TO HAVE A SINGLE, COMBINED DEVELOPMENT AUTHORITY, IT SHOULD PROVIDE INCENTIVES TO ENCOURAGE CITIES TO ADOPT THAT OPTION. SUCH ACTION SHOULD NOT BE MANDATED NOR SHOULD A CITY BE PENALIZED IF IT DOES -33- NOT CHOOSE SUCH OPTION. THE AMM ALSO SUPPORTS ENABLING LEGISLATION TO ALLOW CITIES TO CREATE AN AREA (TWO OR MORE CITIES) DEVELOPMENT AUTHORITY. B-6 COUNTY ECONOMIC DEVELOPMENT AUTHORITIES (EDA'S) Some county officials have suggested that Counties be given EDA authority similar to Cities. A bill was introduced in the 1989 Session to grant such authority and may be introduced again. There may be areas of the state, particularly in Greater Minnesota, where it makes sense to do economic development projects on a larger geographic basis such as a County. Such rationale does not exist in the seven-county area in the AMM's judgement. THE AMM DOES NOT NECESSARILY OPPOSE THE GRANTING OF ECONOMIC DEVELOPMENT AUTHORITY TO COUNTIES IN GREATER MINNESOTA BUT OPPOSES SUCH AUTHORITY FOR COUNTIES IN THE METROPOLITAN AREA SINCE IT WOULD BE DUPLICATION OF AUTHORITY PRESENTLY EXERCISED BY CITIES. B-7 DEVELOPMENT OF POLLUTED LANDS Every Minnesota city has contaminated sites within its boundaries that remain underdeveloped and polluted because of the number of obstacles that prevent local government action. Among the roadblocks are liability issues and financing of up-front costs for clean-up. Developers are reluctant to expose themselves to liability. Clean-up costs often exceed the value of the land precluding incentive for private sector intervention. Public sector subsidy is critical. Recent changes in tax increment law have rendered hazardous substance subdistricts useless in providing assistance with clean-up costs, and Superfund dollars are not sufficient to address the need. The Legislature did pass the Land Recycling Act of 1992 which should be of some help. The law is designed to promote the transfer and reuse of contaminated land by offering an exemption from liability to those who are not otherwise liable and who voluntarily cleanup a site. The new law also provides that once a response action is satisfactorily completed, the PCA Commissioner will issue a certificate of completion. The 1993 tax law also made a step toward developing a pollution cleanup program and acknowledged that tax increment financing (TIF) is an appropriate tool to provide a portion of the funding. The AMM however, opposes the Legislature's decision that cities must use general taxes and fees from their city residents to provide a portion of the cleanup funding to be eligible for -34- contamination grants and use of TIF authority. Cities should have the right to clean-up polluted private property without penalizing all city taxpayers. THE AMM SUPPORTS LEGISLATION THAT WOULD: -CREATE ADDITIONAL FINANCING METHODS TO ADEQUATELY FUND A STATEWIDE CLEANUP PROGRAM. -REQUIRE THAT CONDEMNATION COMMISSIONERS CONSIDER THE COST OF CORRECTING POLLUTION PROBLEMS IN DETERMINING THE FINAL AWARD VALUE OF THE PROPERTY. -AUTHORIZE CREATION OF TIF POLLUTION DISTRICTS (SEE POLICY III-B3) . B-8 BUILDING PERMIT FEE SURCHARGE Local units of government levy a one half percent surcharge on building permits which is paid to the State to operate the State Building Codes and Standards Division. Until the 1991 Legislature changed the law at the request of the Governor, any excess fees over actual operating costs were proportionately rebated to local units to help pay for Building Officials training and continuing education costs. Local units of government are facing tough financial times and need every available resource, especially that which could be considered local money. THE AMM RECOMMENDS REINSTATING THE LANGUAGE PROVIDING THAT UNUSED BUILDING PERMIT SURCHARGE FEES IN EXCESS OF STATE BUILDING CODE DIVISION COSTS BE RETURNED TO LOCAL UNITS OF GOVERNMENT. III-C LAND USE PLANNING Land use regulation by cities in the Metropolitan Area has been governed by the Municipal Planning Act (MS 462) and the Metropolitan Land Planning Act (MS 473) . While not a perfect framework, these acts have worked well for the vast majority of cities in the metropolitan area. Land use control is more than just one of the many powers exercised by cities and occupies a significant part of the work of city councils and their staff. It has a significant impact on other community regulations, tax base, economic development and redevelopment. It is a driving force for creating service needs . Land use regulation is the common thread which runs through most of a city's functions and operations. Proposed legislation, which would have superceded existing law and created a uniform land planning law for cities, towns and counties was introduced in the 1987 through 1990 legislative sessions under the sponsorship of the Governor's Advisory Committee on State-Local Relations (ACSLR) . The AMM -35- successfully opposed those proposals because they would have diluted the authority of local elected officials; established a new legal framework which could have rendered moot much of the existing case law and existing codes and ordinances; created conflict with some provisions of the metropolitan land planning act; and reduced the flexibility and discretion of local officials to manage development within cities. A special AMM task force worked for over two years in developing a compromise proposal beneficial to metro cities as well as to the counties, townships and outstate cities. The task force's work was completed in late 1991 and a bill was introduced in the 1992 session which embodied the task force's work. No comparable bill was introduced in the 1993 session. THE AMM WILL SUPPORT A UNIFORM LAND PLANNING ACT THAT IS CONSISTENT WITH THE PROVISIONS OF THE COMPROMISE PROPOSAL DEVELOPED BY THE AMM LAND USE PLANNING TASK FORCE THAT WAS EMBODIED IN THE 1992 DRAFT BILL. -36- IV METROPOLITAN AGENCIES PAGE 37 THROUGH 53 IV METROPOLITAN AGENCIES IV. PHILOSOPHY WITH RESPECT TO METROPOLITAN GOVERNMENTAL AGENCIES Many challenges AMM cities face in the 1990s are beyond the financial and staff resources of a single city. Therefore, it is recognized by the AMM that when such questions arise, it is in the organization's interest that all concerned units of government cooperate and work together in reaching solutions. There are a few issues which because of their complexity or cost encompass the concerns of the entire metropolitan area. The region may need to deal with these issues through a metropolitan governance system. The AMM strongly believes that this system must act in cooperation with local governing bodies. The theme of this effort is that the metropolitan agencies and local government officials are partners, with each respecting the roles of the other when addressing metropolitan wide problems and issues. IV-A PURPOSE OF METROPOLITAN GOVERNMENTAL AGENCIES The diversity and political differences in our metropolitan area results in the need for a regional service delivery system to provide certain services or portions of services to most effectively and efficiently address the needs of the residents. There is also a need for planning on a metropolitan basis which must be done in cooperation with local government. THE ASSOCIATION OF METROPOLITAN MUNICIPALITIES AFFIRMS IT SUPPORT FOR THE CONCEPT OF A METROPOLITAN GOVERNANCE SYSTEM WHEN APPROPRIATE. THE PRIMARY AND PREDOMINATE PURPOSES OF THE METROPOLITAN GOVERNANCE SYSTEM SHOULD BE TO FACILITATE THE COORDINATED PLANNING AND DEVELOPMENT OF THE METROPOLITAN AREA; TO PROVIDE REGION-WIDE SERVICES, WITHOUT DUPLICATING THOSE PROVIDED BY LOCAL GOVERNMENT, THAT ARE BEYOND THE CAPABILITIES OF LOCAL GOVERNMENTAL UNITS TO CARRY OUT INDIVIDUALLY OR JOINTLY; TO PROVIDE REGION-WIDE PLANNING AS NECESSARY AND WITH THE COOPERATION OF AFFECTED LOCAL GOVERNMENT UNITS AND TO FULFILL OTHER SPECIFIC RESPONSIBILITIES AS DELEGATED BY THE STATE AND FEDERAL GOVERNMENTS. IV-B CRITERIA FOR EXTENSION OF METROPOLITAN AGENCIES AUTHORITIES Any efforts by metropolitan agencies to expand their powers or authority must be carefully considered and limited in focus with in-depth review by all those impacted by the proposed changes. THE LEGISLATURE, WHEN GRANTING THE METROPOLITAN AGENCIES ADDITIONAL AUTHORITY, SHOULD CAREFULLY STATE THE SPECIFIC AUTHORITY BEING GRANTED. ANY EXPANSION OR EXTENSION OF AUTHORITY SHOULD BE CONSIDERED -37- ONLY WHEN AT LEAST ONE OF THE FOLLOWING CONDITIONS EXIST: -THE SERVICE, FUNCTION, OR ACTIVITY HAS BEEN SHOWN TO BE NEEDED AND IT CAN BE DEMONSTRATED THAT IT CANNOT OR IS NOT BEING EFFECTIVELY OR EFFICIENTLY PROVIDED THROUGH EXISTING GENERAL PURPOSE UNITS OF GOVERNMENT; -INTERVENTION ON A REGIONAL BASIS IS NEEDED FOR PROTECTION OF THE REGION'S INVESTMENT IN AN EXISTING METROPOLITAN SYSTEM. IV-C STRUCTURES, PLANNING, IMPLEMENTATION AND FUNDING OF METROPOLITAN SERVICES AND PROGRAMS. The Metropolitan Council was created by the Legislature in 1967 to coordinate "the planning and development" of the Metropolitan Area. The Council was mostly advisory, but was given responsibility for regional policy development and coordination in the areas of wastewater treatment and disposal, land transportation and airports. The Council was given limited approval authority for development proposals which were of metropolitan (regional) significance. The Council was not given direct operational authority and instead the Legislature created two new Metropolitan Commissions (MWCC and MTC) and restructured the MAC to operate and provide regional services. The Metropolitan Council's responsibility has expanded subsequently to include regional parks and open space, solid waste, approval authority for controlled access highways and for certain elements (airports, transportation, parks and open space, and sewers) of local comprehensive plans. C-1 POLICY PLANNING - POLICY IMPLEMENTATION The historic legislative intent concerning separation of responsibility for metropolitan policy planning and policy implementation should be continued. THE METROPOLITAN COUNCIL MUST BE A PLANNING AND COORDINATING BODY. REGIONAL POLICY AND PROGRAMS SHOULD BE IMPLEMENTED AND/OR OPERATED BY EXISTING METROPOLITAN OPERATING AGENCIES AND/OR GENERAL PURPOSE UNITS OF LOCAL GOVERNMENT WHEN PRACTICAL. NEW METROPOLITAN OPERATING AGENCIES OR COMMISSIONS SHOULD ONLY BE CREATED WHEN THE SERVICE OR FUNCTION TO BE PROVIDED HAS BEEN SHOWN TO BE NEEDED AND IT CAN BE DEMONSTRATED THAT IT COULD BE MORE EFFECTIVELY PROVIDED THROUGH A NEW STRUCTURE RATHER THAN THE EXISTING STRUCTURES. C-2 FUNDING FOR REGIONALLY PROVIDED SERVICES The Metropolitan Council and the Metropolitan Agencies funding has changed over time and is a mixture of property taxes, user fees and federal and state revenues. Occasionally there has been some -38- discussion to replace these multiple sources with a single new revenue source. THE AMM BELIEVES IT IS APPROPRIATE TO CONTINUE TO FUND THE REGIONAL AGENCIES AND ACTIVITIES BY THE EXISTING COMBINATION OF USER FEES, PROPERTY TAXES, STATE AND FEDERAL GRANTS. THE AMM BELIEVES THIS METHOD PROVIDES BETTER OVERSIGHT OF EXPENDITURES BY THE `PAYERS' AND THEREFORE OPPOSES THE IMPOSITION OF A SINGLE NEW REVENUE SOURCE TO REPLACE THE PRESENT FUNDING SOURCES. C-3 REGIONAL TAX RATES AND USER FEES The Legislature controls the tax levies of the Metropolitan Council and the other Metropolitan Agencies. We believe it should continue to do so. User fees are generally controlled by the Metropolitan Agency collecting the fees (MWCC, MTC and MAC) . The setting of user fees and the process for setting fees has generally not been considered a problem by local officials except for isolated cases. The AMM believes that: USER FEES FOR REGIONAL SERVICES SHOULD NOT BE DICTATED BY THE LEGISLATURE BUT SHOULD BE DETERMINED BY THE OPERATING AGENCY PROVIDING THE SERVICE. ALL FEES SHOULD BE REVIEWED BY THE METROPOLITAN COUNCIL ON A PERIODIC BASIS TO ENSURE THAT SUCH FEES ARE CONSISTENT WITH REGIONAL SYSTEM PLANS AND GOALS. AN OPEN VISIBLE PROCESS/PROCEDURE SHOULD BE EMPLOYED FOR USER FEE CHANGES UNDER GUIDANCE OF THE METROPOLITAN COUNCIL WHEN CHANGES ARE NECESSARY AND IN CLOSE COOPERATION WITH THOSE IMPACTED BY THE FEE CHANGES. IV-D COMPREHENSIVE PLANNING - LOCAL AND REGIONAL INTERACTION Planning is an ongoing process, and several precepts should be kept in mind by Local Units of Government, Metropolitan Agencies and the State as this metropolitan planning process continues. METROPOLITAN SYSTEM PLANS MUST CONTINUE TO BE SUFFICIENTLY SPECIFIC IN TERMS OF LOCATIONS, CAPACITIES, AND TIMING TO ALLOW FOR CONSIDERATION IN LOCAL COMPREHENSIVE PLANNING. THE REGIONAL INVESTMENT IN METROPOLITAN PHYSICAL SERVICE SYSTEMS (TRANSPORTATION, WASTEWATER TREATMENT, AIRPORTS, AND PARK AND OPEN SPACE) SHOULD CONTINUE TO BE PROTECTED BY PREVENTING ADVERSE IMPACT ON THESE SYSTEMS DUE TO LACK OF INTEGRATION AND COORDINATION BETWEEN REGIONAL AND LOCAL PLANNING. LOCAL OFFICIALS MUST HAVE EFFECTIVE INPUT INTO THE REGIONAL PLANNING PROCESS ON AN ONGOING BASIS. DESIGNATION OF OTHER REGIONAL PLANS AS METROPOLITAN SYSTEMS PLANS SHOULD NOT BE MADE UNLESS THERE IS A COMPELLING METROPOLITAN AREA -39- WIDE PROBLEM OR CONCERN THAT CAN BEST BE ADDRESSED THROUGH A REGIONAL SYSTEM DESIGNATION. IV-E COMBINED SEWERS - SEPARATION The three communities of Minneapolis, St. Paul and South St. Paul still have some combined waste water and storm water sewers which create overflows of untreated waste water in the Mississippi River during heavy rains and storm water runoff periods. These cities have over many years been progressing with sewer separation projects paid for primarily through local tax levies. The Federal and State governments are pressing the issue of meeting certain water quality standards in the Mississ_ _ pi River which apparently cannot be done until separation is complete. The state has provided additional funding since the 1985 Legislative session to help pay for the speed up. For the first five years of the program Federal funds were also available to assist in the program. Since 1990, however, there have been no Federal funds. IT IS AMM POLICY THAT IF THE STATE GOVERNMENT CONTINUES TO PURSUE THE ACCELERATED COMBINED SEWER SEPARATION PROGRAM IN THE THREE CITIES, THAT IT ALSO CONTINUE TO PROVIDE FUNDING TO ENSURE THAT NEITHER LOCAL PROPERTY TAXES NOR METROPOLITAN SANITARY SEWER COSTS ARE INCREASED DUE TO THE ACCELERATED BUILD EFFORT. THE PROGRAM TO DATE HAS PROCEEDED ACCORDING TO THAT POLICY. AS THE CSO ISSUE HAS SIGNIFICANT IMPLICATIONS, BOTH FOR STATE FINANCES AND FOR DEVELOPMENT IN THE METROPOLITAN AREA, THE AMM REQUESTS THAT ITS BOARD OF DIRECTORS HAVE THE OPPORTUNITY TO REVIEW AND COMMENT ON ANY SIGNIFICANT CHANGE IN THE FINANCING OR IMPLEMENTATION PLANS FOR THE SEPARATION PROJECT. SINCE PART OF THE REASON FOR THE ACCELERATED PROGRAM IS TO MEET FEDERAL STANDARDS, AMM SUPPORTS THE CONSIDERATION OF THE ESTABLISHMENT OF A CSO FUNDING PROGRAM AND THE ADDRESSING OF THE MOST EFFICIENT MANNER AND REGULATORY FRAMEWORK WHEN THE CONGRESS CONSIDERS THE REAUTHORIZATION OF THE FEDERAL CLEAN WATER ACT. IV-F METROPOLITAN COUNCIL BUDGET/WORK PROGRAM PROCESS The Metropolitan Council has an annual budget over 15 million dollars and its programs impact the two million plus people living in the metropolitan area. The budget document should convey sufficient information so that the residents can determine what `product' is being produced and how much the `product' costs and the benefits. The budget process should commence early enough in the annual adoption cycle so that the residents can provide meaningful input as to goals and priorities. F-1 BUDGET DETAIL AND SPECIFICITY -40- The annual budget and work program document has been improved in recent years and contains more detail and specificity which enables public interest groups to make more reasoned recommendations but further improvements can be made. MANDATED OR NON-DISCRETIONARY PROJECTS, PROGRAMS AND ACTIVITIES SHOULD BE IDENTIFIED. PROJECTS, PROGRAMS AND ACTIVITIES WHICH MAY BE DISCRETIONARY BUT ARE TOTALLY OR MOSTLY FUNDED BY A FEDERAL OR STATE GRANT SHOULD ALSO BE IDENTIFIED. INFORMATION SHOULD CONTINUE TO BE PROVIDED AS TO PREVIOUS YEARS EXPENDITURES AND PROGRESS FOR ON-GOING PROGRAMS, PROJECTS AND ACTIVITIES. F-2 RELIANCE ON PROPERTY TAXES There is a trend of increased reliance on the property tax to support Council activities. Federal grants formerly funded about two/thirds of the Council Budget and the local property tax about one/third. The federal portion has now shrunk to about 20 percent and the property tax has increased to over 60 percent. THE COUNCIL SHOULD MAKE A THOROUGH EXAMINATION OF THE PROGRAMS FORMERLY FUNDED BY FEDERAL GRANTS OR NON-LOCAL FUNDS TO DETERMINE IF THEY ARE STILL NECESSARY AND WORTHWHILE WHEN ONLY LOCAL DOLLARS ARE INVOLVED. ADDITIONALLY THE COUNCIL SHOULD SEEK TO DIVEST ITSELF OF SERVICES THAT IT PERFORMS FOR THIS AREA, IF SUCH SERVICES ARE PERFORMED BY STATE AGENCIES FOR THE BALANCE OF THE STATE, OR SEEK STATE FUNDING FOR THOSE SERVICES. SOME AREAS WHICH NEED TO BE EXAMINED INCLUDE SOLID WASTE, HEALTH CARE, HUMAN SERVICES PLANNING, ETC. F-3 PROGRAM EVALUATION The Council usually levies the maximum or close to the maximum tax levy allowed. It is difficult for `outsiders' to determine if internal evaluation is being performed to ascertain the effectiveness or necessity of council programs or if they are being continued because 'they have always been done. ' THE AMM BELIEVES THAT EVERY MAJOR COUNCIL PROGRAM/PRIORITY SHOULD MEET FOUR TESTS: -THE ISSUE OR PROBLEM BEING ADDRESSED IS IMPORTANT TO THE WELL BEING OF THE REGION. -COUNCIL INTERVENTION OR ACTIVITY WILL PRODUCE A POSITIVE RESULT. -COUNCIL EFFORT OR ACTIVITY DOES NOT DUPLICATE OR SERVE AS A SUBSTITUTE FOR A STATE LEVEL PROGRAM OR EFFORT OR WHAT SHOULD BE A STATE LEVEL ACTIVITY. -COUNCIL IS MOST APPROPRIATE AGENCY TO INTERVENE OR PERFORM -41- ACTIVITY. IV-G METROPOLITAN PARK AND OPEN SPACE FUNDING The Legislature established the Metropolitan Parks and Open Space System in 1974 and provided state/regional fiscal support for the acquisition and development of the Parks System and provided a payment in lieu of taxes to local units of government on a decreasing basis for land removed from the tax rolls. Since the establishment of the system, the State and the Metropolitan area have failed to establish a permanent partnership relative to the status of the Regional Park System bot]. within the region and state. Failure to clearly define the role of regional parks has led to long term instability relative to the acquisition and development of regional parks and created significant funding concerns for implementing agencies as they relate to the operation and maintenance of those regional facilities. G-1 OPERATION AND MAINTENANCE FUNDING Regional parks within the Metropolitan area provide the same basic function as state parks provide in Greater Minnesota. The State has consistently refused to acknowledge this situation and has never provided an adequate amount of funding for the operation and maintenance of regional parks while covering 100 percent of the cost of state parks in Greater Minnesota. AMM RECOMMENDS THAT THE STATE OF MINNESOTA RECOGNIZE THE ROLE OF REGIONAL PARES WITHIN THE METROPOLITAN AREA AND PROVIDE APPROPRIATE FUNDING TO IMPLEMENTING AGENCIES TO ASSIST THEM IN THE OPERATION AND MAINTENANCE OF THE REGIONAL PARRS AND OPEN SPACE SYSTEM. THE STATE OF MINNESOTA SHOULD PROVIDE 40 percent OF THE FUNDING TO OPERATE AND MAINTAIN THESE FACILITIES. G-2 REGIONAL BONDING FOR REGIONAL PARRS The Legislature for the past several years has provided less than 25 percent of the funding requested for acquisition and development by the Metropolitan Council and the MPOSC on an annual basis. To allow for the orderly and planned development schedule for the regional parks and open space system, the Metropolitan Council is considering to use previously granted authority and issue regional bonds to make up part of the shortage. THE AMM BELIEVES THIS ACTION CREATES A DANGEROUS PRECEDENT AND COULD TAKE THE `STATE OFF THE HOOK' IN FUTURE APPROPRIATION CYCLES. THE AMM BELIEVES THAT THE REGIONAL PARKS ARE ESSENTIALLY A SUBSTITUTE FOR STATE PARKS IN THE METRO AREA AND SHOULD BE FUNDED ACCORDINGLY. IN ESSENCE, METRO AREA TAXPAYERS WILL BE PAYING TWICE AND THIS IS NOT EQUITABLE. THE AMM URGES THE METROPOLITAN COUNCIL TO REDOUBLE ITS EFFORTS TO OBTAIN AN -42- EQUITABLE SHARE OF STATE FUNDING TO SUPPORT THE REGIONAL PARRS AND OPEN SPACE SYSTEMS. IV-H WATER RESOURCE MANAGEMENT The AMM recognizes that water is a critical resource for this metropolitan area and it is necessary to plan and manage this resource to assure adequate supply, safeguard the public health, provide recreational opportunities and enhance economic opportunities. Many levels of government have a vested interest • in protecting and managing water resources in an environmentally and economically sound manner. Since many levels of government are involved in water management, it is in the public interest to clearly delineate each level's responsibility to prevent duplication, overlap, and conflicting requirements. This delineation is particularly important to cities since they are the level that ultimately has the most "hands on" responsibility. The aspects of water resources which have received the most attention in recent years are surface water runoff, groundwater quality, water supply and water recharge areas (wetlands) . There is an interrelationship among all of these systems and there is need for coordination in managing them effectively. The AMM • believes that local units of government should retain the basic responsibility for water resources management because they are the level closest to the problems. However, local units need the financial resources, tools and technical expertise to implement this responsibility and may need to look to the state and metro for financial support and technical assistance. H-1 WATER SUPPLY The AMM is in general agreement with the Water Supply Act (Chapter 186) passed in the 1993 legislative session. The thrust of this act is to promote water conservation, require contingency plans for water emergencies and to promote long range planning for local water supplies. As suggested by the AMM, cities retain the basic responsibility and authority for local water supply systems. The Metropolitan Council is encouraged to complete its regional water supply and water data base as soon as possible to provide a framework for local water supply planning. THE AMM DOES NOT SEE THE NEED FOR ADDITIONAL LEGISLATION PERTAINING TO LOCAL WATER SUPPLY PLANNING AT THIS POINT IN TIME. HOWEVER, IF LEGISLATION IS PROPOSED, IT SHOULD BE BASED ON THE FOLLOWING PRINCIPLES: -LOCAL UNITS SHOULD RETAIN THE BASIC RESPONSIBILITY FOR WATER SUPPLY PLANNING AS IN CURRENT LAW. -ADDITIONAL STATE MANDATES SHOULD BE FUNDED BY THE STATE. -43- -NEW STATE IMPOSED REQUIREMENTS AND OR REGULATIONS IMPLEMENTING CHAPTER 186 SHOULD NOT ADD TO LOCAL COSTS AND WHENEVER POSSIBLE SHOULD REDUCE AND/OR MINIMIZE DUPLICATIVE REVIEWS. H-2 SURFACE AND GROUNDWATER WATER MANAGEMENT The AMM supports as a given that no one has the right to pollute either ground or surface water resources and in order to safeguard the public health and environment, it is necessary to preserve our water resources as critical state resou- es. Most Water Management Organizations (WMO) and locate units or government have done a good job of dealing with surface and groundwater management issues and have the authority and ability to continue to do so in a cost effective manner. These existing mechanisms should continue to be used to the greatest extent possible to address surface and groundwater management problems; instead of creating a new system or a new organization, but they need the financial resources and tools to meet this responsibility. While the AMM does not see the need for any new urban water management organization, it is clear that the current system contains duplicative review and approvals of local plans and development projects/proposals and should be streamlined. The AMM believes that the systems for review and approval of surface water management planning and the review and approval process for "permitting projects" is rife with duplicative reviews and time consuming delays. THE AMM WOULD SUPPORT THE FOLLOWING INITIATIVES/ACTION: -TIMELY COMPLETION OF METROPOLITAN COUNCIL RESPONSIBILITIES AS DEFINED IN MS 473.157 SO THAT WMO'S AND CITIES CAN FULFILL THEIR SURFACE WATER MANAGEMENT RESPONSIBILITIES. -A THOROUGH ASSESSMENT OF THE BOARD OF WATER AND SOIL RESOURCES (BWSR) STRUCTURE AND AUTHORITIES TO ASCERTAIN IF IT SHOULD CONTINUE TO BE THE APPROVAL AND OVERSIGHT AGENCY FOR SURFACE WATER MANAGEMENT PLANNING AND ACTIVITIES IN THE METROPOLITAN AREA. -A THOROUGH ASSESSMENT OF THE METROPOLITAN AREA SURFACE WATER MANAGEMENT PLANNING AND PERMITTING PROCESS WITH THE OBJECTIVE OF DEVELOPING IMPROVEMENTS IN CONFLICT RESOLUTION, COORDINATION BETWEEN AND AMONG STATE AND LOCAL AGENCIES, SURFACE WATER PLANNING, AND PROJECT PERMIT APPROVALS. -COMPLETION BY WMO'S AND CITIES OF THEIR RESPONSIBILITIES FOR SURFACE WATER MANAGEMENT PLANNING AS DEFINED IN MS 103 B. 225-235 AS SOON AS POSSIBLE TO ADDRESS THE WATER QUALITY ISSUES PLAGUING THE MINNESOTA, MISSISSIPPI AND ST. CROIX RIVERS. -44- -COMPLIANCE BY LOCAL UNITS OF GOVERNMENT IN OUTSTATE MINNESOTA WITH THE SAME STANDARDS AND REQUIREMENTS FOR SURFACE WATER MANAGEMENT AS THOSE IMPOSED ON LOCAL UNITS WITHIN THE METROPOLITAN AREA. IF ANY LEGISLATION IS CONSIDERED FOR SURFACE WATER MANAGEMENT AS A RESULT OF THE BEFORE MENTIONED ASSESSMENTS (STUDIES) IT SHOULD BE BASED ON THE FOLLOWING PRINCIPLES: -THE LEGISLATURE SHOULD PROVIDE FUNDS IF IT MANDATES ANY ADDITIONAL WATER MANAGEMENT PLANNING OR IMPLEMENTING ACTIVITIES BY LOCAL UNITS OF GOVERNMENT. THE CSO PROGRAM SHOULD BE VIEWED AS THE PRECEDENT FOR THE STATE HAVING A FINANCIAL INTEREST IN PROVIDING FUNDS FOR CAPITAL PROJECTS RELATED TO STORM WATER RUNOFF. -LOCAL UNITS OF GOVERNMENT SHOULD RETAIN THE BASIC RESPONSIBILITY FOR SURFACE AND GROUNDWATER MANAGEMENT AS THEY ARE THE LEVEL CLOSEST TO THE PROBLEM. -NEW STATE REQUIREMENTS SHOULD NOT ADD TO LOCAL COSTS AND DUPLICATIVE REVIEWS/APPROVALS SHOULD BE ELIMINATED. H-3 REGIONAL WASTEWATER (SEWER) TREATMENT SYSTEM A bill was introduced in the 1992 session which would have changed the methodology for allocating the costs of the metropolitan wastewater collection and treatment system. The alleged intent of the bill was to slowdown and reverse the decay and blight which has and is occurring in some of the older, developed parts of this metropolitan area. The AMM is concerned with the problem but does not believe that changing the way the metropolitan sewer system is financed from a regional to a subregional system has any relevance with respect to the problems identified and opposed the before mentioned bill. The AMM was part of a major study effort in 1985, that resulted in the uniform cost system that is currently in place for the metropolitan sewer system. THE METROPOLITAN WASTEWATER COLLECTION AND TREATMENT SYSTEM HAS BEEN A MAJOR COMPONENT OF AN INTERGRATED LOCAL-REGIONAL SYSTEM WHICH HAS HELPED IMPROVE THE QUALITY OF THE WATER IN MANY OF THE MAJOR WATER RESOURCES OF THIS AREA SUCH AS LAKE MINNETONKA, THE MINNESOTA, MISSISSIPPI AND ST. CROIX RIVERS, WHITE BEAR LAKE, ETC. IT IS IMPORTANT THAT CHANGE NOT BE MADE TO THIS REGIONAL SYSTEM THAT COULD LEAD TO ITS BREAKUP OR TO DIMISH ITS EFFECTIVENESS. SINCE ALL `USERS' BENEFIT EQUALLY THROUGHOUT THE SYSTEM THE REGIONAL RATES SHOULD BE UNIFORM THROUGHOUT THE SYSTEM AND A SUB-REGIONAL SYSTEM OF ALLOCATING THE REGIONAL SYSTEM COSTS SHOULD NOT BE REINSTITUTED. -45- H-4 WATER TESTING CONNECTION FEE The States' Safe Drinking Water Act contains a per hook up fee of $5. 21 passed in Laws of Minnesota 1992 , Chapter 513 , Article 6, Section 2 which is to be used to pay for water supply testing as mandated by Federal Law. This per user fee creates an inequitable and unfair service fee compared to testing cost for large communities with only a few supply points that need testing. In addition, there are many non-community and private water supply users such as trailor courts being test 1 which are not paying the connection fee imposed by the Department of Health. This fee should be re-examined by the legislature and the law changed so that each community and user pays only its fair share. This may necessitate the state to provide some financial assistance to smaller communities with multiple supply sources. THE AMM REQUESTS THE LEGISLATURE TO CHANGE THE WATER SUPPLY TESTING CONNECTION FEE TO BE FAIR AND EQUITABLE AND TO REFLECT THE ACTUAL COST OF SUPPLY TESTING WITHIN THE COMMUNITY. ALSO, NON COMMUNITY AND PRIVATE SYSTEMS SHOULD PAY ALL OR PART OF THEIR TESTING COST. IV-I WASTE STREAM MANAGEMENT The problem of managing the waste stream (for all types of waste) is and will continue to be one of the major social environmental problems during this decade. We are rapidly running out of space (capacity for land disposal) in the metropolitan area and there are no general disposal facilities in this state for Hazardous Waste. We are also learning that for many materials incineration may not be a good environmental alternative to landfill disposal. The existing waste management system centralizes responsibility at the state level for hazardous waste but requires the cooperation and support of all levels of government and the private sector. The solid waste system for the metropolitan area is essentially a three-tiered system: cities control and regulate collection; counties are responsible for `siting' new landfills, developing abatement plans, developing processing facilities and regulating existing landfills; and the Metropolitan Council provides grants and has regional planning and coordinating responsibilities. The systems were intended to foster and encourage abatement, recycling and resource recovery for as much of the waste stream as possible and then to assure environmentally sound disposal for the remaining waste. In spite of a great deal of cooperation and coordination among and between the various levels and units of government and the private sector, some major problems appear on the horizon. -46- Much has been accomplished during the past decade in improving the waste stream management system. Much remains to be done and any future legislation should take into account the following precepts. I-1 INTEGRATED WASTE STREAM PLANNING The disposal of solid waste is a multifaceted problem which will require the cooperation and participation of all levels of government and the private sector to effectively develop a solid waste system which is cost effective and environmentally sound. To achieve such a system, all elements of the waste management hierarchy (reduction, reuse, recycling, composting, incineration, landfilling) must be utilized. In the area of packaging, the system should make the distinction between transport packaging, primary or necessary packaging and secondary or excess packaging. Further, it must be realized that an effective "system" begins before materials become "waste" and, as such, a comprehensive view of the entire life cycle of products is needed in order to succeed. -THE AMM ENDORSES THE CONCEPT THAT THE "GENERATORS" OF WASTE MUST BEAR THE RESPONSIBILITY FOR FUNDING ITS DISPOSAL. "GENERATOR" INCLUDES THE MANUFACTURERS OF PRODUCTS WHICH BECOME WASTE, THE SELLERS OF PRODUCTS WHICH BECOME WASTE AND THE CONSUMER OF PRODUCTS WHICH BECOME WASTE. -THE AMM ENDORSES THE CONCEPT THAT SINCE GOVERNMENT IS RESPONSIBLE FOR SOLID WASTE DISPOSAL, IT HAS A LEGITIMATE INTEREST IN BEING INVOLVED IN OVERALL WASTE STREAM MANAGEMENT. THIS MEANS THAT GOVERNMENT'S INTEREST BEGINS BEFORE MATERIALS BECOME "WASTE." -THE AMM ENDORSES A WASTE MANAGEMENT HIERARCHY WHICH INCLUDES REDUCTION, REUSE, RECYCLING, COMPOSTING, INCINERATION AND LANDFILLING. FURTHER, A COMPREHENSIVE SYSTEM MUST INCLUDE A MIXTURE OF ALL THESE ELEMENTS AND SHOULD NOT RELY SOLELY ON ANY ONE ELEMENT. -THE AMM ENCOURAGES MORE ATTENTION BE GIVEN TO THE ALTERNATIVES OF REDUCTION, REUSE AND RECYCLING BY ALL LEVELS OF GOVERNMENT. -THE STATE SHOULD FUND THE DEVELOPMENT AND IMPLEMENTATION OF AN EDUCATION PROGRAM, WHICH ACTIVELY ENCOURAGES CITIZENS TO RECYCLE, COMPOST, REUSE AND REDUCE WASTE GENERATION. -LEGISLATION SHOULD BE INITIATED WHICH WOULD ESTABLISH RECYCLED CONTENT OR RECYCLABILITY GOALS FOR ALL PRODUCT PACKAGING MATERIALS, INCLUDING FOOD AND BEVERAGE CONTAINERS. LEGISLATION SHOULD BE INITIATED WHICH WOULD PROVIDE FINANCIAL INCENTIVES TO MANUFACTURERS, RETAILERS OR CONSUMERS FOR REDUCING -47- PACKAGING VOLUME, USING RECYCLED MATERIALS IN ITS FABRICATION, OR, PARTICULARLY IN THE CASE OF FOOD AND BEVERAGE CONTAINERS, FACILITATING ITS RETURN. FEES, TAXES, OR DEPOSITS ON PACKAGING MATERIALS SHOULD BE CONSIDERED WITH THESE COSTS WAIVED WHEN CONTENT GOALS ARE MET, VOLUMES ARE MINIMIZED, OR EFFECTIVE MATERIALS RETURN SYSTEMS ARE IN PLACE. THE NET REVENUE GENERATED FROM FEES/TAXES ABOVE ADMINISTRATIVE COSTS SHOULD BE USED TO PROMOTE OR ENHANCE LOCAL PROGRAMS TO REDUCE, REUSE, RECYCLE PACKAGING MATERIALS. -THE AMM OPPOSES ANY LEGISLATION WHICH ::JUL.D LIMIT LOCAL INITIATIVES IN WASTE STREAM MANAGEMENT UNLESS AN OVERALL STATE OR METROPOLITAN WIDE SYSTEM IS ESTABLISHED WHICH ACCOMPLISHES THE SAME GOAL OR OBJECTIVE. -THE AMM SUPPORTS COMPOSTING AS A TECHNIQUE FOR REUSE OF YARDWASTES AND OTHER APPROPRIATE COMPONENTS OF THE SOLID WASTE STREAM. GIVEN THE PROHIBITION ON LANDFILLING YARDWASTE, RESIDENTS AND REFUSE HAULERS NEED TO BE PROVIDED WITH CONVENIENT LOCATIONS TO DEPOSIT BRUSH AND OTHER YARDWASTES FOR PROCESSING. COUNTIES WITH ASSISTANCE FROM THE STATE OR METROPOLITAN COUNCIL SHOULD BE RESPONSIBLE FOR LOCATING AND OPERATING COMPOSTING FACILITIES AND MUST NOT DELEGATE THIS RESPONSIBILITY TO CITIES WHICH DO NOT WISH TO OPERATE SUCH FACILITIES. MINOR CHANGES MAY BE NEEDED IN THE EXISTING OVERRIDE PROCESS TO ENABLE COUNTIES TO SITE THESE TYPES OF FACILITIES. I-2 HAZARDOUS AND DANGEROUS WASTE MANAGEMENT The improper disposal of hazardous wastes, through landfilling or incineration, poses a major risk of water and air pollution. Much has been done to monitor the generation and proper disposal of hazardous waste by business and industry, and these efforts should continue. However, the reduction, control and proper disposal of household hazardous wastes is a significant concern which needs to be addressed. (A. ) HOUSEHOLD HAZARDOUS WASTE. THE AMM SUPPORTS A STATE-WIDE PROGRAM TARGETED TO THE REDUCTION AND PROPER MANAGEMENT OF HOUSEHOLD HAZARDOUS WASTES, INCLUDING: -PERMANENT DROP OFF OR DISPOSAL SITES - STRATEGICALLY AND CONVENIENTLY LOCATED THROUGHOUT THE STATE WHERE ALL TYPES OF HOUSEHOLD HAZARDOUS WASTES CAN BE TAKEN FOR PROPER HANDLING, PROCESSING, OR DISPOSAL. -EDUCATIONAL AND POINT-OF-SALE INFORMATION FOR CONSUMERS NOTIFYING THEM OF THE HAZARDOUS NATURE OF CERTAIN PRODUCTS AND THE IMPORTANCE OF PROPER HANDLING. -48- -INVOLVEMENT OF THE GENERATORS (RETAILERS) IN THE MANAGEMENT SYSTEM FOR HOUSEHOLD HAZARDOUS WASTES TO HELP ASSURE PROPER HANDLING AND PROCESSING. -INFORMATION TO CONSUMERS ALERTING THEM TO NON-HAZARDOUS SUBSTITUTES FOR HAZARDOUS HOUSEHOLD PRODUCTS. -ENCOURAGEMENT WHICH COULD INCLUDE INCENTIVES TO MANUFACTURES TO PRODUCE LESS HAZARDOUS PRODUCTS FOR USE IN HOUSEHOLDS. THE TOP PRIORITY OF THE HOUSEHOLD HAZARDOUS WASTE MANAGEMENT SYSTEM IS TO REDUCE THE AMOUNT PRODUCED. (B. ) COMMERCIAL/INDUSTRIAL HAZARDOUS WASTE. THE AMM SUPPORTS CONTINUED EFFORTS AT THE STATE LEVEL TO PROPERLY MANAGE INDUSTRIAL HAZARDOUS WASTES, INCLUDING THE RE-USE, RECOVERY AND RECYCLING OF AS MUCH HAZARDOUS WASTE AS POSSIBLE. THAT WHICH CANNOT BE RE-USED OR REPROCESSED MUST BE DISPOSED OF IN AN ENVIRONMENTALLY SOUND MANNER. KNOWING FAILURE TO PROPERLY DISPOSE OF HAZARDOUS MATERIALS (INCLUDING "IJ•T.EGAL DUMPING") , SHOULD RESULT IN CRIMINAL LIABILITY FOR BOTH COMPANIES AND INDIVIDUALS. MANUFACTURERS SHOULD ALSO BE ENCOURAGED TO REDUCE THE AMOUNT OF HAZARDOUS MATERIALS USED IN THEIR MANUFACTURING PROCESSES. I-3 METROPOLITAN/COUNTY RESPONSIBILITIES. As noted previously, the cities have the responsibility for waste collection including implementing and managing most recycling type programs. The other waste stream management responsibilities are basically split between the Metropolitan Council and the Counties. Considerable progress has been made in recent years in certain parts of the waste stream management system particularly those aspects for which cities are responsible. But several significant problems beyond the control of cities are becoming evident including: the inability of the counties to site needed waste facilities (landfills, transfer stations, compost sites, etc. ) , fluctuating and/or lack of markets for some recyclables, uneven funding among counties to run the low tech systems, and the radical variance in disposal costs throughout the metropolitan area. Some of these problems are urgent and significant changes may need to be made in the waste stream management system in the metropolitan area. Some of the current waste stream management concerns are similar to the concerns which precipitated the formation of other regional commissions. WHILE NOT RULING OUT ADDRESSING THESE CONCERNS WITHIN THE EXISTING INSTITUTIONAL FRAMEWORK, SERIOUS CONSIDERATION SHOULD BE GIVEN TO THE FORMATION OF A REGIONAL SOLID WASTE COMMISSION. SUCH COMMISSION SHOULD INCLUDE LOCAL ELECTED OFFICIALS. MORE ANALYSIS AND STUDY IS NEEDED TO DETERMINE THE TOTAL LIST OF FUNCTIONS TO BE ASSIGNED TO SUCH COMMISSION BUT MOST FUNCTIONS NOW -49- PERFORMED BY THE METROPOLITAN COUNCIL AND THE COUNTIES SHOULD BE GIVEN STRONG CONSIDERATION INCLUDING THE FOLLOWING: -OWNERSHIP (INCLUDING THE ASSUMPTION OF DEBT) OF THE CURRENT MAJOR PUBLIC DISPOSAL AND PROCESSING FACILITIES. -RESPONSIBILITY FOR SITING CERTAIN TYPES OF WASTE PROCESSING AND DISPOSAL FACILITIES. -REGULATION OF DISPOSAL CHARGES (TIPPI __ '/FEE) TO PROVIDE MORE FAIRNESS AND EQUITY. -DISTRIBUTION OF FUNDS TO SUPPORT THE LOCAL RECYCLING PROGRAMS. -DISTRIBUTION OF OTHER GRANT FUNDS NOW MANAGED BY THE METROPOLITAN COUNCIL. -MOST OTHER FUNCTIONS PERFORMED BY THE COUNCIL EXCEPT FOR THE PLANNING FUNCTIONS (LONG RANGE POLICY PLANS, ETC. ) . -COORDINATION OF MARKETING EFFORTS FOR RECYCLABLES. I-4 LOCAL SOLID WASTE MANAGEMENT RESPONSIBILITIES Cities have certain responsibilities in helping to manage and implement an effective solid waste management system including recycling programs and the collection systems. The AMM believes that to date cities, utilizing a variety of collection systems, are doing a good job of managing Local Recycling and Waste Collection. THE RESPONSIBILITIES NOW ASSIGNED TO CITIES FOR SOLID WASTE MANAGEMENT SHOULD REMAIN WITH THE CITIES. THE AMM BELIEVES THAT THE SYSTEM OUGHT TO BE FLEXIBLE AND BASED ON PERFORMANCE STANDARDS AND/OR GOALS RATHER THAN MANDATED TECHNIQUES. I-5 FUNDING The current funding system for solid waste has a number of drawbacks: It does not encourage maximum utilization of the waste disposal hierarchy; it often gives no incentive to individual residents to participate in recycling; it does not differentiate between generators of `clean' waste and `problem' waste; and it has given no assurances that the main sources of funding are related to the entities incurring expenses. -AMM BELIEVES THAT THE FUNDING SYSTEM SHOULD RECOGNIZE THAT ALL METHODS OF DISPOSAL, INCLUDING RECYCLING HAVE A COST. ALSO THE TRUE AND FULL COST OF THE ENTIRE DISPOSAL SYSTEM SHOULD BE RECOGNIZED. -50- -AMM BELIEVES THAT IN GENERAL FUNDING FOR THE SOLID WASTE SYSTEM SHOULD COME FROM THE GENERATORS OF SOLID WASTE. AIL LEVEL -AMM LBESYSTEM AT THE INVESTIGATEDAND THE CONCEPTJAOFFRREES AND/OR TURNABIILITTYTYSHOULD BE SHOULDD INVESTIGATED AND EXPANDED. -IN GENERAL, THE FUNDING SYSTEM SHOULD ENCOURAGE MAXIMUM USE OF THE WASTE HIERARCHY. FOR EXAMPLE IT SHOULD COST MORE TO DISPOSE OF WASTE IN LANDFILLS THAN IN RESOURCE RECOVERY FACILITIES. -AMM SUPPORTS THE CONCEPT THAT MATERIALS WHICH CAUSE SPECIAL PROBLEMS IN THE WASTE STREAM SHOULD BEAR THE COSTS (THROUGH THE COST OF PURCHASING THE MATERIALS) ASSOCIATED WITH THESE PROBLEMS. -AMM ENCOURAGES PROVIDING FINANCIAL INCENTIVES SUCH AS VARIABLE AND DIFFERENTIAL FEES TO RESIDENTS WHO PARTICIPATE IN RECYCLING WHILE MAKING IT CLEAR THAT EVEN RECYCLING HAS A COST. -AMM BELIEVES THAT ANY FUNDING SYSTEM MUST GUARANTEE DISTRIBUTION OF THE MONIES TO ALL ENTITIES INVOLVED IN THE SYSTEM AND RECOGNIZE ALL COSTS ASSOCIATED WITH THE SYSTEM. THIS MEANS A SIGNIFICANT PORTION OF THE FUNDS RAISED THROUGH THE SALES TAX SHOULD BE DISTRIBUTED TO CITIES WHICH OPERATE RECYCLING PROGRAMS. THE AMM ALSO BELIEVES THAT THE ENTIRE PROCEEDS OF TAX ON SOLID WASTE SHOULD BE DEDICATED TO SOLID WASTE ACTIVITIES. I-6 ORGANIZED COLLECTION Organized collection serves as a viable and important method for municipalities to achieve solid waste abatement. It is a type of service agreement that allows cities proper regulatory power over their solid waste collection system. It provides municipalities the opportunity to choose the type of solid waste collection that would best serve their residents. `Just Compensation' legislation is designed to limit municipalities regulatory power in the area of solid waste collection. In placing severe financial penalties on municipalities that undertake organized collection, `Just Compensation' legislation infringes on municipalities rights to establish intangible service agreements for municipal services. -THE AMM ENDORSES THE CONCEPT OF ORGANIZED COLLECTION AS ONE OF SEVERAL VIABLE METHODS FOR MUNICIPALITIES TO ASSERT REGULATORY POWER OVER THEIR SOLID WASTE COLLECTION SYSTEMS. -THE AMM BELIEVES THAT ORGANIZED COLLECTION MUST CONTINUE TO BE AVAILABLE TO CITIES AS THEY CHOOSE A TYPE OF SOLID WASTE COLLECTION SYSTEM THAT WOULD BEST SERVE THE NEEDS OF THEIR RESIDENTS. -51- -THE AMM OPPOSES ANY LEGISLATION THAT WOULD IMPOSE COMPENSATION PENALTIES ON MUNICIPALITIES WHO CHOOSE TO IMPLEMENT A SOLID WASTE COLLFCTION SYSTEM. I-7 HOST CITIES AND CLEANUP RESPONSIBILITIES While solid waste facilities are components of county and regional solid waste management systems, they must be located in individual cities. Because the number of facilities is limited, the effects of hosting these facilities is not equally shared among cities. Most of these effects are negative - an increased likelihood and incidence of water, soil, air, and noise pollution; and increased amount of litter and offensive odors; a greater likelihood of adverse impacts on values of neighboring properties; a need for increased maintenance on public streets and highways; and potential threats to public health and welfare in areas immediate to and along access routes to these facilities. Longer-term impacts may affect cities if the organizations responsible for facility operations cease as financially viable entities. Safeguards need to be enacted for host cities for the operations and clean up responsibilities associated with solid waste facilities. The trend within the metropolitan area has been to internalize present and future costs of solid waste management on current generators of solid waste. These costs should include the extra and adverse financial impacts borne by host communities. Cities host these regional facilities because of accidents of geography. Liabilities for these facilities should be shared across the region. -THE AMM SUPPORTS THE CURRENT COMPENSATION LEVEL ALLOWED THROUGH SURCHARGE FEES AS A MINIMUM LEVEL; THIS COMPENSATION SHOULD BE CONTINUED OR INCREASED. THIS FORM OF COMPENSATION SHOULD BE AVAILABLE TO ALL TYPES OF SOLID WASTE FACILITIES. -THE AMM BELIEVES THE HOST COMMUNITIES SHOULD NOT BEAR A FINANCIAL LIABILITY ASSOCIATED WITH SOLID WASTE FACILITIES. COSTS INCURRED FOR MONITORING OPERATIONS AND CORRECTIVE ACTIONS SHOULD BE BORNE BY FACILITY OPERATORS OR, IN ThE ABSENCE OF SUCH REGULATIONS, BE ASSUMED BY THE STATE OF MINNESOTA. LEGISLATION NEEDS TO BE STRENGTHENED SO AS TO EXEMPT CITIES FROM ANY PRESENT AND FUTURE LIABILITY ARISING FROM OPERATIONS OF SOLID WASTE FACILITIES. LEGISLATION SHOULD FURTHER ESTABLISH THAT PROCEEDS FOR FUTURE REMEDIAL ENVIRONMENTAL ACTIONS BE IN A TRUST FUND. -THE AMM WILL SUPPORT LEGISLATION WHICH CLEARLY ARTICULATES THAT REMEDIAL ENVIRONMENTAL ACTIVITIES ARE THE RESPONSIBILITY ONLY ON THE PERMITTED OPERATOR AND/OR THE STATE OF MINNESOTA. -52- -THE AMM BELIEVES THAT LOCAL PROPERTY TAXING AUTHORITIES SHOULD NOT BE FORCED TO LEVY HIGHER PROPERTY TAX RATES BECAUSE SOLID WASTE FACILITIES MAY DEPRESS PROPERTY VALUES WITHIN PARTS OF THE TAXING JURISDICTION. OPERATORS SHOULD BE REQUIRED TO PAY ADDITIONAL FEES COMMENSURATE WITH THE ADVERSE TAX REVENUE IMPACT RESULTING FROM LOWER VALUES ON NEIGHBORING PROPERTIES. -THE AMM WILL SUPPORT MEASURES WHICH REQUIRE THAT OPERATORS OF SOLID WASTE FACILITIES GUARANTEE THE PURCHASE VALUE OF PROPERTIES WHICH ARE INFLUENCED BY THEIR PROXIMITY TO THOSE FACILITIES. -THE AMM WILL SUPPORT STATE AND FEDERAL LEGISLATION THAT CLARIFIES THAT MUNICIPAL SOLID WASTE IS NOT A HAZARDOUS SUBSTANCE, THAT ENABLES LOCAL GOVERNMENTS INVOLVED IN CLEANUPS TO HAVE THE OPPORTUNITY TO SETTLE THEIR POTENTIAL LIABILITY QUICKLY AND SAFELY. -THE AMM WILL SUPPORT CREATION OF A CLEANUP PROGRAM FOR CLOSED SOLID WASTE LANDFILLS WHICH IS FUNDED SEPARATELY FROM THE STATE SUPERFUND PROGRAM. A POSSIBLE SOURCE OF FUNDING COULD BE A TAX OR FEE ON TOXIC MATERIALS. LOCAL GOVERNMENTS SHOULD BE PROTECTED FROM CLEAN-UP COSTS WHICH DO NOT RELATE DIRECTLY TO THEIR CONTRIBUTION TO THE PROBLEM. -53- V TRANSPORTATION PAGE 54 THROUGH 65 V TRANSPORTATION AMM TRANSPORTATION POLICY STATEMENT The AMM believes that the recent passage of the Federal Transportation Bill (ISTEA) provides the Metropolitan area with a unique opportunity, to rethink Transportation, Transit and Development Plans. It is imperative that as we prepare to move into the next century, our transportation network become multi-modal , offer flexibility, invest significantly in transit, and be designed to manage traffic. Within the last two decades, the number of miles driven per day has doubled. Traffic congestion is expected to increase by 35% by the year 2000, creating nearly 200 miles of severely congested highways. Ridership by bus, car and van pool, continues to decline and the Regional Transit System continues to be inadequately funded. There is a growing awareness that the true cost of driving an automobile, when factoring in energy use, pollution, productivity loss due to congestion, and the resulting cost of motor vehicle accidents, are born by the general public at large not solely the driving public. The majority of peak hour traffic is workers commuting to or from work. Achieving a balance between workers and jobs in a geographic area can reduce the volume of intra-area commuting and balance the directional use of the interconnecting roads. Economic stratification and an aging population is creating a larger pool of transit dependent individuals. Our current transit system is not capable of providing adequate transit services in the entire metropolitan area. Government cannot build its way out of congestion. Local governmental units are facing funding shortfalls which prevent them from adequately maintaining the current transportation network. AMM calls upon the Legislature, MNDOT, RTB, and the Metropolitan Council to develop a more comprehensive transportation program that more closely integrates transit and highways. This coordinated approach at the minimum must be designed to increase accessibility, improve air quality, and serve the transit dependent and handicapped. The AMM supports a comprehensive transportation policy that; i. Incorporates traffic management into local and regional zoning and planning actions; 2 . Encourages traffic management plans by all employers; Creates a series of incentives aimed at increasing vehicle occupancy levels; 4 . Discourages the use of development incentives for any project of significant size that does not contain a comprehensive traffic management plan; 5. Studies the concept of jobs to workers balance in the metropolitan area; and -54- 6. Establishes an adequate dedicated funding source for transit. In addition, local units of government must be provided with adequate funding or authorizing legislation that will allow them to maintain their current investments in the local transportation infrastructure. The following recommended legislative proposals are designed to meet this overall goal . V-A STREET, BRIDGE, AND HIGHWAY GENERAL FUNDING An efficient transportation system is a vital element in planning for physical, economic, and social development at the state, regional, and local levels. Funding for current roadway maintenance reconstruction, and construction of new streets, bridges, and highways in developing areas is a significant major element of a competitive and safe transportation system. Due to past declining state revenues there has been a tendency by the Legislature to divert much needed roadway funds to state general expenditure. This trend must be reversed, especially in light of the Federal Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) . Funding needs to be expanded to not only keep up with inflation and modest program growth, but to provide necessary funds for matching 80/20 projects included in the ISTEA legislation for quality standards will have impact on future project costs. THE AMM URGES THE LEGISLATURE TO PROVIDE AN ADEQUATE LEVEL OF FUNDS SO THAT NEEDED STREET, BRIDGE, AND HIGHWAY MAINTENANCE MAY BE CONTINUED, NECESSARY NEW STREET AND HIGHWAY CONSTRUCTION MAY OCCUR, THE MUNICIPAL STATE AID FUND LEVEL CONTINUES GROWTH, AND REQUIREMENTS OF THE FEDERAL INTERMODAL SURFACE TRANSPORTATION EFFICIENY ACT OF 1991 (ISTEA) CAN BE MET. V-B METROPOLITAN TRANSIT SYSTEM GENERAL FUNDING Because of the large economically diverse and spreadout population of the Twin City Metropolitan Area, it is an absolute necessity to provide an effective and efficient public mass transit service augmented by a variety of programs, such as Rideshare and Project Mobility. Without a good transit system, many elderly and handicapped persons residing in the area primarily because of access to unique services would be almost totally immobile. The new Federal legislation (ISTEA) has established a modern trend by providing over 20% of its total 5 year funding for Transit and allowing a shift of highway funds to transit on a project by project basis. The Americans Disability Act and new air and noise quality standards will impact both the way we do transit as well as the cost. In order to obtain ISTEA funds and to continue providing reasonable transportation opportunities, the legislature must increase transit funding priority. -55- THE AMM REQUESTS THE LEGISLATURE TO CONSIDER THE METROPOLITAN TRANSIT PROGRAMS AS HIGH PRIORITY AND FUND THEM SUFFICIENTLY TO TAKE FULL ADVANTAGE OF FEDERAL ISTEA FUNDING AS WELL AS MEET THE DEMANDS OF ADA AND AIR AND NOISE STANDARDS. FUNDING ALTERNATIVES SHOULD INCLUDE BUT NOT BE LIMITED TO THE STATE GENERAL FUND, MOTOR VEHICLE EXCISE TAX OR OTHER SALES TAX, THE FARE BOX, PROPERTY TAX, AND SERVICE EFFICIENCIES. V-C TRANSPORTATION SERVICES FUND A Transportation Services Fund was created for minimal activities and with minimal funding in 1991. The Legislature should adopt the recommendations of the Transportation Study Board and Minnesota Transportation Alliance which suggests using MVET to fund statewide transit needs and related non highway construction activities currently funded from the Users Fund. These are Dept. of Public Safety, Tourism, River Parkway, Safety Council and several others which are at best questionable gas tax expenditures. THE AMM ENDORSES THE CONCEPT OF REMOVING NON HIGHWAY CONSTRUCTION AND MAINTENANCE ACTIVITIES FROM THE STATE TRUNK HIGHWAY FUND AND THE EXPANSION OF A TRANSPORTATION SERVICES FUND FOR THESE ACTIVITIES. V-D TRANSPORTATION (HIGHWAY AND TRANSIT) FUNDING ALTERNATIVES The need for both Highway and transit funding has been increasing significantly in the past several years while the resources dedicated or generally used for these purposes have either not kept pace or been diverted for other state priorities. The new Federal Transportation Act (ISTEA) has shifted emphasis by providing significant funds for Transit and also placed increased burden on states by increasing the local match to 20% . Transit needs in the Metropolitan Area have become critical since in some cases Highway expansion is physically or financially prohibitive, therefore capacity expansion can best be solved by transit alternatives implementation in these cases. Funding should be multi source with growth capability. Therefore, the AMM believes it is time to solve the problem on a permanent basis. THE AMM SUPPORTS A COMBINED STRATEGY OF GAS TAX INCREASES TO KEEP PACE WITH HIGHWAY MAINTENANCE AND CONSTRUCTION NEEDS AND A DEDICATED MVET OR OTHER TAX SOURCE FOR TRANSIT FUNDING EXPANSION. IF THE LEGISLATURE CANNOT ASSURE STATUTORY DEDICATION OF SOME FUNDING MECHANISM THEN A CONSTITUTIONAL SOLUTION SHOULD BE IMPLEMENTED. AS AN ADDITION TO THE TRADITIONAL GAS TAX AND TO PROVIDE FUNDING FOR BOTH HIGHWAYS AND TRANSIT, THE AMM WOULD SUPPORT A SALES TAX ON GASOLINE AT THE PUMP WITH THE ENTIRE 6.5 CENTS ALLOCATED TO -56- TRANSPORTATION. AS PART OF THE COMBINED STRATEGY, THE STATE LEGISLATURE SHOULD CONSIDER USING ITS BONDING AUTHORITY TO PROVIDE TRANSPORTATION INFRASTRUCTURE SINCE THE RELATIONSHIP BETWEEN INTEREST RATES AND INFLATION IS SUCH THAT IT IS ADVANTAGEOUS TO MAKE SUCH STRATEGIC INVESTMENTS. V-E HIGHWAY AND TRANSIT INTEGRATION PLANNING An efficient Transportation System consists of both high quality roadway and high quality multimodal transit opportunities. These two elements must be considered together from early planning through implementation in Metropolitan areas. The AMM understands that to some degree this is done in planning and that transit is considered somewhat when determining funding priorities for highway construction. Although, there has been improvement it is felt that more integration of highway and transit planning is needed. THE AMM URGES EXISTING AGENCIES INVOLVED IN MAJOR HIGHWAY AND TRANSIT PLANNING AND IMPLEMENTATION TO INTEGRATE THESE ACTIVITIES TO ENSURE AN EFFICIENT TRANSPORTATION SYSTEM. CRITERIA USED TO DETERMINE HIGHWAY FUNDING FOR CONSTRUCTION AND EXPANSION SHOULD BE REVIEWED AND UPDATED TO REQUIRE INCLUSION OF MULTIMODEL TRANSIT OPPORTUNITIES AND INTEGRATED TRAFFIC MANAGEMENT SYSTEMS WHEN APPROPRIATE. V-F HIGHWAY JURISDICTIONAL REASSIGNMENT, TURNBACKS, AND FUNDING Many commissions, boards, organizations, and now the legislatively reconstituted Transportation Study Board have studied or are to study the possibility of reclassifying many roadways in the state as to appropriate use classifications and jurisdiction. This reassignment in the metropolitan area is estimated to shift $6. 1 million annually from the state and $1.2 million annually from the counties to the cities for an increase of $7 . 3 million annually for general maintenance and life cycle treatment (i.e. sealcoat, overlays, etc. ) . Current state law provides that the state and/or county may declassify a trunk highway and turn it back to a local unit of government. The only provision is that it must be in good condition. The unit receiving the highway does not have the option to refuse title and must, thereafter, maintain the turned back road. Although reassignments or turnbacks may be added to the MSA system, there may not be enough maintenance funds for the new mileage, and the receiving city will lose the opportunity of new MSA road designation until its mileage allocation catches up to the turnback mileage. Reassignment may be appropriate, but will have a profound effect on city finances and future ability to maintain good road systems, especially if certain criteria are not met and finance alternatives established, Therefore, the AMM -57- offers the following as a guide to continuing discussion and ongoing studies. THE AMM SUPPORTS JURISDICTIONAL REASSIGNMENT OR TURNBACK OF ROADS ON A PHASED BASIS BASED ON FUNCTIONAL CLASSIFICATION AND OTHER APPROPRIATE CRITERIA SUBJECT TO A CORRESPONDING MECHANISM FOR ADEQUATE FUNDING OF ROADWAY IMPROVEMENTS AND CONTINUING MAINTENANCE SINCE CITIES DO NOT CURRENTLY HAVE THE FINANCIAL CAPACITY OTHER THAN SIGNIFICANT PROPERTY TAX INCREASE TO ABSORB THE ADDITIONAL ROADWAY RESPONSIBILITIES WITHOUT NEW FUNDING SOURCES. THE EXISTING MUNICIPAL TURNBACK FUND IS NOT ADEQUATE BASED ON CONTEMPLATED TURNBACKS. V-G TRANSPORTATION UTILITY Many cities are experiencing aging infrastructure, especially streets which are in need of replacement but because of few funding options continue to deteriorate. Chapter 429 bonds issued without election require a minimum of 20 percent assessment. However, the courts require a benefit proof that the assessment has actually increased the property value by the assessment value. For street replacement this is nearly impossible. Strict levy limits have prohibited full levy for the cost but further a general levy for full cost of street replacement might be very unfair to non benefiting property as well as higher valued classes of property. A general referendum to replace streets in one aging neighborhood would undoubtedly not pass in an entire city. The only remaining option is to legislatively establish a new funding mechanism that creates fairness. The best model available is a utility district similar to one the created for stormsewers which allows assessment annually for shared use on a volumn basis. THE AMM REQUESTS THE LEGISLATURE TO ESTABLISH A TRANSPORTATION UTILITY AUTHORITY FOR CITIES TO USE FOR STREET MAINTENANCE AND RECONSTRUCTION SIMILAR TO THE EXISTING STORM SEWER UTILITY. V-H '3C' TRANSPORTATION PLANNING PROCESS - ROLE OF ELECTED OFFICIALS The transportation planning process in the Twin City Metropolitan Area has been developed in response to a variety of federal and state laws and regulations. The Metropolitan Council (MC) was formally designated by the Legislature in 1974 (1974 MRA) as the agency responsible for the administration and coordination of said planning process. Included within this designation is the responsibility for long range comprehensive transportation planning commonly referred to as the '3C' process (continuous, comprehensive, and cooperative) . Federal law and regulations required that principal elected officials of general purpose local governments be part of the planning process. When the Legislature designated the MC as the transportation planning agency for the -58- metropolitan area, it also mandated the establishment of an "advisory body" to assist the MC, and Metropolitan Transit Commission (MTC) , and the Regional Transit Board, in carrying out their responsibilities. This advisory body is the Transportation Advisory Board (TAB) and contains 17 local elected officials among its membership of about 30 officials. The Federal Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991 again establishes the need for local elected officials in the 3C planning process. The current elected official participation and '3C' process has worked reasonably well in this Metropolitan Area. THE AMM SUPPORTS THE CONTINUATION OF THE CURRENT LOCAL ELECTED OFFICIALS INVOLVEMENT IN THE '3C' PROCESS THROUGH THE TRANSPORTATION ADVISORY BOARD TO MEET REQUIREMENTS OF THE FEDERAL INTERMODAL SURFACE TRANSPORTATION ACT OF 1991. V-I PRESERVATION OF RAILROAD RIGHT-OF-WAY Minnesota's system of railroad grades is rapidly shifting to a national trunk-line carrier with few branch lines as one line after another is abandoned. Minnesota has witnessed the abandonment of over one-half its rail system since the 1930 peak of 9, 360 miles. Two thousand miles have been abandoned in the past 15 years. These railroads played an important part in our transportation history. The abandonments now represent an equally significant opportunity for future generations. Light rail usage, vegetation reserves of scientific interest, transmission corridors, bicycle and snowmobile trails, access roads to remote natural resources, future highways, pipeline corridors are just a few roles for these abandoned grades. Because some of the most desirable abandonments are no longer available to the public, vigilance is needed regarding the remaining opportunities. THE AMM STRONGLY URGES THE LEGISLATURE TO ENSURE THAT ALL ABANDONED RAILROAD GRADES BE EXPEDIENTLY PRESERVED UNTIL SUCH TIME THAT THE FUTURE PUBLIC USE CAN BE DETERMINED. V-J CITY SPEED LIMITS A bill has been introduced which would grant cities the authority to set speed limits on city roads and streets. This policy of local authority for free standing rural or out state cities may be feasible but could be extremely dangerous and confusing in the metropolitan area. The seven county metropolitan area is made up of 140 contiguous cities and a number of townships. Because of -59- the compactness of cities in this area, it is often impossible to determine when one has crossed a boundary from one city to the next. If one city changes its limits, its neighbor would either have to also change or post many additional signs on each street crossing a boundary. This system would be costly, extremely confusing to individuals, and might cause some legal problems in case of accidents. Therefore, THE AMM SUPPORTS SPEED LIMIT CONTROL OF CITY ROADS AND STREETS AS CURRENTLY PROVIDED BY LAW AND OPPOSES CHANGES TO GRANT GENERAL SPEED LIMIT CONTROL TO INDIVIDUAL CITIES. V-K TRANSPORTATION INCENTIVES/DISINCENTIVES The AMM supports the development of a comprehensive system which will facilitate an increase in the occupancy level of cars and enhance the use of transit within the Metropolitan area. The state legislature is encouraged to consider exclusion from gross income the value of commuter transportation benefits provided by an employer and provide a tax deduction and tax credit for employers who provide commutor transportation benefits to employees. AMM SUGGESTS THE DEVELOPMENT AND PASSAGE OF LEGISLATION THAT INCLUDES A COMMUTER TRIP REDUCTION PROGRAM AND CREATES A SERIES OF TAX INCENTIVES AND/OR IMPACT FEES THAT ENCOURAGES MULTIPLE OCCUPANCY TRANSIT USE. V-L REGIONAL TRANSIT SYSTEM The purpose of a Transportation System is to provide mobility for people and accessibility to and for economic development and services. The most effective system will make maximum use of all transportation alternatives and strategies where they are most appropriate, thus, creating a truly integrated system. Exclusive reliance on only freeways is imprudent and possibly cost prohibitive primarily due to social and economic upheaval of established neighborhoods for right of way acquisition. Transit improvements are imperative, but even with implementation of various load increasing strategies, the capacity is finite and will reach unacceptable saturation limits within the forseeable future. The AMM supports more coordination and integration of Transit and Highway planning and implementation. THE REGIONAL TRANSIT SYSTEM SHOULD BE A COMBINATION OF INTEGRATED TRAFFIC MANAGEMENT SYSTEMS AND BE INCLUDED IN ALL PLANNING DOCUMENTS AT ALL LEVELS INCLUDING ENVIRONMENTAL IMPACT STATEMENT STUDIES. THE SYSTEM COMPONENTS SHOULD INCLUDE HOV LANES, EXPRESS BUSES, AND THE LIGHT RAIL TRANSIT SYSTEM WHICH SHOULD BE BUILT WHEN IT IS -60- APPROPRIATE AND FINANCIALLY FEASIBLE IN EACH CORRIDOR OF THE AREA TO CONNECT RESIDENTS TO JOB, RETAIL, AND COMMERCIAL CENTERS. THE SYSTEM SHOULD ALSO INCLUDE A VARIETY OF TRANSIT MODES, INCLUDING A TAXI SYSTEM, BUSES, PEDESTRIAN AND BICYCLE FACILITIES, AND PARK AND RIDE FACILITIES, ADEQUATE TO CONNECT THE REGIONAL CENTERS, MAJOR TRIP GENERATORS AND COMMUNITIES, BOTH URBAN AND SUBURBAN. BUS SYSTEMS AND ESPECIALLY LRT SYSTEMS SHOULD INCLUDE AMPLE REGIONAL PARK AND RIDE FACILITIES FOR AUTOMOBILES, MOTORCYCLES AND BICYCLES, WITH EASY ACCESS, CONSISTENT WITH THE PLANNING OF A REGIONAL ENTITY TO ACCOMMODATE THE NEEDS OF THE PUBLIC. FEEDER SYSTEMS SHOULD BE A MAJOR CONSIDERATION FOR BUS PARK AND RIDE AND LRT STATIONS. PLANS SHOULD BE CONSIDERED TO USE VAN POOLS AND BICYCLES AS WELL AS WALKING TO FEED THE PARK AND RIDE FACILITIES FOR EXPRESS BUSES AND LRT. ALL TRANSIT MODES AND TRANSPORTATION SYSTEM MANAGEMENT POLICIES SHOULD BE GIVEN EQUAL CONSIDERATION NOW AND IN THE FUTURE IN ORDER TO PROVIDE THE BEST TRANSPORTATION SYSTEM POSSIBLE TO THE METROPOLITAN AREA. THE FINANCING FOR THE REGIONAL SYSTEM SHOULD BE BORNE IN PROPORTION TO THE BENEFIT OR SERVICES RECEIVED. V-M MSA SCREENING COMMITTEE The Metropolitan Highway Districts 5 and 9 were combined in 1989/90 administratively to form one Metropolitan Highway District within the MNDOT structure. By law the MSA screening committee consists of one member from each Highway District and first class city. Technically, the combining of Districts 5 and 9 reduces the membership by one from the metro area. This was not intended by MNDOT. Therefore; THE AMM REQUESTS THAT THE STATUTES BE MODIFIED TO PRESERVE TWO SEATS ON THE MSA SCREENING COMMITTEE FROM THE METROPOLITAN HIGHWAY DISTRICT. V-N METROPOLITAN TRANSPORTATION TAX The AMM membership feels that transportation needs and funding are at a critical point in the metropolitan area and cannot be fully met within current financial or tax resource constraints. Higher occupancy transit systems such as LRT, buses, and other transit facilities must be examined in the context of a total transportation system in need of added resources. A new metro source of funds should not be a signal for reduced current or future state allocations, should be related to use, should be imposed as broadly as possible and to the greatest extent possible -61- on the largest beneficiary of the activity funded, should be a stable funding source, and should be totally dedicated to the funded activity. In addition, a new source of revenue should not restrict future local government options. With the foregoing criteria as a basis: AMM SUPPORTS THE CONCEPT OF A METROPOLITAN TAX FOR METROPOLITAN TRANSPORTATION NEEDS, INCLUDING STREET AND HIGHWAY FACILITIES, HIGHER OCCUPANCY VEHICLE FACILITIES, AND TRANSIT FACILITIES (INCLUDING LRT) WITH THE FOLLOWING CONSIDERATION: (1) TAXES SUCH AS THE MOTOR FUELS, MOTOR VEHICLE EXCISE TAX, SALES TAX, AND PAYROLL TAX SHOULD BE INVESTIGATED; AND (2) THE PROPERTY TAX AND GENERAL INCOME TAX SHOULD NOT BE CONSIDERED. V-O AIRPORT POLICY In 1987 , the Minnesota State Legislature adopted the "Dual-Track" strategy for airport planning. One track focuses on a new airport. option; the other on improvements at the existing airport. The choice will be made when economic, operational, environmental and cost benefits studies are completed by 1996. The Metropolitan Council has identified a search area in Northern Dakota County within which a major airport could be located. Meanwhile, the Metropolitan Airport Commission must develop a long range plan to ensure capacity at the Minneapolis St. Paul International Airport. By the end of 1995, the Metropolitan Airports Commission must also identify a specific airport site within the search area identified by the Metropolitan Council. In 1996, both the Metropolitan Council and the Metropolitan Airports Commission must prepare recommendations on major airport long-term development for consideration by the Minnesota State Legislature. THE AMM RECOMMENDS AND SUPPORTS THE CONTINUATION OF THE DUAL TRACK PROCESS TO ASSURE THAT ALL OPTIONS ARE PROPERLY REVIEWED, AS AIRPORT ISSUES ARE BEING CONSIDERED. THE AMM ENCOURAGES THE METROPOLITAN COUNCIL AND THE METROPOLITAN AIRPORTS COMMISSION, WHETHER CONSIDERING A NEW SITE OR IMPROVEMENTS TO THE EXISTING SITE, TO THOROUGHLY STUDY THE SOCIETAL AND ECONOMIC IMPACTS OF BOTH SITES IN THE FOLLOWING AREAS: ENVIRONMENT, SOCIAL, SITE AREA, GENERAL LAND USE AND COST. THE AMM ALSO ENCOURAGES THE METROPOLITAN COUNCIL AND THE METROPOLITAN AIRPORTS COMMISSION TO CONSIDER THE INFRASTRUCTURE COSTS AT BOTH SITES AS WELL AS THE COST-BENEFITS RATIO OF ALL CLASSIFICATIONS OF PROPERTY FOR THE AREAS SURROUNDING BOTH SITES , AS STUDIES ARE COMPLETED ON POSSIBLE EXPANSION OF THE EXISTINGMINNEAPOLIS-ST. PAUL AIRPORT AND/OR RELOCATION OF THE AIRPORT TO A NEW SITE. V-P BIKEWAY GRANTS PROGRAM Increased support needs to be provided for innovative and inter modal transportation programs. Dependency on the single occupant -62- automobile must be lessened. All Minnesota governments should continue to encourage increased energy conservation, travel-demand management, ride-share programs, bicycle facilities, alternative fuels, and research and education for such options. The attractiveness of bicycle transportation is maximized in urban areas. Traffic calming projects have been shown to reduce the severity and number of accidents, reduce air and noise pollution and improve urban streets for non-motorized users. With the increased awareness of health and fitness, the environmental benefits and cost effectiveness of bicycling, more and more Minnesotans are demanding safe and convenient bicycle facilities. Local governments have expressed interest in enhancing bicycle safety by planning for and adding off road trails, paved shoulders and bicycle storage facilities and safety programs in their communities. The National Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) states that improvements necessary to accommodate other transportation modes are eligible uses of both National Highway system and Surface Transportation Program funds. ISTEA also requires each state to set aside 10 percent of its surface transportation program funds for safety construction activities, (ie, hazard elimination and rail-highway crossings) and 10 percent for transportation enhancements which encompass a broad range of environmentally-related activities. IN KEEPING WITH THE NATIONAL RECOGNITION OF THE NEED TO DECREASE DEPENDANCE ON SINGLE OCCUPANCY AUTOMOBILES, THE LEGISLATURE SHOULD RESTORE FUNDING FOR THE BIKEWAY GRANTS PROGRAM. THE MINNESOTA COMPREHENSIVE BICYCLE PLAN RECOMMENDS THAT "A GRANT PROGRAM BE ESTABLISHED AND IMPLANTED TO DEVELOP BICYCLE FRIENDLY ZONES IN URBAN AREAS. "BICYCLE FRIENDLY ZONES WOULD INCLUDE BUT NOT BE LIMITED TO CONSTRUCTION OF BOTH ON AND OFF ROAD BICYCLE FACILITIES, PUBLIC EDUCATION, PROMOTION AND MONITORING. ON ROAD FACILITIES COULD VARY FROM STRIPPED PAVED SHOULDERS TO DESIGNATED BICYCLE LANES. V-Q OPTOUT In 1981, the Minnesota Legislature established the Transit Service Demonstration Program under Statute 174 . 265 (which was repealed in 1984 as a demonstration program) . Opt-out transit systems operate under Statute 473 . 388 under which they qualify for transit funds equivalent to 90 percent of the property taxes levied for transit in their communities. The legislature recognized that little of the transit monies collected from the suburbs were actually providing those areas with transit services. With changing demographics caused by suburban growth, not only was transit needed, but suburban legislative support was becoming more and more critical for continued transit funding. Opt-out was designed -63- to fill this void by allowing suburbs at the end of transit lines to use up to and including all of 90% of their transit taxes to provide efficient transit services in their areas. The Regional Transit Board (RTB) is responsible for overseeing the opt-out program. The opt-out program includes five transit systems serving 12 metro-area communities. Some issues of regional significance have been identified as areas of concern by the opt-out systems. The regional fare structure should be reviewed annually so that it is realistic. The opt-out systems should have the flexibility of diverging from the metropolitan fare structure, particularly if their services offer features not typically found in regular route or para transit systems. The RTB should encourage the concept of "opt-in" whereby communities otherwise ineligible for opt out may have a greater say in the type of transit service they receive from the MTC instead of "taking what they get. " Such a program would foster the involvement of other municipalities which will benefit the Regional Transit System through services better matched to community needs and increased ridership. THE AMM URGES THE LEGISLATURE TO DIRECT THE RTB TO ANNUALLY REVIEW THE REGIONAL FARE STRUCTURE AND PROVIDE GREATER FLEXIBILITY TO SET FARES COMMENSURATE WITH SERVICE LEVELS, AND ENCOURAGE THE CONCEPT OF "OPT-IN" PROVIDING GREATER MUNICIPAL INVOLVEMENT IN TRANSIT SERVICES. V-R MSAS FUNDING FOR COMBINED CITY STREET DEPARTMENTS The State of Minnesota developed in the late 1950s a system for distributing highway funding to MnDOT, counties, and communities with populations over 5, 000. This system has worked reasonably effectively to construct and maintain an integrated transportation network within the State. In recent years, the State Legislature has established statutes which call for the investigation of benefit that would be obtained through consolidation of services and reallocation of resources. One such area that presents such an option is the consolidation of Public Works and Maintenance departments within cities, townships, and counties. Such an opportunity for streamlining capital expenditures and cost-effective maintenance of an integrated street system might be best served by recognizing such consolidation through the use of the Municipal State Aid System. In that, if two or more governmental units consolidate their maintenance departments, having in effect a Joint Powers Agreement which reflects a single entity for budgeting and operations purposes, then the population of the governmental units participating in such a Joint Powers Agreement should be considered -64- in determining the MSAS funding eligibility of these communities as per MS 162 . 09. THE AMM URGES THE LEGISLATURE TO ENCOURAGE THE IMPLEMENTATION OF COOPERATION AND CONSOLIDATION OF LOCAL GOVERNMENT SERVICES SUCH AS IS ENVISIONED BY MS 375. THE STATE AID SYSTEM STATUTES SHOULD BE AMENDED TO ALLOW FOR THE ELIGIBILITY OF COMBINED POPULATION WITHIN INCORPORATED MUNICIPALITIES HAVING A JOINT POWERS PUBLIC WORKS AND MAINTENANCE DEPARTMENT AND CONTIGUOUS BORDERS, TO QUALIFY FOR MSAS FUNDING UNDER THE MUNICIPAL STATE AID STREET SYSTEM POPULATION CUTOFF RULE OF 5,000. -65- VI ENDORSEMENT POLICIES PAGE 66 THROUGH 74 VI-ENDORSEMENT POLICIES VI-A TAXATION HEARING AND NOTIFICATION LAW THE LEAGUE SUPPORTS A PROPERTY TAX HEARING AND NOTIFICATION PROCESS THAT PROVIDES ACCURATE AND TIMELY INFORMATION TO TAXPAYERS, FITS INTO THE CURRENT BUDGET PROCESS FOR LOCAL GOVERNMENTS, AND IS COST-EFFICIENT. THE PROCESS SHOULD CONTINUE ITS FOCUS ON PROPERTY TAXES RAISED FROM LOCAL TAXPAYERS. STATE GOVERNMENT SHOULD SET AN EXAMPLE, AND BE REQUIRED TO FOLLOW SIMILAR REQUIREMENTS FOR PUBLIC HEARINGS AND NOTIFICATION PROCESSES ON TAX AND BUDGET ISSUES. The state-mandated "truth in taxation" process has existed through four years of local government budget cycles. Both the major changes and the minor tinkering have not substantially improved the process for citizens or for local governments. The League urges the legislature to make the following changes to improve the effectiveness of the process for both taxpayers and local governments officials. * The process should be limited to one official, announced public hearing to discuss the proposed levy. The actual adoption of the levy and budget should take place at a regularly scheduled meeting of the governing body of the city, county, school, or special district. Cities already conduct an open budget development process beginning as early as May and June, and becoming more final with the certification of proposed property tax levies by September 15. * Local governments should be allowed to amend the levy that they preliminarily propose to the county auditor on September 15. Many cities have a difficult time realistically assessing their budget needs to be able to certify a proposed levy and budget by September 15 far ahead of the beginning off the next budget year. The early date, combined with the restriction that prevents the city's final levy from exceeding its preliminary estimate, works against responsible budgeting and forces cities to overestimate their budget needs to avoid potential revenue shortfalls. * As a state mandate, the costs of this requirement should be fully funded by the state. The appropriation made for the 1990 process has not been renewed. Local governments must now find additional funds to finance this state-mandated process from their tight or shrinking local budgets. * Proposed tax information should continue to be provided on the mailed notice; financial data requirements in newspaper advertisement should continue to be excluded. The Legislature should consider eliminating the newspaper advertisement requirement - notices sent to each property owner and posted in each apartment building effectively notifies citizens of the hearings and proposed levies. Tax dollar spent for the cost of publishing advertisements could be better spent on city services for taxpayers. -66- * The title of the requirement should be changed to the taxation hearing and notification law. The current title implies that there was and would be a lack of accuracy and accountability without this process. In addition, the calculations used in the process are frequently misleading and confusing, and challenge the truthfulness and accuracy of the information provided. VI--B STATE ADMINISTRATIVE COSTS THE LEAGUE OPPOSES THE POLICY OF DEDUCTING STATE AGENCY ADMINISTRATIVE COSTS FROM FUNDS WHICH ARE APPROPRIATED FOR PROPERTY TAX RELIEF. IF THE STATE CONTINUES THIS INAPPROPRIATE POLICY, THE COSTS SHOULD BE MORE EQUITABLY BORNE BY THE FULL LOCAL GOVERNMENT TRUST FUND, RATHER THAN ONLY FROM FUNDING FOR LOCAL GOVERNMENT AID. The League believes that all state government expenses should be subject to the standard appropriation review process and be funded directly by specific state appropriation, not by blanket deductions from property tax relief programs and from state grants. Where a state agency is required to recover costs through a state charge-back for services to local units, the state should be required to hold administrative hearings to justify the charges on the basis of the services provided to the individual local units of government. City local government aid (LGA) provides financing for administrative costs for: the Office of the State Auditor, the Department of Administration (IISAC) , the State Demographer, and the Department of Employee Relations. For 1993 LGA, $502, 972 was deducted for these state agencies. In addition, LGA funds, distributed primarily to cities, have been used to finance operations by the state auditor and Department of Administration which are not caused by cities alone, but by all local governments, including cqunties, school districts, and townships. VI--C REFERENDUM LEVIES THE LEAGUE SUPPORTS REPEAL OF REQUIREMENT THAT CITY REFERENDUM LEVIES, UNLIKE GENERAL PROPERTY TAX LEVIES, APPLY TO PROOPERTY MARKET VALUE. IN ADDITION, IT MAY BE INACCURATE FOR A REFERENDUM BALLOT TO STATE "BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A PROPERTY TAX INCREASE. " The state has deliberately designed a system of property classes based on property use, which creates varying tax burdens. The method by which a property tax is adopted should not influence this class rate system. This law makes an inappropriate -67- expenditures only for city governments. Both spending items are components of total city spending and should impact taxpayers comparably. If the legislature wants to adjust tax burdens, changes should be made in the classification system, rather than through the tax base. In addition, the simple statement that taxes will rise as a result of a referendum levy may be false. In cases where the city has reduced their general levy or previous debt is retired, a city's property tax levy may actually decline when compared to the previous year. VI-D COMPARABLE WORTH THE LEAGUE SUPPORTS EFFORTS TO ELIMINATE ANY SEX-BASED DIFFERENCES IN COMPENSATION OF PUBLIC EMPLOYEES BUT ASKS THE LEGISLATURE TO REVISE THE PAY EQUITY STATUTE TO ALLOW LOCAL GOVERNMENTS SUFFICIENT TIME TO COMPLY WITH RECENTLY ADOPTED ADMINISTRATIVE RULES REGARDING COMPLIANCE DETERMINATIONS. ADDITIONALLY, THE LEAGUE URGES THE LEGISLATURE TO AMEND THE STATUTE TO LIMIT THE LAWS APPLICABILITY TO ONLY FULL-TIME EMPLOYEES AND TO CLARIFY THAT SEPARATELY ESTABLISHED GOVERNMENTAL ENTITIES MUST FILE SEPARATE COMPLIANCE REPORTS. The local government pay equity act, first adopted in 1984 , has been frequently amended by the legislature. Significant amendments were adopted in 1990, and in 1991 the legislature authorized the Department of Employee Relations to promulgate rules to assist the Department in determining local government compliance with the statute. These rules, which include several new tests, necessitate many changes to local government compliance efforts, took effect almost a full year after cities and other public employers were required by the statute to submit compliance reports. Cities which are found out of compliance must be granted additional time to comply with these new standards prior to facing imposition of state sanctions which include 5% reductions in financial assistance and $100 per day penalties. The League supports legislative action to delay the implementation deadline to December 1994 . At the very least, the legislature should act to delay imposition of new statistical tests of health insurance contributions, salary range differences, and exceptional service pay programs until December 1994 . The rules address other significant issues not previously dealt with by the legislation, including the definitions of employees and employers covered by the Act. For the definition of employees, the rules use the same definition -68- as in the Public Employees Labor Relations Act (PELRA) . Use of this definition causes two significant problems. First, because local governments use a great number of parttime and seasonal employees in order to effectively and efficiently provide important services, many more jobs will have to be included in compensation systems than is the current practice. This will require much more administrative work in establishing job descriptions and ranking jobs which by their very nature are often impossible accurately describe or value. Second, because benefits, including health insurance programs, are often limited to full-time employees, cities run the risk of being found out of compliance with the pay equity act not because of gender based discrimination, but rather because of valid distinctions between full-time and part-time employment. The League proposes adopting a definition of employee which would not include any employee working less than twenty hours per week on average or which is employed in a position which is filled less than six months in any year. For the definition of employers covered by the Act, the problem is slightly different. The law clearly requires all cities and other political subdivisions of the state to comply. The problem is determining who is the employing agency for a particular group of employees. Historically, employees of certain enterprises such as public utilities, hospitals, nursing homes, and libraries have been considered as separate and distinct from employees of the city. Often, the only connection is that the city council acts somewhat pro forma to ratify the annual budget proposed by the separate entity prior to certification of the tax levy. Unfortunately, it is this feature of formal budget adoption on which the rules focus, regardless of separate payroll systems, personnel rules, salary and benefit systems, etc. The League supports statutory clarification that other aspects of the government structure be considered when making a determination of which governing body is the employer of a group of employees. To be considered separately established, the governmental entities may have separate personnel systems, separate facilities, separate bookkeeping and payroll systems, and no interrelationships other than budget approval and/or financial assistance. In addition, these existing governmental entities must be separately established prior to 1984. VI-E LIQUOR ISSUES THE LEAGUE SUPPORTS REPEAL OF THE PUBLIC HEARING REQUIREMENT FOR CITIES WITH LIQUOR STORES THAT EXPERIENCE LOSSES IN TWO OF THREE CONSECUTIVE YEARS AND SUPPORTS REPEAL OF OFF-SALE HOUR RESTRICTIONS BASED ON PROXIMITY TO FIRST CLASS CITIES WITHIN THE SAME COUNTY. THE LEAGUE OPPOSES THE ESTABLISHMENT OF ONE CLASS OF BEER AND THE -69- OFF-SALE OF WINE IN OTHER THAN LIQUOR STORES. Liquor issues have been consolidated into a single bill in recent legislative sessions. The League generally supports this practice but only if each provision is adequately considered by the legislature and the parties affected are given ample opportunity for input. The League has identified the following issues which may or should be considered by the legislature: 1. Continuation hearings. State law currently requires that a city operating a municipal liquor store hold a public hearing if the store loses money in any two of three consecutive years. this statue, adopted prior to "truth in taxation" hearing requirements, is now duplicative and wasteful and should be repealed or combined with other budget hearings. 2 . Off-sale hours. Minnesota Statue 340A. 504 , Subd. 4 limits off-sales of liquor to 10: 00 p.m. generally, except that cities of the first class and cities within 15 miles of cities of the first class (within the same county) must close at 8 : 00 p.m. Monday through Thursday. Political boundaries make the latter portion of this statue unfair. The League supports repeal of the neighboring city, same county, portion of this statue, and generally believes that cities should be fully authorized to establish hours of sale and be expressly authorized to establish differing license fees for establishment having different hours of operation. VI-F MN. PUBLIC EMPLOYMENT LABOR RELATIONS ACT (PELRA) A. THE LEAGUE SUPPORTS LEGISLATION WHICH MODIFIES THE EXISTING INTEREST ARBITRATION PROCESS TO REQUIRE ARBITRATORS TO GIVE PRIMARY CONSIDERATION TO INTERNAL EQUITY COMPARISONS AND THE IMPACT THAT ANY ARBITRATION AWARD MIGHT HAVE ON THE PERSONNEL COMPENSATION SYSTEMS OF THE CITY INVOLVED IN THE ARBITRATION. FURTHER, THE LEAGUE OPPOSES CONSIDERING ANY ADDITIONAL EMPLOYEE GROUPS AS ESSENTIAL EMPLOYEES. City and other governmental experience with the arbitration process has shown that arbitrated awards generally exceed negotiated settlements. Unlike the state, local governments do not have the authority to reject these arbitrated awards. The legislature should re-examine binding arbitration as a means of determining pay and benefit issues. The goal of any modification to the process should be to ensure that arbitrations do not interfere with other state programs such as pay equity. These should not be any additional employee groups placed in the category of "essential employees. " B. THE LEAGUE RECOMMENDS THAT THE LEGISLATURE REINSTATE THE PREVIOUS DEFINITION OF EMPLOYEES COVERED BY PELRA TO PEOPLE EMPLOYED FOR MORE THAT 100 WORKING DAYS IN A CALENDAR YEAR. -70- The 1983 legislature reduced the time period that part-time employees must be employed before they are considered employees covered by PELRA. This has resulted in higher wages for some part-time employees, and more significantly, has resulted in cities hiring fewer part-time employees. 1991 legislative action in this area has caused further confusion, which may also result in a lessening of job opportunities, particularly for students and the disadvantaged. Additionally, many employees who view their work as temporary or transitory in nature, have been asked to pay their fair share of union dues, even though they receive no benefit from union membership. Recent legislative interest in cost-saving initiatives at the local level could be substantially promoted by a statutory amendment to enable local governments to effectively utilize seasonal employees. VI-G ANNEXATION A. THE LEAGUE SUPPORTS LEGISLATION RESTRICTING FURTHER URBAN GROWTH OUTSIDE CITY BOUNDARIES AND FACILITATING THE ANNEXATION OF URBAN LAND TO CITIES. Public policies which encourage substantial development in non-urban areas and which extend public services beyond existing jurisdictions and service areas are wasteful and counter productive. Additionally, shoreland and prime agricultural land are major natural and economic resources and the state should include as a major objective their preservation and wise use. Particular attention should be given to the issue of development and the delivery of governmental services to urbanizing fringe areas. In the metropolitan area, the Legislature should not modify the existing framework for restricting or guiding development absent careful study and input from metropolitan cities and their associations. State law should continue to encourage the preservation of shoreland and prime agricultural land and discourage the development of such land outside designated growth areas to be served by a city. The League recommends the following: * State statutes regulating annexation should make it easier for cities to annex developed or developing land within unincorporated areas which the annexing city has designated as a growth area. * The legislature should clarify 1992 legislation which allows property owners to initiate an annexation by petition to specifically allow these annexations notwithstanding orderly annexation agreements which might contradict the petition. * Cities should be given the authority to extend their zoning -71- ordinance and subdivision controls up to two miles outside the city's boundaries regardless of the existence of county or township controls, in order to ensure conformance with city facilities and services. VI-H ECONOMIC DEVELOPMENT AUTHORITIES A. THE LEAGUE SUPPORTS THE STATE'S CURRENT POLICY OF LIMITING THE SPECIFIC AUTHORITY AND POWERS OF ECONOMIC DEVELOPMENT AUTHORITIES (EDA) TO CITY GOVERNMENTS. The limited economic development tools available in the state are vital to assist in the creation of jobs and industry across the state, and are concentrated in urbanized governments. The League believes that the Legislature should continue its decision to limit EDA authority to cities as the primary local government responsible for the organizational and financial coordination of development and redevelopment. The state has already determined that city government most efficiently provides governmental services in areas intensively developed for residential, commercial, industrial, and governmental purposes. The League believes that the state should continue to recognize the importance of using and preserving the existing infrastructure that exists within cities, and continue to find that urban development, and all related authority, should remain within cities, managed by city governments. B. THE LEAGUE SUPPORTS LEGISLATION WHICH WOULD PROVIDE CITY ECONOMIC DEVELOPMENT AUTHORITIES (EDAs) THE SAME POWER AND AUTHORITY AS THOSE GIVEN TO PORT AUTHORITIES_ The league urges the legislature to authorize all cities to designate development areas anywhere within their jurisdiction, or to designate area development authorities when they enter into joint powers agreements with other cities. Present law restricts development areas, qualifications, and authority for EDAs. In addition, EDAs should be allowed to issue general obligation bonds for project activities without a referendum. VI-I WETLANDS CONSERVATION THE LEAGUE, ALONG WITH MANY OTHER GOVERNMENTAL ASSOCIATIONS, SUPPORTED PASSAGE OF THE 1991 WETLANDS CONSERVATION ACT. EXPERIENCE GAINED BY ADMINISTRATION OF THE INTERIM PROGRAM AND PARTICIPATION IN THE RULE-WRITING FOR THE PERMANENT PROGRAM INDICATES A NEED FOR ADDITIONAL LEGISLATIVE ACTION. Specifically, the League supports the following legislative initiatives. -72- Remove the $75 limitation on replacement plan reviews. Since all proposals to alter, drain, or fill a wetland involve a substantial expenditure of local staff time, including, but not limited to, professional engineers or hydrologists, any limitation on cost recovery less than actual expenses means that the general taxpayer is subsidizing the proponent of any activity which, by definition is potentially adverse to the environment. Initiate detailed review of costs/benefits of expanding the scope of protected wetlands to include Types 1 , 2 , and 6 and evaluate alternative mitigation methods to compensate for any direct loss from impacts to Type 1, 2, and 6 wetlands. Amend the governmental oversight process so landowners can clearly understand which government unit needs to review a proposal, and refine the system to ensure expedited reviews of proposals consistent with the environmental goals of the program. Provide for state defense and indemnification of local governments administering state laws for any "taking" claims which property owners might allege. Make wetland replacement requirements equal between urban and non-urban land at a 1: 1 ratio. VI-J MSA MILEAGE LIMIT A. IN ORDER TO MORE ADEQUATELY REPRESENT THE CURRENT ELIGIBLE MILES OF CITY STREETS, THE LEAGUE SUPPORTS RAISING THE MUNICIPAL STATE AID SYSTEM (M.S.A.S. ) LIMIT TO 3000 MILES. THIS IS AN ADMINISTRATIVE CHANGE AND WOULD NOT AFFECT THE ACTUAL DISTRIBUTION OF M.S.A. FUNDING. Existing law limits the system to 2,500 miles and total mileage currently in the system is approximately 2, 300. This mileage increase for the system is necessary to accommodate the mileage needs of growing cities which reach the 5, 000 population level and larger cities with growing street systems so that these cities may also receive adequate municipal state aid. B. THE POPULATION FACTOR OF THE MUNICIPAL STATE AID SYSTEM SHOULD BE CHANGED TO REFLECT ANNUAL POPULATION UPDATES BASED ON ESTIMATES FROM THE STATE DEMOGRAPHER OR METROPOLITAN COUNCIL, RATHER THAN FEDERAL OR SPECIAL CENSUS COUNTS. VI-K HIGHWAY DEFINITION - TRANSPORTATION FUNDING IF THE SALES TAX ON GASOLINE IS FOUND TO BE UNCONSTITUTIONAL, THE LEAGUE URGES THE LEGISLATURE TO RESOLVE THE CONSTITUTIONAL USE OF GAS TAX REVENUES EXPANDED USES. UNTIL THIS IS RESOLVED, THE LEAGUE SUPPORTS AMENDING THE STATUTORY DEFINITION OF ROAD OR -73- HIGHWAY, TO INCLUDE OTHER TRANSPORTATION MODES WITHIN "TRANSPORTATION CORRIDORS." THE LEAGUE WOULD THEN SUPPORT A GAS TAX INCREASE ADEQUATE TO MEET THE CURRENT NEEDS OF THESE TRANSPORTATION MODES. Under this funding option, mass transit projects within transportation corridors would be eligible for gas tax revenues if the projects helped to achieve the state's overall transportation goals, maximize ISTEA funding, and reduce pollution to meet the requirements of the Clean Air Act. Eligible transit expenditures would include property, vehicles, and equipment for public bus and rail systems, and their related facilities. -74- VII METROPOLITAN GOVERNANCE REORGANIZATION PAGE 75 THROUGH 78 VII METROPOLITAN GOVERNANCE REORGANIZATION VII-A LEGISLATIVE REORGANIZATION OF METROPOLITAN GOVERNANCE. The Association of Metropolitan Municipalities' Metropolitan Governance Task Force has suggested broad-based changes in the make-up and operation of the Metropolitan Council and Metropolitan Agencies so they may become more responsive and accountable to help lead the metropolitan area into the 21st Century and beyond. The types of recommendations are divided into two main categories: Those requiring legislative action and those needing action by the Metropolitan Council. A-1 RESTRUCTURING OF METROPOLITAN AGENCIES. The AMM believes that to better meet the needs of current and future delivery of regional services and developing and implementing regional policy, some changes should be made to the structures and responsibilities of the regional agencies. The detailed reasons and rationale for such changes are contained in the aforementioned Task Force report. THE AMM RECOMMENDS THE FOLLOWING STATUTORY CHANGES WITH RESPECT TO METROPOLITAN AGENCIES: -REMOVE THE METROPOLITAN SPORTS FACILITIES COMMISSION AS A METROPOLITAN AGENCY SINCE THE BACK-UP TAX LIABILITY IS LIMITED TO ONE CITY WHICH ALSO APPOINTS ALL COMMISSIONERS EXCEPT THE CHAIR, CONTINGENT UPON ITS DIVESTITURE OF LANDS AND PROPERTIES IN CITIES NOT RESPONSIBLE FOR THE BACK UP TAX; -MODIFY THE STATUS OF THE M.A.C. SO THAT IT EITHER BECOMES A TRUE METROPOLITAN AGENCY OR A STATE DIRECTED AGENCY. IF THE BACK-UP PROPERTY TAX IS ONLY LIMITED TO THE SEVEN COUNTY METROPOLITAN AREA, THEN IT SHOULD BE CONSIDERED A METROPOLITAN AGENCY AND ITS COMMISSION MEMBERS APPOINTED BY AN ELECTED METROPOLITAN COUNCIL. THE BACK-UP PROPERTY TAX SHOULD BE STATEWIDE IF THERE IS STATEWIDE REPRESENTATION ON THE M.A.C. AND IF A STATEWIDE ENTITY IS THE APPOINTING AUTHORITY. -GRANT THE METROPOLITAN COUNCIL THE AUTHORITY TO REORGANIZE THE TRANSPORTATION AND TRANSIT STRUCTURE AND OPERATION IN THE REGION. THIS COULD INCLUDE REVISING THE DUTIES AND RESPONSIBILITIES OF THE RTB AND MTC, AND MAY INVOLVE SHIFTING OF FUNCTIONS AND RESPONSIBILITIES BETWEEN THE TWO AGENCIES AND ITSELF. UNDER SUCH REORGANIZATION THE RTB CHAIR SHOULD BECOME PART-TIME AND THE METROPOLITAN COUNCIL MUST NOT BECOME THE SHORT-RANGE, DAY-TO-DAY PLANNING AUTHORITY. RECOMMENDATION FOR ELIMINATION OF EITHER THE -75- RTB OR MTC WOULD REQUIRE SPECIFIC LEGISLATIVE APPROVAL. -GRANT THE METROPOLITAN COUNCIL THE AUTHORITY TO APPROVE THE CAPITAL AND OPERATING BUDGETS OF THE METROPOLITAN AGENCIES A-2 LEGISLATIVE COMMITTEE STRUCTURE FOR METRO ISSUES CONSIDERATION. The state Legislature frequently is asked to review and pass legislation that affects only the seven-county metropolitan area. The AMM has been concerned because in previous years some of the committees making initial decisions affecting only the metropolitan area have had a majority of non-metropolitan area legislators. Both the House and Senate created subcommittees in the last session consisting primarily of metro area legislators to provide initial review and action on metropolitan area specific legislation and issues. THE AMM COMMENDS THE HOUSE AND SENATE FOR THEIR RESPONSIVENESS IN CREATING COMMITTEE STRUCTURES THAT ARE MORE KNOWLEDGEABLE OF METROPOLITAN AREA SPECIFIC ISSUES AND CONCERNS AND URGES BOTH LEGISLATIVE BRANCHES TO CONTINUE COMPARABLE ARRANGEMENTS IN FUTURE YEARS. A-3 SELECTION OF METROPOLITAN COUNCIL/METROPOLITAN AGENCIES MEMBERS. The Metropolitan Council has substantial taxing authority and supervises other metropolitan agencies that have considerably more taxing authority. This taxing ability requires accountability that cannot be achieved through current appointment process. Direct election would give the accountability the citizens need to balance the Council's taxing authority and other responsibilities it now has or may have. As a side benefit, the election process would help address the general lack of understanding about the Metropolitan Council and its role in the region. THE AMM RECOMMENDS THAT METROPOLITAN COUNCIL MEMBERS BE ELECTED DIRECTLY TO THEIR POSITIONS TO BALANCE ACCOUNTABILITY WITH AUTHORITY AND RESPONSIBILITY. (THE ELECTION PROCESS SHOULD BE IN SUBSTANTIAL CONFORMANCE WITH THE TASK FORCE REPORT RECOMMENDATIONS FOR ELECTION OF COUNCIL MEMBERS. ) THE AMM ALSO RECOMMENDS THAT THE METROPOLITAN COUNCIL CHAIR BE ELECTED BIENNIALLY FROM WITHIN THE COUNCIL MEMBERSHIP, NOT APPOINTED BY THE GOVERNOR. THE AMM FURTHER RECOMMENDS THAT THE COUNCIL HAVE THE AUTHORITY TO APPOINT ALL CHAIRS AND MEMBERS TO REGIONAL AGENCIES UNDER THE COUNCIL'S PURVIEW. THESE AGENCIES ARE METROPOLITAN AIRPORTS COMMISSION (M.A.C. ) , METROPOLITAN WASTE CONTROL COMMISSION (MWCC) , METROPOLITAN TRANSIT COMMISSION (MTC) , METROPOLITAN PARRS AND OPEN SPACE COMMISSION (MPOSC) AND THE -76- REGIONAL TRANSIT BOARD (RTB) . IF THE LEGISLATURE DETERMINES THAT THE M.A.C. IS NOT A TRUE METROPOLITAN AGENCY AS REFERENCED IN POLICY A-1, THEN ITS MEMBERS AND CHAIR SHOULD CONTINUE TO BE APPOINTED BY THE GOVERNOR. A-4 REGIONAL RAIL AUTHORITIES/TRANSIT. The regional rail authorities as they affect transit matters in the metropolitan area have outlived their usefulness. No one rail authority has the broad metropolitan perspective to plan a transit system. As a group, the rail authorities duplicate and complicate transit planning of the existing metropolitan agencies. THEREFORE, THE AMM RECOMMENDS THAT THE ROLE OF THE REGIONAL RAIL AUTHORITIES AS INVOLVED IN TRANSIT IN THE SEVEN-COUNTY METROPOLITAN AREA BE ELIMINATED. VII-B RE-ENERGIZING THE METROPOLITAN COUNCIL. The Metropolitan Council was formed to address specific problems, such as providing an adequate sewer system for Minneapolis, St. Paul and the surrounding suburbs, but it had a broader focus. Its mission was to serve the metropolitan area. Its first members took what could be called a pro-active stance and, over time, became involved in issues such as land use planning, parks and open space, and transportation to allow for the orderly expansion of growth in the Twin Cities metropolitan area. During the years since its inception to the present, however, the Metropolitan Council is perceived to have become more politicized and is offhandedly referred to as the "State Department of Metropolitan Affairs. " It has, either by design or happenstance, become an enforcer of rules and regulations. It has become enmeshed in minutia and dealing with the here-and-now, functioning less as an institution of forward-thinking planning. When the Council was created to address the issues of sewers, transit, and parks and open space, it seemed natural for the Council to engage more heavily in the day-to-day activities of the systems and agencies it envisioned. The Council did nothing wrong, per se. Rather, it seemed to institutionalize its vision, which pulled it back from forward-thinking. The AMM believes the Council should become re-energized and is encouraged by the recent actions of the Council to become more visionary and big picture oriented. THEREFORE THE AMM RECOMMENDS THAT: -THE METROPOLITAN COUNCIL CONTINUE TO RE-EMPHASIZE ITS VISIONARY ROLE AND APPOINT A PERMANENT COMMITTEE WHOSE SOLE CHARGE IS TO SEEK OUT OPPORTUNITIES AND CHALLENGES THAT THE COUNCIL MAY ADDRESS. THE COUNCIL HAS THE OPPORTUNITY TO HELP ADVANCE THE METROPOLITAN AREA -77- ROLE AND APPOINT A PERMANENT COMMITTEE WHOSE SOLE CHARGE IS TO SEEK OUT OPPORTUNITIES AND CHALLENGES THAT THE COUNCIL MAY ADDRESS. THE COUNCIL HAS THE OPPORTUNITY TO HELP ADVANCE THE METROPOLITAN AREA INTO THE NEXT CENTURY BY FOCUSING ON VISION AND LONG-RANGE PLANNING; -THE METROPOLITAN COUNCIL WORK ACTIVELY TO GET CITIES AND OTHER ORGANIZATIONS INVOLVED AS MUCH AS POSSIBLE IN THE ACTUAL DELIVERY OF SERVICES. TO THIS END, THE COUNCIL NEEDS TO WORK WITH CITY OFFICIALS TO PROVIDE ASSISTANCE AS NEEDED AND TO GET A LOCAL PERSPECTIVE ON ISSUES; -THE COUNCIL EXAMINE SEVERAL ISSUE AREAS THAT HAVE METROPOLITAN WIDE SIGNIFICANCE. THE COUNCIL WOULD PROVIDE OVERSIGHT AND BE RESPONSIBLE FOR REPRESENTING AGENCIES UNDER ITS CHARGE AT THE STATE LEVEL. IT WOULD FACILITATE PLANNING AND DEVELOPMENT OF THESE ISSUE AREAS. SOME OF THE ISSUE AREAS INCLUDE LAND USE PLANNING AND GROWTH MANAGEMENT; HOUSING, COMMUNITY PRESERVATION AND NEIGHBORHOOD REVITALIZATION; ENVIRONMENT, TRANSPORTATION, HUMAN SERVICES, PUBLIC SAFETY SUPPORT, AND REGIONAL AND LEISURE SERVICES; -THE METROPOLITAN COUNCIL STRENGTHEN THE AUTHORITY OF THE EXECUTIVE DIRECTOR IN RUNNING THE DAY-TO-DAY OPERATIONS AND THAT THE COUNCIL MEMBERS BECOME MORE "BIG PICTURE" ORIENTED AND LESS INVOVLED IN DETAILS. -78- BULLETIN association of metropolitan municipalitiesp Oct. 15, 1993 To: Managers/Administrators FROM: Roger Peterson,Director of Legislative Affairs RE: Changes to proposed 1994 Legislative Policies and Priorities packet. The Board of Directors at its Oct. 14, 1993,meeting made policy change recommendations for membership consideration as indicated below.'gligisidammuswiseisdaysom Previously mailed policy with these changes will be considered at the AMM Policy Adoption Meeting Nov.4, 1993,at the Arden Hills Ramada Hotel(McGuire's).If you have any questions please contact either me or Vern Peterson at 490-3301. 1.Policy III-B-6 County Economic Development Authorities(EDAs). This policy on page 34 is deletedsince it is partially resolved by and partially contradictory to LMC Endorsement Policy VI-H on page 72. 2.Policy VII-A-1 Restructuring of Metropolitan Agencies. Bold paragraph point three has been rewritten to reflect actual expectations for the 1994 legislative session regarding metro transit issues. • GRANT THE METROPOLITAN COUNCIL THE AUTHORITY TO REORGANIZE THE TRANSPORTATION AND TRANSIT STRUCTURE AND OPERATION IN THE REGION.IF A RESTRUCTURING OF TRANSIT PLANNING AND OPERATION IN THE METROPOLITAN AREA IS UNDERTAKEN BY THE LEGISLATURE BEFORE AN OVERALL METROPOLITAN COUNCIL/ METROPOLITAN GOVERNANCE RESTRUCTURE,THE AMM WOULD SUPPORT RESTRUCTURING BASED ON THE FOLLOWING PRINCIPLES: 1.ENHANCED OVERALL COORDINATED PLANNING TO IMPLEMENT LONG-TERM TRANSIT/TRANSPORTATION NEEDS; 2.DEVELOP AND SPECS f THE TOTAL PLANNING PitOCrSS SO(A)TILE PUBLIC AND IN' ED AGENCIES MAY EASILY UNDERSTAND THE PROCESS,(B)THE RESPONSIBILITIES OF ALL AGENCIES INVOLVED ARE DEFINED AND(C)DUPLICATION OF DUTIES AND TASKS AMONG THE AGENCIES ARE MINIMIZED; 3.ORGANIZE THE VARIOUS AGENCIES TO ACHIEVE THE APPROPRIATE MIX OF TRANSIT AND HIGHWAY FUNDING TO IMPLEMENT LONG-RANGE METROPOLITAN TRANSIT/TRANSPORTATION GOALS; 4.DEVELOP FLEXIBLE AND UNDERSTANDABLE PROGRAM OPPORTUNITIES FOR COMMUNITIES THAT RECEIVE LESS THAN ADEQUATE TRANSIT SERVICE SO THEY MAY BECOME PART OF THE SYSTEM MORE EASILY AND BE PROVIDED WITH ONE-STEP ACCESS DURING THE PROCESS;AND 5.CLEARLY DELINEATE THE RESPONSIBILITIES INVOLVED WITH PROVIDING FOR TRANSIT/TRANSPORTATION IN THE METROPOLITAN AREA.NOT ONLY WOULD THIS HELP TO ESTABLISH ACCOUNTABILITY,IT ALSO WOULD PROVIDE TRANSIT/TRANSPORTATION USERS WITH A BETTER IDEA OF WHICH AGENCY SHOULD BE CONTACTED WHEN PROBLEMS ARISE. 3. Endorsement Policy VI-E Liquor Issues. Delete the last bold line on page 69-70 dealing with one class of beer and wine sales.The LMC committee deleted this part of their policy. 3490 lexington avenue north,st.paul,minnesota 55126(612)490-3301 CONSENT . MEMORANDUM TO: Dennis R. Kraft, City Administrator FROM: Judith S. Cox, City Clerk SUBJECT: October 12 , 1993 DATE: Changing City Council Meeting Date INTRODUCTION AND BACKGROUND: At their regular meeting on October 5th, City Council directed staff to prepare a resolution changing the regular November 2nd meeting date to November 3rd. This was done because the City Council can not meet until after the polls close at 8: 00 P.M. for the city election on the 2nd and because of the need for the City Council to meet within two days thereafter to canvass the votes. Changing the meeting date combines both the regular meeting date and the canvassing of the votes into one meeting time. RECOMMENDATION: Offer Resolution No. 3878 , A Resolution Changing The November 2 , 1993 Council Meeting Date, and moved its adoption. RESOLUTION NO. 3878 A RESOLUTION CHANGING THE NOVEMBER 2, 1993 COUNCIL MEETING DATE WHEREAS, the Shakopee City Code has set the first Tuesday of each month as the regular meeting date for the City Council; and WHEREAS, the Shakopee City Code allows the City Council to change the meeting date by adopting a resolution at least one week prior to the regularly scheduled meeting; and WHEREAS, the City election is scheduled for November 2, 1993 , a regular scheduled City Council meeting date, and WHEREAS, State law prohibits the City Council from meeting between 6: 00 p.m. and 8: 00 p.m. on the day that an election is held within the City boundaries. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that the November 2, 1993 regularly scheduled City Council meeting shall be changed to November 3 , 1993 at 7: 00 p.m. Adopted in Adjourned Regular Session of the City Council of the City of Shakopee, Minnesota, held this 19th day of October, 1993 . Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form. City Attorney CONSENT /Ac_. MEMO TO: Dennis R. Kraft, City Administrator FROM: Barry A. Stock, Assistant City Administrator RE: Bond Sales - $1 .4 Million General Obligation Improvement Bonds, Series 1993B - Resolution No. 3883 $1 Million General Obligation Tax Increment Refunding Bonds, Series 1993C - Resolution No. 3884 DATE: October 14, 1993 INTRODUCTION: Consistent with the direction set forth by City Council, it would be appropriate to offer and adopt Resolution No' s 3883 and 3884 authorizing the sale of $1 .4 Million General Obligation Improvement Bonds, and $1 Million General Obligation Tax Increment Refunding Bonds . BACKGROUND: Shown in Attachment #1 is Resolution No. 3883 , A Resolution Authorizing Issuance and Sale of $1 .4 Million General Obligation Improvement Bonds, Series 1993B. This bond sale is for public improvement projects ordered by City Council . Shown in Attachment #2 is Resolution No. 3884, A Resolution Authorizing Issuance and Sale of $1 Million General Obligation Tax Increment Refunding Bonds, Series 1993C. This bond sale basically refunds the $1 .4 Million Tax Increment Revenue Refunding Bonds, Series 1984 . Refunding the 1984 issue will result in cost savings to the City due to the expected lower interest rate on the upcoming issuance. Council has set a special meeting for November 18, 1993 at 5 : 00 p.m. in the City Council Chambers to award the bonds for each of the aforementioned issuances . ALTERNATIVES: i . Offer Resolution No. ' s 3883 and 3884, and move their adoption. 2 . Do not offer the Resolution' s authorizing the issuance of the bonds. 3 . Table action pending further information from staff . ACTION REQUESTED: 1 . Offer Resolution No. 3883 , A Resolution Authorizing Issuance and Sale of $1 .4 Million General Obligation Improvement Bonds, Series 1993B, and move its adoption. 2 . Offer Resolution No. 3884, A Resolution Authorizing Issuance and Sale of $1 Million General Obligation Tax Increment Refunding Bonds, Series 1993C, and move its adoption. TAMI\ADMIN\BONDS Alm Councilmember introduced the following resolution and moved its adopted: RESOLUTION NO. 3W3 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $1, 400, 000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1993B BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota, as follows : Section 1 . purpose. It is hereby determined to be in the best interests of the City to issue its General Obligation Improvement Bonds, Series 1993B, in the principal amount of $1, 400, 000 (the Bonds) , including $15, 125 principal amount of Bonds representing interest, pursuant to Minnesota Statutes, Chapters 429 and 475, to finance the following public improvement projects : Project Estimated Cost Section 2 . Terms of Proposal . Springsted Incorporated, financial consultant to the City, has presented to this Council a form of Terms of Proposal for the Bonds, which is attached hereto and shall be placed on file by the City Clerk. Each and all of the provisions of the Terms of Proposal are hereby adopted as the terms and conditions of the Bonds and of the sale thereof. Section 3 . Sale Authorization. Pursuant to Minnesota Statutes, Section 475 . 60, subdivision 2, clause (9) , Springsted Incorporated is authorized and directed to prepare and distribute an official statement relating to the Bonds and the City to prospective purchasers of the Bonds, to solicit and negotiate proposals for the purchase of the Bonds by a bank or an investment banking firm on the terms and conditions specified in the Terms of Proposal, and to present to this Council at a special meeting to held on Thursday, November 18, the proposal to purchase the Bonds which is determined by it to be in the best interests of the City, for consideration by this Council . • 10 12 93 15.58 FAX 612 223 3002 SPRINGSTED INC. 00_ 007 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,400,000 CITY OF SHAKOPEE, MINNESOTA GENERAL OBUGATION IMPROVEMENT BONDS, SERIES 19938 Pc oposals for the Bonds will be received on Thursday, November 18, 1993, until 10:30 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 5:00 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December 1, 1993, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1994. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued in tr:e 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 :e ji trar 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: 1996 $150.000 2000 $140,000 2003 $140,000 1997 $140,000 2001 $140,000 2004 $135,000 1998 $140,000 2002 $140,000 2005 $135,000 1999 $140,000 OPTIONAL REDEMPTION The City may elect on February 1, 2002, and on any day thereafter, to prepay Bonds due on or after February 1, 2003. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus 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 •spocial assessments against benefited property. The proceeds will be used to finlnce construction of various improvements in the City. TYPE OF PROPOSALS Proposals shall be for not less than $1,384,875 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form cf a certified or cashier's check or a Financial Surety Bond in the amount of $14,000. - i - it 10 12 93 iJ.39 FAX 612 223 3002 SPRINGSTED INC. 003'007 payable to the order of the City. If a check is used, it must accompany each proposal. If Financia Surety Bond is used, it must be from an insurance company licensed to issue such a ^d in the State of Minnesota, and preapproved by the City. Such bend ,rust be submitted to ..ringsted Incorporated prior to the opening of the proposals The Financial Surety Bond must identify ca.h underwriter whose Deposit is guaranteed by such Financial Surety Bond if the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is i. ui;ed to submit its Deposit to Springsted Incorporated in the form of „ certified or cashier's ..heck cr •.vre transfer as instructed by Springsted Incorporated not later than 3.30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, trio Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which .trill be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No prcposcl een be eithdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds 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 r—turity shall bear a single rate from the date of the Bonds to the date of maturity No conditional proposals will be accepted. AWARD The 3oeds will be awarded on the basis of the lowest interest rate to be determined cr, a true i,iterest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters :olating to the receipt of proposals and award of the Bonds, (ii) reject all proposals :.ithcut ca.:s©, and, (ill) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION �t ttte Bonds, qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of i;isurance Thal! be paid by the purchaser, except that, if the City has requested and received a ating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond Insurer to issue the policy after Bonds have been awarded to the perchaser .:hall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. . REGISTRAR TI is 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 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 - li - t UI 10, 1. 93 16:00 FAX 612 223 3002 SPRINGSTED INC. 00-3. 007 • 11Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers II shall be paid by the purchaser. SETTLEMENT ii W thin 10 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 snail be made in federal, or equivalent, funds which shall be received at the offices of the City or its dezigr.ua 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 reason of the purchaser's non-compliance with said terms for payment. II 11 OFFICIAL STATEMENT • The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly-final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. • For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 35 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the -;�:nior managing underwriter of the syndicate to which the Bonds are awarded 55 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i}it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. •, Dated October 19, 1993 BY ORDER OF THE CITY COUNCIL /s/ Judith Cox li Clerk I i. ji I I; 1 i I I I • A -c-4"eA4 4Z Councilmember introduced the following resolution and moved its adopted: RESOLUTION NO. 341 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $1, 000, 000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1993C BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota, as follows : Section 1 . Purpose . The City presently has outstanding $1, 400, 000 Tax Increment Revenue Refunding Bonds, Series 1984, which mature on February 1 in the years 1995 through 1998 (the Outstanding Bonds) , and which are subject to redemption and prepayment on February 1, 1994 at a price of 102% of par plus accrued interest . It is hereby determined to be in the best interests of the City to issue its General Obligation Tax Increment Refunding Bonds, Series 1993C, in the principal amount of $1, 000, 000 (the Bonds) , including $7, 000 principal amount of Bonds representing interest, pursuant to Minnesota Statutes, Chapters 469 and 475, to provide moneys to be used, together with other funds of the City, to redeem and prepay the Outstanding Bonds on February 1, 1994 . Section 2 . Terms of Proposal. Springsted Incorporated, financial consultant to the City, has presented to this Council a form of Terms of Proposal for the Bonds, which is attached hereto and shall be placed on file by the City Clerk. Each and all of the provisions of the Terms of Proposal are hereby adopted as the terms and conditions of the Bonds and of the sale thereof. Section 3 . Sale Authorization . Pursuant to Minnesota Statutes, Section 475 . 60, subdivision 2, clause (9) , Springsted Incorporated is authorized and directed to prepare and distribute and official statement relating to the Bonds and the City to prospective purchasers of the Bonds, to solicit and negotiate proposals for the purchase of the Bonds by a bank or an investment banking firm on the terms and conditions specified in the Terms of Proposal, and to present to this Council at a special meeting to be held on Tuesday, November 18, the proposal to purchase the Bonds which is determined by it to be in the best interests of the City, for consideration by this Council. 10 11 93 16: 00 c.aT 612 223 3002 SPRINGSTED INC. Z003• 007 THES INCORPORATED TO NEGOTIATE BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: ISSUE ON ITS TERMS OF PROPOSAL S1,000,000' CITY OF SHAKOPEE, MINNESOTA GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1993C Proposals for the Bonds will be received on Thursday, November 18, 1993, until 10:30 A.M., Cental 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 5:00 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December 1, 1993, as the date of original issue, and will bear interest payable February 1 and August 1 of each year, commencing August 1, 1994. Interest will be computed on the basis of a 360-day year of twelve 30-day months 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: 1995 $235,000 1997 $255,000 1998 $265,000 1996 $245,000 • The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. My such increase or reduction will be in a total amount nor to exceed$50,000 and will be made in multiples of$5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount tZ:..v1, will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds will be general Bonds 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 increments generated In the Tax Increment Financing District No. 1 in the Minnesota River Valley Housing and Redevelopment Project No. 1 of the City. The proceeds will be used to refund the 1995 through 1998 maturities of the Tax Increment Revenue Refunding Bonds, Series 1984, dated October 1984 issued by the Housing and Redevelopment Authority in and for the City of Shakopee. - i - a hl 21 9 SPRINGSTED INC. i 006 007 10. 1'_ '03 16:01 FAX 61: 3 300_ TYPE OF PROPOSALS P oposais :;hall be for not loss than $993,000 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit) Tri the form of a certified or cashier's check or a Financial Surety Bond in the amount of $10,000, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in tho State of Minnesota, and preapproved by the City Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser Is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's cneck or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., • Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit oquirement. 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 purchaser fails to comply with the accepted proposal, said amount will be retained by the City No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds 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 proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true Interest cost (TIC) basis. The City's computation of the Interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (Hi) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION if the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of tho Bonds Any Increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. it : Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on i I the Bonds. 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. - II - r al. . j r 10 12 93 16: 02 FAX 612 223 3002 SPRINGSTED INC. 2t007.'007 I 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 shall be paid by the purchaser. 4l SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the i 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 Minneapo,is, 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 I shall be rnacie 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 reason of the il purchaser's non-compliance with said terms for payment. 11 OFFICIAL STATEMENT 11 The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly-final Official i Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. i;• For copies of the Official Statement or for any additional information prior to sale, any ;Iprospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 11 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. ;i I i The Official Statement, when further supplemented by an addendum or addenda specifying the 11 maturity dates, principal amounts and interest rates of the Bonds, together with any other I i information required by law, shall constitute a "Final Official Statement" of the City with respect I to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no , r;lore than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 40 copies of the l i Official Statement and the addendum or addenda described above. The City designates the I! senior managing underwriter of the syndicate to which the Bonds are awarded as its agent tor 11 purposes of distributing copies of the Final Official Statement to each Participating Underwriter. 11 Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a ,I contractual relationship with all Participating Underwriters of the Bonds for purposes of I assuring the receipt by each such Participating Underwriter of the Final Official Statement. jDated October 19, 1993 BY ORDER OF THE CITY COUNCIL I /s/ Judith Cox Ii I 11 Clerk l II Ij i' 11 'i 11 • - iii - II 1 ' 2 i) 1C ® 1)) Recommendations For City of Shakopee, Minnesota $1 ,400,000 General Obligation Improvement Bonds, Series 1993B $1 ,000,000 General Obligation Tax Increment Refunding Bonds, Series 1993C Study No. S0750M3 SPRINGSTED Incorporated October 13, 1993 S P R I N GST ED 120 South Sixth Street Suite 2507 PUBLIC FINANCE ADVISORS Minneapolis, MN 55402.1800 • (612) 333-9177 Fax: (612) 349-5230 Home Office 85 East Seventh Place 16655 West Bluemound Road Suite 100 Suite 290 Saint Paul, MN 55101-2143 Brookfield, WI 53005-5935 (612) 223-3000 (414) 782-8222 Fax: (612) 223.3002 Fax: (414) 782-2904 6800 College Boulevard Suite 600 Overland Park, KS 66211-1533 (913) 345-8062 October 13, 1993 Fax: (913) 345-1770 1800 K Street NW Suite 831 Washington, DC 20006-2200 Mayor Gary Laurent (202) 466-3344 Members, City Council Fax: (202) 223-1362 Mr. Dennis Kraft, City Administrator Mr. Gregg Voxland, Finance Director City Hall 129 South Holmes Shakopee, MN 55379 Re: Recommendations for the Issuance of: $1,400,000 General Obligation Improvement Bonds, Series 1993B $1,000,000 General Obligation Tax Increment Refunding Bonds, Series 1993C We respectfully request your consideration of our recommendations for the issuance of the above obligations in accordance with the attached Terms of Proposals. These recommendations will set forth the basic parameters for each issue and then will discuss items common to both issues. General Obligation Improvement Bonds, Series 1993B Purpose and Authority The improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. Proceeds of this issue will be used to finance the costs of three improvement projects currently under construction within the City. Composition of the issue is as follows: Project Costs: Minnesota/Dakota Alley 93-5 (6601) $ 9 71,450,450 Valley Park/11th 93-10 (6613) 684,250 VIP Trunk Sewer-Rahr Force Main 92-9 (6596) Total Project Costs $1,668,700 Less: $ (11,450) Cash on Hand (93-5) (24,000)11 Storm Sewer Fund (93-5) (303,375) Sewer Fund (92-9) Net Project Costs $1,329,875 Capitalized Interest 55,00015,100 Allowance for Discount Bidding $1 ,400,000 Total Bond Issue City of Shakopee, Minnesota October 13, 1993 Security and Financing Plan Approximately $1,329,875 of the principal amount of the issue will be assessed against benefited property. The City must certify a tax levy for any year in which assessment income is insufficient to pay debt service. Those levies can be canceled later if funds are on hand to make the payments. Appendix I is the projection of assessment income. The City has indicated that the assessment roll for Project 93-5 is anticipated to be filed on or by November 1, 1993 for first collection in 1994. The other two projects, 93-10 and 92-9, will have assessments rolls filed by July 1, 1994, for first collection in 1995. The assessments will be spread over 10 years in equal annual principal payments with interest charged on the unpaid balance at approximately 1.5% over the rate received on the Bonds. For our purposes here, we have used an estimated rate of 5.75%. Appendix II is our recommended maturity schedule for the issue. The Bonds will be dated December 1, 1993 and will mature each February 1 from 1996 through 2005. Columns 1 through 5 show the years and amounts of principal and estimated interest due and payable on these Bonds. Column 6 shows the amounts required to pay 100% of debt service, with Column 7 showing the capitalized interest necessary prior to collection of special assessments from the rolls to be filed in 1994. Column 8 shows the net levy required and Column 9 includes the 5% overlevy requirement as set forth by state statute. The 5% overlevy is a protection to the bondholders and to the City in the event 100% of the expected income from special assessments are not received. Column 10 shows the projection of assessment income from Appendix I and Column 11 shows the estimated annual levy requirement for the issue. The first interest payment due on August 1, 1994, will be in the estimated amount of $36,402. This payment will be made from first-half collection of assessments and a portion of the capitalized interest. The subsequent February 1, 1995 payment will be made from second-half collections of assessments and the remaining capitalized interest. Thereafter each August 1 interest payment will be made from first-half collections of special assessments and taxes (if required), with each subsequent February 1 principal and interest payment to be made from second-half collections of assessments and taxes, together with surplus first-half collections. This sequence of payments will continue throughout the life of the issue. Included in the principal amount of the issue is a provision for discount bidding in the amount of $15,125. This discount provides the underwriters with all or part of their profit and/or working capital for marketing the issue. It permits them to reoffer the bonds at or close to a par reoffering scale. The discount, representing $10.80 per bond, is a successful marketing tool the City has used in past bond issues and we recommend its use here. We are recommending that bonds maturing in the years 2003 through 2005 be callable at the option of the City beginning February 1, 2002. This will permit the City to prepay the Bonds in the event of significant prepayment of special assessments or the need or desire to refinance the issue. General Obligation Tax Increment Refunding Bonds, Series 1993C Purpose and Authority The Tax Increment Refunding Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and 469. It is our recommendation the City refund the 1995 through 1998 maturities of the $3,140,000 Tax Increment Revenue Refunding Bonds, Series 1984 dated Octoberuo1, 1984foththe1C84" Bonds) which y of Shakopee for interest costere issued bsav savings purposes.and TheRedevelopment 1984 Bonds Authority of and City Page 2 City of Shakopee, Minnesota October 13, 1993 refunded the Authority's $5,300,000 Special Obligation Tax Increment Bonds, Series 1979, dated November 1, 1979 (the "1979 Bonds"). The proceeds of the 1979 Bonds were used to finance land acquisition and a water tower improvement in the City's Tax Increment Financing District No. 1 in the Minnesota River Valley Housing and Redevelopment Project No. 1 (K Mart Project). The refunding will be a "current refunding" under U.S. Treasury Regulations, since payment of the refunded 1984 Bonds will be made within 90 days. As a result, the City will not be required to establish an escrow account for the bond proceeds. Income earned on reinvestment of the bond proceeds until the call date and cash on hand (former Bond Reserve Account of $444,800) has been included as a revenue source, as required by the Treasury Regulations, and used to reduce the size of this issue. Finance Plan The average net effective interest rate on the outstanding 1984 Bonds is 10.6%. Based on current market conditions, it is estimated the new Series 1993C refunding bonds could be sold at a net effective rate of 3.6%. The resulting net savings to the City after deducting all costs and funds from the City, is estimated to be $248,003, or a present value savings approximately $193,351. A part of the savings from this refunding will be as a result of the conversion of the bond issue from a special obligation of the Housing and Redevelopment Authority to a general obligation of the City with the City's general obligation backing. It is estimated that this conversion could account for approximately .50% improvement in the interest rate. The City anticipates that the tax increments generated by the K Mart Project will continue to be sufficient to support the debt service requirement of the issue. The proceeds of the Bond issue and funds on hand from the City will provide sufficient monies for the City to retire the 1995 through 1998 principal maturities of the 1984 Bonds, to pay costs of issuance including the call premium and to pay the underwriter's discount. The 1984 Bonds will be called for prepayment on February 1, 1994 at a premium of 2% ($28,000). Refunding Analysis Appendix III, of these recommendations, provides a summary of the sources and uses of funds for the refunding, as well as a detailed comparison between the refunding issue proposed and the existing debt service on the 1984 Bonds. Schedule A of Appendix III shows the current debt service payments on the 1984 Bonds that are outstanding. On February 1, 1994, the 1995 through 1998 maturities, totaling $1,400,000, will be called for redemption as indicated in Schedule B. The City will make the principal payment due February 1, 1994 as originally scheduled on the 1984 Bonds, as well as the semiannual interest payment due on that date (Schedule C). Schedule D shows the estimated debt service on the new issue. The Series 1993C Bonds will be dated December 1, 1993 and will mature February 1, 1995 through 1998, the same term as the 1984 Bonds. The City will begin to pay debt service on the Series 1993C Bonds beginning on August 1, 1994. Column 6 of Schedule E shows the anticipated annual savings due to the refunding, averaging $62,000 annually (net of cash on hand). Common to Both Issues Bank Qualification The Tax Reform Act also restricts the ability of banks to deduct tax-exempt interest as a carrying expense under certain circumstances in calculating their tax liability. Since the City will Page 3 City of Shakopee, Minnesota October 13, 1993 not issue in excess of $10,000,000 in bonds in 1993, the Series 1993B and 1993C Bonds will be "qualified obligations" which can be included in a bank's calculation of interest deduction. This qualification should assist in attracting bidders for the issues. Moody's Credit Rating In order to maintain the City's current "A" rating from Moody's Investors Service, it is necessary that an application be made to Moody's for a rating on these issues. We will provide the rating agency with the necessary data to make their rating analysis and will make the application on the City's behalf. Moody's will charge a fee which will be billed directly to the City. The estimated cost of rating the issues has been apportioned to the issuance costs of each issue and will be paid from bond proceeds. Federal Arbitrage Rebate The Bonds are subject to the 1986 Tax Reform Act and the subsequent amendments as they relate to arbitrage profits and rebating any of those profits to the U.S. Treasury. There are some exemptions from the rebate requirement including a small issuer exemption if the bonds are for a governmental purpose and the City reasonably expects to issue not more than $5,000,000 of tax-exempt bonds during the calendar year. The City has issued more than $5,000,000 of tax-exempt bonds during 1993 and therefore will be required to file reports under the Act. A 1993 change in the arbitrage regulations will require special attention be paid to the accumulation and investment of monies in the debt service fund. Investments of funds which exceed a bona fide fund level will have to be restricted to the yield of the bonds. A bona fide debt service fund is defined as a fund which is used to achieve a proper matching of revenues with principal and interest payments within each bond year and is depleted at least once each bond year except for a reasonable carryover amount which may not exceed the greater of: 1. The earnings on the fund for the preceding bond year; or 2. One-twelfth of the principal and interest payments on the issue for the immediately preceding bond year. Any earnings from a bona fide debt service fund are exempt from rebate. Amounts in a debt service fund in excess of the amount of a bona fide debt service fund are restricted to an investment rate equal to or less than the bond yield and may be invested in market rate obligations, if their yield is at or below the bond yield; in specially restricted State and Local Government Securities (SLGS) issued by the U.S. Treasury, or in eligible tax exempt obligations. A debt service fund can lose its bona fide status when the issuer accumulates too much investment earnings, prepaid assessments and/or excess tax increments in the fund. It is important to monitor the debt service funds to assure compliance with the new regulations. Economic Life Another new requirement of the arbitrage regulations is that a bond issue, including refunding issues, cannot have an average maturity greater than 120% of the weighted economic life of the assets purchased with the bond proceeds as determined by generally accepted accounting principles. The infrastructure financed by the Series 1993B Bonds has an economic life of 20 Page 4 City of Shakopee, Minnesota October 13, 1993 years, 120% of which equals 24 years. The average maturity of the Series 19938 Bonds is 6.6 years or substantially below the allowable level. The 1993C Bonds are refunding an issue which originally financed land acquisition and a water tower with an estimated economic life of 30 years, 120% of which equals 36 years. The average maturity of the Series 1993C Bonds is 2.7 plus 14.0 years since the original 1979 issuance date is a total 16.7 years. This is also well below the allowable level. Sale Procedure We are recommending the Bonds be offered for sale at a special City Council meeting to be held at 5:00 P.M., on Thursday, November 18, 1993. Proposals on each issue will be received in the offices of Springsted Incorporated at 10:30 A.M. that same day. Proposals will be verified, checked for accuracy and the necessary computer calculations will be made in order to determine the benefit of the refunding issue. A representative of Springsted will meet with the Council to present the results and refunding analysis and make recommendations as to the acceptability of the proposals received. Respectfully submitted, SPRINGSTED Incorporated cj p Page 5 0CDNLC: x ) tie: C — ,JD T APPENDIX I — C tf) O X) ^ 0 C N ,� N N CO (O C) P) C O M N. C C 0 C')) C CO N. (D tr) CO CD CID C v C.) CO o U) v 0 CO N N • C (n vV CD _ n O v n 0 r) n 0 M • ((Op N n N CO CO CO v CL) J m N Ps. (O 0) C) C 0 Cl N. O v N L - C) CO O C) Cl) C O N ^ N. CO Q m N CO CO M) v C) CO N C r C ^ v . 0 . • 1-• 0 CO CO CO CO CO CO CO CO CO Co) VIco O CO CO CO CO CO CO CO CO CO CO n O. CO 0) CO C C D) C) 0) C Q) M CO l) M N N N N N N N N N 0) 0) C C) C') C) C) C) C, C) C) CO N N • C. O. CO CO CO CO CO CO CO CO CO C') C 0 .-( N 0) 0 ^ N CO v CO C N. 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C C 0) 0) 0) C 0 O 0 0 0 > m ,.. >- NNNNN Of O •C 0 J L d) C) Q G a M 0 00 .0 L • M v to C n CO CO O N M M >. CO 0) 0) 0) 0) 01 0 0) 0 0 0 0 () ✓ - m 0) 0) 0) 0 0 0) 0) 0 0 0 0 CO .. *y > N N N N - 0 Page 6 APPENDIX II g• , f7 X g R N m O 7 v, U Q? y N OR2g ;7, 2c0 "� iA C c W N a W c0v. C - N v N wi�05 O m" Q f7 — O ~O C M O O O O O O O m aft C 41. Z ' ei m N 7 Li ir na ¢ OA � gQf - CO . o _ 0 CO •- p - � a2 RONNM m C N. w . O - ON np p n N p M 1. . N4z3 §-.. o °DN322 �nn8A4 F T fqy cyp 1fp7 i O > E S t0 O 2 8 i O N N N Z O ,_ N c0 N O V o ¢ " Ua1 ii § 0000000000 Qg25 O as�}U CQ 7:p l7. 0 g m - 0, 0z. Amo O N O N N g 7 C • Q .5 " iN_ O N cap0 p Gyp C m — r- _ CO •^pN O �QO� O N N N C 2 A O < M N N O" " M a tm .it .. an �^ o ¢ u w 11 142 nn h n n S ° C ,j m Q O r, m " * c m _ o C 6 t7 6 ri 6 v V < v v E d Z Z 3 a w U �iggvg $ ggcoc� ov �c -2. --:,(i a 2 ° U U 2w in- Z wZ gg gg m 42. • Q I } W U v` Y ! N ¢ a « C7 O W - rQiiiiiQNB88N ' 6OH aq SQ • Ca o -} p 6J OSN > C 13 • C W A _ -i- 1-5S .- 0 0 » _ gN t 443 ow F- C m < a ~ Page 7 APPENDIX III City of Shakopee, Minnesota Prepared: 10/11/93 G.O. Refunding Bonds, Series 1993 By SPRINGSTED Incorporated Current Refunding Summary Partial Current Refunding of Date of Bonds: 12/01/93 Tax Increment Rev. Ref. Bonds, Ser. 1984 Delivery Date: 12/20/93 Even Annual Debt Service Structure Refunded Call: 02/01/94 Refunding Bond Rating: A 1st Callable: 02/01/95 Refunding Delivery Date Sources / Uses Refunded Bond Call Date Sources / Uses Sources of Funds on: 12/20/93 Sources of Funds on: 02/01/94 Refunding Principal: 1,000,000.00 Invest. Proceeds Mature: 980,161.23 Accrued Interest: 1,694.17 Inv. Earnings @ 2.75% : 3,038.77 Funds From City(2%): 9,911.23 Reserve Fund Proceeds: 444,800.00 Total Sources of Funds: 1,011,605.40 Total Sources of Funds: 1,428,000.00 Uses of Funds on: 12/20/93 Uses of Funds on: 02/01/94 Discount @ $7.00 : 7,000.00 Acc. Int. & Unused Disc: 1,694.17 Refunded Principal: 1,400,000.00 Refunding Expenses: 22,750.00 Refunded Call Premium: 28,000.00 Investment to Call Date: 980,161.23 Excess Proceeds: Total Uses of Funds: 1,011,605.40 Total Uses of Funds: 1,428,000.00 Refunded / Refunding Bond Comparison Total Net Savings/Present Value Savings As of: Refunded Refunding Future Savings: 701,020.00 12/01/93 Statistics Statistics Less Funds From Issuer: 454,711.23 Principal: 1,400,000 1,000,000 Plus Accr. Int. to D/S Fund: 1,694.17 Interest: 415,400 89,700 Plus Exc. Proc. to D/S Fund: Bond Yrs: 3,908 2,717 Total Net Savings: 248,002.94 Avg. Mat: 2.792 2.717 Present Value Sav @ 3.30%: 193,351.40 NIC: 10.63% 3.56% As% of P.V. Refunded Int.: 52.66% Page 8 City of Shakopee, Minnesota Prepared: 10/07/93 Tax Increment Rev. Ref . Bonds, Ser. 1984 By SPRINGSTED Incorporated Existing Debt Service Schedule A Date Principal Rate Interest Semi-Annual Annual 02/01/94 270, 000 . 00 10 . 250% 87, 876 .25 357, 876 . 25 357, 876 . 25 08/01/94 74, 038 . 75 74 , 038 . 75 02/01/95 300, 000 . 00 10 .400% 74, 038 . 75 374, 038 . 75 448, 077 . 50 08/01/95 58,438 . 75 58, 438 . 75 02/01/96 330 , 000 . 00 10 . 500% 58, 438 . 75 388, 438 . 75 446, 877 . 50 08/01/96 41, 113 . 75 41, 113 . 75 02/01/97 365, 000 .00 10 . 600% 41, 113 . 75 406 , 113 . 75 447, 227 . 50 08/01/97 21, 768 . 75 21, 768 . 75 02/01/98 405, 000 . 00 10 . 750% 21, 768 . 75 426, 768 . 75 448, 537 . 50 Totals 1, 670, 000 . 00 478, 596 . 25 2, 148, 596 .25 2, 148, 596 . 25 Bond Years : 3 , 953 . 33 All lower calculations Refunded Bonds Only Avg. Mat . . : 2 . 367 are made from the date Avg. Mat . . : 10 . 6292 . 792 NIC 10 . 624% of the refunding bonds NIC Page 9 City of Shakopee, Minnesota Prepared: 10/07/93 Tax Increment Rev. Ref . Bonds, Ser. 1984 By SPRINGSTED Incorporated Refunded Principal and any Call Premium Schedule B Date Principal Premium Semi-Annual Annual 02/01/94 1, 400, 000 . 00 28, 000 . 00 1,428 , 000 . 00 1, 428, 000 . 00 Totals 1, 400 , 000 . 00 28, 000 . 00 1, 428, 000 . 00 1, 428, 000 . 00 Call Date 02/01/94 This portion will be paid with proceeds. First Date Called 02/01/95 Call Premium 2 . 00% Page 10 City of Shakopee, Minnesota Prepared: 10/07/93 Tax Increment Rev. Ref . Bonds, Ser. 1984 By SPRINGSTED Incorporated Non-Refunded Debt Service Schedule C Date Principal Rate Interest Semi-Annual Annual 02/01/94 270, 000 . 00 10 .250% 87, 876 .25 357, 876 . 25 357, 876 . 25 Totals 270, 000 . 00 87, 876 .25 357, 876 . 25 357, 876 . 25 This portion Will be paid by the issuer. The first payment includes interest on the entire existing debt service . Page 11 City of Shakopee, Minnesota Prepared: 10/07/93 G.O. Refunding Bonds, Series 1993 By SPRINGSTED Incorporated Refunding Debt Service Schedule D Date Principal Rate Interest Semi-Annual Annual 08/01/94 21, 400 . 00 21, 400 . 00 02/01/95 235, 000 . 00 2 . 900% 16 , 050 . 00 251, 050 . 00 272, 450 . 00 08/01/95 12, 642 . 50 12, 642 . 50 02/01/96 245, 000 . 00 3 . 100% 12 , 642 . 50 257, 642 . 50 270, 285 . 00 08/01/96 8, 845 . 00 8, 845 . 00 02/01/97 255, 000 . 00 3 . 300% 8, 845 . 00 263 , 845 . 00 272, 690 . 00 08/01/97 4 , 637 . 50 4 , 637 . 50 02/01/98 265, 000 . 00 3 . 500% 4 , 637 . 50 269, 637 . 50 274, 275 . 00 Totals 1, 000, 000 . 00 89, 700 . 00 1, 089, 700 . 00 1, 089, 700 . 00 Bond Date. : 12/01/93 Delivery. . : 12/20/93Discount .% : 0 . 70000% Avg. Mat . . : 2 . 717 NIC 3 . 560% Bond Yield: 3 . 29766% Page 12 City of Shakopee, Minnesota Prepared: 10/07/93B SPRINGSTED Incorporated G.O. Refunding Bonds, Series 1993 Y Annual Savings Analysis Schedule E Refunding Non-Refunded Total New Existing Savings Date Debt Service Debt Service Debt Service Debt Service or (Loss) (1) (2) (3) (4) (5) (6) 02/01/94 357, 876 . 25 357, 876 . 25 357, 876 . 25 08/01/94 02/01/95 272 , 450 . 00 272, 450 . 00 448, 077 . 50 175, 627 . 50 08/01/95 02/01/96 270 , 285 . 00 270 , 285 . 00 446 , 877 . 50 176 , 592 . 50 08/01/96 02/01/97 272, 690 . 00 272, 690 . 00 447, 227 . 50 174, 537 . 50 08/01/97 02/01/98 274 , 275 . 00 274, 275 . 00 448 , 537 . 50 174, 262 . 50 Totals 1, 089, 700 . 00 357, 876 . 25 1,447, 576 . 25 2 , 148 , 596 .25 701, 020 . 00 Present Value Rate . . . : 3 . 2977% Funds from Issuer • (454, 711 . 23) Present Value Savings : 193 , 351 .40 Acc . Int . to D/S Fund: 1, 694 . 17 As % of P.V. Ref . Int : 52 . 66% Total Net Savings • 248 , 002 . 94 Page 13 TED TO NEGOTIATE THE CITY HAAUTHORIZED RIOSALS WILL BE RECEIVED ON THEDFOLLOWING BASIS: ISSUE ON ITS BEHALF. TERMS OF PROPOSAL $1,400,000 CITY OF SHAKOPEE, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1993B Proposals for the Bonds will be received on Thursday, November 18, 1993, until 10:30 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 5:00 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December 1, 1993, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1994. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 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: 1996 $150,000 2000 $140,000 2003 $140,000 1997 $140,000 2001 $140,000 2004 $135,000 1998 $140,000 2002 $140,000 2005 $135,000 1999 $140,000 OPTIONAL REDEMPTION The City may elect on February 1, 2002, and on any day thereafter, to prepay Bonds due on or after February 1, 2003. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus 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 special assessments against benefited property. The proceeds will be used to finance construction of various improvements in the City. TYPE OF PROPOSALS Proposals shall be for not less than $1,384,875 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $14,000, Page 14 payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. 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 purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds 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 proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failurer af the municipal not constitute insurer for failure eue toe efupolicy sal byt he purchaser to been accept delivery the on purchaser s the Bonds. 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 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 Page 15 Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall 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 reason of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly-final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 55 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated October 19, 1993 BY ORDER OF THE CITY COUNCIL /s/ Judith Cox Clerk Page 16 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,000,000* CITY OF SHAKOPEE, MINNESOTA GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1993C Proposals for the Bonds will be received on Thursday, November 18, 1993, until 10:30 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 5:00 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December 1, 1993, as the date of original issue, and will bear interest payable February 1 and August 1 of each year, commencing August 1, 1994. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 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: 1995 $235,000 1997 $255,000 1998 $265,000 1996 $245,000 * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. My such increase or reduction will be in a total amount not to exceed$50,000 and will be made in multiples of$5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds will be general Bonds 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 increments generated in the Tax Increment Financing District No. 1 in the Minnesota River Valley Housing and Redevelopment Project No. 1 of the City. The proceeds will be used to refund the 1995 through 1998 maturities of the Tax Increment Revenue Refunding Bonds, Series 1984, dated October 1984 issued by the Housing and Redevelopment Authority in and for the City of Shakopee. Page 17 TYPE OF PROPOSALS Proposals shall be for not less than $993,000 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit') in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $10,000, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. 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 purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds 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 proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. 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. Page 18 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 shall 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 reason of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly-final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 40 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated October 19, 1993 BY ORDER OF THE CITY COUNCIL /s/Judith Cox Clerk Page 19 CONSENT MEMO TO: Dennis Kraft, City Administrator FROM: Dave Hutton, Public Works Director `. SUBJECT: 4th Avenue, Project No. 1993-7, S.A.P. No. 166-020-05 DATE: October 13, 1993 INTRODUCTION: Attached is Resolution No. 3880, a resolution authorizing Mn/DOT to approve of an off-system expenditure of Municipal State Aid Funds for the 4th Avenue Project. BACKGROUND: 4th Avenue, between Naumkeag Street and Fillmore Street, is currently on the County State Aid Highway System. The County has proposed to turn this street back to the City, but so far this has not been done. The City is currently reconstructing this street and has applied for Municipal State Aid Funds for this project. Mn/DOT has indicated that in order to do that, the City must adopt a resolution authorizing the expenditure of off-system funds. Attached is the resolution as provided to staff by Mn/DOT. ACTION REQUESTED: Offer Resolution No. 3880, A Resolution Requesting that Mn/DOT Approve of an Off-System Expenditure of Municipal State Aid Funds for 4th Avenue, Between Fillmore Street and Naumkeag Street, Project No. 1993-7, S.A.P. No. 166-020-05 and move its adoption. DEH/pmp MEM3880 RESOLUTION NO. 3880 A Resolution Requesting That Mn/DOT Approve Of An Off-System Expenditure Of Municipal State Aid Funds For 4th Avenue, Between Fillmore Street And Naumkeag Street Project No. 1993-7 S.A.P. No. 166-020-05 WHEREAS, it has been deemed advisable and necessary for the City of Shakopee to participate in the cost of a construction project located on C.S.A.H. 16 within the limits of said municipality; and WHEREAS, said construction project has been approved by the Commissioner of Transportation and identified in his records as S.A.P. No. 166-020-05. NOW, THEREFORE, BE IT RESOLVED: that we do hereby appropriate from our Municipal State-Aid Street Funds the sum of$310,000.00 dollars to apply toward the construction of said project and request the Commissioner of Transportation to approve this authorization. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of , 1993. Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form: City Attorney lam MEMO TO: Dennis Kraft, City Administrator FROM: Dave Hutton, Public Works Directore6 - / SUBJECT: 12th Avenue Sanitary Sewer and Watermain Project No. 1992-4 DATE: October 13, 1993 INTRODUCTION: Staff is requesting City Council authorization to set a public hearing to consider the special assessments for the 12th Avenue Sanitary Sewer and Watermain Project No. 1992-4. BACKGROUND: 12th Avenue Sanitary Sewer and Watermain Project is essentially complete and all project costs have been identified. This project consists of installing sewer and watermain along 12th Avenue located in the Industrial Park. In addition a lift station was installed at 12th Avenue and Valley Park Drive and a future sewer crossing of the proposed Shakopee Bypass was constructed. The final project costs are$978,253.58,which consists of construction costs totalling$797,184.51 and engineering/administrative costs totalling $181,069.07 The engineering/administrative costs represent 22.7% of the construction costs. Of the total project costs, staff is proposing that the City pay for that portion of the sewer that crosses the future Shakopee Bypass. When this sewer was installed, the MWCC was proposing to install the new Chaska Interceptor on the south side of the bypass, hence the need for a crossing. They have now determined that the interceptor will go on the north side of the bypass. The sewer crossing the bypass no longer benefits the property owner and in fact this sewer will need to be reconstructed in the future so that it drains north to the interceptor rather than draining south. Because there is no benefit to the property, staff does not feel this segment can be assessed. The sewer crossing the bypass is 400 feet long and the cost for this crossing is $100,242.83. These costs are extremely high due to the rock excavation and the additional casing pipe required by Mn/DOT. Since staff does not feel that this portion can be assessed, the Sanitary Sewer Fund will need to fund this segment, unless the City Council desires to approach the MWCC on receiving a reimbursement for this sewer. In addition to the sewer, a portion of the project costs will be funded by Shakopee Public Utilities Commission (SPUC) for watermain oversizing costs, totalling $116,805.65. SPUC staff have reviewed and approved of these oversizing costs. The total amount of the project that will be assessed is $761,205.10. In addition, a trunk watermain charge of $60,600.00 will be levied, bringing the total amount assessed to $821,805.10. All properties that benefit from this improvement are owned by Valley Green Business Park so it is proposed to assess the entire amount to them. This project was petitioned for by Valley Green Business Park. Prior to levying any special assessments on this project a public hearing must be held. Special assessments must be certified to Scott County by November 30, 1993 in order to include them in the 1994 property tax statements. Attached is Resolution No. 3881, which declares the cost to be assessed and sets the public hearing for November 16, 1993. ALTERNATIVES: 1. Adopt Resolution No. 3881, which sets the date for the public hearing. 2. Deny Resolution No. 3881. 3. Table Resolution No. 3881 for additional information. RECOMMENDATION: Staff recommends Alternative No. 1. ACTION REQUESTED: Offer Resolution No. 3881, A Resolution Declaring the Cost to be Assessed and Ordering the Preparation of Proposed Assessments for 12th Avenue Sanitary Sewer and Watermain Improvements Between County Road 83 and Valley Park Drive, Project No. 1992-4 and move its adoption. DEH/pmp MEM3881 RESOLUTION NO. 3881 A Resolution Declaring The Cost To Be Assessed And Ordering The Preparation Of Proposed Assessments For 12th Avenue Sanitary Sewer And Watermain Improvements Between County Road 83 And Valley Park Drive Project No. 1992-4 WHEREAS, a contract has been let for the improvement of: 12th Avenue by sanitary sewer and watermain between County Road 83 and Valley Park Drive and the contract price for such improvements is $739,908.51, the construction contingency amounts to $57,276.00 and the expenses incurred or to be incurred in the making of such improvements amounts to $181,069.07, so that the total cost of the improvements will be $978,253.58. Of this cost the City of Shakopee will pay $100,242.83 as its share of the cost and the Shakopee Public Utilities Commission will pay $116,805.65 as its share of the cost. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. The cost of such improvement to be specially assessed is hereby declared to be $821,805.10. This consists of $761,205.10 for the costs of the improvements and $60,600.00 trunk water charges. 2. The City Clerk, with the assistance of the City Engineer shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and keep a copy of such proposed assessment in her office for public inspection. 3. That the City Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. BE IT FURTHER RESOLVED: 1. That a hearing shall be held on the 16th day of November, 1993, in the Council Chambers of City Hall at 7:30 P.M. or thereafter, to pass upon such proposed assessments and at such time and place all persons owning property affected by such improvements and proposed assessments will be given an opportunity to be heard with reference to such assessment. 2. That the City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper of the City of Shakopee at least two weeks prior to the hearing and she shall state in the notice the total cost of the improvements. She also shall cause mailed notice of such hearing to be given the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. Adopted in session of the City Council of the City of Shakopee. Minnesota held this day of , 1993. Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form: City Attorney i) e v 7.5ec� /02e MEMO TO: Dennis Kraft, City Administrator FROM: Dave Hutton, Public Works Director SUBJECT: 12th Avenue Sanitary Sewer and Watermain Project No. 1992-4 DATE: October 13, 1993 INTRODUCTION: Staff is requesting City Council authorization to set a public hearing to consider the special assessments for the 12th Avenue Sanitary Sewer and Watermain Project No. 1992-4. BACKGROUND: 12th Avenue Sanitary Sewer and Watermain Project is essentially complete and all project costs have been identified. This project consists of installing sewer and watermain along 12th Avenue located in the Industrial Park. In addition a lift station was installed at 12th Avenue and Valley Park Drive and a future sewer crossing of the proposed Shakopee Bypass was constructed. The final project costs are$978,253.58,which consists of construction costs totalling$797,184.51 and engineering/administrative costs totalling $181,069.07 The engineering/administrative costs represent 22.7% of the construction costs. Of the total project costs, staff is proposing that the City pay for that portion of the sewer that crosses the future Shakopee Bypass. When this sewer was installed, the MWCC was proposing to install the new Chaska Interceptor on the south side of the bypass, hence the need for a crossing. They have now determined that the interceptor will go on the north side of the bypass. The sewer crossing the bypass no longer benefits the property owner and in fact this sewer will need to be reconstructed in the future so that it drains north to the interceptor rather than draining south. Because there is no benefit to the property, staff does not feel this segment can be assessed. The sewer crossing the bypass is 400 feet long and the cost for this crossing is $100,242.83. These costs are extremely high due to the rock excavation and the additional casing pipe required by Mn/DOT. Since staff does not feel that this portion can be assessed, the Sanitary Sewer Fund will need to fund this segment, unless the City Council desires to approach the MWCC on receiving a reimbursement for this sewer. In addition to the sewer, a portion of the project costs will be funded by Shakopee Public Utilities Commission (SPUC) for watermain oversizing costs, totalling $167,694.35. SPUC staff have reviewed and approved of these oversizing costs. The total amount of the project that will be assessed is $710,316.40. In addition, a trunk watermain charge of $60,600.00 will be levied, bringing the total amount assessed to $770,916.40. All properties that benefit from this improvement are owned by Valley Green Business Park so it is proposed to assess the entire amount to them. This project was petitioned for by Valley Green Business Park. Prior to levying any special assessments on this project a public hearing must be held. Special assessments must be certified to Scott County by November 30, 1993 in order to include them in the 1994 property tax statements. Attached is Resolution No. 3881, which declares the cost to be assessed and sets the public hearing for November 16, 1993. ALTERNATIVES: 1. Adopt Resolution No. 3881, which sets the date for the public hearing. 2. Deny Resolution No. 3881. 3. Table Resolution No. 3881 for additional information. RECOMMENDATION: Staff recommends Alternative No. 1. ACTION REQUESTED: Offer Resolution No. 3881, A Resolution Declaring the Cost to be Assessed and Ordering the Preparation of Proposed Assessments for 12th Avenue Sanitary Sewer and Watermain Improvements Between County Road 83 and Valley Park Drive, Project No. 1992-4 and move its adoption. DEH/pmp MEM3881 RESOLUTION NO. 3881 A Resolution Declaring The Cost To Be Assessed And Ordering The Preparation Of Proposed Assessments For 12th Avenue Sanitary Sewer And Watermain Improvements Between County Road 83 And Valley Park Drive Project No. 1992-4 WHEREAS, a contract has been let for the improvement of: 12th Avenue by sanitary sewer and watermain between County Road 83 and Valley Park Drive and the contract price for such improvements is $739,908.51, the construction contingency amounts to $57,276.00 and the expenses incurred or to be incurred in the making of such improvements amounts to $181,069.07, so that the total cost of the improvements will be $978,253.58. Of this cost the City of Shakopee will pay $100,242.83 as its share of the cost and the Shakopee Public Utilities Commission will pay $167,694.35 as its share of the cost. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. The cost of such improvement to be specially assessed is hereby declared to be $770,916.40. This consists of $710,316.40 for the costs of the improvements and $60,600.00 trunk water charges. 2. The City Clerk, with the assistance of the City Engineer shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and keep a copy of such proposed assessment in her office for public inspection. 3. That the City Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. BE IT FURTHER RESOLVED: 1. That a hearing shall be held on the 16th day of November, 1993, in the Council Chambers of City Hall at 7:30 P.M. or thereafter, to pass upon such proposed assessments and at such time and place all persons owning property affected by such improvements and proposed assessments will be given an opportunity to be heard with reference to such assessment. 2. That the City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper of the City of Shakopee at least two weeks prior to the hearing and she shall state in the notice the total cost of the improvements. She also shall cause mailed notice of such hearing to be given the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. Adopted in session of the City Council of the City of Shakopee, Minnesota held this day of , 1993. Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form: City Attorney CONSENT Iz MEMO TO: Dennis Kraft, City Administrator FROM: Dave Hutton, Public Works Director SUBJECT: Snow Emergency Routes DATE: October 11, 1993 INTRODUCTION: Two revisions to the designated snow emergency routes will require a revision to City Code, Section 9.50 Subdivision 8. BACKGROUND: Al snow emergency routes are listed in the City Code, Section 9.50, Subdivision 8. Staff is requesting City Council approval to revise the snow emergency routes as follows: 1. With the opening of the Market Street railroad crossing, all of Market Street between 1st Avenue and 10th Avenue should be a snow emergency route. Minnesota Street between 1st Avenue and 4th Avenue can be eliminated. 2. With the opening of the new bridge and minibypass downtown, Holmes Street should no longer be on the snow emergency route but rather replaced with Fuller Street, from 1st Avenue to 10th Avenue. Attached is the appropriate ordinance revision as prepared by the City Attorney. ACTION REQUESTED: Move to adopt Ordinance No. 363, An Ordinance of the City of Shakopee, Minnesota, Amending Chapter 9, Parking Regulations, Sec. 9.50, Parking During Street Maintenance, Snowy Weather, and in Central Business District, by Repealing Subd. 8, Snow Emergency Routes, and Enacting One New Subdivision in Lieu Thereof, Relating to the Same Subject and move its adoption. DEH/pmp PWORKS ORDINANCE NO. 363 , FOURTH SERIES AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING CHAPTER 9, PARKING REGULATIONS, SEC. 9 . 50, PARKING DURING STREET MAINTENANCE, SNOWY WEATHER, AND IN CENTRAL BUSINESS DISTRICT, BY REPEALING SUBD. 8, SNOW EMERGENCY ROUTES, AND ENACTING ONE NEW SUBDIVISION IN LIEU THEREOF, RELATING TO THE SAME SUBJECT. THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, ORDAINS : Section 1 - That City Code Chapter 9, Parking Regulations, Sec . 9 . 50 , Parking During Street Maintenance, Snowy Weather, and in Central Business District, is hereby amended by repealing Subd. 8, Snow Emergency Routes, and enacting one new subdivision relating to the same subject, which shall read as follows : SEC. 9 .50 . PARKING DURING STREET MAINTENANCE, SNOWY WEATHER, AND IN CENTRAL BUSINESS DISTRICT. Subd. 8 . Snow Emergency Routes. The following streets shall be designated as snow emergency routes : Apgar St . from Sixth Ave. to Tenth Ave . Fourth Ave. from Holmes St . to Marschall Rd. Harrison St . from Third Ave. to Sixth Ave . and Tenth Avenue to Vierling Drive Fuller [Holmes] St . from First Ave . to Tenth Ave . Market St . from First [Fourth] Ave . to Tenth Ave. [Minnesota St . from First Ave . to Fourth Ave . ] Scott St . from First Ave. to Sixth Ave . Shakopee Ave. from Tenth Ave . to Eleventh Ave . Sixth Ave . from Holmes St . to Adams St . Spencer St . from First Ave. to Tenth Ave . Tenth Ave . from Marschall Rd. to Shakopee Ave . Third Ave . from Harrison St . to Scott St . Twelfth Ave. from Adams St . to Taylor St . Vierling Dr. from County Rd. 16 to County Rd. 79 Note : The bracketed language [thus] is deleted; the underlined language is inserted. Section 2 - General Provisions. City Code Chapter 1, General Provisions and Definitions Applicable to the Entire City Code Including Penalty For Violation, and Section 9 . 99, Violation a Misdemeanor or Petty Misdemeanor, are hereby adopted in their entirety by reference, as though repeated verbatim herein. Section 3 - Effective Date. This ordinance becomes effective from and after its passage and publication. Passed in session of the City Council of the City of Shakopee, Minnesota, held this day of , 1993 . Mayor of the City of Shakopee Attest : City Clerk Approved as to form: i / j City Attorney (// Published in the Shakopee ValleyNews on the P day of , 1993 . [12MEMO2] 13Q MEMO TO: Honorable Mayor and Council FROM: Dennis R. Kraft, City Administrator RE: Resolution No. 3885 - Unfunded Mandates DATE: October 18, 1993 The League of Minnesota Cities (LMC) is collaborating with the National League of Cities and other associations representing local government in an important public education campaign to explain the impact of the dramatic increase in the mandates imposed on cities by the federal government . The effort will begin on Wednesday, October 27, "Unfunded Mandates Day" in cities throughout the United States . The LMC is urging all member cities to help educate citizens and lawmakers about how unfunded federal and state mandates effect cities. The trend of unfunded mandates must stop or our free local government democracies will become mere administrative agencies of a central government . It is recommended that the City Council approve the attached resolution on unfunded mandates and direct staff to send a copy to the LMC before October 27th. ACTION REQUESTED: Offer Resolution No. 3885, A Resolution on Unfunded Mandates and move its adoption; and direct staff to send a copy to the LMC before October 27th. RESOLUTION NO. 3885 RESOLUTION ON UNFUNDED MANDATES WHEREAS, unfunded mandates on local government have increased significantly in recent years; and WHEREAS, federal and state mandates do not consider local circumstances, costs, or capacity, and subject cities to civil or criminal penalties for noncompliance; and WHEREAS, federal and state mandates require compliance regardless of other pressing local needs and priorities affecting the health, welfare, and safety of citizens; and WHEREAS, federal and state burdens on local governments force cities to impose a combination of higher local taxes and fees on local taxpayers and/or reduce local services to citizens; and WHEREAS, federal and state mandates are often inflexible, "one- size-fits-all" requirements with unrealistic time frames and overly specific and inflexible procedures where less costly alternatives may be just as effective; and WHEREAS, the cumulative impact of these laws and rules directly affect the citizens of our cities; and WHEREAS, the League of Minnesota Cities, in collaboration with the National League of Cities, seeks to help citizens understand and then help encourage law-makers to reduce the burden and inflexibility of unfunded mandates, beginning with a National Unfunded Mandates Day on October 27, 1993 ; NOW, THEREFORE, BE IT RESOLVED that the City of Shakopee endorses the League' s efforts and those of the National League of Cities and will fully inform our citizens about the impact of state federal mandates on our local spending and taxes; BE IT FURTHER RESOLVED that the City of Shakopee endorses this year of mandate awareness, beginning on October 27 by informing and working with members of our Congressional delegation and our state legislators to educate them about the impact of federal and state mandates and the actions necessary to reduce these burdens on our citizens . Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of 1993 . Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form: City Attorney