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11/05/1997
TENTATIVE AGENDA CITY OF SHAKOPEE -WEDNESDAY- REGULAR R SESSION SHAKOPEE, MINNESOTA NOVEMBER 5, 1997 LOCATION: 129 Holmes Street South Mayor Jeff Henderson presiding 1] Roll Call at 7:00 PM 2] Recess for an Economic Development Authority Meeting 3] Re-convene 4] Approval of Agenda 5] Approval of Consent Business - (All items noted by an* are anticipated to be routine. After a discussion by the Mayor,there will be an opportunity for members of the City Council to remove items from the consent agenda for individual discussion. Those items removed will be considered in their normal sequence on the agenda. Those items remaining on the consent agenda will otherwise not be individually discussed and will be enacted in one motion.) 6] Liaison Reports from Councilmembers 7] Mayor's Report 8] RECOGNITION BY CITY COUNCIL OF INTERESTED CITIZENS *9] Approval of Minutes: September 30, 1997,Adj. Reg. Session, September 30, 1997, Work Session, and October 7, 1997 Regular Session *10] Approve Bills in the Amount of$564,943.07 11] Communications 12] Public Hearings: A] 7:00 P.M. - proposed improvements to East Dean Lake Collector Street by street construction, utilities and appurtenant work-Res.No. 4785 B] 7:30 P.M. - applications for a Minnesota currency exchange license - 1) Shakopee Check Cashing, 2) Game Financial Corp., and 3) DRM LLC of Shakopee dba/American Pawnbrokers - Resolutions 4782, 4783, and 4784 C] Continuation - proposed assessments for Sarazin Street between 4th Avenue and CR-16; Roundhouse Street between 4th Avenue and CR-16; and 4th Avenue between Shawnee Trail and Sarazin Street, Project No. 1994-10 1. Res. No. 4787, Corner Lot Adjustment, Assessment Policy Revision 2. Res. No. 4776, Adopting Special Assessments TENTATIVE AGENDA November 5, 1997 Page -2- 13] Recommendations from Boards and Commissions *A] Final Plat of Krystal Addition located west of CR-79 and north of the bypass, Res.No. 4771 14] General Business A] Park and Recreation 1. Lions Park Hockey Boards B] Community Development 1. Transit Policy and Service Issues C] Public Works and Engineering 1. Snow Plowing Policy - Res. No. 4786 *2. Snow Emergency Routes - Ord. No. 504 *3. Award Bid for 16 Foot Rotary Mower *4. Traffic Control Signage Authorization at Various Intersections D] Police and Fire E] General Administration 1. Canvassing Election Returns - Res. No. 4778 *2. Amending Personnel Policy: 1) definitions, 2) compensation relating to step increases, 3) eligibility benefits for part-time employees -Res. No. 4788 *3. AFLAC Dental Insurance 4. Tech IV Reclassification for John Delacey 5. Residential Parking Permit Program- Res. No. 4763 - tabled 10/7 *6. Legislative Policy Adoptions 7. Section 125 Cafeteria Plan 15] Other Business 16] Recess for executive session to discuss labor negotiations and pending litigation 17] Re-convene 18] Adjourn to Tuesday,November 18, 1997 at 7:00 P.M. REMINDER: November 17, 1997, budget work session at 4:00 P.M. TENTATIVE AGENDA ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF SI:IAKOPEE, MINNESOTA Regular Meeting Wednesday,November 5, 1997 1. Roll Call at 7:00 p.m 2. Approval of the agenda 3. Approval of September 30, and October 7, 1997 minutes 4. Financial. A.)Approval of Bills 5. EDA representation on the Downtown/ 1st Ave Revitalization Ad Hoc Committee 6. Proposal by Community Partners,Inc. for grant application preparation and program administration services for DTED Small Cities Development Program grant. 7. Other Business: 8. Recess to discuss matters under attorney-client privilege 9. Re-convene 10. Adjourn edagenda.doc OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY ADJ. REG. SESSION SEPTEMBER 30, 1997 Members Present: Jane DuBois; Jeff Henderson; Cletus Link; Burl Zorn; and President Bob Sweeney Members Absent: None. Staff Present: Mark McNeill, City Administrator;R. Michael Leek, Community Development Director; Judith S. Cox, City Clerk; and Jim Thomson, City Attorney. 1. Roll Call. President Sweeney called the meeting to order at 8:12 p.m. Roll was taken as noted above. President Sweeney noted that since the financial numbers were not available, the public hearing would be opened and then continued. 2. Approval of Agenda. Zorn/Henderson moved to approve the agenda as printed. Motion carried unanimously. 3. Public Hearing on Master Lease-Blocks 3 and 4 (Continued from 9/16 meeting). Henderson/DuBois moved to continue the public hearing to October 7, 1997, at 7:00 p.m. Motion carried unanimously. 4. New Business -Blocks 3 and 4: A. Resolution No. 97-9, approving the Development Agreement and Tax Increment Pledge Agreement; B. Resolution No. 97-10, modifying the TIF Plan for TIF District No. 10; C. Resolution No. 91-11, approving Financing Documents. No action was taken. 5. Other Business. There was no other business. OFFICIAL PROCEEDINGS OF THE SEPTEMBER 30, 1997 ECONOMIC DEVELOPMENT AUTHORITY PAGE 2 ADJ. REG. SESSION 6. Adjourn. Henderson/Link moved to adjourn the meeting. Motion carried unanimously. Meeting adjourned at 8:14 p.m. 4C- Ju ith S. Cox E. D. A. Secretary Janet Vogel Freeman Recording Secretary OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE, MN REGULAR SESSION OCTOBER 7, 1997 Members Present: Henderson, DuBois, Link, Zom, and President Sweeney Members Absent: None Staff Present: Mark McNeill, City Administrator; R. Michael Leek, Community Development Director; Paul Snook, Economic Development Coordinator Others Present: Gregg Voxland, Finance Director; Judith S. Cox, City Clerk; and Steve Bubul, City Attorney. 1. Roll Call President Sweeney called the meeting to order at 7:03 P.M. Roll was taken as noted above. 2. Approval of Agenda Henderson/Zom moved to approve the agenda as presented. Motion carried unanimously. A. Approval of July 15. 1997, Minutes DuBois/Link moved to approve the August 21 and September 9, 1997, minutes. Motion carried unanimously. 3. Financial A. Approval of Bills DuBois/Link moved to approve bills in the amount of$216.34 for the EDA General Fund and $9,657.60 for the Blocks 3 &4 Fund. Motion carried unanimously. 4. Public Hearing on Master Lease - Blocks 3 & 4 President Sweeney opened the public hearing on the master lease for Blocks 3 &4. He said the key element is the agreement with the master tenant, The issue has been the minimum value to be placed on the taxable portion of the property. The County Assessor has placed a value of 1,750,000. The concern was that property tax value could be appealed, which could result in a reduction in available tax increment financing and the project would not financially work. The agreement provides that the $1,750,000 is the valuation to be placed; the master tenant has the right to appeal this valuation once. If he appeals, whatever the court sets as the valuation becomes the final floor, but it cannot drop below $1,500,000. Official Proceedings of the October 7, 1997 Shakopee Economic Development Authority Page 2 Barb Portwood, Leonard Street & Deinard, approached the podium and presented a summary of the development agreement. She said there were a few changes which included financing for housing not to exceed $3,544,000 of HRA revenue bonds, backed by the City's general obligation. The actual estimate at this time is closer to $3,480,000. Approximately $1,470,000 of special benefits tax bonds are to be issued by the HRA. Retail changes include: Gross revenue bonds purchased by the City as a loan under the City's development statutes to assist projects. Also $2,115,000 of HRA tax increment revenue bonds, backed by general obligation guarantee by the City of Shakopee. And $235,000 of HRA special benefits tax bonds will be directed toward the retail portion. She said the agreement has basically been tightened up with language changes. President Sweeney explained that changes in financing are the result of Comm. Link's request to minimize the risk of the City having to use general levy funds, or to have a special levy to back the bonds. He explained that Mr. Ruff's suggestions for retail changes would allow for a substantially lower interest rate which would result in a more rapid pay-off of the bonds. He explained that the elimination of gross revenue bonds sold to the public, as opposed to HRA revenue bonds reduces the interest rate and speeds up the pay-off. Kathy Aho, Springsted Inc., approached the podium and said her objective has been to reduce the amount to be borrowed as much as possible without threatening the integrity of the project; and to try to accelerate as much as possible, the highest interest rate debt; and to try to increase coverage factors over all so that there is the best possible coverage. President Sweeney asked for comments from the public. Gary Morke, 1042 Merrifield, approached the podium and asked if the document be discussed would be available as he did not have a copy. A discussion ensued as to whether the market value could be below the $1,5000,00 as well as concerns about tax increment. President Sweeney said there is some surplus tax increment and the plan is to set this aside as a sinking fund. Kathy Aho stated that the class rate for the amount in excess of the base amount was determined to be 3.5%. The current class rate is 4.5% and the difference between the 3.5% and the 4.5% will generate approximately $10,000 the first year. She said there is an assumption that the tax increment law allows for an administrative fee of 10%. She said the administrative fee on tax increment is between $4,000 and $5,000 and should generate $14,000 to $15,000 in excess the first year. Official Proceedings of the October 7, 1997 Shakopee Economic Development Authority Page 3 A discussion ensued regarding class rate changes on tax increment. Steve Bubul said the analysis that has been conducted to reach the minimum market value is assuming that the class rates drop to the target rate of 3.5%. He also said the market value minimum does not bind the assessor. There is no guarantee this will be the absolute minimum but the chances of there being something below this are extremely small. In response to a question as to where the $970,000 in City funds will come from, Gregg Voxland stated the funds would come from the general service fund for equipment. In response to a question regarding tax valuation and appeals, he said that because the property is in a tax increment district, the County is required to notify the City if there is an appeal of tax valuation on a property. The City would get notice of the appeal and, if necessary, could file an injunction. Henderson/Zorn moved to close the public hearing. Motion carried unanimously. 5. New Business -Blocks 3 & 4 A. Resolution No. 97.9, Approving the Development Agreement and Tax Increment Pledge Agreement Zorn/Henderson offered Resolution No. 97-9, A Resolution Approving the Execution and Delivery of a Development Agreement and a Tax Increment Pledge Agreement Relating to the River City Centre Project, and moved its adoption. Motion carried 4-1 with Comm. Link opposed. B. Resolution No. 97-10, Modifying the TIF Plan for TIF District No. 10 Zom/Henderson offered Resolution No. 97-10, A Resolution Modifying Tax Increment Financing Plan for Tax Increment Financing District No. 10, and moved its adoption. Motion carried 4-1 with Comm. Link opposed. C. Resolution No. 97-11, Approving Financing Documents Henderson/DuBois offered Resolution No. 97-11, A Resolution Approving Certain Financing Documents Relating to the River City Centre Project, and moved its adoption. Motion carried with Comm. Link opposed. 6. Other Business None. Official Proceedings of the October 7, 1997 Shakopee Economic Development Authority Page 4 7. Recess to Discuss Matters Under Attorney-Client Privilege A recess was taken at 7:42 P.M. The City Council meeting was re-convened at 7:42 P.M.; and the EDA met in executive session between 9:30 and 10:03 P.M. to discuss matters permitted under attorney-client privilege. No action was taken during the executive session. 8. Adjournment The meeting was adjourned to Tuesday, October 21, 1997, at 7:00 P.M. C7P 0 d With S. Cox E.D.A. Secretary Esther TenEyck Recording Secretary 44/4 CITY OF SHAKOPEE Memorandum TO: President & Commissioners Mark H. McNeill, Executive Director FROM: Gregg Voxland, Finance Director SUBJ: EDA Bill List DATE : October 30, 1997 Introduction Attached is a listing of bills for the EDA and the Blocks 3&4 project for the period 10/17/97 to 10/30/97 . Action Requested Move to approve bills in the amount of $324 . 36 for the EDA General Fund and $1, 570 . 64 for the Blocks 3&4 Fund. ' E-, 0 0 0 0 0 0 0 0 0 0 0 0 11 H 0 0 0 0 0 0 0 0 0 0 0 O II W 0 0 0 O O O 0 0 O O O O II a 0 0 l0 0 t0 t.0 l0 1-1 M W 14 11 0 H co (1 M CO N d+ l0 l0 lD 0 H . . . H N CO O1 cN d' d' Ln Ln 0 0 0 Lfl PI O O N N N 14 N S N N al W N H M M M Ln Ln Ui In CO O H H H H H H II A CO II rrnn c/a II 0 0 0 0 0 co M o N M rn ML..1 H H H co co co co co c.... V� V ch d' d' (.Y. 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Hr-1H H H K 114 14 H H * * p4 g CITY OF SHAKOPEE Memorandum TO: Economic Development Authority FROM: Paul Snook, Economic Development Coordinato SUBJECT: Request for payment of Rehab Grant by Tom Gestach DATE: October 28, 1997 Introduction and Background: Tom Gestach(owner of the building housing the Fraternal Order of Eagles) entered into a rehabilitation grant program agreement for a grant in the amount of$4,532.00 which had been approved by the EDA at its May 20, 1997 meeting. The grantee now wishes to close out the grant transaction, and has submitted an invoice in the amount of $4,532.00. Copies of the grantees invoice and lien waivers are attached to this memo for the EDA's information. Staff examined the subject property and found the agreed upon work to be complete. Budget Impact: $4,532.00 from the EDA fund No. 4430. Action Requested: Offer and pass a motion approving the attached rehab grant claim. tomgpymo.doc - INVOICE - DATE: October 30, 1997 TO: City of Shakopee Economic Development Authority 129 Holmes St .S. Shakopee, MN 55379 FOR: Rehab Grant for work done at 220 W. 2nd Ave. (Eagles Club bldg) - Shakopee BALANCE DUE $4,532 .00 REMIT TO: Tom Gestach 16150 Dutoit Rd. Carver, MN 55315 ii ! `r .0.4( /.�.1�1 Claimant Signature � , . r RECEIPT AND WAIVER OF MECHANICS' LIEN RIGHTS N. B. It is important that the following directions be closely followed as otherwise the receipt WILL NOT BE ACCEPTED. 1 1. This is a LEGAL INSTRUMENT and must be executed accordingly by officers of corpora- t 1 tions and by partners of co-partnerships. 2. It is important that ALL the blanks be completed and that the AMOUNT PAID BE SHOWN. 3. If payment is not in full to date, so state. SHOW UNPAID BALANCE, and strike out last g three lines. 1 4. A receipt similar to this or legal waiver of lien rights will be required for all plumbing, heating and plastering material, etc. 5. NO ERASURES OR ALTERATIONS MUST BE MADE. E , 19C (DATE) The undersigned acknowledges having received payment of -4--)e441 s ..: r •a' h 24-4 4i w evv DOLL4RS ($ • J{0020. L, (Amount Paid) from tater. ass L in full payment of 1 _ (Name of Payor) all S kt. � -v A &ors ,f ,�.. ac� CO3, 1.- kev., . .. 4- 6-\\_ Lk,k^ f (Rind of Material or Labor) by the undersigned delivered or furnished to.(or performed at) C9a0 a-, `tom- 1 f '` ham- I l (Street Address or Legal Description) and for value received hereby waives all rights which may have been acquired by the undersigned to file mechanics' liens against said premises for labor, skill or material furnished to said premises prior to the date hereof. e PLUMBING, HEATING and PLASTERING By trif461- 1 contractors must sign statement on reverse hereof Co' "e ��(6 (TIT .address 0. 1` ¢ 1^(\k3 t • yz Windows ORDER - 052, z to .dorm and Screen T b Ga agetD Storm TIMBERLAND EXTERIORS INC. 9010 ne:948ryant ve.So. Phone:948-1151 sidinglTrimBLOOMINGTON, MN 55420 Date 3 19 all TIMBERLAND EXTERIORS INC. Please enter myfrc...19siorproduuctts as shown below to be furnished to: Customer's Phone Number Name /CSM eskjc) Home .4146-43\\oZ Street Address 9,9Ce 9.' Av-'W- Work Mc EjSp-646✓ Mrs. City S cc,. M 5'-VII\ State ON I\ Zip 5S 311 SPECIFICATIONS:Furnish and Install: 111 Not Installed: Garage Doors Model# Size Color Self Storing Storm Windows.Color Double Hungs Sliders Other D Aluminum 0 Vinyl Storm Doors.Model# L.H. R.H. Color ❑Aluminum 0 Solid Core q Vinyl Replacement Windows:Double Hungs t G� Sliders Picture Color(A X-C. ('$Low E Glass 10 Argon Gas 0 Full Screen 31 Screen 0 No Screen ❑Obscure 0 Grids C/D _ Vinyl Bay or Bow.Style Color^^ 0 Low E Glass 0 Argon Gas 0 With Root 0 Without Roof a Vinyl Casement/Awning Window.Style o� Color '- 4c, qi Low E Glass l Argon Gas 0 Obscure _ Vinyl Hopper.Style Color 0 Clear Glass 0 Exolite 0 Clear or 0 Bronze.0 Low E Glass 0 Argon Gas Vinyl Garden Window.Style Color Shelf :D Low E Glass 0 Argon Gas ❑Clear Glass Only 0 Exolite 0 Clear - - Vinyl Patio Door.Style Color Operator 0 Left .0 Right 0 Low E Glass 0 Argon Gas A_ Entry Door Style (' 14%4`'4 L.H. R.H. Texture Int.Color Ext.Color Stain Peep Site Lock Style&Finish Cover Exterior Casing with Aluminum Trim.Color S'.e Q., ihl.+t D C....F, Haul Away j,.'4es ❑No OTHER-Describe AL 7} 4 - e dk A4"-roeme A=te Ne.siskA V1wyI /4,:loo e tn�+,,.�e• 4--T-N 'v , w�„1,....s 3 vs.0 r"�- si,s,eana.i rx r-s `rA-30 Sub OC . \os� P k a I ,.. .451°M WINDOW LOCATION EXAMPLE 0=OMIT X=WINDOW 1st FLOOR 2nd FLOOR 3rd FLOOR BASEMENT FRONT FRONT FRONT FRONT ALL OF THE FOREGOING TO COST$ ;Deposit paid with order$ ;Ck# Cash balance due on installation$ - ' .By loan •' - NOSICE "You,fhe buyer may cancel this purchase at any time prior ANY HOLDER OF THIS.ANDSUMER CREDIT CONERACT I$ , to midnibht of the°third-business day'after the date of this COULD ASSERT RTCAGAIN T THE'SEL DEFENSES WHICH 00HE DEBYCA ., perchase:•+Seerattached-notice,:of'.canceilation form.for an COULD AGAINST THE"SELLER.`OF GOODS OR'''" explanatxm of this nght" SERVICES OBTAINE)•,PURSUANT. HERETQ.OR-,WITH.THE Is,1 ,r. s : - -' PROCEEDS HEREOF RECOVERY HEREUNDER BY THE DEBTOR ;,„ ,> - SHALL NOT "EXCEED AMOUNTS PAID BY. THE .DEBTOR Timberland'Exteriors Inc.Is NOt responsible HEREUNDER. for any painting,staining or electrical unless otherwise stated Herein. Signed C Purchaser j ' rcnaser • Timberland Exteriors,Inc. a ...ear r®rr l--��- iii.'` This Contract Subject to the Approval of Our Credit Department SEE BACK OF SHEET FOR FURTHER NOTICES WHITE—ORIGINAL CANARY—SALESMAN'S COPY PINK—CUSTOMER'S COPY City of Shakopee Downtown Business District Rehabilitation Grant Program Agreement THIS AGREEMENT, is entered into this day of 1997,by and between the SHAKOPEE ECONOMIC DEVELOPMENT AUTHORITY (hereinafter EDA)and -12,w1 GPs-f'ach/rp.� . (hereinafter GRANTEE). WHEREAS,the EDA has established a Rehabilitation Grant Program,pursuant to ' which it has offered funding assistance to entities in the Downtown Business District of the City of Shakopee; and WHEREAS,the Grantee has made application for a Grant under the terms and conditions of the Rehabilitation Grant Program Guidelines for the work described in attached Exhibits A to be performed upon the structure(hereinafter the Building), located on the following described property in the City of Shakopee, Scott County, Minnesota; Lot � giocL 32 � E 3," o-C- 9 G•-1.1 4 sc,zrR WHEREAS, on ria ti (month) 20-4' (date), V61'1 (year) the EDA approved a Grant to theantee in the amount of$ 4, 532, OO . NOW THEREFORE, in consideration of the mutual covenants and conditions hereinafter contained,the parties hereto agree as follows: Scope of Work Grantee agrees that the entire scope of work as set forth in Exhibit A, attached hereto and made a part of hereof, shall be performed on the building. Grantee agrees that said work shall be completed within one(1)year of formal notification of Grant award unless otherwise previously approved by the EDA. If Grantee is financing his/her portion of the project cost with a loan,the Grantee shall submit a copy of a letter from the lender committing to the loan, indicating the loan amount,term and interest rate. Such letter shall be attached to this Agreement as Exhibit . '4/p, EDA Grant of Funds Upon the execution of this Agreement, and after submittal of an invoice for the Grant amount, lien waivers, and all bona fide contractor invoices, and after the work as outlined in Exhibit A has been completed by the Grantee and inspected and approved by city staff, the EDA agrees to grant to the Grantee funds in an amount not to exceed$ 4, 53 2.00 . The actual amount of the Grant shall GNTAGRED.DOC/PCS 1 Shakopee Rehabilitation Grant Program Agreement-Page 2 EDA Grant of Funds (continued) not exceed twenty-five percent(25%)of the total amount expended by the Grantee on the work as described in Exhibit A,or as otherwise approved by the EDA. Default and Remedies A. Grantee shall be considered in default of the terms and conditions of this Agreement when any of the following circumstances exist: 1. Grantee fails to make building improvements as specified in Exhibit A. 2. If lien waivers have been filed against the property and/or Grantee. 3. If the Grantee shall be in default of any of the provisions of the loan agreement or security agreement with a lender supporting the seventy-five percent(75%)commitment of the Grantee. B. In the event that the Grantee shall be in default of its obligations under this Agreement as defined by Subparagraph A above,the EDA shall have the right,but not the obligation to do the following: 1. Terminate this Agreement; 2. Seek such other legal and equitable relief in addition as may be allowed by law. IN WITNESS WHEREOF,the parties have set their hands the day and date first shown above. SHAKOPEE ECONOMIC DEVELOPMENT AUTHORITY Chair Executive Director Attest: City Clerk GRANTEE / !, , By: / W�r r.44Nit GNTAGRED.DOC/PCS 2 EXHIBIT A 1—owl 6-&54- 1-yr-.0. .� Downtown Business District RehGrant Agreement g ement Scope of Work DESCRIPTION OF WORK ESTIMATED COST Remove existing siding; install new $14,700.00 new vinyl siding Remove existing windows; install new $ 3,430.00 vinyl windows and entrance doors TOTAL $18,130.00 x 25% (grant portion) = $ 4,532.00 GNTAGRED.DOC/PCS 3 6.4.:7/(9./e, 45 CITY OF SHAKOPEE Memorandum TO: Economic Development Authority FROM: Paul Snook, Economic Development Coordinator SUBJECT: EDA representation on the Downtown/ 1st Avenue Ad Hoc Committee DATE: October 29, 1997 Background: At its October 26th meeting, the EDA appointed seven volunteers to the Downtown/ 1st Avenue Revitalization Ad Hoc Committee. The committee will be comprised of the seven volunteers in addition to one EDA board member and the Economic Development Coordinator. To date, EDA board member representation for this committee has not been determined. The EDA is asked to appoint a board member to the Downtown / 1st Avenue Revitalization Ad Hoc Committee. Action Required: Offer and pass a motion to appoint an EDA board member to the Downtown/ 1st Avenue Revitalization Ad Hoc Committee. adhocmo6.doc • • EDA Community Partners ResearCll>i, Inc. 777-1813 ■ Fag(612)'779-7102 10865 32nd Street North • Lake Elmo MN 5504G': ■ Phone(612) November 4, 1997 Shakopee Economic Development Authority , 129 South Holmes Street Shakopee, MN 55379 Dear EDA Board Members and Staff: Thank you for the opportunity to submit a prop sal to assist you with the development and preparation of a Small Cities Development Pr .Wham application. Based on our discussions with staff; we have designed our proposal to include,.the following stages: Information Gathering ► Visual survey of the downtown target.airea ► Block by block inventory of commercial buildings and housing units ► Preliminary condition survey of comneiicial buildings and housing units ► Survey occupancy status of buildings;ar4 units • Obtain information on infrastructure Herds of area ► Involve information from various downi own and citizen committees Part I Application ► Develop strategies based on target aneainformation(type of activities,budget, activity goals, etc.) ► Prepare Part I application ► Meet with DTED staff Community Development Surveys and Inter►e ks ► Evaluate Part I application based on 1 ED meetings ► Survey all target area residents ► Conduct final building condition survey ► Meet individually with each commercial property owner and large apartment owner Part II Application-Preliminary Work ► Evaluate program based on survey information ► Prepare program structure and guidelines for each activity • Prepare a budget(per building rehab,ccists, activity costs, leveraged funds, etc.) ) ► Obtain commitments from funding scaui'ees (MIF�1, CAP, Banks, private, etc. • Work with engineer to prepare repots,+if necessary • Inspections and work write-ups(appirotcimately 6 per activity) ► Establish public hearing • • Z00 Lj NNI 1110.41400 41766 ELL STZ T Xvd Z£:£Z 3TLL L6/170/TT bA6 November 4, 1997 page 2 • Part II Application-Draft ► Prepare a draft application(all components, narrative,budget, survey, etc.) ► Submit draft to DTED ► Meet with DTED staff to discuss draft; ► Public Hearing Part II Application-Final Draft • Prepare final draft based on DTED staffrecommendations ► Prepare cover,tabs, etc. • Deliver copies to DTED and City Post Application Submission • ► Provide DTED with additional information as requested ► Continue to discuss application with DPED staff on an ongoing basis Fee Proposal We propose to prepare the SCDP application for the following fee: ► $11,500 to $17,900 Please consider the following when reviewing tliis fee structure: ► This fee is for the preparation of a coin Irehensive application ► This fee is inclusive of all expenses retailed to the project ► The proposal provides a range depeniirg on the level of City supplied assistance-for example, if City/EDA staff are actively i4nvolved in collecting and obtaining necessary information, our fee can be reduced. 'rail application responsibilities are ours, the fee will be at the top end of the range. Thank you for the opportunity to submit this pi oposal. We look forward to discussing it with you at your November 5th meeting. Sincerely, 441/M11; Steven H. Griesert President • £OOQJ NNI J IOd1IOO 51756 ELL 8TZ T XVd E£:EZ dfL L6/60/TT e. kg # CITY OF SHAKOPEE Memorandum TO: Economic Development Authority FROM: Paul Snook,Economic Development Coordinator SUBJECT: Proposal by Community Partners,Inc. for grant application preparation and program administration services for Small Cities Development Program DATE: October 29, 1997 Introduction and Background: At its August 19, 1997 meeting, the EDA directed staff to pursue a Small Cities Development Program (SCDP) grant for downtown Shakopee and to work with Scott County HRA staff in selecting a consultant to start the application process.For your information,attached is the memo from the August 19 EDA meeting regarding this matter. City and BRA staff recently met with Community Partners, Inc. regarding their services for preparing a Small Cities Development Program application and related program administration for the City of Shakopee. The meeting also involved staff updating Community Partners on current downtown revitalization activity and future strategies. Scott Knudson and Steve Greisert,the principals of the firm, have extensive experience with the competitive SCDP program and have helped many other communities become successful grantees. They will be at Wednesday evening's meeting to present a proposal for SCDP grant application and administration services. Options: 1. Accept Community Partners,Inc.'s proposal so as to move the SCDP application process forward. 2. Request additional information from Community Partners,Inc. 3. Request additional information from staff Action Requested: Direction to staff regarding the alternative the EDA wishes to pursue scdpmmo2.doc COMMUNITY PARTNERS INCORPORATED COMPREHENSIVE HOUSING STUDIES.MARKET STUDIES. PROGRAM RESEARCH AND DEVELOPMENT Community Partners Research, Inc.,offers professional consulting services and research for housing development,housing markets and community development projects. With extensive experience as housing and community development practitioners, the members of the Community Partners Research team bring real-world perspectives and solutions to housing studies and market research projects. Steven H. Griesert and Scott L Knudson,have developed outstanding reputations as innovative problem solvers in their areas of expertise. Their combined experience in assisting public and private sector clients exceeds thirty years. First as individuals and now as a team,the members of Community Partners Research. Inc, are dedicated to approaching each challenge with enthusiasm,creativity,and honest, thoughtful effort. COMPREHENSIVE HOUSING STUDIES Needs Identification Demographic Data Collection and Analysis Housing Condition Analysis Recent Sales Analysis Rental Housing Analysis Program and Resource Identification Program Recommendations and Timeframes MARKET STUDIES Market Conditions and Inventory Affordability Analysis Demographic Data Collection and Analysis Market Surveys Sales and Rent Analysis Trends and Forecasts Site Analysis PROJECT RESEARCH Program Specific Research Program Analysis and Recommendations Site Analysis Customized Research PROGRAM DEVELOPMENT Competitive Grant Application Preparation Program Structure and Planning Delivery System Development Program Administration Federal/State Compliance Reporting Faribault Office I '1'� Lake Elmo Office • r�ro� rtt 1011 Newhall Drive '`-` : �'j S' " '-? 10863 32nd Street North i, i{ ti • �i Lake Ehuo,MN 35042 Faribault,MN 55021 ' Tel (507) 333-2445 rjilh > 14M`Yw i Tel(612)717.1913 �._.__.' i _t+ ll ABBREVIATED PROFESSIONAL RESUME SCOTT L KNUDSON Education Bachelor of Arts Macalester College Qualifications Executive Director Minnesota NAHRO Executive Director Carver County HRA Mr.Knudson is a member of the National Association of Housing and Redevelopment Officials(NAHRO)and is a past recipient of the Minnesota NAHRO Outstanding Achievement Award. He also serves as a Board Member for Multi-MAC, the non-profit service arm of the Minnesota Mortgage Bankers Association. STEVEN H. GRIESERT Education Master of Business Administration College of St. Thomas Qualifications Director of Community arid.Economic Development Faribault,MN Housing Coordinator Faribault,MN Adjunct Professor Mankato State University Mr. Griesert is a member of the International City Mangers Association, the National Association of Housing and Redevelopment Officials (NAHR.0), the Economic Development Association of Minnesota and the Minnesota Public Transit Association. " Minnesota Department of Trade and Economic Development(DTED) Business and Community Development Division 500 Metro Square 121 7th Place East ••• Saint Paul,MN 55101-2146 •4 .1 • 612/296-5005(Metro area) 1-800-6574858(Toll free) Fax:612/296-5287 ..0` ' TTY/TDD:612/282-6142 •••.""dna s'o'.�' Small Cities Development Program Program purpose: To provide decent housing,a suitable living environment and expanding economic opportunities,principally for persons of low-and-moderate income. How it works: Provides federal grants from the U.S.Department of Housing and Urban Development(HUD) to local units of government on a competitive basis for a variety of community development projects. Eligible applicants: Cities and townships with populations under 50,000 and counties with populations under 200,000.Indian tribal governments,which can receive funds directly from HUD,are ineligible for this program. Minimum Proposed projects must meet one of three national objectives: requirements: 1. Benefit to low-and-moderate income persons; 2. Elimination of slum and blight conditions;or 3. Elimination of an urgent threat to public health or safety. In addition,proposed project activities must be eligible for funding,project need must be documented,and the general public must be involved in the application preparation. Eligible projects: State program rules subdivide grant funds into three general categories: 1. Housing Grants.Small Cities Development Program(SCDP)funds are granted to a local government which,in turn,loans funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental,single-family or multiple family housing rehabilitation.Loan agreements may allow for deferred payments or immediate monthly payments.Interest rates may vary,and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans.In all cases,housing funds are directed to low-and-moderate income persons. 2. Public Facility Grants.SCDP funds are granted for wastewater treatment projects,including collection systems and treatment plants;fresh water projects, including wells,water towers,and distribution systems; storm sewer projects; flood control projects;and,occasionally,street projects. 3. Comprehensive Grants. Comprehensive projects frequently include housing and public facility activities described above. In addition,comprehensive projects may include an economic development activity,which consists of loans from the grant recipient to businesses for building renovation/construction,purchase of equipment,or working capital.The most common economic development activity is rehabilitation of local commercial districts. ...continued on reverse sae • Maximum available: The maximum grant award for a Public Facility or Housing project is $600,000. The maximum grant for a Comprehensive project is$1.4 million. Other funds required: The amount of other funds required is variable and contingent on the project type, other available sources of funds for the project,and the financial capacity of the applicant and local benefiting residents. Terms: The length of project period is normally between two and three years,depending on the size and scope of the project. Applications accepted: Part 1 of the Business and Community Development application can be submitted year-round. Complete applications (including Part 2) must be submitted by October 1 of each year. Grant awards: The annual review and ranking period will commence on October 1. Grant awards will be announced each March. Approving authority: Department of Trade and Economic Development. Disbursement of Grant monies are disbursed as project costs are incurred. funds: Contact: DTED/Business and Community Development Division at(612)296-5005. 11-94-500 CITY OF SHAKOPEE Memorandum TO: Economic Development Authority FROM: Paul Snook,Economic Development Coordinator SUBJECT: Small Cities Development Program DATE: August 14, 1997 Introduction: Economic development staff recently met with Scott County HRA staff regarding the possibilities of collaborating on applying to the Minnesota Department of Trade and Economic Development(DTED) for a Small Cities Development Program Grant(SCDP). This program is one of many very effective tools available for the comprehensive revitalization of downtown Shakopee, and would complement the Blocks 3 &4 development. Discussion: The purpose of the competitive Small Cities Development Program (SCDP) is to assist communities in financing housing rehabilitation, public facility construction, and economic development. As per federal law, the goal of the SCDP is the "development of viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities,principally for persons of low and moderate income(see attachment). Shakopee is an eligible applicant since it is a city with a population under 50,000, and is not located in a federally designated entitlement area. The program is subdivided into three categories, 1.) Housing Grants; 2.) Public Facility Grants; and 3.)Comprehensive Grants. A comprehensive project is one which includes housing, a public facility element, and an economic development activity, which consists of loans from the grant recipient to businesses for building renovation/construction, purchase of equipment, or working capital. The most common economic development activity is rehabilitation of local commercial districts. Through previous experience, staff knows that DTED views comprehensive projects as the most competitive among the many applications they receive. The advantages to Shakopee of applying to (and being granted from) the SCDP are many, including,but not limited to the following: • Downtown Shakopee has a need for the restoration and rehabilitation of its existing traditional commercial buildings. Restored existing buildings will strengthen the setting for the Blocks 3 & 4 development, and likewise, the Blocks 3 & 4 development is the catalyst for the renaissance of the downtown, including the restoration of existing traditional buildings. The complementary nature of these projects will help strengthen the entire downtown area,making it more attractive to shoppers and investors. scdpmmo 1.doc • Improve the housing conditions and opportunities in and possibly around the downtown area, where there is the greatest need for housing repair. Shakopee more than likely has a need for the rehabilitation of upper floor residential space in the traditional downtown buildings. Many of these spaces are underutilized. And, as housing studies have shown, there is need for additional housing such as the type provided by downtown buildings. In addition, single family housing around the downtown area may also qualify. • Infrastructure improvements, such as street, sewer and utility upgrades, and repair to pedestrian level street lights and concrete retaining walls could be realized through this program. Riverfront park development may be a possibility. • The public participation on the Blocks 3 &4 project by the City and Scott County HRA will help leverage a comprehensive SCDP application. DTED ranks highly the SCDP applications that demonstrate substantial local public investment in the SCDP project area. The undergrounding of the electric lines may also help Shakopee's prospects for SCDP funds. There is a two part application process. The final application would be for review in October of 1998, for granting in March of 1999.An application for 1997 could not be completed in time for this October's review period. If the EDA is interested in pursuing an SCDP grant, the next steps would be for staff to prepare and submit a Part I Application, and to work with HRA staff in selecting a consultant to start the Part II Application process. Options: 1.Direct staff to pursue an SCDP grant by preparing and submitting to DTED a Part I Application,and to work with Scott County HRA staff in selecting a consultant to start the Part II Application process. 2. Request additional information from staff regarding the Small Cities Development Program 3.Do not direct staff to pursue an SCDP grant Recommended Action: Direct staff to pursue an SCDP grant as outlined in Option 1 above. Paul Snook Economic Development Coordinator scdpmmo l.doc 5DA .44- 7 GG CITY OF SHAKOPEE Memorandum TO: Economic Development Authority/Mayor and City Council FROM: Paul Snook,Economic Development Coordinator SUBJECT: EDA Resolution No. 97-12,Approving a First Amendment to Contract for Private Development Among the City,EDA, Scott County and ADC Telecommunications,Inc. City Council Resolution No.4789,Approving a First Amendment to Contract for Private Development Among the City,EDA, Scott County and ADC Telecommunications,Inc.,and a Minnesota Investment Fund Loan Agreement. DATE: November 5, 1997 Introduction and Background: The EDA and City Council previously approved a Contract for Private Development among the City,EDA, Scott County and ADC Telecommunications,Inc.,outlining the terms and conditions of development of the ADC expansion project and the EDA's and City's participation in that effort. A First Amendment to this Contract is necessary to bring the job and wage goals in agreement with job and wage goals established by the Minnesota Investment Fund(MIF)loan agreement between the City and ADC and approved by the Minnesota Department of Trade and Economic Development. In addition, the Minnesota Investment Fund requires that the City and ADC enter into a loan agreement. This is for state funds that will be granted to the City, and in turn loaned to ADC from the City for purposes of equipment purchase. This loan is forgiveable based on criteria outlined in the loan agreement. A Resolution by the City Council is necessary to authorize this agreement. Action Required: EDA Offer Resolution 97-12,A Resolution Approving a First Amendment to the Contract for Private Development Among the City,the Shakopee Economic Development Authority, Scott County and ADC Telecommunications,Inc., and move its adoption. City Council Offer Resolution 4789,A Resolution Approving a First Amendment to the Contract for Private Development Among the City,the Shakopee Economic Development Authority, Scott County and ADC Telecommunications,Inc., and a Minnesota Investment Fund, and move its adoption. adcamend.doc SHAKOPEE ECONOMIC DE ENT AUTHORITY RESOLUTION NO. RESOLUTION APPROVING A FIRST AMENDMENT TO CONTRACT SCOP E PRIVATE DEVELOPMENT AMONG THE CITY, THE ECONOMIC DEVELOPMENT AUTHORITY, SCOTT COUNTY AND ADC TELECOMMUNICATIONS, INC. BE IT RESOLVED By the Board of Commissioners("Board")of the Shakopee Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise e � 9 powers� 469.108 EDA f a housing and redevelopment authority, pursuant to Minnesota Statutes, p Act"),and is currently administeringMinnesota River Valley Housing and Redevelopment Project No. 1 ("Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. Among the activities to be assisted by the Authority in the Project is development of a manufacturing facility on certain property(the"Property")in the Project,commonly referred to as the "ADC Project." 1.03. There has been previously approved by the Board a Contract for Private Development among Q the Cityof Shakopee (the "City"), the Authority, Scott County, and ADC Telecommunications,Inc. (the"Contract"), setting forth the terms and conditions of development of the ADC Project and the Authority's participation in that effort. 1.04. There has been presented to the Board a First Amendment to the Contract ob "Amendment")intended to bring the job and wage goaluet o therein into a. ri and loan agreement between the and wage goals established pursuant to a Minnesota of Trade and Economic Development. City and ADC and approved by the Minnesota Department 1.05. The Board has reviewed the Amendment and ��e that interesteXf the City and its n thereof and performance of the Authority's obligations thereunder residents. Section 2. Authori A royal Further Proceedi as. 2.01. The Amendment as presented to the Board is hereby in all respects approved. 2.02. The President and Executive Director are hereby authorized iu execute execution by of the Authority the Amendment and any documents ref its obligations thezeundex the Authority, and to carry out on behalf of the Authority5 r. DJG1331o2 Sj{15S-17 S/S 30'dd 01 E6GEEZ I S°❑I NHAVaiD '8 Afl3NN3N'WO213 8S 'E t G6-S0-AON Approved by the Board of Commissioners of the Shakopee Economic Development Authority this day of 1997. President ATTEST: Executive Director DJG133142 2 S11155-17 S/S 30Vd OLE6LEEZI9'OI N3AV210 '8 Aa3NN3M:WO2I3 8S ' EL G6-S0-AON CITY OF SHAKOPEE RESOLUTION NO. `I RESOLUTION APPROVING A FIRST AMENDMENT TO THE CONTRACT FOR PRIVATE DEVELOPMENT AMONGTS 0 COUNTY ANDTY, THE APEE DC ECONOMIC DEVELOPMENT AUTHORITY, FUND TELECOMMUNICATIONS, INC. AND A MINNESOTA LOAN AGREEMENT vo-it AgNrf BE IT RESOLVED By the City Council ("Council")of the City of Shakopee ("City") as follows: Section 1. Recitals. determined 1.Q1. The Shakopee Economic Development Authority (the"Authority") t has Minnesota a need to exercise the powers of a housing and redevelopment authority, p administering Minnesota Statutes, Sections. 469.090 to 469.108 („EDA Act"), and is currentlyursuant to Minnesota River Valley Housing and Redevelopment Project No. I ("Project") P Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. Among the activities to be assisted by the Authority in the Project is development of a manufacturing facility on certain property(the"Property")in the Project,commonly referred to as the "ADC Project." 1.03. There has been previously approved by the Council a Contract for Private Development among the City of Shakopee (the "City"), the Authority, Scott County, and ADC Telecommunications,Inc_ (the"Contract"), setting forth the terms and conditions of development of the ADC Project and the Council's participation in that effort_ 1.04_ There has been presented to the Council a First et forttherAmendment into agreement with job "Amendment")intended to bring the job and wage goals s . and wage goals established pursuant to a Minnesota I mTrade and d loan ageemec between the City and ADC and approved by the Minnesota Department ent (the "MIF Loan Agreement"). the Authority for the Project, and Council the MIF Loan Agreement, which 1.05. There has further been presented to the d the Council finds shall further the goals of the City generally encourage job creation and economic development and improve the health, safety, and welfare of the City's residents. a 1.06. The City has reviewed the MW Loan Agreement and finds that the execution thereof and performance of the City's obligations thereunder are in the best interest of the City and its residents. DJG133103 SH155-17 9/C 30Vd 0l esLecZ i 9:a I N3AVd0 '8 Aa3NN3}1'W0213 GS 'C I 16-90-AON Section 2. Ci A royal- Further Proceedi ers. 2.01. The Amendment as presented to the City is hereby in all respects approved. 2.02. The Mayor and City Administrator are hereby autthereinhorized execution execute on y behalf of ty, the City the Amendment and any documents referencedobltions thereunder. and to carry out on behalf of the City the City's 2.03. The MW Loan Agreement as presented to the City is hereby in all respects approved, subject to modifications that do not alter the ubstancecution transaction f the aocumand tbyhat suchare provided that approved by the Mayor and City Administrator, officials shall be conclusive evidence of approval. 2.02. The Mayor and City Administrator are hereby authorized to execute on behalf of Agreement and any documents referenced therein requiring execution by F Loan der. the City the Mlthe Citythe City's obligations thereunder. of the City, and to carry out, on behalf Approved by the City Council of the City of Shakopee this day of 1997. Mayor ATTEST: City Administrator DJG133103 2 SH155-17 9/b 30Vd 0[£6LE£Z i 9'a I N3AttHO 'H Aa3NN3}I'NOdd 6S '£L L6-S0-AON Execution copy FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT THIS FIRST AMENDMENT, made and entered into as of the day of , 1997, by and between the SHAKOPEE ECONOMIC DEVELOPMENT AUTHORITY,a public body corporate and politic under the laws of Minnesota(the "Authority"), the CITY OF SHAKOPEE, MINNESOTA, a Minnesota municipal corporation (the "City"), SCOTT COUNTY, MINNESOTA, a political subdivision of the State of Minnesota (the "County") and ADC TELECOMMUNICATIONS, INC., a Minnesota corporation (the "Developer"). WITNESSETH: WHEREAS,the parties did execute and enter into that certain document entitled "Contract for Private Development" dated as of January 31, 1997 (the "Contract") which provides for the development of the tract of land described in the attached Exhibit A, all in accordance with the Contract; and WHEREAS, subsequent to the execution and delivery of the Contract, the parties have determined that it is necessary and desirable to make certain modifications to the Contract in order to carry out the development activities contemplated therein. NOW, THEREFORE, in consideration of the mutual covenants and obligations herein contained, the Contract is hereby amended in the following respects. I. Section 3.6 is hereby amended to read as follows: Section 3.6. Job and Wage Covenants. (a) The Developer shall create on the Development Property at least 75 new full-time equivalent, permanent jobs (the "New Jobs"), at wages of at least $10.00 per hour and paying a weighted hourly wage of at least $19.46. The New Jobs shall be created by no later than May 31, 1999 and must be maintained until at least June 1, 2002. These New Jobs shall be in addition to the 480 jobs that existed at the DJG131161 SH155-17 Development Property as of the date of this Agreement, which must also be maintained on the Development Property until at least June 1, 2002. (b) The Developer shall satisfy the requirements under this Section by submitting to the Authority, the City and the County on or before the dates specified in paragraph (a) of this Section, employment reports in the form attached as Schedule D hereto, showing that, at any time before the respective compliance dates, the Developer has caused creation of the jobs and attainment of the wage levels specified in this Section, and that such jobs and wage levels have been maintained for at least 30 days. (c) Failure by the Developer to comply with the terms of Sections 3.6(a) hereof shall be an Event of Default, subject to the remedies under Article IX hereof. (d) If the Developer fails to comply with any of the terms of Section 3.6(a) hereof(after due notice of default under Article IX hereof), the Note and this Agreement shall be deemed terminated, and the Developer shall repay to the Authority the amount of any payments received by the Developer under the Note. Promptly upon receipt of such repayment by the Developer, the Authority shall remit such amount to the City and the County, respectively, in proportion to the City Contributions and County Contributions that were the source of the Note payments. II. Except as specifically amended herein, the Contract remains unaltered and in full force and effect. III. The Authority may record this First Amendment and any amendments thereto in the public land records in and for Scott County, Minnesota. The Developer shall pay all costs for recording. DJG131161 SH1S5-17 IN WITNESS WHEREOF, the Authority, City, County and Developer have caused this Agreement to be duly executed by their duly authorized representatives as of the date first above written. SHAKOPEE ECONOMIC DEVELOPMENT AUTHORITY 41110, By Its President 0:11,0,11) By Its Exedutive Director STATE OF MINNESOTA ) ) SS. COUNTY OF SCOTT ) • The foregoing instrument was acknowledged before me this day of 1997 by and , the President and Executive Director of the Shakopee Economic Development Authority, on behalf of the Authority. Notary Public DJG131161 SH1S5-17 CITY OF SHAKOPEE, MINNESOTA B Y _ t: ayor By M U141 Its City Administrator By Its City Clerk STATE OF MINNESOTA ) ) SS. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this day of 1997 by , , and , the Mayor, City Administrator, and City Clerk of the City of Shakopee, Minnesota, on behalf of the City. Notary Public DJG131161 4 SH155-17 SCOTT COUNTY, MINNESOTA By Its Board Chair By Its County Administrator Approved as to form: By: , County Attorney STATE OF MINNESOTA ) ) SS. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this day of • 1997, by and , the County Board Chair and County Administrator of Scott County, Minnesota, on behalf of the County. Notary Public DJG131161 SH155-17 5 ISM ICAT *NS, 1,40/ . By ,_4 • Its ruitt 0.P t C ) STATE OF MINNESOTA ) ) SS. COUNTY OF ,-iag ) The foregoing instrument was acknowledged before me this R day of 997 by f� � T ' , the , v.p of ADC Telecommunications, Inc., a Minnesota corporati on behalf of the corporation. ¢ & ' 2y KARIIN M.BERMAN() NoY u is , NOTARY Pusuc-MINNESOTA S HENNEPIN COUNTY My Commieeien Wires an.31,20D) This instrument was drafted by: Kennedy & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 DJG131161 L SH1S5-17 V EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY That part of Lot 1,Block 2,VALLEY PARK ELEVENTH ADDITION,according to the recorded plat thereof, Scott County, Minnesota, which lies southerly of the following described line: Commencing at the northeast corner of said Lot 1, Block 2; thence South 0 degrees, 57 minutes, 28 seconds East on an assumed bearing along the east line of said Lot 1, a distance of 447.00 feet to the point of beginning of the line to be described; then South 89 degrees, 57 minutes, 45 seconds West, a distance of 797.52 feet to the West line of said Lot 1 and said line there terminating. DJG131161 SH155-17 A-1 Execution Draft AGREEMENT FOR LOAN OF MINNESOTA INVESTMENT FUND THIS AGREEMENT is made and entered into as the day of , 1997, by and between the City of Shakopee, ("the City") and ADC Telecommunications, Inc. ("the Developer"); WITNESSETH: WHEREAS, the City has applied to the Minnesota Department of Trade and Economic Development for a Minnesota Investment Fund Grant (the "MIF Grant") pursuant to an application (the "Grant Application") and preliminary approval for said grant; and WHEREAS,Grant Agreement Number CDAP-96-0355-H-FY97("the Grant Agreement") between the Minnesota Department of Trade and Economic Development and the City has been executed and requires that the Developer provide sufficient financing to complete financing and agree to loan terms with the City regarding the MIF Grant; and WHEREAS, all parties to this agreement agree to incorporate into this agreement by reference said Grant Application and Grant Agreement as if fully set forth herein word for word; NOW THEREFORE, it is agreed by and between the parties hereto as follows: DJG132386 SH155-17 ARTICLE 1 Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "City" means the City of Shakopee. "Developer" means ADC Telecommunications, Inc., a Minnesota corporation. "Development Contract" means the Contract for Private Development by and among the City, the Developer, the Shakopee Economic Development Authority, and Scott County, Minnesota dated January 31, 1997, as amended. "Development Property" means the real property described as: That part of Lot 1, Block 2, VALLEY PARK ELEVENTH ADDITION, according to the recorded plat thereof, Scott County, Minnesota, which lies southerly of the following described line: Commencing at the northeast corner of said Lot 1, Block 2; thence South 0 degrees, 57 minutes, 28 seconds East on an assumed bearing along the east line of said Lot 1, a distance of 447.00 feet to the point of beginning of the line to be described; then South 89 degrees, 57 minutes, 45 seconds West, a distance of 797.52 feet to the West line of said Lot 1 and said line there terminating. "Equipment" means the machinery and equipment purchased by the Developer with the Loan and described at Exhibit A hereto. "Forgiveness Date" means June 1, 2002. "Grant Agreement" means Minnesota Department of Trade and Economic Development Grant Agreement Number CDAP-96-0355-FY97. "Grantor Agency" means Minnesota Department of Trade and Economic Development. "Leveraged Funds" means the funds provided by or for the account of the Developer pursuant to Section 2.1. "Loan" means the funds loaned by the City to the Developer pursuant to this Agreement. "MIF" means Minnesota Investment Fund. "Project" means the construction of the facility in Shakopee, Minnesota owned by the Developer, with the assistance of MIF funds for the purchase of new machinery and equipment. DJG132386 SH155-17 2 "State" means the State of Minnesota. ARTICLE 2 Financing for Projects Section 2.1. Project Financing. The Developer has obtained pursuant to the terms of the Development Contract a commitment for at least $1,250,000 in local effort assistance necessary to complete the Project, in a form and under conditions satisfactory to both parties. Section 2.2. Developer's Equity and Other Financing. The Developer shall commit not less than $21,500,000 of equity to be used for the completion of the Project. Section 2.3. MIF Loan/Grant. The MIF Grant will be used by the City to make a loan of $250,000 to the Developer for the Equipment. ARTICLE 3 MIF Loan Terms and Conditions Section 3.1. Basic Loan Terms. The principal amount of the Loan shall not exceed $250,000. The Loan shall not bear interest. The Loan terms may not be modified without prior written approval from the Grantor Agency. The full Loan amount shall be used for the purchase of the Equipment. The term of the Loan shall be as set forth in Section 5.4 of this Agreement. Section 3.2. Prepayment. Prepayment of the Loan may occur at any time during the Loan without penalty. Section 3.3. Assignment. If, prior to the Forgiveness Date the Developer sells, conveys, transfers, further mortgages or encumbers or disposes of the Development Property, or any part thereof, or any interest therein, except to a wholly-owned subsidiary of Developer or upon the prior written approval of the Grantor Agency, or agrees so to do,the Developer shall immediately repay all amounts then outstanding on the Loan. This shall be in addition to any other remedies at law or equity available to the City. Section 3.4. Termination. This Agreement shall automatically terminate without any notice to Developer (1) if the Loan proceeds have not been disbursed to the Developer prior to May 31, 1999; or (2) if a petition is filed by or against the Developer under the U.S. Bankruptcy Code, or if voluntary, such a petition is not dismissed within sixty (60) business days following the date of filing of such petition. Section 3.5. Promissory Note. The Developer shall execute a promissory note in substantially the form set forth at Exhibit C. DJG132386 814155-17 ARTICLE 4 Default and Collateral Section 4.1. Default. The Developer shall be in default under this Agreement upon the happening of any of the following events: (a) nonpayment, when due, of any amount payable on the Loan or failure to observe or perform any term of this Agreement; provided such nonpayment is not remedied within ten (10) business days after written notice thereof from the City; (b) if Developer is in breach of any material respect of any obligation or agreement of the Developer under this agreement, provided Developer remains in breach in any material respect for thirty (30) business days after written notice thereof to the Developer by the City; provided, however, that if such breach shall reasonably be incapable of being cured within such thirty (30) business days after notice, and if Developer commences and diligently prosecutes the appropriate steps to cure such breach, no default shall exist so long as Developer is'proceeding to cure such breach; (c) if any material covenant, warranty or representation of Developer shall prove to be untrue in any material respect, provided such covenant, warranty or representation of Developer remains untrue in any material respect for thirty(30) business days after written notice thereof to the Developer by the City; provided, however, that if such untruth shall reasonably be incapable of being corrected within such thirty (30) business days after notice, and if Developer commences and diligently prosecutes the appropriate steps to correct such untruth,no default shall exist so long as Developer is so proceeding to correct such untruth; (d) if the Developer becomes insolvent or generally unable to pay debts as they mature or makes an assignment for the benefit of creditors, provided such insolvency or general inability to pay is not remedied within sixty (60) business days after written notice thereof from the City; (e) entry of a final judgment against Developer where such judgment the City reasonably deems will have a material, adverse impact on Developer's ability to comply with its obligations under this Agreement. (f) transfer by the Developer, of any part of the Equipment to any entity other than a wholly-owned subsidiary of Developer, provided such transfer is not approved in writing by the City, which approval will not be unreasonably withheld. (g) merger or consolidation where such merger or consolidation is not approved in writing by the City, which approval will not be unreasonably withheld; or (h) loss, theft, substantial damage, destruction, or encumbrance of any of the Equipment,provided that such is not remedied within sixty(60) business days after written notice thereof(including,without limitation, by a pledge of insurance proceeds or by substitute collateral satisfactory to the City); DJG132386 4 SH155-17 Section 4.2. Remedies Upon Default. (a) In the event of a default and the failure to cure it in the time allotted therefor (or to commence and diligently proceed to cure such default if reasonably incapable of being cured within the time allotted therefor), the City shall have the right as its option and without demand or notice, to declare all or any part of the Loan immediately due and payable, and in addition to the rights and remedies granted hereby, the City shall have all of the rights and remedies under the Uniform Commercial Code or any applicable law. (b) Developer agrees in the event of a default and the failure to cure it in the time allotted therefor, to make the Equipment available to the City. In the event of any lawsuit under this Agreement, reasonable attorney's fees and costs will be awarded to the prevailing party. If any notice of sale, disposition or other intended action by the City is required by law to be given to Developer, such notice shall be deemed reasonably and properly given if mailed to Developer at the Development Property or at such other address of Developer as may be shown on the City's records, at least fifteen (15) days before such sale, disposition or other intended action. Waiver of and default hereunder by the City shall not be a waiver of any other default, or of the same default, on a later occasion. No delays or failure by the City to exercise any right or remedy shall be a waiver of such right or remedy and no single or partial exercise by the City of any right or remedy shall preclude other or further exercise thereof of the exercise of any other right or remedy at any other time. Section 4.3. Collateral. The Developer shall grant to the City a first security interest in the Equipment up to an amount of$250,000, pursuant to a security agreement in substantially the form set forth at Exhibit B. ARTICLE 5 Loan Disbursement Provisions Section 5.1. Payment Requisition Documentation and Format. Loan disbursements shall be for purchase of the Equipment and shall not exceed $250,000. The Loan shall be disbursed to the Developer only after the City has received from the Developer an invoice or invoices for the costs of purchasing the Equipment. Upon receipt of such invoice or invoices, the City will disburse the Loan. If the Developer has complied with all terms and conditions of this Agreement prerequisite to a disbursement of funds pursuant to this Section 5.1 and the City shall fail to disburse such funds as required under this Agreement, the Developer may seek any or all equitable or legal remedy to obtain such disbursement. Section 5.2. Provision for Evidentiary Materials. No disbursements of Loan funds shall be made until all evidentiary materials required by the Grantor Agency have been submitted to and approved by the Grantor Agency. Section 5.3. Project Time Frame. The time frame outlined in the Grant Application pertaining to the Project shall be met by the Developer. DJG132386 5 SH155-17 Section 5.4. Loan Terms. The term of the Loan shall be five (5) years, commencing as of June 1, 1997. The interest rate shall be -0-% per annum for the 60 months of the Loan period. Section 5.5. Loan Repayments Schedule. The Loan shall be forgiven if the Developer complies with the terms of Section 7.1 of this Agreement and all other terms and conditions of this Agreement. Section 5.6. Leveraged Funds. The Leveraged Funds described in the Grant Application must be used for the same purposes and under the same terms,rates, and conditions as specified therein unless prior written consent is received from the Grantor Agency. ARTICLE 6 Provision of Evidentiary Material Requirement Section 6.1. Provision of Evidentiary Materials. The Developer shall agree to provide to the City all evidentiary materials according to the format and timetable cited in the Grant Agreement. The City will forward said materials to the Grantor Agency and assist in expediting reviews leading to a release of the Loan. Section 6.2. Documentation of Use of Funds. The Developer must provide the City with necessary documentation that the Loan proceeds and leveraged funds have been used for the items and purposes stated in the Grant Application, prior to submitting the final progress report and requesting grant closeout from the Grantor Agency. ARTICLE 7 Provision of New Permanent Jobs Section 7.1. Wage and Job Covenants. (a) On the Forgiveness Date and pursuant to Minnesota Statutes, Section 1161991, the Developer shall be maintaining at the Development Property at least 75 new full-time equivalent, permanent jobs (the "New Jobs"), at wages of at least $10.00 per hour and paying a weighted hourly wage of at least $19.46. The new jobs shall be created by no later than May 31, 1999. These New Jobs shall be in addition to the 480 jobs that existed at the Development Property as of the date of this Agreement, which must also be maintained on the Development Property at all times during the term of this Agreement. (b) If the Developer fails to comply with any of the terms of Section 7.1(a), the Developer shall immediately repay to the City upon written demand from the City the full amount of the Loan. The Developer specifically acknowledges that a failure to comply in every regard with the provisions of this Section 7.1 shall constitute a default hereunder, and that no opportunity to cure shall be allowed. DJG132386 6 SH15S-17 Section 7.2. Employment Documentation. The Developer shall semi-annually complete and provide to the City notification of employment of hiring each new employee at the Project. This notification requirement shall terminate on May 31, 1999, provided the employment objective set forth in Section 7.1 has been met. Section 7.3. Job Creation Documentation. Until the Forgiveness Date, the Developer shall submit to the City a written report by April 1 of each year describing employment and wages in sufficient detail to enable the City to determine compliance with this Article 7. This information shall be provided by the Developer and must include: (a) jobs created; (b) job title per job, (c) date employee(s) hired; and (d) wages and benefits paid. Section 7.4. First Source Employment Referral Agreement. Pursuant to Minnesota Statutes, Section 116J.781,the Developer shall list any vacant or new positions at the Project with the jobs services of the Commissioner of Job Services or a local service unit operated by a county or counties operating under a joint powers agreement, one or more cities of the first class operating under a joint powers agreement, or a city of the first class. ARTICLE 8 Provision of Monitoring Information Related To Project Progress Section 8.1. Provision of Progress Information. The Developer shall provide to the City information for incorporation into progress reports, as required by the Grantor Agency and as needed by the City, to monitor project implementation for compliance with Grantor Agency and local guidelines. ARTICLE 9 Nondiscrimination Section 9.1. Nondiscrimination. The provisions of Minnesota Statutes, Section 181.59, which relate to civil rights and discrimination, shall be considered a part of this Agreement as though wholly set forth herein. ARTICLE 10 Developer's Acknowledgments Representations and Warranties Section 10.1. Acknowledgments. The Developer acknowledges that the City, in order to obtain funds for part of the City's activities in connection with the Project, has applied for the MIF DJG132386 7 SH155-17 Grant to the Commissioner of the Minnesota Department of Trade and Economic Development (the "Commissioner") under the Minnesota Investment Fund Program, Business and Community Development Division, and that the City has entered into the Grant Agreement with the Commissioner setting forth the terms, conditions, and requirements as to the Grant. The Developer further acknowledges that the Developer has made certain representations and statements as to those activities of the Project to be carried out and completed by the Developer which were contained in and made part of the Grant Application and that the Developer is designated and identified under the Grant Agreement. A copy of the Grant Agreement shall be on file in the office of the City. In the event any provision of this Agreement relating to the Developer's obligations hereunder shall be inconsistent with the provisions of the Grant Agreement relating to the Developer's activities thereunder, the provisions of the Grant Agreement shall prevail. The Developer acknowledges that nothing contained in the Grant Agreement or this Agreement, nor any act of the Commissioner or the City shall be deemed or construed to create any relationship or third-party beneficiary,principal and agent, limited or general partnership, or joint venture, or of any association or relationship involving the Commissioner. Section 10.2. Representations and Warranties. Developer warrants and represents, in connection with the Grant and for the benefit of the Commissioner and the City, that: • (a) Representations, statements, and other matters provided by the Developer relating to those activities of the Project to be completed by the Developer, which were contained in the Grant Application, were true and complete in all material respects as of the date of submission to the City and that such representations, statements, and other matters are true as of a the date of this Agreement and that there are no adverse material changes in the fmancial condition of the business. (b) To the best of the Developer's knowledge,no member, officer, or employee of the City, or its designees or agents, and no consultant, member of the governing body of the City, and no other public official of the City, who exercises or has exercised any functions or responsibilities with respect to the Project during his or her tenure has or shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the Project or in any activity, or benefit therefrom, which is part of this Project. (c) The Developer acknowledges that the Commissioner, in selecting the City as recipient of the Grant, relied in material part upon the assured completion of the Project to be carried out by the Developer, and the Developer assures the City that said Project will be carried out by the Developer. (d) The Developer warrants that to the best of its knowledge, it has obtained all federal, state, and local governmental approvals, reviews, and permits required by law to be obtained in connection with the Project. DJG132386 g SH155-17 (e) The Developer warrants that it shall keep and maintain books, records, and other documents relating directly to the leveraged funds and that any duly authorized representative of the Commissioner shall, at all reasonable times, have access to and the right to inspect, copy, audit, and examine all such books, records, and other documents of the Developer until the completion of all closeout procedures respecting the MIF Grant and the final settlement and conclusion of all issues arising out of the grant. (fl The Developer warrants that no transfer of Loan proceeds by the City to the Developer shall be or be deemed an assignment of the Loan proceeds and the Developer shall neither succeed to any rights, benefits, or advantages of the City under the Grant Agreement, nor attain any right, privileges, authorities, or interest in or under the Grant Agreement. (g) The Developer warrants that it has fully complied with all applicable state and federal laws pertaining to its business and will continue said compliance throughout the terms of this Agreement. If at any time notice of noncompliance is received by the Developer, the Developer agrees to take any necessary action to comply with the state or federal law in question. ARTICLE 11 Other Special Conditions Section 11.1 Worker's Compensation Insurance. Developer has obtained a written order from the commissioner of commerce exempting Developer from insuring liability for workers compensation and permitting self-insurance of the liability, which order is attached hereto as Exhibit D, as permitted by Minnesota Statutes, Section 176.181, subd. 2. Section 11.2. Business with the State of Minnesota/State Tax Laws. Notice to Developer. You are required by Minnesota Statutes, Section 2790.66,to provide your Minnesota tax identification number if you do business with the State of Minnesota. This information may be used in the enforcement of Federal and State tax laws. Supplying these numbers could result in an action to require you to file State tax returns and pay delinquent State tax liabilities. This contract will not be approved unless these numbers are provided. These numbers will be available to Federal and State tax authorities and State personnel involved in the payment of State obligations. Minnesota Tax ID: 8459278 Federal Employer ID: 41-0743912 Section 11.3. Grant Closeout. The Developer shall, prior to grant closeout from the Grantor Agency, provide the City with all documentation necessary to demonstrate that the Loan has been used for the items and purposes set forth in the Grant Application, such documentation to be in substantially the form set forth at Exhibit D, subject to modification by the Grantor Agency. Section 11.4. Review of Documents. The City's legal counsel and the Grantor Agency must review and approve this Agreement, the promissory note attached hereto as Exhibit C, and the security agreement at Exhibit B, before disbursement to the Developer of any part of the Loan. DJG132386 9 SH155-17 Section 11.5. Effect on Other Agreements. Nothing in this Agreement shall be construed to modify any term of the Development Contract or any other agreement to which the City and the Developer are parties. Section 11.6. Release and Indemnification Covenants. The Developer agrees to protect and defend the City and the governing body members, officers, agents, servants and employees thereof, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from the acquisition, construction, installation, ownership, maintenance, and operation of theEquipment, except for any breach of the representations and warranties of the City or the negligence or other wrongful act or omission of the City, or the governing body members, officers, agents, servants or employees thereof. Section 11.7. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Developer and the City and approved by the Grantor Agency. Section 11.8. Notices and Demands. Any notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered only if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally: (a) as to the City: • City of Shakopee City Hall 129 Holmes Street Shakopee, Minnesota 55379-1376 Attention: City Administrator; (b) as to the Developer: ADC Telecommunications, Inc. P.O. Box 1101 Minneapolis, MN 55440 Attention: General Counsel; or at such other address with respect to any party as that party may, from time to time, designate in writing and forward to the others as provided in this Section 11.8. Section 11.09. Conflict of Interests: Representatives Not Individually Liable. No officer or employee of the City may acquire any financial interest, direct or indirect, in this Agreement, the Equipment or in any contract related to the Equipment. No officer or employee of the City shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Developer or on any obligation or term of this Agreement. DJG132386 SH155-17 10 Section 11.10. Binding Effect.The covenants and agreements in this Agreement shall bind and be to the benefit of the heirs, executors, administrators, successors, and assigns of the parties to this Agreement. This Agreement shall be construed in accordance with the laws of Minnesota. IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Developer has caused this Agreement to be duly executed in its name and behalf as of the date first above written. Subscribed and sworn to before me CITY OF SHAKOPEE this day of , 1997 By _ Its Notary Public By lAk49—V4ALO.A._ Its BY Its Subscribed and sworn to before me ADC TELECOMMUNIC IO ., INC. this „DQ day of ( r--- , 1997 By 4■C�-' a,A& IIP k0Ait rt. )7)1- .4 Its �1 4 � A Notary Puic l � ri KARIIN M.BERKLAND NOTARY Puauc-MINNESOTA HENNEPIN COUNTY MY Comniss;u,l Evras Jan.31,2000 DJG132386 1 SH155-17 li EXHIBIT A EQUIPMENT Conair Cooling Tower/Central Chilled Water Equipment - Serial #'s 97H004, 97H007 CFM Guiney Compressors Model 500 - WNW 3-2 Serial #'s 91438H, 91440H, 91441H ZEKS 200 H5OMN Dryer AO - 1000G Domnick Hunter Filter AA - 1000G Domnick Hunter Filter Conservair Compressed System Components: Immediate Controller Serial # E3-3C2M13/2250 3000 Gallon Air - Receiver Tank DJG132386 SH155-17 A-1 EXHIBIT B SECURITY AGREEMENT This security agreement (the "Security Agreement") is made and given as of this day of , 1997,by ADC TELECOMMUNICATIONS,INC.,a Minnesota corporation with its principal place of business at 4900 West 78th Street, Minneapolis, MN 55435 (the "Borrower") in favor of the CITY OF SHAKOPEE, a municipal corporation under the laws of Minnesota, with its offices at 129 Holmes Street, Shakopee, Minnesota 55379-1376 and its endorsees, successors and assigns (the "Lender"). RECITALS A. Lender and Borrower have entered into a certain Loan Agreement,dated as of the date hereof (the "Loan Agreement"), pursuant to which Lender will loan to Borrower up to $250,000 (the "Loan") to finance the acquisition of the equipment (the "Equipment") described on the Exhibit B attached hereto, such Equipment to be located at the property described on the Exhibit A attached hereto (the "Property"). Borrower's payment obligations under the Loan Agreement will be evidenced by a promissory note (the "Note") dated as of the date hereof. . B. As security for the repayment of the Loan, Lender has required that Borrower execute and deliver to Lender this Security Agreement granting a security interest to Lender in the Equipment. C. The Note,this Security Agreement, and any other instruments or documents given as security for the Loan are herein referred to as the "Loan Documents". NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by Borrower, it is agreed as follows: 1. Grant of Security Interest. As security for the payment and performance of the Note and all other liabilities, obligations and indebtedness of Borrower to Lender due or to become due, direct or indirect, absolute or contingent,joint or several, howsoever created, arising or evidenced, now or hereafter at any time created, arising or evidenced under or pursuant to the Note or this Agreement or any other document or instrument evidencing or securing the Note, Borrower does hereby transfer, assign and grant to Lender a security interest in all of Borrower's right, title, and interest in and to the following (hereinafter collectively referred to as the "Collateral"), whether now owned or hereafter acquired or arising: (a) The Equipment; and (b) Any and all proceeds of the foregoing. 2. Borrower's Representations, Warranties and Covenants. Borrower represents, warrants, covenants and agrees: DJG132386 SH155-17 B-1 (a) Organization. Borrower is a corporation, validly existing and in good standing under the laws of the State of Minnesota, and Borrower has full power and authority to execute, deliver, and perform the Loan Documents, and to own its property and conduct its business as presently conducted and as proposed to be conducted. (b) Authorization. The execution, delivery and performance of this Security Agreement has been duly authorized by all necessary action and will not: (i) require any consent or approval of any entity which has not been obtained; or (ii) violate any provision of any indenture, contract, agreement or instrument to which Borrower is a party or by which it is bound. (c) Performance by Borrower. Unless Borrower obtains Lender's written consent to the contrary, Borrower shall not: (i) terminate its interest in any of the Collateral; or (ii) sell, transfer, or assign, or offer to sell, transfer or assign all or any part of the Collateral or permit all or any part of the Collateral to be sold, transferred or assigned; or (iii) remove or consent to the removal of any of the Equipment from the Property. (d) Title to Collateral. Borrower shall keep good marketable title to all of the Collateral, and none of the Collateral is subject to any lien or security interest except for the security interest created by this Security Agreement and other security interests consented to in writing by Lender. Borrower has not granted, and will not grant or permit to exist, any lien or security interests in all or a portion of the Collateral other than the liens in favor of Lender and other liens consented to in writing by Lender. Borrower shall defend the Collateral against all claims and demands of all and any other persons at any time claiming any interest therein adverse to Lender. (e) Actions and Proceedings. There are no actions at law, suits in equity or by other proceedings before any governmental agency,commission, bureau,tribunal,or other arbitration proceedings against or affecting Borrower that if adversely determined would adversely affect Borrower's interest in the Collateral or would adversely affect the rights of Borrower to pledge and assign all or a part of the Collateral or the rights and security afforded Lender hereunder. (f) Insurance. Borrower agrees it will keep the Equipment insured at all times against loss by fire and/or other hazards concerning which, in the judgment of Lender, insurance protection is reasonably necessary and in amounts sufficient to protect against loss or damage of the Equipment. Such policy or policies will contain a loss payable clause in favor of Lender or its successors or assigns, in form satisfactory to Lender, DJG132386 SH15S-17 B-2 provided, however, that Borrower may, at its reasonable discretion, self-insure the Equipment. (g) No Fixture. If any of the Collateral is or becomes a fixture, Borrower agrees to furnish Lender, at Lender's request, with a statement or statements signed by all persons who have or claim an interest in the real estate concerned, which statements shall provide that the signer consents to the security interest created hereby and disclaims any interest in the Collateral as fixtures. (h) Understandings Regarding Collateral. Borrower acknowledges that the Collateral is of the design, capacity, and manufacture specified for and by Borrower, and that Borrower is satisfied that the same is suitable for its intended purposes. Borrower further acknowledges and agrees that Lender has not made, and does not make, any representation, warranty, or covenant with respect to merchantability, fitness for any purpose, durability, patent, copyright or trademark infringement, suitability, or capability of any item of Collateral in any respect or in connection with any other purpose or use of Borrower, or any other representation, warranty, or covenant of any kind or character expressed or implied with respect thereto. Borrower accordingly agrees not to assert any claim whatsoever against Lender based thereon. Borrower further agrees, regardless of cause, not to assert any claim whatsoever against Lender for loss of anticipatory profits or consequential damages. (i) Use of Collateral. The Collateral will be used for its intended business purpose and will at all times be located at the Property. (j) Condition of Collateral. Borrower will keep the Collateral in good condition and repair, reasonable wear and tear excepted, and will permit Lender to enter upon the Minimum Improvements at reasonable times for the purpose of examining the Collateral. (k) Costs of Collection. In the event of any action or proceeding to collect or realize upon the Collateral or to enforce any of Lender's rights hereunder, Borrower shall pay: (i) all of Lender's attorneys' fees and legal expenses, with interest thereon, incurred by Lender; (ii) all taxes, levies, insurance expenses, and costs of repairs to, or maintenance of, the Collateral; and (iii) all costs of Lender incurred in taking possession of, disposing of or preserving the Collateral after any Event of Default (defined below). 3. Event of Default. Upon the event of a default under the Loan Agreement, Lender may exercise any remedy available to it under the terms of the Loan Agreement. DJG132386 SH1S5-17 B-3 4. Further Assurances. Borrower shall execute and deliver to Lender, promptly and at Borrower's expense, Uniform Commercial Code ("Code") financing statements and evidence of tax filings and payments, including without limitation a UCC-1 Financing Statement in substantially the form set forth at Exhibit C. Borrower agrees that Lender is authorized, at its option, to file a carbon, photographic or other reproduction of this Agreement as a financing statement and shall be sufficient as a financing statement under the Code and to file financing statements or amendments thereto without the signature of Borrower and, if a signature is required by law, then Borrower appoints Lender as Borrower's attorney-in-fact to execute any such financing statements. 5. Cumulative Remedies. All of Lender's rights and remedies herein are cumulative and in addition to any rights or remedies available at law or in equity including the Code, and may be exercised concurrently or separately. Borrower shall pay all costs, expenses, losses, damages and legal costs (including attorneys' fees) incurred by Lender as a result of enforcing any terms or conditions of this Agreement. 6. No Liability Imposed on Lender. Lender shall not be obligated to perform or discharge, nor does it hereby undertake to perform or discharge any obligation, duty, or liability, nor shall this Agreement operate to place responsibility for the control, care, or management of the Equipment upon Lender. 7. Indemnification. Borrower shall and does hereby agree to indemnify against and to hold Lender harmless of and from any and all liability, loss, or damage which it may or might incur under or by reason of this Agreement, and of and from any and all claims and demands whatsoever which may be asserted against it by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants or agreements contained herein. Should Lender incur any such liability or be required to defend against any such claims or demands, or should a judgment be entered against Lender, the amount thereof, including costs, expenses, and reasonable attorneys' fees, shall bear interest thereon at the rate then in effect on the Note, shall be secured hereby, shall be added to the Loan, and Borrower shall reimburse Lender for the same immediately upon demand, and upon the failure of Borrower so to do, Lender may declare the Loan immediately due and payable. 8. Expenses of Lender. All expenses in protecting, storing, warehousing, insuring, handling and shipping of the Collateral, all costs of keeping the Collateral free of liens, encumbrances and security interests (other than the security interest created by this Agreement) and the removing of the same and all excise, property, sales and use taxes imposed by state, federal, or local authority on any of the Collateral or with respect to the sale thereof, shall be borne and paid for by Borrower and if Borrower fails to promptly pay any amounts thereof when due, Lender may, at its option, but shall not be required to, pay the same, and upon such payment the same shall constitute obligations and shall bear interest at the rate specified in the Note and shall be secured by the security interests granted hereunder. 9. Continuing Rights. The rights and powers of Lender hereunder shall continue and remain in full force effect until the Loan is paid in full. DJG132386 SH155-17 B-4 10. Books and Records. Borrower will permit Lender and its representatives to examine Borrower's books and records (including data processing records and systems) with respect to the Collateral and make copies thereof at any time and from time to time, and Borrower will furnish such information reports to Lender and its representatives regarding the Collateral as Lender and its representatives may from time to time request. Lender shall have the authority, at any time, to require Borrower to place upon Borrower's books and records relating to the Collateral and other rights to payment covered by the security interest created in this Agreement a notation stating that any such Collateral and other rights of payment are subject to a security interest in favor of Lender. 11. Successors and Assigns. This Agreement and each and every covenant,agreement, and provision hereof shall be binding upon Borrower and its successors and assigns and shall inure to the benefit of Lender and its successors and assigns. 12. Governing Law. This Agreement is executed pursuant to and shall be governed by the laws of the State of Minnesota. 13. Severability. It is the intent of this Agreement to confer to Lender the rights and benefits hereunder to the full extent allowable by law including all rights available under the Code. The unenforceability or invalidity of any provisions hereof shall not render any other provision or provisions herein contained unenforceable or invalid. Any provisions found to be unenforceable shall be severable from this Agreement. 14. Miscellaneous. (a) Waiver. The performance or observance of any promise or condition set forth in this Agreement may be waived only in writing. No delay in the exercise of any power, right or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, right or remedy. (b) Assignment. This Agreement shall be binding upon Borrower and its successors and assigns and shall inure to the benefit of Lender and its successors and assigns. All rights and powers specifically conferred upon Lender may be transferred or delegated by Lender to any of its successors and assigns. (c) Other Matters. If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications which can be given effect, and this Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. All representations and warranties contained in this Agreement or in any other agreement between Borrower and Lender shall survive the execution, delivery and performance of this Agreement and the creation and payment of any indebtedness to Lender. Borrower waives notice of the acceptance of this Agreement by Lender. DJG132386 SH15S-17 B-5 (d) Notice. All notices required hereunder shall be given by depositing in the U.S. mail, postage prepaid, certified mail, return receipt requested, to the following addresses (or such other addresses as either party may notify the other): To Borrower: ADC TELECOMMUNICATIONS, INC. P.O. Box 1011 Minneapolis, MN 55440 Attention: General Counsel To Lender: CITY OF SHAKOPEE City Hall 129 Holmes Street Shakopee, Minnesota 55379-1376 Attention: City Administrator DJG132386 U SH155-17 B-6 IN W , its name and behalfITNESS and the DeveloperWHEREOFthe hasCity causehasd this Agreementcausedthis toAgreement be dulyto executedbeduly in its namexecuted ine and behalf as of the date first above written. Subscribed and sworn to before me CITY OF SHAKOPEE this day of 1997 By Its Notary Public By Its Subscribed and sworn to before me ADC TELECOMMUNICATIONS, INC. this day of 1997 By Its Notary Public DJG132386 SH155-17 B_7 EXHIBIT A TO SECURITY AGREEMENT PROPERTY That part of Lot 1, Block 2, VALLEY PARK ELEVENTH ADDITION, according to the recorded plat thereof, Scott County, Minnesota, which lies southerly of the following described line: Commencing at the northeast corner of said Lot 1, Block 2; thence South 0 degrees, 57 minutes, 28 seconds East on an assumed bearing along the east line of said Lot 1, a distance of 447.00 feet to the point of beginning of the line to be described; then South 89 degrees, 57 minutes, 45 seconds West, a distance of 797.52 feet to the West line of said Lot 1 and said line there terminating. DJG132386 SH1S5-17 B-A-1 EXHIBIT B TO SECURITY AGREEMENT DESCRIPTION OF EQUIPMENT EQUIPMENT Conair Cooling Tower/Central Chilled Water Equipment - Serial #'s 97H004, 97H007 CFM Guiney Compressors Model 500 - WNW 3-2 Serial #'s 91438H, 91440H, 91441H ZEKS 200 H5OMN Dryer AO - 1000G Domnick Hunter Filter AA - 1000G Domnick Hunter Filter Conservair Compressed System Components: Immediate Controller Serial # E3-3C2M13/2250 3000.Gallon Air - Receiver Tank DJG132386 D D SH155-17 - -1 EXHIBIT C TO SECURITY AGREEMENT FOR USE BY FILING OFFICER ONLY STATE OF MINNESOTA UCC-1 FINANCING STATEMENT This statement is presented for filing pursuant to Minnesota Statutes 336.9-402 DEBTOR ADC Telecommunications, Inc. P.O. Box 1011 Minneapolis, MN 55440 Attention: General Counsel TIN: 41-0743912 SECURED PARTY City of Shakopee 129 Holmes Street Shakopee, Minnesota 55379-1376 Attention: City Administrator COLLATERAL See attached Exhibit A. RETURN ACKNOWLEDGMENT COPY TO: ADC TELECOMMUNICATIONS, INC. Kennedy & Graven, Chartered 470 Pillsbury Center By Minneapolis, Minnesota 55402 Its By Its By Its DJG132386 SH155-17 B-C-1 EXHIBIT A to UCC-1 Financing Statement naming ADC Telecommunications, Inc., as Debtor and City of Shakopee, as Secured Party Pursuant to the provisions of the Security Agreement dated as of , 1997 (the "Agreement") between the Debtor and Secured Party, the Debtor does hereby assign to and grant to the Secured Party all of its right, title and interest in and to: Conair Cooling Tower/Central Chilled Water Equipment - Serial #'s 97H004, 97H007 CFM Guiney Compressors Model 500 - WNW 3-2 Serial #'s 91438H, 91440H, 91441H ZEKS 200 H50MN Dryer AO - 1000G Domnick Hunter Filter AA - 1000G Domnick Hunter Filter Conservair Compressed System Components: Immediate Controller Serial # E3-3C2M13/2250 3000 Gallon Air - Receiver Tank (the "Equipment"), contract rights (including contract rights pertaining to performance bonds, fidelity bonds, or insurance contracts) now or hereafter belonging or in any way pertaining to the Equipment, and all proceeds and products of the foregoing. DJG132386 S11155-17 B-C-A-1 EXHIBIT C PROMISSORY NOTE $250,000 , 1997 ADC Telecommunications, Inc., a Minnesota corporation (the "Maker" or "Borrower"), for value received; hereby promises to pay to the City of Shakopee (the "City") or its assigns(the City and any assigns are hereinafter referred to as the "Holder"), at its designated principal office or such other place as the Holder may designate in writing, the principal sum of Two Hundred Fifty Thousand and No/100ths Dollars ($250,000) or so much thereof as maybe advanced under this Note, with interest as hereinafter provided, in any coin or currency which at the time or times of payment is legal tender for the payment of private debts in the United States of America. The principal of this Note is payable in installments due as follows: 1. The Loan shall not accrue interest. 2. The principal shall be paid on June 1, 2002; provided, however, that the entire balance of the principal shall be forgiven if the Borrower complies with the conditions for forgiveness set forth in Section 5.5 of the Loan Agreement, as hereinafter defined. 3. The Maker shall have the right to prepay the principal of this Note, in whole or in part, without prepayment penalty. 4. This Note is given pursuant to the Agreement for Loan of Minnesota Investment Fund between the Borrower and the City dated , 1997 (the "Loan Agreement") and is secured by a security agreement of even date herewith (the "Security Agreement") covering certain property located in Scott County, Minnesota. In the event any such security is found to be invalid for whatever reason, such invalidity shall constitute an event of default hereunder. All of the agreements, conditions, covenants, provisions, and stipulations contained in the Loan Agreement, or any instrument securing this Note are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein. It is agreed that time is of the essence of this Note. If a default occurs under the Loan Agreement, or any instrument securing this Note, then the Holder of this Note may at its right and option, without notice, declare immediately due and payable the principal balance of this Note, together with any costs of collection including attorney fees incurred by the Holder of this Note in collecting or enforcing payment hereof, whether suit be brought or not, and all other sums due hereunder, or under any instrument securing this Note. The Maker agrees that the Holder of this Note may, without notice to the Maker of this Note and without affecting the liability of the Maker of this Note, accept additional or substitute security for this Note, or release any security or any party liable for this Note or extend or renew this Note. 5. The remedies of the Holder of this Note as provided herein, and in the Loan Agreement, or any other instrument securing this Note, shall be cumulative and concurrent and may be pursued singly, successively, or together, and, at the sole discretion of the Holder of this Note, may be exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof. DJG132386 SH155-17 C-1 The Holder of this Note shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Holder of this Note and then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. This Note may not be amended, modified, or changed except only by an instrument in writing signed by the party against whom enforcement of any such amendment, modifications, or change is sought. 6. If any term of this Note, or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Note, or the application of such term to persons or circumstances other than those to which it is invalid or unenforceable shall not be affected thereby, and each term of this Note shall be valid and enforceable to the fullest extent permitted by law. 7. It is intended that this Note is made with reference to and shall be construed as a Minnesota contract and governed by the laws thereof. 8. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and things required to exist, happen, and be performed precedent to or in the issuance of this Note do exist, have happened, and have been performed in regular and due form as required by law. IN WITNESS WHEREOF, the Maker has caused this Note to be duly executed as of the _ day of , 1997. ADC TELECOMMUNICATIONS, INC. By Its DJG132386 C-2 SH155-17 EXHIBIT D WORKERS COMPENSATION EXEMPTION ORDER DJG132386 SH155-17 C-3 .'1 W1018 A No. sr RENEWAL STATE OF MINNESOTA v......., ... �,. .: .3 :. , .ate `` -4, jam F • 11. AA_ tpartment of (omme rLt The Undersigned COMMISSIONER OF COMMERCE for the State of Minnesota 'i hereby certifies that ADC TELEC01041MICILTIONS, INC has made application. paid the fees required and in all other respects complied with the laws of the State of Minnesota and is hereby authorized to transact the business of self—insurance for liability I under' the workers' Compensation laws of Minnesota, pursuant to .1 Minnesota Statutes Sections 176.181. aE 4900 W_ 78th Sn L Mineabo1.s, MN 55435 unless this authority be suspended,revoked,or otherwise legally terminated. This cerdf4cate shall be in effect until further order of the Commissioner • IN TESTIMONY WHEREOF, I have hereunto set my Fund and affixed the official seal of the Department of ,,y ,r,`•,, Ml Commerce, of the State of miesota at my office in the • City of St. Paul. Minnesota,chis 6th day of Aril , 19 93 - y / .Aiii; Ai( /. /:'7 [: r C. 1f'ssioner . Commerce -3 ,i chumszros OCT 15 '97 0?:30 PAGE.04 ** TOTAL PAGE.05 ** eAgfi CITY OF SHAKOPEE Memorandum TO: EDA FROM: Mark McNeill, Executive Director SUBJECT: Pending Litigation DATE: October 30, 1997 At its meeting of November 5th,the EDA will be asked to go into closed session for the purpose of discussing pending litigation. ILL tAtA,ia Mark McNeill Executive Director MM:tw OFFICIAL PROCEEDINGS OF THE CITY COUNCIL WORK SESSION SHAKOPEE,MINNESOTA SEPTEMBER 30, 1997 Mayor Henderson called the meeting to order at 4:00 p.m. with Councilmembers Jane DuBois, Cletus Link, Bob Sweeney and Burl Zorn present. Also present were Mark McNeill, City Administrator; R. Michael Leek, Community Development Director; Judith S. Cox, City Clerk; and Paul Snook, EDA Coordinator. Mayor Henderson announced that the public hearing which was to be held regarding the proposed issuance of$3,544,900 in Scott County HRA Revenue Bonds and City of Shakopee General Obligation Bonds would not be held due to the fact that certain documents were not yet ready to be finalized. Mayor Henderson stated that the public hearing would be opened and then continued to October 7, 1997, at 7:00 p.m. Mayor Henderson then turned the meeting over to R. Michael Leek for an overview of the transit issues to be discussed. Mr. Leek directed the Council members to his memorandum for reference for the discussion. Mr. Leek stated that he was looking for some direction in six different areas, which areas were as follows: Minimum age for independent ridership on Dial A Ride; Status and use of ten-cent fare for disabled individuals; Level of service; Possible discontinuation of Dial A Ride after 6:00 p.m. on weekdays and on Saturdays; Possible discontinuation of one 53S express bus and Management contract for transit services. Regarding Item #1, Minimum Age for Independent Ridership on Dial A Ride, Mr. Leek stated that there is a large number of children under the age of 10 who use the service during the school year. He noted that sometimes the child is not at the designated spot when the van arrives and therefore, the van has to return later. Mr. Leek also stated that Laidlaw would like someone to come to the pickup and drop-off sites with the child and sought a clarification of the policy. Cncl. Zorn asked Mr. Leek what the percentage of children using Dial A Ride was during the school year, and Mr. Leek replied it was about 23%. Mr. Leek further noted that a lot of the children using Dial A Ride were going to daycare. Kathy Kottke, Operations Manager with Laidlaw, approached the podium and stated that 95% of the 23% of children using Dial A Ride are under the age of 5. She further stated that ridership would not decrease if these children were not allowed to use Dial A Ride because Laidlaw has to deny other residents rides during the school year because of the large number of children using the service. Cncl. Sweeney noted that school buses do not return to pick up children when they miss the bus and questioned why Dial A Ride provides that service. Ms. Kottke noted that there is a 10- minute window each way so that if the pick-up time is 7:00, the bus could arrive anywhere between 6:50 and 7:10. She also stated that buses wait three minutes if a child is not at the bus Official Proceedings of the September 30, 1997 Shakopee City Council - Work Session Page 2 stop because of complaints they received and so they flexed their policy. Cncl. Sweeney noted that there needs to be some rules set down and Cncl. Zorn agreed. Cncl. DuBois opined that a lot of the rides are for children who are going from daycare to school. Mr. Leek stated that sometimes that may seem the most effective way for a parent to have their child transported. Mayor Henderson noted his concern about the liability in the matter and stated that some rules need to be established. Ms. Kottke noted that the drivers do not feel comfortable with the three and four year olds and stated that the closest policy she knows of for unaccompanied children is nine years old. Cncl. Sweeney further noted that the current level of subsidy is already established and if it is not used, it will be given to other communities. He liked the idea of children under 9 being accompanied by someone over 12 years of age. Cncl. DuBois agreed with the age limit, however, noted her concern that a large number of children would then be prohibited from riding. • Mayor Henderson stated that there does need to be rules, however, they may be some options built within the rules to reduce the liability. He then asked staff to obtain information from other communities and come back to the Council with a proposed policy. Ms. Kottke recommended that plenty of notice be given to the parents of the children riding. Cncl. DuBois questioned whether a public hearing was necessary and Mayor Henderson stated that it would not be, however, the Council would take public input. Mr. Leek stated that a public hearing may be advisable to provide ample opportunity for the public to know and give input. Regarding Issue No. 2, Status and Use of the Ten-Cent Fare for Disabled Individuals, Ms. Kottke noted that a large number of individuals with disabilities are using the fare to go to movies, etc. and the number of people using the fare is getting out of hand. Cncl. Sweeney stated he thought this policy was established so that disabled individuals could get to work. Cncl. DuBois suggested that the disabled individuals should be screened and cards issued. Mayor Henderson then asked staff to come up with a proposed screening procedure for discounted fares. Regarding Issue No. 3, Level of Service, i.e. "Curb to Curb" vs. "To The Door," As Well As Service to Areas Outside the City Limits, Cncl. Zorn and Cncl. DuBois stated they preferred door to door service. Mayor Henderson noted that it was the consensus of the Council that door to door service was preferable in the rural areas as long as driveways, streets, turnarounds, etc. were passable and that the driver should make that decision. He further noted that special cases could be left up to the City Administrator. Regarding Issue No. 4, Possible Discontinuation of Dial A Ride Service after 6:00 p.m. on Weekdays and on Saturdays, Ms. Kottke noted that there were no regular riders and that the Official Proceedings of the September 30, 1997 Shakopee City Council - Work Session Page 3 people using the service were basically going to K-Mart. Cncl. DuBois recommended that Saturday service be eliminated and it was the consensus of the Council that this be done. It was also recommended that staff publish notice that service would end at 7:00 p.m. on weekdays. Regarding Issue No. 5, Possible Discontinuation of One 53S Express Bus, it was noted that the service currently runs at 6:25 and 6:55 a.m. and 5:22 and 5:52 p.m. It was the consensus of the Council to keep the earliest and latest service, i.e. 6:25 a.m. and 5:52 p.m. Ms. Koddke asked if the hours being cut be put where more time for riders is needed. Councilmembers agreed to that the total numbers of hours per week would stay the same. Regarding Issue No. 6, Management Contract for Transit Services, Mayor Henderson noted that not taking action regarding the management contract at this time would not affect the ridership and since the meeting was running late,there was not adequate time to discuss the matter. Mayor Henderson then closed the Work Session at 5:07 p.m. ,,,a ebp,26 ith S. Cox ity Clerk Janet Vogel Freeman Recording Secretary N OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE,MINNESOTA SEPTEMBER 30, 1997 Mayor Henderson called the meeting to order at 5:17 p.m. with Councilmembers Jane DuBois, Cletus Link, Bob Sweeney and Burl Zorn present. Members absent: None. Also present were Mark McNeill, City Administrator; R. Michael Leek, Community Development Director; Jim Thomson, City Attorney; Judith Cox, City Clerk; Bruce Loney, Public Works Director; and Terry Link, Fire Chief. Cncl. Zorn questioned what Item 3.C. Transit Grant for a Park and Ride Site pertained to, and Mr. Leek stated that it regarded a proposed grant for a Park and Ride Site. The Met Council would take the grant request to the legislature for capital funding. Mr. Leek stated that the Council was being asked to approve making an application at this time, however, he did not know if funds would be available for a grant. Cncl. Zorn asked that Item 3.C. then be removed from the Consent Agenda. Zorn/DuBois moved to approve the agenda as modified. Motion carried unanimously. Zorn/Sweeney moved to approve the Consent Agenda as modified. Motion carried unanimously. Zorn/Sweeney moved to approve the Shakopee Chamber of Commerce utilizing the location at the south end of Stans Park for the homecoming bonfire on October 2, 1997. (Motion approved under the Consent Agenda.) Zorn/Sweeney moved to declare the items listed as surplus property (in the September 30, 1997, memo from R. Michael Leek) and authorized the City Administrator to sell or otherwise dispose of the listed items. (City Clerk Document#257) (Motion approved under the Consent Agenda.) Mayor Henderson stated that the final numbers were not yet available and that the public hearings would be opened and then continued to October 7,1997, at 7:00 p.m. Mayor Henderson opened the public hearing on the issuance of bonds to finance the acquisition and construction of the senior housing on Blocks 3 and 4. Sweeney/Link moved to continue the public hearing regarding the proposed issuance of $3,544,900 Scott County HRA Revenue Bonds/City of Shakopee General Obligation Bonds to finance the acquisition and construction of a 52-unit senior housing facility to be located on Blocks 3 and 4 to October 7, 1997, at 7:00 p.m. Motion carried unanimously. East Dean Lake Development Project. 5.A. Environmental Assessment Worksheet - Resolution No. 4750. Mr. Leek noted that approval of the rezoning and the Planned Unit Development Overlay District were contingent upon the Council approving the EAW. Official Proceedings of the September 30, 1997 Shakopee City Council Page -2- Mr. Leek then stated that staff did not feel it was necessary that an Environmental Impact Study (EIS) be performed because all comments previously raised in the review can be addressed. Mr. Leek further noted that regarding Scott County's comment regarding future development, staff felt that due to the fact that the project was not in the MUSA and other factors, Scott County's comments were not relative to this action. Sweeney/Zorn moved to offer Resolution No. 4750, A Resolution Making a Negative Declaration on the Need for an Environmental Impact Statement for the Proposed East Dean Lake PUD, and moved its adoption.. Cncl. DuBois expressed her concern about the loss of acres of trees and the size of parcel as related to environmental issues. She stated she had spoken with Allen Frechette, Environmental Health Manager for Scott County, who stated there was another process entitled AUAR which could be used as an alternative to an EIS. She stated she was not comfortable with going forward without an additional review in light of the materials received. Cncl. Sweeney stated that he had read through the comments offered by the various agencies and believed all comments had been addressed straightforwardly. He stated that if an EIS were to be required for all large areas, then he would like to see large area developments defined so as to require EISs. Cncl. Sweeney did not feel an EIS was necessary for this project. Cncl. Zorn noted that the City has full control of development as the project goes along and did not see anything of concern that the City could not fix. Cncl. Link questioned whether there was a tree replacement policy and noted that there were general replacement guidelines but no policy per se. Cncl. DuBois questioned whether there could be a requirement within the PUD to replace trees, and Mr. Leek replied ,yes. Mayor Henderson stated that there seemed to be a lot of tap-dancing around the issues involved and added that his statement was not a criticism. He further stated that he believed staff when it advised that it could address any of the noted problems. He noted the project did include a large area and asked Mr. Leek if he was comfortable that all issues were addressed in the PUD. Mr. Leek stated he felt reasonably comfortable that the City has or will address all concerns. He added that there may be a groundwater impact, however, he further noted that there were adequate controls and time to deal with any potential impacts. Steven Soltau approached the podium and introduced certain members in the audience that were in attendance and noted their willingness to work with the City. Mr. Saltau introduced the following audience members: Jon Albinson, Valley Green Business Park; Stan Hamerski, Residential Consultant for Shakopee Crossings; Dennis Saari, Shakopee Crossings and Minneapolis Foundation; Phil Carlson, Planner; Bruce Malkerson, Development Counsel; Don Official Proceedings of the September 30, 1997 Shakopee City Council Page -3- Brown, Frank Svoboda and Jeffrey Olson, Environmental Consultants for Shakopee Crossings and Minneapolis Foundation; Dan Blake, Centex Homes; Ted Axt, Traffic Consultant; Steve Carlson, Environmental Consultant for Valley Green Business Park; Judy Conat, Assistant at Valley Green Business Park; and various neighbors to the project. Phil Carlson, Senior Planner for the East Dean's Lake Development Team, approached the podium. He noted that an environmental review process had been set up many years ago in order to have all agencies offer comments regarding environmental issues. He further noted that EAW's and EIS's are not additional levels of regulation but that these processes merely identify already-existing regulations. Mr. Carlson stated that thresholds are set within the regulations and that the East Dean's Lake project was in the low category of an EAW, not an EIS. He noted that his firm has assembled considerable information to adequately address all comments. As to an AUAR, Mr. Carlson stated that that process was a relatively new one and was set up for projects which did not really fit either an EAW or EIS and was for a generalized plan rather than a specific plan as with Dean's Lake. Regarding the tree issue, Mr. Carlson noted that oak wilt had already become an issue and that about 100 acres of trees would be lost, however, there will be tree replacement. He further noted that the tree replacement was not a significant environmental concern. As to the groundwater impact, Mr. Carlson noted that it was a complicated system, however,he believed the analysis showed the impact could be fixed. Cncl. DuBois questioned why AUAR's had been done previously On certain projects. Mr. Carlson replied that an example would be in Maple Grove where an AUAR was performed for an area that had a generalized plan instead of a specific project. Mr. Carlson was also aware that an AUAR was performed in Stillwater. Mr. Leek also noted that Savage had performed an AUAR. Cncl. DuBois noted that developing West Dean's Lake could impact this project. Cncl. Sweeney stated that Mr. Frechette believes that all drainage ponds should have impermeable bottoms and that may be why Mr. Frechette believes the City needs to go beyond what is needed for this project. Mayor Henderson noted that West Dean's Lake developers will have to deal with any problems at the time of development. Cncl. Zorn stated that he believed this project stands alone and the EAW indicates that the City can handle any problems that arise. Bruce Malkerson, attorney for the development group approached the podium. He stated that he was familiar with hundreds of EAW's and noted that an EAW will advise whether an EIS is needed. He stated he did not believe an EIS was warranted as shown by the comments received from all agencies. Motion carried unanimously. Official Proceedings of the September 30, 1997 Shakopee City Council Page -4- 5.B. Rezoning- Ordinance No. 503. Mr. Leek stated that the project manager for Valley Green Business Park was requesting a zoning change for the East Dean's Lake project to rezone the property from AG and I1 to R-1A and R- 1B. Mr. Leek noted that there is an approximately 20-acre area in the northeast part which was to be designated as office. Mr. Leek stated that Council could approve the rezoning request including the 20-acre area with direction that staff amend the comprehensive plan or could approve the rezoning request with the exception of the 20-acre area and that area could be addressed in the comprehensive plan being worked on now. Cncl. Link inquired whether the rezoning would require a public hearing to which Mr. Leek replied that a public hearing had been held in this regard. Cncl. Zorn inquired whether rezoning would require approval from the Met Council, and Mr. Leek replied he did not believe a formal review would be necessary. Zorn/Sweeney offered Ordinance No. 503, Fourth Series, Ordinance of the City of Shakopee, Minnesota, Amending the Zoning Map Adopted in City Code Section 11.03 By Rezoning Land Located South of Highway 169, West of County Road 18 and North of County Road 16 from Agricultural Preservation (AG) and Light Industrial (LI) to Low Density Residential (R-IA) and Urban Residential (R-1B) Including an Approximate 20-acre Parcel in the Northeast Part of such Property, and moved its adoption. Kathy Gerlach, Shakopee, MN approached the podium and inquired what the difference in density was between R-1A and R-IB. Mr. Leek replied that R-1A is three dwellings per acre and R-1B is three to five dwellings per acre. Ms. Gerlach also inquired if a change in zoning would be permanent, and Mr. Leek replied,yes. Motion carried unanimously. Sweeney/Zorn moved to direct staff to modify the comprehensive plan to deal with the 20-acre issue. Motion carried unanimously. Mayor Henderson recessed the meeting at 6:14 p.m. Mayor Henderson re-convened the meeting at 6:25 p.m. 5.C. Planned Unit Development Overlay District No. 14 -Resolution No. 4751. Mr. Leek noted that the resolution on the table is a revised resolution. Mr. Leek noted that there are four proposed neighborhoods with access via a major collector street. He further noted that the Planning Commission had reviewed the PUD and recommended its approval subject to Official Proceedings of the September 30, 1997 Shakopee City Council Page -5- certain conditions as follows: Right of way will be 55' and street width will be 28'; Inclusion of a requirement adding the parking plan be approved by the City Engineer prior to any final plat; Inclusion of a requirement that the collector street end in a cul-de-sac until completion of County Road 21; Inclusion of a requirement adding a five-foot sidewalk; Inclusion of a requirement that all parks except the tot lots be dedicated to the City; A change in zoning that the overall density be 2.5 dwellings per acre and add up to 400 townhomes in neighborhood 4. Mr. Leek stated that two areas are outside of MUSA and are not planned for development. All proposed dwellings are within the MUSA. Cncl. Zorn asked why the property was not included in MUSA and Mr. Leek replied that he was not sure but thought that when the Comprehensive Plan was done in 1995 or 1996, it was done with an eye toward developable area. Mr. Leek was also not sure why the 20-acre piece referred to above was not included in MUSA and suggested that if the Council wanted to deal with that issue that they state so explicitly in the PUD. Mr. Leek noted that there is no real impact even though it is outside MUSA. Jim Thomson, City Attorney, opined that clarification was needed from the Met Council on this issue and that the Council could direct staff to do so. Mr. Leek stated that the Planning Commission recommended that the City maintain the open space because the City could maintain more control in that area. Cncl. Link noted his concern about water table rising and who would be responsible for such a problem should it occur. Bruce Malkerson, counsel for the development, approached the podium and stated that he did not think the City would be liable. Mayor Henderson stated that since the area is staying in its natural state, that water table rising should not be a problem. Cncl. Zorn confirmed that the only area to be maintained by a homeowner's association would be the landscaping islands. Cncl. Sweeney noted that Prior Lake had a problem with flooding and that any excess eventually goes into Dean's Lake. He noted that there was an agreement in place with the City as to how much could go into Dean's Lake and asked whether this would present a future problem. Mr. Thomson stated that it could be a problem, but it is not the type of problem that would relate to who owns the space. Bruce Loney stated that the City is working with Prior Lake and is in the process of performing a feasibility study and awaiting a response from the DNR. Cncl. Zorn questioned why it was necessary to reduce the right-of-way from the standard 60 feet to which Mr. Leek replied that the developer wanted to preserve as much as possible, i.e. less grading and more trees. Mr. Carlson reapproached the podium and stated that the 28' request was due to the character of the development and storm water runoff benefit. He also stated that with the street width reduction, an accompanying reduction is made for the right-of-way. He noted another reason was safety because wider streets encourage increased speeds. It was also Official Proceedings of the September 30, 1997 Shakopee City Council Page -6- noted that the Public Works Department wanted 32' streets and the Fire Department wanted 36' streets. Mr. Carlson further noted that parking is on one side only so there should be about the same amount of space for plowing and emergency vehicles. Zorn/Link moved to amend Resolution No. 4751, A Resolution of the City of Shakopee, Minnesota, Approving Planned Unit Development Overlay District #14, East Dean Lake to Incorporate 32' Street Widths. Cncl. Link questioned whether it would be difficult to sell homes where parking was only allowed on one side of the street and Mr. Carlson stated he did not believe it would. Mr. Link also questioned where visitors would park, and Mr. Carlson stated that there would be adequate parking since there were 5 1/2 to 6 parking spaces per unit. Mr. Link stated he did not believe there was enough space between the property line and setback to allow a number of long vehicles in driveways. Mr. Loney noted that that the City is willing to work with 30' streets. Mr. Link further stated that City regulations are for 36' streets and also expressed his concern regarding enforcement of one-sided parking. Steven Soltau reapproached the podium and stated that he believed the development would probably police itself. Mayor Henderson stated that the development will probably run into some extenuating circumstances but parking would not be an everyday problem. Fire Department Chief Terry Link approached the podium. He stated that because of the density, the Department would be comfortable with 30 foot streets except in the townhome area where the Department would like to see 32 foot streets. He further stated that the boulevard islands were not a benefit and was concerned about the parking situation. Cncl. Sweeney noted that the streets in the development would all be public streets rather than private streets and could not be plowed curb to curb. Mr. Zorn stated the narrower street widths would cause inconvenience to a lot of people and believed that 32 foot streets, with parking on one side, could work. Kathy Gerlach reapproached the podium and noted that water runoff was important. Mayor Henderson stated that water runoff can be significant depending on how it is calculated. Mr. Loney stated that no matter what the street width was, the developer has to provide ponding based on runoff flow and that in the East Dean's Lake project, the developers have directed most of the storm water away from Dean's Lake. Mayor Henderson suggested a compromise to 30 foot street widths except in neighborhood 4 which would be 32 feet. Mr. Link noted that neighborhood 2 was also high density. Mr. Zorn again stated that he was in favor of 36 foot street widths in high density areas and 32 foot street widths in low density areas and noted there already was a compromise in the amendment offered. Cncl. DuBois stated that she could live with 30 foot streets in the single family neighborhoods and 32 foot streets in the townhouse development. Official Proceedings of the September 30, 1997 Shakopee City Council Page -7- DuBois/Sweeney to amend the previous motion amending Resolution No. 4751 to 30 foot street widths except in neighborhood 4 which would be 32 foot street widths. Mr. Loney stated that the townhouse development was fairly light density and there would be ample opportunity to make sure there was adequate parking. Mayor Henderson noted that the developer can request a variance at the time of final platting. Mr. Thomson stated that if the resolution is adopted, it is a resolution of the PUD, however, an amendment can be requested. Cncl. Link further expressed his concern regarding plowing with cars parked on one side of the street. Dan Blake, Centex Homes, approached the podium. He spoke to the issue of neighborhood 2 and stated that there are internal controls, i.e. covenants. As an example, one of the covenants is that residents are not allowed to park in their driveway for more than 24 hours at a time. He further noted that residents are aware of the covenants when they move into the neighborhood and he did not think that the narrower street widths would be a problem. He also stated that Centex is building similar types of developments in other areas and they are not running into this problem. Mr. Blake also noted that there will be an Association with a Board of Directors for the project. Jon Albinson, Project Director, Valley Green Business Park, approached the podium. He pleaded with the Council not to require 32 foot street widths because people will drive faster and noted that there may come a point in the City where there is no parking during snow emergencies rather than allowing parking on one side of the street. Regarding the motion to amend the previous motion amending Resolution No. 4751 to require 30 foot street widths in all neighborhoods except neighborhood 4 would require 32 foot street widths, motion carried; with Link and Zorn opposed. Regarding the motion to amend Resolution No. 4751, A Resolution of the City of Shakopee, Minnesota, Approving Planned Unit Development Overlay District #14, East Dean Lake to Incorporate 30 Foot Street Widths in all Neighborhoods Except Neighborhood 4 Which Would Require 32 Foot Street Widths; motion carried, with Link and Zorn opposed. Mr. Leek inquired if the City Council's intent for right-of-way was to be 55' or 60'. Zorn/DuBois moved to amend the right-of-way to 60 feet for neighborhood 4. Motion carried unanimously. Mr. Leek noted that the Resolution includes variances in Item No. 4, regarding zoning standards, lot width and setbacks. Mr. Zorn inquired if a change can be made after passing the resolution, and Mr. Thomson replied that it cannot. Mr. Leek noted that the developer is making a request Official Proceedings of the September 30, 1997 Shakopee City Council Page -8- for variances in the lot width because of the type of homes that are being built. Mr. Sweeney noted that exchanges are made with dealing with PUDs. Mr. Link stated that he did not believe that developers could be treated in different ways. At 8:00 p.m. a recess was taken. Mayor Henderson re-convened the meeting at 8:12 p.m. Sweeney/DuBois offered Resolution No. 4751, A Resolution of the City of Shakopee, Minnesota, Approving Planned Unit Development Overlay District #14, East Dean Lake, as amended, and moved its adoption with a further note of a typographical error in Item #1, xii) which should be neighborhood#2 rather than neighborhood #4. Cncl. Sweeney asked that a discussion be held regarding the requested variances. Cncl. Zorn stated that PUD's are each considered separately and on their own merit. He stated he believed the variance request had merit and noted the Centex homes fit nicely on the lots. Cncl. Link inquired what the difference was between Orchard Park and Dean's Lake. Mr. Leek replied that the nature of the product is specifically tailored to the environment and nature of the individual site, i.e. the wetlands and open space. Mr. Link again expressed his concern regarding the fairness issue to developers and believed that the Orchard Park plat was basically the same as Dean's Lake. Cncl. DuBois stated that not all PUD's are created equal and did not think the fairness issue came into play. She further stated that she did not have a problem with the variances requested. Cncl. Sweeney questioned what the overall density was in Dean's Lake compared to Orchard Park, and Mr. Leek replied that Dean's Lake is 2.5 dwellings per acre and thought that Orchard Park was 3 dwellings per acre. Motion carried with 4-1 with Link opposed. Regarding any traffic issue, Mayor Henderson noted that issue is a County matter. Mr. Leek stated that one entire session of the Planning Commission had been dedicated to traffic concerns when the PUD was drafted, and the matter will further be considered at the final platting process. Cncl. Link questioned whether the traffic issue was contained in the PUD, which was just voted upon. It was noted that it was contained in the PUD. Cncl. Link expressed his concern. Sweeney/Zorn moved to reconsider the approval of Resolution No. 4751 in order to discuss the traffic concerns of Cncl. Link. Motion carried 3-2 with DuBois and Henderson opposed. Official Proceedings of the September 30, 1997 Shakopee City Council Page -9- Cncl. Link expressed his concern about traffic coming onto Highway 18 without traffic jams occurring. Mr. Carlson stated that a connector road will be built and will handle the traffic adequately. Cncl. Zorn questioned why a separate exit was not going to be added to the bypass and Mr. Carlson stated it was not possible. He further noted that in the scheme of things, the development was not large enough to warrant its own interchange. Cncl. DuBois left the meeting at 8:30 p.m. Mr. Loney noted that performance of a feasibility study had been approved and was in the process regarding the collector street. He further stated that someday the MNDot property will be sold and the City would probably be asked if it was interested in the parcel or it would be auctioned off. Cncl. Sweeney noted that any assessments would be payable by the State. Cncl. Sweeney questioned when CR-21 would be complete and noted that the County does not always finish by the deadlines given. Sweeney/Zorn offered Resolution No. 4751, A Resolution of the City of Shakopee, Minnesota, Approving Planned Unit Development Overlay District #14, East Dean Lake, as amended, and moved its adoption with a further note of a typographical error in Item 1) xii) which should read neighborhood #2 rather than neighborhood #4. Motion carried unanimously with Cncl. DuBois absent. 3. C. Transit Grant for a Park and Ride Site -Res. No. 4752 Mr. Leek stated that when the available funds were brought to his attention, he thought a Park and Ride Site would be appropriate for the area and he was looking beyond the services already provided. Zorn/Sweeney moved to offer Resolution No. 4752, A Resolution Authorizing Application for a Metropolitan Council Transit Capital Grant, and moved its adoption. Motion carried unanimously. Zorn/Link moved to adjourn. Motion carried unanimously. Meeting adjourned at 8:41 p.m. Gudith S. Cox r 1ty Clerk Janet Vogel Freeman Recording Secretary OFFICIAL PROCEEDINGS OF THE CITY COUNCIL REGULAR SESSION SHAKOPEE, MINNESOTA OCTOBER 7, 1997 Mayor Henderson called the meeting to order at 7:03 P.M. with Councilmembers Jane DuBois, Burl Zorn, Robert Sweeney, and Cletus Link present. Also present: Mark McNeill, City Administrator; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/City Engineer (at 8:18 P.M.); Gregg Voxland, Finance Director; Judith S. Cox, City Clerk; Paul Snook, Economic Development Coordinator; and Jim Thomson, City Attorney (at 7:42 P.M.). The meeting was recessed between 7:03 P.M. and 7:42 P.M. for an Economic Development Authority meeting. Sweeney/Zorn moved to approve the agenda as presented. Motion carried unanimously. Sweeney/Zorn moved to approve the Consent Agenda as presented. Motion carried unanimously. Liaison Reports were given by Councilmembers. Mayor Henderson gave the Mayor's Report. Mayor Henderson asked if there were any interested citizens present who wished to address the City Council on any item not on the agenda. There was no response. Sweeney/Zorn moved to approve the minutes of August 21, Adj. Regular Session; August 21, Work Session; August 28, Work Session; September 2, Regular Session; and September 9, Adj. Regular Session. (Motion carried under the Consent Agenda.) Sweeney/Zorn moved to approve bills in the amount of $516,961.61. (Motion carried under the Consent Agenda.) The Public Hearing regarding the proposed issuance of $3,544,900 Scott County HRA Revenue Bonds/City of Shakopee General Obligation Bonds to finance the acquisition and construction of a 52-unit senior housing facility to be located on Blocks 3 &4 was opened. Mayor Henderson asked for comments from the audience. There were none. Zorn/DuBois moved to close the public hearing. Motion carried unanimously. Zorn/Sweeney offered Resolution No. 4744, A Resolution Approving the Issuance by the Scott County Housing and Redevelopment Authority of its Housing Development Revenue Bonds (City of Shakopee, Minnesota, Unlimited Tax General Obligation- River City Centre Project) Series 1997A in an Aggregate Principal Amount not to Exceed $3,544,900 and Pledging the Full Faith and Credit of the City of Shakopee thereto, and moved its adoption. Motion carried 4-1 with Cncl. Link opposed. Official Proceedings of the October 7, 1997 Shakopee City Council Page -2- Zorn/DuBois offered Resolution No. 4745, A Resolution Approving the Execution and Delivery of a Development Agreement By and Between the City, the EDA and the Scott County Housing and Redevelopment Authority, and moved its adoption. Motion carried 4-1 with Cncl. Link opposed. DuBois/Sweeney offered Resolution No 4746, A Resolution Modifying Tax Increment Financing Plan for Tax Increment Financing District No. 10, and moved its adoption. Motion carried 4-1 with Cncl. Link opposed. Sweeney/DuBois offered Resolution No. 4747, A Resolution Authorizing the Execution and Delivery of a General Obligation Tax Increment Guaranty Agreement, Guarantying the Payment of Debt Service on the Scott County Housing and Redevelopment Authority's Taxable Tax Increment Development Revenue Bonds (City of Shakopee, Minnesota, General Obligation - River City Centre Project), Series 1997D and Tax Increment Development Revenue Bonds (City of Shakopee, Minnesota, General Obligation - River City Centre Project), Series 1997E Tax Increment Pledge Agreement, and moved its adoption. Motion carried 4-1 with Cncl. Link opposed. Zorn/Henderson offered Resolution No. 4748, A Resolution Approving Certain Financing Documents Relating to the River City Centre Project, and moved its adoption. Motion carried 4-1 with Cncl. Link opposed. Mayor Henderson thanked the HRA and consultants for their help throughout this project and said he was looking forward to the HRA decisions on the final documents. Item 14.E.3 Awarding Sale of 1997B Improvement Bonds, was moved ahead on the agenda. Dave Mac Gillivary, Springsted Financial Advisors, approached the podium and asked for consideration of a resolution awarding the issuance and sale of $1,805,000 General Obligation Improvement Bonds, Series 1997B. Proceeds of this issue are for four improvement projects and will be repaid by special assessments. He said of the nine bids received, Smith Barney had the best interest rate. There are four Chicago underwriting syndicates and five Twin City underwriting syndicates. The estimate of approximately one month ago was 4.85% and the current estimate is .4 of 1% under that estimate. He said Moody's has reaffirmed the City's rating at A2. They have also changed their classifications and explained that the A2 is the same as the previous A rating. He said the A rating has been divided into Al, A2 (same as previous A), and A3 (slightly less than A). Mr. Mac Gillivary said that Moody's expects accelerated expansion in Shakopee due to improved road access and new development. He recommended awarding the sale to Smith Barney. Official Proceedings of the October 7, 1997 Shakopee City Council Page -3- Zorn/Link offered Resolution No. 4757, A Resolution Authorizing Issuance, Awarding Sale, Prescribing the Form and Details and Providing for the Payment of$1,805,000 General Obligation Improvement Bonds, Series 1997B, and moved its adoption. Motion carried unanimously. A recess was taken at 8:05 P.M. The meeting re-convened at 8:18 P.M. Item 14.E.9. Police Chief Retirement, was moved ahead on the agenda. Sweeney/Zorn moved to accept the notice of impending retirement from Tom Steininger as Police Chief, effective February 27, 1998, with regrets. Motion carried unanimously. The regular order of the agenda was resumed, beginning with item 13.A. Preliminary & Final Plat of Crossroads Center 2nd Addition. Michael Leek explained that the revisions to the preliminary plat involve the creation of an additional lot in Block 2; which is the area between the entrances to the retail center CUP project on Vierling Dr., and the re-configuration of Lot 2 in Block 1 becoming larger. He said the Planning Commission reviewed the request and recommended approval. Mr. Leek also requested that the Council consider one addition to the resolution which would be labeled C.2.g. and would read " The developer shall be responsible for the costs of upgrading Vierling Drive which are attributable to the developer's project." Sweeney/Link offered Resolution No. 4755, A Resolution of the City of Shakopee, Minnesota, Approving an Amendment to the Preliminary Plat of Crossroads Center and the Final Plat for Crossroads Center 2nd Addition. Sweeney/Zorn moved to amend Resolution No. 4755 to incorporate the language in item C.2.g. "The developer shall be responsible for the costs of upgrading Vierling Drive which are attributable to the developer's project". Motion carried unanimously. Resolution No. 4755, as amended, carried unanimously. Sweeney/Zorn offered Resolution No. 4756, A Resolution of the City of Shakopee, Minnesota, Approving the Final Plat for Boulder Ridge, and moved its adoption. (Motion carried under the Consent Agenda.) Sweeney/Zorn offered Resolution No. 4759, A Resolution Canceling the Public Hearing for Valley Park 13th Addition Improvements, Project No. 1996-8, and moved its adoption. (Motion carried under the Consent Agenda.) Official Proceedings of the October 7, 1997 Shakopee City Council Page -4- Sweeney/Zorn offered Resolution No. 4760, A Resolution Canceling the Public Hearing for the Installation of Sanitary Sewer Laterals in the NE 1/4 of the NW 1/4 of Section 17, Township 115, Range 22; and the NW 1/4 of the NW 14 of Section 17, Township 115, Range 22, Scott County, Project No. 1996-9, and moved its adoption. (Motion carried under the Consent Agenda.) Bruce Loney asked Council to authorize a feasibility report for the 1998 street reconstruction project. He identified the areas to be included. He said the revised street reconstruction area is a continuation of the 1996 street reconstruction project and is being proposed to assist parking needs around the Justice Center. He also requested authorization to solicit quotes on soil investigation work and to authorize preliminary design work to determine costs for the feasibility report. In response to a question as to whether new curb and gutter for St. Mary's could be added to the feasibility study, Mr. Loney said it could be added to the feasibility study. Zorn/Sweeney offered Resolution No. 4761, A Resolution Ordering a Feasibility Report for the 1998 Reconstruction Project (including Sommerville Street adjacent to St. Mary's), and moved its adoption. Motion carried unanimously. Zorn/Sweeney moved to authorize the appropriate City officials to execute a consultant contract with WSB & Associates, Inc. for surveying services for the proposed 1998 Street Reconstruction Project in an amount not-to-exceed $9,500. Motion carried unanimously. DuBois/Link moved to authorize staff to solicit quotes for soil investigation work for the proposed 1998 Street Reconstruction Project. Motion carried unanimously. Bruce Loney explained that the feasibility report for the East Dean Lake Collector Street, Utilities and Appurtenant Work was initiated by a joint petition by three property owners in conjunction with the East Dean Lake area development. The feasibility report needs to address whether the proposed improvements are necessary, cost effective, feasible and whether it should be constructed as proposed or in connection with some other improvements. The proposed collector is 8700 feet long with a 30 foot wide median and is served by a major sewer line. The estimated cost is $6,046,000. This is proposed to be financed by the City through Chapter 429 special assessments. Further analysis from the Finance Department as to the necessary security to insure payment of the assessments is recommended and will be provided before the Public Hearing. Official Proceedings of the October 7, 1997 Shakopee City Council Page -5- Mr. Loney explained that the sanitary sewer map did not have a trunk line proposed in this area. He said lift stations will more than likely be needed to serve the Maras Street and Boiling Springs areas east of old C.R.18. He said it would be beneficial for the City to take the entire service area through East Dean Lake. This rerouting would save $183,000 versus going under the bypass. The City would pay for oversizing costs to accommodate the service area change. Oversizing costs are estimated at $141,400. Another issue is the funding of bituminous trails along the street collector. This cost is estimated at $75,000 and does not include indirect costs. This bituminous trail is proposed to be paid for by the City using Capital Improvements Funds, as this would be a transportation trail and not a park and recreation trail. Mr. Loney explained that a Dean Lake bypass channel is also being proposed as part of the design of the Prior Lake-Spring Lake Watershed District channel and the Blue Lake drainageway. There is a concern that too much water going into Dean's Lake which may degrade it. There have also been discussions of a Dean's Lake bypass to allow a certain flow of water to bypass through the ditch and ponding system to the Mn/DOT Trunk Highway 169 box culverts and down stream. This would be an additional cost to the storm drainage trunk fund, estimated at $185,000. Mr. Loney said discussions are underway to set up a new revised joint powers agreement with Prior Lake for all participating parties. He said at this time there is no participation agreement. Brett Weiss, WSB, approached the podium and stated that the figures Bruce Loney listed were the same as those in the feasibility report. In response to a question regarding the build-out of the Dean Lake development as it relates to the special assessments, Bruce Loney stated the developers are anticipating a 3-5 year build-out. He said the concern is when County Road 21 will be extended with the phasing of the development and the impact of traffic on County Road 18. A discussion relating to cost participation ensued. Brett Weiss stated that the signal systems have been included in the estimate. Cncl. Sweeney stated that the figures in the feasibility report do not include some figures that will affect bonding, and requested project costs as this will impact projects in other areas of the City. Mr. Weiss said the project costs will be added in to show the adjusted figures at the next meeting. Zorn/Sweeney offered Resolution No. 4765, A Resolution Receiving a Report and Calling a Hearing on an Improvement to East Dean Lake Collector Street, Utilities and Appurtenant Work, Project No. 1997-4, and moved its adoption. Official Proceedings of the October 7, 1997 Shakopee City Council Page -6- A discussion ensued regarding the time-table for the construction of County Road 21. Bruce Loney stated this project is in the County 5-year capital improvement program. He said an EIS would also be required and would take approximately one to two years. Brett Weiss said the extension of the City street to County Road 21 is proposed, as well as future signal improvements. The future area has also been addressed through the commercial area. He added that these costs are paid for up front by the developers. Motion carried unanimously. Mark McNeill stated there were 21 firefighter applicants for seven vacancies that were previously approved by the City Council to be filled in 1997. Chief Link has requested that the two additional firefighters budgeted for 1998 be approved for hire at this time. Zorn/Sweeney moved to approve the hiring of nine firefighters: Duane Hoffman, Scott Wenisch, Duane Slaughter, Al Johnson, Mark Wandersee, Rusty Rice, William Beckrich, Mark Sullivan, and Mary Jane Buland. Motion carried unanimously. Mark McNeill stated that Fire Chief, Terry Link, has recommended the purchase of 11 3M Opticom Emitters to be placed on the trucks so that the stop signals turn green upon approach to pass through the red light intersections. The cost is $13,433. He also requested that the remaining budgeted amount of approximately $21,567 be used to upgrade the intersections of County Road 17 and 4th Avenue, and County Road 16 and County Road 17 for this capability. The City would reimburse the County as they control these signals. Terry Link, Fire Chief, approached the podium and explained how the light bar emitters work. Zorn/Sweeney moved to approve the purchase of 11 3M Opticom Emitters at a cost of$13,433, and recommend that the Fire Chief return to the Council with specific costs for the equipment for upgrading the key intersections. Motion carried unanimously. Sweeney/Zorn moved to authorize the appropriate City officials to enter into the following Criminal Justice Data Communications contracts with the Minnesota Bureau of Criminal Apprehension: 1. Criminal Justice Data Communication - Network User Agreement. 2. Computerized Criminal History Information Access Agreement. 3. Computer Interface Access Amendment. (Motion carried under the Consent Agenda.) Sweeney/Zorn moved to authorize the appropriate City official to execute a Memorandum of Agreement for the Shakopee Police Department to continue participation in the Minnesota National Guard Counterdrug Program. (Motion carried under the Consent Agenda.) Official Proceedings of the October 7, 1997 Shakopee City Council Page -7- Sweeney/Zorn moved to authorize the appropriate City officials to execute State of Minnesota Grant #90274 to fund "Face to Face" in the amount of $5,146. (Motion carried under the Consent Agenda). Mark McQuillan stated that in response to a recommendation to consider naming a park after former Parks and Recreation Director George Muenchow, the Parks and Recreation Advisory Board discussed this possibility but did not have a particular park in mind. The Board has recommended naming the new ball fields next to the Shakopee Community Center as George F. Muenchow Fields, if the Council desires to name a park after George Muenchow. Zorn/DuBois offered Resolution No. 4758, A Resolution Naming the Ball Fields Next to the Shakopee Community Center as George F. Muenchow Fields. A discussion ensued relating to naming parks after current people and setting precedent. Motion carried unanimously. DuBois/Link moved to hold a special ceremony to unveil the new name of the ball fields on Wednesday, October 22, 1997, at 4:30 p.m. at the site. Motion carried unanimously. Mark McQuillan explained that the Shakopee Hockey Association and Shakopee Lions Club would like to blacktop one of the two outdoor hockey rinks at Lions Park to enable in-line skaters to use the rink during summer months to play roller hockey and/or pleasure skate. The estimated cost is approximately $15,000. The Hockey Association and the Lions Club have agreed to pay the entire cost to blacktop the hockey rink. Estimates to replace rotted boards which rotted beyond repair will range from $5,000 to $6,000 just for materials. This cost could be allocated from the Public Works maintenance budget or the Park Reserve Fund. Mr. McQuillan said this subject has not been discussed by the Parks and Recreation Advisory Board. A discussion ensued as to whether this is a maintenance item or a park improvement item, and whether this should be discussed by the Advisory Board before coming before the City Council. Zorn/Sweeney moved to table discussion on blacktopping Lions Park outdoor hockey rink, pending a recommendation form the Parks and Recreation Advisory Board. Motion carried 4-1 with Cncl. DuBois opposed. A recess was taken at 9:29 P.M. The meeting re-convened at 10:03 P.M. following the E.D.A. executive session. No action was taken during the executive session. Sweeney/Link moved to remove discussion of the Environmental Assessment Worksheet (EAW) CAMAS Minnesota, Inc., Shiely Division from the table. Motion carried unanimously. Official Proceedings of the October 7, 1997 Shakopee City Council Page -8- Michael Leek stated that one of the reviewing agencies, Scott County, recommended that the City order an Alternative Urban Area Wide Review (AUAR) for the proposed quarry project on CAMAS/Shiely's western site. He said Valley Green Business Park has requested that an EIS be ordered. The Metropolitan Council, Shakopee Public Utilities, and Scott County submitted comments regarding the need for an EIS or for additional information. Robert Bieraugel, Environmental Affairs Manager, CAMAS Inc., approached the podium and said that substantial work went into the hydrology mine plan, which is part of the EAW. He said the mine plan proposes substantial adjustments in the water regime in the area which he believes to be a win-win situation. He said Barr Engineering was hired to advise them if there was a way to carry on their business on the west side of their property. Based on their advice, they were to assist them in putting together a mine plan to best address environmental issues and concerns of neighbors, and to provide a way to carry on their business profitably. Mr. Bieraugel said the basis of the EAW is scientifically complete and requested the opportunity to move forward with the mine plan based upon the EAW and understanding that the proposed quarry on the west side of the property will take 15 years to develop to its fullest extent. He said with this amount of time to develop and to monitor ground water and other issues, there is an opportunity to generate substantial real word data that can be contributed into Barr Engineering's hydrologic models to substantiate or refute the projections, while delivering substantial information to the City as it prepares its well head protection plan. He said they hope to be the provider of construction aggregates, and their reputation in Shakopee is important because it will precede them to the next community. He concluded by stating that they are serious about addressing the needs of neighbors, environmental concerns, and being a substantial corporate citizen. Nels Nelson, Hydrologist, Barr Engineering, approached the podium and said Shiely had asked Barr Engineering to look at alternatives such as using ground water discharge as a drinking source, infiltration trenches, and injection wells. He said the only feasible alternative found was the use of the east quarry as a water body and blocking the effect of the pumping on the Savage Fen, Boiling Springs, and Eagle Creek. A new model, calibrated to local conditions based on monitoring well data was presented to the DNR for review. The DNR determined that the model appeared to be feasible, would be beneficial, and that an EIS was not warranted. This is the same concept which was forwarded to the City for consideration. Mr. Nelson said concerns were raised regarding infiltration. He said Barr Engineering met with the Department of Health staff, Al Freshette, and Valley Green and explained that the water levels in the quarry would be kept below the pre or post quarry levels. The Metropolitan Council also had concerns that the water would be raised above their natural level. He said based on the information and modeling, holding the water level at elevations of 925 feet or 932 feet, the water levels would not be raised as high as if the pumps were turned off. The Public Utilities Commission initially had Official Proceedings of the October 7, 1997 Shakopee City Council Page -9- concerns about infiltration. Mr. Nelson said if the east quarry is held high enough, all the infiltration that would occur will go to the north and would not be in the same aquifer. There were also concerns about the well head protection zone. Mr. Nelson said the existing zone is only slightly modified to the side and the travel speed is not significantly changed. He said the concerns can be mitigated and will not significantly impact the operation of the wells. Mr. Nelson also addressed the following concerns: Concern over the loss of capacity: He said losses are less than 10 percent of the capacity, and the capacity will actually be increased, the impact will be felt slowly over a period of 15 years. This is a small impact on the City's overall water supply system. Limitations on DNR appropriations: Building new wells will be limited by DNR concerns at the Savage Fen. He said the plan will increase levels at the Savage Fen and would help the permitting issue. He said this should not impact the ability of the City to drill wells except within the immediate quarry area. Waste of water issue: He said there is a general feeling that it is unenvironmental to pump water into the river. Part of the concern is viewing the aquifer as a precious reserve that can be drained dry and will never recover. He said the ground water moves from the south to the north, flowing into the Minnesota River. Pumping it out and moving it in establishes a new steady state, and once the pumping is done the aquifer will recover. There is no reason to believe this is a permanent, or significant or environmental impact. Dean's Lake issue: Dean's Lake has unstable levels and rises and falls, has been impacted by Prior Lake outlet and will be increasingly impacted by urban runoff. There have been three studies by the Department of Natural Resources which all indicate no reason that Shiely's pumping had any significant environmental impact on water levels in Dean's Lake. Mr. Nelson said he was confident that Barr Engineering has done a good job and the impacts will be minor and controllable. Joel Abrahamson, Doherty, Rumble & Butler, representing CAMAS, approached the podium and said it is clear that the proposed project does not have the potential for significant environmental affects. Therefore, there is no reason to delay or defer a decision to wait for an unnecessary EIS. He addressed key legal principals, stating that the decision must be based on four factors of evidence and on substantial evidence. He said Barr Engineering's analysis has shown that the project will not have any potential for significant or environmental impact. He also said the Conditional Use Permit issued by the City is an appropriate tool to use to address any concerns even though no EIS is necessary. Official Proceedings of the October 7, 1997 Shakopee City Council Page -10- In response to a request to explain the difference between an EIS and an EAW, Mr. Abrahamson said the EAW is a cursory look at the project to see if there will be any impacts. The EIS requires analysis of alternatives and is much more detailed. In response to a question as to what will happen to the water table when the west mine is done, Mr. Nelson said the water table will return to its pre-quarry condition. The water will continue to flow toward the Minnesota River with essentially no significant change. He said when Shiely is no longer pumping, the water will enter the lake on the upstream side and exit on the down stream side. Mayor Henderson stated that requiring an EIS if additional information is needed is not a "no" to the project. Cncl. Zorn noted that there have been numerous comments received and that an EIS might answer the questions raised. Cncl DuBois stated that no one can identify the impacts that will occur over the next 15 years. She has not seen sufficient information on what these impacts will be. A discussion ensued as to unknown future impacts and whether or not there is sufficient information. Jim Thomson said that the decision to request an EIS is discretionary and based on his review of the record, there is sufficient evidence to support a finding on either side. A discussion ensued regarding well capacity and the number of gallons pumped per minute, and the impact this might have on a new well which SPUC is planning for due to growth. Mr. Nelson said 100 gallons per minute are pumped and if the City were a small City without significant growth, this might have a significant impact. In response to a question as to the limitations of what Shiely can pump out, Mr. Nelson said this would clearly require an amendment to the DNR permit. He said the Director of the Division of Waters has reviewed the situation and indicated that this is an appropriate modification, there is no restriction on issuing the permit. Mr. Nelson showed a graph of past pumping with future pumping and the net discharge to the ditch. In response to a question regarding assumptions on the impact to the Savage Fen, Mr. Nelson said they looked very hard but could not find any evidence that there was no connection across the buried bedrock valley. He said that all indications are that there is a continuous aquifer and there is not a significant restriction in flow. Official Proceedings of the October 7, 1997 Shakopee City Council Page -11- A discussion ensued regarding nitrate levels. Mr. Nelson said the Department of Health was contacted and Shiely pumps lower nitrate levels than the City. He said the well head protection areas do not significantly change, and he does not feel there is a case to be made. He said what will decide the issue is to start the project and monitor as necessary to validate or invalidate the models. Dave Dzaja, 5262 Eagle Creek Blvd., approached the podium and read a statement regarding the preservation of the community's water supply. He said the quality and quantify of the water supply must be safeguarded. He said when it comes to water preservation the future of the water supply must be insured so as not be compromised. He said monitoring will lead to the degradation of the supply as standards are nebulous. He said subtle changes have likely occurred which have not been identified, when the water table is depleted. He asked for support for an EIS to assure abundance and the quality of water is retained. Art Bannerman, 1708 12th Avenue W, approached the podium and said the presentation from Shiely seemed to show benefits to them and not the residents of Shakopee. He urged that the EIS be required or delayed while studying the reasons for or against the EIS, or to completely deny the permit. He said there are a lot of unanswered questions about the quality of water and the quantity being dumped into the river. Larry Samsted, Lower Minnesota Watershed District Engineer, approached the podium and said he was not going to speak for or against the EIS. He said the managers have been aware of this situation and that the responsibility for the CUP is the Council's. He said if the Council wished to contact the District or himself, they would be happy to provide any information to help the Council's decisions, upon request. Mr. Samsted said the Savage Fen area will be managed by the DNR and are now in meetings on how to manage the Savage Fen. He said if this affects the Fen in any way there might be some relationship that the Council may want to look at. There are similar management plans for Eagle Creek and Boiling Springs. He said the southwest area ground water group from the Metropolitan Council is meeting on a regular basis and are trying to put together all of the hard data regarding water in the Jordan and the Prairie deChien and various water areas in the southwest area so that good decisions can be made as to how to use that water. He said the City may want to tap into this source. He said if there is anything the Watershed District can do to help, the managers will be happy to work with staff. David Dunning, Superior Minerals Company, approached the podium and said that Superior is highly dependent on the continuation of Shiely's mining permit and its associated business, as is Certainteed on the mineral filler which they manufacture for their use. He said this supply arrangement would have a negative impact on Certainteed and Superior Minerals. He said Shiely Official Proceedings of the October 7, 1997 Shakopee City Council Page -12- has always operated with diligence toward his people and the environment, and have made a significant investment in the Shakopee quarry. He urged to keep them running as it would be a positive outcome for a lot of other industries and people. Heidi Graf, 5310 Eagle Creek Blvd., approached the podium and said the scope of the project is overwhelming. She said she looked critically at the evidence presented and stated that Shiely has done an exceptional job in presenting a lot of information. She questioned the usefulness and validity of the DNR studies which cover no more than one year. She said these studies are inadequate to look at the environmental impacts that may occur in the future. Joe Zak, Dean's Lake, approached the podium and said he had no opposition to Shiely. He said his problem is with the amount of water going into the Minnesota River. He discussed population increases, the number of new wells planned, the depth of wells, and the useless by-product going into the river. He said he would be happier with the proposal if there were some type of reclamation. He said an EIS should be the next step. Bob DeGroot, Valley Green Business Park, Engineer/Geologist, approached the podium and commented on areas of concern for the EAW. He said his initial calculations showed a four percent increase in mining for a 30 year period. He said the database needs clarification. In issues of ground water withdrawal, he said he had a problem with ground water being removed and discharged as surface water as being the same. He said it is different because it becomes aerated and because of chemistry changes. In terms of the modeling, he said modeling is a database that needs to be manipulated in ways that it can be presented in an understandable manner. The condition of the shallow ground water table also raises concerns about the fmal elevations and the effect on new development. Mr. DeGroot mentioned water infiltration and withdrawal and said the surface water conditions have not been addressed. He said capture zones are marginal in terms of water quality and are close or have exceeded nitrate levels and said this issue needs to be addressed. Mr. DeGroot said the infiltration lake that is being created is essentially a non-regulated entity that will be used for disposal of cuttings from the operations of the site. There is no need for an MPES permit, however, it will be in direct contact with the ground water system. He said he had concerns as to whether or not there are sufficient regulatory standards in place since there is no MPES permit. There will be imported material to the site and granular materials as quality fill material for construction are removed, materials not acceptable are brought back to the site. He raised a quality control issue for the material being returned to the site. Materials considered waste are also stored on site and are potential sources which need to be assessed and reviewed since they have the potential of getting into the ground water system through infiltration. As far as the traffic study which extends to 2000, Mr. DeGroot said this was not adequate for the life of the site. A discussion ensued as to the amount of water used by other companies. Official Proceedings of the October 7, 1997 Shakopee City Council Page -13- Cncl. Zorn stated that too many questions have surfaced that need to be addressed. Zorn/DuBois moved to declare the insufficiency of the EAW, ordering the preparation of an EIS, and directing staff to prepare a resolution consistent with that declaration for approval at the Council's October 21, 1997, meeting. Motion carried unanimously. Sweeney/Zorn offered Resolution No. 4762, a Resolution Amending Resolution No. 4086, A Resolution Approving the Preliminary Plat for the Meadows West, and the Final Plat for the Meadows West 1st Addition, and moved its adoption. (Motion carried under the Consent Agenda.) Sweeney/Zorn moved to authorize the appropriate City officials to refund $1,800 being held in escrow for a trail connection between Lots 16 and 17, Block 3, Meadows West 1st Addition, to Gold Nugget Development, Inc. (Motion carried under the Consent Agenda.) Sweeney/Zorn offered Resolution No. 4753, A Resolution of the City of Shakopee, Minnesota, Approving Premises Permits for the Fraternal Order of Eagles, and moved its adoption. (Motion carried under the Consent Agenda.) Sweeney/Zorn moved to authorize the City Clerk to advertise for vacancies to fill the Community Access Corporation Board of Directors, and Cable Advisory Commission. Names of candidates will be brought back to the Council for future action. (Motion carried under the Consent Agenda.) Sweeney/Zorn offered Resolution No. 4749, a Resolution Appointing Judges of Election and Establishing Compensation, and moved its adoption. (Motion carried under the Consent Agenda.) Sweeney/Zorn moved to authorize payment to EnviroBate Metro in the amount of $840. (Motion carried under the Consent Agenda.) Sweeney/Zorn offered Resolution No. 4764, A Resolution of the City of Shakopee, Minnesota, Approving Premises Permit for Shako-Valley Amateur Hockey Association, and moved its adoption. (Motion carried under the Consent Agenda.) Mark McNeill explained that the residential parking designation for residents around the courthouse was reviewed with the neighborhood in July. He said a recent survey of the 200 block of West Fifth Avenue resulted in responses in favor from one of the five property owners for parking permits. Limitations would be a permit for 8:00 to 4:30, Monday through Friday for permanent residents. Guest permits would also be available. He said this is a temporary solution and would cease with the completion of the courthouse construction project. Official Proceedings of the October 7, 1997 Shakopee City Council Page -14- A discussion ensued regarding concern for setting precedence for resident parking in the Government Center area and the potential for additional requests. Staff was directed to discuss the parking problem further with the County. Zorn/Sweeney moved to table residential parking designation in the 200 block of West 5th Avenue. Motion carried unanimously. Zorn/Sweeney moved to adjourn to Tuesday, October 21, 1997, at 7:00 P.M. The meeting was adjourned at 11:58 P.M. S. Cox Clerk Esther TenEyck Recording Secretary 1 /0 CONSENT CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director RE: City Bill List DATE: October 30, 1997 Introduction and Background Attached is a print out showing the division budget status for 1997 based on data entered as of 10/30/97 . Also attached is a regular council bill list for invoices processed to date for council approval . Included in the check list but under the control of the EDA are checks for the EDA General Fund (code 0191-xxxx) and Blocks 3&4 (code 9447-xxxx) in the amount of $1, 895 . 00 . Action Requested Move to approve the bills in the amount of $564, 943 . 07 . CITY OF SHAKOPEE EXPENSES BY DEPARTMENT 10/30/97 CURRENT YEAR ANNUAL MONTH TO PERCENT DEPT DEPT NAME BUDGET ACTUAL DATE EXPENDED 11 MAYOR & COUNCIL 89,410 9,994 45,516 S1 12 CITY ADMINISTRATOR 249,980 17,487 144,399 58 13 CITY CLERK 170,090 15,438 128,998 76 15 FINANCE 329,150 24,012 250,313 76 16 LEGAL COUNSEL 217,320 13,313 125,440 58 17 COMMUNITY DEVELOPMENT 451,290 47,767 322,463 71 18 GENERAL GOVERNMENT BUILDINGS 176,740 8,711 113,015 64 31 POLICE 1,744,470 168,827 1,398,824 80 32 FIRE 463,690 69,489 336,375 73 33 INSPECTION-BLDG-PLMBG-HTG 250,720 23,439 194,183 77 41 ENGINEERING 425,780 38,579 292,147 69 42 STREET MAINTENANCE 781,860 39,887 547,384 70 • 44 SHOP 127,390 21,113 102,955 81 46 PARK MAINTENANCE 356,460 31,529 245,395 69 91 UNALLOCATED 1,431,387 703 1,018,699 71 TOTAL GENERAL FUND 7,265,737 530,288 5,266,107 72 17 COMMUNITY DEVELOPMENT 496,770 26,479 341,313 69 TOTAL TRANSIT 496,770 26,479 341,313 69 19 EDA140,580 6,749 86,496 62 TOTAL EDA 140,580 6,749 86,496 62 f H (1) < 01 Ai a 000000 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 X a w 0 Ca aE D z 0 z W HO1 U 0 0 Cs CO H N M V•U1 LD Cs N d• L0 01 .-1 01 0 0 H O 0 0 0 0 0 0 0 O1 eN V• Ln CO ul LO 0 NL 10 H N H •, CO CO CO CO CO CO CO 0 M t1• N H O H 0 CO ClL01 d• CO 01 CO •Z C•d•d•d•W d• C. 01 M 0 Cs Ln V•V• 0 d• O L M d• LO d• H 0 0 0 0 0 0 0 L0 CO 01 CO 0 01 01 N 0 N 0 Cs 0 N 0 0 0 0 0 0 0 0 H LO N C C• NCO H 0 0 H 01 0 H 0 H H H HHH 0 0 0 0 0 0 0 0 0 0 0 0 0 LC) 0 LC) E N N N N N N H H d• M H H d•C H H H et• H M H H Z MM MM MM M N N N N M LO LO M M N N N v N N 0 W v C'W C a•d• d• a• W a• d• d• H H d' et• C v d• d• N V• OM . 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NN m0 H w .7 N N H 3t 3t 3t 3t it 3t 3t 3t 3t 3t it 3t it 3t 2 A A A A A A A A A A A A A A D Z Z Z Z Z Z Z Z Z Z Z Z Z Z O A A a A a A A A A a A A A A U Cs. Cr. Cr. Cr. Cr. Cr. Cr. Cr. Cr. Cr. Cs. Cr. Cr. Cr. J.2 I '3 CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: East Dean Lake Collector Street Utilities, and Appurtenant Work Public Hearing -Project No. 1997-4 DATE: November 5, 1997 INTRODUCTION: Attached is Resolution No. 4785, a resolution ordering an improvement and the preparation of plans and specifications for Project No. 1997-4, East Dean Lake collector street&utilities within the approved East Dean Lake P.U.D. BACKGROUND: On July 1, 1997, City Council ordered the preparation of a feasibility report for the East Dean Lake collector street, utilities and appurtenant work. On October 7, 1997, the City Council adopted Resolution No. 4765, which received the feasibility report and called for a public hearing on this project for November 5, 1997. This project was initiated by petition from three major property owners that control the majority of the development area in the East Dean Lake area. These property owners are as follows: • Valley Green Business Park • Shakopee Crossing Limited Partnership • Minneapolis Foundation The other property owner affected by the proposed project is Mn/DOT which owns approximately 52 acres acquired during T.H. 169 right-of-way acquisition. The improvements in this project include trunk sanitary sewer, trunk watermain, storm sewer, sidewalk, bituminous trail, landscaping, collector street and appurtenant work. This report was prepared by WSB & Associates and a presentation on the feasibility report will be given at the public hearing. STAFF WOULD REQUEST THAT COUNCIL BRING THEIR FEASIBILITY REPORT FROM THE OCTOBER 71 1997 COUNCIL PACKET TO THE MEETING. At the conclusion of the public hearing, if the City Council determines that this project should be constructed, Resolution No. 4785 is attached which orders plans and specifications prepared for the project. The main issues associated with this project can be summarized as follows: • City financing of a$6,000,000 project for development by Special Assessments. • Trunk sanitary sewer oversizing cost reimbursement. • Funding of bituminous trail. • Stormwater oversizing of facilities and reimbursement to developers. • Street collector funding. • Future County road costs to City. On Issue No. 1, the issue of City financing, the Finance Director has stated that the project amount will not affect the City's credit rating according to the City's bond consultant. The amount of security from the developers to guarantee the payment of assessments may need to be higher than past projects with developers. The standard letter of credit percentage in past developer agreements has been 25% of the estimated total assessment. Finance is recommending between 50% and 100% of the estimated total assessment amount be used for the letter of credit amount on this project. Finance is also reviewing the term of assessment for developer projects. Some cities will set the term at 5 years for development while the City of Shakopee is at 10 years for assessment term. Council should provide direction on the letter of credit amount and term of assessment for this project. On Issue No. 2, staff recommends a rerouting of sanitary sewer area through the East Dean Lake sewer, to reduce trunk sanitary sewer costs in this area and to allow the commercial area to the east to develop without having to extend the East Industrial Park trunk sanitary sewer. This item was discuss at the October 7, 1997 Council meeting and by rerouting the service area, it is estimated that $183,000.00 of savings to the City's Trunk Sanitary Sewer fund could be realized. On Issue No. 3, the City Policy is for the City to pay for bituminous trails along collector streets. The feasibility report is proposing to pay for the construction cost only for the trail along the street collector as the engineering cost to design the trail is minimal. On Issue No. 4, storm water oversizing is necessary to accommodate the Dean Lake bypass channel to promote the water quality of Dean Lake in the ultimate design of the Prior Lake-Spring Lake Watershed District channel. Staff has met with representatives of the PLSLWD, Lower Minnesota River Watershed District and the developers on a cost sharing arrangement for the bypass facility. Although there is no agreement as yet, all parties have indicated a willingness to participate to some level in order to preserve Dean Lake. Staff would recommend further meetings to complete the negotiations on funding. The cost participation agreement can be completed during the design of the project and brought back for Council authorization at a later date. By ordering the project at this time does not commit the City in constructing the East Dean Lake bypass channel as proposed since the City Council still has to approved the plans and specifications. Staff believes a cost sharing agreement can be accomplished within the design phase. On Issue No. 5, the developer have indicated and stated that they are paying 100% of the costs to install the street collector. In the current city Policy, the City would pay for the oversizing and extra pavement section depth costs from a local street to a collector street, thus this development is providing cost savings to the City's Capital Improvement Fund by constructing this collector. On Issue No. 6, an attached letter has been received from Scott County that indicates the City participation on future CSAH 21 roadway extension. The City's cost participation of $225,000.00 is a very preliminary estimate and will depend on the actual quantities and cost. The City's participating items for a rural highway section would be for city improvements such as bituminous trail or concrete sidewalk and traffic control signals. An attached memo from Bret Weiss of WSB & Associates, Inc. provides further information on Scott County Policies for Cost Participation adjacent to the East Dean Lake Collector Road. Mr. Weiss's memo indicates that the County is planning on a high speed rural highway and the City costs are much lower with this type of roadway. One other item should be pointed out is that the County has not addressed all of the funding issues for the construction of CR 21 and the actual date of construction could vary from the date identified in the Scott County CIP. This project is for the street collector and utilities to serve the proposed East Dean Lake development. At this time there is an approved P.U.D. and the developers are working towards a preliminary plat approval. The developers have verbally agreed to pay for all engineering costs on this proposed project and previously agreed to a letter of credit similar to past city projects prior to a developer's agreement being signed. Staff is recommending that the Council consider having these verbal agreements confirmed in writing with an agreement between the developers and the city for added protection of the city. This agreement is necessary due to the fact that the project schedule is ahead of the preliminary plat consideration schedule and an executed developer's agreement. With a developer's agreement, the security requirements are agreed to in writing and with an approved plat, the likelihood of the project moving forward increases substantially. If this project is ordered, staff is proposing to have WSB & Associates complete the design plans and specifications and also have this consultant handled the land acquisition and appraisal services needed to obtain the necessary right of way from MnDOT to construct the project. WSB & Associates, Inc. has done much of the preliminary engineering design and is best suited to complete the design. ALTERNATIVES: 1. Adopt Resolution No. 4785, which orders plans and specifications prepared for this project, as recommended by the feasibility report and as amended by City Council. 2. Determine that this project should not be constructed and deny Resolution No. 4785. 3. Continue the public hearing for additional comments from the public. 4. Table Resolution No. 4758 for additional information. 5. Authorize the appropriate City Officials to execute an extension agreement with WSB & Associates to provide consultant engineering design services, including right-of-way acquisition services. 6. Authorize the appropriate City Officials to enter into an agreement between the City and the Developers of the proposed East Dean Lake plat for the City costs including engineering, administration and legal costs on the East Dean Lake Collector Street project. 7. Determine the amount of financial security the developers must provide prior to a bid award for the East Dean Lake Collector Street project. 8. Do not authorize an agreement be prepared by the City Attorney. RECOMMENDATION: Staff recommends Alternative No. 1, to adopt Resolution No. 4785, ordering the preparation of plans and specifications for East Dean Lake Collector Street and Utilities within the East Dean Lake Planned Unit Development (P.U.D.), and Alternative No. 5, to authorize an extension agreement with WSB & Associates for engineering design services and Alternative No. 6 to have the City Attorney prepare an agreement with the developers on payment of the engineering, administation, and legal costs of this project and security requirements prior to a developer's agreement being executed. Also Alternative No. 7 is recommended for Council to determine the amount of financial security for the assessments on this project. ACTION REQUESTED: 1. Offer Resolution No. 4785, A Resolution Ordering the Improvement and Plans and Specifications for East Dean Lake Collector Street, Utilities and Appurtenant Work, Project No. 1997-4 and move it adoption. 2. Authorize the appropriate City Officials to execute an extension agreement with WSB &Associates to provide consultant engineering design services, including right-of-way acquisition services. 3. Authorize the appropriate City Officials to enter into an agreement between the City and the Developers of the proposed East Dean Lake plat for the City costs including engineering, administration and legal costs on the East Dean Lake Collector Street project. 4. Determine the amount of financial security the developers must provide prior to a bid award for the East Dean Lake Collector Street project. / :race Loney/ Public Works'2 erector Bl/pmp MEM4785 RESOLUTION NO. 4785 A Resolution Ordering An Improvement And Preparation Of Plans And Specifications For East Dean Lake Collector Street, Utilities, And Appurtenant Work Project No. 1997-4 WHEREAS, Resolution No. 4765 adopted on October 7, 1997, fixed a date for Council hearing on the proposed improvement of East Dean Lake, within the East Dean Lake Planned Unit Development(P.U.D.),by addition of a collector street,utilities and all other appurtenant work; and WHEREAS, ten days published notice of the hearing through two weekly publications of the required notice was given and the hearing was held on the 5th day of November, 1997, at which all persons desiring to be heard were given an opportunity to be heard. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE,MINNESOTA: 1. That the improvement is ordered as hereinafter described: • East Dean Lake within the East Dean Lake P.U.D. by addition of a collector street, sanitary sewer,watermain, storm sewer, sidewalk,bituminous trail,landscaping and all other appurtenant work. 2. Bruce Loney, Public Works Director, is hereby designated as the engineer for this improvement. He shall prepare plans and specifications for the making of such improvements. 3. The work of this project is hereby designated as part of the 1997-4 Public Improvement Program. Adopted in session of the City Council of the City of Shakopee, Minnesota,held this day of , 1997. Mayor of the City of Shakopee ATTEST: City Clerk - 350 Westwood Lake Office B.A.Mittelsteadt,P.E.Bret A.Weiss,P.E. $J? 8441 Wayzata Boulevard Minneapolis, MN 55426 Peter R.Willenbring,P.E. Donald W.Sterna,P.E. Ronald B.Bray,P.E. AIMINIMMIL 612-541-4800 &Associates,Inc. FAX 541-1700 October 31, 1997 Mr. Bruce Loney, P.E. Public Works Director/City Engineer City of Shakopee 129 Holmes Street South Shakopee, MN 55379-1376 Re: Estimate of Cost to Provide Engineering Services East Dean's Lake Collector WSB Project No. 1084.00 Dear Mr. Loney: According to our Agreement for Professional Services within the City of Shakopee and Section I-C-2 (Major Projects), this extension agreement is written to provide you with an estimate of cost for engineering services for the above-referenced project. We are proposing to complete the work,as detailed on the attached scope of services,Exhibit"A". The preliminary survey and landscape design services will be completed on a cost-reimbursable, not to exceed basis. The right-of-way acquisition will also be completed on a cost-reimbursable basis. We have provided a range for these services, which is based on the premise that an appraisal may not be needed. The remainder of the design project will be completed on a lump sum basis, with payments requested incrementally, dependent on the percentage of work complete. The attached work plan describes the approach and tasks proposed to be completed by WSB. It should be noted that the work plan includes preliminary surveying, right-of-way acquisition by Wilson Development Services, and landscape design by Dahlgren, Shardlow&Uban (DSU). Payment of services would be completed by the following schedule: Preliminary surveying and base map (cost-reimbursable, not to exceed) $15,000 Right-of-Way Acquisition(cost-reimbursable) $2,000 - $6,000 Landscape Design(cost-reimbursable, not to exceed) $30,000 Engineering Design Fee (lump sum) $165,000 Total $212,000-$216,000 It is proposed that all work under the lump sum contract would be considered complete after the preconstruction conference. The construction management phase would be initiated after the preconstruction conference. We are available to begin work plan as soon as authorized by the City and we anticipate to complete the project according to the following schedule, assuming that we receive the notice to proceed on November 5, 1997. Infrastructure Engineers Planners FIHPW11911084.001103197.b11 EQUAL OPPORTUNITY EMPLOYER Mr. Bruce Loney, P.E. Public Works Director/City Engineer City of Shakopee Shakopee, MN October 31, 1997 Page 2 We would propose to complete the project according to a tentative schedule noted as follows: Public hearing November 5, 1997 Order plans and specs November 5, 1997 Receive plans and specs/Order ad for bid January 20, 1998 Receive bids February 20, 1998 Award contract March 3, 1998 Begin construction April 1, 1998 Substantial construction completion Fall, 1998 The City of Shakopee agrees to reimburse WSB & Associates for these services in accordance with Section IV ofthe Agreement for Professional Services. Ifthis agreement meets with your approval,please sign below and return one copy to our office. Sincerely, WSB &Associates,Inc. Emit- : Bret A. Weiss, P.E. City Administrator Vice President City Clerk Mayor Date nm F:I WPWJM/084.001103197.b/2 Exhibit A East Dean's Lake Collector City of Shakopee, MN WSB Project No. 1084.00 WORK PLAN • Project Management This task includes planning and coordination of all work tasks, establishment and monitoring of budgets, and correspondence with the City of Shakopee on a periodic basis. The project manager will provide technical direction on all aspects of the project,review all work products,and prepare monthly progress reports. The project manager will serve a primary role in the many design considerations. • Data Collection All available data will be collected from the City, Scott County, Mn/DOT, and private utility companies,as necessary,to prepare the construction documents. • Surveys/Base Mapping Base mapping will be developed, using information available from the Scott County/City of Shakopee. This information will be supplemented with field surveys for topographic features, elevation control,and specific utility location. Horizontal control will be tied into the Scott County Coordinate System. Vertical control will be tied into existing elevations established by the City of Shakopee/Scott County in the project vicinity. Field surveying will be completed to acquire additional critical design information not available on the topographic mapping and cross-sections on 100-foot intervals throughout the areas anticipated to be disturbed and graded. • Soils Report This task has been previously completed during the feasibility report phase. • Right-of-Way Acquisition We have included the services of Wilson Development Services to complete the right-of-way acquisition through the Mn/DOT parcel. Wilson will coordinate the process and will complete the appraisals,ifnecessary,and then will move forward with the acquisition after receiving City Council authorization. No other parcels are anticipated to be acquired. • Construction Plans/Bidding Documents The construction plans/bidding documents phase includes the bulk of our effort on the project. Some of the activities associated with this phase and included in the project fee are as follows: Description of the Project It is our understanding that the project, as outlined in the feasibility report, includes the following activities: 1 F.IWPWIM1084.001exh-a Exhibit A East Dean's Lake Collector City of Shakopee, MN WSB Project No. 1084.00 • Surface improvements including all street-related issues • Landscaping for the median and boulevards • Irrigation of the median landscaping • Sanitary sewer • Watermain • Storm sewer(including the proposed Dean's Lake Bypass) • Street lighting(to be coordinated with SPUC) • Temporary signal system Watermain will be replaced along all reconstructed streets and the sanitary sewer will be replaced as necessary. Final Design This phase will include the development of bidding documents as necessary to facilitate construction, as well as receive the necessary agency approvals. Preparation of these documents includes, but is not limited to,the following tasks: - Preparation of cross-sections at 100-foot intervals - 50-scale (English units) plan and profile sheets for street construction, sanitary sewer and watermain construction, and new storm sewer construction. - Erosion control/landscaping/irrigation(median) - Traffic control/temporary signal - Specification - WSB will utilize the standard City of Shakopee specification and details. Project specific items will be addressed in a special provision section, as well as a supplementary general condition section. Storm Sewer Design/Analysis This project includes storm sewer improvements to address the Dean's Lake Bypass. The storm sewer design for the collector road will also incorporate the capacity necessary to serve the adjoining development parcels. • Permits All necessary permits will be acquired as a part of the construction plan preparation. The cost of the permits would be paid by the City of Shakopee. • Project Bidding Upon approval of the bidding documents by the City,WSB will distribute the necessary number of plan sets to the City for distribution. WSB will bill the City for the expenses of the plan printing. If requested, WSB will sell the plan sets to prospective bidders and will not refund that deposit to the unsuccessful bidders. In this case,the City would not be billed for the plan printing. 2 F:IWPWIM1O84.00Iexh-a Exhibit A East Dean's Lake Collector City of Shakopee, MN WSB Project No. 1084.00 • Construction Management/Observation This will be addressed at the time the project is awarded. • Record Drawings These will be completed on a cost-reimbursable basis upon completion of the project. 3 F:IWPWIMI084.00Iexh-a - 350 Westwood Lake Office B.A.Mittelsteadt,P.E.Bret A.Weiss,P.E. J4(,5'B 8441 Wayzata Boulevard Minneapolis, MN 55426 Peter R.Willenbring,P.E. Donald W.Sterna,P.E. Ronald B.Bray,P.E. --11L 612-541-4800 &Associates,Inc. FAX 541-1700 Memorandum To: Mr. Bruce Loney,P.E. Public Works Director City of Shakopee From: Bret A. Weiss, P.E. (ZAk WSB&Associates,Inc. Date: October 31, 1997 Re: Scott County Policies for Cost Participation East Dean's Lake Collector Road WSB Project No. 1084.00 The East Dean's Lake development area is bounded on the south and east sides by future Scott County Road(CR) 21. When the East Dean's Lake collector road feasibility report was presented to the Council, Councilor Sweeney questioned the magnitude of the potential City participation in the proposed CR 21 improvement project. Accordingly, we contacted Scott Merkley with Scott County and asked him to prepare a letter regarding that very issue. That letter is attached in your packet of information,however,Scott also related some other issues to me with regard to the CR 21 project. Scott stated that while the CR 21 project is in the five-year CIP, all of the funding issues have not been addressed adequately to start the environmental process at this time. Consequently, the actual schedule for construction of CR 21 between CSAH 16 and TH 169 could vary from the date identified in the Scott County CIP and referenced in the feasibility report. Scott's letter addresses the typical cost participation that has been completed on previous projects between the City and County and does not look at specific costs related to this project. As a supplement to Scott's letter, I have attached the County's policies for cost participation with municipalities. This letter will attempt to briefly summarize the typical cost participation issues associated with County road construction within municipalities located in Scott County. It should be noted that Scott County is considering CR 21 to be a high speed rural section similar to a freeway type section. The basic premise behind the County's cost participation agreement is that the County will pay for costs associated with County needs and the City will pay for costs associated with local needs. Following are issues typically considered for participation by the County. F:I WPWIM 1084.001103197.bI Infrastructure Engineers Planners EQUAL OPPORTUNITY EMPLOYER • Mr. Bruce Loney,P.E. Shakopee Public Works Director City of Shakopee October 31, 1997 Page 2 • Right-of-Way: Only considered for parking lanes requested by the City. Not applicable on this project. • Pavement Surfacing: Only considered for parking lanes requested by the City.Not applicable to this project. • Storm Sewer: The County will pick up 50% of catch basins and leads at the curb returns and side streets. CR 21 is currently proposed to be a rural section,which should involve minimal storm sewer and thereby,minimal cost participation by to the City. • Sidewalk: This project should not include any sidewalk as it is in a rural section of the City and is a high speed roadway. • Concrete Curb & Gutter: Once again, being a rural design section, this is not anticipated to be included in the design. However, on occasion, the County does incorporate sidewalk in certain areas in an effort to minimize land acquisition or control drainage issues. In this instance,the City is responsible for 50%of the cost. • Concrete Driveway Entrances: None are anticipated on this project. • Utility Relocation: There are currently not any city utilities that would be affected in the project limits so this issue is not applicable. • Signals: This has been addressed in the feasibility report. The County typically pays for the number of legs of the connecting roadways on their system and the other jurisdictional units pay for the number of roadway legs on their system. Temporary signals are currently paid 100% by the City or developer who requests their installation. • Street Lights: The County currently does not pay for any street lights and is a full City participation. • Bike Paths: Because this project has been identified as a rural high speed road,it is likely that the Class 1 bike path would be the only type allowed on this facility. Class 1 bike path is completely separated from the roadway. In this instance, the County typically pays for 25%of the pathway,and the City would be responsible for the remaining 75%. F:I WPWIM 1084.001103197.bl Mr. Bruce Loney,P.E. Shakopee Public Works Director City of Shakopee October 31, 1997 Page 3 • Bike Signing: The County picks 100%of this cost. • Engineering: This is subject to negotiation between the City and County. As you can see from the cost participation policy,some of the items are outside of the City's control, however, in this case, considering a rural high speed roadway,the City's cost participation should be minimal. Scott has provided us with a general idea of what the cost may be,however,it is likely it could be much less,depending on what the City actually decides to install within the County right- of-way. I hope this addresses the Council's questions on this issue. If I can add any more clarification,please do not hesitate to contact me at 541-4800. nm/lv F:I WPWIM 1084.001103197.bl OCT-30-97 THU 11 :06 P. 01 SCOTT COUNTY #111 PUBLIC WORKS AND LANDS DIVISION HIGHWAY DEPARTMENT 600 COUNTRY TRAIL EAST JORDAN,MN 55352-9339 (612)496-8346 BRADLEY J. LARSON Fax: (612)496-8365 ASSOCIATE ADMINISTRATOR . , . Post-it"Fax Note 7671 Date 101 6 1paas► a) To i„ i From i �J�„�--it October 29, 1997 Co.roept. Co. �. Phone” Phone" Fax" 995-191/6) Fax$ Rich Schindler WSB & Assoc., Inc. 350 Westwood Lake Office 8441 Wayzata Blvd. Minneapolis, MN 55426 Subject: CP 91-21-03 County Road 21 Construction between CSAH 42 &TH 169 Dear Mr. Schindler: As you indicated in our phone conversation, you are working for the City of Shakopee and requested City cost information for future construction of CR 21 in northern Shakopee. The total project area is between CSAH 42 and TH 169. Scott County is planning to divide this into two projects. The initial project is planned from TH 169 to CSAH 16, and is currently budgeted in the 5-Year Capital Improvement Program. It should be noted that an Environmental Impact Statement (EIS) is required for these projects and that study has not been authorized to commence. The typical section planned for CR 21 is a high speed rural section similar to the freeway type of section that was recently completed on the northerly portion of CR 18 north of CSAH 16 connecting to TH 169. With a rural section the City cost participation is minimized as outlined in our Cost Participation Policy, which was previously sent to you. Below are costs from recent projects and a very preliminary estimate for CR 21 between TH 169 and CSAH 16. R t`c* r� p }`131f�m���$N k"+'�' �rjRr{;t �cis N I+,ritlfr+T�5,4 '�'�D'S�l�Uvj 7 �,,, tI1 fM ki■K1 1 t(ti ES{diii� � 1¢AY�h S 1 > �qt a �t n 1 i f.. .�z: 9�t�r�1 a d,y..tkm: h ,t �. ,t t:v,,iAn�_ 1 tau' �' � ;.A.T:Si 11 �,la,t�!•t�ti'hrt,!„t,.+�, S�dvni.+s.a,rt , CSAH 42 CSAH 21/CSAH 18 aural 1.77 $1.,700 Q00 7 $200,000 ;CSAH 18CSAH 4211:9;,1�' � j t,l,,,;: t. �iiN, l,'„f1�% �b,1 o.1oQ,5�.:,,;M,,;'� �;,,,„ ,,';fit `f ��,��t,t ,,, ��. ... �u u`.. .t•: ::�, ;, +�, CSAH 21 CSAH 16/TH 169 Rural 1.5 $1,500,000 10 $225,000 NOTE: Costs shown for CSAH 21 are preliminary and for planning purposes only, Actual quantities and costs will determined at the time of project design. An Equal Opportunity/Safety Aware Employer OCT-30-97 THU 11 :06 P. 02 Rich Schindler CP 91-21-03, CR 21 Construction Page 2 This information is based upon past project cost information and the current design anticipated and is subject to change. I hope this provides you with the data you need. Please call us if you need additional information. Sincerely, Scott M. Merkley Transportation Planning Manager SM C; ruce Loney, Shakopee City Engineer jf-w:\word\project\91-21-03Vetters.doc a sia i CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill,City Administrator FROM: Judith S. Cox,City Clerk SUBJECT: 1998 Currency Exchange Licenses DATE: October 21, 1997 INTRODUCTION& BACKGROUND: The City has received applications for renewal of a currency exchange license from: DRM LLC of Shakopee dba American Pawnbrokers, Inc.; Shakopee Check Cashing; and Game Financial Corporation. You may remember that the City has previously approved licenses for these applicants. The licenses are ultimately issued by the State of Minnesota. Current law requires that the local municipality approve or deny the issuance of a license, after published notice and a public hearing. The applicants have provided the State with the required $10,000.00 Currency Exchange Surety Bond. The Chief of Police has advised me that he is unaware of any reason for the City of Shakopee to object to the granting of a currency exchange license to these applicants. RECOMMENDED ACTION: 1. Offer Resolution No. 4784, A Resolution Approving the Application of DRM LLC of Shakopee dba American Pawnbrokers, Inc. for a Currency Exchange License at 450 West First Avenue, and move its adoption. 2. Offer Resolution No. 4783, A Resolution Approving the Application of Game Financial Corporation for a Currency Exchange License at 1100 Canterbury Road, and move its adoption. 3. Offer Resolution No. 4782, A Resolution Approving the Application of Shakopee Check Cashing for a Currency Exchange License at 1147 Canterbury Road, and move its adoption. uJAtt , ) . J di S. Cox JSC/tiv RESOLUTION NO. 4784 A RESOLUTION OF THE CITY OF SHAKOPEE,MINNESOTA,APPROVING THE APPLICATION OF DRM LLC OF SHAKOPEE dba AMERICAN PAWNBROKERS FOR A CURRENCY EXCHANGE LICENSE AT 450 WEST FIRST AVENUE WHEREAS, in 1992 Minnesota Statute Section 53A.04 was amended to require a City to approve or disapprove of a proposed currency exchange license; and WHEREAS, DRM LLC of Shakopee DBA American Pawnbrokers applied for a currency exchange license for a location at 450 West First Avenue;and WHEREAS, the City has given published notice of its intention to consider this issue, has solicited testimony from interested persons, and finds that the application should be approved. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, AS FOLLOWS: That the City approves the granting of a currency exchange license to DRM LLC of Shakopee DBA American Pawnbrokers at its location at 450 West First Avenue. Adopted in Session of the City Council of the City of Shakopee, Minnesota, held this day of , 1997. Mayor of the City of Shakopee ATTEST: City Clerk RESOLUTION NO. 4783 A RESOLUTION OF THE CITY OF SHAKOPEE,MINNESOTA,APPROVING THE APPLICATION OF GAME FINANCIAL CORP. FOR A CURRENCY EXCHANGE LICENSE AT 1100 CANTERBURY ROAD WHEREAS, in 1992 Minnesota Statute Section 53A.04 was amended to require a City to approve or disapprove of a proposed currency exchange license; and WHEREAS, Game Financial Corp. applied for a currency exchange license for a location at 1100 Canterbury Road; and WHEREAS, the City has given published notice of its intention to consider this issue, has solicited testimony from interested persons, and finds that the application should be approved. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, AS FOLLOWS: That the City approves the granting of a currency exchange license to Game Financial Corp. at its location at 1100 Canterbury Road. Adopted in Session of the City Council of the City of Shakopee, Minnesota, held this day of , 1997. Mayor of the City of Shakopee ATTEST: City Clerk RESOLUTION NO. 4782 A RESOLUTION OF THE CITY OF SHAKOPEE,MINNESOTA,APPROVING THE APPLICATION OF SHAKOPEE CHECK CASHING FOR A CURRENCY EXCHANGE LICENSE AT 1147 CANTERBURY ROAD WHEREAS, in 1992 Minnesota Statute Section 53A.04 was amended to require a City to approve or disapprove of a proposed currency exchange license; and WHEREAS, Shakopee Check Cashing applied for a currency exchange license for a location at 1147 Canterbury Road; and WHEREAS, the City has given published notice of its intention to consider this issue, has solicited testimony from interested persons, and finds that the application should be approved. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, AS FOLLOWS: - That the City approves the granting of a currency exchange license to Shakopee Check Caching at its location at 1147 Canterbury Road. Adopted in Session of the City Council of the City of Shakopee, Minnesota, held this day of , 1997. Mayor of the City of Shakopee ATTEST: City Clerk 1� .c . CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Adopting Assessments for Sarazin Street/Roundhouse Street and 4th Avenue Improvements, Project No. 1994-10 DATE: November 5, 1997 INTRODUCTION: Attached is Resolution No. 4776, a resolution which adopts the assessments for the above referenced project. Also attached is Resolution No. 4787, a resolution adopting a corner lot adjustment assessment policy for multiple residential, commercial and industrial property. BACKGROUND: On October 21, 1997, City Council conducted a public hearing for the assessments on the Sarazin Street, Roundhouse Street and 4th Avenue Improvements, Project No. 1994-10. At this Council meeting, City Council passed a motion to continue the hearing to November 5, 1997 and provided staff with direction on finalizing the assessment roll prior to adoption. At this meeting, Council provided staff with direction to prepare a corner lot adjustment policy for multiple residential, commercial and industrial property and to bring this policy back for Council consideration. Staff also presented the Council with assessment adjustments that should be considered with this project and they are as follows: 1. Deferred assessment for Mr. & Mrs. Bill Hauer, as previously agreed to by the City Council on August 1, 1995. 2. Watermain footage adjustment for the Credit River PACT Limited Partnership parcel. 3. Knights of Columbus sanitary sewer assessment at a 50% rate, due to the City's policy of replacing an individual private sewer line with a public sewer main. The 50% reduction will be funded by the Sanitary Sewer Fund. 4. Corner lot adjustments for street and sidewalk footages. 5. A reduction in the sanitary sewer assessment to Outlot E in Prairie Bend due to this property having been assessed for sanitary sewer lateral benefit on the C.R. 16 sewer and water project. This reduction is reapportioned to the other benefited properties. 6. A reapportionment of assessments on Klingelhutz development property, in order to fund a shortfall in escrow holding for assessments. 7. Trunk Water Charge corrections on Universal Wood Products and Viking Steel Products properties. Attached to this memorandum is a memo on a corner lot adjustment assessment policy, to be used on parcels that are not single family residential homes or twin homes. For this project area, the property zoning at the corner intersections is high density residential or commercial property. Staff is proposing to provide a corner lot adjustment when the front footage assessment method is utilized based upon the setback of the property. This policy is similar to other surrounding Cities, which allow a slight adjustment of footage for corner lots, recognizing also that corner lots of large industrial, commercial, and multiple residential property have an inherent higher value due to higher visibility and multiple accesses on both streets. The assessment roll that is attached for Council consideration and adoption has the corner lot adjustment applied to this project. Staff would recommend that if Council agrees with this policy, to adopt this policy before adopting the assessment roll. The assessment roll that has been prepared and included for Council review does have the deferred assessment indicated for Mr. & Mrs. Bill Hauer. Resolution No. 4776 contains language on deferred assessments and outlines the terms of the deferment. The deferment for the Hauers as recommended by the Finance Department is 10 years from the date of adoption of Resolution No. 4776 or sale, development, subdividing or other change in the use of the parcel. The assessment roll is attached for Council review and adoption and includes the revisions as mentioned in this memo except for reapportionment of Klingelhutz assessment. Staff has not receive approval from Mr. Klingelhutz or his attorney on reapportioning the assessment on Prairie Bend 1st Addition to property known as Outlet E in Prairie Bend 2nd Addition. The reapportionment of assessments would allow the developer to fund a shortfall of escrow funds for the assessments in Prairie Bend 1st Addition by shifting the shortfall amount to property yet to be developed. Discussions have occurred with Klingelhutz representatives on this issue with favorable responses, however, no agreement has been reached by the writing of this memo. The assessment roll attached for Council consideration for adoption does not have any reapportionment on Klingelhutz property as the developer has not responded to what amount to reapportion or agreed to not contest the assessment amounts. After adoption of the assessment roll, there is a 30 day period before the assessments are certified to the County. It would be possible to reapportion the assessments before certification if approved by Council. If an agreement is reached before the Council meeting, staff would placed a revised assessment roll on the table. ALTERNATIVES: 1. Adopt Resolution No. 4787, a resolution adopting a corner lot adjustment assessment policy for multiple residential, commercial and industrial property as attached or as modified by City Council. 2. Deny Resolution No. 4787. 3. Adopt Resolution No. 4776, a resolution adopting assessments, as attached or as modified by City Council. 4. Deny Resolution No. 4776 and direct staff to re-schedule a new public hearing. 5. Table for additional information. 6. Continue the public hearing, if additional public input is necessary. RECOMMENDATION: Staff recommends adopting Resolution No. 4787, a resolution adopting a corner lot adjustment assessment policy for multiple residential, commercial and industrial property. Staff also recommends adopting Resolution No. 4776, a resolution adopting assessments so that the assessments can be certified to Scott County before November 30, 1997. ACTION REQUESTED: 1. Offer Resolution No. 4787, A Resolution Adopting a Corner Lot Adjustment Assessment Policy for Multiple Residential, Commercial and Industrial Property and move its adoption. 2. Offer Resolution No. 4776, A Resolution Adopting Assessments for Sarazin Street, Between 4th Avenue and County Road 16; Roundhouse Street, Between 4th Avenue and County Road 16; and 4th Avenue, between Shawnee Trail and Sarazin Street, Project No. 1994-10 and move its adoption. it/rice Loney Public Works Di ctor BL/pmp ME4776 RESOLUTION NO. 4776 A Resolution Adopting Assessments For Sarazin Street, Between 4th Avenue and County Road 16; Roundhouse Street, Between 4th Avenue And County Road 16; And 4th Avenue, Between Shawnee Trail And Sarazin Street Project No. 1994-10 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: Improvement of Sarazin Street and Roundhouse Street, between 4th Avenue and County Road 16 by street, sanitary sewer, watermain, storm sewer and sidewalks and construction of sanitary sewer and watermain on 4th Avenue,between Shawnee Trail and Sarazin Street 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 benefited 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, 1998, and shall bear interest at the rate of 6.25 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, 1998 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. 5. Assessments so marked on the assessment roll shall be deferred for the earlier of; 10 years from the date of adoption of this resolution or sale, development, subdividing or other change in the use of the parcel. Interest shall accrue during the deferral period at the rate stated in this resolution. Deferred interest shall be added to the principal and spread over 10 years. Adopted in session of the City Council of the City of Shakopee,Minnesota,held this day of , 1997. Mayor of the City of Shakopee ATTEST: City Clerk CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: John DeLacey, Engineering Technician III SUBJECT: Assessment Policy Revisions DATE: October 29, 1997 INTRODUCTION: Attached is Resolution No. 4787, a resolution amending the Special Assessment Policy for Corner Lot Adjustment. BACKGROUND: At the October 21, 1997 City Council meeting, direction was given to staff to revise the Corner Lot Adjustment portion of the Special Assessment Policy to address the benefit differences between Single/Twin Family Residential and Commercial, Industrial and Multi-Family Properties. The current policy states: "Corner lots will only be assessed at a rate of 50% of the unit rate for the short side of the lot in question for each street improved". This policy is intended for Single Family Residential property and staff is not recommending any changes for Single/Twin Family Corner Lot Adjustment. Staff does feel that there is benefit to owning a corner lot for Commercial, Industrial, and Multi- Family properties. Two of the larger benefits are high visibility and multiple accesses. Staff has contacted other cities regarding corner lot adjustments for Commercial, Industrial and Multi- Family properties and has concluded that a corner lot adjustment utilizing the setback distance for that particular zoned property would be appropriate. Staff is therefore recommending the following modification to the attached existing Corner Lot Adjustment (Section C, Page 9) of the Special Assessment Policy. 1. Modify Paragraph C — Property zoned as Single/Twin. Family corner lots will only be assessed at a rate of 50% of the unit rate for the short side of the lot in question for each street improved. If both streets are improved simultaneously, 100% of the short side footage will be used. Property zoned as Commercial, Industrial and Multi-Family will be assessed at the unit rate for the side of the lot in question minus the front yard setback distance as stated for said property in Chapter 11 of the City of Shakopee Code. ALTERNATIVES: 1. Adopt Resolution No. 4787, A Resolution Amending the Special Assessment Policy. 2. Deny Resolution No. 4787, A Resolution Amending the Special Assessment Policy. 3. Modify and adopt Resolution No. 4787, A Resolution Amending the Special Assessment Policy 4. Table for additional information from staff. RECOMMENDATION: Staff recommends alternative No. 1. ACTION REQUESTED: Offer Resolution 4787, A Resolution Amending the Special Assessment Policy with regards to Corner Lot Adjustment and move its adoption. John De acey / Engineering Tech. III RESOLUTION NO. 4787 A RESOLUTION AMENDING THE SPECIAL ASSESSMENT POLICY WHEREAS, on January 19, 1992,the City Council of Shakopee adopted the Special Assessment Policy by Resolution No. 3735; and WHEREAS,the Special Assessment Policy was amended by Resolution No. 4637 on March 18, 1997; and WHEREAS,the City council desires to further amend the Special Assessment Policy. NOW, THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: The Special Assessment policy is hereby amended as follows: In Section VII, Paragraph 1.C. - Corner Lot Adjustment- Corner lots will only be assessed at a rate of 50%of the unit rate for the short side of the lot in question for each street improved. If both streets are improved simultaneously, 100% of the short side footage will be used. Will be deleted and replaced with: Corner Lot Adjustment- Property zoned as Single/Twin Family corner lots will only be assessed at a rate of 50% of the unit rate for the short side of the lot in question for each street improved. If both streets are improved simultaneously, 100%of the short side footage will be used. Property zoned as Commercial, Industrial and Multi-Family will be assessed at the unit rate for the side of the lot in question minus the front yard setback distance as stated for said property in Chapter 11 of the City of Shakopee Code. 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C J,tuieisi. zuf_-411J_(cltiQFz BLN OFFICE PARK,SUITE 170 2001 KILLEBREW DRIVE MINNEAPOLIS,MINNESOTA 55425-1822 TELEPHONE: (612) 854-7800 TELECOPIEF: (612) 854-0502 November 4, 1997 HAND DELIVERED Ms. Judith Cox, City Clerk City of Shakopee 129 Holmes Street South Shakopee, MN 55379 Re: Renewed and Restated Objections by Klingelhutz Development Company to Proposed Assessments on Project No. 1994-10 Our File No. 5446-9 Dear Ms. Cox: Pursuant to Minnesota Statutes § 429.061, enclosed for filing in connection with the above matter please find the Renewed and Restated Objections of Klingelhutz Development Company. S:ncer-ly, / C Jana K. Nyqui- - DKN:hlk Enclosure cc: Mr. Jim Heisel (w/encl. ) Mr. James J. Thomson (w/encl. ) RENEWED AND RESTATED OBJECTIONS OF KLINGELHUTZ DEVELOPMENT COMPANY TO PROPOSED ASSESSMENTS IN CONNECTION WITH PROJECT NO. 1994-10 This is to inform the City of Shakopee that Klingelhutz Development Company ("Klingelhutz") renews and restates its objections to the special assessments proposed by the City in connection with City Project No. 1994-10. The objections were originally filed with the City Clerk on October 17, 1997. The objections relate to all of the parcels that Klingelhutz owns or on which Klingelhutz is contractually responsible for payment of special assessments. The objections are as follows: 1. Based on Minnesota Statutes § 429. 031, subd. 1, the City is without jurisdiction to adopt the proposed special assessments. Errors in the Feasibility Report prepared for the project, which resulted in the City underestimating the cost of improvements by $966, 141. 37, materially prejudiced the interests of Klingelhutz . Therefore, all actions taken by the City in connection with the special assessments are invalid. The City was aware that its original estimate was substantially in error on or before April 4, 1995, when it received an initial bid for construction of the improvements. The City notified some owners about this problem. However, the City failed to notify Klingelhutz that this error would increase the assessments on Klingelhutz's property. In addition, on or before April 1, 1996, the City was aware that the assessments against Klingelhutz's property could increase as a result of a lawsuit commenced by Ryan Contracting, Inc. against the City. The City did not notify Klingelhutz of this potential increase in the assessments. Furthermore, when a jury awarded Ryan Contracting, Inc. $279, 051.89 in damages for the City's breach of contract, the City did not notify Klingelhutz that the City would pass this on to property owners by increasing the special assessments against affected property. Klingelhutz reasonably relied on the City's original estimate. Klingelhutz planned the development of its property and entered contracts for the sale of individual units, believing that the City's original estimate would be reasonably close to the actual cost of the improvements. Klingelhutz escrowed nearly twice the amount the City proposed for each unit with the understanding that this amount would be more than adequate to cover the final assessment. As a direct result of the City's errors, Klingelhutz has been forced to escrow nearly six times the amount of the original proposed assessments for units that have not been sold and is already liable to owners of units that have been sold for the shortfall in the amount escrowed for assessments. 2 . The proposed special assessments are not uniform against the same class of property. According to the City's own figures, the cost of the improvements, and the increase in special assessments, is approximately two times greater than the original estimate. However, the proposed special: assessment on the Klingelhutz property is approximately four times greater than the original estimate. It appears that the City is attempting to impose a larger portion of the unanticipated increase on Klingelhutz than other property owners. 3 . The special assessments are an unconstitutional taking of Klingelhutz's property without just compensation under the Minnesota and United States Constitutions. An appraisal of the property will 2 show that the amount of the assessments exceeds the benefit to the property based on the fair market value of the property prior to the improvements as compared to the fair market value of the property after the improvements. At minimum, some or all of the amount awarded to Ryan Contracting, Inc. does not benefit the property. Dated: 1/060c, II , 1997. KLINGELHUTZ DE -PMENTCOMPANY ir By /41.1.7;06212i7ge, / Its DKN1223 3 C, siENNA Suite 608.4940 Viking Drive•Minneapolis,Minnesota 55435.612-835-2808 CORPORATION October 31, 1997 The Honorable Jeff Henderson, Mayor and Members of the City Council City of Shakopee 129 South Holmes Street Shakopee, MN 55379 Re: Proposed Assessment for Sarazin Street, Project 1994-10 Dear Mayor Henderson and Council Members: At the Council hearing on October 21st, a number of Council members expressed concern about revising the then-proposed assessment roll which would result in a shift of some of the project cost to the taxpayers of Shakopee outside of the project's limits. We find it unfortunate that Staff has taken this very literally as we have been informed by Staff that the newly-created credits for corner properties (e.g. K.C. Hall, Heuer, Credit River P.A.C.) have resulted in a$400 per lot increase to Prairie Bend single family lots over the noticed assessment. In any sense of fair play, this is "piling it on". One of several issues that Sienna objects to involves the Sarazin Street box culvert_ The assessment, as proposed, for this culvert is truly ironic given the Council's concern over spreading project costs to off-site taxpayers. What is in fact happening under the proposed assessment roll is that Prairie Bend is subsidizing the cost of the box culvert to the benefit of the motoring taxpayer of Shakopee. The facts are: 1. Sarazin Street is a designated City collector street destined to connect to Hwy. 101 and act as a reliever to the congestion on Marschall Road. Sarazin Street has indisputable Citywide benefit. 2. The City Staff, at the time of plat approval in 1994, made an ill-informed decision to make Prairie Bend pay the entire costs of the box culvert (then estimated at ($90,000) since the Lenzmeier family, the land seller, had been fully compensated for a culvert in the 1988 condemnation because their fields were divided by the Upper Valley Drainageway. Planners • Developers ■ Contractors When pressed,neither past Staff nor the current Staff could specifically set out the amount of this culvert award. Thus, Sienna requested a report from one of the condemnation appraiser. His best estimate for the award was $43,600. A copy of his report is attached. 3. Thus, even with the $90,000 estimate box culvert cost in 1994, the City was going to receive a "gift" from Prairie Bend of$46,400. However, with the actual final cost of the culvert now at $189,000, the $145,000 "gift" from Prairie Bend has brought new meaning to philanthropy. The Council concern about the off-site taxpayer paying for some project cost has been totally reversed and the Council is now proposing that Prairie Bend heavily subsidize off-site motoring taxpayers as they use the Sarazin Street shortcut to Hwy 101. There has been some discussion by Staff that the excess cost of the box culvert has some consistency with a recently adopted storm sewer area charge. However, this project was approved in 1994 and, absent the City's troubles with its contractor, would have been assessed in 1995. To bring storm water area charges into this discussion now lends credence to the concept of reassessing all pre-1997 neighborhoods for storm sewer area charges. I respectfully submit that the City has grossly over-assessed Prairie Bend for benefit derived from the box culvert, as well as the other issues Sienna has raised at the hearing and with Staff I strongly encourage your support of a transfer of an appropriate amount to State-aid or other collector road funds to bring this assessment back to equity. This letter is in addition to, but does not replace the October 17, 1997 objection letter. Those objections are resurrected herein. Thank you for your consideration. 'mcerely, -'fames W. Johnston Projec Manager c: Anthony J. Gleekel Judith Cox, City Clerk OCT-31-97 FRI 01:55 PM SIENNA CORP FAX NO. 612+835+7008 P. 01 'wax' SIENNA CORPORATION Suite 608 • 4940 Viking Drive • Minneapolis,Minnesota 55435 •612-835-2808 FAX:612-835-7 CC8 FACSIMILE COVER LETTER Our FAX number is (612)835-7008 TO: 'IW'j' COX FAX#: FROM: J l 1V' J04-1-K165-1\1 DATE: Number of pages, including cover sheet: Comments: tie oe c0 -bp Iib- -thot gas cru r Pre c If you do not receive the entire FAX, please call us as soon as possible at: (612) 835-2808, Thank you. Wr Al NING: —The document being faxed is intended only for the use of the individual or entity to which it is addressed, and may contain information that Is privileged,confidential and exempt from disclosure under applicable law,If the reader of this message is not the intended recipient,or the employee or agent responsible for delivering the message to the intended recipient,you are hereby notified that any dissemination,distribution or copying of the communication is strictly prohibited. If you have received this communication in error,please notify us Immediately by telephone and return the original message L to us at the above address via the United States Postal Service. Planners • Developers • Contractors OCT-31-97 FRI 01:56 PM SIENNA CORP FAX NO. 612+835+7008 P. 02 ♦V w • ` Professional Full Service Appraisers 10010-60th Street No.,Stillwater,MN 55082-9306 (612)777-9211 FAX(612)777-0119 Certified General and Residential Appraisers ALicensed in Minnesota and Wisconsin WILLIAM A.SCHWAB,CA-S.C.R.A. President JACK M.SWEDAHL,CRPA/S �� Senior Stall Appraiser SANDY L.REBER,CA-R PEEL D TMT Senior Stal/Appraiser IN • COLLEEN M.ORTON Stell Appraiser Serving All Areas of Appraisal Needs ANDREW J.HARRINGTON Staff Appraiser March 31, 1995 James Johnson Sienna Corporation 4940 Viking Drive Suite 608 Minneapolis, MN 55435 Re: Lorraine Lenzmeier Property: 1426 East 4th Street Shakopee, MN 55379 File #103-88 Dear Mr. Johnson, Pursuant to your request, I have reviewed my files as they relate to the appraisal reports I prepared in 1988 for Mrs, Lorraine Lenzrneier. These reports were prepared for a condemnation action started by the City of Shakopee for a storm drainage'way. The taking by the City affected two separate parcels at 1426 East 4th Street, Shakopee, Minnesota. The first parcel has a tax property identification number of: 27-905017-0. This parcel ws approximately 42.41 acres in size. There was a permanent easement of 3.386 acres and a temporary easement of 2.485 acres. For the most part, the easements were along the south and west property lines. Based on my appraisal analysis, I arrived at an opinion that this property was damaged in the amount of$97,000.00. It is my understanding the commissions arrived at an award of$60,250.00 plus $600.00 for the appraisal fee. The difference between the award and my opinion of damages was $36,750.00, which represents a reduction in my opinion of damages of 38%. Membors of: AMERICAN ASSOCIATION OF CERTIFIED APPRAISERS NATIONAL ASSOCIATION OF REVIEW APPRAISERS MINNESOTA GOVERNMENTAL APPRAISERS INTERNATIONAL RIGHT OF WAY ASSOCIATION AMERICAN PLANNING ASSOCIATION APPRAISAL INSTITUTE ST.PAUL BOARD OF REALTORS WESTERN WISCONSIN BOARD OF REALTORS Specialists In Appraising of Real Estate,Business Fixtures and Equipment OCT-31-97 FRI 01:56 PM SIENNA CORP FAX NO, 612+835+7008 P. 03 The second parcel has a tax property indentification number of: 27-906028-0. This parcel was approximately 47.1 acres in size. There was a permanent easement of 3.652 acres and a temporary easement of 1.975 acres. In this case, the permanent easement bisects the parcel. Within the easement, the city ws going to construct an open ditch. This will split the parcel into two separate parts. Based on my appraisal analysis, I arrived at the opinion that in addition to the actual loss of land, there was some severance damage to the remainder. The problem was to come up with some method of connecting the two severed parcels, so they could be developed as a single unit. A civil engineer was contacted for a recommendation on methods of crossing the open ditch the city was creating. We received a report from Erickson Engineering dated October 14, 1988, which was included in the appraisal report. A copy of that report is attached. _To help with the severance problem, I included as a part of the damages, the cost of constructing a crossing over the ditch. The engineer discussed both a bridge and the installation of culverts. After discussions with the property owner and the engineer, it was determined the most cost effective method of crossing the ditch was to construct a crossing with 3-12 foot culverts at an estimated cost of $74,000.00. My final opinion of damages to this parcel was in the amount of $242,000.00, which included the $74,000.00 for the crossing. It is my understanding the commissions arrived at an award of$142,772.00 plus $500.00 for the appraisal fee. The difference between the ward and my opinion of damages was $99,228.00, which represents a reduction in my opinion of damages of 41%. This would be in line with what the commissions did on the other parcel. Since the commissioners did not provide any details regarding the crossing, it can only be assumed they considered the severance factor as part of the whole and reduced it by 41%. That would indicate the final award included $ 74,000,00 x 59% $43,660.00 for the crossing. Please let me know if you need any additional information regarding this matter. Sincerely, 016;e6r William A, Schwab, CA-S, C.R.A. Certified Federal General Minnesota License #4000585 PENFIELD, INC. WAS/mml ATTACHMENT OCT-31-97 FRI 01 :56 PM SIENNA CORP FAX NO. 612+835+7008 P. 04 ERICKSON ENGINEERING Consulting Engineers October 14, 1988 r Mr. Willard L. Converse Peterson, Bell, Converse & Jensen 2100 American National Bank Building 101 East Fifth Street St. Paul, MN 55101 RE: Lenzmeier Property Your File No. : 2401.1 Dear Mr. Converse: This letter is in response to your letter dated September 22, 1988, requesting cost estimate for constructing a bridge or culvert to span a proposed ditch on your client's property. Since the cost of constructing a bridge or culvert on your client's property is directly dependent on the required length of bridge or size of culvert(s), it is extremely important that the minimum structure size be determined. Our determination of minimum structure size is only approximate and is based on our interpretation of the information contained in the UPPER VALLEY DRAINAGEWAY AND OUTFALL STUDY. The information contained in the study is quite comprehensive and extracting the appropriate information was difficult, The following information was used to determine the minimum bridge length and should be reviewed for accuracy. Please let us know if any information is incorrect so that we can revise our estimate. Watershed and Ditch Data Watershed Designation H-10 Drainage Area (Direct) 2,436 acres Drainage Area (Indirect) 6,001 acres 100-Year Peak Discharge 893 cfs Alignment Option E1 • Hydraulic Reach C1 Ditch Geometry Side Slopes 4 Lor./1 ver. Bottom Width 30 ft. Depth 5.5 ft. 100-Year Flow Depth 4.5 ft. Ditch Grade 0.20`% Erickson Engineering Company 3340 Republic Avenue++ St. Louis Park, Minnesota 55426 (612)929-6791 OCT-31-97 FRI 01 :57 PM SIENNA CORP FAX NO. 612+835+7008 P. 05 pur . ploi Page two of three October 14, 1988 Mil HYDRAULIC ANALYSIS Id Using the data given an analysis and model the channelwe and variouswere e bridge to s alternates. Themate minimum dbridgide length will vary depending upon the allowable backwater caused by the bridge. We Ill were not able to determine the maximum allowable backwater from the study. Therefore, we analyzed three bridge sizes: 1. An 85-foot bridge which, with the exception of piers, completely ill spans the ditch. This bridge would cause a 0.07-foot stage increase (backwater). 1111 2. A 63-foot bridge which, with the exception of piers, completely spans the ditch, but uses 2 hor./1 ver. ditch slopes instead of the normal 4 to 1 slopes. This bridge would cause a 0.14-foot stage increase. III 3. A 51-foot bridge which would span the entire ditch without piers and also use the 2 to 1 ditch slopes. This bridge would cause a 1101 0.52-foot stage increase. We looked at two different culvert configurations. IIII 1. Three lines of 12-foot x 5-foot concrete box culverts produce a 0.49-foot stage increase and have an outlet velocity of 5.6 ft, /sec. ill _ 2. Three lines of 10-foot x 5-foot concrete box culverts which produce a 0.84-foot stage increase and have an outlet velocity 101 of 6.8 ft./sec. III BRIDGE COST ESTIMATE f Based on the above bridge lengths;' a total bridge width of 36 feet (27 feet for I ill vehicles, a �+ 6-foot sidewalk, and 3-foot traffic barriers), and a unit cost of f $40.00 per square foot, we get the following costs: II 85-foot bridge $122,400.00 II! 63-foot bridge $ 90,720.00 Ii 51-foot bridge $ 73 440.00 111 Note, the above bridge width for traffic was increased to 27 feet requested 26 feet in order to create a total width of 36 feet. This nise desirable because several precast bridge deck units come 11 not necessary to use precast units, the in 6-foot widths. Although it is alternative cast-in-place deck. Y are probably less expensive than the I . 1 OCT-31-97 FRI 01:57 PM SIENNA CORP FAX NO. 612+835+7008 P 06 Page three sof three October 14, 1988 CULVERT COST ESTIMATE 111 Assuming a minimum soil cover over the culverts, we estimate the culvert barrel lengths to be 40 feet. Based on the culvert sizes used in the hydraulic analysis and a 40-foot barrel length, we estimate the culvert cost to be as follows: 3 lines, 12-foot x 5-foot $74,000.00 3 lines, 10-foot x 5-foot $66,000.00 I ROADWAY COST ESTIMATE We estimate the cost of constructing a roadway with a 32-foot bituminous surface to be approximately $75.00•per linear foot. Therefore, for the 85-foot bridge option, 85 x $75.00 = $6,375.00 should be subtracted from the bridge estimate to determine the total increase cost due to the drainage ditch. A similar subtraction should be performed for the other bridge lengths. This does not apply to the culverts since the culvert estimates do not include the cost of constructing the roadway over the ifculverts, but only for fill up to the top of the ditch. CONCLUSION Please keep in mind that the cost estimates given above are only approximate and that detailed analysis and/or negotiations with the Shakopee Water Management Organization (WMO) and the Lower Minnesota River Watershed District (LMRWD) may result in different acceptable bridge lengths or culvert sizes. It may be advisable to try to get the WMO and the LMRWD to commit themselves to an acceptable bridge or culvert size before proceeding any further. I hereby certify that this report was prepared by me or under my direct supervision and that I am a duly registered professional engineer under the laws of the State of Minnesota. Brian D. Walter, P.E. Date October 14, 1988 Reg. N.. 13896 o, CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Adopting Assessments for Sarazin Street/Roundhouse Street/ and 4th Avenue Improvements, Project No. 1994-10 DATE: November 5, 1997 INTRODUCTION: This item is for adoption of assessments by Resolution No. 4776, a resolution which adopts the assessments for the above referenced project. The revised assessment roll is being attached for Council consideration for adoption. BACKGROUND: Staff did complete an assessment roll for Council consideration, which included assessment adjustments that were mentioned at the October 21, 1997 Council meeting and public hearing. After the memo and proposed assessment roll was completed and included in the Council packet, staff received notice from Shakopee Public Utilities on a revised watermain assessment frontage for Universal Wood Products along 4th Avenue. The attached assessment roll with this memo includes the watermain frontage correction and the reapportionment of watermain assessment throughout the project. In addition, one of the lots in Prairie Bend can be reapportioned to each individual townhouse unit, now that the townhouse units have been completed. These changes have been made and staff is recommending that this assessment roll be considered for adoption. Staff also received a letter on October 31, 1997 from Sienna Corporation in regard to the proposed assessment to their development. Staff would like to address the two issues raised and these issues are as follows: 1. Corner Lot Adjustment Policy On the corner lot adjustment policy, staff pointed out to Council that the City did not have a corner lot adjustment policy for multiple residential, commercial and industrial property. Included with the previous memo in the Council agenda packet, is Resolution No. 4787, a resolution amending the Special Assessment Policy with regard to corner lot adjustment. This policy provides a more fair and equitable Assessment Policy on large corner lots on property that has higher value. The previous policy would only allow a 50% assessment rate for the short side of the lot in questions. If this policy was utilized, it would have in fact increased the assessments to the interior lots, mainly being the Prairie Bend single family lots. In staff's opinion by implementing this new corner lot assessment policy, the assessments are more fair and equitable for this particular project and to the Sienna Corporation. 2. Box Culvert Assessment Policy Staff did provide Council with copies of the policy adopted by Council in regard to box culverts crossing the Upper Valley Drainageway. It has been past Council practice that developments should bear the cost of a box culvert crossing the Upper Valley Drainageway, since the City constructed the Upper Valley Drainageway with no assessments to developing properties. The latest policy for box culvert assessments is the revised policy, to only assess the local street • equivalent to developments and that was the policy that was done with this project. Staff would agree with Sienna Corporation in that Sarazin Street is a State Aid City collector street, however, only the local street equivalent was assessed on this project. The second point raised by Sienna in which staff would concur with is that it has been difficult to determine what amount was given for a future box culvert crossing. In the condemnation award, the Commissioners awarded a certain dollar amount for severing of the parcel and no specific amount was given for a future box culvert crossing. With the Vierling Drive street construction through Meadows West, a box culvert was assessed to Gold Nugget based on the box culvert assessment policy. The assessment to Gold Nugget was $115,271.55 and a condemnation award from MnDOT for a box culvert crossing was awarded in an amount of $92,000.00. It has been Sienna's contention that the double barrel box culvert installed on Sarazin Street has an excessive cost to development, due to the fact that the box culvert size needed to be much larger and more expensive due to its downstream location. The properties that were assessed for the box culverts were only the properties in Prairie Bend, as stated in the feasibility report. To reduce the assessments on the box culvert, staff would need direction from City Council. Staff believes it has applied the policy in regard to box culvert assessments, as previously directed by Council. ALTERNATIVES: The alternatives, as previously stated in the previous Council memo in regard to adopting assessments for this project, except that staff would recommend adopting Resolution No. 4776, a resolution adopting assessments using the revised assessment roll on the table or as modified by City Council. RECOMMENDATION: Staff recommends adopting Resolution No. 4787, a resolution adopting a corner lot adjustment policy for multiple residential, commercial and industrial property. Staff also recommends adopting Resolution No. 4776, a resolution adopting assessments as per the revised assessment roll, so that the assessments can be certified to Scott County before November 30, 1997. ACTION REQUESTED: 1. Offer Resolution No. 4787, A Resolution Adopting a Corner Lot Adjustment Assessment Policy for Multiple Residential, Commercial and Industrial Property and move its adoption. 2. Offer Resolution No. 4776, A Resolution Adopting Assessments for Sarazin Street, between 4th Avenue and County Road 16; Roundhouse Street, between 4th Avenue and County Road 16; and 4th Avenue, between Shawnee Trail and Sarazin Street, Project No. 1994-10 and move its adoption. 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Z A CO o O o w -4 o C C o 0 o v o b) O w -I C7 Co 0 0 0 w -4 N 0 m M N it ( 69 CO) V 73 t0 V N O 0) 0 N in 3 3 V A CCD co co c� ta0 m m D Z CO c° W O m N 0 N c43 n Z Z O o 00) A O W 0) CO CO V O T co 2 O cn m Z CO v 10 tr 44in W 441 V N do E com cwn o v q Zj Oa) 0) N N W CO O A V O 14. 01 0) N N O) O 2 73 D D ti to Z cn 73 a° d) N W �+. n jr, W N v, -4 m m m m o P o w o t01 P 0 -I 0 A O O O OWo O t0 O a N CA x OD rn C (0 I Z G ao r CD M 111 N O O O O O O-coO f0 Z --1 O O o o O O O 0 O �i D cn C Z (A a N fA cn > X -a 1 ao 0) �', m m DI o v z -i p N PI 0) V owo a 3 0 (0 V 03 p N can -4 W (0 OaD N D W W -4 01 r to �^ O v Cl) (A co 4) a m w w 17 ▪ vm -4 i.) -03 m co rD N m to O W O O w 0Z N W AZ po O O) w N CO V BRENNER& GLASSMAN, LTD. / • C , tPloizsuon f---41locuation BLN OFFICE PARK,SUITE 170 2001 KILLEBREW DRIVE MINNEAPOLIS,MINNESOTA 55425-1822 TELEPHONE: (612) 854-7600 TELECOPIER: (612) 854-0502 November 4, 1997 HAND DELIVERED Ms. Judith Cox, City clerk � City of Shakopee 129 Holmes Street South Shakopee, MN 55379 Re: Renewed and Restated Objections by Klingelhutz Development Company to Proposed Assessments on Project No. 1994-10 Our File No. 5446-9 Dear Ms. Cox: Pursuant to Minnesota Statutes § 429.061, enclosed for filing in connection with the above matter please find the Renewed and Restated Objections of Klingelhutz Development Company. S:ncer-ly, / C i-na K. Nyqui- - DKN:hlk Enclosure cc: Mr. Jim Heisel (w/encl. ) Mr. James J. Thomson (w/encl. ) RENEWED AND RESTATED OBJECTIONS OF KLINGELHUTZ DEVELOPMENT COMPANY TO PROPOSED ASSESSMENTS IN CONNECTION WITH PROJECT NO. 1994-10 This is to inform the City of Shakopee that Klingelhutz Development Company ("Klingelhutz") renews and restates its objections to the special assessments proposed by the City in connection with City Project No. 1994-10. The objections were originally filed with the City Clerk on October 17, 1997. The objections relate to all of the parcels that Klingelhutz owns or on which Klingelhutz is contractually responsible for payment of special assessments. The objections are as follows: 1. Based on Minnesota Statutes § 429. 031, subd. 1, the City is without jurisdiction to adopt the proposed special assessments. Errors in the Feasibility Report prepared for the project, which resulted in the City underestimating the cost of improvements by $966, 141. 37, materially prejudiced the interests of Klingelhutz. Therefore, all actions taken by the City in connection with the special assessments are invalid. The City was aware that its original estimate was substantially in error on or before April 4, 1995, when it received an initial bid for construction of the improvements. The City notified some owners about this problem. However, the City failed to notify Klingelhutz that this error would increase the assessments on Klingelhutz's property. In addition, on or before April 1, 1996, the City was aware that the assessments against Klingelhutz's property could increase as a result of a lawsuit commenced by Ryan Contracting, Inc. against the City. The City did not notify Klingelhutz of this potential increase in the assessments. Furthermore, when a jury awarded Ryan Contracting, Inc. $279, 051.89 in damages for the City's breach of contract, the City did not notify Klingelhutz that the City would pass this on to property owners by increasing the special assessments against affected property. Klingelhutz reasonably relied on the City's original estimate. Klingelhutz planned the development of its property and entered contracts for the sale of individual units, believing that the City's original estimate would be reasonably close to the actual cost of the improvements. Klingelhutz escrowed nearly twice the amount the City proposed for each unit with the understanding that this amount would be more than adequate to cover the final assessment. As a direct result of the City's errors, Klingelhutz has been forced to escrow nearly six times the amount of the original proposed assessments for units that have not been sold and is already liable to owners of units that have been sold for the shortfall in the amount escrowed for assessments. 2. The proposed special assessments are not uniform against the same class of property. According to the City's own figures, the cost of the improvements, and the increase in special assessments, is approximately two times greater than the original estimate. However, the proposed special- assessment on the Klingelhutz property is approximately four times greater than the original estimate. It appears that the City is attempting to impose a larger portion of the unanticipated increase on Klingelhutz than other property owners. 3. The special assessments are an unconstitutional taking of Klingelhutz's property without just compensation under the Minnesota and United States Constitutions. An appraisal of the property will 2 show that the amount of the assessments exceeds the benefit to the property based on the fair market value of the property prior to the improvements as compared to the fair market value of the property after the improvements. At minimum, some or all of the amount awarded to Ryan Contracting, Inc. does not benefit the property. Dated: %78,1t,cc.„ , 1997. KLINGELHUTZ DEV eePMENTCOMPANY By DKN 12 2 3 *� Its r` 44,4, 3 CONSENT CITY OF SHAKOPEE Memorandum To: Mayor and City Council Mr. Mark McNeill, City Administrator From: Timothy Benetti, Planner I ass- Meeting Date: November 5, 1997 Re: Final Plat of Krystals First Addition Date: October 29, 1997 Introduction: S.M. (Steve) Hentges is requesting approval of the Final Plat for Krystals First Addition. The subject site is located west of County Road 79 (Spencer Street) and north of U.S. Highway 169 (bypass). A copy of the October 23rd, 1997, Planning Commission staff memo has been attached for your reference. Alternatives: 1. Approve the Final Plat for Krystals First Addition. 2. Revise the conditions of approval for the Final Plat of Krystals First Addition, and approve subject to the revised conditions. 3. Do not approve the Final Plat for Krystals First Addition, stating the reasons for denial. 4. Table the decision, and request additional information from the applicant and/or staff Planning Commission Recommendation: The Planning Commission has recommended the approval of the Final Plat for Krystals First Addition, subject to conditions(Alternative No. 1). Action Rea nested: Offer Resolution No. 4771 a Resolution Approving the Final Plat for Krystals First Addition, and move its adoption. i:\connndev\cc\19974x1105\FPKRYSTI-DOC 4' /4. r - RESOLUTION NO.4771 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, APPROVING THE FINAL PLAT FOR KRYSTALS FIRST ADDITION. WHEREAS, the Planning Commission of the City of Shakopee did review the Final Plat for Krystals First Addition on October 23, 1997, and has recommended its approval; and WHEREAS, all notices of the public hearing for the Preliminary Plat were duly sent and posted and all persons appearing at the hearing have been given an opportunity to be heard thereon. WHEREAS,the property upon which the request is being made is legally described as: Outlot A, P & V Second Addition, Scott County, Minnesota, together with the South Half (1/2) of the Southeast Quarter (1/4) of the Southeast Quarter (1/4) of Section 12, Township 115, Range 23, Scott County, Minnesota, except that part contained within Minnesota Department of Transportation Right-of-Way Plats No. 70-3 and 70-20, as on file and of record in the Office of the Scott County Recorder. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE,MINNESOTA,as follows: That the Final Plat for Krystals First Addition is hereby approved subject to the following conditions: A. The following procedural actions must be completed prior to the recording of the Final Plat: 1. Approval of title by the City Attorney. 2. Execution of a Developers Agreement for construction of required public 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. City of Shakopee Resolution No. 4771 Page 2 of 3 e) The applicant shall enter into an agreement regarding Park Dedication payments. These payments shall be deferred to the issuance of a building permit for the lot. In accordance with the City's 1997 Fee Schedule, these payments shall be $900.00 per single-family residential unit and $750 per multi-family unit. f) Developer shall be responsible for provisions for security for the public improvements, engineering review fees, storm water trunk fees and other fees required by the City's 1997 Fee Schedule. 3. The Final Construction Plans and Specifications must be approved by the City Engineer and the Shakopee Public Utilities Commission, and shall include the following information: a) A revised grading plan which includes changes to the side- slopes of the pond, and the location for the emergency overflow for the pond. b) Proposed building styles with low floor and garage slab elevations. _ c) Narrative for erosion control. d) Information that the existing berm will reduce noise levels to those acceptable by state and local laws. 4. The developer acknowledges the existence of pending Green Acre Deferred assessments and VIP Connection Fees, and agrees that these assessments will be paid as set forth in the developers agreement for Krystals First Addition. VIP Connection fee is due prior to final plat recording. 5. Street signs (if or where necessary) shall be installed by the City of Shakopee at a cost to the developer of$270.00 per sign pole. 6. The developer shall obtain a MnDOT Drainage Permit and MnDOT Utilities Permit for construction work within MnDOT right-of-way. 7. The developer shall obtain a Minnesota Department of Health Permit concerning the watermain. 8. The developer shall obtain a Minnesota Pollution Control Agency Sanitary Sewer Permit and General Storm Sewer Permit. 9. The developer shall obtain a Scott County Utilities Permit for any grading or utility work required within Scott County right-of-way. 10. Approval from NSP for construction within their easement. 11. The Common Interest Community (CIC) declarations shall be filed with the Final Plat. City of Shakopee Resolution No. 4771 Page 3 of 3 12. The developer shall review and revise the fire hydrant locations. Locations to be given final approval by City of Shakopee's Fire Chief. 13. Storm water trunk fees will be paid by the developer. 14. The developer shall be responsible for all costs associated with extending utilities and the construction of roadways to the boundary of Krystals Addition. 15. Plat Dedication must include language indicating the donation and dedication of the new right-of-way areas for Appleblossom Lane and Lewis Street within the final plat. 16. All driveway access shall be taken from the internal street system. No direct access will be allowed onto County Road 79. 17. No berming, landscaping, or ponding will be allowed within the County right-of-way. BE IT FURTHER RESOLVED, that the Mayor and City Clerk are hereby authorized and directed to execute said Plat and Developer's Agreement. Adopted in session of the City Council of the City of Shakopee, Minnesota,held this day of , 1997. Jeff Henderson Mayor of the City of Shakopee Attest: Judith S. Cox, City Clerk Approved as to form: City Attorney Prepared By: City of Shakopee 129 S.Holmes Street Shakopee,MN 55379 CONSENT CITY OF SHAKOPEE Memorandum TO: City of Shakopee Planning Commission FROM: Tim Benetti, Planner I SUBJECT: Final Plat of Krystals First Addition DATE: October 23, 1997 Site Information: Applicant& Owner: S.M. (Steve)Hentges Location: West of County Road 79 and north of the Shakopee Bypass(See Exhibit A) Current Zoning: PUD Overlay Zone#7, with underlying zone of Urban Residential (R-1B) Adjacent Zoning: North: Urban Residential(R-1B) South: Shakopee Bypass East: Medium Density Residential(R-2) West: Medium Density Residential R-2) Comp. Plan: 1995: Single Family Residential Area: 7.74 Acres MUSA: The site is within the MUSA boundary. Introduction: Mr. Steve Hentges is requesting approval of the final plat for Krystals First Addition. The proposed plat and related development is located west of County Road 79 (Spencer Street) and north of the Shakopee Bypass. Considerations: The Planned Unit Development for this site was approved by the City Council on October 1, 1996. The Preliminary Plat for this site was subsequently approved by the City Council on December 17, 1996. The Final Plat is in conformance with the approved Planned Unit Development and Preliminary Plat. The proposed Krystals First Addition Final Plat is illustrated on the attached Exhibit B. The Engineering Department has reviewed the submittal materials and has provided its comments. Staff has incorporated these recommendations into the conditions of approval for the Final Plat. Alternatives: 1. Recommend to the City Council approval of the Final Plat of Krystals First Addition, subject to conditions. 2. Modify the recommended conditions, and recommend to the City Council approval of the Final Plat, subject to the revised conditions. 3. Recommend to the City Council the denial of the Final Plat, stating the reasons for denial. 4. Table the decision to allow staff and/or the applicant to provide additional information. Staff Recommendation: - Staff recommends Alternative No. 1, to recommend to the City Council approval of the Final Plat of Krystals First Addition, subject to the following conditions: a) Prior to review by the City Council the following information must be submitted: i) Drainage and utility easements must be shown on the drawings, as required by the Subdivision Ordinance. ii) Information from NSP which indicates their approval of the proposed construction within their easement. iii) Information from MnDOT which indicates they have reviewed the proposed development, and that it meets their requirements. b) The following procedural actions must be completed prior to the recording of the Final Plat: i) Approval of title by the City Attorney. ii) Execution of a Developers Agreement for construction of required public 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. 2 e) The applicant shall enter into an agreement regarding Park Dedication payments. These payments shall be deferred to the issuance of a building permit for the lot. In accordance with the City's 1997 Fee Schedule, these payments shall be $900.00 per single-family residential unit and $750 per multi-family unit. f) Developer shall be responsible for provisions for security for the public improvements, engineering review fees, storm water trunk fees and other fees required by the City's 1997 Fee Schedule. iii) The Final Construction Plans and Specifications must be approved by the City Engineer and the Shakopee Public Utilities Commission, and shall include the following information: a) A revised grading plan which includes changes to the side-slopes of the pond, and the location for the emergency overflow for the pond. b) Proposed building styles with low floor and garage slab elevations. c) Narrative for erosion control. d) Information that the existing berm will reduce noise levels to those acceptable by state and local laws. iv) The developer acknowledges the existence of pending Green Acre Deferred assessments and VIP Connection Fees, and agrees that these assessments will be paid as set forth in the developers agreement for Krystals First Addition. VIP Connection fee is due prior to final plat recording. v) Street signs (if or where necessary) shall be installed by the City of Shakopee at a cost to the developer of$270.00 per sign pole. vi) The developer shall obtain a MnDOT Drainage Permit and MnDOT Utilities Permit for construction work within MnDOT right-of-way. vii) The developer shall obtain a Minnesota Department of Health Permit concerning the watermain. viii) The developer shall obtain a Minnesota Pollution Control Agency Sanitary Sewer Permit and General Storm Sewer Permit. ix) The developer shall obtain a Scott County Utilities Permit for any grading or utility work required within the Scott County right-of-way. x) Approval from NSP for construction within their easement. xi) The Common Interest Community (CIC) declarations shall be filed with the Final Plat. xii) The developer shall review and revise the fire hydrant locations. Locations to be given final approval by City of Shakopee's Fire Chief. xiii) Storm water trunk fees will be paid by the developer. xiv) The developer shall be responsible for all costs associated with extending utilities and the construction of roadways to the boundary of Krystals Addition. xv) Plat Dedication must include language indicating the donation and dedication of the new right-of-way areas for Appleblossom Lane and Lewis Street within the final plat. 3 xvi) All driveway access shall be taken from the internal street system. No direct access will be allowed onto County Road 79. xvii) No berming, landscaping, or ponding will be allowed within the County right-of-way. Action Requested: Offer a motion to recommend approval of the Final Plat of Krystals First Addition, subject to conditions,to the City Council, and move its approval. Tim Benetti Planner I Ocoromdev\boas-pc\1997oct23pc'fr�ystl.doc 4 • � ' III — 1 �1 � 3 • 4 ' 'I 111 \ '\ Q A . - -- ! 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Y ....• I Z O': CITY OF SHAKOPEE /y, l , Memorandum To: Mayor and City Council Mark McNeill,City Administrator From: Mark McQuillan,Parks and Recreation Director Subject: Lions Park Hockey Boards Date: 10/29/97 INT_TIO At its October 21, 1997 meeting,the City Council requested the Parks and Recreation Advisory Board show how it plans to adjust the 1998 Parks Capital Improvement Program(CIP)to include the new hockey boards for Lions Park. BACKGROUND On October 21, 1997,the Parks and Recreation Advisory dd i following:Board reviewed the 1998 Parks 5 Year Capital Improvement Program and re 1. In the 1997 Parks CIP,$12,000 is identified for safety fencing on the ballfields at Tahpah Park. For the past two years,the Public Works Department has been using park maintenance funds to install safety fencing on these fields(2 fields per year).The project will be completed by 1999. Therefore,the PRAB is recommending shifting the$12,000 for safety fencing into 1998 for hockey boards in Lions Park. This will be an increase f.The $2,000 2A 000 from BBoard what was to make s originally proposed to Council on October 21, 1997,by sure there is adequate funding to complete the project. 2. The Parks and Recreation Advisory Board also recommended moving the 1997 County Road 79 Trail Project into 1998 and consolidating e done in year 1998fencing project for Muenchow Fields (1998-99-2000) into a one year project Attachment A is the 1997 Parks CIP Attachment B is the Proposed 1998 Parks CIP Attachment C is the Revised 1998 Parks CIP. ACTION REQUEST Move adjust the 1998 Parks Capital Improvement Program to include: • $12,000 for new hockey boards in Lions Park; • $55,000 for the County Road 79 Trail Project and • to consolidate the three year ball field fencing project for Muenchow Fields into a one year project to be done in 1998. ark . McQui an Parks and Recreation Director /997 0 'i "I - O O O MCAA O 000 O. 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L 43 o a c °= v 2•3 U w L a) E y_ a O L L O O 'C N N N L a) C 0 o f- n. F- t— O O Z 0 0 0 0 0 0 0 0 ti O 0 O 0 Cn tri M) Cn o.W 0) i- et �t F- C 0 al r N OL L co as C h E 7 E V ui :: Q tea) aL) � 2 O N c N coc v E c v) c L > aa)i CO a) 6 C � tfl o '-' 'o � :a (� d C C C1 v) o C � 0 U X c6 o C C ~ 7 ~ a) 2 w � U - w U- 0_ 0 L Q m I Y. 8. ' CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: Transit Policy and Service Issues MEETING DATE: November 5, 1997 ITEM: INTRODUCTION: On September 30, 1997, the City Council held a work session to discuss a number of transit-related issues. At that time staff was directed to return with specific proposals for consideration by the Council at a public meeting. Subsequently, a press release was published in the Shakopee Valley News, notices placed on the buses and vans used by Shakopee Area Transit (SAT), and individual notices sent to persons who expressed concern over potential changes. The issues to be addressed are as follows: 1. Age limits for independent ridership on Dial a Ride (DAR); 2. Reduced fares for persons with disabilities; 3. Hours of service for DAR; 4. Hours of service for 53 S Express Buses; 5. Management contract for transit services. Discussion: The City contracts with Southwest Metro Transit (SMTC)to manage the dial a ride and express services, which are provided by Laidlaw and SMTC, respectively. Laidlaw is paid on the basis of the number of hours of DAR service provided for both weekdays and weekends, plus the capital contribution and less the fares collected. The current hourly rate is $28.93. The 1998 Management Plan and Budget submitted to the Metropolitan Council are based on $396,299 being available for local transit (combination of Metropolitan Council transit tax and Private Vehicle Capital). The plan and budget also assumes that weekday DAR service would cease at 6 p.m. and that there would be no Saturday service. Minimum Age for Independent Ridership on Dial A Ride On a monthly basis about 2300 riders use DAR. During the school year about 530(23%) of these are under 10 years of age. At the work session, Kathy Kottke of Laidlaw indicated that about 90% of the children are pre-school age. Laidlaw estimates that when school is out this number drops to about 177, or about one-third the rate during the school year. Staff has checked with a number of transit providers to determine what, if any, policies they might have. Of the 11 providers contacted, 4 currently have policies. Following is a listing of providers and their policies: • Anoka County Traveller(fixed route and dial a ride)—Must be at least 6 years of age to travel unaccompanied. • Eden Prairie Circulator—No current policy, looking at one for next year. • Lake Area Bus —No current policy, left to drivers' discretion. • Maple Grove Dial A Ride-Must be at least 10 years of age to travel unaccompanied. • Northeast Suburban Transit—No current policy • Scott County-Must be at least 12 years of age to travel unaccompanied. • South County Circulator—No current policy • Southshore Dial A Ride -No current policy • Southwest Metro Transit-Must be at least 10 years of age to travel unaccompanied. • Westonka Dial A Ride—No current policy • Woodbury Transit Services—No current policy At the work session the Council discussed requiring that children under the age of 9 be accompanied by a person 12 years of age or older. The Council also discussed having Laidlaw work with pre-school and day care providers to allow one aide to accompany the children using their programs. Reduced fares for persons with disability: Since the work session, staff has received a number of calls from people representing programs interested in a reduced fare. Staff reviewed fares from the providers surveyed. They are as follows: • Anoka County Traveller(fixed route and dial a ride)—provides a $.50 reduced, fixed route fare for persons with disabilities. • Eden Prairie Circulator—provides a $.50 reduced circulator route fare for persons with disabilities. • Maple Grove Dial A Ride—no reduced fare indicated for persons with disabilities. • South County Circulator—provides a$.50 reduced fare for persons with disabilities. • Southshore Dial A Ride -provides a$.50 reduced fare for persons with disabilities. • Westonka Dial A Ride—provides a$.50 reduced fare for persons with disabilities. • Woodbury Transit Services—provides a $.50 reduced fare for persons with disabilities. Based on the information above, such discount fares are common, and the level seems consistent. Staff would suggest that the City develop specific passes/certification cards for such fares to avoid the confusion experienced in the past. Possible Discontinuation of DAR Service After 6 p.m. on Weekdays, and on Saturdays The 1998 Management Plan and Budget recently submitted to the Metropolitan Council are based on $396,299 being available for local transit(combination of Metropolitan Council transit tax and Private Vehicle Capital). The plan and budget also assumes that weekday DAR service would cease at 6 p.m. and that there would be no Saturday service. Laidlaw has suggested that ridership on Saturdays is very low for the 5-hour period during which it is provided, and that the City should consider discontinuing the service. During the month of August 1997 and average of about 11 people rode DAR on Saturdays. Similarly, Laidlaw has suggested that DAR ridership drops off substantially after 6 p.m., and warrants considering restricting the hours of service. Service is currently provided until 9 p.m. Possible Discontinuation of One 53S Express Bus SAT, through Southwest Metro Transit Commission(SMTC), provides two shuttles in the morning from Downtown Shakopee to Eden Prairie Center. These shuttles depart at 6:23 a.m. and 6:54 a.m., 31 minutes apart. In the evening the shuttles depart Eden Prairie Center for Downtown Shakopee at 4:34 and 5:03 p.m., 29 minutes apart. The 53S Express service operates a total of 45 to 68 hours per month, and has daily ridership of 5.55 to 10.67 passengers per day. (Source: 1998 Management Plan and Budget) As a result it is currently operating at a high subsidy ($10.70 per passenger). Laidlaw Transit Services has suggested that the City eliminate one of the shuttles in the morning and one in the evening in order to save costs. The suggestion made at the work session was to eliminate the 6:54 a.m. and 4:34 p.m. shuttles. In the event that ridership is increased as the result of additional marketing efforts, the City could add service in the future. Management Contract for Transit Services Since the work session, staff has discussed a possible management arrangement with George Bentley and SMTC. Under this arrangement, SMTC would continue to provide the service coordination it currently does, while Mr. Bentley would provide management assistance related to budget management, marketing efforts and other similar matters. Under this possible agreement, both SMTC and Laidlaw would reduce their cost proposals by $10,000 each in the form of rate reductions;Mr. Bentley would reduce his proposal by $3,000. Staff believes that this arrangement has merit and asks for direction from Council regarding whether they concur and feel that further negotiations should occur. ALTERNATIVES Minimum Age for Independent Ridership on Dial A Ride: 1. Direct staff and Laidlaw Transit Services to implement a policy on January 1, 1998, which would require that children under the age of 9 years be accompanied by an individual at least 12 years of age. Direct staff and Laidlaw Transit Services to work with providers to arrange for aides to accompany using pre-school and day care services. 2. Direct staff and Laidlaw Transit Services to implement a policy on January 1, 1998, implementing a different policy. Direct staff and Laidlaw Transit Services to work with providers to arrange for aides to accompany using pre-school and day care services. 3. Direct staff and Laidlaw Transit Services to implement a policy related to independent ridership on DAR on January 1, 1998. 4. Do not institute a policy change. 5. Table the matter for additional consideration. Reduced fares for persons with disability: 1. Maintain the current $.10 fare, but require that persons wishing to use the fare obtain a certificate/pass from the City effective January 1, 1997. 2. Increase the fare to $.50, and require that persons wishing to use the fare obtain a certificate/pass from the City effective January 1, 1997. 3. Increase the fare to some other amount, and require that persons wishing to use the fare obtain a certificate/pass from the City effective January 1, 1997. 4. Table the matter for additional information. Possible Discontinuation of DAR Service After 6 p.m. on Weekdays, and on Saturdays 1. Discontinue DAR service on Saturday and after 6 p.m. weekdays effective January 1, 1998. 2. Discontinue DAR service on Saturday, and redistribute those hours of service to weekdays. 3. Do not discontinue service. 4. Table the matter for additional information,' 53S Express Service: 1. Approve the elimination of the 6:54 a.m. and 4:34 p.m. shuttles effective January 1, 1998. 2. Do not approve the elimination of the 6:54 a.m. and 4:34 p.m. shuttles effective January 1, 1998. Management Contract for Transit Services 1. Offer a motion directing that staff further negotiate a management contract with SMTC and George Bentley. 2. Offer a motion directing that the current agreement remain in effect. ACTIONS REQUESTED: Minimum Age for Independent Ridership on Dial A Ride: Offer and pass a motion relative to policy regarding independent ridership on the City's Dial a Ride service. Reduced fares for persons with disability: Offer and pass a motion relative to maintaining of raising the reduced fare for persons with disabilities, and direct staff to develop a pass/certificate for persons using the reduced fare. Possible Discontinuation of DAR Service After 6 p.m. on Weekdays, and on Saturdays Offer and pass a motion regarding discontinuance DAR service after 6 p.m. on weekdays, and entirely on Saturdays. 53S Express Service: Offer and pass a motion relative to the reduction of Express Service as outlined above. Management Contract for Transit Services Offer a motion directing that staff further negotiate a management contract with SMTC and George Bentley. CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: Transit Issues MEETING DATE: September 30, 1997 ITEM: Work Session No. 2 Introduction: Over the past year a number of issues have arisen relative to the transit services provided by the City. Very recently, the City's dial a ride (DAR) provider, Laidlaw, has asked for written clarification of City policies regarding DAR. These issues include; • The minimum age for independent ridership on dial a ride; • The status and use of the"ten cent" fare for disabled individuals; • Level of service, i.e. "curb to curb" versus"to the door, as well as service to areas outside the City limits; • Possible discontinuation of DAR service after 6 p.m. on weekdays, and on Saturdays; • Possible discontinuation of one 53S express bus; • Management contract for transit services. Staff is seeking direction from the City Council regarding whether it wishes to make any changes in these aspects of transit service. Because of the number of issues, staff anticipates that the Council may wish to set another work session to deal with some or all of them. Prior to making any changes in service, a public hearing(s) would be set before the Council, and notice be provided in the City's official newspaper, to persons who have expressed a specific interest in the above-named issues, and on the transit vehicles themselves. Kathy Kottke, Operations Manager with Laidlaw, is expected to be present at the work session to answer specific questions. Discussion: Shakopee currently provides 3 types of transit services; dial a ride, express bus service to Eden Prairie Center, and van pooling. The City currently contracts with Southwest Metro Transit (SMTC) to manage the dial a ride and express services, which are provided by Laidlaw and SMTC, respectively. The dial a ride service picks up and drops users off at the curb. Unlike Metro Mobility, for example, it is not intended to assist users from their home to the van. Because Shakopee has substantial agricultural and rural residential areas, users are picked up at the end of the driveway; the DAR vans do not drive up the driveways in such cases. Laidlaw is paid on the basis of the number of hours of DAR service provided for both weekdays and weekends, plus the capital contribution and less the fares collected. The current hourly rate is $28.93. Thus, for example, the cost of about 779 hours of DAR service in August 1997 was $21,819.20. Minimum Age for Independent Ridership on Dial A Ride Shakopee Area Transit (SAT) has a long-standing, albeit unwritten policy of allowing young children to ride DAR vans without being accompanied by either an adult or older children. Recently the City's DAR service provider, Laidlaw, informed staff that it was experiencing problems with the provision of this service. Specifically, the provider has had problems with parents and children not showing for scheduled pick-ups, and having the vans called back shortly after the scheduled pick-up time, thereby increasing the amount of time spent to complete one pick-up. An additional problem for the provider is that people have not been at the scheduled destination at the scheduled time to meet very young children, with the result that in some instances drivers have had to keep young children on the vans until someone appears or can be contacted to pick them up. Because DAR is a"curb to curb" service and not a door to door service like Metro Mobility, Laidlaw's liability coverage does not extend to what occurs between the curb and the user's door step. Between the curb and the user's door then, there is potential additional liability for the City. Since staff first discussed this issue of a few weeks ago with representatives of Laidlaw, staff has received several calls from parents who use DAR to get their young children to either pre-school or day care, and who are thus opposed to changing the present policy. Staff also contacted Maila Hedin of Scott County Human Services to determine whether a change in current policy would adversely affect their clients. Ms. Hedin indicated that she didn't see that as a particular problem, and in fact noted that Scott County only permits children over the age of 12 years to ride it's vans independently. Laidlaw also provides service to Chanhassen, Chaska and Eden Prairie for SMTC. SMTC's policy only allows children 10 years and older to ride Laidlaw's vans without being accompanied. On a monthly basis about 2300 riders use DAR. During the school year about 530 (23%) of these are under 10 years of age. Laidlaw estimates that when school is out this number drops to about 177, or about one-third the rate during the school year. The Status and Use of the "Ten Cent" Fare for Disabled Individuals; Since it's inception, the City's DAR service has offered a ten-cent fare to disabled individuals. My understanding of the intent behind this fare was to provide such individuals with a low cost way of getting to and from work. The fare was also intended to be available to persons enrolled in the school district's English as a second language program. Laidlaw has indicated that since the inception of the service, people who have used it for its intended purpose have demanded that it be available for other destinations. Thus, its use has apparently grown. DAR, like all transit, is a subsidized service. Obviously, the lower the fare, generally speaking the larger the per passenger subsidy. The options available to the Council are; • Clarify who is eligible for reduced fares; • Maintain fares at their current level; • Increase fares. Level of Service; "Curb to Curb" versus "to the Door; A number of requests have been to look at 1) providing service into the townships, and 2) providing service to the door, particularly for young children and particularly in rural residential areas. Council has already given staff direction regarding service into the townships and a future work session may be scheduled to discuss this item with the townships. The liability issue involved in helping riders from the door of their residences to the van, and vice-versa, has already been referred to above. In addition, if the DAR vans were to pick up riders at their doors in the rural residential areas of the City, that would add additional time to each trip, thereby reducing somewhat the number of trips that could be made. Particularly during the winter and spring melt this could also pose practical difficulties, since some driveways may be narrower than those required by the vans and could also be un-passable. Possible Discontinuation of DAR Service After 6 p.m. on Weekdays. and on Saturdays Laidlaw has suggested that ridership on Saturdays is very low for the 5-hour period during which it is provided, and that the City should consider discontinuing the service. During the month of August 1997, and average of about 11 people rode DAR on Saturdays. Similarly, Laidlaw has suggested that DAR ridership drops off substantially after 6 p.m., and warrants considering restricting the hours of service. Service is currently provided until 9 p.m. Possible Discontinuation of One 53S Express Bus SMTC has suggested that one of the morning express buses, and one of the evening buses be deleted based on ridership numbers. For the Council's information, ridership information for August 1997 is attached. Management Contract for Transit Services The City of Shakopee has a "consulting contract" with SMTC for the provision of transit services. A copy of this agreement is attached for the Council's information. The agreement provides for automatic renewal on an annual basis. Among other things, the agreement provides for payment of up to $360,800.00 to SMTC for transit services. It also provides for a yearly payment to SMTC of 10% of the yearly compensation for the purpose of"administrative coordination." This is defined in Exhibit A to the agreement, and includes the following; • Provide and manage computerized dispatch system and phone services • Liaison to service providers • Monitor service to increase efficiencies—recommend improvements and changes • Provide customer service information to Shakopee residents who call SMTC • Receive, investigate, and resolve customer complaints and comments • Review provider invoices for accuracy • Coordinate design and production of schedules, discount coupons and cards, and other printed material relating to standard services • Assist with the design and format of reports to Metropolitan.Council • Keep City of Shakopee current on related regional issues and policy changes. Staff has discussed and received proposals for provision of services and management assistance with SMTC and G. C. Bentley Assoc., Inc. SMTC's proposal provides service cost estimates, and would require negotiation of fees for major planning, management, marketing or other efforts. Mr. Bentley proposes a monthly fee arrangement, totaling $21,000 per year. Provision of transit services would still need to be individually negotiated with service providers. As the City continues to grow, demands for transit service can be expected to grow and change. It is my belief that some administration and management assistance will continue to be necessary given the level of detail involved in transit. Actions Requested: Council is asked to provide direction with regard to whether it wants a policy developed which sets a minimum age for independent ridership on the City's dial a ride vans. Council is asked to provide direction regarding whether it wishes to limit, raise, or eliminate the"ten cent" fare for disabled individuals on dial a ride. Council is asked to provide direction regarding level of service. The Council has previously directed that staff communicate with the townships regarding service to them, and staff will be following through on that direction from Council. Council is asked to provide direction regarding whether to discontinue DAR service after 6 p.m. on weekdays, and entirely on Saturdays. Council is asked to provide direction regarding whether to discontinue one of the 53S express buses. Council is asked for direction on whether to renegotiate the agreement with Southwest Metro Transit, negotiate a management contract for transit services with George Bentley and Associates, or take any other action regarding the management of Shakopee Area Transit Services. I A I NI �, CAI aiawO i i D ' ' irnj I ;DI a1 c>i Ol ci o, D! 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I 41101()11 010• tai NI NI VII VII (JI 0,VII VIS UII (al f}1l 01 Vll(n1 CONSULTING CONTRACT THIS CONTRACT, made and entered into this day of January, 1996, by and between the City of Shakopee, a municipal corporation of t e State of Minnesota, hereinafter referred to as the "City" with offices at 129 South Holmes Street, Shakopee, Minnesota, and Southwest Metro Transit Commission, hereinafter referred to as the "Consultant" with offices at 8080 Mitchell Road, Suite 104, Eden Prairie, MN 55344. WITNESSETH: THAT, WHEREAS, the City of Shakopee desires to engage the Consultant to provide shuttle transit service described in more detail in Exhibit A; and WHEREAS, the Consultant made certain representations and statements to the City with respect to the provision of such services as set forth on Exhibit A and the City has accepted said proposal. NOW, THEREFORE. for the considerations herein expressed, it is agreed by and between the City and the Consultant as follows: 1. Services. The City agrees to engage the services of the Consultant and the Consultant agrees to perform the services hereinafter set forth in connection with projects described in Exhibit A. 2. Addition to Services. The City may add to the Consultant services or delete therefrom activities of a similar nature to those set forth in Exhibit A, provided that the total cost of such work does not exceed the total cost allowance as specified in Paragraph 6 hereof. The Consultant shall undertake such changed activities only upon the direction of the City. Such directives and changes shall be effective only when in written form and prepared and approved by the office of the City Administrator and accepted and countersigned by the Consultant. 3. Exchange of Data. All information, data, and reports as are existing, available and necessary for the carrying out of the work, shall be furnished to the Consultant without charge, and the parties shall cooperate with each other in every way possible in carrying out the scope of services. 4. Personnel. The Consultant represents that the Consultant will secure at the Consultant's own expense, all personnel required to perform the services called for under this contract by the Consultant. Such personnel shall not be employees of or have any contractual relationship with the City except as employees of the Consultant. All of the services required hereunder will be performed by the Consultant or under the Consultant's direct supervision and all personnel engaged in the work shall be fully qualified and shall be authorized under state and local law to perform such services. None of the work or services covered by this contract shall 1 be subcontracted without the written approval of the City provided however City acknowledges that Consultant subcontracts for the delivery of transit services and dispatch operations with third parties and City's execution of this Agreement constitutes its written approval of such subcontracts on a continuing basis with whatever third party or parties as are selected by Consultant. 5. Term. The terms of the Agreement shall commence on September 1, 1994 and end on December 31, 1996 and shall be undertaken and completed in such sequence as to assure their expeditious completion in the light of the purposes of the contract, but in any event, all of the services required hereunder shall be completed as set forth in the schedule for the project which is attached hereto as Exhibit A. This agreement shall automatically be renewed annually upon expiration of the initial term unless notice of termination is given thirty (30) days prior to the end of the term in any given year. 6. Pay. The City agrees to pay the Consultant in accordance with the terms set forth in Exhibit A, which shall constitute complete compensation for all services to be rendered under this contract. It is expressly understood that in no event will the total compensation to be paid to the Consultant under the terms of this contract exceed the sum of$360,800.00 per year for all services required unless specifically and mutually agreed to in writing by both the City and the Consultant. Except as hereinafter provided, no change shall be made unless there is a substantial and significant difference between the work originally contemplated by this contract and the work actually required. A change that increases or decreases the cost of the work by more than 5% shall be considered substantial and significant. In addition to the compensation to be paid to Consultant as set forth on Exhibit A, City shall pay an administrative fee of 10% of the yearly compensation for the purpose of "administrative coordination" as identified on Exhibit A. Payments for compensation and administrative coordination shall be made monthly and payments shall be due on or before the fifth day of each month. The total compensation to be paid as set forth in Exhibit A may be increased by Consultant if the fees it pays to its subcontractors for the delivery of transit service and dispatch operations are increased from the rates in effect on September 26, 1994. In the event the rates paid by Consultant to its subcontractors increase, the compensation under this agreement shall be increased by a percentage equal to the total percent increase in rates charged Consultant by its subcontractors. For purposes of determining any future rate increases, Consultant currently subcontracts with the Metropolitan Council Transit Operations for express transit routes and with National Bus Company for express routes, Dial-A-Ride services, and dispatch operations. The rates charged by the subcontractors to Consultant are listed in Exhibit A. 7. Termination. Either party may without cause terminate this contract upon thirty (30) days prior written notice. In such event, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, and reports or other materials prepared by the Consultant under this contract shall, at the option of the City, become its property, and the Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials. Notwithstanding the above,neither party shall 2 be relieved of liability to the other for damages sustained by the other party by virtue of any such breach of the contract by the other party. 8. Change of Service. In the event the City desires to change the transit services provided to transit customers under this agreement, or terminate any of the services provided hereunder, the City shall be responsible for all advertising costs associated with contacting and informing all transit customers of all such changes and or terminations provided, however, the City may request that Consultant contact and inform transit customers of changes or terminations so long as the parties have agreed upon additional compensation for such services prior to Consultant being obligated to perform that service. 9. Conflicts. No salaried officer or employee of the City, and no member of the City Council shall have a financial interest, direct or indirect, in this contract. A violation of this provision renders the contract void. Any federal regulations, and applicable state statutes shall not be violated. 10. Assignment. The Consultant shall not assign or transfer any interest in this contract, without prior written consent of the City thereto. 11. Confidentiality. The public release of all reports, data or similar information given to or prepared or assembled by the Consultant under this contract shall be governed by Minnesota Statutes Chapter 13.01 to 13.99. 12. Interest. The Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of services to be performed under this contract. The Consultant further covenants that in the performance of this contract no person having such interest shall be employed. 13. Discrimination. The Consultant agrees in the performance of this contract not to discriminate on the ground or because of race. color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation, or age, against any employee of the Consultant or applicant for employment, and shall include a similar provision in all subcontracts let or awarded hereunder. 14. Independent Contractor. The Consultant is an independent contractor and nothing contained herein shall constitute or designate the Consultant or any of the Consultant's agents or employees as agents or employees of the City of Shakopee, Minnesota. 15. City Benefits. The Consultant shall not be entitler sto any of the benefits Compensation Program established for the employees of the City nor be covered by the Worke of the City. 16. Liability. Consultant shall maintain insurance coverage with responsible insurance companies licensed to do business in the State of Minnesota in such amount for comprehensive 3 general public liability or similar insurance. The Consultant shall furnish to the City upon written request, full information and written evidence as to the insurance maintained by the Consultant. In addition, Consultant shall name City as an additional insured and agree to annually provide City with evidence of insurance naming City as an additional insured. 17. Notices. All notices required or permitted hereunder and required to be in writing may be given by first class mail addressed to the City and the Consultant at the address shown above. The date of delivery of any notice shall be the date falling on the second full day after the day of its mailing. 18. Jurisdiction. This contract and every question arising hereunder shall be construed or determined according to the laws of the State of Minnesota. ecuted e day and year first above written. { SOUTHWEST ETRC(TRANSI COMMISSION CITY OF .A3KQPE4„MINNESOTA "NM •iane Harbcrts - .yor 11, fl-`<, 44i o-1". 1(6,1 l / By Alr City Administra or By C),,,.„) a)- ().961 city Clerk r rfrlsmtclshakopeelshakopee.con 4 EXHIBIT A Addendum to Consulting Contract between City of Shakopee and Southwest Metro Transit Commission I. SERVICE TYPE: Commuter Shuttle Service Features: • Service between Shakopee and the Eden Prairie Center • Bus connections to downtown Minneapolis, the Mall of America Transit Hub,the Southdale Transit Hub, and Hennepin Technical College are available at the Eden Prairie Center • Operates Monday through Friday excluding Holidays • Two morning trips that focus on 7:30 and 8:00AM work starts in downtown Minneapolis • Two afternoon trips that focus on 4:30 and 5:00PM work stops in downtown Minneapolis Service Cost: (hourly rate excluding revenue credit) • September 1994 - July 1995: $130.43 hr. Excludes Public Vehicle Capital Service operated by MCTO Daily Cost is approx. $140. Annual Cost is approx. $36,400 • August 1995 -December 1996: $33.64/hr. Vehicle Capital does not apply Service operated by National School Bus using SMTC owned vehicles Daily Cost is approx. $80 Annual Cost is approx. $20,800 Service Period: Initial project period is September 1994 - December 1996 Service Locations: Existing parking lot at 2nd Avenue and Lewis St. Future Opportunities: • Add non-peak time shuttle trips • Connections to Normandale Community College • Reverse Commute service via connections with SMTC mutes • Expanded service connections to Bloomington and MN Valley Transit Authority service area II. SERVICE TYPE: Dial-A-Ride Service Features: • Demand Responsive (reservation required)transit- address to address • Operates Monday through Friday 6:30AM- 8:30PM,Saturdays 9:00AM- 1:00PM excluding Holidays 5 EXHIBIT A (continued) Service Cost: (hourly rate excluding revenue credit) • April 1995 - September 1995: $22.15/hr. ($25.00/hr. for lift equipped bus) Capital Cost=$2130/month Weekly Cost is approx. $4,640 Total annual cost is approx. $267,000 • November 1995 -December 1996: $28.93/hr. (revised Driver's Benefit Package) Capital Cost is approx. $3,000/month Weekly Cost is approx. $5,825 Total annual cost is approx. $340,000 Service Period: Initial project period is April 1994 through December 1996 Service Locations: Operates within the boundaries of the City of Shakopee Future Opportunities: Expand connections to SMTC Dial-A-Ride III. ADMINISTRATION OF SERVICE Southwest Metro Transit would assist the City of Shakopee in the management and coordination of transit operations. SMTC would bill the City of Shakopee for out-of-pocket expenses and direct service costs plus a fee for administrative coordination. The administrative fee is calculated at 10% times the service provider's operating and capital service cost, excluding revenue credit Copies of provider invoices and ridership data are to be attached to monthly invoice(s) from SMTC. Administrative coordination services are to include: • Provide and manage computerized dispatch system and phone services • Liaison to service providers • Monitor service to increase efficiencies -recommend improvements and changes • Provide customer service information to Shakopee residents who call SMTC • Receive,investigate, and resolve customer complaints and comments (documentation to be provided to City of Shakopee) • Review provider invoices for accuracy • Coordinate design and production of schedules,discount coupons &cards, and other printed material relating to standard services • Assist with design and format of reports to Metropolitan Council • Keep City of Shakopee current on related regional issues and policy changes 6 G.C. BENTLEY Assoc., INC. 14292 Calf View Drive Cinernment and Legislative Affairs,ConsultingEden Prairie,MN 55356 ear Phone (612)937-3502 Pa: (612)937-3504 PROPOSAL TO PROVIDE TRANSIT MANAGEMENT ASSISTANCE FOR THE CITY OF SHAKOPEE INTRODUCTION G.C. Bentley Assoc., Inc.,a transportation and transit consulting firm with ten years extensive experience in opt-out transit operations,policy,finances and service development,including prior consulting work for the City of Shakopee,proposes to provide transit management assistance to the City of Shakopee for the Shakopee Area Transit system This service could begin immediately,and would coincide directly with work currently being done for the Shakopee Area Transit System G.C.Bentley Assoc.,Inc. is very familiar with the Shakopee system and would not require any start-up time to begin work. SCOPE OF WORK 1 he following Scope of Work is proposed: • Assist City staff in operations of transit system -Work closely with staff in providing primary system operations oversight -Ilcip assure smooth delivery of day-to-day transit services -Provide periodic service monitoring -Work with contracted service providers and the City to ensure contract compliance and system efficiencies Work as liaison with the Metropolitan Council and other agencies to help achieve transit operational goals, to provide input toward regional transit policy development,to help gain approval of City transit requests and to help assure transit operations financial and operational integrity • Prepare transit Management Plan and Budget,including any amendments,and help achieve approval • Work with staff in providing transit fiscal and service efficiency analyses on a monthly basis -Help in preparation of monthly financial reports -Prepare budget reports -Prepare service efficiency reports -Help assure compliance with Metropolitan Council and City reporting requirements • Assist with development and implementation of transit marketing plans and programs • Work with staff in developing new transit service plans and in identifying long-term transit system needs -Help identify and plan for transit service enhancements -Prepare RFPs for contracted transit service provision as necessary -Assist in new transit service implementations and provide ongoing new service monitoring,recommending service adjustments as needed -!help develop long-term system operations and capital needs,including planning for park and ride lots,vehicles, and support facilities -Assist in identifying and procuring funding for long-term operations and capital needs - Assist in development of local transit policies GC BENTLEY ASSUL . ILL ep uo , ( i.uu r .A.)51 TRANSIT MANAGEMENT PROPOSAL CITY OF SHAKOPEE Page 2 • Provide ongoing communications -Communicate regularly with City staff - Provide communications and reports to the City Council and any advisory boards and committees as needed -Develop customer communications program,including rider alerts and periodic newsletters -Provide information on an ongoing basis regarding regional transit activities FEES G.C. Bentley Assoc.,Inc. proposes to conduct the Scope of Work,as identified above,for a fee of$1,750.00 per month plus necessary and approved expenses for a period of one(1)year(12 months),a period to be automatically renewed for succeeding one year periods unless otherwise terminated. Fees may be renegotiated within(i0 days of the end of each one year period. Services under this proposal may be terminated at any time by either party with a 30 day written notice. Additional services outside of the Scope of Work may be provided based upon agreement between G.C. Bentley Assoc., Inc. and the City of Shakopee of fees and scope of work. G.C. Bentley Assoc..Inc.,and its employees shall not be considered employees of the City of Shakopee for any purpose, including wages,salaries,fringe benefits,FICA taxes,worker's compensation and unemployment compensation contributions required by law. G.C.Bentley Assoc., Inc. shall be considered an independent contractor as that term is used and applied under the laws of the State of Minnesota and the United States of America. CONCLUSION On behalf of G.C.Bentley Assoc., Inc. 1 appreciate the opportunity to present this proposal for transit management services to the City of Shakopee. If I you have any questions or would like additional information please let me know. Thank youl Sincerely, George C. Bentley President June 13, 1997 let.0 4SOUTHWEST METRO TRANSIT 11, Phone 612.934.7928 8080 Mitchell Road,Suite 104,Eden Prairie,MN 55344 FAX 612.949.8542 September 9, 1997 i I ( L Lj'1L Mr. Michael Leek Sep i 0 1997 Community Development Director City of Shakopee 129 Holmes Street South Shakopee, MN 55379 Dear Michael: Thank you again for coming to our office last week to discuss the contract situation between the Southwest Metro Transit Commission (SMTC) and the City of Shakopee. As you are aware, SMTC and our service provider Laidlaw Transit Services , Inc. (LTS)have been operating Shakopee dial-a-ride service for quite some time past the contract expiration date. The purpose of this letter is to provide you with a formal response for extending our current arrangement for transit contract administration for the City of Shakopee. Both SMTC and LTS are looking forward to continuing our service for Shakopee in the future. System Benefits: We have appreciated the relationship that has been developed between SMTC and the City of Shakopee. We believe the benefits that the SMTC and LTS bring to the system include: Performance Monitoring. Statistical data is monitored monthly with the emphasis put on providing superior customer service while optimizing productivity within the system. Computerized Dispatching. Our computerized dispatch system is the most advanced system on the market. It allows for immediate feedback from the driver to the dispatcher so that analysis of the best possible and most cost effective outcomes for each passenger trip can be attained. Staffing Levels. Shakopee has been able to capitalize on the benefits derived from the staffing levels needed to carry out the SMTC program. These benefits are realized at many levels such as dispatching, call taking, customer service representation, and safety and training. Superior Experience. Our project staff have significant experience with dial-a-ride service and specifically, Shakopee operations. SMTC and LTS have the resources available to meet all the needs of the City of Shakopee with the focus being on customer service and safety. Quality Drivers. The dispatchers and drivers assigned to the Shakopee system know the customers and their riding needs. Superior Maintenance. Because of the economies the Shakopee system receives by being tied in with the SMTC service, the vehicles are always in top running order and breakdowns and loss of service is kept to a minimum. Vehicles. The Shakopee 53 S service is provided with vehicles owned by SMTC. AJoint Powers Agreement by and between the cities of Chanhassen. Chaska,and Eden Prairie. SOUTHWEST METRO TRANSIT Phone 612.934.7928 8080 Mitchell Road,Suite 104,Eden Prairie,MN 55344 FAX 612.949.8542 September 9, 1997 Letter to M. Leek Page 2 Proposed Vehicles: SMTC and LTS understand the need for vehicle reliability in order to provide the safest and most dependable service. We are pleased to propose new Champion Challenger buses that will be ordered immediately upon receiving notice to proceed. These vehicles will have ten ambulatory and two wheelchair positions. The fixed month vehicle depreciation/capital costs would be $4,092 which the City of Shakopee would be eligible for reimbursement through the Metropolitan Council's Private Vehicle Capital funding. *Note: the vehicle depreciation rate is based on the execution of a five year contract. Should Shakopee choose to enter into a shorter term contract, the vehicles and vehicle depreciation charge would need to be re-negotiated. Proposed Rates: The rates SMTC/LTS proposes are as follows: Contract Period Cost per Service Hour 9/1/97-8/31/98 $35.50 9/1/98-8/31/99 $36.75 9/1/99-8/31/00 $38.00 9/1/00-8/31/01 $39.40 9/1/01-8/31/02 $40.75 It should be noted that the proposed rate includes all service and general administration costs. It does not include any costs for major planning, management,marketing, schedule design or printing, or the development of Shakopee's management plan and budget. SMTC/LTS would be willing to provide some assistance to the City of Shakopee for the aforementioned tasks at no additional charge. Any significant time spent on the tasks would have to be negotiated separately. Thank you for the opportunity to provide this proposal. We enjoyed working with you in the past and hope to continue our relationship in the future. Sincerely, Len Simich, AICP Executive Director A Joint Powers Agreement by and between the cities of Chanhassen,Chaska,and Eden Prairie. G.C. BENTLEY ASSOC., INC. 14292 Golf View Drive Government and Legislative Affairs,Consulting Eden Prairie,MN 55346 Phone (612)937-3502 Fax (612)937-3504 November 3, 1997 MEMO TO: Michael Leek, City of Shakopee RI RED NOV 5 1991 � FROM: George Bentley A SUBJECT: Shakopee Area Transit Management Proposal Len Simich, Executive Director of Southwest Metro Transit, John Mathews, Manager of Laidlaw Transit Services, and I met last Friday to discuss a coordinated approach to proposing management services for Shakopee Area Transit. We identified an approach that we believe is equitable and makes good sense. As you know, Southwest Metro Transit provides operating management oversight for the Shakopee Dial- A-Ride and the Route 53S service for a management fee of 10% of the invoice amount charged by Laidlaw, the transit operating company. For this fee Southwest Metro provides dispatch and phone services, serves as a liaison to Laidlaw, manages service matters such as schedules, coupons and cards and customer complaints, and provides general service oversight. Their management does not include the Vanpool program. The computerized dispatch equipment, the telephone system and the vehicle operating the Route 53S service are all owned by Southwest Metro. Laidlaw Transit Services provides the direct operations of Dial-A-Ride and Route 53S, and operates the dispatch and phone equipment owned by Southwest Metro. They are the service provider for these services. Laidlaw does not have a contract with Shakopee at the present time, but rather operates via an agreement between Southwest Metro and Shakopee that makes Southwest Metro the contract holder with Laidlaw. G.C. Bentley Assoc., Inc., my company, has proposed to provide broad management services for Shakopee Area Transit, including system operations oversight, monitoring of contract compliance between Shakopee and Southwest Metro and between Shakopee and Van Pool Services, Inc. (the contracted provider for Vanpool services), provision of liaison services between Shakopee and the Metropolitan Council, preparation and monitoring of the Management Plan and Budget, assistance with monthly ridership and financial reports(including reports to the Metropolitan Council), assistance with transit marketing, provide help in developing new transit services and in identifying long term transit system needs, and providing ongoing communications with City staff, the City Council, customers and the region. A joint proposal between Southwest Metro and Laidlaw was submitted to Shakopee to continue existing service operations and service management. Another proposal was submitted by me to provide the Michael Leek City of Shakopee. Page 2 • services listed above. The City has been in the process of reviewing those proposals and determining future management options. The concept of a joint collaboration between Southwest Metro Transit, Laidlaw Transit Services and G.C. Bentley Assoc. makes a great deal of sense for management of the Shakopee Area Transit system. This collaborative effort would cover all aspects of transit operations and oversight, and would provide a highly experienced and effective management capability to bear on the Shakopee transit program. One of the problems encountered with the previous proposal from Southwest Metro and Laidlaw was cost. As a result of this new agreement operations costs would have risen and might have resulted in the inability of Shakopee to maintain all current transit operations and would have sharply curtailed future service enhancement options. It also provided only limited management, instead of the broader management services that the total system and reporting structure requires. One of the problems with the proposal from G.C. Bentley Assoc. was the reality that without Southwest Metro Transit in the management mix a new service contract would have to be negotiated with Laidlaw or another provider(there are really few other choices) and dispatch capabilities would have to be provided either by contract with Southwest Metro or through some other source. In addition, the Southwest Metro Transit vehicle that operates the Route 53S would have to be replaced. The collaborative management approach addresses all of these problems. Both Southwest Metro Transit and Laidlaw Transit Services would propose to reduce their fees from those previously proposed by approximately$10,000 each. In addition, G.C. Bentley Assoc. would propose to reduce its smaller fee by$3,000. Vehicle and dispatch needs would be addressed. Total system management and oversight would be provided, as well as budget preparation and monitoring, financial and statistical preparation and reporting, and liaison capabilities with the Metropolitan Council. The net result would be a greatly enhanced management capability for the Shakopee area Transit system without an appreciable increase in cost. If the City of Shakopee is interested in this approach a specific proposal can be prepared. Or if the City chooses to adopt the concept at this time, in the interest of having things in place before the Local Levy Option expires at the end of the year, the specifics can be brought for consideration later in November or in December. If you have any questions or would like further information please let me know. NOV-02-97 05 :22 PM LTS U098 EDEN PRAIRIE 6129498302 P. 01 November 3, 1997 Mr. R. Michael Leek Community Development Director City of Shakopee 129 Holmes Street South Shakopee,MN 55379-1351 Fax#612-445-6718 Dear Michael: Thank you for your letter of October 30, 1997. I have spoken with the drivers and dispatchers regarding the complaint you received. They assure me they are not giving out any Information and are referring any questions to you. Regarding the standing order policy, we are still taking standing order requests for riders who ride at least 3 times per week at the same time to the same place. I believe that the call you received was for a child who only rides once or twice per week end the parent is instructed to call in weekly. We do take reservations 7 days in advance so there is plenty of time to call. I am also attaching a list of policies I would like you to review and present to the Council. I will be attending the meeting on November 51'. Please let me know the time of the meeting and if you need any additional information. Sincerely, A2\603\}..4 Kathy Kottke Project Manager Enclosures(3) NOV-02-97 05 :22 PM LTS U098 EDEN PRAIRIE 6129498302 P. 02 3 • SHAKOPEE DIAL A RIDE PROPOSALS FOR SERVICE 1. RIDERS UNDER 10 YEARS OF AGE MUST BE ACCOMPANIED BY AN ADULT. THIS CHANGE IS NECESSARY DUE TO THE ADDED RESPONSIBILITY IT PUTS ON THE DRIVERS,THE ADDED COST OF INSURANCE AND THE LACK OF COOPERATION BY PARENTS, DAYCARES AND SCHOOLS. THIS PROBLEM COULD ELIMINATED IS THERE WERE AN ADULT PRESENT ON THE BUS FROM A SCHOOL OR DAYCARE FACILITY. 2. STANDING ORDER RIDERS MUST RIDE AT LEAST 3 TIMES PER WEEK FROM THE SAME PICK-UP TO THE SAME DROP-OFF AT THE SAME TIME. THIS POLICY IS CURRENTLY IN EFFECT AND HELPS TO PREVENT A HIGH DENIAL RATE. RIDERS WHO RIDE LESS THAN 3 TIMES A WEEK CONSISTENTLY ARE ASKED TO CALL IN ON A WEEKLY BASIS. WE BOOK RIDES 7 DAYS IN ADVANCE SO IT GIVES THEM ENOUGH TIME TO PLAN IF A RIDE IS NOT AVAILABLE. RIDES ARE ISSUED ON A FIRST COME/FIRST SERVE BASIS. 3. STANDING ORDER REQUESTS MUST BE ACCOMPANIED BY A$10.00 PAYMENT. DUE YEARLY AND REFUNDABLE IF WE ARE UNABLE TO PROVIDE THE RIDE THEY NEED. THIS WOULD ELIMINATE THE HIGH TURNOVER IN STANDING ORDERS. MANY RIDERS CHANGE JOBS OR JOB TIMES FREQUENTLY AND ASK FOR A NEW STANDING ORDER EACH TIME. APPROVING A STANDING ORDER TAKES APPROXIMATELY 3 DAYS FROM THE DATE OF THE REQUEST. IF THIS IS NOT A VALID REQUEST, THAT IS TIME WASTED I HAVE CHECKED WITH OTHER SYSTEMS IN THE REGION AND ALL ARE EITHER DOING IT NOW OR CONSIDERING IT IN THE NEAR FUTURE. NOV-02-97 05 :24 PM LTS 0098 EDEN PRAIRIE 6129498302 P. 01 4. PAYMENT IS REQUIRED AT TIME OF RIDE,NOT LATER. CHARGING OF RIDES IS NOT PERMITTED. AT LEAST 3-5 TIMES PER DAY A DRIVER ARRIVES TO PICK UP A CUSTOMER AND THEY EITHER DO NOT HAVE THEIR MONEY, HAVE LOST THEIR PUNCH CARD OR SAY THEY WILL BE ABLE TO PAY LATER THAT WEEK. THIS THROWS THE WHOLE ACCOUNTING SYSTEM OFF AND WE JUST NEED VERIFICATION THAT IT IS APPROPRIATE TO DENY THAT RIDE UNLESS THE RIDE IS PAID FOR UP FRONT. 5. .10 CENT RIDES ARE NO LONGER AVAILABLE. THIS PROGRAM IS A GROWING PROBLEM AND NEEDS TO BE CLARIFIED. THE .10 CENT PROGRAM WAS ORIGINALLY INTENDED TO HELP THE QUALIFYING SPECIAL NEEDS RIDERS WITH A FARE BREAK, WE SUGGEST THAT A SPECIAL RATE BE DEVELOPED TO HANDLE THOSE RIDERS WITH A MCTO LIMITED MOBILITY CARD OR THOSE WHO HAVE RECEIVED CERTIFICATION THROUGH METRO MOBILITY. 6. VEHICLES CAN ARRIVE FOR A RIDE 10 MINUTES BEFORE TO 10 MINUTES AFTER APPOINTED TIME. THE VEHICLE WILL WAIT THREE MINUTES BEFORE NO-SHOWING THE RIDER. PERSONS NO-SHOWED WILL THEN HAVE TO CALL IN TO RESCHEDULE THEIR RIDE AND WILL IL BE CHARGED A SAME DAY FARE. CURRENTLY RIDERS ARE ALLOWED TO NO-SHOW AND HAVE A BUS SENT BACK AT THE SAME FARE. THE INCREASE TO SAME DAY FARE FOR NO SHOWS WILL HOPEFULLY SOLVE THE PROBLEM WE ARE CURRENTLY HAVING WITH NO-SHOW FREQUENCY. 7. SAME DAY FARES SHOULD BE MORE THAN DAY AHEAD RESERVATIONS. WE SUGGEST AN INCREASE IN SAME DAY FARE TO ENCOURAGE CALLING AHEAD FOR RIDES AND DISCOURAGING NO-SHOWS. CALL IN ADVANCE FOR RIDES WOULD IMPROVE THE NUMBER OF CALLS FOR SAME DAY RIDES AND WOULD FREE UP MORE PHONE LINES. 8. HOURS OF OPERATION WILL BE: MONDAY-FRIDAY-6:00 AM-7:00 PM SATURDAY-NO SERVICE CURRENT RIDERSHIP DOES NOT SHOW THE NECESSITY TO KEEP BUSES OUT UNTIL 9:00 PM OR ON SATURDAY. THE AVERAGE RIDERSHIP AFTER 7:00 PM IS 3, AND THE AVERAGE RIDERSHIP ON SATURDAY DURING A 4 HOURS PERIOD IS 6. THIS ONLY INCREASES THE SUBSIDY PER RIDER. / November 1, 1997 Mr. Jeff M. Henderson 519 West 5th Ave. Shakopee, MN 55379 Dear Jeff: Thank you for taking the time this past Wednesday to converse with me regarding the 53S shuttle bus issue. I am enclosing the petition in the event my schedule wilt prohibit me from attending next Wednesday's Council meeting. In review of the situation it appears there has been some talk of eliminating two of the four 53S bus routes, the 6:54 a.m. and 5:19 p.m. One of the major reasons for my move to Shakopee, three years ago, is the small town environment with the convenience of commuting to Minneapolis. I am concerned about the proposal of eliminating a couple of the routes. Taking the projected growth numbers for Scott County and Shakopee into consideration, t believe it is a necessity to maintain at least three of the four routes. A majority of the riders use the routes which may possibly be eliminated. If anything, we need to delete the 6:24 route, for hardly anyone departs at that time. The day is already too long, let alone apply another half an hour on both sides of the riding times. It would be appreciated if the council could at least maintain the one morning route, 6:54 a.m. and maintain the two evening routes of 5:19 and 5:54 p.m.. It is a necessity to have both evening times available in the event we miss the 5:19 or need to remain at work for another half hour. As time goes by I foresee more riders participating in the 53S. I can almost guarantee a substantial toss of ridership with the city's proposal. In the long run we will be back to square one with new residents wondering why Shakopee has a lack of routes. Thank you for your time and consideration. Sin ret , obert L. Wettergren cc: Ms. Jane Dubois Mr. Robert Sweeney Mr. Clete Link Mr. Burl A. Zorn Petition We prefer to maintain all 53S bus routes without any changes or reductions. Should reduction be decided, we encourage the council to review the following (option 1 most favorable and option 4 least favorable): Preference 1 - (Currently) 6:24 a.m. departure from Shakopee (maintain 6:54 a.m. departure from Shakopee (maintain) 5:19 p.m. departure from the Eden Prairie Center (maintain) 5:48 p.m. departure from the Eden Prairie Center (maintain) Preference 2 - If rider misses the 5:19 p.m. they have an alternative, the 5:48 p.m., in order to get home. 6:24 a.m. departure from Shakopee (eliminate) 6:54 a.m. departure from Shakopee (maintain) 5:19 p.m. departure from the Eden Prairie Center (maintain) 5:48 p.m. departure from the Eden Prairie Center(maintain) Preference 3 - Majority of riders use the 6:54 a.m. and 5:19 p.m.. . Too long of a day, for riders, with council's proposal of 6:24 and 5:48 p.m.. 6:24 a.m. departure from Shakopee (eliminate) 6:54 a.m. departure from Shakopee (maintain) 5:19 p.m. departure from the Eden Prairie Center(maintain) 5:48 p.m. departure from the Eden Prairie Center (eliminate) . Preference 4 - Substantial loss of ridership will occur. 6:24 a.m. departure from Shakopee (maintain) 6:54 a.m. departure from Shakopee (eliminate) 5:19 p.m. departure from the Eden Prairie Center (eliminate) 5:- : p.m. • pa► urs rom the Eden Prairie Center(maintain) / Ai Liz ;u r 4 ' _e I��7C �( ,. 4.--‘..---- - - .-ed, _ )4" 6-174.15;i0,4,0. ' / l e t � � ® ,►fi/r, �I d/ IS 130S i 407 d e6i C , te, e, W sonnt wiic. / . X4,eopee Ave &. /, Candy Kragthorpe 1017 Legion Street Shakopee, MN 55379 Bob Sweeney 506 South Holmes Street Shakopee, MN 55379 October 31, 1997 Dear Councilor Sweeney: In regard to the City's mass transit issues,please consider the following perspectives from a daily commuter to Minneapolis. For most of my career, I have worked either in Shakopee or some location"this" side of the river. However,job opportunities and salary ceilings have proven to be limiting for me in my field in this area. This summer, I accepted a position with the Minnesota Department of Health on the University of Minnesota campus. I had commuted by bus from Shakopee to Minneapolis in the 70's and decided to research my public transportation options again this time around. I expected my options to have improved in the past 20 years. There was one express bus from Shakopee to Minneapolis and back at that time (departure and arrival times about 6 AM and 6 PM). As a life- long resident of Shakopee, I am well aware of the significance of the new 169 bypass for this community and expected my search for transportation to be relatively simple. However, I first discovered that there was no telephone contact listed in either the telephone directory or the local newspaper. I started my research with the MTCO, who referred me to SW Metro. I was very disappointed to learn that there were only two shuttles each way going to and from Eden Prairie in the morning and evening. This meant I would need to take three different buses to my destination,plus my eight-hour work day would extend to 11 or 12 hours, depending on which bus I took. We have not come very far since the 70's. I then remembered seeing van pools on my summer early morning walks. Again, I could not locate a phone number to contact. A friend saw a number on a van pool on the highway and relayed the information to me. The van pool company referred me back to the City. Again, how disappointed I was to learn this program was coordinated through the city. How would one know this? I then attempted to call Michael Leeks, whom I was told was the program coordinator. I called and left two messages for him within a two week period, with no response. I then spoke with someone else at his office and, shortly thereafter, he phoned me. However, during this call,he said he had no information with him about the van pool program and the little information he did share turned out to be incorrect. He said he would contact the current drivers and call me back. It is well over one month later and he has still not called me back, despite my leaving two voicemail messages for him. With assistance from the van pool company, I have contacted two of the local van pool drivers myself. Throughout all of this, I have been riding the shuttle and buses. If you have ever taken public transportation, I need not tell you how imperative it is to have at least two buses on each route. Depending on weather and the other bus schedules (which vary daily), it can be impossible to make one connection consistently. Also,the current schedule already forces the commuter into an 11-12 hour work day, which is unreasonable for riders with families or other commitments. Also, our current ridership includes two people with developmental disabilities, who I believe do not have the same flexibility in their work schedules as some of us with salaried positions. I am concerned for their increased vulnerability if made to spend even more time waiting for bus connections or, even worse, missing a bus entirely. Lastly, I hope the City will attempt to make a renewed commitment to promote and support mass transportation options for its residents. In light of the Governor's recent initiative to promote telecommuting, I expect the City to make a similar commitment to reducing highway congestion and search for ways to encourage more viable access to mass transportation for its residents. Thank you for your time and consideration. Sincerely, Candy Kragthorpe cc: Mayor Jeff Henderson /y, c . / . CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Snow Plowing Policy Adoption DATE: November 5, 1997 INTRODUCTION: Attached is a resolution adopting a snow plowing policy for the City of Shakopee and this policy is also attached for Council review and consideration. BACKGROUND: The League of Minnesota Cities Insurance Trust recently has had several work shops in regard to Cities establishing a snow plowing policy to minimize the City's liability, and to establish the City's policy in regard to snow and ice removal. Staff did attend these work shops and from these work shops and review of other Cities policies has drafted a snow plowing policy for Council review and consideration for adoption. The City, in previous years, adopted resolutions which adopted a snow and ice control plan which that was prepared by Public Works employees in past years. The main difference between the proposed policy being requested for adoption and the previous snow and ice control plan is that the procedures which relate to more of the technological information in implementing the City's policy is removed from this policy adoption. The reason being that the technological changes and procedures for implementing the snow and ice control can change from year to year due to advances in the technology area. Staff is proposing to adopt just the policy statements from the previous snow and ice control plan which can be changed as necessary by Council resolution. The procedures to implement these policies adopted by Council can be changed as necessary by staff without having to go through a year to year Council policy adoption. The Snow Plowing/Ice Control Policy that Council is being asked to review is the essentially the policy statements in previous snow and ice control plans, and instead of 30 pages of information, the policy statement is a 6 page document. Staff has drafted this policy based on previous snow and ice control plan policies and past practices. Council should review these policy statements and if there are any policy revisions desired at this time, Council should discuss and provide direction for policy modifications. ALTERNATIVES: 1. Adopt Resolution No. 4786, a resolution adopting a Snow Plowing/Ice Control Policy for the City of Shakopee. 2. Deny Resolution No. 4786. 3. Table for additional information. RECOMMENDATION: Staff recommends Alternative No. 1, to adopt a Snow Plowing/Ice Control Policy, which contains only the policies which relate to snow and ice control in the City of Shakopee on its streets and sidewalks. This recommendation is based upon the League of Minnesota Cities Insurance Trust recommendation, to minimize the City's liability and to clarify the City's policies in areas that are affected by snow and ice removal. ACTION REQUESTED: Offer Resolution No. 4786, A Resolution Adopting the Snow Plowing/Ice Control Policy for the City of Shakopee and move its adoption. :ruce Loney Public Works Director BL/pmp MEM4786 RESOLUTION NO. 4786 A Resolution Adopting A Snow Plowing/Ice Control Policy For The City Of Shakopee WHEREAS, the City Council of Shakopee believes that it is in the best interest of the residents for the City to assume basic responsibility for control of snow and ice on City streets; and WHEREAS, the City will provide such control in a safe and cost effective manner, keeping in mind safety, budget, personnel and environmental concerns; and WHEREAS, the Public Works Department is given the responsibility for ensuring adequate snow and ice control on City streets; and WHEREAS, the_Public Works Department has prepared an attached Snow Plowing/Ice Control Policy. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: that the attached Snow Plowing/Ice Control Plan is hereby adopted for the City of Shakopee. NOW, THEREFORE BE IT FURTHER RESOLVED: that this resolution supersedes Resolution No. 3888 which adopted the 1993-1994 Snow and Ice Control Plan. Resolution No. 3888 is hereby repealed. Adopted in session of the City Council of the City of Shakopee,Minnesota, held this day of , 1997. Mayor of the City of Shakopee ATTEST: City Clerk CITY OF SHAKOPEE SNOW PLOWING/ICE CONTROL POLICY PURPOSE AND NEED FOR POLICY The City of Shakopee, being a growing City, needs to annually review and adopt a policy regarding efficient and timely removal of snow and control of ice in order to best provide for safe travel for the greatest number of persons. This policy outlines the responsibility within the Public Works Department in order to accomplish this goal. POLICY Each year the Public Works Department prepares a map of the City showing the City maintained street system. The City is divided into routes in which ice control and snow removal will be performed by City employees and private firms under contract to the City. The routes are periodically revised to correspond with budgetary, equipment and personnel resources available. Equipment is assigned to each route based on availability and the effort required for the control of ice and snow. The start of ice and snow control operations for any storm is dependent upon immediate and anticipated conditions. The most critical time periods are weekday morning and evening rush hours. When feasible, the City will attempt to remove ice and snow from City maintained major streets prior to these rush-hour periods. Normally major streets and hazardous areas are done first. Once the priority areas are plowed and opened,the remaining streets in the residential, commercial, and industrial areas will be plowed and sanded. - PROCEDURES AND RESPONSIBILITY The Maintenance Division, with the assistance of the Police Department, monitors street conditions and is responsible for making the decision to call out personnel and equipment to begin snow and ice control operations. The Public Works Supervisor has the responsibility of determining plow routes and sequencing of operations, in accordance with priorities as established in Exhibit A. The Supervisor shall retain the latitude to adjust sequencing or route assignments based on storm conditions, equipment availability and/or other conditions warranting changes. EXCEPTIONS In the event of equipment failure, extreme snowfall or other unanticipated events including the necessity of resting snowplow crews, deviation from these standards may be appropriate. STORM CLASSIFICATIONS AND PLOWING OPERATIONS Class A Storm: A Class "A" snowstorm is one with an accumulation of less than 2" in depth. This storm consists of a sanding/salting operation only and does not normally involve plowing. During a Class "A" storm, some intersections, hills and curves are sanded where needed. Critical areas, such as areas that historically freeze or drift, are also sanded. Ifthe storm is a freezing rain or an ice storm, additional areas may be sanded. Class B Storm: A Class "B" snowstorm has an accumulation of between 2" and 8". This storm involves both a plowing and a sanding operation. A Class "B" snow storm alert initiates the full snow plowing operations of the Public Works Department. All Equipment Operators are dispatched to their respective routes. A normal plow operation starts at 2 A.M. All main arterial, collector streets and snow emergency routes will be completed first. Following those, the local streets, cul-de-sacs and downtown parking lots are done. Class C Storm: This storm is one of extremely heavy snowfalls, consisting of 8" or more in depth occurring over a period of 24 hours or less. During these storms, accompanying high winds also create visibility problems for motorists and our snowplow operators. A Class "C" storm is the most severe and could have life threatening situations arise, if emergency vehicles become bogged down and paralyzed. Operators and equipment are dispatched to the same routes as with a Class"B" storm. The most effective way to contend with a major snowstorm is to plow with the storm as it continues. This means that often we are plowing streets several times during the duration of the storm. PARKING The City of Shakopee has adopted various ordinances for parking restrictions, which are modified periodically. HAULING OF SNOW Where there is no room on the boulevard for snow storage and where accumulated piles of snow create a hazardous condition,the City shall remove the snow by hauling. Operations will not commence until other snowplowing operations have been completed. Snow removal operations shall be at the discretion of the Public Works Director and/or Supervisor. ALLEYS Alleys will be plowed with an accumulation of not less than 4". Downtown alleys will be sanded at each plowing;residential alleys shall only be sanded when conditions warrant it. SAND AND SALT The City is concerned about the effects of sand and salt on the environment and will limit its use for that reason. Therefore, it is the policy of the City to utilize a sand and salt mixture in the ratio of approximately 5 parts sand and 1 part salt. This provides for traction, but is not intended to provide bare pavement during winter conditions. Application of the sand/salt mixture is generally limited to priority routes, steep grades and high volume intersections. Application is limited on lower volume streets and cul-de-sacs. Application mixtures may vary as conditions warrant. The City cannot be responsible for damage to grass caused by the sand/salt mixture and therefore will not make repairs or compensate residents for salt damage to turf areas in the street right-of-way. SIDEWALKS The Public Works Department maintains sidewalks on collector streets, as per Council direction on December 6, 1994. Due to limited personnel available, the department will plow these sidewalks only after the majority of the streets are plowed. The designated trails and sidewalks should be cleared as thoroughly as possible but need not be cleared of all ice and snow nor need they be maintained to bare pavement. MAILBOXES In those instances in which the U.S. Postal Service does not provide door to door delivery, it is necessary for property owners to install mailboxes on City owned right-of-way immediately adjacent to the street curb. While the installation of mailboxes on City owned right-of-way is permitted, the mailbox owner assumes all risk of damage except where a mailbox is damaged through contact by snow removal vehicles. If a mailbox is damaged due to direct contact by a snow removal vehicle,the City, at its option will repair or replace. If a mailbox is damaged due to indirect contact, including the force of snow generated by the snow removal vehicle,the City will assume no responsibility. The City's plow operators are instructed to get as close to the curb or gravel shoulder as possible, but yet avoid mailboxes. This is often quite difficult due to the overhang of the plow extending about 2 feet beyond the cutting edge. Because of this, City residents are responsible for clearing snow away from their mailboxes. UTILITY STRUCTURES Except as otherwise provided in any license or franchise agreement, the City will only be responsible for damage to utility pedestals and transformers within the right-of-way resulting from direct contact by City snow and ice removal equipment. City liability shall be limited to actual costs to repair the damages, as documented by invoices submitted to the City by the utility. The utility is responsible and is encouraged to mark their structures. LANDSCAPING Landscaping,including nursery and inanimate materials that are installed or encroached on City owned right-of-way is permitted, but the owner assumes all risk of damage. The City will assume no responsibility for damages incurred as the result of snow removal and ice control activities, except that the City at its option, will repair or replace sod only on City owned right- of-way that is removed as the result of plowing activities. LAWN SPRINKLING AND LIGHTING SYSTEMS The City will assume no responsibility for damage to underground lawn-sprinkling systems; exterior lighting systems and similar landscaping installed in City owned right-of-way. SNOW STORAGE Ongoing snow and ice control efforts require the use of City owned right-of-way and easements for storage of plowed snow. Depending upon the volume of snow, storage within right-of-way could create sight obstruction_at intersections, because it is impossible financially and practically to remove all snow from intersection corners. COMPLAINTS Complaints regarding snow and ice control or damage shall be taken by the Public Works Department during normal working hours and handled in accordance with the City's complaint procedures. Complaints involving access to property or problems requiring immediate attention shall be handled on a priority basis. Response time should not exceed twenty-four (24) hours for any complaint. It should be understood that complaint responses are to ensure that the provisions of this policy have been fulfilled and that all residents of the City have been treated uniformly. It is the City's intention to log all complaints and upgrade this policy, as necessary,in consideration of the constraints of our resources. EXHIBIT A PLOWING/SANDING PRIORITIES PRIORITY "A" Snow Emergency Routes. These are high volumes routes which connect major sections of the City and provide access for emergency fire,police and medical services. PRIORITY "B" Street providing access to schools and commercial property. PRIORITY "C" Lower volume residential streets. PRIORITY "D" Cul-de-sacs,Alleys, Sidewalks/Trails PRIORITY "E" Hauling of snow from Downtown Area and other areas as necessary. Immimmimmok CONSENT iy. C. 2. CITY OF SHAKOPEE Memorandum TO: Mayor&City Council Mark McNeill, City Administrator FROM: Bruce Loney,Public Works Director SUBJECT: Snow Emergency Routes DATE: November 5, 1997 INTRODUCTION: Revisions to the designated snow emergency routes due to development and the need for a designated route in the industrial park area requires a revision to City Code, Section 9.50, Subdivision 8. BACKGROUND: Attached is a drawing showing the current snow emergency routes, as per City Ordinance No. 462 and proposed additions, which is the latest ordinance regarding snow emergency routes. Staff is requesting City Council approval to revise the snow emergency routes, due to new developments being added to the City's street system and with the need for an additional route in the industrial park area. The changes in the snow emergency routes are as follows: • Add Vierling Drive, from C.R. 15 {Adams Street} to Taylor Street. • Add Taylor Street, from Vierling Drive to 12th Avenue. • Add 4th Avenue, from Sarazin Street to C.R. 83. • Add Holmes Street, from 4th Avenue to 6th Avenue. • Add 12th Avenue, from C.R. 83 to Valley Park Drive. • Add Valley Park Drive, from C.R. 101 to 12th Avenue. • Add 3rd Avenue, from Scott Street to Fuller Street. • Add Fuller Street, from 10th Avenue to T.H. 169. • Add 6th Avenue, from 10th Avenue to Adams Street. • Add 10th Avenue, from C.R. 69 to Tyler Street. • Delete Fuller Street, from 4th Avenue to 6th Avenue. • Delete Harrison Street, from 10th Avenue to 13th Avenue. • Delete Apgar Street, from 6th Avenue to 10th Avenue. Attached is the appropriate ordinance revision on the snow emergency routes change. A snow route restricts the parking on these streets in order to facilitate snow removal on major routes. ALTERNATIVES: 1. Move to adopt Ordinance No. 504, An Ordinance of the City of Shakopee, Minnesota, Amending Chapter 9, Parking Regulations, Section 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. 2. Deny Ordinance No. 504. 3. Table for more specific information. RECOMMENDATION: Staff recommends Alternative No. 1, to amend the snow emergency routes to accurately designate the new snow emergency routes, due to development, turnbacks of State and County roads and vacation of Fuller Street. ACTION REQUESTED: Move to adopt Ordinance No. 504, , An Ordinance of the City of Shakopee, Minnesota, Amending Chapter 9, Parking Regulations, Section 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. Bruce Loney Public Works Director BL/pmp SNOW ORDINANCE NO. 504,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 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 Street,from 6th Avenue to 10th Avenue] 4th Avenue, from Fuller Street to [Sarazin Street]C.R. 83 Harrison Street, from 3rd Avenue to 6th Avenue [and 10th Avenue to 13th Avenue] Fuller Street, from 1st Avenue to [10th Avenue]4th Avenue and 6th Avenue to T.H. 169 Market Street, from 1st Avenue to 10th Avenue Scott Street, from 1st Avenue to 6th Avenue Shakopee Avenue, from 10th Avenue to 11th Avenue 6th Avenue, from Holmes Street to[Adams Street] 10th Avenue Spencer Street, from 1st Avenue to 10th Avenue 10th Avenue, from [Tyler Street] C.R. 69 to Shakopee Avenue 3rd Avenue, from Harrison Street to [Scott Street] Fuller Street 12th Avenue, from Adams Street to Taylor Street Vierling Drive, from C.R. 16 to C.R. 77 Vierling Drive,from C.R. 15 to Taylor Street Taylor Street, from Vierling Drive to 12th Avenue Holmes Street,from 4th Avenue to 6th Avenue 12th Avenue,from C.R 83 to Valley Park Drive Valley Park Drive, from C.R. 101 to 12th Avenue Sarazin Street, from C.R. 16 to 4th Avenue St. Francis Avenue, from Marschall Road to Sarazin Street. 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 publications. Passed in session of the City Council of the City of Shakopee, Minnesota, held this day of , 1997. • Mayor of the City of Shakopee Attest: City Clerk Published in the Shakopee Valley news on the day of , 1997. c.,,,,,„, „,,T ,, : , ,, ....„ , \ 11\ 01 (.- 'I -;-.-:-'---"'-'--i',==.. , =1 MN Eillti'.. IINki. ', l i .41P./ m® m ' o '_ ® ' M'= B \ -1 1 r Z c...„.. is=n .� ,. 0 I�I � I . gym, WO 0 • i PEO.S,II.. �_.'1� ►iii lilt, U) " UM remm' *it►I. O , 1;1:1- k.N. ..*. \ EEI_ E-1[:303,-.4-1,,nt, To-. A :,,, c.. . 7,i_.=1;R=1[00,,,,,--.„„,,,,‘ .,..... at ®Erit ►Iw,it O 10110ML MC AVE It:t11:11\111111 ‘,7.,..,„, 4 it ,,. � hl ���� fzli I®f�l4'm Fi). Pi $ ILII -,..:` ®�®I=�V 1►113I _ " I 4 AI 6.1 sr. a 1,4,',ERGO it warm \ ROWER a1 /I iii �� IB N Ce sx, _ • -X101 �,O 1' ,,,,1 r'---'‘' r iKresouu an '_IIIA � � IIV � I1\!141" [nv¢[r I= � a�o1 .. rIr?;por 4_: n s PAMIR S,, It V PP"-s / ,1 H--.--d-- Il M ,ate �y, 4 ill :r9 \'‘I ilia) IF 7 'n 2 ‘ b I A ,11i kb \\A\ 1,3 DE. � � .� „ / V12 V\ i.: / 7 E. I /p rwa fi :I/7'E/ I 44$ I, I 1 'Ill'IIIL:'______ _ ----_ — Z /��� — !I MX • ST � '''''\-. TYLER y ST. E:77,3=1`''''''',.i.„ - AJ f \--.:-, - N'H=1 D . MRIS R ` VI �Oi C__ , YIESZ:3 Ilk 1 7 �� =�� `" (1 z ''I E.S.I. an is EOMs ' qt• isica s. I Iii At m �.. _ lillri p ; y ZI AY STi: 1 Di'.1t ..1 62 �;.�' .ECr � 11 �. O1 ill 1 %111 U ."'ill 11. AJ E =1 '� 11 11011 , - ` .a 11�1 0- 0101'1. O 011v c . Ih1U W �'11g®1 I 0131,1 —i ii � III "�L°Ta® ��/1.11 X1114COL, rr2 it 1 11► � X111111 ► til • y g� IE . � M +Z1. tb M All 4 � I , sr.„ iF .0 I_Ii II�..� s X11®.far MU II 1 01 MIMES ��l 1 II_ .m ,K • MMtSC1LLLL R0. 1All OF � -1:0 iWn 7 •� � 441 vIR1NG E0.�i awr LIL J 7'Ira. f'J 7 �� IP / ,,,,, , \/ 'I Illlrrr`I`I`II"'AAA,(,@ - "❑ ,, , .TI a�A ST.,\\ ;11=1_ --... 4 1 _, ! - I \ p. IN IftlanMOIS I I 1 lI ICI , -A\\ ,, . /1 ., , . .. CO. as ea m Ra as �/ / 1 a2 VS '' ,;I= MUST.Clit / / r J . 1 7 ii e I b 11!,1; k .'Re 1 fr 7 i III CONSENT / C , 5 , CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark Mcneill, City Administrator FROM: Bruce Loney,Public Works Director SUBJECT: 16 Foot Rotary Mower DATE: November 5, 1997 INTRODUTION: Bids have been opened and staff is requesting authorization to purchase a new 16 foot rotary mower for the Parks Division. BACKGROUND: The 1997 Public Works Budget contains $70,000 in the Capital Equipment Fund for a new 16 foot rotary mower for the Parks Division. On October 14, 1997 bids were received and publicly opened for the mower. A total of four bids were received but only two bids made the time requirement. The bids that made the time requirement were from North Star Turf and MTI Distribution. The four bids are summarized in Attachment No.1. The lowest bidder that met the specifications was MTI Distribution for a Toro Groundmaster 580-D at a total price, including trade-in and tax of$54,538.65. Staff has reviewed the specifications on both bids and find that only the MTI Distribution bid met our qualifications of an 24 inch turning radius. We believe this is a significant specification for overall operating costs and efficiency. The price difference of $456.88 will easily be made up in the mowers first year of operation. The savings in operating costs comes from the Groundmaster 580-D's trimming capabilities, which will reduce the amount of equipment and labor hours needed typically to trim behind these mowers. Staff has demonstrated both mowers, and based on the above analysis, recommends authorizing the award to MTI Distribution for a total cost of$54,538.65. This mower will replace the current Jacobsen HR-15. ATERNATIVES: 1. Award the bid to MTI Distribution 2. Deny the request and reject all bids. RECOMMENDATION: Staff recommends Alternative No. 1. ACTION REQUESTED: Move to authorize the purchase of a Toro Groundmaster 580-D mower from MTI Distribution for a total cost of$54,538.65. // 4U7/ nice Loney Public Works Director 16MOW ATTACHMENT NO. 1. Rotary Mower Bid Tabulation BIDDER BID MTI Distribution Total Bid Model: Toro Groundmaster 580-D {with trade-in} - $54,538.65 North Star Turf Total Bid Model: Jacobsen HR-15 {with trade-in} - $54,081.77 {DOES NOT MEET TURNING RADIUS SPECIFICATIONS} Tri State Turf&Irrigation Total Bid Model: Toro Groundmaster 580-D {with trade-in} - $58,803.98 {DID NOT MAKE TIME REQUIREMENT} Chicago Turf&Irrigation, Inc. Total Bid Model: Toro Groundmaster 580-D {with trade-in} - $61,770.00 {DID NOT MAKE TIME REQUIREMENT} SEP-28-1997 20=20 CITY OF SHAKOPEE 612 445 6718 P. 10,10 CITY OF SHAKOPEE BID PROPOSAL FORM 1. MAKE& MODEL OF EQUIPMENT BEING BID: I Q�Q (ivo 034,4(.s4cts le,. S-O he COST:$ LC) , Iln•00 2. LESS TRADE-IN TOTAL TRADE VALUE $ 60,0 0O. 0 0 3. PURCHASER PAYS ONLY THIS AMOUNT $ 4 Si i 2(d,0 O - This total will determine the best total bid available to the City fora contract. S 8 ' C DELIVERY DATE: 5 O bc,,s DAYS AFTER AWARD Note: Bidder must bid on all items and will be paid only Item#3. Failure to bid on all items will disqualify bid. Respectfully submitted, ,,"" � Printed Name ofBidder: l'Wi"�. �l :s-t�.�v-�,•�� L�v-t r�l s uvivv Signature of Bidder: I Ulm'-' Address of Bidder. (4,900 t e - 'v P(,e.,.to 044., w,v cS`(�1 Telephone Number: to t7-' 41 0 State whether bidder is: Individual: Firm: Partnership: By: Names of Partners: Titles: • Address: Corporation: Telephone Number: 1,t).-y-tS'ZZ0O State in which incorporated: IM s044 Bid and performance security in the amount of 5% of the base bid accompanies this proposal, the same being subject to forfeiture in the event the equipment is not furnished by the date specified, if the undersigned is designated by the City Council as the lowest responsible bidder and a purchase order is executed by the Public Works Director. TOTAL P.10 09/29/97 08: 15 TX/RX NO.2650 P.010 , SP-29-1997 01:44 Lt t T ur 5rn-isurmm old YYJ v(tv CITY OF SHAKOPEE BID PROPOSAL FORM 1. MAKE &MODEL OF EQUIPMENT BEING BID: Jacobsen HR-15 COST:$ 59,781.00 2. LESS TRADE-IN TOTAL TRADE VALUE $ 8,000.00 3. PURCHASER PAYS ONLY THIS AMOUNT $50,781.00 +tax This total will determine the best total bid available to the City for a contract. The total cost of above including tax: $54!081.77 DELIVERY DATE: 90 Days ARO DAYS AFTER AWARD Note: Bidder must bid on all items and will be paid only Item#3. Failure to bid on all items will disqualify bid. Respectfully submitted, Printed Name of Bidder: North Star Turf, Inc. Signature of Bidder: C. Address of Bidder: 308 Centerville Rd. (Location Includes Sales & Service) St. Paul, M1 55117 Telephone Number: 612-484-8411 State whether bidder is: Individual: Firm: Partnership: By: Names of Partners: Titles: Address: Corporation: North Star Turf, Inc. Telephone Number: 612-484-8411 State in which incorporated: Minnesota Bid and performance security in the amount of 5% of the base bid accompanies this proposal, the same being subject to forfeiture in the event the equipment is not furnished by the date specified, if the undersigned is designated by the City Council as the lowest responsible bidder and a purchase order is executed by the Public Works Director. TOTAL P.10 G.P-28-1997 20:20 CITY OF .SHAKOPEE 612 445;6718 F.18r2 � y�V p CL i OF�OPEE BID PIWPOSAL FORM 1. MAKE a MODEL OF EQUIPMENT S.L'ING BID; o o �ivas S;0'6 COST:$ (, 3,2-1 5 . 00 2. LESS TRADE-IN TOTAL TRADE VALUE S —$) G c o YURCSASE'R PAYS ONLY TSIs AMOYINT S SS, Z 15. 69 -PiusTac,I-F AppI.c4-tie. This total will determine the beat total bid available to the City fora contract. 101,9. DELIVERY DATE: 3 O DAYS AFTER AWARD Note: Bidder must bid on all items and will be paid only Item O. Failure to bid on all items will Rsqualify bid. y submitted, Printed Name ofBidder: Tr S�'��e v-�-c �r �r r 50--H o-i•. Shue of Bidder ,h c.C>-c U�, Address of Bidder: b 25 V a<I L b"`t V-2 B.ettt or ' Savo- 52-1 Z2 Telephone Number: 3 Lq- 3 3 2 - tplA4 State whether bidder is: ! Iac#ividuraI: Pune: Partnership: - By: • Names of Partners. Tide= Address: Corporation: Y L s Telephone Number: State ill . which incorporated: o °- (42-OS c3 24 7 ) Bid and performance security in the amount of 5% of the base bid accompanies this proposal,the earns being subject to forfeiture in the event the equipment is not furnished by the date specified. F • if the undersigned is designated by the City Council as the lowest responsible bidder a purchase order is executed by the Public Works Director. P. t C 09/29/97 08:15 TX/RX NO.2650 P.O1 11• � I .., .., CITY CF SkokOPS 612 445 671,8 P.1 t 1. • I k , I ' GN\ss‘i • • crrir Ops BID PROPOSAL FORM I . . 1. MAKE&MODEL OF EQUIP/41E4T BEING BID: Toro Model 30580-580-D COST:$ 65, 300. 001 • • ----------------------7-- -----------t---' • , , , . ' , 2. LESS TRADE-IN TOTAL TD Apr VALU $ 730000 E 1 ' 3. PURCEASER PAYS ONLY TEES AMOUNT $ 58, 000.00.; • This total will determine the best total bid gnash/if)to the City for a co ‘1 7-10 14'0 • / 7- • , ' . • • . . DELIVERY DATE: 3 0 - i DA AFTER AWARD • N 'our Bidder niust bid on a---Etitemas and will ba paidonly/tera S3. Failure to bid on all . will disqualify bid. . Resp4wttilyaskeittelt • I • . ; I • 1. • , Printed Name of-Bidder. _,.. -0 Sc -r•in , • Signature of Bidder: ilailtird0~ Addrees of Bidder: 170 Ardmore Itasca IL 60143 f ; .--...''' ''"'".."• •..n..7..... .........,.... ........ ........ ...._„........ ....÷.. ...... . I Telephone Number: 630-773-5555 i . State whether bidder is: • • • • Indiv. idual: rum: Chicago Turf & Irrigation , In . , Partnership. • .,BY: • liames of Partners: R nald H. Jones Title:-----" "--------r-----TPresdlent • Mar P. Jones .Addrms: Chief Financial Officer ---------------7-7 i! . I !, Inc. I • _________------------ ' r TelephoneNumber: 630-773-5555 ; ; . , , f State in which incorporated: Illinois Bid and performance security in thet omaamoun the base bid zccompajes this propcsaj, amuse being subject to Forfeiture in the event the equipment is not filmisbed by the date specj4I, if the undersigned is designated by the City Council as thc lowest responsible bidder and purchase order is ccecuted by the Public'Works/Director. • 1 ; , . . • • i . , TerAL p.to • • • . • ! I 09/29/97 08:15 TX/RX &O2650 CONSENT CITY OF SHAKOPEE ' / ' TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Traffic Control Signage Authorization at Various Intersections DATE: November 5, 1997 INTRODUCTION: This item is for Council consideration and authorization to install stop signs at Thomas Avenue and Fuller Street, Pinewood Drive and Shenandoah Drive, 4th Avenue and Spruce Street and to remove the stop signs at Thomas Avenue and Apgar Street. BACKGROUND: Due to recent developments being constructed adjacent to City collector streets and the vacation of Apgar Street in Meadows North, staff has observed that stop signs are necessary for the following intersections: • At Thomas Avenue at the intersection with Fuller Street. • At Pinewood Drive at the intersection of Shenandoah Drive. • At Spruce Street at the intersection with 4th Avenue. • Also, a stop sign should be removed at Thomas Avenue at the intersection with Apgar Street. This removal can now be done since Apgar Street is no longer a County Road and the major north-south route is Fuller Street. ALTERNATIVES: 1. Direct staff to install stop signs at Thomas Avenue at the intersection of Fuller Street, at Pinewood Drive at the intersection of Shenandoah Drive, at Spruce Street at the intersection of 4th Avenue and remove the stop sign at Thomas Avenue at the intersection of Apgar Street. 'kr 2. Direct staff to leave the traffic signs as is. 3. Table for additional information. RECOMMENDATION: Staff recommends Alternative No. 1, as stop signs are recommended on streets that intersect with a City collector. ACTION REQUESTED: Direct staff to install stop signs at Thomas Avenue at the intersection of Fuller Street, at Pinewood Drive at the intersection of Shenandoah Drive, at Spruce Street at the intersection of 4th Avenue and to remove the stop sign at Thomas Avenue at the intersection of Apgar Street. Bruce Loney Public Works Director BL/pmp STOPS 1 -- ni ill ---I . . _ n Fri1i1 S V D � S � � W � � P � � R S 0 -" / EC 0 T T i S , 1 ( 7-r-•.47 '9'2\ (c,\ 0,0D CP2\ MI STANS PARK 1 _ I V - S A 1 E- AS - WAY AVS ' - /\ / AVM \ -1 INE —1 { ' 1S ^ ddS JFI -u ) ' 1S d ,Th ^ dS 1 ' I 7 4,,,k,111 ' 1S HSV ( ) D -- 1 d , i> < i> 7,1 ' dQ V 1Q \ V \ -I S `_ lL/,E RESOLUTION 4778 A RESOLUTION CANVASSING RETURNS FOR THE REGULAR MUNICIPAL ELECTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA,that it is hereby found and determined and declared that the regular municipal election held in and for said City of November 4, 1997, was in all respects duly and legally held and the returns thereof have been duly canvassed, and the votes cast at said election were as follows: For Mayor, two year term Jon Brekke Jeff Henderson Write Ins Under votes Over votes For Council-at-Large, (two)four year terms: Debra Amundson Gerald J. Ryan Robert O. Sweeney Burl A. Zorn Write Ins Under votes Over votes NOW, THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that is duly elected Mayor, for a two year term, commencing January 1998, and and are duly elected to the City Council, each for a four year term, commencing January, 1998. Adopted in Regular Session of the City Council of the City of Shakopee, Minnesota,held this 5th day of November, 1997. Mayor of the City of Shakopee ATTEST: City Clerk i ). RESOLUTION 4778 ON 7/164Q_ A /164Q- A RESOLUTION CANVASSING RETURNS FOR THE REGULAR MUNICIPAL ELECTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA,that it is hereby found and determined and declared that the regular municipal election held in and for said City of November 4, 1997,was in all respects duly and legally held and the returns thereof have been duly canvassed, and the votes cast at said election were as follows: For Mayor,two year term: Jon Brekke 1879 Jeff Henderson 1298 Write Ins 15 Under votes 87 Over votes 1 For Council-at-Large, (two)four year terms: Debra Amundson 2200 Gerald J. Ryan 581 Robert O. Sweeney 2077 Burl A. Zom 992 Write Ins 16 Under votes 692 Over votes 6 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE,MINNESOTA, that Jon Brekke is duly elected Mayor, for a two year term, commencing January 1998, and Debra Amundson and Robert O. Sweeney are duly elected to the City Council, each for a four year term, commencing January, 1998. Adopted in Regular Session of the City Council of the City of Shakopee, Minnesota,held this 5th day of November, 1997. Mayor of the City of Shakopee ATTEST: City Clerk SCOTT COINTY,MINNESOTA DISTRICT REPORT SPECIAL ELECTION Page 5 NOVEMBER 4,1997 SHAKOPEE MAYOR 1 - JON P. BRINE 2 - JEFF 'EMERSON „ RES VOTES VOTERS CAST TURNOUT 1 2 UV OV WI All Districts 014 S} HOPE P-1 1084 506 46.6 % 295 284 4 0 3 815 SHAKOPEE P-2 975 464 47.5 % 256 198 7 0 3 016 S14EOPEE P-3 ' 1530 460 38.0 % 283 168 9 0 0 017 SHAKOPEE P-4, 928 342 36%8 % 185 143 13 0 1 018 SHAKOPEE P-5 1606 672 41.8 % 393 257 17 1 4 019 SHAKOPEE P-7 750 284 37.8 % 154 115 12 0 3 020 SHAKOPEE P-8 1411 554 39.2 % 313 213 25 0 3 A11 Districts 8284 3282 39.6 % 1879 1298 87 1 17 Absentee 0 0 0.0 % 0 0 0 0 0 RACE TOTALS 8284 3282 39.6 % 1879 1298 87 1 17 SCOTT COUNIY,MINESUIH ui0u uLi ncrurti SPECIAL ELECTION Page 6 NOVEMBER 4,1997 SWOPE COUNCIL MEMBER- Elect 2 1 - DEBRA AMABDSON 2 - GERALD S. RYAN 3 - ROBERT 0. SWEENEY 4 - BUIL A. ZORN REG VOTES VOTERS CAST TURNOUT 1 2 3 4 UV OV WI • All Districts 814 SHAKOPEE P-1 1084 1812 46.6 % 337 98 308 166 99 2 2 815 SHAME P-2 975 928 47.5 % 308 69 321 144 85 0 1 816 SHAKOPEE P-3 1530 928 30.04 304 88 299 141 86 0 2 817 SWEOPEE P-4 928 684 36.8 % ' 222 59 202 109 92 0 0 818 SWOPE P-5 1606 1344 41.8 % 465 126 430 177 140 0 6 019 SEE P-7 750 568 37.8 % 175 46 177 95 . 74 0 1 020 SHAKOPEE P-8 1411 1108 39.2 % 389 95 340 160 116 4 4 All Districts 8284 6564 39.6 % 2200 581 2077 992 692 6 16 Absentee 8 0 0.0 % 0 0 0 0 0 0 0 RACE TOTALS 8284 6564 39.6 % 2200 581 2877 992 . 692 6 16 SUMMARY OF WRITE-IN VOTES AND OVER/UNDER VOTES FOR THE NOVEMBER 4, 1997 CITY ELECTION MAYOR: Don Mertz 1 Scott Van Derwerf 1 H. H. Harrison 1 Delores Lebens 1 John Schneider 1 Mark Schaefer 1 Joe Vaughn 1 R. O. Sweeney 1 Kelley Gustafson 1 Mark Peterson 1 Eric Bunkers 1 David Johnson 1 Dennis Kohlbrecher 1 John DuBois 1 Clete Link 1 Under votes 4+7+9+ 13 + 17+ 12+25 = 87 Over Votes 0 + 0 + 0 + 0+ 1 + 0+ 0 = 1 COUNCILMEMBER: Butch Kreuser 1 Thomas Rein 1 Don Hennen 1 Jim Raduenz 1 Mark Peterson 1 Kelley Gustafson 1 Edward Geisen 1 David Crowley 1 Eric Bunkers 1 Al DuBois 1 H. R. Spurrier 1 Debra Johnson 1 Sara Kohlbrecher 1 Jeff Golumbiski 1 Don Mertz 1 Bruce Doyle 1 Under votes 99 + 85 + 86+92 + 140+74+ 116 = 692 Over votes 2 + 0 + 0 + 0 + 0+ 0+ 4 = 6 p IT PAGE 1 or $UNARY STATEMENT • - CRY/SCHOOL. NOYENE�ER 1997 EEL.E+CTIQN. 04. A, PRECINCT; 0 8 5 B.. PRECINCT CODE:>d 115 C. WARD:.QQ o D. MUNICIPALITY:SHAKOPEE P-1 E. COUNTY:SCOTT / f F. CONGRESSIONAL DISTRICT:2 G. LEGISLATIVE DISTRICT: 35B ...,Aie - NUMBER OF BALLOTS RECEIVED FROM CLERK . . . . .-. ., .. .... . . . _-__ 444,2_..„__ .:......__ . : . H. NUMBER OF PERSONS REGISTERED AT 7AM. '. . . . . . . . . . . , • . . . 1.084 I . NUMBER OF NEW REGISTRATIONS AT THE POLLING PLACE ON ELECTION DAY . . . . . ..... . . . . . . . . . . . . ..1 . **,ria**************sty ******************w******************************** J . NUMBER OF SIGNATURES ON THE POLLING PLACEROSTER (INCLUDE NEW REGISTRATIONS) I + z4r K. NUMBER OF ACCEPTED REGULAR. MILITARY AND OVERSEAS ABSENTEE BALLOTS N,- TOTAL NUMBER OF PERSONS VOTING IN THE PRECINCT (ADD: J + K = N) *********************** *********, ************************************** O. NUMBER OF COMPLETELY BLANK BALLOTS n IN THE BALLOT BOX !! # BLANK P. NUMBER OF COMPLETELY DEFECTIVE BALLOTS IN THE BALLOT BOX (identifiable marks only) V # DEFECTIVE Q. NUMBER OF SPOILED BALLOTS IN THE SPOILED BALLOT ENVELOPE # SPOILED NUMBER OF REMADE BALLOTS IN THE REMADE BALLOT ENVELOPE # REMADE R. NUMBER OF UNUSED BALLOTS RETURNED TO COUNTY ,, AUDITOR # UNUSED BALLOTS (ORIGINAL AMOUNT OF BALLOTS RECEIVED FROM THE - COUNTY AUDITOR. MINUS LINES J & Q _ R) • 014 SHAKOPEE P-1, SCOTT COUNTY, M I NNESOTA SPEC I AL ELECT I ON NOVEMBER 4, 199T Total Number Voting 506 SHAKOPEE MAYOR JON P. BREKKE 295 58.30% JEFF HENDERSON 204 40.31% 3 .59% . Total Votes Cast 506 Number Under Votes 4 .797 Number Over Votes 0 0% SHAKOPEE COUNCIL MEMBER ( Elect 2) DEBRA AMUNDSON 337 33.30% GERALD J. RYAN 98 9.68% ROBERT O. SWEENEY 308 30.43% BURL A. ZORN 166 16.40% 2 . 19% Total Votes Cast 1012 Number Under Votes 99 9.78% Number Over Votes 2 . 19% I.S.D. 720 SCHOOL BOARD MEMBER ( Elect 2) RICK SCHIBUR 57 5.63% EDWARD D. LAWRENCE 89 8.79% JIM JOHNSON 73 7.21% MARY ROMANSKY 178 17.58% STEVE SCHNEIDER 292 28.85% SEAN LAUGHLIN 2.00 19.76% 3 .29% Total Votes Cast 1012 Number Under Votes 116 11.46% Number Over Votes 4 .39% I.S.D. '720 QUESTION 1 YES 300 59.28% NO 196 38.73% Total Votes Cast 506 Nummbbe,rr Under Votes 10 1.97% ..—' -'r�r..—��},.'�.�....� �� �.��.�.�.�► I.S.D. 720 QUESTION 2 YES 266 52.56% NO 232 45.84% Total Votes Cast 506 Number Under Votes 8 1.58% Numbe , Over, Uo+et r1 r7. PAGE 1 OF SUMMARY STATEMENT • CM/SCHOOL ELECTION,NONE1i ER 04,,1997 A. PRECINCT: 085 B. PRECINCT CODE: 012Q C. WARD:QQ D MUNICIPALITY:SHAKOPEE P-2 E COUNTY:SCOTT F. CONGRESSIONAL DISTRICT DISTRICT:2. G. LEGISLATIVE DISTRICT:_35B NUMBER OF BALLOTS RECEIVED FROM CLERK. . . . . . H NUMBER OF. PERSONS REGISTERED` AT 7AM. . . . . . . 975 I ; NUMBER 'OF NEW REGISTRATIONS AT THE POLLING PLACE ON ELECTION DAY **x*******************,rrc**,rye,K*****.xn*+ ...****************** ********** - J . NUMBER OF SIGNATURES ON THE POLLING PLACE ROSTER 5 3 (INCLUDE NEW REGISTRATIONS) + K. NUMBER OF ACCEPTED REGULAR. MILITARY AND OVERSEAS .5,. I ABSENTEE BALLOTS ' � N. TOTAL NUMBER OF PERSONS VOTING IN THE PRECINCT (ADD: J +. K = N) *******************************.rear+ter************************************* O. NUMBER OF COMPLETELY BLANK BALLOTS IN THE BALLOT BOX. . .. ... . . . . . . . ... . . . . . . . . . . . . . . . . . -0 - # BLANK P. NUMBER OF COMPLETELY DEFECTIVE BALLOTS IN THE 'BALLOT ..BOX (identifiable marks only) . . . . " # DEFECTIVE Q. NUMBER OF SPOILED BALLOTS - IN THE SPOILED BALLOT ENVELOPE - 9 — # SPOILED NUMBER OF REMADE BALLOTS IN THE REMADE BALLOT ENVELOPE # REMADE R. NUMBER OF UNUSED BALLOTS RETURNED TO COUNTY AUDITOR '�` 5- # UNUSED BALLOTS . (ORIGINAL AMOUNT OF BALLOTS RECEIVED .FM THE COUNTY AUDITOR. MINUS LINES J & Q = R) • i - 015 SHAKOPEE P-2 SCOTT COUNTY, MINNESOTA SPECIAL. ELECTION NOVEMBER 4-, 19497 Total Number Voting 464 SHAKOPEE MAYOR JON P. BREKKE 256 55. 17% JEFF HENDERSON 198 42.67% 3 .64% Total Votes Cast 464. Number Under Votes 7 1.50% Number Over Votes 0 . 0% SHAKOPEE COUNCIL MEMBER ( Elect . 2) DEBRA AMUNDSON 308 33. 18% GERALD J. RYAN 69 7.43% ROBERT O. SWEENEY 321 34.59% BURL A. ZORN 144 15.51% 1 . 10% Total Votes•Cast 928 Number Under Votes 85 9. 15% Number Over Votes 0 . 0% M.S.D. 720 SCHOOL BOARD MEMBER ( Elect 2) RICK SCHIBUR 80 8.62% EDWARD D. LAWRENCE 69 7.43% JIM JOHNSON 52 5.60% MARY ROMANSKY 173. 18.64% STEVE SCHNEIDER 239 25.75% SEAN LAUGHL I N 167 17.99% 3 .32% Total Votes Cast 928 Number Under Votes 143 15. 40% Number Over Votes 2 .21% I.S. D. 720 QUESTION I YES 274 59.05% NO 179 38.57% Total Votes Cast 464 Number Under Votes 11 2.37% �— _. .`.,.amb — — —.- -�- _— I _ i pAGZ 1 OF SUGARY STATEMENT CITYISCHOOL ELECTION,NOVEMBER 04,1097 A. PRECINCT 085 B. PRECINCT CODE:0125 C. WARD:QQ D.- MUNICIPALITY:SHAKOPEE P-3 E. COUNTY:SCOTT F. CONGRESSIONAL DISTRICT:1 G. LEGISLATIVE DISTRIC.'T: 358 NUMBER OF BALLOTS RECEIVED FROM CLERK. . . . . . . . . . . . . . . /00(2 . . H. NUMBER OF PERSONS REGISTERED AT 7AM 1.530 I NUMBER OF NEW REGISTRATIONS AT THE POLLING PLACE 'ON ELECTION DAY 0 *************************************************************.***.******* 3 NUMBER OF SIGNATURES ON THE POLLING PLACE ROSTER. . . . .. . . 'TJ 7 (INCLUDE NEW REGISTRATIONS) K. NUMBER OF ACCEPTED REGULAR. MILITARY AND OVERSEAS ABSENTEE BALLOTS : . . . . . N. TOTAL NUMBER OF PERSONS VOTING IN THE PRECINCT I/60 (ADD: J + K = N) ************************,ear*********************************+ear*********** O. NUMBER OF COMPLETELY BLANK BALLOTS 0 IN THE BALLOT BOX # BLANK P. NUMBER OF COMPLETELY DEFECTIVE BALLOTS IN THE BALLOT BOX (identifiable marks only) . . . . # DEFECTIVE Q. NUMBER OF SPOILED BALLOTS Q IN THE SPOILED BALLOT ENVELOPE # SPOILED NUMBER OF REMADE BALLOTS "1" E BALLOT ENVELOPE IN THE REMADE # REMADE R. NUMBER OF UNUSED BALLOTS RETURNED TO COUNTY 5-3q AUDITOR. .. # UNUSED BALLOTS (ORIGINAL AMOUNT OF BALLOTS RECEIVED 2E00M THE COUNTY AUDITOR. MINUS LINES J & Q = R) • 01E4 SHAKOPEE P-3 SCOTT COUNTY, PMII hlhlESOTA SP'EC I AL ELECT I oro hNO V EMBE R 4, 19.97 Total Number Voting 460 SHAKOPEE MAYOR JON P. BREKKE 283 61.52% JEFF HENDERSON 168 36.52% 0 . 0% • Total Votes Cast 460 Number Under Votes 9 1.95% Number Over Votes 0 0% SHAKOPEE COUNCIL MEMBER ( Elect 2) DEBRA AMUNDSON 304 33.04% GERALD J. RYAN 88 9.56% ROBERT 0. SWEENEY 299 32.50% BURL A. ZORN 141 15.32% 2 .21% Total Votes Cast 920 Number Under Votes 86 9.34% Number Over Votes 0 . 0% I.S.D. 720 SCHOOL BOARD MEMBER ( Elect 2) RICK SCHIBUR 82 8.91% EDWARD D. LAWRENCE 89 9.67% JIM JOHNSON 77 8.36% MARY ROMANSKY 167 18. 15% STEVE SCHNEIDER 213 23. 15% SEAN LAUGHLIN 135 14.67% 3 .32% Total Votes Cast 920 Number Under Votes 152 16.52% Number Over Votes 2 .21% I.S.D. 720 QUESTION 1 YES 309 67. 17% NO 145 31.52% Total Votes Cast 460 Number Under Votes 6 1.30% --hi .•,,,,_�_,� ,�,, - - - - - - • #Xx _ - :f } -PA6E - ;396..Z":;11':4„ -_1 � 0p• 4 • $UN ARY 8TA'IE NT CfrYI$CtIOQL ELECTION,NOVEMBER 04„1997 A, PRECINCT:211 B. ;PRECINCT• CODE: 0130 , C. WARD:All D. MUNICIPALITY;SHAKOPEE P-4 E COUNTY:SCOTT F. CONGRESSIONAL DISTRICT:2. G. LEGISLATIVE DISTRICT: 35B NUMBER OF BALLOTS RECEIVED FROM CL,.ERK. . . . . . , ***********�r*If* '***i*,*yryr**�r�t eyr**.** ieiex**1,(4,***7r***********,rir************ , H. :NUMBER OF PERSONS REGISTERED AT ?AM. . . . . . . . . . . . . . . . . . . 918 I . NUMBER OF NEW REGISTRATIONS AT THE POLLING PLACE ON ELECTION DAY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0". j • J. NUMBER OF SIGNATURES ON THE POLLING PLACE ROSTER. . . : . . . . ✓ 3 1 (INCLUDE NEW REGISTRATIONS) • K. NUMBER OF ACCEPTED REGULAR. MILITARY AND OVERSEAS IABSENTEE . . . . . . . . . . .a N. TOTAL NUMBER-or- PERSONS VOTING IN THE PRECINCT.. . . . . . . . (ADD: 3 + K = N) *************************************************.r*..******************* O. NUMBER IN OFTHE BACOMPLLC7T LETELY.BQX-BLANK BALLOTS d I # BLANK P . NUMBER OF COMPLETELY DEFECTIVE BALLOTS IN THE BALLOT BOX (identifiable marks only) . . , # DEFECTIVE - Q. NUMBER OF SPOILED BALLOTS IN THE SPOILED BALLOT ENVELOPE. . . . . . . . . . . . . . . # SPOILED NUMBER OF REMADE BALLOTS IN THE REMADE BALLOT ENVELOPE 420 # REMADE R. NUMBER-OF UNUSED BALLOTS RETURNED TO COUNTY AUDITOR (pv 4 # UNUSED BALLOTS (ORIGINAL AMOUNT OF BALLOTS RECEIVED FROM THE COUNTY AUDITOR, MINUS LINES J & Q = R) • • 017 SHAKOPEE P-4. SCOTT COUNTY, M I NNESOTA SPEC I AL ' ELECT ON NOVEMBER 4, 19'97 Total Number Voting 342 SHAKOPEE MAYOR JON P. BREKKE 185 54.09% JEFF HENDERSON 143 41.81% 1 29% Total Votes Cast. 342 Number Under Votes 13 3.80% Number Over Votes 0 . 0% SHAKOPEE COUNCIL MEMBER ( Elect 2) DEBRA AMUNDSON 222 32.45% GERALD J. RYAN 59 8.62% ROBERT O. SWEENEY 202 29.53% BURL A. ZORN 109 15.93% 0 . 0% SSSSS . .. .. ... . . . . . • . .. . .. . . Total Votes Cast X684 Nuaber Under Votes 92 13.45% Number Over Votes 0 • 0% I.S.D. 720 SCHOOL BOARD MEMBER. ( Elect 2) RICK SCHIBUR. 63 9.21% EDWARD D. LAWRENCE 57 8.33% JIM JOHNSON 54 7.89% MARY ROMANSKY 136 19.88% STEVE SCHNEIDER 128 18.71% SEAN`LAUGHLIN 98 14.32% 0 0% Total Votes Cast 684 Nuaber Under Votes 146 21.34% Nuaber Over Votes cc .29% I S.D. 720 QUESTION 1 YES 197 57.60% NO . 145 42.39% Total Votes Cast 342 Number Under Votes 0 . 0% . .. _ .— SUMMARY STATENNIT CITY/SCHOOI.ELECTION,NOYEIYESER 04,1887 A. PRECINCT:085 . B. PRECINCT CODE: 0135 C. .WARD:QQ D. MUNICIPALITY:SHAKOPEE P-5 E. COUNTY:;STT F. CONGRESSIONAL DISTRICT:, G. LEGISLATIVE DISTRICT: 35B NUMBER OF BALLOTS RECEIVED FROM CLERK. , . ***************Ii******* **********)!*iR *************ik****fit***************** H. NUMBER OP PERSONS REGISTERED AT 7AM. . . . . . . . . . . . . . . 1 . 606 E . NUMBER OF NEWREGISTRATIONS AT THE POLLING PLACE .�.:: _ ( ON ELECTION DAY: . . . fig *****sr***********************************w****** r********************** J . NUMBER OF SIGNATURES ON. THE POLLING PLACE ROSTER. . . — . (INCLUDE NEW REGISTRATIONS). K. NUMBER OF ACCEPTED REGULAR. MILITARY 'AND OVERSEAS -4-1„r .j ABSENTEEBALLOTS. . . . . . . , . . . . . . . . . . . . . . . . . - N. TOTAL NUMBER OF PERSONS VOTING IN THE PRECINCT (01 Z (ADD: J + K = N) O. NUMBER OF' COMPLETELY BLANK BALLOTS O IN THE BALLOT BOX. . . . . . . . . . . . . , . . . . . . . # BLANK P. NUMBER OF COMPLETELY DEFECTIVE BALLOTS IN THE BALLOT BOX (identifiable marks only) # DEFECTIVE Q. NUMBER OF SPOILED BALLOTS IN THE SPOILED BALLOT ENVELOPE # SPOILED NUMBER OF REMADE BALLOTS . O ENVELOPE. . . . . . . . . IN THE REMADE BALLOT • # REMADE R: 'NUMBER OF UNUSED BALLOTS RETURNED TO COUNTY Li 2ct AUDITOR. . . . . . . . . . . . .. # UNUSED BALLOTS (ORIGINAL AMOUNT OF BALLOTS RECEIVED FEQM THE COUNTY AUDITOR, MINUS LINES J & Q = R) • • 018 SHAKOPEE P-5 SCOTT COUNTY, MINNESOTA SPECIAL ELECTION NOVEMBER 4, 1997 Total Number Voting 672 SHAKOPEE MAYOR JON P. BREKKE 393 58.48X JEFF HENDERSON 257 38.24% 4 .59X OOOOOOOOOOOOOOOOO 00 OOOOO SOUS Total Votes Cast672 Number Under Votes 17 2.522% Number Over Votes 1 14% SHAKOPEE COUNCIL MEMBER ( Elect2) DEBRA AMUNDSON 465 34.59% GERALD. 3. RYAN 126 9.37% ROBERT 0. SWEENEY 430 31.99% BURL A. ZORN 177 13. 16% 6 .44% Total Votes Cast 1344 Number Under-Votes 140 10.41Y• Number Over Votes 0 0% I.S.D. 720 SCHOOL BOARD MEMBER ( Elect 2) RICK SCHIBUR 101 7.51% EDWARD D. LAWRENCE 135 10.04% JIM JOHNSON 113 8.40% MARY ROMANSKY 194 14.43% , STEVE SCHNEIDER 353 26.26% SEAN LAUGHLIN 214 15.92% 6 .44% Total Votes Cast 1344 Number Under Votes 224 16.66% Number Over Votes 4 .29% I.S.D. 720 QUEST I ON i YES 456 67.85% NO 210 31.25% Total Votes Cast 672 Number Under Votes 6 .89% - -..—..—.�----- _LI. = - - - — - -.-.:L. - - - - - -- • PAGE . 1 O1' SUMSAARY STATEMENT CITYISCHO0L ELECTION,NOVEMBER 04,4887 A, PRECINCT:.085 ,. 8;. PRECINCT CODE;0137 C. WARD:QQ D. ' MUNICIPALITY:$HAKOPEE P-7 E. COUNTY:SCOTT F. .CONGRESSIONAL DISTRICT:, G. LEGISLATIVE DISTRICT: 35B � NUMBER OF BALLOTS RECEIVED FROM CLERK. **********************************************************x************* H. NUMBER OF PERSONS REGISTERED AT ?AM. ... . . . . . . . 750 I . NUMBER OF NEW REGISTRATIONS AT THE POLLING PLACE ON ELECTION DAY, . . . . . . . . . . . . . . . . . .. . . . . . . . . . IC Aei ********************x*,i w*ir*x************x*x***Gyur*-***********x*******w* J . NUMBER_OF SIGNATURES ON THE POLLING PLACE ROSTER. . . . . . . ,'I i 7� (INCLUDE NEW REGISTRATIONS) K. NUMBER OF ACCEPTED REGULAR, MILITARY AND OVERSEAS 9 ABSENTEE BALLOTS: . . . . N. TOTAL NUMBER OF PERSONS VOTING IN THE PRECINCT. . . . • ... . Ex 4 81 (ADD: J + K = N) ******************,a* r*******,rye********************,r***********x********* O. NUMBER OF COMPLETELY BLANK BALLOTS IN THE BALLOT BOX. . . . . . . # BLANK P . NUMBER OF COMPLETELY DEFECTIVE BALLOTS 0 IN THE BALLOT BOX (identifiable marks only) . . . . # DEFECTIVE Q, NUMBER OF SPOILED BALLOTS D IN THE SPOILED BALLOT ENVELOPE # SPOILED NUMBER OF REMADE BALLOTS 3 IN THE REMADE BALLOT ENVELOPE # REMADE R. NUMBER OF UNUSED BALLOTS RETURNED TO COUNTY AUDITOR /J' #..,:UNUSED BALLOTS (ORIGINAL AMOUNT OF BALLOTS RECIEIVED FROM THE COUNTY AUDITOR. MINUS LINES J & Q = R) 551 019 SHAKOPEE P-7 SCOTT COUNTY, MINNESOTA SI'EC I AL ELECTION NOVEMBER 4, 19497 Total Number Voting 284 SHAKOPEE MAYOR JON P. BREKKE 154 54.22% JEFF HENDERSON 115 40.49% ' 3 1.05% Total Votes Cast 284 Number Under Votes 12 4.22% Number Over Votes 0 . 0% SHAKOPEE COUNCIL MEMBER ( Elect 2) DEBRA AMUNDSON 175 30.80% GERALD J. 'RYAN 46 8.09% ROBERT 0. SWEENEY 177 31. 16% BURL A. ZORN 95 16.72% 1 . 17% Total Votes Cast 568 . Number Under Votes 74 13.02% Number Over Votes 0 0% I.S.D. 720 SCHOOL BOARD MEMBER ( Elect 2) RICK SCHIBUR 54 9.50% EDWARD D. LAWRENCE 46 8.09% JIM JOHNSON 33 5.80% MARY ROMANSKY 102 17.95% STEVE SCHNEIDER 135 23.76% SEAN LAUGHLIN 76 13.38% 2 .35% Total Votes Cast 568 Number Under. Votes 118 20.77% Number Over Votes 2 .35% I.S.D. 720 QUESTION 1 YES 211 74.229% NO 72 25.35% Total Votes Cast 284 Number Under Votes 1 .35% .. .t ,,y,s,»s65,1r z crry.".r • y.,,, k. = R M, PAGE '1 OF` A 8UMM RY STAT NT CITY/SCHOOL Et•EC11ON,NOVEMBER 04,1197 Y A. PRECINCT B. .-.PRECINCT•CODE 0138 C. .WARD:QQ D. • MUNICIPALITY:SHAKOPEEP-8 E COUNTY:.SUDTT F: CONGRESSIONAL DISTRICT:2 • •G: LEGISLATIVE DISTRICT;358 . NUMBER OF BALLOTS RECEIVED FROM CLERK. **********it******.*•******,**********'*itit* re**tit*********-********************* • -H NUMBER OF PERSONS REGISTERED AT 7AM. . . .:. , . . . 1 411 • • I . . NUMBER OF NEW REGISTRATIONS AT THE POLLING PLACE • ON ELECTION DAY. . . . . , . ., . • . . . . . . . . , ; . . . . . . . . **'*r********'*******-«*44********yea*w*xtr******** J . NUMBER OF SIGNATURES ON THE POLLING PLACE ROSTE -. . . . . . . .5-7 b (INCLUDE NEW REGISTRATIONS) K. NUMBER OF ACCEPTED REGULAR. MILITARY AND OVERSEAS • 9 ABSENTEE BALLOTS. . . . . . . . .. . . , N. TOTAL NUMBER OF PERSONS VOTING IN THE PRECINCT. ; . . . (ADD: . J + K = N) • ***************************************************;e******************** O. NUMBER OF COMPLETELY BLANK BALLOTS IN THE BALLOT BOX . . . . . . . . # BL.ANK P. NUMBER OF COMPLETELY DEFECTIVE BALLOTS 'IN THE BALLOT BOX. ( id®ntifiable marks only) # DEFECTIVE Q. .NUMBER OF SPOILED BALLOTS --/ IN THE SPOILED BALLOT ENVELOPE . . . . . # SPOILED NUMBER OF REMADE BALLOTS • IN 'THE REMADE BALLOT ENVELOPE. - - . • # REMADE R. 'NUMBER OF UNUSED BALLOTS RETURNED TO COUNTY ,5/427 AUDITOR • # UNUSED BALLOTS • (ORIGINAL AMOUNT OF BALLOTS RECEIVED PROM THE COUNTY AUDITOR. MINUS LINES J & Q = R) 020 SHAKOPEE P-8 SCOTT COUNTY, M I I\INIESC3TA SPECIAL ELECTION NOVEMBER 4, 1997 Total Number Voting 554 SHAKOPEE MAYOR JON P. BREKKE 313 56.49% JEFF HENDERSON 213 38.44% 3 .54X . . . . . . Total.Votes.Cast •554 Number Under Votes 25 4.51% Number Over Votes 0 . 0% SHAKOPEE COUNCIL MEMBER ( Elect a) DEBRA AMUNDSON 389 35. 10% GERALD .1. RYAN 95 8.57Y• ROBERT 0. SWEENEY 340 30.68% BURL A. ZORN 160 14.44% 4 36% 150 OO OOOOOOOOOOOOO S . 11100 .. 4 Total Votes�Cast 1108 Number Under Votes 116 10.46% Number Over Votes 4 .36% I.S.D. 720 SCHOOL BOARD MEMBER ( Elect 2) RICK SCHIBUR 124 11. 19% EDWARD D. LAWRENCE 105 9.47% JIM JOHNSON 73 6.58% MARY ROMANSKY 188 16.96% STEVE SCHNEIDER 300 27.07% SEAN iAUGHL I N 159 14.35% 5. .45% Total Votes Cast 1108 Number Under Votes 150 13.53% Number Over Votes 4 .36% I.S.D. 720 QUESTION 1 YES 391 70.57% NO 163 29.42% Total Votes Cast 554 Number Under Votes 0 . 0% CONSENT CITY OF SHAKOPEE Memorandum /Y. E. . TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Changes to Personnel Policy DATE: October 30, 1997 INTRODUCTION: The Council is asked to adopt changes to the Personnel Policy covering the following items: A. Employee Status Definitions B. Anniversary Step Increases C. Exempt Employees BACKGROUND: Periodically, the City must update its personnel policy to reflect certain changes. A. Definition of Employee Status -With the opening of the Community Center,there has been an increase in the number of employees who have been hired that do not otherwise qualify as what might be defined as"regular"employees. Changes are proposed to the definition of regular and temporary employees, and a new classification,that of"intermittent" employee is proposed to be added. The intermittent classification is especially needed, due to the use of"on-call" gymnastics and aerobic instructors at the Community Center. These changes are shown as items "H, I, and J"under Section II -Definitions. In addition, differentiation should be made regarding part time employees, and who should qualify for any type of benefit. We are proposing that part time employees who are regularly scheduled to work 30 hours a week or more be entitled to prorated vacation, sick leave,holiday and insurance eligibility benefits. Part time employees regularly scheduled for less than 30 hours per week would not be entitled to such benefits. The current break is 20 hours per week. B. Anniversary Step Increases - Also proposed to be considered is language under Section III A.,which specifies when employees are eligible for step increases. The language to be added is as follows: "An increase in pay to the next higher step of a pay range shall be made on the annual anniversary date of hire, for employees not at the top step. This shall remain until such time as there may be a reclassification or promotion. In that case,the new date for step changes shall be on the anniversary of the effective date of the reclassification/promotion." C. Exempt Employees - Periodically the City should update the list of employees determined to be exempt from regulation by the Fair Labor Standards Act (FLSA), which dictates primarily eligibility for overtime. Article II "Definitions"of the employee handbook is amended to coincide with current budgeted exempt position.Note that six abolished positions are being listed exempt r proposed for designation as exempt. The twelve ste eliminated; six are p P g p p positions are consistent with the 1997 pay plan exempt employees. Note: Deletions shown by strike-outs, and additions shown by underlining. RECOMMENDATION: We recommend that changes in the three areas described in this memo be adopted by motion. ACTION REQUIRED: If the Council concurs, it should, by motion, adopt changes for the Employee Handbook in the sections governing step increases, and definition of employee status. In addition, the list of exempt employees should be modified, by adopting the following resolution: RESOLUTION NO. 4788 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA,AMENDING RESOLUTION NO. 4213,ADOPTING A PERSONNEL HANDBOOK,TO REVISE THE PROVISIONS RELATING TO DEFINITIONS, COMPENSATION,BENEFITS & LEAVES. Mark McNeill City Administrator MM:tw RESOLUTION NO. 4788 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING RESOLUTION NO. 4213 , ADOPTING A PERSONNEL HANDBOOK, TO REVISE THE PROVISIONS RELATING TO DEFINITIONS, COMPENSATION, BENEFITS & LEAVES WHEREAS, on May 2, 1995, the City Council adopted Resolution No. 4213, adopting a new Personnel Handbook for the Employees of the City; and WHEREAS, it is necessary to amend the definitions of exempt employee, regular employee and temporary employee and add a definition of intermittent employee to be consistent with current employment practices; and WHEREAS, it is desirable to amend the eligibility and leave benefits for part-time employees from 20 to 30 hours per weeks; and WHEREAS,the procedure for anniversary step increases is added to clarify compensation practices. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, AS FOLLOWS: That Resolution No. 4213, Adopting a Personnel Handbook, is hereby amended as follows: 1. By amending Section II.DEFINITIONS, B.Exempt Employee,H. Regular Employee &J.Temporary Employee as follows: B. Exempt Employee - Means an employee exempt from regulation by the Federal Fair Labor Standards Act,including the following: 1. City Administrator 2. Assistant City Administrator Community Development Director 3. City Attorney EDA Coordinator 4. Assistant City Attorney Facility Manager 5. City Clerk 6. Finance Director 7. Planning Director 7. Planner I II a. Police Chief Deputy Chief of Police 10. Director of Public Works/City Engineer 11. Civil Engineer Assistant City Engineer 12. ' - - _. _ - - . Park&Rec Director la. Any other employee identified by the City Council as an exempt employee. H. Regular Employee - Means an employee who is not a temporary cmployee. appointed to a budgeted on-going position after successful completion of a probationary period. Temporary Employee - Means an employee who may be either full-time or part-time appointed for a limited time, normally not to exceed six months. for seasonal work, or for a special projects, or during heavy workload periods. generally for a period of time not to exceed one year. and adding J. Intermittent Employee as follows: J. Intermittent Employee - -Means an employee who works occasionally or "on-call" for an indefinite time; under the same terms and conditions as temporary employment. 2. By amending Section III. COMPENSATION,A.Amount as follows: A. Amount. Employees of the City shall be compensated according to the schedule established by the City Council. An increase in pay to the next higher step of a pay range shall be made on the annual anniversary date of hire. for employees not at the top step. This shall remain until such time as there may be a reclassification or promotion. In that case. the new date for step changes shall be on the anniversary of the effective date of the reclassification/promotion. The wages or salary so established is the total remuneration for employment; however, the City may provide allowances for uniforms and cars, and reimbursement for official travel, insurance, or other expenses incurred in the conduct of official business in accordance with City policy. 3. By amending IV. BENEFITS. A. Eligibility and paragraph 2 of B. Insurance as follows: A. Eligibility. All regular employees shall become eligible for and may receive certain benefits, as set forth below. An employee suspended without pay for more than one pay period, or on a regular unpaid leave_of absence, shall not be eligible for any benefits and shall not be allowed to use any benefits other than group health insurance, life or long term disability insurance as provided for in the insurance policies. Part-time employees who do not regularly work 311 hours or more per week and temporary employees are not eligible for City benefits other than the continuing education benefit. B. Insurance,paragraph 2 Part-time employees who regularly work 2-5.IQ hours or more per week shall receive pro rata insurance benefits. Suspended employees and employees on a short leave of absence without pay shall receive insurance benefits as if they were not suspended or on leave. Employees on a regular unpaid leave of absence shall receive insurance benefits in accordance with the insurance policy only if the employee pays the full cost of the insurance. 4. By amending Section V HOLIDAYS AND LEAVES,A. Eligibility,B. Holidays, C.Vacation Leave,and D. Sick Leave as follows: A. Eligibility. All regular employees may take certain holidays and leaves, as set forth below. Employees suspended without pay for more than one pay period, or on unpaid leave of absence, shall not accrue or be allowed to use any accrued leave. Except as otherwise provided below, part-time employees who do not regularly work 23 30 or more hours per week and temporary employees do not accrue and will not be paid for holidays and leaves. Other part-time employees shall receive holiday pay on a pro lata basis,based on their hours regularly worked per week divided by 40. B. Holidays. Regular employees who regularly work 20 30 or more hours per week are entitled to time off with pay on holidays. City offices shall be closed for business on each such holiday, but employees may be required by their department heads to work on holidays when the nature of their duties or other conditions require. An employee required to work on a holiday shall be paid or receive compensatory time at the rate of one and one-half times the employee's base pay, plus the employee's regular rate of pay for the holiday. When a holiday falls on a Saturday, the preceding Friday is a holiday. When a holiday falls on a Sunday, the following Monday is a holiday. If a holiday occurs during an employee's scheduled vacation, it shall not be counted as part of said vacation. The following days are paid holidays: C. Vacation Leave. 1. Amount. All regular employees who regularly work 24330 or more hours per week shall accrue vacation leave on a bi-weekly basis. D. Sick Leave. 1. Accrual. All regular employees who regularly work 2$3 or more hours per week shall be entitled to sick leave with pay. This leave shall accrue at the rate of 3.69 hours on a bi-weekly basis. An employee may accumulate no more than 960 hours of sick leave. Note: The stricken language is deleted;the underlined language is inserted. Passed in session of the City Council of the City of Shakopee, Minnesota,held this day of , 1997. Mayor of the City of Shakopee Attest City Clerk Approved as to form: City Attorney CONSENT CITY OF SHAKOPEE Memorandum /y E. 3, TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Dental Insurance DATE: October 30, 1997 INTRODUCTION: The Council is asked to authorize an employee-paid, voluntary dental insurance program. BACKGROUND: The City is frequently asked during labor negotiations to provide a dental insurance program. In addition to the cost to the City, a major reason that this has not been able to be provided is the need for 100%of a particular employee group to be enrolled. That has usually proven to be prohibitive. Recently, we received information from our AFLAC agents describing the "Edge Plus" dental program from Brokers National Life. A major advantage is that only three full time employees need to be enrolled. A brochure describing costs and benefits is attached. AFLAC agents assist the Payroll/Benefits Coordinator in coordinating the annual open enrollment process which is usually the first week in December. AFLAC is requesting the City's approval to offer supplemental dental insurance in addition to the other coverages available for cancer, accident disability and intensive care. This would be voluntary program, in which the premiums would be entirely paid by employees. Staff checked alternatives with Delta Dental, and the League of Minnesota Cities Insurance Trust health options. This is seen as being very competitive, and attractive due to the low number of employees needed for participation. BUDGET IMPACT: The only cost is $10 per month for administration. We propose that the $120 be paid by the City, to come from budgeted line items. RECOMMENDATION: We recommend that the City authorize AFLAC to offer the"Edge Plus" dental program, with the understanding that it is voluntary, with premiums to be paid entirely by employees. ACTION REQUIRED: If the Council concurs, it should, by motion, authorize establishment of the "Edge Plus" dental insurance program. Ul,( OIL+ ""'` Mark McNeill City Administrator MM:tw o v N . „ 000 " -a ••4 'b U b •O V H al cd L. O iv ' 1-., W ' o 0 0 0 0 id • v d O v 0 c2 z ' '-1 oco � s. vO • U > p O W to W rt v u +..+ N v �, > CG v v o U ~ v -7:i '; CG " " s o o v o .0 cd 4" 0 a k zd waw ,„ zo o � v v � - F-1 ,. O cd - v .ti N b-d .4 174C b�..A.....1 v amu{ ' d-1 t [ v w _p• v "d G i , v .-. .5 4, >o "3v k >. _ vaiv '4' >. C ,- 0-, . . v 'V v s. Ncd b L., a. OW EH U W ° v o cn C. o U n. 4 n ti UQ cd O O 0 U fiO hW u v y v - -- [• y +. viv v, U , [' vnom *° v • cd .� t. n.Q • 0; ,• 4 - � � 4-, -0 O CiW vGG 'o k0v4" v • - W c.. 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Q 0 _ ,cr. ri, Abd ,-- r o � � 8A- a cp H ,00 n "ci,tri � n c ^ x ", tD d O C/l O . 1-f 00 0 z fD G 5. c O 0. ° w 'o ��- .'7' '- �' n '- v`�i �.. $^.11 < O G\ z n O w n 0 ? M (� 7 ti y C J Q , N. �' cn w w O cr 0.1 pp C).."; n a o z " ° c 7 h P- n `o n M v 'o' °- H ° ] a z i.� � V n r4CAro0a -, w a N O -,, At 0- c G rf • vl ,--. ti ry 7' n N. ] �� C H N r.- w Q 8 O 7 C n H `, rf a 0. e 0 ; o C • CITY OF SHAKOPEE I4/. E. /. Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Change of Classification- Engineering Tech IV DATE: October 30, 1997 INTRODUCTION: The Council is asked to approve a promotion from Engineering Technician III to Technician IV for John DeLacey. BACKGROUND: Attached is a request by Public Works Director Bruce Loney to change the job classification for John DeLacey from Tech III,to Tech IV. As shown, Mr. DeLacey has worked for the City as a Tech III for 11 years, and has the job responsibilities consistent with that of an Engineering Technician, as defined in the Stanton Survey of municipal job positions. An Engineering Technician III, according to the Stanton Survey,has the skill level, duties, and minimum qualifications as shown on the attached Stanton Survey pages. The proposed Engineering Technician IV is also shown. The action is being requested at this time by Mr. DeLacey, and at the recommendation of the Public Works Director,to recognize John's increase in job responsibilities. Note that a promotion is covered in Section VIII. C. of the City's Personnel Handbook. In that, "A department head may ask the City Council to allow the promotion of an employee from the employee's current position to a similar,more responsible position in the same or a related department. If the employee's experience and the needs of the City warrant the promotion,the City Council may abolish the current position, establish the more responsible position, and promote the employee into the more responsible position without following the procedures for filling vacant positions." We are not recommending abolishing the existing position. BUDGET IMPACT: There is no immediate budget impact caused by this change. Council may recall that, after implementation of the new pay plan earlier this year, a problem existed in that the Technician III and Technician IV positions were assigned to the same pay grade. Part of that problem was resolved earlier this year with the promotion of the then Technician IV to Project Coordinator. The conflict between Tech III and Tech IV remains, and will likely be addressed early next year, assuming budget constraints permit, and a logical solution can be found. However, for the time being, the action being sought is to recognize Mr. Delacey's skills and tenure with the promotion to Technician IV. RECOMMENDATION: We recommend that John DeLacey be promoted to Engineering Technician IV, with no change in pay at this time. If approved, this would be effective November 6, 1997; November 6th would be John's new anniversary date. ACTION REQUIRED: If the Council concurs, it should, by motion, authorize the promotion of John DeLacey to Engineering Technician IV, effective November 6, 1997. Mark McNeill City Administrator MM:tw CC: Bruce Loney, P.W. Director CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Tech IV Reclassification for John DeLacey DATE: November 5, 1997 INTRODUCTION: In the 1997 Budget discussions for the Engineering Department, it was proposed to promote John DeLacey from an Engineering Tech. III position to an Engineering Tech IV position. Mr. DeLacey has been an Engineering Tech. III since 1986 for the City of Shakopee and has 20 years experience total in the Civil Engineering technician field. Mr. DeLacey, over the years, has increased his job skills and abilities in many areas and is warranting the promotion. The main areas of increased skills and abilities are as follows: • Lead CADD operator for the City's computer aid drafting and design. • Project designer of many public improvement projects. • Calculates all assessments for the City of Shakopee. • Review of building permits. • Administer the storm drainage bills and calculations. This is a summary of the skills and abilities that I believe that meet the Tech. IV position, particularly in the areas of CADD operation, project design, cost estimating, assessments, and bid proposals for City projects. Also, Mr. DeLacey fills in for the Project Coordinator in his absence to coordinate all of the inspection duties as needed for the City of Shakopee. I would like to have this request P q placed on the November 5, 1997 Council agenda for consideration. If you have any further questions in regard to this memo, please feel free to contact me in my office. (1 .47/ ruce Loney Public Works Director BL/pmp DELACEY 0 M C N N co N y. 0 0 Z 0 _ p0 Z b 0 Om � 7 I 4 C L'I- C > O N 0 0 taa C W p + CON ,O L y 0•^0 0 • a+ a• U CO• Cy 0 �aa (CO 0 . > 0. W Ws L0a 0UC , _ •^ d C O) >�1... "O 7 y CO 0 (Co y0 .5 ^ C co 4, a, 0 0 4- p - C W U O O . > C O O)C 44- U a• 7 ...0 4-I- .,0. 0 CO 01 0 4, yyQ 'pU 1. U y N.. W'0 O C y.0 (C y C '7p L C 0) ••- art Cl W W _'0 W 0 O 01 0) CO y O 0 013 a)If1 Y 4-'�p .0 r. C C y .0 M. CC U AY C. lV t y C^ •0 ay.( .. w LE W. W'0 L 0 C 71 OCL 0•U 7 W . . y 0) W O C L01 'Oy EL4 C W' N CO-O 0 0'O O)C. .r „C,4 - L•W 00) •C ` 0.... W a+ 0 0IC. C)> •t- O 4.0 W C 0.0) 'j'y, 0 0 . 0 W •y L. LI a0 >4. '0)a. 'C'>. 4. (CO0 C> .0 X C . . 0 'C 'C'> .. WC 00 0L. 0- yCy � L O WC C 0 O �C �L 00.. W 00 * 0C 4- U 07' 70 ( Ca+-. 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Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Residential Parking Permits DATE: October 30, 1997 INTRODUCTION: The Council is asked to give further direction as to what it wishes to do regarding parking concerns in the vicinity of the Courthouse, and specifically, whether it wants to implement a residential parking permit program. BACKGROUND: At its meeting of October 7th,the City Council considered the attached information,which suggested the implementation of a residential parking permit program for requesting residential areas adjacent to the Courthouse. This was in response to concerns received from neighbors who are unable to park on street, due to employees or patrons of the Courthouse. Recognizing the potential problems that starting such a program will present-once restrictive signage goes up on one block, it will likely be requested in most of the areas bordering the Courthouse campus- Council directed that the County be contacted again to request their help in having employees park in the newly constructed parking lot at the old hospital site. That request was relayed by both staff, and members of the City Council. The County Administration response was that they had sent either letters, or e-mail to each of their employees that work in the Courthouse, directing them to use the off-street parking lot. However,they felt that many of the on-street spaces were taken up by Courthouse patrons, over whom they have no control. During the week of October 20th, I received a call from one of the neighbors, again asking that something be done. Other than what has been done by the County to date, with apparently limited success, or leave the situation as is, the only suggestion City staff has is to start a residential parking permit program. If directed by Council to implement, signs would have to be ordered and posted, meaning a delay of approximately two weeks before the program could start. In addition,permits would have to be issued to participating residents. One further note -the most recent requesting party asked that this be made permanent,rather than temporary(until the Courthouse construction project is completed). We recommend that it be temporary, so that full impact of the addition of diagonal spaces on Fifth Avenue next year is known. It would also assist with the necessary code changes, if the changes are temporary rather than permanent. RECOMMENDATION: Other than a continuation of status quo,the recommendation by staff is to implement the residential parking permit program for the 200 block of West Fifth Avenue. This is done with the understanding that other residential blocks will probably ask for the same restrictions, which may merely relocate the problem areas to other locations. ACTION REQUIRED: If the Council concurs, it should, by motion, adopt the following resolution: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAKOPEE, ESTABLISHING A RESIDENTIAL PARKING PERMIT PROGRAM FOR THE 200 BLOCK OF WEST FIFTH AVENUE DURING CONSTRUCTION OF THE COUNTY COURTHOUSE. 4d Mark McNeill City Administrator MM:tw CC: Tom Steininger, Chief of Police Bruce Loney, Public Works Director CITY OF SHAKOPEE �/ C Memorandum '' G' ' TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Residential Parking Designation-200 Block West Fifth Avenue DATE: October 2, 1997 INTRODUCTION: The Council is asked to designate a temporary residential parking permit program for the 200 block of West Fifth Avenue. BACKGROUND: Earlier this year, the Council gave concurrence to a plan,which, if requested, would designate residential areas in the vicinity of the Courthouse for residential parking only. This was in conjunction with the County Courthouse construction project. At a"neighborhood meeting"in July,residents in the blocks surrounding the project were advised that, if parking as a result of Courthouse construction created problems for them, that they could request a residential parking restriction. Since construction started the last week of July,there had been no requests received until September 18th. That was from the 200 block of West Fifth Avenue,which is located across the street from the site of the addition. The attached letter was delivered to five residences on September 29th. They were to respond regarding their level of interest; staff feels that, for the ease of enforcement, entire block faces should be designated one way or the other, and not restrict individual properties on that block. Therefore, a majority of the residents should be in favor. Four responses were received,two of them either did not drive, or did not have problems,but sympathized with the requester. The fourth respondent is in favor, and requests a total of 3 permits(two per household has been anticipated). As this is the first such request,the process needs to be established. The City Attorney has provided the attached resolution which would establish this on a temporary basis, during construction. The original requester prefers this to be permanent; there are two reasons why we are not recommending that at this time. First,we do not know what the impact of the additional diagonal spaces will be on the Courthouse parking demand- it is possible that the restrictions may not be needed on that block after completion. However, that can be judged later. Second, because this is temporary, a resolution can enact the change; if it is permanent, it would best be done by ordinance. In order to get the signage up as quickly as possible, the resolution is the preferred method. The conditions are noted in the resolution. Basically, it is in effect only during the hours that the main Courthouse is open. Residents were also advised that there would be no"voiding"of tickets which are issued to cars not displaying the permit. RECOMMENDATION: If the Council wishes to enact a residential parking program for permit holders, it should adopt the attached resolution. If approved by the Council, signs will need to be posted; those will be available in about a week. ACTION REQUIRED: If the Council wishes to establish a residential parking program in the 200 block of West Fifth Avenue, it should,by motion, adopt the following resolution: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAKOPEE,ESTABLISHING A RESIDENTIAL PARKING PERMIT PROGRAM FOR THE 200 BLOCK OF WEST FIFTH AVENUE DURING CONS IKUCTION OF THE COUNTY COURTHOUSE ith,v010 Mark McNeill City Administrator MM:tw Plat SHAKOPEE September 29, 1997 Dear Resident: If you are one of the courthouse construction project area neighbors who attended a "Neighborhood Meeting"at City Hall earlier this summer,you heard briefly discussed the possibility of implementation of a residential parking permit as a way to combat potential problems with all day parkers. Recently, a request was received at City Hall to have a residential parking restriction placed in the 200 block of West Fifth Avenue. This is the first such request that has been received, and staff is in the process now of preparing action for the Council to consider for implementation. If the City is to do this, it would be with very specific criteria: 1. The restriction would be enforceable from 8:00 AM to 4:30 PM Monday - Friday. 2. Restriction would be for the entire"block face"; in other words, it would be for all properties on one side of a street in a particular block. The majority of residents of the requesting block would have to be in concurrence on whether to restrict parking. 3. Permits must be displayed from rear view mirror during all hours of enforcement. 4. Regular permits to be utilized by residents of that address only; otherwise,permits are subject to revocation, for misuse. Daily"guest permits"would be available through the Police Department for the limited occasions when permission for non- resident parkers is needed. 5. Designation of this"permit only"area will be temporary during the construction project only, and until such time as the current phase of the courthouse under construction is completed and opened to the public. You need to be aware that the Shakopee Police Department would be enforcing this restriction. No "voiding" of tickets will take place if the permit is not properly displayed, or if guests fail to obtain and display temporary permit. COMMUNITY PRIDE SINCE 1857 129 Holmes Street South• Shakopee,Minnesota• 55379-1351 612-445-3650 • FAX 612-445-6718 Specific implementation of this area will need to be considered by the City Council, and will be if there is a majority of the residents of that block who are in favor of creating the restriction. If there is no majority,no restrictions will take place. So that staff has an understanding as to the degree of support for such restriction, I ask that you leave me a message at City Hall(496-9662) and advise whether you are in favor of such a restriction, with the covenants described, or whether you wish to keep the existing parking as is. I ask to hear from you either way by noon, Thursday, October 2nd. Thank you. Sincerely, Mark McNeill City Administrator MM:tw • RESOLUTION NO. LI7 ,3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAKOPEE, ESTABLISHING A RESIDENTIAL PARKING PERMIT PROGRAM FOR THE 200 BLOCK OF WEST FIFTH AVENUE DURING CONSTRUCTION OF THE COUNTY COURTHOUSE WHEREAS, Scott County is currently constructing an addition to the County Courthouse located in the City; WHEREAS, during the construction project, on-street parking in some of the residential neighborhoods adjacent to the courthouse will be limited; WHEREAS, a majority of the residences in the 200 block of West Fifth Avenue have requested that a residential parking permit program be implemented; NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, as follows: 1. Parking in the 200 block of West Fifth Avenue is hereby restricted during the hours of 8:00 a.m. to 4:30 p.m. Monday through Friday to those persons obtaining a residential parking permit from the City; 2. Residential parking permits must be displayed on the rear view mirror of each vehicle for which a residential parking permit has been obtained; 3. Residential parking permits may be used only by the residents of the homes located in the 200 block of West Fifth Avenue; 4. Daily "guest permits" may be obtained through the police department; 5. The residential parking permit program will expire after the current phase of the courthouse construction project is completed; 6. City staff is hereby authorized to place official signs in the 200 block of West Fifth Avenue restricting parking in accordance with the provisions of this Resolution. JSf131002 SHIS5-23 Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of , 1997. 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L OM IMP Li] L OM OM IIIMMIllall ....... \• .1 .- 1 \ 133111S 11.00S — — — ‘.1 N 1---- , i =1' 40 P••< 0,.•,r) I I CL—IN VI I I 0 cn I Sal& I 7.<1 ti I I I I I 6 IT.i4i I I CONSENT CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Legislative Policy Adoptions -Associations of Metropolitan Municipalities League of Minnesota Cities DATE: October 28, 1997 INTRODUCTION: The Council is asked to adopt legislative policies for both the Association of Metropolitan Municipalities, and the League of Minnesota Cities. BACKGROUND: The City of Shakopee is a member of both the Association of Metropolitan Municipalities, and the League of Minnesota Cities. Each year, the two organizations have policy study groups, which look at issues that will be, or are desired to be considered by the Legislature. Each study group then makes recommendations to the respective board of directors, who then ask the member cities to adopt them,prior to the legislative session. The Association of Metropolitan Municipalities Annual Legislative Meeting will be held the evening of November 13th; the League of Minnesota Cities Policy Adoption Conference will be Friday,November 21st. The Council is asked to endorse the adopted policies. It should be noted that, while not every policy is in strict agreement with what we as the City of Shakopee might individually want, overall, the policies as proposed are generally favorable to the City. RECOMMENDATION: We recommend that the respective policies for the 1998 Legislative Session be adopted. The Council is asked to list its five top priorities for the LMC Policies. Those should be forwarded to the City Administrator, for compilation, unless the Council wishes to act on this as a body. ACTION REQUIRED: If the Council concurs, it should,by motion, adopt the proposed 1998 Legislative Policies for the League of Minnesota Cities, and also for the Association of Metropolitan Municipalities. /to 11k_ kbit.o Mark McNeill City Administrator rks_,,,.7 145 University Avenue West, St. Paul, MN 55103-2044 LMC League of Minnesota Cities Phone: (612) 281-1200 • (800) 925-1122 Cilias p omo g excellence Fax: (612) 281-1299 • TDD (612) 281-1290 Y October 24, 1997 TO: Mayors, Managers, and Clerks (Please distribute a copy of these materials to your councilmembers) FROM: James F. Miller 1,L''' /in jit--) Executive Direct r RE: 1998 Policy Adoption Conference Enclosed is a copy of the 1998 City Policies as proposed by the League's policy committees and Board of Directors. These policies address significant city issues including property tax reform, rights-of-way management, local government aid, annexation, tax increment financing, and transportation funding. The League membership will vote on these policies as part of the Policy Adoption Conference on Friday, November 21, 1997, at the Ramada Plaza, 12201 Ridgedale Drive, Minnetonka (see map on back). The 1998 legislative session will be an active year for cities. In fact, the legislature will spend considerable time and effort on many issues that will undoubtedly affect how you govern and manage your cities. To ensure that the League's policies and legislative activities represent your city's interests, please plan to attend the Policy Adoption Conference on November 21. The accompanying ballot should be filled out and returned to Mary Diedrich by Monday, November 17,regardless of whether you will be attending the conference. The results will be tabulated and shared with those present on November 21 to help facilitate discussion. In order for League staff to plan properly for the meeting, please register as early as possible. We look forward to seeing all of you on November 21st. - OVER- AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER 1 1 0 S././. 2 LH- ÷-f-----------. cu = m 'Q f Cil cu m m Q-- \ l m m O p a, \ I 4 -A NA, .N Er-64 v, . rr ' G = 4 m G CO C.71CA _ C+l CD y ITI i I Z S Q 00Y jl J WI T. I 00 M Cr O CD =_ I 43 O p = ' I • * 471 1 , , Don't miss... The League of Minnesota Citi ; } •\ PolicyAdoption Conference Hear,learn, discuss, take home,and vote on important policies that will set the course for the cities'legislative efforts. Write it down now! Agenda Friday 8 a.m. Registration November 21, 1997 Ramada Plaza Hotel 8:45 a.m. Welcome Minnetonka Bob Long, LMC President 9 a.m. ROW Update James Miller, LMC Executive Director Although LMC was successful during the 1997 session in preserving the legal authority of cities to manage their rights of way, equally important is negotiating with industry the technical standards that will ultimately be adopted by the Public Utilities Commission. Staff will update you on this important and evolving issue. 9:15 a.m. Development Impact Fees In an era of constrained financial resources, some Minnesota cities have sought to make development pay more of its own way through impact fees. A local official, legislator, and representative of the Twin Cities builder's community will offer their perspectives. 10 a.m. Electric Deregulation and How It Could Affect Property Taxes The investor-owned utilities are seeking a property tax reduction on certain property used in their operations. This could severely impact the tax base of cities, counties and schools. Legislators and affected cities will discuss this proposal. 10:30 a.m. Break 10:45 a.m. Electric Deregulation and What It May Mean For Your City Deregulation of the electric industry has already happened in some states. It is almost certain that both Congress and the State Legislature will be taking actions within the next few years that will affect all cities as consumers, taxers, and in some cases, producers of electric power. Key legislators and others will offer their predictions. 11:30 a.m. Personnel Regulations Cost Task Force Member State laws and regulations impact cities as employers. A member of the League's Improving Local Service Delivery Personnel Subcommittee will explain how they hope to persuade legislator of the need to limit the costly impacts of personnel regulations. Noon Lunch 1 p.m. Cities as Teleco Providers No city can afford to be left out of the telecommunications revolution. Hear how some cities have taken matters into their own hands by becoming telcom providers for their citizens. 1:45 p.m. Potpourri 2 p.m. Break To register 2:15 p.m. Policy Adoption Call the LMC fax library at (612) 215-4039, and request document#61010. 3:30 p.m. Adjourn Registration form LMC 1997 Policy Adoption Conference City Advance Registration Contact person deadline November 14, 1997 Telephone number Name Registration Title per person: Address $40 Make checks payable and mail to: City League of Minnesota Cities—PA State Zip 145 University Avenue West St. Paul, MN 55103-2044 L J ✓ � Housing form LMC 1997 Policy Adoption Conference Name Pleases specify: ifY: Representing $69 + tax single or double Cut-off date is October 30, 1997 Address I will arrive after 4 p.m. Please guarantee the reservation with: City (Credit card) Number and expiration date State Zip Phone:( ) C C Mail to: Month/Day/Year Month/Day/Year Ramada Plaza Hotel Arrival Arrival time Departure 12201 Ridgedale Drive Minnetonka, MN 55343 Check in time 3 p.m. Check out time 12 p.m. (612) 593-0000 (800) 588-0443 Exit off I-394 on Ridgedale Drive One mile east of I-494 and I-394 L J Feel free to duplicate for multiple registrations LMC 145 University Avenue West, St. Paul, MN 55103-2044 League of Minnesota Cities Phone: (612) 281-1200 • (800) 925-1122 Cities promoting excellence Fax: (612) 281-1299 • TDD (612) 281-1290 LEAGUE OF MINNESOTA CITIES POLICY ADOPTION PROPOSED MEETING RULES 1. Registration Registration shall remain open from the opening of the conference until completion of policy adoption. 2. Voting Privileges The vote on any legislative matter shall be by acclamation; but at any time before the result of the vote is announced, the presider may, and shall, if requested to so do by ten or more delegates present, submit the question under consideration to a vote by municipality, in which case each member municipality represented shall have one vote. Each current LMC member city shall designate one official as delegate (and may select another city official as an alternate) for voting purposes. Possession of the voting card of the city and the signed voting card register shall be evidence that the holder of the voting card is the city's voting delegate. 3. Committee Reports The chair or vice chair of each committee shall present the committee report and move adoption of the policy statements. Before adoption of the committee report, the chair or vice chair may place on the agenda for discussion a motion supported by at least 10 delegates to: A) make a substantive change or addition to the language, or B) divide a proposed policy statement. The final vote shall be on the committee report as amended. The text of nonprocedural motions and amendments, other than motions to divide a policy statement, must be submitted in writing to the presider prior to debate. 4. Approval Requirements A) Amendments to language or division of proposed policy statements require a majority vote of the City delegates voting on the motion. B) Final passage of any policy or amended policy requires a favorable vote of 2/3 of the City delegates voting on the policy. = OVER= AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER 5. Disputes Disputes regarding eligibility to vote shall be referred to the LMC General Counsel and may be appealed to the conference. Appeals from decisions of the general counsel shall be a special order of business and may be taken up at any time a new question (main motion) is in order. 6. Limits on Debate Each speaker should limit comments on any debatable question to three minutes. However, the chair may further limit the debate by each speaker in order to consider an issue if numerous delegates request to be heard on the issue. 7. Parliamentary Procedure Precedence. The policy adoption process shall be governed by the LMC Constitution, these rules, and Roberts Rules of Order, Revised. The conference shall be its own judge of these rules and Roberts Rules of Order. Changes. Motions to "rescind" and "reconsider" shall require a two-thirds vote of delegates present and voting. l:mdiedric\policies\98rules.pac a. 3 a) - G -a O ea o a` C. U .-, 5 N GJ O cr O o U ,, fsr y ov, a b 0 C U Ra > V •a 0 • 0 a)a) c ci 00 v, . E E o U y cn —i . 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E-. c c y O c til " E ›. •E ° -a o 6, *- <,) a „ a) E Y C is O t c •.a ri a E U `O cn a) a) ° o=o t a) cC i OL c,„ a .a Y c '� a) o a E ° 'a a _ _ o ct oG a NO C C C a.. E- -a o o Q Q a) Y ct C] > rz ° W x C C c kc p" a) C C u c = E io CZ N td O c .b v o .U RS ° > a) as E E c4 a C7 > u ku o a Q a 0 € °' p a a > oo E w N .5-- - U ccS �' '> a.: ` c U U v7 O c O E 4. " U •E OU '" ao .c. 0 o a O a U 0 E a) F. ia. o ° .0c 5 0 a a) 0 E CO y .3 o v] o ar i L'"' O >, «, ° c < to o O ° cd o _ o a `� ° a = c° o a' E a C) a. F- '° cd o a) c o w X a=) n a Cn L (.7 E •-5 ,- U o a) a c Y et c •U U �+ _ ° s 0 •- a o- a) 7 In c c a o o c, ° t a o 0o ce R a) a) E E s a) o ics ° a) o = a. o aa)) p. 3 3 a) p aa) 7a- G cC iC cXa iC a) Ct CO O i a>i C) U C3 O OU Q o O O c`^... •-T ate) 'Ua C VD E.' U VD = a Ea in c G La. -a a C 04 w E- a` w cC a m C7 < U cG Q et a) N O — M v1 �O o - (-,ia — N M 7r vl 4a I` azo N M Ct v) .0 (` oa — — La. La. LL La. Ca.. Li. w La. La. La. La. Ca. La. La. Cti. C. W Lal W Liz W Lt7 Caa Gil u...1 W Laa W La. LL La. La_ Ca.. [a., La.. E.I. LL U. La. W. La. La. La. La. _a .] .a -7 ,-a ..a _a -] .a ..a ..a ..] 1 Use this space to make any comments or changes to the proposed policies. Use this space to suggest and briefly comment on additional policy issues you wish to be addressed. If necessary, use additional sheets. LEGISLATOR CONTACT SHEET Are you acquainted with your state senator and state representative? The • League of Minnesota Cities is compiling a list of possible legislative contacts. We need your help. City Official: City: Address Phone Number: Fax: E-Mail: _ Legislator Relationship (e.g. neighbor, friend) 1. 2. 3. Please return completed form to: L League of Minnesota Cities M Intergovernmental Relations 145 University Avenue West St.Paul,MN 55103 League of Minnesota Giles (612) 281-1200 Cities promo ti g excellence Fax (612)281-1299 LMC 145 University Avenue West, St. Paul, MN 55103-2044 League of Minnesota Cities Phone: (612) 281-1200 • (800) 925-1122 Cities promoting excellence Fax: (612) 281-1299 • TDD (612) 281-1290 October 24, 1997 Dear League Members: I am pleased to submit the accompanying draft 1998 Legislative Policies for your consideration. These policies were developed by more than 200 city officials serving on the League's policy committees and their respective policy task forces. For those of you who served on a task force or policy committee, I would like to thank you for your time and efforts. The hard work and input of city officials is the necessary foundation for developing and implementing a successful legislative agenda for the League of Minnesota Cities and its members. For those who could not participate in the policy committee process, your input in the League's policy development process is still crucial. The League needs your review of the attached draft 1998 Legislative Policies and the proposed resolutions. Please plan to attend the LMC Policy Adoption Conference on November 21 at the Minnetonka Ramada Plaza. If you cannot attend the conference and have concerns or suggestions, please contact any member of the Intergovernmental Relations staff at the League. On behalf of the Board of Directors and League staff, please accept my sincere thanks for your contribution to this most important process. Sincerely, Robert C. ong League President City Attorney, City of Mounds View I:mdiedric\policies\pac\pres.ltr AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER CONTENTS Letter from the League President General Policy Statement iii League Staff iv Legislative Policy Committee Members v Policy Development Process vii Statement of Intent viii PART I -- 1998 POLICY GUIDELINE Improving Community Life CL-1. Livable Communities 1 PART II -- 1998 CITY POLICIES Improving Fiscal Futures FF-1. State-Local Fiscal Relations 3 FF-2. State Shared Revenues 4 FF-3. Taxation of Municipal Bond Interest 5 FF-4. City Fiscal Year 5 FF-5. Sales Tax on Local Government Purchases 6 FF-6. Delinquent Property Tax Penalties and Interest 6 FF-7. Payments for Services to Tax-Exempt Property 7 FF-8. Truth-in-Taxation 7 FF-9. State Deductions from LGA 8 FF-10. Reporting Requirements 8 FF-11. Federal Budget Cutbacks 8 FF-12. Local Performance Aid 9 FF-13. Price of Government 9 FF-14. Development Fees 10 FF-15. Residential Nonhomestead Property Tax Relief 11 FF-16. Electric Utility Taxation 11 Improving Local Economies LE-1. Tax Incement Financing 12 LE-2. Property Tax Reform, Levy Limits, and TIF 15 LE-3. Economic Development Programs 16 LE-4. Redevelopment of Developed Communities 17 LE-5. Property Tax Abatement Authority 18 1998 City Policies LE-6. Brownfields 18 LE-7. Growth Management and Annexation 20 LE-8. State and/or County Licensed Residential Facilities (group homes) 21 LE-9. Affordable Housing 22 LE-10. City Role in Telecommunications 24 LE-11. Redesign of Electric Utility Regulation 26 LE-12. Adequate Funding for Transportation 28 LE-13. State Aid for Urban Road Systems 28 LE-14. State Aid Roads for Contiguous Cities Under 5,000 29 LE-15. Turnbacks of County and State Roads 30 LE-16. Cooperation Between Counties and Cities Over County Roads Within Cities 30 LE-17. Management of Rights-of-Way 31 LE-18. Communications Infrastructure 33 LE-19. Effective Telecommunications Competition 33 LE-20. Local Zoning Regulation of Telecommunications Service Providers 34 LE-21. ISTEA Reauthorization 34 Improving Service Delivery SD-1. Redesigning and Reinventing Government 35 SD-2. Unfunded Mandates 37 SD-3. Civil Liability of Local Governments 38 SD-4. Environmental Protection 39 SD-5. Personnel, Pensions, and Labor Relations 40 SD-6. Election Issues 43 SD-7. Local Election Authority 43 SD-8. City Costs for Enforcing State and Local Laws 44 SD-9. Access to Information Technology and Services 44 SD-10. Lawful Gambling Fund Expenditures 45 SD-11. Design-Build 46 SD-12. Mobile Home Park Oversight 46 SD-13. Proposed Plat Approval Authority 47 SD-14. Providing Information to Citizens 48 SD-15. Creating a Minnesota GIS Program 48 SD-16. State Licensing of Massage Therapists 49 ii League of Minnesota Cities General Policy Statement • One of the most important purposes of the League of Minnesota Cities is to serve as a vehicle for cities to define common problems and develop policies and proposals to solve those problems. The League of Minnesota Cities represents 815 of Minnesota's 853 cities as well as 12 urban towns and 24 special districts. All sizes of communities are represented among the League's • members (the largest nonmember city has a population of 163) and each region of the state is represented. The policies that follow are directed at specific city issues. Two principles guide the development of all League policies. 1. There is a need for a governmental system which allows flexibility and authority for cities to meet challenges of governing and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and 2. The financial and technical requirements for governing and providing services necessitate a continuing and strengthened partnership with federal, state, and local governments. This partnership particularly in the areas of finance, development, housing, environment, and transportation is critical for the successful operation of Minnesota's cities and the well-being of city residents. 1998 City Policies iii LEAGUE STAFF WORKING WITH STATE AND FEDERAL ISSUES Jim Miller, Executive Director Mandates, telecommunications Gary Carlson, Director of Intergovernmental Relations General revenue sources for cities including aid to cities and the property tax system, fiscal administration of cities, economic development and redevelopment, personnel,transportation Kevin Frazell, Director of Member Services Government innovation and cooperation Tom Grundhoefer, General Counsel General municipal governance, teleconununications Ann Higgins, Intergovernmental Relations Representative Telecommunications, housing, elections and ethics, utility service districts, transportation Andrea Stearns, Intergovernmental Relations Representative Tax increment financing, land use, ethics, economic development and redevelopment, fiscal issues, housing, public safety, general municipal governance Remi Stone, Intergovernmental Relations Representative Growth management and land use, environmental protection, personnel Eric Willette, Legislative Policy Analyst General revenue sources for cities including aid to cities and the property tax system, fiscal administration of cities, pensions iv League of Minnesota Cities Legislative Policy Committee Members Improving Community Life Steve Okins,Vice Chair, Finance Director, Willmar Dick Abraham,City Administrator, Lake City Sue Gehrz,Chair,Mayor, Falcon Heights Karen Anderson, Mayor, Minnetonka Jean Andre,Assistant to Manager/HRA Coordinator, David Beaudet,Councilmember,Oak Park Heights Golden Valley Steve Bjork,City Planner/Coordinator, St. Francis Jack Barlow,Councilmember, Lauderdale Thomas Burt,City Administrator, Rosemount Bill Barnhart, Intergovernmental Relations, Gino Businaro, Finance Director, Mound Minneapolis Dave Callister,City Administrator,Osseo Robert Benke, Mayor New Brighton Henry A. Duitsman, Mayor, Elk River John Blahna, Mayor, Landfall Terry Dussault,Assistant to Manager, Blaine Cathy Busho,Mayor, Rosemount (alternate) Kathleen Carmody,Councilmember, Brooklyn Gary Eitel,City Administrator, Rogers Center Charlotte Erickson, Administrator/Clerk, Minnetrista Peter Connor,Mayor,Owatonna Jerry Faust,Councilmember, St. Anthony Lorenzo Davis,Administrative Intern, Eagan Roger W. Fraser,City Manager, Blaine John Doyle,Councilmember, Marshall Rick Getschow,City Administrator, Hector Michael Ericson,City Administrator, Watertown John Gretz,City Administrator,Apple Valley Pat Farrell,Chief of Police, Rochester Rod Hale,Councilmember,Cottage Grove Sharon Feess,Councilmember, Brooklyn Park Jeff Haubrich,Assistant Council Administrator, Evelyn Fox,Councilmember, Breckenridge Red Wing Wendy Gorham,Councilmember,Mora Steve Helget,City Clerk/Administrator,Tyler Harlan Gorath,Councilmember, Fairmont Patrick Hentges,City Manager, Mankato Arly Gunderman,Councilmember,New Brighton Susan Hoyt,City Administrator, Falcon Heights Vivian Hart,GTS,St. Paul Bill Huepenbecker, Intergovernmental Director, Sue Henry,Administrative Aide,St.Cloud St. Paul Fran Hesch,Councilmember, Hopkins Greg Isaackson,Clerk-Administrator,Cottonwood James Hurm,City Administrator,Shorewood Joel Jamnik,Campbell Knutson, Eagan John Jenkins,City Administrator,Ortonville Barbara Jeanetta, Assistant to Manager,New Julianne Manship,Neighborhood Development Brighton Director,West St. Paul Elizabeth Kautz, Mayor, Burnsville Sandra Masin,Councilmember, Eagan James Keinath,City Administrator,Circle Pines Roberta Megard,Councilmember, St. Paul Dennis Kraft,City Manager, Robbinsdale James Mladek, Mayor, Montgomery Lynn Lander,City Administrator, Hermantown Ed Mylnar,Mayor, Lester Prairie Bob Larson,City Administrator, Deephaven Deb Moran,Councilmember, Burnsville Ann Lenczewski,Councilmember, Bloomington Larry Nicholson,Councilmember, Moorhead Kathy Lueckert,Assistant City Manager, Plymouth John Olinger,City Administrator,Mahtomedi Wes Mader,Councilmember, Prior Lake Isobel Rapaich,Councilmember,Duluth Michael McGuire,City Manager, Maplewood Char Samuelson,Councilmember,New Brighton Steve Mielke,City Manager, Hopkins Barbara Sanderson,Councilmember,Grand Rapids El Mlynar, Mayor, Lester Prairie Jolie Sasseville, Public Information Officer, Fergus John Moir, Finance Department, Minneapolis Falls Ruth Nelsen,City Clerk, Hilltop Betty Sindt,Councilmember, Lakeville Gary Neumann,Assistant Administrator, Rochester Grant Thorstad, Police Officer/DARE Instructor, John Perino,Mayor,Alexandria Rosemount David Pokorney,City Administrator,Chaska Blair Tremere,Assistant City Manager, Prior Lake Bryan Read,City Administrator,Montgomery Dawn Weitzel, Interim Deputy Clerk, Mounds View Douglas Reeder,City Administrator,South St. Paul Duane Zaun,Mayor, Lakeville John W. Remkus, Finance Director,West St. Paul Robert Rys,City Administrator, Minnesota Lake Improving Fiscal Futures Ryan Schroeder,City Administrator, Ramsey Alfred Schumann, Mayor, Eyota Joy Tierney,Chair,Mayor,Plymouth James Smith,Councilmember, Independence 1998 City Policies v Gerald Sorenson,Administrative Services Director, Mark Nagel,City Manager,Anoka Moorhead Rhoda Newlin,Councilmember, Red Wing Pete Stolley, Public Works,Northfield James Norman,City Manager, Montevideo Malcolm Tilberg,City Manager,St.James Bruce Peterson,Community Development Director, David Urbia,City Administrator, Blue Earth Willmar Gene VanOverbeke, Finance Director, Eagan Dan Rogness,Community Development Director, Jeff VanWychen, Intergovernmental Relations, Rosemount Minneapolis(alternate) Joe Rudberg,City Administrator, Becker Daniel Vogt,City Administrator, Brainerd Terry Schneider,Councilmember,Minnetonka Bill Waller,City Administrator, LaCrescent Chad Shryock,City Administrator, Eagle Lake Chuck Whiting,Clerk Administrator, Mounds View Robert Therres,City Administrator, Sartell James Willis,City Administrator,Inver Grove Brian Wagner, City Coordinator, Lakefield Heights Craig Waldron,City Administrator,Oakdale Donn Wiski,Councilmember, Roseville Daniel Wall, Mayor, Roseville Denny Wilde,City Administrator, Paynesville Improving Local Economies Betty Zachmann,City Clerk-Treasurer, Winsted Bonnie Cumberland,Chair, Mayor, Brainerd Improving Service Delivery Duane Zahn, Vice Chair,Mayor, Lakeville Kirsten Barsness, Economic Development Director, David M. Senjem,Chair,Councilmember, Rochester Cottage Grove Jerry Dulgar,Vice Chair,City Manager,Crystal David Beaudet,Councilmember,Oak Park Heights Patricia Crawford,Clerk-Treasurer, Motley Jerry Bohnsack,City Administrator,New Prague Laurie Elliott, Personnel Coordinator, Shoreview Gerald Breuer,City Administrator, Staples Brian Fritsinger,City Administrator,Arden Hills Kevin Carroll,Councilmember, Rosemount Theresa Goble, Finance Director, Brainerd Victoria Cox,Councilmember, White Bear Lake Ken Hartung,City Administrator,Bayport James Daniels,Administrator, Lake Minnetonka Mimi Hasselbalch,Councilmember, Vadnais Heights Communications Commission, Excelsior Andrea Hart Kajer, Intergovernmental Relations Leo W. Eldred,Councilmember,Moorhead Director,Minneapolis(alternate) Michael Ericson,City Administrator, Watertown Mark Karnowski,City Administrator, Lindstrom Keith Ford,Community Development Agency, Kay Kuhlmann,Council Administrator, Red Wing Minneapolis Myrna Maikkula,City Clerk, Brooklyn Park Matt Fulton,City Manager,New Brighton Kay McAloney, Personnel Director,Anoka Allen Greenfield,Councilmember,Prior Lake Mary Helen Mische, Intergovernmental Relations Tom Hansen, Deputy Manager Administrative Assistant, St. Paul Enterprises, Burnsville Judd Mowry,Councilmember,Tonka Bay Duane Hebert,City Administrator, Renville Susan Olesen,Clerk,Burnsville Pat Heldt,Councilmember,Alexandria Desyl Peterson,City Attorney, Minnetonka Jon Hohenstein,Assistant to Administrator,Eagan Isabel Rapaich,Councilmember, Duluth Bill Huepenbecker, Intergovernmental Relations Dan Scott,City Manager,North St. Paul Director, St. Paul Ceil Smith,Assistant to City Manager, Edina Marvin Johnson,Mayor, Independence Glenda Spiotta,City Administrator,Carver Ronald Johnson,City Administrator,Zumbrota Joyce Swadner, Elections Office, Minneapolis Steven C.Jones,City Administrator, Mora Blair Tremere,Assistant City Manager, Prior Lake Andrea Hart Kajer, Intergovernmental Relations Joyce Twistol, Personnel Director/City Clerk, Blaine Director,Minneapolis(alternate) Kurt Ulrich,City Administrator,Champlin Randy A. Kolb,Councilmember, Blaine Susan Walsh,Administrative Assistant, Rosemount Edward R. Larson,City Manager,Morris Rena Weber,Clerk/Coordinator,Cold Spring Larry Lee,Community Development Director, Liz Witt,Administrative Assistant,Eagan Bloomington Krista Witty,MVCOG Director, Mankato Greg Lerud,City Manager,Milaca Wally Wysopal,Assistant to Manager/Personnel Don Levens,City Administrator,Cokato Officer, St. Louis Park James L. Mladek,Mayor, Montgomery Ron Moorse,City Administrator,Orono E. Craig Morris,Mayor, Lakeland vi League of Minnesota Cities League of Minnesota Cities Policy Development Process The League's policy development process has taken place over the past five months. The process began with a member survey of priority issues facing city officials. The process will not end with the policy adoption conference. The committees will schedule additional meetings during the upcoming legislative session to discuss additional issues, develop alternative solutions and to discuss strategies to implement the League's policies. Listed below is a brief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. • April/May The League solicits members for ideas and problems. A survey at the Annual Conference allows members to formally suggest topics. June The League President accepts applications for committees and appoints policy committee members. The policy committees are: Improving Fiscal Futures Committee Improving Local Economies Improving Service Delivery In addition, the Improving Community Life Committee meets on a regular basis to discuss issues affecting "livable communities" and to develop the Improving Community Life policy guideline. July Committees meet to discuss issues raised in member survey. Commitees can also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. August Committees and task forces meet to discuss issues and problems, accept through testimony and develop policy statements. September October Legislative Committee meets to finalize policies. The Legislative Committee is comprised of the League's Board of Directors and the chairs/vice chairs of the four above-mentioned committees. November Policy Adoption Conference. Members have the opportunity to discuss the draft policies, propose changes, and suggest additional policies for membership consideration. December The Board adopts the Legislative Action Plan, based on input from the PolicyAdoption P gP P Conference. January Legislative Session. During the session, the policy committees and task forces through will continue to meet on issues and strategies. Members can assist the League's May legislative efforts by volunteering to contact legislators on a variety of issues of interest to our cities. 1998 City Policies vii Statement of Intent There are many problems which limit the effectiveness of city government to improve community life, improve the fiscal future and service delivery of city government, and to improve the local_ economy. What follows are,statements of the problems facing cities and the solutions proposed to help resolve these problems. These statements of problems and proposed solutions form the policy of the League of Minnesota Cities. Additional and alternative solutions to these problems may be proposed after the Policy Adoption Conference and the members of the League authorize its Board of Directors to consider and support additional or alternative solutions, if necessary, to resolve the problems identified in this policy statement. viii League of Minnesota Cities Part I 1998 Policy Guidelines IMPROVING COMMUNITY LIFE CL-1. Livable Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance, not diminish, the ability of citizens, businesses, and local governments to work together in partnership to make every community "livable." PROBLEM: Cities in Minnesota are at various stages in meeting the goal of being "livable communities." SOLUTION: The definition of a "livable community" below will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabling all Minnesota cities to become livable communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable communities. A LIVABLE COMMUNITY IS: WHERE PEOPLE OF ALL AGES • share a core of common values including valuing diversity, respect for each other, and good citizenship • feel: * safe * a sense of belonging * welcome • engage in life-long learning activities that: * prepare them for responsible citizenship * enhance the enjoyment of life * prepare them for changing job markets • participate in the decision-making process of community leaders • celebrate community • want to make their home 1998 City Policies 1 • have access to: * good paying jobs * adequate and affordable housing * choice of efficient transportation systems including transit, pedestrians, and bicycles * gathering places * desired information * choice of cultural and recreational activities * affordable goods and services, including health care • are involved in the nurturing of youth • care about their homes, community, and the environment • get to knoweach other • have the benefit,of strong family support and nurturing adults • WHERE LONG . GOVERNMENT • is responsive to the needs of its citizens • is actively supported by enthusiastic volunteers • is open and user friendly • encourages and implements cooperation and collaboration • provides and maintains an adequate physical infrastructure and promotes social infrastructure to meet local needs • educates citizens of all ages on local, regional, and state issues and government processes • informs and communicates with citizens to foster participation in public policy decision-making • participates in youth development 2 League of Minnesota Cities Part II 1998 City Policies IMPROVING FISCAL FUTURES 1 FF-1. State-Local Fiscal Relations 2 Issue: Minnesota's state and local government finance system is complex and intertwined. 3 Cities rely on their partnership with the state to provide local services. On the other hand, the 4 needs and desires of Minnesota's communities are many and wide-ranging. While the state's 5 revenue-sharing system has been regarded as innovative and helpful, there exists a growing 6 need for local elected officials, those closest to the electorate, to be responsive to the service 7 needs of the local citizenry. To that end, cities need discretion and flexibility in determining 8 local revenues. 9 The 1997 legislature made changes to Minnesota's property tax system that will impact the 10 ability of local governments to fund necessary services. The reimposition of levy limits, 11 significant class rate compression, and changes in state funding of schools all may have 12 unintended consequences. 13 Response: As the legislature considers additional property tax changes in 1998, it 14 should: 15 • carefully analyze the combined impacts of the 1997 tax bill and changing economic 16 circumstances on the taxpayer and on local governments so that policymakers can 17 better understand where the system may need further changes; 18 • repeal levy limits, which are inefficient, ineffective, interfere with local accountability 19 and ignore local circumstances; 20 • diversify available city revenue sources by generally authorizing local taxes that 21 reduce reliance on the property tax; and 1998 City Policies 3 1 • reduce the property tax burden for all classes of property by increasing the state share 2 of school funding. Any increase in the state share of school funding must guarantee a 3 permanent reduction in the local property tax burden. The League supports paying, 4 for the increased state costs through income and sales taxes. 5 The legislature should not: 6 • replace all or part of LGA or HACA with state-mandated categorical aid programs, 7 or local option taxing authority; 8 • switch from the classification system to a market value based system, which would 9 cause tremendous shifts of tax burden between classes of property. The League also 10 opposes applying all future levy increases to market value because this would further 11 complicate the property tax system; 12 s interfere in local decision making regarding service delivery; 13 • impose a state-levied property tax; and 14 •; cut LGA or HACA to finance an increased state role in school finance. 15 FF-2. State Shared Revenues 16 Issue: State revenue sharing programs address at least three problems with a stand-alone 17 local government finance system. First, the property tax base available to communities can 18 vary dramatically. These programs use state resources to equalize the ability of communities 19 to provide essential services without undue property tax burdens for local residents. 20 Second, nonresidents can take advantage of local services or create additional demands for 21 services without contributing to the taxes that support these services. LGA and HACA help 22 address the free rider problem where nonpaying individuals consume services without 4 League of Minnesota Cities 1 contributing to the local tax base. 2 Third, allowing local units of government in Minnesota to only levy the property tax has 3 created an over-reliance on the property tax. LGA and HACA can reduce the overall reliance 4 of local governments on the property tax. 5 Response: LGA and HACA, or similar replacement revenues, must be continued and 6 additional state resources greater than the rate of inflation must be allocated to prevent 7 rapid future property tax increases. In addition, the HACA household growth factor for 8 cities should be reinstated. 9 FF-3. Taxation of Municipal Bond Interest 10 Issue: The state law that grants a tax exemption for municipal bond interest is being 11 reviewed and could be repealed. A repeal of this exemption will raise borrowing costs for 12 cities. 13 Response: The state should maintain the tax exemption for municipal bond interest 14 income. 15 FF-4. City Fiscal Year 16 Issue: The fiscal years for the state and cities are offset by six months. The state fiscal 17 year begins on July 1 while the city fiscal year begins on January 1. Lawmakers have 18 proposed changing the city fiscal year to coincide with the state. Such a change, while 19 providing questionable benefits for cities, would not correspond with the current property tax 20 cycle, impair historical comparisons of data, force cities to retool accounting systems, will 1998 City Policies 5 1 adversely impact city creditratings, and could result in state funding gaps. 2 Response: The state should maintain current law and not change the city fiscal year to 3 coincide with the state fiscal year. 4 FF-5. Sales Tax on Local Government Purchases 5 Issue: In 1992 when the state was experiencing a budget shortfall, the legislature repealed 6 the sales tax exemption for local government purchases. This action currently costs local 7 governments an estimated $77.5 million annually. Because no additional state aids were added 8 to offset the additional cost, this repeal has effectively increased local property taxes to finance 9 state operations. 10 Response: The state should reinstate the sales tax exemption for all local government 11 purchases. The exemption must not be coupled with cuts in LGA or HACA. 12 FF-6. Delinquent Property Tax Penalties and Interest 13 Issue: Although city finances are affected by property tax delinquencies, cities do not 14 receive any associated penalties and interest on these delinquencies. Penalties and interest are 15 split evenly between counties and schools. 16 Response: Cities and counties should receive a pro-rata distribution of 50 percent of 17 the penalties and interest collected on delinquent property taxes with the remaining 50 18 percent to be distributed to schools. 6 ' League of Minnesota Cities 1 FF-7. Payments for Services to Tax-Exempt Property 2 Issue: Taxable property in many cities is being acquired by nonprofit and government 3 entities. Converting the property to tax-exempt status can lead to a serious tax base erosion 4 without any corresponding reduction in the service needs created by the property. 5 Response: Cities should be allowed to collect payments to cover costs of service in-lieu 6 of property taxes or special assessments from statutorily exempt property owners. 7 FF-8. Truth-in-Taxation 8 Issue: The legislature created the truth in taxation process in 1993 as a replacement for 9 state-mandated levy limits. The 1997 legislature re-enacted levy limits for many cities, yet the 10 truth in taxation requirements remain. The 1997 legislature also changed the parcel-specific 11 notice of proposed property taxes to separate the effects of local spending decisions on 12 proposed taxes from the effects of factors beyond local control such as changes in valuation or 13 legislative changes to the class rates or state aids. 14 Response: Changes made in 1997 to the truth in taxation notice will hopefully clarify 15 the roles and responsibilities of the state and local governments. But modifications may _ 16 be necessary if the new form proves to be too confusing to taxpayers. In addition, cities 17 need more flexibility in the truth in taxation process. Cities should be able to schedule 18 their initial hearings that may conflict with others' hearings, if no other dates are 19 available. Cities should have the authority to increase the final levy from the preliminary 20 levy. 1998 City Policies 7 1 FF-9. State Deductions from LGA 2 Issue: State administrative costs are deducted from the LGA appropriation. This reduces the 3 property tax relief provided by LGA and creates hidden appropriations for state agencies. 4 Response: All appropriations from LGA resources that fund state operations should 5 be repealed. 6 FF-10. Reporting Requirements 7 Issue: Budget and financial reporting requirements imposed on cities by the state often result 8 in duplication and additional costs. 9 Response: Requirements for reporting and advertising financial and budget 10 information should be carefully weighed to balance the validity of the state's need for 11 additional information with the costs and burdens of compiling and submitting this 12 information. In addition,all state agencies should be aware of the information already 13 required by others to avoid duplication of reporting requirements. 14 FF-11. Federal Budget Cutbacks 15 Issue: Congressional actions to balance the federal budget will reduce federal assistance to 16 the state and to local governments. 17 Response: The state should not reduce aids or increase fees to local governments as a 18 means for dealing with cutbacks in federal revenues. The state should take responsibility 19 for reductions in federal revenues rather than placing the burden on cities and their 20 property taxpayers. 8 League of Minnesota Cities 1 FF-12. Local Performance Aid 2 Issue: When the 1996 legislature created the local performance aid program,the legislation 3 was vague and the program was partially funded by cuts in HACA. In the future, the 4 requirements for applying for the aid could become an onerous mandate on cities and undermine 5 local decision-making. 6 Response: The League strongly supports efforts by cities to improve the efficiency and 7 effectiveness of their operations, including exercises such as performance measurement 8. systems. However,these efforts should be local initiatives rather than state mandated 9 actions. Therefore,the League opposes LPA. If local performance aid is to be continued: 10 • The law must be clarified and the qualification requirements must be attainable by all 11 cities regardless of city size or staffing levels. 12 • All additional funding must come from new revenue sources rather than shifts of aid 13 from other programs such as LGA and HACA. 14 • The program must not become an onerous mandate requiring additional city resources. 15 • Any information on individual cities that is collected from the program must not be 16 used to simplistically compare cities. 17 FF-13. Price of Government 18 Issue: The price of government legislation enacted in 1994 was intended to measure the 19 overall effect of state and local taxation over a long period of time. The targets measure 20 government revenues as a percent of personal income. Unfortunately, the targets have been 21 misinterpreted and used unfairly to criticize city tax and budget decisions. 1998 City Policies 9 1 Response: The price of government statutes as they apply to local governments should 2 be repealed. If the price of government law is to continue to be applied to local 3 governments, price of government calculations should be: 4 • based on the sum of levy and state aid, not just levy; and 5 • based on long-term trends, not single year events. 6 FF-14. Development Fees 7 Issue: New development and the resulting growth creates an increased demand for 8 public infrastructure and other public facilities. Severe constraints on local fiscal resources and 9 dramatic forecasts for population growth have prompted cities to critically reconsider ways in 10 which we pay for the inevitable costs associated with new development. Traditional financing 11 methods tend to subsidize new development at the expense of the existing community, 12 discourage sound land use planning, place inefficient pressures on public facilities, and allow 13 underutilization of existing infrastructure. Consequently, local communities are exploring 14 methods to assure that new development pays its fair share of the true costs of growth. Given the 15 existing authorization to impose fees on new development for water, sanitary and storm sewer, 16 and park purposes, it seems reasonable to extend the concept to additional public infrastructure 17 and facilities improvement also necessitated by new development. 18 Response: The legislature should authorize cities to impose development fees so that 19 new development pays its fair share of the off-site, as well as the on-site, costs of public 20 infrastructure and other public facilities needed to adequately serve new development. 10 League of Minnesota Cities 1 FF-15. Residential Nonhomestead Property Tax Relief 2 Issue: Residential nonhomestead properties (one to three units) are in need of property tax 3 relief. This is particularly true of duplexes and triplexes, which did not enjoy the same amount 4 of property tax relief in the 1997 tax bill as did single unit rental property; therefore,these types 5 of property should be taxed alike. Eliminating the distinction between single unit rental, 6 duplexes, and triplexes will simplify the property tax system by eliminating a class of property. 7 However, granting rental property all the tax advantages of homesteaded property may 8 decrease homeownership and could have a destabilizing impact on Minnesota cities. Homestead 9 property should continue to enjoy preferential tax treatment relative to other classes of property. 10 Under no circumstances should the class rate applied to residential nonhomestead property be 11 less than the class rate that is applied to second-tier homestead property. 12 Response: The League of Minnesota Cities supports maintaining the property tax 13 distinction between homestead and rental property. The League also supports combining 14 all one to three unit nonhomestead residential property into a single class of property with 15 a single class rate. This single class rate should be reduced to, but not below, the class rate 16 currently applied to second-tier homestead and rental property. 17 FF-16. Electric Utility Taxation 18 Issue: Part of the discussion regarding possible deregulation of the electric power industry has 19 centered on electric utility taxation. Proponents of deregulation assert that if effective free market 20 competition is to replace governmental regulation, state tax policy must be changed to "level the 21 playing field" or ensure competitive parity. The main focus of the Investor Owned Utilities (IOUs) 22 so far has been removal of the attached machinery or personal property tax. Utilities subject to the 1998 City Policies 11 1 tax argue that it places them at a competitive disadvantage to non-Minnesota companies, Rural 2 Electric Cooperatives (Co-ops), and Municipals. However, accurate comparisons of tax burden are 3 difficult, as other states use completely different taxing systems. Additi5nally, Co-ops do pay the 4 tax on some of their property and Municipals make subst.inial payments in lieu of taxes. 5 Utility personal property can b,a significant portion of the local tax base in all cities. Most 6 obviously affected are cities that have power plants;however, transmissin„ ^^ipr:i` me personal property taxes paid by the IOUs and exist in nearly 8 every city. Replacing the revenue that would be lost to cities, counties, school districts, and other 9 local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and funding sources 10 of such a replacement revenue would be difficult to develop and administer, and could be subject to 11 reductions or elimination over time. Furthermore, replacement revenues or aids may not fully 12 address the problems created by a large tax base reduction. 13 Response: Cities oppose proposals for exempting the IOUs from the personal property tax. 14 Under no circumstances should local units of government and their taxpayers be required to 15 shoulder the burdens of tax relief for IOUs. Any effort to remove the personal property tax 16 must make cities and other local taxing jurisdictions whole in all respects. 17 IMPROVING LOCAL ECONOMIES 18 LE-1. Tax Increment Financing 19 Issue: The State of Minnesota has effectively delegated the responsibility for economic 20 development and redevelopment to cities. Unfortunately, neighboring states have given their 21 cities more development tools and, therefore, cities in these states have a competitive advantage 12 League of Minnesota Cities 1 over Minnesota cities. In Minnesota, tax increment financing is the most viable tool available to 2 all cities in their economic development and redevelopment efforts. The State, whether based on a 3 lack of information or misinformation, has been critical of cities' use of the tool and has 4 implemented a series of restrictions over the past several years rather than partnering with cities 5 and encouraging their endeavors to improve and enhance the economic well-being of Minnesota 6 and the growth and redevelopment of its cities. Cities, required to assume the financial risks 7 associated with development decisions, have used tax increment financing responsibly and 8 examples of these positive uses abound. A legislative task force was created by the 1997 9 legislature and directed to recodify the tax increment statutes for the purpose of simplification 10 only, with no policy implications. 11 Response: To effectively compete with other states, Minnesota must provide its cities 12 greater flexibility in the use of tax increment financing and other economic development 13 programs. In light of substantial changes to the tax increment statutes over the past several 14 years, the legislature should not make major policy changes in 1998. The State should 15 partner with cities in economic development and redevelopment activities and encourage 16 cities' use of tax increment in achieving the laudable goals of long-term tax base stabilization 17 and growth, job creation, development of low-to-moderate income housing, remediation of 18 pollution, elimination of blight, recycling and redevelopment of the infrastructure, and 19 redevelopment of its communities. Counties and school districts are appropriately involved 20 in cities' development decisions through current "review and comment" requirements. The 21 legislature should reject any recommendations from the TIF recodification task force which 22 have policy implications. If 1998 becomes a year for major changes in TIF policy, the 23 legislature should: 1998 City Policies 13 1 • remove existing restrictions to property included in a deferred assessment program within 2 the last five years (e.g., green acres); 3 • authorize any tax increment districts approved after April 1, 1990 to pool increments in 4 the same manner as districts certified prior to April 1, 1990; 5 • in light of levy limits, eliminate the LGA/HACA penalty currently imposed on districts or 6 allow an exception from levy limits. If the penalty is not eliminated, the restrictions on 7 the source of payment should be removed; 8 • expand the use of tax increment financing to assist in the development of technological 9 infrastructure, job training, the restoration of historic structures and for non-retail 10 commercial projects (e.g., software companies, banks, and insurance companies); 11 • exempt redevelopment districts from the "five year rule;" and 12 • modify the housing district income qualification level requirements to allow the levels to 13 vary according to those specific to individual communities. 14 In any event, consistent with the legislative TIF task force's recodification, the 1998 legislature 15 should make technical changes, including, but not limited to: 16 • requiring the Department of Revenue's definition of tax increment to be consistent with the 17 new statutory definition of tax increment; 18 • authorizing the use of federal grants and other funds for local contributions; 19 • removing the LGA/HACA penalty imposed on housing districts established between the 20 penalty years of 1990 and 1993; 21 • requiring the Office of the State Auditor to simplify their TIF reporting forms in 22 consultation with those required to complete the forms; 23 • authorizing TIF financial information to be published in a more simplified format so that it 14 League of Minnesota Cities 1 provides the average taxpayer with useful information; and 2 • providing cities with adequate administration financing. 3 LE-2. Property Tax Reform, Levy Limits, and TIF 4 Issue: Future proposals to reform the property tax system from the investor-owned utilities, 5 commercial and industrial groups, or others could have significant implications for tax increment 6 financing districts. For example, if property class rates are further compressed, existing tax 7 increment financing districts could experience additional revenue shortfalls which, in turn, could 8 jeopardize the repayment of outstanding debt or other obligations. Given the long-term nature of 9 property tax reform, cities could not have anticipated the impact of the 1997 class rate changes nor 10 can cities project the impact of future changes. The $2 million provided by the 1997 legislature 11 for grants where the class rate changes cause TIF district deficits, while critically needed, is likely 12 to be insufficient to cover every deficit, does not provide timely reimbursements, and is 13 administratively confusing. Additionally, several cities have pledged only the city property tax 14 portion to a project. Under levy limits imposed by the 1997 legislature, these cities will be unable 15 to meet these obligations. 16 Response: Any future proposals to reform the property tax system must provide for state 17 resources in an amount sufficient to cover any and all TIF district deficits. Additionally, if 18 the $2 million is insufficient to cover the deficits caused by the 1997 class rate changes, the 19 legislature should provide additional state resources so that TIF obligations can be met and 20 third party bondholders are protected. The legislature should also bring clarification to the 21 administration of the grant process and should require timely reimbursement. The 22 legislature should repeal levy limits. The legislature should provide resources so these 1998 City Policies 15 1 projects are held harmless from the ramifications of property tax reform. 2 LE-3. Economic Development Programs 3 Issue: The Minnesota Investment Fund is not adequately funded. The State does not 4 authorize an adequate slate of tools for local governments to assist job creation, redevelop blight 5 and decay, and provide adequate housing choices. Consequently, cities are not well equipped to 6 compete nationally and internationally for business development. 7 Response: 8 • More state resources should continue to be contributed to the Minnesota Investment 9 Fund. 10 • In the event that the LGA/HACA penalty is not eliminated, a portion of the revenues 11 should be contributed to the Minnesota Investment Fund. These funds would then be 12 available for cities to retain businesses in the state and to attract business looking to 13 relocate from other states. 14 • The state should establish a new grant program that would provide funds to cities to 15 establish a Revolving Loan Fund targeted to gap financing for projects creating jobs. The 16 funds would be awarded to cities through a competitive grant program in which the 17 award is based on community need and local development capacity. The approved 18 applications would be funded strictly on the aforementioned criteria as well as the city's 19 development program and development priorities. The State would not be in the business 20 of reviewing projects with respect to specific companies and specific loans. These grants 21 would be in an amount up to $250,000 and would facilitate four to five initial local loan 22 projects. Local governments should be given the flexibility to utilize these funds 16 League of Minnesota Cities 1 throughout the city without any geographical restrictions. The funds to the communities 2 would be used to develop subordinated mortgages that are integrated with the primary 3 financing of a particular project. The loan could be utilized for retention as well as new 4 jobs. The respective community would be required to "recapture" the funds and also to 5 develop the appropriate collateral to protect the integrity of the Revolving Loan Fund. In 6 the event that the LGA/HACA penalty is not eliminated, a portion of the revenues should 7 also be contributed to the Revolving Loan Fund. 8 • Congress should remove the caps that have been placed on Industrial Development Bonds 9 and acknowledge that the extensive eligibility requirements now adequately limit their 10 use. 11 LE- 4. Redevelopment of Developed Communities 12 Issue: Developed communities across the State of Minnesota are faced with the unique 13 circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and downtowns and 14 a lack of land for development. Redevelopment activities usually require large, up-front funds to 15 address multi-phase projects of extensive duration where site assemblage, demolition,relocation, or 16 pollution clean-up must occur before private-sector interest can be generated. The lack of a coherent 17 statewide policy and the State's unwillingness thus far to provide financial support has and will 18 continue to contribute to the increasing problem of urban sprawl. 19 Response: In recognition of the unique needs of redevelopment projects,the State should 20 make a commitment to reinvest in its developed communities and should undertake a 21 comprehensive approach which provides financial assistance to address their redevelopment 1998 City Policies i7 1 needs. 2 LE-5. Property Tax Abatement Authority 3 Issue: In an effort to increase the number of development tools available, the 1997 legislature 4 authorized local units of government to grant property tax abatements. While generally supportive 5 of additional development tools, cities did not promote this legislation. Abatement authority was 6 never intended to replace existing tax increment financing authority. Abatement is not an adequate 7 replacement for TIF,particularly in redevelopment projects which typically have higher costs. In 8 addition, abatements were placed within the parameters of levy limits, thus, for the next two years, 9 the "increase"in taxes cannot be accessed to facilitate projects: 10 Response: TIF is still the primary viable development tool available. Abatement authority 11 should be available but it should not be offered as a rationale to eliminate TIF. If abatement 12 authority is to be at all effective,tax abatement projects need to be considered "outside" of levy 13 limits. 14 LE-6. Brownfields 15 Issue: Brownfields are lands that are not suitable for development due to the presence of 16 chemical or other contaminants. Brownfields are a major cause of blight within communities 17 across the state through loss of local tax base, jobs, housing quality, public safety and community 18 confidence. Revitalizing this land is costly and requires the cooperation of city, county, school, 19 regional, state and federal governments and the assistance of local economic development 20 organizations and citizens. As we move into an era where the mass creation of jobs is a necessity 18 League of Minnesota Cities 1 and where increased tax base is a requirement for local governments to adequately face growing 2 financial pressures, efforts to revitalize brownfields must not only continue but be accelerated in 3 the upcoming years. The 1997 legislature re-authorized $7 million for the Department of Trade 4 and Economic Development's (DTED) contaminated site clean-up fund and this amount was added 5 to the Department's base. Additionally, $6.2 million will now be appropriated annually from the 6 Petrofund to DTED to be used to clean petroleum-related contamination without the requirement 7 of an identifiable tank source. 8 Response: A comprehensive set of economic development programs must be maintained 9 for cities and other development agencies. The legislature should: 10 • increase funding for the Department of Trade and Economic Development's contaminated 11 site clean-up fund; 12 • act to strengthen enforcement and collection of revenues for the state contamination tax; 13 • continue support for and funding of local and regional programs to assist in the efforts to 14 remediate brownfields; 15 • establish a fully-funded program to allow cities and other development authorities to gain 16 control of and reclaim and revitalize brownfields; 17 • protect existing tax increment financing provisions that provide for the remediation of 18 brownfields and modify restrictions to allow the pooling of district revenues to assist in 19 the financing of remediation of brownfields; 20 • establish an indemnification fund to provide financial security for institutions and 21 individuals as they invest in efforts to recycle brownfields in order to leverage private 22 investment in cities' efforts to increase their tax base and create jobs; and 23 • continue the petrofund as a financing mechanism for cleaning contaminated sites. 1998 City Policies 19 . f 1 LE-7. Growth Management and Annexation 2 Issue: Unplanned and uncontrolled urban growth has a negative environmental, fiscal, and 3 governmental impact for cities, counties, and state governments because it increases the costs of 4 providing government services and results in the loss of natural resource areas and prime 5 agricultural land. 6 Response: The League believes that the existing framework for guiding growth and 7 development primarily through local plans and controls adopted by local governments should 8 form the basis of a statewide planning policy and that the state should not adopt a mandatory 9 comprehensive statewide planning process. Rather, the state should: 10 • provide additional financial and technical assistance to local governments for cooperative 11 planning and growth management issues, particularly where new comprehensive plans 12 have been mandated by the legislature; 13 • clearly establish the public purposes served by existing statewide controls such as 14 shoreland zoning and wetlands conservation; clarify, simplify, and streamline these 15 controls; eliminate duplication in their administration; and fully defend and hold 16 harmless any local government sued for a "taking" as a result of executing state land use 17 policies; 18 • give cities broader authority to extend their zoning, subdivision, and other land use 19 controls up to two miles outside the city's boundaries regardless of the existence of county 20 or township controls, in order to ensure conformance with city facilities and services; 21 • clearly define and differentiate between urban and rural development and restrict urban 22 growth outside city boundaries; 23 • require the Metropolitan Council to seek cooperation from the State of Wisconsin and 20 League of Minnesota Cities 1 counties (both Minnesota and Wisconsin) surrounding the metropolitan area to ensure 2 responsible and controlled development, study expansion of Metropolitan Council 3 authority in surrounding counties, and examine the positive and negative impacts of 4 mandatory regional or local land use controls and state-imposed development standards; 5 and 6 • facilitate the annexation of urban land to cities by amending state statutes regulating 7 annexation to make it easier for cities to annex developed or developing land within 8 unincorporated areas. 9 LE -8. State and/or County Licensed Residential Facilities (group homes) 10 Issue: The need for more residential-based care facilities resulting from state policies makes 11 it clear that the state must also ensure there is sufficient funding to assure that residents living in 12 group homes and licensed facilities have appropriate care and supervision. In view of the 13 responsibilities cities have to accommodate group homes and residential-based facilities, it is 14 important that state and county units of government make every effort to work with local officials 15 to make sure that adequate care and public safety concerns are addressed. Cities must also be 16 aware of special care needed by group home residents in case of public safety emergencies. Since 17 operators of certain residential facilities and services are not required to notify cities when they 18 intend to purchase housing for this purpose, cities have insufficient opportunity to address special 19 care and public safety needs that these residences may require. 20 Response: The legislature should require state and county agencies which operate or 21 license companies that operate residential-based facilities notify cities in a timely manner and 22 allow opportunity for cities to respond regarding the status of facility license requests and 1998 City Policies 21 1 renewals and the special care needed by residents in case of public safety emergencies. 2 Legislation should also include provisions requiring establishment of non-concentration 3 standards and direction to avoid clustering residential facilities. Licensing authorities must 4 also be responsible for removing any residents found incapable of living in such an 5 environment, particularly so they do not become a danger to themselves or others. 6 LE -9. Affordable Housing 7 Issue: Many families are unable to afford housing, and cities often lack resources at the local 8 level to provide housing for families or to develop housing alternatives for aging populations that 9 are within their means, particularly in smaller cities. The resulting circumstances limit economic 10 development and weaken the city's tax base. 11 In areas outside the five MSA regions, housing stock is aging and generally older than in more 12 urban locations. U.S. Census figures for 1990 indicate that more than 30 percent of housing units 13 in those areas were built prior to 1940, as compared with the high rate of new housing 14 construction within MSA locations, particularly in the twin cities metro area where 59 percent of 15 housing units built in the '80's are located. 16 Almost half the households in the state paying median rental housing costs exceeded the level 17 of affordability, according to the latest census. The ratio of housing affordability for low-income 18 renters is also increasing, raising more concern at the local level about the prospect that this 19 portion of the city population will be less likely to become homeowners. Older homeowners often 20 reside in housing that is affordable to first-time homebuyers, but often want to remain in their 21 homes as long as possible. By the time they do move, the property may have become run-down. 22 As a result, the home often becomes rental property with minimal improvements undertaken by 22 League of Minnesota Cities 1 the new owners. 2 Response: Federal, state, and local government must pursue policies which encourage 3 public-private partnerships to make it possible for cities, lending institutions, and developers 4 to initiate projects that meet local housing needs. The state should continue to provide grants 5 and loans from state revenue sources and streamline multiple MHFA-administered programs 6 to create a larger pool of state funding with more flexible criteria and guidelines to make it 7 easier for cities to apply for and make use of state housing assistance programs. The state 8 can also assist cities by establishing priorities for the use of those funds on the basis of state 9 housing policy for which cities and developers can apply based on their specific project 10 activities and locally determined objectives. 11 State housing policy should focus more resources on preservation of existing housing stock 12 as an effective way to promote and retain affordable housing. More also needs to be done to 13 reduce the cost to older homeowners of moving into assisted living or other housing designed 14 for the elderly, such as patio homes and to match up first-time homebuyers with affordable 15 properties and to make more "fix-up" programs available at the local level. 16 Among the state-sponsored initiatives and policies the League supports to encourage 17 production of affordable housing are: 18 • exempting construction of low-income housing from the state sales tax; 19 • a state low-income housing tax credit program; 20 • making it easier for cities with affordable housing programs to use tax increment 21 financing or tax-exempt revenue bonds (IRBs); and 22 • exempting public agencies, including HRAs, from the state deed and mortgage transfer 23 tax. 1998 City Policies 23 1 Cities must also have sufficient local authority and the flexibility to undertake housing 2 projects to meet their unique housing needs and must be able to leverage federal and state 3 resources to do so. Bringing together crime prevention specialists and those working to 4 develop new affordable housing units should also be encouraged to improve access to 5 affordable housing while supporting neighborhood safety and community livability. 6 LE-10. City Role in Telecommunications 7 Issue: Cities are facing increasingly complex challenges in responding to and planning their 8 own telecommunications futures. Cities need support at the state and federal level to assure that 9 community residents, businesses and non-profit organizations benefit from the convergence of 10 electronic information technology, telecommunications, communications, video, and cable 11 television service delivery. 12 Response: Congress and the legislature should support and encourage local government 13 planning and authority to provide public services and assure the benefits of broadband 14 telecommunications and wireless communications for their communities and residents by: 15 • making it easier for cities to own and operate telecommunications utilities, in part by 16 amending Minn. Stat. § 237.19 to authorize cities to construct and operate a telephone 17 exchange by a simple majority vote of its electorate, rather than the current 18 supermajority vote of 65%; 19 • recognizing the changing nature of the public-private partnership in which multiple 20 providers may compete to deliver telecommunications services; 21 • upholding,local authority to establish telecommunications policies and plans that respond 22 to community needs; 24 League of Minnesota Cities 1 • preserving city authority over matters directly affecting communities, including: 2 construction standards, permitting, installation methods, construction scheduling and 3 coordination, degradation of rights-of-ways, cost recovery, city use of telecommunications 4 resources for local public, education, government access and I-Nets; 5 • aiding cities to develop community-based information services so that residents with 6 limited income benefit from access to local and wide-area broadband networks and 7 information services; 8 • supporting local authority to require providers of open video systems to provide public, 9 educational and government access; 10 • making sure cities are allocated adequate spectrum on the 800 MHZ radio frequency for 11 public safety and emergency response. 12 Cities are encouraged to: 13 • develop a telecommunications plan identifying community priorities and values and 14 setting forth how the city intends to encourage competition in the local market while 15 ensuring taxpayer investment in public infrastructure is protected; 16 • determine how to implement new federal and state telecommunications laws and 17 regulations to create conditions to attract telecommunications to make them widely 18 available to city residents and businesses; 19 • examine current ordinances to take into account how to respond to multiple requests to 20 install wireline communications or to erect cellular, personal communications service 21 (PCS) and other wireless communications towers and antennas; 22 • treat all providers on a neutral and nondiscriminatory basis; 23 • seek broad access to advanced telecommunications services including bandwidth and 1998 City Policies 25 1 spectrum for public safety and emergency response; 2 • provide for institutional networks (I-Nets) through cable franchise agreements with local 3 operators to acquire a portion of a broadband network and other advance 4 telecommunications resources; 5 • consider installing city-owned and operated broadband networks or forming partnerships 6 to do so where the marketplace fails to provide the infrastructure and/or services; 7 • investigate and develop applications for those networks to deliver public services using 8 advanced telecommunications; 9 • take an inventory of unused, underused and/or abandoned conduit in the right-of-way, in 10 easements, or on city-owned property to make use of those resources in developing needed 11 local information infrastructure. 12 LE-11. Redesign of Electric Utility Regulation 13 Issue: Policymakers at the state and federal levels are considering ways in which to bring 14 competition into the electric utility industry. Without a cautious approach which incorporates 15 careful consideration of the implications of any deregulation scheme for all consumers of electric 16 energy, it is possible that only the largest consumers of electric energy would experience true cost 17 savings and other benefits often associated with competition while the small customers, individuals 18 and small businesses, may actually see rate increases. Additionally, city interests in tax base 19 stability and managing and obtaining compensation for the use of public rights of way by utility 20 companies are often overlooked in electric utility restructuring discussions. 21 Currently, the discussion regarding possible deregulation of the electric power industry in 22 Minnesota has centered on electric utility taxation. Proponents of deregulation assert that if 26 League of Minnesota Cities 1 effective free market competition is to replace governmental regulation, state tax policy must be 2 changed to ensure competitive parity among both intrastate and interstate producers. The main 3 focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or 4 personal property tax. Utilities subject to the tax argue that it places them at a competitive 5 disadvantage to non-Minnesota companies as well as Minnesota Rural Electric Cooperatives (Co- 6 ops) and Municipals. However, accurate comparisons of tax burden are difficult, as other states 7 use completely different taxing systems. Additionally, Co-ops do pay the tax on some of their 8 property and Municipals make substantial payments in lieu of taxes. 9 Utility personal property can be a significant portion of the local tax base in all cities. Most 10 obviously affected are cities that have power plants. However, generation and transmission 11 equipment accounts for over half of the personal property taxes paid by the IOUs, and exists in 12 nearly every city. Replacing the revenue that would be lost by cities, counties, school districts, 13 and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and 14 funding source of such a replacement revenue would be difficult to develop and administer, and 15 would be subject to reduction or elimination over time. 16 Response: A cautious, deliberative approach to restructuring the electric utility industry 17 is necessary to preserve the level of service to which Minnesota consumers of electric energy 18 have become accustomed. Additionally, it is crucial that cities have a place at the table in 19 deregulation discussions and that they retain their local authority to manage, and obtain 20 compensation for, the use of public rights of way, and that neither cities nor their taxpayers 21 are asked to shoulder the burdens of any tax relief provided IOUs. Finally, every effort 22 should be made to ensure that additional responsibilities and financial burdens are not 23 shifted to the local level. 1998 City Policies 27 1 LE-12. Adequate Funding for Transportation 2 Issue: Current funding for roads and for transit systems across all government levels in the 3 state is not adequate. 4 Response: Minnesota should value, and adequately fund, all transportation systems in the 5 state. The state needs to provide an objective basis to determine the complete needs of the 6 road and transit systems, their present condition, and their impact on the economic health of 7 the state. This should include acknowledgment that delaying current expenditures will 8 increase costs in the future. The League of Minnesota Cities supports an increase in the gas 9 tax and urges removing the existing restrictions on its use so that gas tax revenues can be 10 used for all transportation projects and programs, not just road construction and 11 maintenance. The legislature should institute additional revenue sources that can be 12 dedicated to all transportation programs. Cities should receive revenues necessary to meet 13 present and future transportation needs. If funding does not come from the state, cities 14 should have funding options available to them to raise the dollars necessary to adequately 15 fund roads and transit. 16 With the exception of funding for the state patrol, all nontransportation programs should 17 be funded from a source other than the highway user distribution fund. The revenues of the 18 highway user distribution fund are collected from transportation users and should be 19 dedicated to transportation-related services. 20 LE-13. State Aid for Urban Road Systems 21 Issue: Current rules governing municipal state aid expenditures are restricting the efficient use 28 League of Minnesota Cities 1 of these funds and do not adequately acknowledge the constraints of road systems in urban city 2 environments. 3 Response: Rules affecting the municipal state aid system need to be changed to 4 acknowledge the technical and practical restrictions on construction and reconstruction of 5 urban road systems. New municipal state aid design standards should not apply to 6 reconstruction of existing state aid streets that were originally constructed under different 7 standards. Future changes to state aid rules should ensure the involvement of elected officials 8 and engineering professionals in the decision-making process. 9 LE-14. State Aid Roads in Contiguous Cities Under 5,000 10 Issue: Cities under 5,000 population do not receive any nonproperty tax funds for their collector 11 and arterial streets. 12 Response: State statute should be modified to encourage cooperation and improved 13 transportation systems by allowing contiguous cities that jointly represent a combined 14 population of 5,000 or more to be eligible for Municipal State Aid (M.S.A.). Participating 15 cities would enter into a formal joint powers agreement and establish a joint budget that would 16 be governed by a board of elected officials. Cities that participated in this joint entity would 17 not be required to undertake any formal consolidation activities. 18 Cities under 5,000 population that were not eligible for M.S.A. through this cooperative 19 agreement practice should be able to use county municipal accounts and the five percent 20 account of the highway user distribution fund. 21 Uses of county municipal accounts should be statutorily modified so that counties can 22 dedicate these funds for local arterials and collector streets within cities under 5,000 1998 City Policies 29 1 population. In addition,the five percent set-aside account in the highway user distribution 2 fund should be used to meet this funding gap. 3 LE-15. Turnbacks of County and State Roads 4 Issue: As road funding becomes increasingly inadequate, more roads are being "turned back" to 5 cities from counties and the state. 6 Response: Turnbacks should not occur without direct funding or transfer of a funding 7 source. A process of negotiation and mediation should govern the timing, funding, and 8 condition of turned-back roads. City taxpayers should receive the same treatment as township 9 taxpayers. The requirement for a public hearing, standards about the conditions of turnbacks, 10 and temporary maintenance funding should also apply to county turnbacks to cities. At a 11 minimum,proposed roads to be turned back to a lower government level should be brought up 12 to the standards of the receiving government or should be compensated with a direct payment. 13 Direct funding should be provided for smaller cities that are not provided with turnback 14 financing through the municipal state aid system. 15 LE-16. Cooperation Between Counties and Cities Over County Roads Within 16 Cities 17 Issue: Some counties want increased control over county roads that lie within city boundaries. 18 The statutory mechanism for resolving disputes between counties and cities over the construction, 19 reconstruction, or expansions of state-aid highways that extend within city corporate limits is 20 inadequate. Under current law, only the county may request that a dispute resolution board 21 ("board") be established and the board's role is not to assist the parties in attempting to resolve their 30 League of Minnesota Cities 1 dispute. Instead,the board has the authority only"to review the propose change, and make a 2 recommendation to the Commissioner." It is the Commissioner of Transportation who ultimately 3 makes the final decision on whether to "approve the establishment, construction, reconstruction, or 4 improvement of a county state-aid highway recommended by the board." The statute does not 5 outline any formal due process that must be followed to ensure fairness to all parties. Additionally, 6 there is no mediation or non-binding arbitration prerequisite as exists in other areas of law dealing 7 with dispute resolutions. 8 Response: The Legislature should provide a mediation or non-binding arbitration 9 alternative to assist parties in reaching a resolution on their own without involving the 10 Commissioner. Additionally,to ensure that sound recommendations are made by dispute 11 resolution boards,formal due process and specific criteria should be established. For 12 situations where negotiations do not produce an agreeable resolution, cities should be 13 authorized to request that a board be established. 14 LE-17. Management of Rights-of-Way 15 Issue: Demand for all types of uses of rights-of-way, both surface and subsurface, is increasing 16 exponentially, forcing consideration by cities of how best to allocate this very limited resource. 17 Because public rights-of-way have been acquired at public expense through local property tax 18 sources or other local action, cities have traditionally had the fundamental responsibility and 19 attendant liability for facilitating the safety and convenience of all right-of-way users. Rights-of-way 20 management responsibilities are complex, numerous, and site specific, as are the particular interests 21 of cities in establishing a value for private use of public space in the local rights-of-way. These 22 factors underscore the fact that rational and expeditious decisions can only be made at the local level. 1998 City Policies 31 1 Cities support existing federal nondiscrimination requirements that local administration not 2 impose unreasonable delays or burdens on access, entry, or other reasonable use of rights-of-way. 3 Cities should be authorized, as provided in federal law,to require telecommunications providers to 4 meet local requirements for public, educational, and government access to their networks as well as 5 financial and technical support for such actions. 6 Local rights-of-way are a limited and valuable asset held in trust by municipalities for the public. 7 Unlike other businesses which pay for the use of public rights-of-way, telephone companies 8 currently pay property taxes only on a fraction of their facilities located in public rights-of-way and 9 nothing for the value of the right to use them. 10 Response: 11 • The responsibility for managing and protecting public rights-of-way must remain with 12 cities and other units of government entrusted with protecting the health, safety, and 13 convenience of the community. 14 • Construction and safety standards are of paramount importance to cities, and consistent 15 with respective industries' desire for uniformity, should be developed by the municipal 16 engineering community for adoption by cities to ensure effective rights-of-way 17 management. 18 • Cities and other governmental units responsible for the protection and management of 19 public rights-of-way should be authorized to require reasonable compensation which 20 reflects the policy and fiscal objectives of their community. 21 • The courts should remain the primary forum for resolution of allegations that communities 22 have exercised their authority in an unreasonable, arbitrary, or capricious manner. 32 League of Minnesota Cities 1 LE-18. Communications Infrastructure 2 Issue: Cities must retain authority to provide for development of effective local information 3 infrastructure including public, educational, and government(PEG) access channels and institutional 4 networks. Sufficient technical and financial support from telecommunications service providers is 5 necessary to assure that both traditional and advanced services and applications, including both 6 wired and wireless telephony,video, data and Internet services as well as PEG access are locally 7 available. 8 Response: The legislature should support local authority to develop, own, and operate 9 information infrastructure and services to require that voice,video, and data communications 10 networks provide channel spectrum and resources sufficient to meet local information and 11 communications needs, assure public safety and convenience, and provide local information 12 and community programming and services. 13 LE-19. Effective Telecommunications Competition 14 Issue: Effective telecommunications competition will not arrive simultaneously in all cities or _ 15 markets. In the transition to an effectively competitive marketplace,which will yield better services, 16 affordability and deployment of technology to meet community needs, consumers need protection 17 from possible market abuses. 18 Response: Federal, state, and local governments must coordinate efforts to protect 19 consumers and encourage emergence of effective competition to make it possible for 20 communities to participate in the global economy through a local information infrastructure 21 that provides benefits to residents,business, and industry. 1998 City Policies 33 1 LE-20. Local Zoning Regulation of Telecommunications Service Providers 2 Issue: Cities must have authority to govern the use of property by telecommunications service 3 providers through zoning regulations without unnecessary state and federal intervention. 4 Response: The Federal Communications Commission and the state legislature should 5 continue to uphold local government authority to adopt and enforce local zoning regulations of 6 telecommunications service providers as reaffirmed in the federal Telecommunications Act of 7 1996. 8 LE-21. ISTEA Reauthorization 9 Issue: Cities have an important stake in the reauthorization of the federal Intermodal Surface 10 Transportation Efficiency Act(ISTEA). Since its enactment in 1991, ISTEA has assured cities of a 11 key role in planning as well as benefits of funding for project enhancements and pollution 12 mitigation. ISTEA expires on September 30, at the end of this fiscal year. ISTEA has been 13 successfully implemented in Minnesota, with a strong focus on partnerships, local decision-making, 14 funding flexibility and emphasis on inter-modal transportation. 15 Response: Congress should reauthorize ISTEA this session to continue support for the new 16 era of transportation investments in which cities can work cooperatively with the Minnesota 17 Department of Transportation (MnDOT) to address local and regional transportation 18 interests. Putting in place locally developed criteria to evaluate programming of limited funds 19 has opened MnDOT programming to recognize regional priorities. Enhanced ISTEA 20 reauthorization will allow cities to continue to work within the current planning process to 21 address transportation needs. 22 The amount of ISTEA funding in the existing congressional and administration budget 34 League of Minnesota Cities 1 allocations does not meet growing needs. Trust fund revenues should be used solely for 2 transportation purposes, and the federal gas tax revenues should be transferred to the 3 Transportation Trust Fund (instead of being used for deficit reduction). 4 Regional planning is a strong component of the current ISTEA program. Congress should 5 support and encourage broadening the federal-state-local partnership and community 6 participation in transportation decision-making. 7 All program categories in the existing ISTEA program should be maintained, in particular 8 the Surface Transportation Program (STP),Transportation Improvement Program (TIP), 9 Enhancement and Safety,transit,Congestion/Mitigation Air Quality (CMAQ), and the 10 National Highway System (NHS) and Bridge Replacement programs. 11 Congress can aid local project implementation by reducing unnecessarily burdensome 12 regulations and procedures, particularly for small projects for elements that have little if any 13 negative effects on the environment. There is also a need to examine the relationship between 14 the metropolitan MPO boundary and U.S. Census boundaries of the Twin Cities Metropolitan 15 Statistical Area (MSA). The MPO in the metro area needs to recognize the broad regional 16 implications of transportation in the 7 counties within Minnesota and the two counties in • 17 Wisconsin that are within the MSA. 18 IMPROVING SERVICE DELIVERY 19 SD-l. Redesigning and Reinventing Government 20 Issue: Every level of government is reevaluating, reprioritizing, redesigning, and renewing its 21 organizational structure and programs in response to financial realities and citizens' needs and 1998 City Policies 35 • 1 problems. Reforms,however,must be more than simply change for the sake of change or a 2 reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and 3 reassignments of governmental entities and services should save money where feasible, deliver 4 improved services, serve essential needs and be equitably structured. Cities have and will continue 5 to pursue the use of cooperative agreements, the reevaluation of city programs and services, and 6 changes to organizational structures. 7 Response: The federal, state, and county governments should: 8 • ensure that in redesigning, reinventing or reassigning government services and programs 9 that the appropriate level of service to citizens is evaluated and citizen demands and 10 expectations are adequately addressed; 11 • promote local efforts through incentives rather than mandates; 12 • communicate and establish a process of negotiation before shifting responsibility for 13 delivering services from one level of government to another or seeking to reduce service 14 duplication; 15 • transfer authority for use of revenues dedicated to such programs or provide appropriate 16 and adequate alternatives; 17 • identify and repeal programs or discontinue services which are no longer necessary or 18 which can readily and fairly be provided by the private sector; and 19 • employ existing government entities in redesign efforts rather than create new agencies or 20 units: 21 The League supports cooperative studies of the following issues: 22 • whether the enforcement of human rights laws can best be accomplished by a single state 23 system which would allow local governments to discontinue local enforcement programs; 36 League of Minnesota Cities 1 • whether there should be greater use of statewide or consolidated business licensing, 2 including licensing of sign contractors,to eliminate the need for some businesses to obtain a 3 permit in each city or county; 4 • whether the existing use and structure of Regional Development Commissions can be . 5 improved; 6 • whether greater use can be made of block grants to distribute funds related to 7 transportation, sewage treatment, and public water facilities; 8 • whether human services and health programs can be improved by further consolidating 9 their administration at the state and county levels of government; and 10 • whether state and federal environmental and water agencies can be combined or 11 eliminated to avoid inconsistent standards and duplication of responsibilities. 12 SD-2. Unfunded Mandates 13 Issue: The cost of federal and state mandated programs substitute the judgment of Congress and 14 the President and the legislature and the Governor for local budget priorities. These mandates force 15 cities to reduce funding for other basic services or to increase taxes and service charges. The passage 16 by the legislature of reporting requirements for new state mandates and the passage by Congress of 17 legislation restraining new federal mandates should help address the problem, but other steps are still 18 necessary. 19 Response: 20 • Existing unfunded mandates should be reviewed and modified or repealed where possible. 21 • No additional statewide mandates should be enacted unless full funding for the mandate is 1998 City Policies 37 1 provided by the level of government imposing it or a permanent stable revenue source is 2 established. 3 • Cities should not be forced to comply with unfunded mandates. 4 • Cities should be given the greatest flexibility possible in implementing mandates to ensure 5 that their cost is minimized. 6 SD-3. Civil Liability of Local Governments 7 Issue: One of the barriers to the delivery of governmental services and programs is the exposure 8 of local governments and their officials to civil damage claims. The state has acted to protect itself 9 and its local governments by enacting exceptions and limitations to liability suits and authorizing 10 self-insurance and other mechanisms to deal with claims allowed by law. Additionally,the current 11 law which requires district court approval of settlements of claims against municipalities which 12 exceed $10,000 has become burdensome for cities. 13 Response: The League supports: 14 • eliminating joint and several liability, or severely restricting its application to situations 15 where private or public tortfeasors are substantially at fault for the damages incurred; 16 • extending the protection of the state and municipal tort claims act to quasi-governmental 17 entities when performing public services such as firefighting; 18 • existing constitutional safeguards for protecting public and private property interests 19 without any statutory expansion of property rights; and 20 • eliminating the district court approval of settlements requirement or, in the alternative, 21 increasing the threshold amount for district court approval of settlements to $100,000. 38 League of Minnesota Cities 1 SD-4. Environmental Protection 2 Issue: State and federal environmental programs are improperly designed to meet their 3 stated goals, and impose an undue burden on local governments because of a lack of federal or 4 state financial assistance. The refusal to finance these programs by the governments which pass 5 them has eliminated an essential restraining feature in program design and implementation. 6 Specific problems include: 7 • New programs or standards are continually adopted without regard to the existence, 8 attainability, or cost of existing programs and standards. 9 • Fragmented program adoption and implementation does not ensure prioritization of 10 environmental matters or the establishment of comprehensive environmental protection 11 strategies. 12 • "One size fits all" implementation programs force remedial efforts by local governments for 13 nonexistent environmental problems. 14 • Permit fees and other cost transfer elements of federal and state programs do not provide an 15 incentive for environmental agency efficiency, policy prioritization, or risk assessment. 16 Response: 17 • A comprehensive effort to consolidate, reorganize, and manage state and federal 18 environmental agencies and programs should be undertaken and a partial or full 19 moratorium on new programs or requirements should be considered. 20 • Permit fees should be limited to fifty percent of the agency's direct operating costs in 21 order to promote efficient agency operation and sufficient legislative oversight. 22 • Sufficient state and federal financial assistance should be provided to comply with state 1998 City Policies 39 1 and federal infrastructure requirements, particularly with regard to sewer and water 2 facilities. 3 SD-5. Personnel, Pensions, and Labor Relations 4 Issue: Many state laws increase the cost of providing city service to residents by requiring 5 city governments to provide certain levels of compensation or benefits to public employees, 6 specify certain working conditions, or limit city governments' ability to effectively manage their 7 personnel resources. For instance, existing state laws limit governments' ability to effectively 8 address incompetence or misconduct of city employees specifying certain procedures to be 9 followed or standards of conduct. 10 Response: The state government should refrain from passing laws which regulate the 11 public sector workplace and should repeal or modify problematic existing laws and 12 regulations to encourage full local accountability. 13 The League of Minnesota Cities proposes the following reforms: 14 Discipline and Discharge 15 • The state should modify veterans' preference and civil service laws which restrict the 16 ability of local governments to effectively discipline public employees. The legislature 17 should amend the law to: 18 • remove the right to multiple, duplicative disciplinary proceedings; 19 • limit any back-pay claims to a maximum of$100,000, and; 20 • limit the period in which to request a hearing to 14 days (from the current 60 days). 21 • The state should discontinue state and local civil service systems which are no longer 40 League of Minnesota Cities 1 needed to ensure fair and accountable hiring and firing practices. 2 Data Practices 3 • In light of security concerns, the state should amend the data practices act to reclassify all 4 employee address and telephone data as private data. 5 • The Information Policy Task Force created by the 1997 legislature should consider the 6 impact of potential changes to the data practices act, particularly the commercial use and 7 sale of government information, on local units of government and take these into account 8 in any recommendation for legislative action. 9 Compensation limits 10 • The state should repeal laws limiting local government employee compensation levels to 11 the governor's salary. If repeal is not possible, the limit should be amended to be based 12 upon the governor's total compensation level. 13 PELRA 14 • The state should modify the definition of public employee to limit the application of 15 PELRA to employees working more than an annual average of 20 hours per week other 16 than on a temporary or seasonal basis. 17 • The state should change public sector bargaining laws to restrain arbitration awards 18 which exceed other internal class comparisons or outside cost of living limitations. 19 • The State should modify the definition of public employee to exclude police and fire 20 cadets. 21 Pensions 22 • The state should revise public employee pension laws to facilitate consolidation of local 1998 City Policies 41 1 pension plans and the transition to more attractive and fiscally-sound pension programs 2 such as defined contribution plans. 3 • The state should study initiatives to reform and make uniform pension plans for local 4 government employees. However, the League opposes increasing public employer 5 contribution levels or any proposal to have the public employer contribution level exceed 6 the contribution level required from employees. 7 • The state should adjust the eligibility thresholds for public pensions to reflect inflation, 8 adopt a process for automatic future adjustments, and limit eligibility for defined benefit 9 plans to employees working an average of at least 20 hours per week. 10 • The League opposes special legislation related to pension benefit increases that are not 11 initiated by a previously adopted resolution of the city council of the affected city, even if 12 the legislation provides an option that requires subsequent local approval. 13 In addition to these state reforms, the League of Minnesota Cities supports the following 14 policies regarding federal employment law: 15 Overtime compensation 16 • Congress should amend the Fair Labor Standards Act to eliminate its applicability to the 17 public sector or at least recognize unique circumstances in the public sector such as 18 accounting for all hours worked by salaried employees and allowing regular employees to 19 serve as volunteers, paid on-call firefighters, referees,coaches, and other community 20 service-oriented positions. 21 Peace officer bill of rights 22 • Congress should oppose a federal peace officer bill of rights, which would make internal 42 League of Minnesota Cities 1 investigation and enforcement more difficult and diminish local accountability. 2 SD-6. Election Issues 3 Issue: Improvements in absentee voting, voter registration, and the election process 4 are needed. s 5 Response:The 1998 legislature should develop a bipartisan election reform proposal that 6 simplifies absentee voting, provides more cities direct access to the statewide voter registration 7 system, clarifies restrictions on locating campaign signs within 100 feet of polling places, 8 modifies the voter fraud statute related to voter residency, and allows cities more flexibility in 9 appointing and compensating election judges. 10 SD-7. Local Election Authority 11 Issue: Local authority to schedule city elections and establish terms of office for local elected 12 officials has been increasingly restricted by the legislature,thereby diminishing regard for the role 13 of local self-government, particularly when state policy pre-empts home rule authority governing 14 city elections. 15 Response:The legislature should oppose further limits on either the number or the length 16 of terms city elected officials may serve, particularly when those terms have been established 17 by the electorate in home rule charter cities. State policy on uniform elections should continue 18 to recognize and uphold local authority to schedule city elections in November of either even- 19 or odd-numbered years. 1998 City Policies 43 1 SD-8. City Costs for Enforcing State and Local Laws 2 Issue: Cities experience substantial costs enforcing state and local laws, particularly those related 3 to traffic, controlled substances, and incarceration of prisoners. The current method in our criminal 4 justice system of recovering costs for law enforcement and prosecution through fines is insufficient 5 to meet the costs incurred by local governments. 6 Response: The legislature should review this issue and adopt measures that provide for • 7 complete reimbursement of the costs incurred by local governments in enforcing state and 8 local laws. Solutions which should be considered include the following: 9 • increasing fine amounts; 10 • removing or modifying state surcharges which conflict with cost recovery principles; and 11 • requiring the defendant to pay the full costs of enforcement and prosecution as part of any 12 sentence. 13 SD-9. Access to Information Technology and Services 14 Issue: Congress and the state legislature should continue to provide a meaningful role for cities 15 in developing and supporting access to information technology and services. 16 Response: The legislature should: 17 • enhance opportunities for cities to collaborate with community organizations, schools, 18 libraries, and nonprofit organizations and telecommunications service providers to make 19 training and advanced services available to community residents; 20 • take steps to ensure that businesses have access to advanced broadband networks; 21 • provide grants and technical assistance to encourage cities to expand use of information 44 League of Minnesota Cities 1 technology to provide citizen access to government information and deliver services; 2 • monitor telecommunications service providers' compliance with requirements to make 3 public access to information available at a discount; 4 • encourage providers to make capacity for interactive forums available at the local level to 5 increase citizen participation in government; 6 • encourage expanded use of interactive teleconferencing, public access channels, and public 7 broadcast facilities to provide public access to government meetings; and 8 • support federal, state, and local authority to charge providers of cable and cable-like 9 services reasonable fees to support that capacity. 10 SD-10. Lawful Gambling Fund Expenditures 11 Issue: State law authorizes cities to collect up to 10 percent of the net profits from lawful 12 gambling operations conducted within their jurisdictions. These funds must be maintained in a 13 separate account and can be spent only for "lawful purposes." These purposes are defined in 14 statute more narrowly than the permissible public purpose expenditures for charitable 15 contributions to cities. The Gambling Control Board has the authority to demand that cities make 16 repayment to the fund for expenditures it deems out of compliance with the statutorily permitted 17 lawful purpose expenditures. 18 Response: Cities are in the best position to determine the use of funds that will bring the 19 most benefit to their citizens. The legislature should expand the permissible lawful gambling 20 fund expenditures to include any public purpose deemed appropriate by the city. 1998 City Policies 45 1 SD-11. Design-build 2 Issue: The standard bid procedure cities are required to use in selecting contractors for 3 municipal buildings can be quite costly. Private sector development uses a process known as 4 "design-build" in which various firms submit project proposals that include both a design and the 5 construction costs for that design. The selection is then based on the total package. By granting 6 specific statutory authority to usethe design-build alternative to the Metropolitan Sports Facilities 7 Commission and state agencies including the Department of Revenue, the legislature has 8 recognized the financial savings it can provide. In documented instances, cities have saved 9 taxpayers up to 10 percent of the total project cost by using the design-build alternative. The 10 design-build process also permits improved project management and oversight. However, absent 11 statutory authorization to use this alternative, cities are vulnerable to lawsuits from unsuccessful 12 bidders. In addition, the design-build process for playground equipment can encourage greater 13 creativity while still maintaining cost controls. Special legislation was enacted for the City of 14 Chanhassen in 1995 to experiment with using this process for purchasing playground equipment. 15 Response: The legislature should authorize an extension of the "design-build" procedure 16 to cities as a less expensive alternative to the standard bid procedure. 17 SD-12. Mobile Home Park Oversight 18 Issue: The State has preempted cities in the licensing of mobile home parks and has 19 limited the authority of cities to place new regulations on established mobile home parks. 20 However, cities are responsible for dealing with the various housing and public safety challenges 21 mobile home parks may create. 46 League of Minnesota Cities 1 Response: Since the State has already taken the lead, the legislature should provide 2 sufficient resources and direct the Department of Health to conduct a study on the condition 3 of mobile home parks throughout the State of Minnesota. Cities and mobile home park 4 owners and residents should be involved in the study. The results of the study should be used 5 as a basis for policy discussions regarding ways in which the State can provide for increased 6 and improved oversight of mobile home parks and establish a statewide support system for • 7 cities to rely on in dealing with the array of issues that arise in mobile home parks. 8 Outcomes of the study should include: 9 • "best practices" for the operation of mobile home parks; 10 • recommended state regulatory changes for the operation of mobile home parks; 11 • suggested ways cities can better address the issues presented by mobile home parks; and 12 • identification of mechanisms to provide assistance in financing mobile home park 13 upgrades. 14 SD-13. Proposed Plat Approval Authority 15 Issue: Current law generally grants cities the authority to approve proposed plats as part of 16 their police power responsibilities for regulating development. Certain counties want legislative 17 authorization to approve proposed plats which are contiguous with existing or proposed county 18 roads. 19 Response: Cities oppose extending county authority over plat approval. While counties 20 have a valid interest in proposed plat decisions, this does not warrant a duplication of 21 approval authority. An informal process of county review with the opportunity to offer 1998 City Policies 47 1 comments and suggestions for improvement is an appropriate cooperative mechanism which 2 is already in place and working well in many areas of the state. 3 SD-14. Providing Information to Citizens 4 Issue: To keep the public updated and informed, state law requires local units of government 5 to publish various notification documents in newspapers and often dictates which newspapers 6 receive cities' publication business. The number and variety of documents required to be 7 published and the costs of publication are burdensome. Technological advancements have 8 expanded the ways in which government can provide information to citizens. In many cases, 9 these new technologies are more efficient and cost effective. 10 Response: Cities should be authorized to take advantage of new technologies to increase 11 the dissemination of information to citizens and potentially lower the associated costs. 12 Specifically, the legislature should authorize local units of government to designate an 13 appropriate daily/weekly publication, elect alternative means of communication such as city 14 newsletters, cable television, and the internet, and expand the use of summaries where 15 information is technical or lengthy. Additionally, the legislature should eliminate outdated or 16 unnecessary publication requirements. 17 SD-15. Creating a Minnesota GIS Program 18 Issue: Cities need Geographic Information Systems (GIS). Although only forty-five cities have 19 parcel-based GIS, this improved method of local land record management is already paying 20 tremendous dividends to those with access to the technology, but it is costly and difficult to create, 48 League of Minnesota Cities 1 maintain, and upgrade. Cities face serious obstacles to modernizing land records when maps, survey 2 controls, and electronic records management do not exist at the county level. Without state 3 investment to help local government modernize land management records, development of GIS will 4 continue to fall behind, with costly results for residents and taxpayers in those locations where land 5 parcel data is not organized. A seamless land records database would encourage sustainable land-use 6 planning at both the state and local level. • 7 Response: The League endorses the recommendations put forth by the Governor's Council 8 on Geographic Information to establish and fund a Minnesota GIS Program to provide 9 technical support and funding for local government development of GIS. 10 SD-16. State Licensing of Massage Therapists 11 Issue: The state does not currently regulate massage therapy, an emerging but rapidly growing 12 profession. In order to control prostitution and to provide for health and sanitation standards, several 13 cities have entered the traditional state domain of health-care licensure by enacting ordinances that 14 require all massage therapists to obtain a local professional license. These ordinances allow local 15 law enforcement officers to differentiate between legitimate massage therapists, who have a city 16 license, and prostitution businesses fronting as massage therapy establishments. The lack of 17 statewide licensing of massage therapists has hampered law enforcement techniques and has caused 18 problems for cities attempting to regulate an entire health-care profession without any statewide 19 standards. Currently, twenty-five states license massage therapists on a statewide level. Statewide 20 licensing of massage therapists would provide a clear set of educational standards that massage 21 therapists must meet and would provide local law enforcement agencies with an easy tool to 22 distinguish between prostitution and legitimate massage therapy. Statewide professional licensing 1998 City Policies 49 1 would not disturb traditional powers over land use and business licensure. 2 Response:The League supports the statewide professional licensing of massage therapists 3 in order to aid Iocal law enforcement efforts at controlling prostitution and other criminal 4 activity. 50 League of Minnesota Cities I r ‘7 mC145 University Avenue West, St. Paul,MN 55103-2044 League of Minnesota Cities Phone: (612) 281-1200 • (800) 925-1122 Cities promoting excellence - Fax: (612) 281-1299 • TDD (612) 281-1290 October 24, 1997 TO: Mayors, Managers,and Clerks(Please distribute a copy of these materials to your councilmembers) FROM: James F. Miller A Executive Direct r RE: 1998 Policy Adoption Conference Enclosed is a copy of the 1998 City Policies as proposed by the League's policy committees and • Board of Directors. These policies address significant city issues including property tax reform, rights-of-way management,local government aid,annexation,tax increment financing, and transportation funding. The League membership will vote on these policies as part of the Policy Adoption Conference on Friday, November 21, 1997, at the Ramada Plaza, 12201 Ridgedale Drive,Minnetonka (see map on back). The 1998 legislative session will be an active year for cities. In fact,the legislature will spend considerable time and effort on many issues that will undoubtedly affect how you govern and manage your cities. To ensure that the League's policies and legislative activities represent your city's interests,please plan to attend the Policy Adoption Conference on November 21. The accompanying ballot should be filled out and returned to Mary Diedrich by Monday, November 17,regardless of whether you will be attending the conference. The results will be tabulated and shared with those present on November 21 to help facilitate discussion. In order for League staff to plan properly for the meeting, please register as early as possible. We look forward to seeing all of you on November 21st. - OVER- AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER CC . m Li co 3 m a. aJ QJ cG m a> >- o FA' Z7w • m' CU al 4 (1\ v,,..,.. C- c. _ • m m , G -46 _ _. _ y ....� i N• 7 113 Q Q C • CO i i � 0 M Q � 0c = c 0 O I a = y LZ r ri Don't miss... . The League of sMinnesota Citis1iS ,T PolicyAdoption Conferenceii v� � - Hear,learn,discuss,take home,and vote on important policies that will set the course for the cities'legislative efforts. Write it down now! Agenda Friday 8 a.m. November 21, 1997 Ramada Plaza Hotel 8:45 a.m. Welcome Minnetonka Bob Long, LMC President i 9 a.m. ROW Update James Miller,LMC Executive Director Although LMC was successful during the 1997 session in preserving the legal authority ofcities to manage their rights of way, equally important is negotiating with industry the technical standards that will ultimately be adopted by the Public Utilities Commission. Staff will update you on this important and evolving issue. 9:15 a.m. Development Impact Fees In an era of constrained financial resources, some Minnesota cities have sought to make development pay more of its own way through impact fees. A local official, legislator, and representative of the Twin Cities builder's community will offer their perspectives. 10 a.m. Electric Deregulation and How It Could Affect Property Taxes The investor-owned utilities are seeking a property tax reduction on certain property used in their operations. This could severely impact the tax base of cities, counties and schools. Legislators and affected cities will discuss this proposal. 10:30 a.m. Break 10:45 a.m. Electric Deregulation and What It May Mean For Your City Deregulation of the electric industry has already happened in some states. It is almost certain that both Congress and the State Legislature will be taking actions within the next few years that will affect all cities as consumers, taxers, and in some cases,producers of electric power. Key legislators and others will offer their predictions. 11:30 a.m. Personnel Regulations Cost Task Force Member State laws and regulations impact cities as employers. A member of the League's Improving Local Service Delivery Personnel Subcommittee will explain how they hope to persuade legislator of the need to limit the costly impacts of personnel regulations. Noon Lunch 1 p.m. Cities as Teleco Providers No city can afford to be left out of the telecommunications revolution. Hear how some cities have taken matters into their own hands by becoming telcom providers for their citizens. 1:45 p.m. Potpourri 2 p.m. Break To register 2:15 p.m. Policy Adoption Call the LMC fax library at (612) 215-4039, and request document#61010. 3:30 p.m. Adjourn 1 . r:T ,., ...... .,,.......... . , II . ..., :,..` 8 -.'.. :4",.•.! • , ". k b e 4104' 1 - . 4 . 1 1 Itibh1 OA'' -' c .. . 1 Nf-4ardia Ai r'k:7tt''' 'r.:AtillTtelifOlit ett4altit7t4,1.. _..._ ktiati 83A1141/ 'ANIMA I rtnilaniiii0)i' (ILL. i f i -:-' - i t4akt4litt-ttal I .-: :.-..-,,,,vJ r)tvt.i . ..._. Ii 6.1441411 WO tortifiCi .,:..lvtly15xli DWI ..,- '.•,=.11kosa Itipt sib itircritzl.rti vy:-.o.,..,-).-4 ‘Z} t ‘ish-%!1'.111.t"., '1'ikis".1.1-).-.41".—,rAl DI.A......k i',,..,:.;:......'-‘, — - .! \`.1.-1-tv.,w:,-;',.i.: .;..,N.iwtt.t -,..',114..rttAxlzsairublti ttit Totottil Aim Itsittult4yul zi 1. i.i 1,t6,11.-.,•.'t".'AP. 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(Credit card) Number and expiration date tateZip ( ) Is , Phone C C C C C Mail to: Month/Day/Year Month/Day/Year Ramada Plaza Hotel Arrival Arrival time Departure 12201 Ridgedale Drive Minnetonka, MN 55343 Check in time 3 p.m. Check out time 12 p.m. (612) 593-0000 (800) 588-0443 Exit off I-394 on Ridgedale Drive One mile east of I-494 and I-394 L J Feel free to duplicate for multiple registrations hr '41 ` `MEQ i k ....k5",..!-,.." P, tt r r ` 3`t+.,. ' "�{ x S' +' • '-',Y-4-TY. ... e { _tet a 1.-I,:''y +' y ",.'57-,c,1-,,N4--Z, rkF s 1 s "'``�s a. % .Nyi`w • ' 5 'h '," t`1 i. A YF°:.p z n 1 �� Fz f '''''''-'''-143.1.4!k.4'"..;'''''''''._''' m 'x�, ,, s ,a a,. a t.3 , '--,,-,,,.--;"‘", ;.'t, t atf �. as K '- "' kec rY 'a;�' 4P :::-..;';...-.4:-'a, " x'�e'Y + r ,XtsY s ° ui r ffir yT Y ?ti �,;1:-.....,',02 * .�' ��r €s.r, � '�?t ,,,.,4'` ;"��'��;�. �, 'ds �d f s. '�, "� r �^� k,.r�->,� ai i 5, x x',F k i 3 '''-: ,` tea -:'fi .a ,3 .i i-�,?. .�G�' d flr s" +na +.s' ., ..: a� +a fir'L5 :p ' is Cf Is �`7;Mt y 4� , �„ y 7; \ il..„7 LW 145 University Avenue West, St. Paul, MN 55103-2044 League of Minnesota Cities Phone: (612) 281-1200 • (800) 925-1122 Cities promoti g excellence Fax: (612) 281-1299 • TDD (612) 281-1290 LEAGUE OF MINNESOTA CITIES POLICY ADOPTION PROPOSED MEETING RULES 1. Registration Registration shall remain open from the opening of the conference until completion of policy adoption. 2. Voting Privileges The vote on any legislative matter shall be by acclamation; but at any time before the result of the vote is announced, the presider may, and shall, if requested to so do by ten or more delegates present, submit the question under consideration to a vote by municipality, in which case each member municipality represented shall have one vote. Each current LMC member city shall designate one official as delegate (and may select another city official as an alternate) for voting purposes. Possession of the voting card of the city and the signed voting card register shall be evidence that the holder of the voting card is the city's voting delegate. 3. Committee Reports The chair or vice chair of each committee shall present the committee report and move adoption of the policy statements. Before adoption of the committee report,the chair or vice chair may place on the agenda for discussion a motion supported by at least 10 delegates to: A) make a substantive change or addition to the language, or B) divide a proposed policy statement. The final vote shall be on the committee report as amended. The text of nonprocedural motions and amendments, other than motions to divide a policy statement, must be submitted in writing to the presider prior to debate. 4. Approval Requirements A) Amendments to language or division of proposed policy statements require a majority vote of the City delegates voting on the motion. B) Final passage of any policy or amended policy requires a favorable vote of 2/3 of the City delegates voting on the policy. = OVER = AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER 5. Disputes Disputes regarding eligibility to vote shall be referred to the LMC General Counsel and may be appealed to the conference. Appeals from decisions of the general counsel shall be a special order of business and may be taken up at any time a new question (main motion) is in order. 6. Limits on Debate Each speaker should limit comments on any debatable question to three minutes. However, the chair may further limit the debate by each speaker in order to consider an issue if numerous delegates request to be heard on the issue. 7. Parliamentary Procedure Precedence. The policy adoption process shall be governed by the LMC Constitution, these rules, and Roberts Rules of Order, Revised. The conference shall be its own judge of these rules and Roberts Rules of Order. Changes. Motions to "rescind" and "reconsider" shall require a two-thirds vote of delegates present and voting. I:mdiedric\policies\98rules.pac c Y 3 ee o a Q" ce a) ..r c L O 0 O o U cn c c ? at L - c c -a 00 - a a) C v) E o U -o cr, •a) •v U a E E x '� o c x C1 = c b E c cct -a ct ° E ht 0 O c a) C cmc c p o c`�i c y C7 c o aa)i W .< U c� I- o c 5 U ) 'E ' c > •o c a E-• .� ° ro o c ' . ao 055) c io c 0,o .' •a0_i v) ct o w �i o o Li _� :c s to C �, ) a o 0 E az .L 0 a o y Q c °� U U o c ° W •- a ... p a' to y «s ca :° aci p o o n ° c� •C a w ° o H E .2 _ aan w E E c U) °) Cl., c .2 . _o E 'c ° 0 0. 'c " '° p E a) - o C7 c Z -a on c a) .< - ro E .? N Q .� -to '.-] o c 0 W o v c U .E 04 U O ° E 0 c E cs W — o i U y w on a� C, is r w 3 in ct E= U U U W ,.. _ U L� a til ... U Q .- Q 2 a a` U N CC 0 O • ao N M V v'i CH . O N N N an 7 V) CO aT . •. . . . . . . . . . . . . . . . . . . . rfr +-' W W W W W W W W 6 6 6 6 6 6 fa 6 6 6 6 6 6 0 0 0 x .� J .. 7 ..� J .-] ... -1 t/) U] V) V) C/) C/) VD V) V] cn Cn v] VD VB VD VD Ct w z w U C C L. O ^ Cr EO C .c .. >3 c E 0 L ...-k. CA . ) Cl. 0 y 1474 cil a) CCS 0 ccO o o 6. cw UCp„ E ai 0 C •i Ea a al ul a E a �- ami c -a e4 C. cu vl 0 C E a E- < 'n E- o o Q < c a-) c cn cc3 CS et O a' C7 E• U O a) .03 D Q .' a) •O U C' a) U E co •J = L E c4 c E ° E o a cc°i a>— ,i c .. p a>`i o = U c E c w o Q4 0 co c on C50 c o c c c ca ,- Z i� o �, ° c n a) U c ao ••. C 4 •`-. °' J co >, rx c Q cn o a a, ') :.o .� 'vc a o x > c z •= aci x > x c U o E W c U — cut._ U O 4., cC c4 °I)'t3 O O a) co 0 E ca y c L. Z a c,,,,, -p on - E- e� o c° c ccdi x aci w c coCA C7 E c`-S . Q n o a) o v- O Ct E. ,c U c a) 4- !].. L T •U 4] 'O ..O C U w J v) -- E- ar ° M .t a O o a) •U .u" E C c a co o on co a) a CG ', R. E w >, a n n U v > -o a() x 0 °° 'n 0 0 0 °= c° w •v c. cn E- •U v) Q a E v) a Li C. D ri w F- C.w rx a` C7 v) ¢ U et ae • p N ch N O — N • a N M 1- kr) CO or, .-. . . . i . . . N M �' l� CO CT Cx Li Ls Li Cs Lz Cs La Li Gz Ls Ls Ci Li Lz Lz W W W W W W W W C7] U% W W R, Lt.' LI. Cx, Li., Li, U. La.. LT.. LI- CL fa., fa.. Li. R, LT.. .-.) J J J J J J J J J J J 1 1 1 1 Use this space to make any comments or changes to the proposed policies. t Use this space to suggest and briefly comment on additional policy issues you wish to be addressed. If necessary, use additional sheets. LEGISLATOR CONTACT SHEET Are you acquainted with your state senator and state representative? The League of Minnesota Cities is compiling a list of possible legislative contacts. We need your help. City Official: • City: Address Phone Number: Fax: E-Mail: Legislator Relationship (e.g. neighbor,friend) 1. 2. 3. Please return completed form to: League of Minnesota Cities 1,Mu]s/J Intergovernmental Relations 145 University Avenue West ♦♦♦ League of Minnesota Cities St.Paul,MN 55103 Cities promoting excellence (612)281-1200 Fax(612)281-1299 f <. ., c 145 University Avenue West, St. Paul, MN 55103-2044 League of Minnesota Cities Phone: (612) 2814200 • (800) 925-1122 Cities promoting excellence Fax: (612) 281-1299 • TDD (612) 281-1290 October 24, 1997 Dear League Members: I am pleased to submit the accompanying draft 1998 Legislative Policies for your consideration. These policies were developed by more than 200 city officials serving on the League's policy committees and their respective policy task forces. For those of you who served on a task force or policy committee, I would like to thank you for your time and efforts. The hard work and input of city officials is the necessary foundation for developing and implementing a successful legislative agenda for the League of Minnesota Cities and its members. For those who could not participate in the policy committee process, your input in the League's policy development process is still crucial. The League needs your review of the attached draft 1998 Legislative Policies and the proposed resolutions. Please plan to attend the LMC Policy Adoption Conference on November 21 at the Minnetonka Ramada Plaza. If you cannot attend the conference and have concerns or suggestions, please contact any member of the Intergovernmental Relations staff at the League. On behalf of the Board of Directors and League staff, please accept my sincere thanks for your contribution to this most important process. Sincerely, Robert C. ong League President City Attorney, City of Mounds View I:mdiedric\policies\pac\pres.I tr AN EQUAL OPPORTUNITYIAFFIRMATIVE ACTION EMPLOYER CONTENTS Letter from the League President General Policy Statement iii League Staff iv Legislative Policy Committee Members v Policy Development Process vii Statement of Intent viii PART I -- 1998 POLICY GUIDELINE Improving Community Life CL-1. Livable Communities 1 PART II -- 1998 CITY POLICIES Improving Fiscal Futures FF-1. State-Local Fiscal Relations 3 FF-2. State Shared Revenues 4 FF-3. Taxation of Municipal Bond Interest 5 FF-4. City Fiscal Year 5 FF-5. Sales Tax on Local Government Purchases 6 FF-6. Delinquent Property Tax Penalties and Interest 6 FF-7. Payments for Services to Tax-Exempt Property 7 FF-8. Truth-in-Taxation 7 FF-9. State Deductions from LGA 8 FF-10. Reporting Requirements 8 FF-11. Federal Budget Cutbacks 8 FF-12. Local Performance Aid 9 FF-13. Price of Government 9 FF-14. Development Fees 10 FF-15. Residential Nonhomestead Property Tax Relief 11 FF-16. Electric Utility Taxation 11 Improving Local Economies LE-1. Tax Incement Financing 12 LE-2. Property Tax Reform, Levy Limits, and TIF 15 LE-3. Economic Development Programs 16 LE-4. Redevelopment of Developed Communities 17 LE-5. Property Tax Abatement Authority 18 1998 City Policies LE-6. Brownfields 18 LE-7. Growth Management and Annexation 20 LE-8. State and/or County Licensed Residential Facilities (group homes) 21 LE-9. Affordable Housing 22 LE-l0. City Role in Telecommunications 24 LE-11. Redesign of Electric Utility Regulation 26 LE-12. Adequate Funding for Transportation 28 LE-13. State Aid for Urban Road Systems . . 28 LE-14. State Aid Roads for Contiguous Cities Under 5,000 29 LE-15. Turnbacks of County and State Roads 30 LE-16. Cooperation Between Counties and Cities Over County.Roads Within Cities 30 LE-17. Management of Rights-of-Way 31 LE-18. Communications Infrastructure 33 LE-19. Effective Telecommunications Competition 33 LE-20. Local Zoning Regulation of Telecommunications Service Providers 34 LE-21. ISTEA Reauthorization 34 Improving Service Delivery SD-1. Redesigning and Reinventing Government 35 SD-2. Unfunded Mandates 37 SD-3. Civil Liability of Local Governments 38 SD-4. Environmental Protection 39 SD-5. Personnel, Pensions, and Labor Relations 40 SD-6. Election Issues 43 SD-7. Local Election Authority 43 SD-8. City Costs for Enforcing State and Local Laws 44 SD-9. Access to Information Technology and Services 44 SD-10. Lawful Gambling Fund Expenditures 45 SD-11. Design-Build 46 SD-12. Mobile Home Park Oversight 46 SD-13. Proposed Plat Approval Authority 47 SD-14. Providing Information to Citizens 48 SD-15. Creating a Minnesota GIS Program 48 SD-16. State Licensing of Massage Therapists 49 11 League of Minnesota Cities General Policy Statement • One of the most important purposes of the League of Minnesota Cities is to serve as a vehicle for cities to define common problems and develop policies and proposals to solve those problems. The League of Minnesota Cities represents 815 of Minnesota's 853 cities as well as 12 urban towns and 24 special districts. All sizes of communities are represented among the League's • members(the largest nonmember city has a population of 163)and each region of the state is represented. The policies that follow are directed at specific city issues. Two principles guide the development of all League policies. 1. There is a need for a governmental system which allows flexibility and authority for cities to meet challenges of governing and providing citizens with services while at the same time protecting cities from unfunded or underfunded mandates, liability or other financial risk, and restrictions on local control; and 2. The financial and technical requirements for governing and providing services necessitate a continuing and strengthened partnership with federal, state,and local governments. This partnership particularly in the areas of finance,development, housing, environment, and transportation is critical for the successful operation of Minnesota's cities and the well-being of city residents. 1998 City Policies iii LEAGUE STAFF WORKING WITH STATE AND FEDERALISSUES Jim Miller, Executive Director Mandates,'telecommunications Gary Carlson, DirectorofIntergovernmentat Relations General revenueksources forcities including.aid=to cities eitimanchtheirpropqrty tax system,`fiscal rtadministration of cities, economic development,and redevelopment; personnel, transportation Kevin Frazell, Director of Member Services Government innovation and cooperation Tom Grundhoefer, General Counsel General municipal governance, telecommunications Ann Higgins,IntergovernmlentalRelations Representative Telecommunieatjions,t housing,2 elections=and ethics,,utility serviee,distriets, transportation Andrea Stearns, Intergovernmental Relations Representative, Tax increment financing, land use, ethics, economic development and redevelopment, fiscal issues, housing,public safety, general municipal. governance Remi Stone, Intergovernmental Relations.Representative Growth management and land use, environmentalprotection, personnel Eric Willette, Legislative Policy Analyst General revenue sources for cities including aid to cities and the property tax system, fiscal administration of cities, pensions iv League of Minnesota Cities • Legislative Policy Committee Members Improving Community Life Steve Okins,Vice Chair,Finance Director, Willmar Dick Abraham,City Administrator, Lake City Sue Gehrz,Chair,Mayor, Falcon Heights Karen Anderson,Mayor,Minnetonka Jean Andre,Assistant to Manager/HRA Coordinator, David Beaudet,Councilmember,Oak Park Heights Golden Valley Steve Bjork,City Planner/Coordinator,St. Francis Jack Barlow,Councilmember, Lauderdale Thomas Burt,City Administrator, Rosemount • Bill Barnhart,Intergovernmental Relations, Gino Businaro,Finance Director,Mound Minneapolis Dave Callister,City Administrator,Osseo Robert Benke,Mayor New Brighton Henry A. Duitsman,Mayor,Elk River John Blahna,Mayor,Landfall Terry Dussault,Assistant to Manager,Blaine Cathy Busho,Mayor, Rosemount (alternate) Kathleen Carmody,Councilmember,Brooklyn Gary Eitel,City Administrator, Rogers Center Charlotte Erickson,Administrator/Clerk, Minnetrista Peter Connor,Mayor,Owatonna Jerry Faust,Councilmember,St.Anthony Lorenzo Davis,Administrative Intern, Eagan Roger W. Fraser,City Manager, Blaine John Doyle,Councilmember, Marshall Rick Getschow,City Administrator,Hector Michael Ericson,City Administrator,Watertown John Gretz,City Administrator,Apple Valley Pat Farrell,Chief of Police, Rochester Rod Hale,Councilmember,Cottage Grove Sharon Feess,Councilmember,Brooklyn Park Jeff Haubrich,Assistant Council Administrator, Evelyn Fox,Councilmember, Breckenridge Red Wing Wendy Gorham,Councilmember,Mora Steve Helget,City Clerk/Administrator,Tyler Harlan Gorath,Councilmember,Fairmont Patrick Hentges,City Manager,Mankato Ar ly Gunderman,Councilmember,New Brighton Susan Hoyt,City Administrator,Falcon Heights Vivian Hart,GTS,St. Paul Bill Huepenbecker, Intergovernmental Director, Sue Henry,Administrative Aide,St.Cloud St. Paul Fran Hesch,Councilmember,Hopkins Greg Isaackson,Clerk-Administrator,Cottonwood James Hurm,City Administrator,Shorewood Joel Jamnik,Campbell Knutson,Eagan John Jenkins,City Administrator,Ortonville Barbara Jeanetta,Assistant to Manager,New Julianne Manship,Neighborhood Development Brighton Director,West St. Paul Elizabeth Kautz, Mayor, Burnsville Sandra Masin,Councilmember, Eagan James Keinath,City Administrator,Circle Pines Roberta Megard,Councilmember,St. Paul Dennis Kraft,City Manager, Robbinsdale James Mladek, Mayor, Montgomery Lynn Lander,City Administrator, Hermantown Ed Mylnar,Mayor,Lester Prairie Bob Larson,City Administrator, Deephaven Deb Moran,Councilmember, Burnsville Ann Lenczewski,Councilmember,Bloomington Larry Nicholson,Councilmember,Moorhead Kathy Lueckert,Assistant City Manager, Plymouth John Olinger,City Administrator,Mahtomedi Wes Mader,Councilmember, Prior Lake Isobel Rapaich,Councilmember,Duluth Michael McGuire,City Manager, Maplewood Char Samuelson.Councilmember,New Brighton Steve Mielke,City Manager,Hopkins Barbara Sanderson,Councilmember,Grand Rapids El Mlynar, Mayor, Lester Prairie Jolie Sasseville, Public Information Officer,Fergus John Moir, Finance Department,Minneapolis Falls Ruth Nelsen,City Clerk, Hilltop Betty Sindt,Councilmember, Lakeville Gary Neumann,Assistant Administrator, Rochester Grant Thorstad, Police Officer/DARE Instructor, John Perino,Mayor,Alexandria Rosemount David Pokorney,City Administrator,Chaska Blair Tremere, Assistant City Manager, Prior Lake Bryan Read,City Administrator,Montgomery Dawn Weitzel, Interim Deputy Clerk, Mounds View Douglas Reeder,City Administrator, South St. Paul Duane Zaun, Mayor, Lakeville John W. Remkus, Finance Director, West St. Paul Robert Rys,City Administrator, Minnesota Lake Improving Fiscal Futures Ryan Schroeder,City Administrator, Ramsey Alfred Schumann, Mayor, Eyota Joy Tierney,Chair, Mayor, Plymouth James Smith,Councilmember, Independence 1998 City Policies v Gerald Sorenson,Administrative Services Director, Mark Nagel;City Manager,Anoka Moorhead Rhoda Newlin,Councilmember, Red Wing Pete Stolley,Public Works,Northfield James Norman,City Manager, Montevideo Malcolm Tilberg,City Manager,St.James Bruce Peterson,Community Development Director, David Urbia,City Administrator,Blue Earth Willmar Gene VanOverbeke, Finance Director, Eagan Dan Rogness,Community Development Director, Jeff VanWychen, Intergovernmental Relations, Rosemount Minneapolis(alternate) Joe Rudberg,City Administrator, Becker Daniel Vogt,City Administrator,Brainerd Terry Schneider,Councilmember,Minnetonka Bill Waller,City Administrator, LaCrescent Chad Shryock,City Administrator, Eagle Lake Chuck Whiting,Clerk Administrator,Mounds View Robert Therres,City Administrator, Sartell James Willis,City Administrator,Inver Grove Brian Wagner,City Coordinator, Lakefield Heights Craig Waldron,City Administrator,Oakdale Donn Wiski Councilmember,Roseville Daniel Wall,Mayor,Roseville - Denny Wilde,City Administrator, Paynesville Improving Local Economies Betty Zachmann,City Clerk-Treasurer, Winsted Bonnie Cumberland,Chair,Mayor,Brainerd Improving Service Delivery Duane Zahn,Vice Chair,Mayor,Lakeville Kirsten Barsness,Economic Development Director, David M. Senjem,Chair,Councilmember, Rochester Cottage Grove Jerry Dulgar,Vice Chair,City Manager,Crystal David Beaudet,Councilmember,Oak Park Heights Patricia Crawford,Clerk-Treasurer,Motley Jerry Bohnsack,City Administrator,New Prague Laurie Elliott,Personnel Coordinator,Shoreview Gerald Breuer,City Administrator,Staples Brian Fritsinger,City Administrator,Arden Hills Kevin Carroll,Councilmember,Rosemount Theresa Goble,Finance Director,Brainerd Victoria Cox,Councilmember, White.Bear Lake Ken Hartung,City Administrator,Bayport James Daniels,Administrator, Lake Minnetonka Mimi Hasselbalch,Councilmember,Vadnais Heights Communications Commission,Excelsior Andrea Hart Kajer,intergovernmental Relations Leo W. Eldred,Councilmember,Moorhead Director,Minneapolis(alternate) Michael Ericson,City Administrator;Watertown Mark Karnowski,City Administrator, Lindstrom Keith Ford,Community Development Agency, Kay Kuhlmann,Council Administrator, Red Wing Minneapolis Myrna Maikkula,City Clerk, Brooklyn Park Matt Fulton,City Manager,New Brighton Kay McAloney,Personnel Director,Anoka Allen Greenfield,Councilmember,Prior Lake Mary Helen Mische, Intergovernmental Relations Tom Hansen, Deputy Manager Administrative Assistant,St. Paul Enterprises, Burnsville Judd Mowry,Councilmember,Tonka Bay Duane Hebert,City Administrator,Renville Susan Olesen,Clerk, Burnsville Pat Heldt,Councilmember,Alexandria Desyl Peterson,City Attorney, Minnetonka - Jon Hohenstein,Assistant to Administrator,Eagan Isabel Rapaich,Councilmember, Duluth Bill Huepenbecker, Intergovernmental Relations Dan Scott;City Manager,North St. Paul Director,St. Paul Ceil Smith,Assistant to City Manager, Edina Marvin Johnson,Mayor,Independence Glenda Spiotta,City Administrator,Carver Ronald Johnson,City Administrator,Zumbrota Joyce Swadner, Elections Office, Minneapolis Steven C.Jones,City Administrator, Mora Blair Tremere,Assistant City Manager, Prior Lake Andrea Hart Kajer, intergovernmental Relations Joyce Twistol, Personnel Director/City Clerk, Blaine Director,Minneapolis(alternate) Kurt Ulrich,City Administrator,Champlin Randy A. Kolb,Councilmember,Blaine Susan Walsh,Administrative Assistant, Rosemount Edward R. Larson,City Manager,Morris Rena Weber,Clerk/Coordinator,Cold Spring Larry Lee,Community Development Director, Liz Witt,Administrative Assistant,Eagan Bloomington Krista Witty, MVCOG Director, Mankato Greg Lerud,City Manager,Milaca Wally Wysopal,Assistant to Manager/Personnel Don Levens,City Administrator,Cokato Officer,St. Louis Park James L. Mladek, Mayor, Montgomery Ron Moorse,City Administrator,Orono E.Craig Morris, Mayor, Lakeland vi League of Minnesota Cities League of Minnesota Cities Policy Development Process The League's policy development process has taken place over the past five months. The process began with a member survey of priority issues facing city officials. The process will not end with the policy adoption conference. The committees will schedule additional meetings during the upcoming legislative session to discuss additional issues, develop alternative solutions and to discuss strategies to implement the League's policies. Listed below is a brief chronology of the major events in the policy development process. At each step, members have the opportunity to participate in the development process. April/May The League solicits members for ideas and problems. A survey at the Annual • Conference allows members to formally suggest topics. June The League President accepts applications for committees and appoints policy committee members. The policy committees are: Improving Fiscal Futures Committee Improving Local Economies Improving Service Delivery In addition, the Improving Community Life Committee meets on a regular basis to discuss issues affecting "livable communities" and to develop the Improving Community Life policy guideline. July Committees meet to discuss issues raised in member survey. Commitees can also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. August Committees and task forces meet to discuss issues and problems, accept through testimony and develop policy statements. September October Legislative Committee meets to finalize policies. The Legislative Committee is comprised of the League's Board of Directors and the chairs/vice chairs of the four above-mentioned committees. November Policy Adoption Conference. Members have the opportunity to discuss the draft policies, propose changes, and suggest additional policies for membership consideration. December The Board adopts the Legislative Action Plan, based on input from the Policy Adoption Conference. January Legislative Session. During the session, the policy committees and task forces through will continue to meet on issues and strategies. Members can assist the League's May legislative efforts by volunteering to contact legislators on a variety of issues of interest to our cities. 1998 City Policies vii Statement of Intent •There are many„prohlems,which limit the effectiveness of city government to improve community life,,iipye the fiscal future and service delivery of city government, and to improve the local egOn9n1Y. What follows are,stateinentS of,the problems facing cities and the solutions-proposed to help resolve these propents ,These statements of problems and proposed solutions-form the policy of the League of Minnesota Cities,. Additional and alternative solutions to these problems may be proposed after tbepplicy Adoption Conference and the members of the League authorize its Board of OiregozrA.to,conWer and support additional or;alternative solutions, ifuecessary, to resolve the problems identified in this policy statement. viii League of Minnesota Cities Part I 1998 Policy Guidelines IMPROVING COMMUNITY LIFE CL-1. Livable Communities To the greatest extent possible, legislation affecting communities at the state and federal level should enhance, not diminish, the ability of citizens, businesses, and local governments to work together in partnership to make every community "livable." PROBLEM: Cities in Minnesota are at various stages in meeting the goal of being "livable communities." SOLUTION: The definition of a "livable community" below will be used to evaluate proposed legislation to determine whether or not it advances the goal of enabling all Minnesota cities to become livable communities. It should also be used by cities to evaluate their progress toward the goal of becoming livable communities. A LIVABLE COMMUNITY IS: WHERE PEOPLE OF ALL AGES • share a core of common values including valuing diversity, respect for each other, and good citizenship • feel: * safe * a sense of belonging * welcome • engage in life-long learning activities that: * prepare them for responsible citizenship * enhance the enjoyment of life * prepare them for changing job markets • participate in the decision-making process of community leaders • celebrate community • want to make their home 1998 City Policies 1 • have:access to: • good paying,jobs * adequate and Offordable housing * choice of, ct transportation systems including transit, pedestrians, and bicycles • gathering.places * Pe 1nivrwation * choice plc ,lturAl and recreational activities * affordOle gds and scrvt s,, nciuding..health.care • are involved in the;nurturing of youth ,f care about l eer homes, community and:the environment • get to.know.each other • have the benefit ofstrong family support and nurturing..adults • is responsive;to the., needsof its citizens • .is actively supported by enthusiastic volunteers • is open and user friendly • encourages and implements cooperation and collaboration provides and maintains an adequate physical infrastructure and promotes social infrastructure to meet local needs • educates citizens of all ages on local, regional, and state issues and government processes • informs and communicates with citizens to fosterparticipation in public policy decision-making • participates in youth development 2 League of Minnesota Cities Part II 1998 City Policies • IMPROVING FISCAL FUTURES 1 FF-1. State-Local Fiscal Relations 2 Issue: Minnesota's state and local government finance system is complex and intertwined. 3 Cities rely on their partnership with the state to provide local services. On the other hand, the 4 needs and desires of Minnesota's communities are many and wide-ranging. While the state's 5 revenue-sharing system has been regarded as innovative and helpful, there exists a growing 6 need for local elected officials, those closest to the electorate, to be responsive to the service 7 needs of the local citizenry. To that end, cities need discretion and flexibility in determining 8 local revenues. 9 The 1997 legislature made changes to Minnesota's property tax system that will impact the 10 ability of local governments to fund necessary services. The reimposition of levy limits, 11 significant class rate compression, and changes in state funding of schools all may have 12 unintended consequences. 13 Response: As the legislature considers additional property tax changes in 1998, it 14 should: 15 • carefully analyze the combined impacts of the 1997 tax bill and changing economic 16 circumstances on the taxpayer and on local governments so that policymakers can 17 better understand where the system may need further changes; 18 • repeal levy limits, which are inefficient, ineffective, interfere with local accountability 19 and ignore local circumstances; 20 • diversify available city revenue sources by generally authorizing local taxes that 21 reduce reliance on the property tax; and 1998 City Policies 3 1 •. reduce the property tax burden for all:classes of-property by increasing the-state share 2 of school funding. Any increase in the state share of school funding must guarantee a 3 permanent reduction in the local property tax burden: The League supports.paying 4 for the,increasedstate costs through income and sales taxes. 5 The legislature should not: 6 o:' replace all or-para of LGA or.HOCA with state-mandated-categoricalaidr programs, 7 or local option.taxing authority; 8 • switch from the classification system to a=market value based system, which,would 9 cause-tremendous shifts of tax burden between classes of property. The League-also 10 opposes applying all future levy increases to:-market=value because this would-Anther.. 11 complicate the property tax system; 12 interfere in local decision;making,;regardingservice delivery; 13 •: impose a state-levied property tax; and 14 s cut,LGA or HACA to•finance an increased state role in school-finance. 15 FF-2. State.Shared-Revenues 16 Issue:State revenue sharing programs address at least three problems with a stand-alone 17 local government finance system. First, the property tax base available to communities can 18 vary dramatically. These programs use state resources to equalize the ability of communities 19 to provide essential services without undue property tax burdens for local residents. 20 Second, nonresidents can take advantage of local services or create additional demands for 21 services without contributing to the taxes that support these services. LGA and HACA help 22 address the free rider problem where nonpaying individuals consume services without 4 League of Minnesota Cities 1 contributing to the local tax base. 2 Third, allowing local units of government in Minnesota to only levy the property tax has 3 created an over-reliance on the property tax. LGA and HACA can reduce the overall reliance 4 of local governments on the property tax. 5 Response: LGA and HACA, or similar replacement revenues, must be continued and 6 additional state resources greater than the rate of inflation must be allocated to prevent 7 rapid future property tax increases. In addition, the HACA household growth factor for 8 cities should be reinstated. 9 FF-3. Taxation of Municipal Bond Interest 10 Issue: The state law that grants a tax exemption for municipal bond interest is being 11 reviewed and could be repealed. A repeal of this exemption will raise borrowing costs for 12 cities. 13 Response: The state should maintain the tax exemption for municipal bond interest 14 income. 15 FF-4. City Fiscal Year 16 Issue: The fiscal years for the state and cities are offset by six months. The state fiscal 17 year begins on July 1 while the city fiscal year begins on January 1. Lawmakers have 18 proposed changing the city fiscal year to coincide with the state. Such a change, while 19 providing questionable benefits for cities, would not correspond with the current property tax 20 cycle, impair historical comparisons of data, force cities to retool accounting systems, will 1998 City Policies 5 1 adversely impactcity creditratings, and;could result in state funding gaps. 2 Response: The state•should maintaim current law and,note change°the city fiscal year'to 3 coincide with thestate fiscal year. 4 FF-5. Sales Tax.on Local:Government/Purchases 5 Issue: In 1992 when theastate was experiencing a. budget shortfall, the,legislature repealed 6 the,sales tax exemption for local government purchases. This action currently costs local 7 governments anestimated $77.5 million annually. Because no additional state aids were added 8 to offset the additional cost, this repeal has effectively increased local property taxes to finance 9' state operations. 10 Response: The state should reinstate the sales tax,exemption for all local government= 11 pur.:chases. The,exemption..mustnot.betoupled with.cuts`in LGA or HACA: 12 ' FF-6.• Delinquent Property Tax Penalties and Interest 13 Issue: Although city finances are affected by property tax delinquencies, cities do not 14 receive any associated penalties and interest on•these delinquencies. Penalties and interest are 15 split evenly between counties and schools. 16 Response: Cities and counties should receive a pro-rata distribution of 50 percent of 17 the penalties and interest collected on delinquent property taxes with the remaining 50 18 percent to be distributed to schools. 6 League of Minnesota Cities 1 FF-7. Payments for Services to Tax-Exempt Property 2 Issue: Taxable property in many cities is being acquired by nonprofit and government 3 entities. Converting the property to tax-exempt status can lead to a serious tax base erosion 4 without any corresponding reduction in the service needs created by the property. 5 Response: Cities should be allowed to collect payments to cover costs of service in-lieu 6 of property taxes or special assessments from statutorily exempt property owners. 7 FF-8. Truth-in-Taxation 8 Issue: The legislature created the truth in taxation process in 1993 as a replacement for 9 state-mandated levy limits. The 1997 legislature re-enacted levy limits,for many cities, yet the 10 truth in taxation requirements remain. The 1997 legislature also changed the parcel-specific 11 notice of proposed property taxes to separate the effects of local spending decisions on 12 proposed taxes from the effects of factors beyond local control such as changes in valuation or 13 legislative changes to the class rates or state aids. 14 Response: Changes made in 1997 to the truth in taxation notice will hopefully clarify 15 the roles and responsibilities of the state and local governments. But modifications may 16 be necessary if the new form proves to be too confusing to taxpayers. In addition, cities 17 need more flexibility in the truth in taxation process. Cities should be able to schedule 18 their initial hearings that may conflict with others' hearings, if no other dates are 19 available. Cities should have the authority to increase the final levy from the preliminary 20 levy. 1998 City Policies 7 1 FF-9. State Deductions fron 'LGA 2 Issue: State administrative costs are deducted fromthe"LGA'appropriation. This reduces the 3 property tax relief prodded by LGA and creates'hidden appropriations'for state agencies. 4 Response: All appropriations Train°LGA'resburces that fiiird state o 'e`ratib'ns�slrtinid'` 5 be repealed: 6 FF-10. Reporting-Requirements 7 Issue: Budget and financial reporting requirements imposed on cities by the state often result 8 in duplication and additional costs. 9 Response: Requirements for reporting and ativei-fis n financial`aild•bitdget 10 information should be"carefully"weighed to"balatce°'th'e°validity of the'=stite's'nreetl for 11 additional `with'tl a°cost§ and`biitrd'er§of coiiY it ig and`stiliilnt`ftiiig th s 12 information: In addition,all state agencies'slhould be aware ofthe''it formation already 13 required by others to avoid duplication of reporting requirements. 14 FF-11. Federal Budget Cutbacks 15 Issue: Congressional actions to balance the federal budget will reduce federal assistance to 16 the state and to local governments. 17 Response: The state should not reduce aids or increase"fees to local governments as a 18 means for dealing with cutbacks in federal revenues. The state should take responsibility 19 for reductions in federal revenues rather than placing the burden on cities and their 20 property taxpayers. 8 League of Minnesota Cities 1 FF-12. Local Performance Aid 2 Issue: When the 1996 legislature created the local performance aid program,the legislation 3 was vague and the program was partially funded by cuts in HACA. In the future,the 4 requirements for applying for the aid could become an onerous mandate on cities and undermine 5 local decision-making. 6 Response: The League strongly supports efforts by cities to improve the efficiency and 7 effectiveness of their operations,including exercises such as performance measurement 8. systems. However,these efforts should be local initiatives rather than state mandated 9 actions. Therefore,the League opposes LPA. If local performance aid is to be continued: 10 • The law must be clarified and the qualification requirements must be attainable by all 11 cities regardless of city size or staffing levels. 12 • All additional funding must come from new revenue sources rather than shifts of aid 13 from other programs such as LGA and HACA. 14 • The program must not become an onerous mandate requiring additional city resources. 15 • Any information on individual cities that is collected from the program must not be 16 used to simplistically compare cities. 17 FF-13. Price of Government 18 Issue: The price of government legislation enacted in 1994 was intended to measure the 19 overall effect of state and local taxation over a long period of time. The targets measure 20 government revenues as a percent of personal income. Unfortunately, the targets have been 21 misinterpreted and used unfairly to criticize city tax and budget decisions. 1998 City Policies 9 1 Response: The price of government statutes as they apply to local governments should 2 be repealed. If the price of government law is to continue to be applied to local 3 governments, price of government calculations should be: 4 • based on the sum of levy and state aid,not just levy; and 5 • based on long-term trends,not single year events. 6 FF-14. Development Fees 7 Issue: New development and the resulting growth creates an increased demand for 8 public infrastructure and other public facilities. Severe constraints on local fiscal resources and 9 dramatic forecasts for population growth have prompted cities to critically reconsider ways in 10 which we pay for the inevitable costs associated with new development. Traditional financing 11 methods tend to subsidize new development at the expense of the existing community, 12 discourage sound land use planning,place inefficient pressures on public facilities, and allow 13 underutilization of existing infrastructure. Consequently, local communities are exploring 14 methods to assure that new development pays its fair share of the true costs of growth. Given the 15 existing authorization to impose fees on new development for water, sanitary and storm sewer, 16 and park purposes, it seems reasonable to extend the concept to additional public infrastructure 17 and facilities improvement also necessitated by new development. 18 Response: The legislature should authorize cities to impose development fees so that 19 new development pays its fair share of the off-site, as well as the on-site, costs of public 20 infrastructure and other public facilities needed to adequately serve new development. 10 League of Minnesota Cities 1 FF-15. Residential Nonhomestead Property Tax Relief 2 Issue: Residential nonhomestead properties(one to three units)are in need of property tax 3 relief This is particularly true of duplexes and triplexes, which did not enjoy the same amount 4 of property tax relief in the 1997 tax bill as did single unit rental property; therefore,these types 5 of property should be taxed alike. Eliminating the distinction between single unit rental, 6 duplexes,and triplexes will simplify the property tax system by eliminating a class of property. 7 However, granting rental property all the tax advantages of homesteaded property may 8 decrease homeownership and could have a destabilizing impact on Minnesota cities. Homestead 9 property should continue to enjoy preferential tax treatment relative to other classes of property. 10 Under no circumstances should the class rate applied to residential nonhomestead property be 11 less than the class rate that is applied to second-tier homestead property. 12 Response:The League of Minnesota Cities supports maintaining the property tax 13 distinction between homestead and rental property. The League also supports combining 14 all one to three unit nonhomestead residential property into a single class of property with 15 a single class rate. This single class rate should be reduced to, but not below,the class rate 16 currently applied to second-tier homestead and rental property. 17 FF-16. Electric Utility Taxation 18 Issue: Part of the discussion regarding possible deregulation of the electric power industry has 19 centered on electric utility taxation. Proponents of deregulation assert that if effective free market 20 competition is to replace governmental regulation, state tax policy must be changed to "level the 21 playing field"or ensure competitive parity. The main focus of the Investor Owned Utilities (IOUs) 22 so far has been removal of the attached machinery or personal property tax. Utilities subject to the 1998 City Policies 11 1 tax argue that it places them at a competitive,disadvantage to non-Minnesota companies,Rural 2 Electric Cooperatives(Co-ops),and Municipals. However,accuratecomparisons of*.ax burden are 3 difficult, as other states use completely different taxing,systems: Additionally, Co-ops do pay the 4 tax on some of their property and Municipals make subst9.r1iial payments in lieu of taxes. 5 Utility personal property can bfr a significant portionofthe jocal:tax;base in all cities. Most 6 obviously affected are cities that have;power;plants;.however,aransmisch» ? o i�:Y =c:::c:::.::.�;;. ,,.•• �•ulf of Lige personal property taxes paid by the IOUs and exist in nearly 8 every city. Replacing the revenue that would be lost to cities,counties, school districts,and.other 9 local taxing jurisdictions is a stated goal of the IOUs; however,the mechanics rand funding sources 10 of such a replacement revenue would be,difficult to develop and administer, and could be subject to 11 reductions or elimination over time. Furthermore,replacements revenues or aids may not fully 12 address the problems created by a large tax base reduction. 13 Response: Cities oppose proposals for exempting the IOUs from the personal property tax. 14 Under no circumstances should local unitsof government and their taxpayers be required to 15 shoulder the burdens of tax relief for IOUs. Any effort to remove the personal property tax 16 must make cities and other local taxing jurisdictions whole in all respects. 17 IMPROVING LOCAL ECONOMIES 18 LE-1. Tax Increment Financing 19 Issue: The State of Minnesota has effectively delegated the responsibility for economic 20 development and redevelopment to cities. Unfortunately, neighboring states have given their 21 cities more development tools and, therefore, cities in these states have a competitive advantage 12 League of Minnesota Cities 1 over Minnesota cities. In Minnesota, tax increment financing is the most viable tool available to 2 all cities in their economic development and redevelopment efforts. The State, whether based on a 3 lack of information or misinformation, has been critical of cities' use of the tool and has 4 implemented a series of restrictions over the past several years rather than partnering with cities 5 and encouraging their endeavors to improve and enhance the economic well-being of Minnesota 6 and the growth and redevelopment of its cities. Cities, required to assume the financial risks 7 associated with development decisions, have used tax increment financing responsibly and 8 examples of these positive uses abound. A legislative task force was created by the 1997 9 legislature and directed to recodify the tax increment statutes for the purpose of simplification 10 only, with no policy implications. 11 Response: To effectively compete with other states, Minnesota must provide its cities 12 greater flexibility in the use of tax increment financing and other economic development 13 programs. In light of substantial changes to the tax increment statutes over the past several 14 years, the legislature should not make major policy changes in 1998. The State should 15 partner with cities in economic development and redevelopment activities and encourage 16 cities' use of tax increment in achieving the laudable goals of long-term tax base stabilization 17 and growth,job creation, development of low-to-moderate income housing, remediation of 18 pollution, elimination of blight, recycling and redevelopment of the infrastructure, and 19 redevelopment of its communities. Counties and school districts are appropriately involved 20 in cities' development decisions through current "review and comment" requirements. The 21 legislature should reject any recommendations from the TIF recodification task force which 22 have policy implications. If 1998 becomes a year for major changes in TIF policy, the 23 legislature should: 1998 City Policies 13 1 • remove existing restrictions to property included in a deferred assessment program within 2 the last five years (e.g., green acres); 3 • authorize any tax increment districts approved after April 1, 1990 to pool increments in 4 the same manner as districts certified prior to April 1, 1990; 5 • in light of levy limits, eliminate the LGA/HACA penalty currently imposed on districts or 6 allow an exception from levy limits. If the penalty is not eliminated, the restrictions on 7 the source of payment should be removed; 8 • expand the use of tax increment financing to assist in the development of technological 9 infrastructure,job training, the restoration of historic structures and for non-retail 10 commercial projects (e.g., software companies, banks, and insurance companies); 11 • exempt redevelopment districts from the "five year rule;" and 12 • modify the housing district income qualification level requirements to allow the levels to 13 vary according to those specific to individual communities. 14 In any event, consistent with the legislative TIF task force's recodification,the 1998 legislature 15 should make technical changes,including, but not limited to: 16 • requiring the Department of Revenue's definition of tax increment to be consistent with the 17 new statutory definition of tax increment; 18 • authorizing the use of federal grants and other funds for local contributions; 19 • removing the LGA/HACA penalty imposed on housing districts established between the 20 penalty years of 1990 and 1993; 21 • requiring the Office of the State Auditor to simplify their TIF reporting forms in 22 consultation with those required to complete the forms; 23 • authorizing TIF financial information to be published in a more simplified format so that it 14 League of Minnesota Cities 1 provides the average taxpayer with useful information; and 2 • providing cities with adequate administration financing. 3 LE-2. Property Tax Reform, Levy Limits, and TIF 4 Issue: Future proposals to reform the property tax system from the investor-owned utilities, 5 commercial and industrial groups, or others could have significant implications for tax increment 6 financing districts. For example, if property class rates are further compressed, existing tax 7 increment financing districts could experience additional revenue shortfalls which, in turn, could 8 jeopardize the repayment of outstanding debt or other obligations. Given the long-term nature of 9 property tax reform, cities could not have anticipated the impact of the 1997 class rate changes nor 10 can cities project the impact of future changes. The $2 million provided by the 1997 legislature 11 for grants where the class rate changes cause TIF district deficits, while critically needed, is likely 12 to be insufficient to cover every deficit, does not provide timely reimbursements, and is 13 administratively confusing. Additionally, several cities have pledged only the city property tax 14 portion to a project. Under levy limits imposed by the 1997 legislature, these cities will be unable 15 to meet these obligations. 16 Response: Any future proposals to reform the property tax system must provide for state 17 resources in an amount sufficient to cover any and all TIF district deficits. Additionally, if 18 the $2 million is insufficient to cover the deficits caused by the 1997 class rate changes, the 19 legislature should provide additional state resources so that TIF obligations can be met and 20 third party bondholders are protected. The legislature should also bring clarification to the 21 administration of the grant process and should require timely reimbursement. The 22 legislature should repeal levy limits. The legislature should provide resources so these 1998 City Policies 15 1 projects are held harmless from the ramifications of property tax reform. 2 LE-3. Economic Development Programs 3 Issue: The Minnesota Investment Fund is not adequately funded. The State does not 4 authorize an adequate slate of tools for local governments to assist job creation, redevelop blight 5 and decay, and provide adequate housing choices. Consequently, cities are not wellequipped to 6 compete nationally and internationally for business development. 7 Response: 8 • More state resources should continue to be contributed to the Minnesota Investment 9 Fund. 10 • In the event that the LGA/HACA penalty is not eliminated, a portion of the revenues 11 should be contributed to the Minnesota Investment Fund. These funds would then be 12 available for cities to retain businesses in the state and to attract business looking to 13 relocate from other states. 14 • The state should establish a new grant program that would provide funds to cities to 15 establish a Revolving Loan Fund targeted to gap financing for projects creating jobs. The 16 funds would be awarded to cities through a competitive grant program in which the 17 award is based on community need and local development capacity. The approved 18 applications would be funded strictly on the aforementioned criteria as well as the city's 19 development program and development priorities. The State would not be in the business 20 of reviewing projects with respect to specific companies and specific loans. These grants 21 would be in an amount up to $250,000 and would facilitate four to five initial local loan 22 projects. Local governments should be given the flexibility to utilize these funds 16 League of Minnesota Cities 1 throughout the city without any geographical restrictions. The funds to the communities 2 would be used to develop subordinated mortgages that are integrated with the primary 3 financing of a particular project. The loan could be utilized for retention as well as new 4 jobs. The respective community would be required to "recapture" the funds and also to 5 develop the appropriate collateral to protect the integrity of the Revolving Loan Fund. In 6 the event that the LGA/HACA penalty is not eliminated, a portion of the revenues should 7 also be contributed to the Revolving Loan Fund. 8 • Congress should remove the caps that have been placed on Industrial Development Bonds 9 and acknowledge that the extensive eligibility requirements now adequately limit their 10 use. 11 LE- 4. Redevelopment of Developed Communities 12 Issue: Developed communities across the State of Minnesota are faced with the unique 13 circumstances of deteriorating, obsolete, and vacant structures in neighborhoods and downtowns and 14 a lack of land for development. Redevelopment activities usually require large, up-front funds to 15 address multi-phase projects of extensive duration where site assemblage, demolition, relocation, or 16 pollution clean-up must occur before private-sector interest can be generated. The lack of a coherent 17 statewide policy and the State's unwillingness thus far to provide financial support has and will 18 continue to contribute to the increasing problem of urban sprawl. 19 Response: In recognition of the unique needs of redevelopment projects, the State should 20 make a commitment to reinvest in its developed communities and should undertake a 21 comprehensive approach which provides financial assistance to address their redevelopment 1998 City Policies 17 1 needs. 2 LE-5. Property Tax Abatement Authority 3 Issue: In an effort to increase the number of development tools available, the 1997 legislature 4 authorized local units of government to grant property tax abatements. While generally supportive 5 of additional development tools, cities did not promote this legislation. Abatement authority was - 6 never intended to replace existing tax increment financing authority. Abatement is not an adequate 7 replacement for TIF, particularly in redevelopment projects which typically have higher costs. In 8 addition, abatements were placed within the parameters of levy limits, thus, for the next two years, 9 the"increase" in taxes cannot be accessed to facilitate projects: 10 Response:TIF is still the primary viable development tool available. Abatement authority 11 should be available but it should not be offered as a rationale to eliminate TIF. If abatement 12 authority is to be at all effective,tax abatement projects need to be considered "outside"of levy 13 limits. 14 LE-6. Brownfields 15 Issue: Brownfields are lands that are not suitable for development due to the presence of 16 chemical or other contaminants. Brownfields are a major cause of blight within communities 17 across the state through loss of local tax base, jobs, housing quality, public safety and community 18 confidence. Revitalizing this land is costly and requires the cooperation of city, county, school, 19 regional, state and federal governments and the assistance of local economic development 20 organizations and citizens. As we move into an era where the mass creation of jobs is a necessity 18 League of Minnesota Cities 1 and where increased tax base is a requirement for local governments to adequately face growing 2 financial pressures,efforts to revitalize brownfields must not only continue but be accelerated in 3 the upcoming years. The 1997 legislature re-authorized $7 million for the Department of Trade 4 and Economic Development's (DTED) contaminated site clean-up fund and this amount was added 5 to the Department's base. Additionally, $6.2 million will now be appropriated annually from the 6 Petrofund to DTED to be used to clean petroleum-related contamination without the requirement 7 of an identifiable tank source. 8 Response: A comprehensive set of economic development programs must be maintained 9 for cities and other development agencies. The legislature should: 10 • increase funding for the Department of Trade and Economic Development's contaminated 11 site clean-up fund; 12 • act to strengthen enforcement and collection of revenues for the state contamination tax; 13 • continue support for and funding of local and regional programs to assist in the efforts to 14 remediate brownfields; 15 • establish a fully-funded program to allow cities and other development authorities to gain 16 control of and reclaim and revitalize brownfields; 17 • protect existing tax increment financing provisions that provide for the remediation of 18 brownfields and modify restrictions to allow the pooling of district revenues to assist in 19 the financing of remediation of brownfields; 20 • establish an indemnification fund to provide financial security for institutions and 21 individuals as they invest in efforts to recycle brownfields in order to leverage private 22 investment in cities' efforts to increase their tax base and create jobs; and 23 • continue the petrofund as a financing mechanism for cleaning contaminated sites. 1998 City Policies 19 1 LE-7. Growth Management and Annexation 2 Issue: Unplanned and uncontrolled urban growth has a negative environmental, fiscal, and 3 governmental impact for cities, counties, and state governments because it increases the costs of 4 providing government services and results in the loss of natural resource areas and prime 5 agricultural land. 6 Response: The League believes that the existing framework for guiding growth and 7 development primarily through local plans and controls adopted by local governments should 8 form the basis of a statewide planning policy and that the state should not adopt a mandatory 9 comprehensive statewide planning process. Rather, the state should: 10 • provide additional financial and technical assistance to local governments for cooperative 11 planning and growth management issues, particularly where new comprehensive plans 12 have been mandated by the legislature; 13 • clearly establish the public purposes served by existing statewide controls such as 14 shoreland zoning and wetlands conservation; clarify, simplify, and streamline these 15 controls; eliminate duplication in their administration; and fully defend and hold 16 harmless any local government sued for a "taking" as a result of executing state land use 17 policies; 18 • give cities broader authority to extend their zoning, subdivision, and other land use 19 controls up to two miles outside the city's boundaries regardless of the existence of county 20 or township controls, in order to ensure conformance with city facilities and services; 21 • clearly define and differentiate between urban and rural development and restrict urban 22 growth outside city boundaries; 23 • require the Metropolitan Council to seek cooperation from the State of Wisconsin and 20 League of Minnesota Cities 1 counties (both Minnesota and Wisconsin) surrounding the metropolitan area to ensure 2 responsible and controlled development, study expansion of Metropolitan Council 3 authority in surrounding counties, and examine the positive and negative impacts of 4 mandatory regional or local land use controls and state-imposed development standards; 5 and 6 • facilitate the annexation of urban land to cities by amending state statutes regulating 7 annexation to make it easier for cities to annex developed or developing land within 8 unincorporated areas. 9 LE -8. State and/or County Licensed Residential Facilities (group homes) 10 Issue: The need for more residential-based care facilities resulting from state policies makes 11 it clear that the state must also ensure there is sufficient funding to assure that residents living in 12 group homes and licensed facilities have appropriate care and supervision. In view of the 13 responsibilities cities have to accommodate group homes and residential-based facilities, it is 14 important that state and county units of government make every effort to work with local officials 15 to make sure that adequate care and public safety concerns are addressed. Cities must also be 16 aware of special care needed by group home residents in case of public safety emergencies. Since 17 operators of certain residential facilities and services are not required to notify cities when they 18 intend to purchase housing for this purpose, cities have insufficient opportunity to address special 19 care and public safety needs that these residences may require. 20 Response: The legislature should require state and county agencies which operate or 21 license companies that operate residential-based facilities notify cities in a timely manner and 22 allow opportunity for cities to respond regarding the status of facility license requests and 1998 City Policies 21 1 renewals and the special care needed by residents in case of public safety emergencies. 2 Legislation should also include provisions requiring establishment of non-concentration 3 standards and direction to avoid clustering residential facilities. Licensing authorities must 4 also be responsible for removing any residents_found incapable of living in such an 5 environment, particularly so they do not become a danger to themselves or others. 6 LE -9. Affordable Housing 7 Issue: Many families are unable to afford housing, and cities often lack resources at the local 8 level to provide housing for families or to develop housing alternatives for aging populations that 9 are within their means, particularly in smaller cities. The resulting circumstances limit economic 10 development and weaken the city's tax base. 11 In areas outside the five MSA regions,housing stock is aging and generally older than in more 12 urban locations. U.S. Census figures for 1990 indicate that more than 30 percent of housing units 13 in those areas were built prior to 1940, as compared with the high rate of new housing 14 construction within MSA locations, particularly in the twin cities metro area where 59 percent of 15 housing units built in the `80's are located. 16 Almost half the households in the state paying median rental housing costs exceeded the level 17 of affordability, according to the latest census. The ratio of housing affordability for low-income 18 renters is also increasing, raising more concern at the local level about the prospect that this 19 portion of the city population will be less likely to become homeowners. Older homeowners often 20 reside in housing that is affordable to first-time homebuyers, but often want to remain in their 21 homes as long as possible. By the time they do move, the property may have become run-down. 22 As a result, the home often becomes rental property with minimal improvements undertaken by 22 League of Minnesota Cities 1 the new owners. 2 Response: Federal, state, and local government must pursue policies which encourage 3 public-private partnerships to make it possible for cities, lending institutions, and developers 4 to initiate projects that meet local housing needs. The state should continue to provide grants 5 and loans from state revenue sources and streamline multiple MHFA-administered programs 6 to create a larger pool of state funding with more flexible criteria and guidelines to make it 7 easier for cities to apply for and make use of state housing assistance programs. The state 8 can also assist cities by establishing priorities for the use of those funds on the basis of state 9 housing policy for which cities and developers can apply based on their specific project 10 activities and locally determined objectives. 11 State housingpolicyshould focus more resources on preservation of existing housing stock 12 as an effective way to promote and retain affordable housing. More also needs to be done to 13 reduce the cost to older homeowners of moving into assisted living or other housing designed 14 for the elderly, such as patio homes and to match up first-time homebuyers with affordable 15 properties and to make more "fix-up" programs available at the local level. 16 Among the state-sponsored initiatives and policies the League supports to encourage 17 production of affordable housing are: 18 • exempting construction of low-income housing from the state sales tax; 19 • a state low-income housing tax credit program; 20 • making it easier for cities with affordable housing programs to use tax increment 21 financing or tax-exempt revenue bonds (IRBs); and 22 • exempting public agencies, including HRAs, from the state deed and mortgage transfer 23 tax. 1998 City Policies 23 1 Cities must also have sufficient local authority and the flexibility to undertake housing 2 projects to meet their unique housing needs and must be able to leverage federal and state 3 resources to do so. Bringing together crime prevention specialists and those working to 4 develop new affordable housing units should also be encouraged to improve access to 5 affordable housing while supporting neighborhood safety and community livability. 6 LE-10. City Role in Telecommunications 7 Issue: Cities are facing increasingly complex challenges in responding to and planning their 8 own telecommunications futures. Cities need support at the state and federal level to assure that 9 community residents, businesses and non-profit organizations benefit from the convergence of 10 electronic information technology, telecommunications, communications, video, and cable 11 television service delivery. 12 Response: Congress and the legislature should support and encourage local government 13 planning and authority to provide public services and assure the benefits of broadband' 14 telecommunications and wireless communications for their communities and residents by: 15 • making it easier for cities to own and operate telecommunications utilities, in part by 16 amending Minn. Stat. § 237.19 to authorize cities to construct and operate a telephone 17 exchange by a simple majority vote of its'electorate, rather than the current 18 supermajority vote of 65%; 19 • recognizing the changing nature of the public-private partnership in which multiple 20 providers may compete to deliver telecommunications services; 21 • upholding local authority to establish telecommunications policies and plans that respond 22 to community needs; 24 League of Minnesota Cities 1 • preserving city authority over matters directly affecting communities, including: 2 construction standards, permitting, installation methods, construction scheduling and 3 coordination, degradation of rights-of-ways, cost recovery, city use of telecommunications 4 resources for local public, education, government access and I-Nets; 5 • aiding cities to develop community-based information services so that residents with 6 limited income benefit from access to local and wide-area broadband networks and 7 information services; 8 • supporting local authority to require providers of open video systems to provide public, 9 educational and government access; 10 • making sure cities are allocated adequate spectrum on the 800 MHZ radio frequency for 11 public safety and emergency response. 12 Cities are encouraged to: 13 • develop a telecommunications plan identifying community priorities and values and 14 setting forth how the city intends to encourage competition in the local market while 15 ensuring taxpayer investment in public infrastructure is protected; 16 • determine how to implement new federal and state telecommunications laws and 17 regulations to create conditions to attract telecommunications to make them widely 18 available to city residents and businesses; 19 • examine current ordinances to take into account how to respond to multiple requests to 20 install wireline communications or to erect cellular, personal communications service 21 (PCS) and other wireless communications towers and antennas; 22 • treat all providers on a neutral and nondiscriminatory basis; 23 • seek broad access to advanced telecommunications services including bandwidth and 1998 City Policies 25 1 spectrum for public safety and emergency response; 2 • provide for institutional networks (I-Nets) through cable franchise agreements with local 3 operators to acquire a portion of a broadband network and other advance 4 telecommunications resources; 5 • consider installing city-owned and operated broadband networks or forming,partnerships 6 to do so where the marketplace fails to provide the infrastructure and/or services; 7 • ' investigate and develop applications for those networks to deliver public services using 8 advanced telecommunications; 9 • take an inventory of unused, underused and/or abandoned conduit in the right-of-way, in 10 easements, or on city-owned property to make use of those resources in developing needed 11 local information infrastructure. 12 LE-11. Redesign of Electric Utility Regulation 13 Issue: Policymakers at the state and federal levels are considering ways in which to bring 14 competition into the electric utility industry. Without a cautious approach which incorporates 15 careful consideration of the implications of any deregulation scheme for all consumers of electric 16 energy, it is possible that only the largest consumers of electric energy would experience true cost 17 savings and other benefits often associated with competition while the small customers, individuals 18 and small businesses, may actually see rate increases. Additionally, city interests in tax base 19 stability and managing and obtaining compensation for the use of public rights of way by utility 20 companies are often overlooked in electric utility restructuring discussions. 21 Currently, the discussion regarding possible deregulation of the electric power industry in 22 Minnesota has centered on electric utility taxation. Proponents of deregulation assert that if 26 League of Minnesota Cities 1 effective free market competition is to replace governmental regulation, state tax policy must be 2 changed to ensure competitive parity among both intrastate and interstate producers. The main 3 focus of the Investor Owned Utilities (IOUs) so far has been removal of the attached machinery or 4 personal property tax. Utilities subject to the tax argue that it places them at a competitive 5 disadvantage to non-Minnesota companies as well as Minnesota Rural Electric Cooperatives (Co- 6 ops) and Municipals. However, accurate comparisons of tax burden are difficult, as other states 7 use completely different taxing systems. Additionally, Co-ops do pay the tax on some of their_ 8 property and Municipals make substantial payments in lieu of taxes. 9 Utility personal property can be a significant portion of the local tax base in all cities. Most 10 obviously affected are cities that have power plants. However, generation and transmission 11 equipment accounts for over half of the personal property taxes paid by the IOUs, and exists in 12 nearly every city. Replacing the revenue that would be lost by cities, counties, school districts, 13 and other local taxing jurisdictions is a stated goal of the IOUs; however, the mechanics and 14 funding source of such a replacement revenue would be difficult to develop and administer, and 15 would be subject to reduction or elimination over time. 16 Response: A cautious, deliberative approach to restructuring the electric utility industry 17 is necessary to preserve the level of service to which Minnesota consumers of electric energy 18 have become accustomed. Additionally, it is crucial that cities have a place at the table in 19 deregulation discussions and that they retain their local authority to manage, and obtain 20 compensation for, the use of public rights of way, and that neither cities nor their taxpayers 21 are asked to shoulder the burdens of any tax relief provided IOUs. Finally, every effort 22 should be made to ensure that additional responsibilities and financial burdens are not 23 shifted to the local level. 1998 City Policies 27 • 1 LE-12. Adequate Funding for Transportation 2 Issue: Current funding for roads and for transit systems across all government levels in the 3 state is not adequate. 4 Response: Minnesota should value, and adequately fund, all transportation systems in the 5 state. The state needs to provide an objective basis to determine the complete needs of the 6 road and transit systems, their present condition, and their impact on the economic health of 7 the state. This should include acknowledgment that delaying current expenditures will 8 increase costs in the future. The League of Minnesota Cities supports an increase in the gas 9 tax and urges removing the existing restrictions on its use so that gas tax revenues can be 10 used for all transportation projects and programs, not just road construction and 11 maintenance. The legislature should institute additional revenue sources that can be 12 dedicated to all transportation programs. Cities should receive revenues necessary to meet 13 present and future transportation needs. If funding does not come from the state, cities 14 should have funding options available to them to raise the dollars necessary to adequately 15 fund roads and transit. 16 With the exception of funding for the state patrol, all nontransportation programs should 17 be funded from a source other than the highway user distribution fund. The revenues of the 18 highway user distribution fund are collected from transportation users and should be 19 dedicated to transportation-related services. 20 LE-13. State Aid for Urban Road Systems 21 Issue: Current rules governing municipal state aid expenditures are restricting the efficient use 28 League of Minnesota Cities 1 of these funds and do not adequately acknowledge the constraints of road systems in urban city 2 environments. 3 Response: Rules affecting the municipal state aid system need to be changed to 4 acknowledge the technical and practical restrictions on construction and reconstruction of 5 urban road systems. New municipal state aid design standards should not apply to 6 reconstruction of existing state aid streets that were originally constructed under different 7 standards. Future changes to state aid rules should ensure the involvement of elected officials 8 and engineering professionals in the decision-making process. 9 LE-14. State Aid Roads in Contiguous Cities Under 5,000 10 Issue: Cities under 5,000 population do not receive any nonproperty tax funds for their collector 11 and arterial streets. 12 Response: State statute should be modified to encourage cooperation and improved 13 transportation systems by allowing contiguous cities that jointly represent a combined 14 population of 5,000 or more to be eligible for Municipal State Aid (M.S.A.). Participating 15 cities would enter into a formal joint powers agreement and establish a joint budget that would 16 be governed by a board of elected officials. Cities that participated in this joint entity would 17 not be required to undertake any formal consolidation activities. 18 Cities under 5,000 population that were not eligible for M.S.A. through this cooperative 19 agreement practice should be able to use county municipal accounts and the five percent 20 account of the highway user distribution fund. 21 Uses of county municipal accounts should be statutorily modified so that counties can 22 dedicate these funds for local arterials and collector streets within cities under 5,000 1998 City Policies 29 1 population. In addition,the five percent set-aside account in the highway user distribution 2 fund should be used to meet this funding gap. 3 LE-15. Turnbacks of County and State Roads 4 Issue: As road funding becomes increasingly inadequate, more roads are being "turned back" to 5 cities from counties and the state. 6 Response: Turnbacks should not occur without direct funding or transfer of a funding 7 source. A process of negotiation and mediation should govern the timing, funding,and 8 condition of turned-back roads. City taxpayers should receive the same treatment as township 9 taxpayers. The requirement for a public hearing,standards about the conditions of turnbacks, 10 and temporary maintenance funding should alsoapply to county turnbacks to cities. At a 11 minimum,proposed roads to be turned back to a lower government level should be brought up 12 to the standards of the receiving government or should be compensated with a direct payment. 13 Direct funding should be provided for smaller cities that are not provided with turnback 14 financing through the municipal state aid system. 15 LE-16. Cooperation Between Counties and Cities Over County Roads Within 16 Cities 17 Issue: Some counties want increased control over county roads that lie within city boundaries. 18 The statutory mechanism for resolving disputes between counties and cities over the construction, 19 reconstruction, or expansions of state-aid highways that extend within city corporate limits is 20 inadequate. Under current law, only the county may request that a dispute resolution board 21 ("board") be established and the board's role is not to assist the parties in attempting to resolve their 30 League of Minnesota Cities 1 dispute. Instead,the board has the authority only"to review the propose change,and make a 2 recommendation to the Commissioner." It is the Commissioner of Transportation who ultimately 3 makes the final decision on whether to"approve the establishment, construction, reconstruction, or 4 improvement of a county state-aid highway recommended by the board." The statute does not 5 outline any formal due process that must be followed to ensure fairness to all parties. Additionally, 6 there is no mediation or non-binding arbitration prerequisite as exists in other areas of law dealing 7 with dispute resolutions. 8 Response: The Legislature should provide a mediation or non-binding arbitration 9 alternative to assist parties in reaching a resolution on their own without involving the 10 Commissioner. Additionally,to ensure that sound recommendations are made by dispute 11 resolution boards,formal due process and specific criteria should be established. For 12 situations where negotiations do not produce an agreeable resolution, cities should be 13 authorized to request that a board be established. 14 LE-17. Management of Rights-of-Way 15 Issue: Demand for all types of uses of rights-of-way, both surface and subsurface, is increasing 16 exponentially, forcing consideration by cities of how best to allocate this very limited resource. 17 Because public rights-of-way have been acquired at public expense through local property tax 18 sources or other local action, cities have traditionally had the fundamental responsibility and 19 attendant liability for facilitating the safety and convenience of all right-of-way users. Rights-of-way 20 management responsibilities are complex, numerous, and site specific, as are the particular interests 21 of cities in establishing a value for private use of public space in the local rights-of-way. These 22 factors underscore the fact that rational and expeditious decisions can only be made at the local level. 1998 City Policies 31 1 Cities support existing federal nondiscrimination requirements that local administration not 2 impose unreasonable delays or burdens on access, entry, or other reasonable use of rights-of-way. 3 Cities should be authorized, as provided in federal law, to require telecommunications providers to 4 meet local requirements for public, educational, and government access to their networks as well as 5 financial and technical support for such actions. 6 Local rights-of-way are a limited and valuable asset held in trust by municipalities for the public. 7 Unlike other businesses which pay for the use of public rights-of-way, telephone companies 8 currently pay property taxes only on a fraction of their facilities located in public rights-of-way and 9 nothing for the value of the right to use them. 10 Response: 11 • The responsibility for managing and protecting public rights-of-way must remain`with 12 cities and other units of government entrusted with protecting the health,safety,and 13 convenience of the community. 14 • Construction and safety standards are of paramount importance to cities,and consistent 15 with respective industries' desire for uniformity,should be developed by the municipal 16 engineering community for adoption by cities to ensure effective rights-of-way 17 management. 18 • Cities and other governmental units responsible for the protection and management of 19 public rights-of-way should be authorized to require reasonable compensation which 20 reflects the policy and fiscal objectives of their community. 21 • The courts should remain the primary forum for resolution of allegations that communities 22 have exercised their authority in an unreasonable, arbitrary, or capricious manner. 32 League of Minnesota Cities 1 LE-18. Communications Infrastructure 2 Issue: Cities must retain authority to provide for development of effective local information 3 infrastructure including public, educational, and government(PEG) access channels and institutional 4 networks. Sufficient technical and financial support from telecommunications service providers is 5 necessary to assure that both traditional and advanced services and applications, including both 6 wired and wireless telephony, video, data and Internet services as well as PEG access are locally 7 available. 8 Response:The legislature should support local authority to develop,own, and operate 9 information infrastructure and services to require that voice,video,and data communications 10 networks provide channel spectrum and resources sufficient to meet local information and 11 communications needs,assure public safety and convenience,and provide local information 12 and community programming and services. 13 LE-19. Effective Telecommunications Competition 14 Issue: Effective telecommunications competition will not arrive simultaneously in all cities or 15 markets. In the transition to an effectively competitive marketplace,which will yield better services, 16 affordability and deployment of technology to meet community needs, consumers need protection 17 from possible market abuses. 18 Response: Federal, state, and local governments must coordinate efforts to protect 19 consumers and encourage emergence of effective competition to make it possible for 20 communities to participate in the global economy through a local information infrastructure 21 that provides benefits to residents, business, and industry. 1998 City Policies 33 1 LE-20. Local Zoning Regulation of Telecommunications Service Providers 2 Issue: Cities must have authority to govern the use of property by telecommunications service 3 providers through zoning regulations without unnecessary state and federal intervention. 4 Response: The Federal Communications Commission and the state legislature should 5 continue to uphold local government authority to adopt and enforce local zoning regulations of 6 telecommunications service providers as reaffirmed in the federal Telecommunications Act of 7 1996. 8 LE-21. ISTEA Reauthorization 9 Issue: Cities have an important stake in the reauthorization of the federal Intermodal Surface 10 Transportation Efficiency Act(ISTEA). Since its'enactment in 1991, ISTEA has assured cities of a 11 key role in planning as well as benefits of funding for project enhancements and pollution 12 mitigation. ISTEA expires on September 30, at the end of this fiscal year. ISTEA has been 13 successfully implemented in Minnesota,with a strong focus on partnerships, local decision-making, 14 funding flexibility and emphasis on inter-modal transportation. 15 Response: Congress should reauthorize ISTEA this session to continue support for the new 16 era of transportation investments in which cities can work cooperatively with the Minnesota 17 Department of Transportation (MnDOT) to address local and regional transportation 18 interests. Putting in place locally developed criteria to evaluate programming of limited funds 19 has opened MnDOT programming to recognize regional priorities. Enhanced ISTEA 20 reauthorization will allow cities to continue to work within the current planning process to 21 address transportation needs. 22 The amount of ISTEA funding in the existing congressional and administration budget 34 League of Minnesota Cities 1 allocations does not meet growing needs. Trust fund revenues should be used solely for 2 transportation purposes, and the federal gas tax revenues should be transferred to the 3 Transportation Trust Fund (instead of being used for deficit reduction). 4 Regional planning is a strong component of the current ISTEA program. Congress should 5 support and encourage broadening the federal-state-local partnership and community 6 participation in transportation decision-making. 7 All program categories in the existing ISTEA program should be maintained, in particular 8 the Surface Transportation Program (STP),Transportation Improvement Program (TIP), 9 Enhancement and Safety,transit,Congestion/Mitigation Air Quality(CMAQ), and the 10 National Highway System(NHS) and Bridge Replacement programs. 11 Congress can aid local project implementation by reducing unnecessarily burdensome 12 regulations and procedures,particularly for small projects for elements that have little if any 13 negative effects on the environment. There is also a need to examine the relationship between 14 the metropolitan MPO boundary and U.S. Census boundaries of the Twin Cities Metropolitan 15 Statistical Area (MSA). The MPO in the metro area needs to recognize the broad regional 16 implications of transportation in the 7 counties within Minnesota and the two counties in 17 Wisconsin that are within the MSA. 18 IMPROVING SERVICE DELIVERY 19 SD-1. Redesigning and Reinventing Government 20 Issue: Every level of government is reevaluating,reprioritizing, redesigning, and renewing its 21 organizational structure and programs in response to financial realities and citizens' needs and 1998 City Policies 35 1 problems. Reforms, however,must be more than simply change for the sake of change or a 2 reshuffling of existing programs to appease the electorate. To be meaningful, reorganization and 3 reassignments of governmental entities and services should save money where feasible, deliver 4 improved services, serve essential needs and be equitably structured. Cities have and will continue 5 to pursue the use of cooperative agreements,the reevaluation of city programs and services, and 6 changes to organizational structures. 7 Response: The federal,state, and county governments should: 8 • ensure that in redesigning, reinventing or reassigning government services and programs 9 that the appropriate level of service to citizens is evaluated and citizen demands and 10 expectations are adequately addressed; 11 • promote local efforts through incentives rather than mandates; 12 • communicate and establish a process of negotiation before shifting responsibility for 13 delivering services from one level of government to another or seeking to reduce service 14 duplication; 15 • transfer authority for use of revenues dedicated to such programs or provide appropriate 16 and adequate alternatives; 17 • identify and repeal programs or discontinue services which are no longer necessary or 18 which can readily and fairly be provided by the private sector; and 19 • employ existing government entities in redesign efforts rather than create new agencies or 20 units: 21 The League supports cooperative studies of the following issues: 22 • whether the enforcement of human rights laws can best be accomplished by a single state 23 system which would allow local governments to discontinue local enforcement programs; 36 League of Minnesota Cities • 1 • whether there should be greater use of statewide or consolidated business licensing, 2 including licensing of sign contractors, to eliminate the need for some businesses to obtain a 3 permit in each city or county; 4 • whether the existing use and structure of Regional Development Commissions can be 5 improved; 6 • whether greater use can be made of block grants to distribute funds related to 7 transportation,sewage treatment, and public water facilities; 8 • whether human services and health programs can be improved by further consolidating 9 their administration at the state and county levels of government; and 10 • whether state and federal environmental and water agencies can be combined or 11 eliminated to avoid inconsistent standards and duplication of responsibilities. 12 SD-2. Unfunded Mandates 13 Issue: The cost of federal and state mandated programs substitute the judgment of Congress and 14 the President and the legislature and the Governor for local budget priorities. These mandates force 15 cities to reduce funding for other basic services or to increase taxes and service charges. The passage 16 by the legislature of reporting requirements for new state mandates and the passage by Congress of 17 legislation restraining new federal mandates should help address the problem,but other steps are still 18 necessary. 19 Response: 20 • Existing unfunded mandates should be reviewed and modified or repealed where possible. 21 • No additional statewide mandates should be enacted unless full funding for the mandate is 1998 City Policies 37 1 provided by the level of government imposing it or a permanent stable revenue source is 2 established. 3 • Cities should not be forced to comply with unfunded mandates. 4 • `Cities should be given the greatest flexibility possible in implementing mandates to ensure 5 that their cost''is`minimized. ` 6 SD-3. Civil Liability of Local:Governments 7 Issue: One of the barriers to the delivery of governmental services and programs is the exposure 8 of local governments and their officials to civil damage claims. The state has acted to protect itself 9 and its local governments by enacting exceptions and limitations to liability suits and authorizing 10 self-insurance and other mechanisms to deal with claims allowed by law. Additionally,the current 11 law which requires district court approval of settlements of claims against municipalities which 12 exceed$10,000 has become burdensome for cities. 13 Response: The League supports: 14 •` eliminating joint and several liability,or severely restricting its application to situations 15 where private or public tortfeasors are substantially at fault for the damages incurred; 16 • extending the protection of the state and municipal tort claims act to quasi-governmental 17 entities when performing public services such as firefighting; 18 • existing constitutional safeguards for protecting public and private property interests 19 without any statutory expansion of property rights; and 20 • eliminating the district court approval of settlements requirement or,in the alternative, 21 increasing the threshold amount for district court approval of settlements to $100,000. 38 League of Minnesota Cities I SD-4. Environmental Protection 2 Issue: State and federal environmental programs are improperly designed to meet their 3 stated goals, and impose an undue burden on local governments because of a lack of federal or 4 state financial assistance. The refusal to finance these programs by the governments which pass 5 them has eliminated an essential restraining feature in program design and implementation. 6 Specific problems include: 7 • New programs or standards are continually adopted without regard to the existence, 8 attainability, or cost of existing programs and standards. 9 • Fragmented program adoption and implementation does not ensure prioritization of 10 environmental matters or the establishment of comprehensive environmental protection 11 strategies. 12 • "One size fits all" implementation programs force remedial efforts by local governments for 13 nonexistent environmental problems. 14 • Permit fees and other cost transfer elements of federal and state programs do not provide an 15 incentive for environmental agency efficiency, policy prioritization, or risk assessment. 16 Response: 17 • A comprehensive effort to consolidate, reorganize, and manage state and federal 18 environmental agencies and programs should be undertaken and a partial or full 19 moratorium on new programs or requirements should be considered. 20 • Permit fees should be limited to fifty percent of the agency's direct operating costs in 21 order to promote efficient agency operation and sufficient legislative oversight. 22 • Sufficient state and federal financial assistance should be provided to comply with state 1998 City Policies 39 1 and federal infrastructure requirements,particularly with regard to sewer and water 2 facilities. 3 SD-5. Personnel., Pensions, and:Labor,Relations- 4 Issue: Many state laws increase the cost of providing city service to residents by requiring • 5 city governments to provide certain levels of compensation or benefits to public employees, 6 specify certain working conditions, or limit city governments' ability to effectively manage their 7 personnel resources. For instance, existing state laws limit governments' ability to effectively 8 address incompetence or misconduct of city employees specifying certain procedures to be 9 followed or standards of conduct. 10 Response: The state governmentshould refrain from passing laws which regulate the 11 public sector workplace and should repeal=or modify problematic existing laws and 12 regulations to encourage full local accountability. 13 The League of Minnesota Cities proposes the following reforms: 14 Discipline and Discharge 15 • The state should modify veterans' preference and civil service laws which restrict the 16 ability of local governments to effectively discipline public employees. The legislature 17 should amend the law to: 18 • remove the right to multiple, duplicative disciplinary proceedings; 19 • limit any back-pay claims to a maximum of$100,000, and; 20 • limit the period in which to request a hearing to 14 days (from the current 60 days). 21 • The state should discontinue state and local civil service systems which are no longer 40 League of Minnesota Cities 1 needed to ensure fair and accountable hiring and firing practices. 2 Data Practices 3 • In light of security concerns, the state should amend the data practices act to reclassify all 4 employee address and telephone data as private data. 5 • The Information Policy Task Force created by the 1997 legislature should consider the 6 impact of potential changes to the data practices act, particularly the commercial use and 7 sale of government information, on local units of government and take these into account 8 in any recommendation for legislative action. 9 Compensation limits 10 • The state should repeal laws limiting local government employee compensation levels to 11 the governor's salary. If repeal is not possible, the limit should be amended to be based 12 upon the governor's total compensation level. 13 PELRA 14 • The state should modify the definition of public employee to limit the application of 15 PELRA to employees working more than an annual average of 20 hours per week other 16 than on a temporary or seasonal basis. 17 • The state should change public sector bargaining laws to restrain arbitration awards 18 which exceed other internal class comparisons or outside cost of living limitations. 19 • The State should modify the definition of public employee to exclude police and fire 20 cadets. 21 Pensions 22 • The state should revise public employee pension laws to facilitate consolidation of local 1998 City Policies 41 1 SD-8. City Costs for Enforcing State and Local Laws 2 Issue: Cities experience substantial costs enforcing state and local laws, particularly those related 3 to traffic, controlled substances, and incarceration of prisoners. The current method in our criminal 4 justice system of recovering costs for law enforcement and prosecution through fines is insufficient 5 to meet the costs incurred by local governments. 6 Response: The legislature should review this issue and adopt measures that provide for 7 complete reimbursement of the costs incurred by local governments in enforcing state and 8 local laws. Solutions which should be considered include the following: 9 • increasing fine amounts; 10 • removing or modifying state surcharges which conflict with cost recovery principles; and 11 • requiring the defendant to pay the full costs of enforcement and prosecution as part of any 12 sentence. 13 SD-9. Access to Information Technology and Services 14 Issue: Congress and the state legislature should continue to provide a meaningful role for cities 15 in developing and supporting access to information technology and services. 16 Response: The legislature should: 17 • enhance opportunities for cities to collaborate with community organizations,schools, 18 libraries, and nonprofit organizations and telecommunications service providers to make 19 training and advanced services available to community residents; 20 • take steps to ensure that businesses have access to advanced broadband networks; 21 • provide grants and technical assistance to encourage cities to expand use of information 44 League of Minnesota Cities 1 technology to provide citizen access to government information and deliver services; 2 • monitor telecommunications service providers' compliance with requirements to make 3 public access to information available at a discount; 4 • encourage providers to make capacity for interactive forums available at the local level to 5 increase citizen participation in government; 6 • encourage expanded use of interactive teleconferencing,public access channels,and public 7 broadcast facilities to provide public access to government meetings; and 8 • support federal,state,and local authority to charge providers of cable and cable-like 9 services reasonable fees to support that capacity. 10 SD-10. Lawful Gambling Fund Expenditures 11 Issue: State law authorizes cities to collect up to 10 percent of the net profits from lawful 12 gambling operations conducted within their jurisdictions. These funds must be maintained in a 13 separate account and can be spent only for "lawful purposes." These purposes are defined in 14 statute more narrowly than the permissible public purpose expenditures for charitable 15 contributions to cities. The Gambling Control Board has the authority to demand that cities make 16 repayment to the fund for expenditures it deems out of compliance with the statutorily permitted 17 lawful purpose expenditures. 18 Response: Cities are in the best position to determine the use of funds that will bring the 19 most benefit to their citizens. The legislature should expand the permissible lawful gambling 20 fund expenditures to include any public purpose deemed appropriate by the city. 1998 City Policies 45 • 1 SD-11. Design-build 2 Issue: The standard bid procedure cities are required to use in selecting contractors for 3 municipal buildings can,be.quite costly. Private sector development uses a process known as 4 "design-build" in which various firms submit project proposals that include both a design and the 5 construction costs for that design. The selection is then based on the total package. By granting 6 specific statutory authority to use.the,design-build alternative to the Metropolitan Sports Facilities 7 Commission and state agencies including the Department of Revenue, the legislature has 8 recognized the financial savings it can provide. In documented instances, cities have saved 9 taxpayers up to 10 percentof the total;project cost by using the design-build alternative. The 10 design-build process also permits improved project management and oversight. However, absent 11 statutory authorization to use this alternative, cities are vulnerable to lawsuits from unsuccessful 12 bidders. In addition, the design-build process for playground equipment can encourage greater 13 creativity while still maintaining cost controls. Special legislation was enacted for the City of 14 Chanhassen in 1995 to experiment with using this process for purchasing playground equipment. 15 Response: The legislature should authorize an extension of the "design-build" procedure 16 to cities as a less expensive alternative to the standard bid.procedure. 17 SD-12. Mobile Home Park Oversight 18 Issue: The State has preempted cities in the licensing of mobile home parks and has 19 limited the authority of cities to place new regulations on established mobile home parks. 20 However, cities are responsible for dealing with the various housing and public safety challenges 21 mobile home parks may create. 46 League of Minnesota Cities 1 Response: Since the State has already taken the lead, the legislature should provide 2 sufficient resources and direct the Department of Health to conduct a study on the condition 3 of mobile home parks throughout the State of Minnesota. Cities and mobile home park 4 owners and residents should be involved in the study. The results of the study should be used 5 as a basis for policy discussions regarding ways in which the State can provide for increased 6 and improved oversight of mobile home parks and establish a statewide support system for 7 cities to rely on in dealing with the array of issues that arise in mobile home parks. 8 Outcomes of the study should include: 9 • "best practices" for the operation of mobile home parks; 10 • recommended state regulatory changes for the operation of mobile home parks; 11 • suggested ways cities can better address the issues presented by mobile home parks; and 12 • identification of mechanisms to provide assistance in financing mobile home park 13 upgrades. 14 SD-13. Proposed Plat Approval Authority 15 Issue: Current law generally grants cities the authority to approve proposed plats as part of 16 their police power responsibilities for regulating development. Certain counties want legislative 17 authorization to approve proposed plats which are contiguous with existing or proposed county 18 roads. 19 Response: Cities oppose extending county authority over plat approval. While counties 20 have a valid interest in proposed plat decisions, this does not warrant a duplication of 21 approval authority. An informal process of county review with the opportunity to offer 1998 City Policies 47 1 comments and suggestions for improvement is an appropriate cooperative mechanism'which 2 is already in place and working well in many areas of the state. 3 SD-14'. Providing Information to Citizens 4 Issue: To keep the public updated and informed, state law requires local units of government 5 to publish various notification documents in newspapers and often dictates which newspapers • 6 receive cities' publication business. The number and variety of documents required to be 7 published and the costs of publication are burdensome. Technological advancements have 8 expanded the ways in which government can provide information to citizens. In many cases, 9 these new technologies are more efficient and cost effective. 10 Response: Cities should be authorized to take advantage of new technologies to increase 11 the dissemination of information to citizens and potentially lower the associated costs. 12 Specifically, the legislature should authorize local units of government to designate an 13 appropriate daily/weekly publication, elect alternative means of communication such as city 14 newsletters,cable television, and the internet, and expand the use of summaries where 15 information is technical or lengthy. Additionally, the legislature should eliminate outdated or 16 unnecessary publication requirements. 17 SD-15. Creating a Minnesota GIS Program 18 Issue: Cities need Geographic Information Systems(GIS). Although only forty-five cities have 19 parcel-based GIS, this improved method of local land record management is already paying 20 tremendous dividends to those with access to the technology, but it is costly and difficult to create, 48 League of Minnesota Cities 1 maintain, and upgrade. Cities face serious obstacles to modernizing land records when maps, survey 2 controls, and electronic records management do not exist at the county level. Without state 3 investment to help local government modernize land management records,development of GIS will 4 continue to fall behind,with costly results for residents and taxpayers in those locations where land 5 parcel data is not organized. A seamless land records database would encourage sustainable land-use 6 planning at both the state and local level. 7 Response: The League endorses the recommendations put forth by the Governor's Council 8 on Geographic Information to establish and fund a Minnesota GIS Program to provide 9 technical support and funding for local government development of GIS. 10 SD-16. State Licensing of Massage Therapists 11 Issue:The state does not currently regulate massage therapy, an emerging but rapidly growing 12 profession. In order to control prostitution and to provide for health and sanitation standards, several 13 cities have entered the traditional state domain of health-care licensure by enacting ordinances that 14 require all massage therapists to obtain a local professional license. These ordinances allow local 15 law enforcement officers to differentiate between legitimate massage therapists, who have a city 16 license, and prostitution businesses fronting as massage therapy establishments. The lack of 17 statewide licensing of massage therapists has hampered law enforcement techniques and has caused 18 problems for cities attempting to regulate an entire health-care profession without any statewide 19 standards. Currently, twenty-five states license massage therapists on a statewide level. Statewide 20 licensing of massage therapists would provide a clear set of educational standards that massage 21 therapists must meet and would provide local law enforcement agencies with an easy tool to 22 distinguish between prostitution and legitimate massage therapy. Statewide professional licensing 1998 City Policies 49 1 would not disturb traditional powers over land use and business licensure: 2 Response:The League supports the statewide professionallicensing of massage therapists 3 in order to aid local law'enforcement efforts at controlling prostitution and other criminal 4 activity. 50 League of Minnesota Cities CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: City Employee Section 125 "Cafeteria"Plan DATE: October 31, 1997 INTRODUCTION: The Council has asked to consider the establishment of a section 125 "cafeteria"benefits plan for City employees. BACKGROUND: Internal Revenue Service has a program which,under specific circumstances,will allow payments for unreimbursed medical expenses, and dependent care expenses,to be paid on a `dire-tax"basis. The advantage to the employee is that those expenses are shown as a reduced amount on the W-2 form,thus resulting in potentially hundreds of dollars of savings to the employee, depending upon their usage. There are requirements that must be adhered to by the participant,which, if not followed, may result in some penalties; overall,however, if used correctly, it can be a significant advantage to the employee. Conversely,because it is a reduction in wages paid,there may be some reduction in the amount of employee taxes paid by the City. City staff is meeting with representatives of one of the potential providers on November 3rd for further information. If possible,we would like to have Council consider this at the November 5th meeting, as it would be important to set this up during December for the 1998 calendar year. Background information is attached. BUDGET IMPACT: There are administrative fees for this program. Those will be researched and a recommendation in terms of funding this will be made at the November 5th Council meeting. RECOMMENDATION: At the November 5th meeting,the Council should consider to the information presented on the cafeteria plan, and give direction as to whether this is something in which the City would be interested. ACTION REQUIRED: Direction from Council regarding establishment of a cafeteria plan for City employee is desired. Mark McNeill, City Administrator Fully Flexible Benefits Plans Fully Flexible Benefits Plans Fully flexible benefits plans enable employees to design a full-scale benefits program that meets their personal needs by choosing the benefits they required from an array of available options. Fully flexible benefits plans are generally designed to comply with the requirements of Internal Revenue Code (Code) Section 125; in so doing, they represent a type of cafeteria plan. A Fully Flexible Benefit Plan offers employees significant choices in the types and levels of coverage available to them. From an array of options, employees select the benefits package that best meets their needs, based on their lifestyle and ability to contribute to the cost of the options they choose. Fully flexible benefits plans incorporate "qualified benefits" into their menu of options. As defined in Code Section 125, qualified benefits include the following types of benefits: 1. Health and accident coverage, including medical, vision, prescription drug, dental, long and short-term disability, and accidental death and dismemberment plans [IRC •§§ 105, 106]; 2. Group term life insurance coverage up to and in excess of $50,000 (the amount excludable from taxable income under IRC § 79); 3. Dependent care assistance plans, which reimburse employees for certain dependent care expenses that are necessary so that the employee and the employee's spouse can work or look for work. 4. Cash or deferred arrangements [IRC § 401(k)]. There are various ways in which Employers can present a fully flexible array of benefits to employees. These "models" include the following approaches: • Modular—provides comprehensive benefits packages • Core-Plus—consists of a basic level of benefits and also enables employees to select additional benefits. (' (.r.,(' /)c 6 / • 1' Net or traditional—consists of a baseline benefits program. Depending on the choices employees make, they may receive cash back because they selected a lower net benefit (a less costly benefit), or they may pay more because they selected a higher net benefit requiring an additional salary reduction. / • Credit-based—Employees receive credits to spend as they choose. Should Employers offer Fully Flexible Benefit Plans? From the Employer's vantage point, there are both cost management and employee relations reasons for offering a Fully Flexible Benefit Plan. The economic value of a Fully Flexible Benefit Plan is that it can be used to control or to contain the cost of employee benefits programs. By separating the levels of protection defined in the benefit from the cost of the benefit, Employers can define the level of contribution they are willing or able to make and accomplish the following objectives: 1 Fully Flexible Benefits Plans 1. Fix their annual benefits costs contribution as either a flat dollar rate or a percentage of payroll; 2. Relate benefit expenditure costs to Employers's productivity or profits; 3. Introduce new benefits at no costs to the company. 4. Control which benefit options are available; and 5. Manage employees' selection of benefits by controlling the price of each benefit being offered. Fully flexible benefits plan provide options and choices to employees that they would not otherwise have and these are of considerable value in attracting and retaining high- quality employees; and Fully flexible benefits plans are considered by many to be an enlightened benefits delivery vehicle that is of considerable value in attracting and retaining high-quality employees for organizations that view themselves as providing progressive benefits programs. Administrative Complexity Fully flexible benefits plans offer employees the mdst flexibility and choice. These plans are also the most complex type of flexible plan to administer for several reasons. Through Fully Flexible Benefit Plans, employees are allowed to select from various types of health and welfare benefit coverages. The administrative complexity of the plan increases in direct proportion to the number of different options offered by the plan, since Employers must provide a method for tracking employees' election. Excluded Benefits Code Section 125(f) specifically excludes several tax-favored employee benefit plans from being components of a cafeteria plan. Among these are the following: 1. Scholarships and fellowships [IRC § 117]; 2. Meals and lodging [as defined in IRC § 119]; 3. Van pooling [IRC § 124]; 4. Educational assistance programs [IRC § 127]; and 5. Fringe benefits plans such as qualified employee discounts; working condition benefits such as subsidized cafeteria-style employee restaurants; and de minimis fringe benefits such as transportation subsidies. {IRC § 132] Size of Employers Offering Fully Flexible Benefits A survey of 850 companies reported that 50 percent of large firms (5,000 or more employees) have Fully Flexible Benefit Plans in place; 37 percent of mid-sized firms (1,000 to 1,500 employees); and 22 percent of smaller firms (fewer than 1,000 employees). 2 Fully Flexible Benefits Plans Contributions A Fully Flexible Benefit Plan may be funded in one of several ways: 1. Nonelective employer contributions; 2. Pretax employee contributions; 3. After-tax employee contributions; and 4. Using all or some combination of the above. Adverse Selection Adverse selection means that the plan participants select against the program by choosing only those benefits that they are likely to use or exchanging the benefits they are least likely to use for cast or other benefits. Depending on the coverage type (medical, dental, vision, disability, life) and each individual's particular situation, a plan participant chooses his or her own utilization of a particular benefit. Naturally, employees who have had heart attacks will tend to buy more life insurance than those who have not, speculating the they are likely to use it. Adverse selection is not problematic, but it is an issue that must be dealt with through design or pricing solutions. 3 # CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Closed Session-November 5th Meeting DATE: October 29 1997 The Council will be asked to go into closed session for the purpose of discussing two items: 1. Labor negotiation strategy 2. Pending litigation Q & % Mark McNeill City Administrator MM:tw CITY OF SHAKOPEE Memorandum TO: Mayor and City Council - Only FROM: Mark McNeill, City Administrator SUBJECT: Closed Session -November 5th.Meeting DATE: October 29, 1997 We have two items to discuss in a closed session: 1. Labor Negotiations - The existing three year contract with the 3 member police sergeants' union expires at the end of this year. I have met with the union steward and business agent,who presented the attached list of proposals. I will review these with you, and will have some costs at that time. 2. Pending Litigation -Link vs. City of Shakopee We will need to discuss this with members of the Council that are not otherwise involved in this suit. Attorney George Hoff will be present for this discussion. Mark McNeill City Administrator MM:tw SCOTT COUNTY #1111 OFFICE OF THE ADMINISTRATOR COURTHOUSE 110 = 428 HOLMES STREET SOUTH SHAKOPEE, MN 55379-1382 (612)496-8100 DAVID J. UNMACHT Fax: (612)496-8180 COUNTY ADMINISTRATOR dunmacht@co.scott.mn.us http://www.co.scott.mn.us November 3, 1997 Mr. Larry Morrin Acting Area Director United States Department of Interior Bureau of Indian Affairs 331 South 2nd Avenue Minneapolis, Minnesota 55401 Re: The Application for the Placement of Land into Trust by the Shakopee Mdewakanton Sioux Community Dear Mr. Morrin: On behalf of the Scott County Board of Commissioners, thank you for the opportunity to review and comment on the land trust application submitted to the Bureau of Indian Affairs (BIA) by the Shakopee Mdewakanton Sioux Community (Community). Over the past several years, Scott County has worked diligently with the Community to create an ongoing dialogue of open communication with the stated objective to create a positive working relationship. Toward that end, in June of this year a Memorandum of Agreement was reached between the Community and Scott County. Although this represents progress toward improved relations, it is considered only a beginning and more work remains. During this time, Scott County has asserted its position to the Community regarding the costs and impact that ongoing, expanding tribal development and operations have upon County resources and services. Scott County currently funds approximately 50% of its services and operations through property tax revenues. , The lack of property taxes generated by the Community places an additional tax burden upon County residents and businesses than would otherwise be incurred. While the Agreement between Scott County and the Community reimburses the County for costs, it represents only a small portion of the actual costs of services. Scott County already has the highest per capita tax burden in the metro area at $390 per person compared to a metro average of$325. As such, it is the County Board's commitment to reduce this burden upon our taxpayers. An Equal Opportunity/Safety Aware Employer The County has reviewed the application for the placement of land into trust by the Community. In summary, we have specific concerns regarding the future development of this land and the placement of the petitioned land into trust. The County's review of the land trust application has generated a number of issues that we feel have not been adequately addressed by the Community. Therefore, we strongly recommend that no decision be made on the Community's application until these issues are addressed and resolved. These issues can be categorized into the following areas: environmental, land use, transportation, public safety, property tax impact, general agreements, timing of the development, and the question of need. The balance of this letter summarizes our concerns in each area. Environmental Issues There are a number of environmental issues that are normally considered at any time that such a large parcel of land is proposed for development. Most of those issues relate to specific use proposals which were not presented in the draft Environmental Assessment. There are, however, two environmental issues which are somewhat unique to the land in question that are important factors for any future development proposals in this area. Those two issues relate to the impact this development will have on ground and surface water. The subject area is in a hydrogeological setting where surface waters rapidly infiltrate into ground water aquifers. This area has been identified by the Minnesota Geological Survey as being highly susceptible to ground water contamination. Ground water resources in this area are currently being studied by a group of regional jurisdictions and state agencies. The Community has been participating in these regional meetings. The issue being reviewed and debated regarding ground water in this area is the potential for competing ground water uses to balance the needs of industries, mining operations, municipalities and natural resources (Savage Fen, Boiling Springs and Eagle Creek). This issue is far from resolved and will likely involve more time and funding for data collection and modeling. Considering the importance of this issue to the region, Scott County recommends the following: A. The Community should continue to participate in the Southwest Metro Ground Water Work Group and recognize the potential competitive and distinct interests of other jurisdictions within the region for ground water resources. B. If these plans require the drilling of additional wells, we recommend that the • Community work with the Minnesota Department of Natural Resources and the Cities of Shakopee, Prior Lake and Savage to negotiate ground water use arrangements. Surface water management has the potential of affecting ground water quality. Storm water management ponds, drainage ways and the quality of storm water itself should be 2 considered when developing storm water management plans. Storm water will either need to flow off the site or will seep into the soils on the site and combine with regional ground water. Therefore, Scott County recommends the following: A. The Community should negotiate storm water management plans with the City of Shakopee and the Lower Minnesota River Watershed District. B. The Community should recognize the potential for interconnection of surface water and ground water and the potential impacts on ground water quality to the Shakopee municipal wells and to residential wells immediately north of the proposed trust property. Scott County also recommends that the Community consider preparing an Environmental Assessment Worksheet (EAW) describing in more detail their specific development plans for the site and distributing it to the list of state agencies and local jurisdictions which are included in the EAW process. Scott County recognizes that the Community is not obligated to do this, but considering the Community's demonstrated concern for the environment, we believe the Community would be interested in considering the comments this would provide. Land Use Issues The development concept of the property has a variety of land uses - commercial, industrial, institutional and residential. The County is concerned about the compatibility and intensity of different land uses utilizing the same access/street. County Highways 16 & 83 are classified as Minor Arterials and access from these highways could be limited depending on land use classification. In addition, this area does not presently have public utilities - sewer and water. The extension of public utilities to the site will have an impact on County highways and highway right-of-ways. As such, the County feels strongly that we should have the opportunity to review and comment on proposed land use and development plans prior to any actual development occurring. Transportation Issues The land trust application and the draft Environmental Assessment discuss the "internal" transportation improvements and how these would be funded under the Trust/Non-Trust options. However, the needed improvements and ongoing maintenance for the "external", or County highways have not been addressed. In addition, the County has concerns regarding how external site transportation issues would be handled if the land is in trust as opposed to regulation under the City of Shakopee's planning/platting process. The County strongly believes that these issues must be addressed prior to development, in order to avoid any undue pressure or hardship that the County and Community may face at the time of development. 3 Of importance to Scott County, with respect to both transportation and land use issues, is the fact that this area was not anticipated for "near term" development. The cost to upgrade/improve County roads has not been considered in our Capital Improvement Plan. No local unit of government or state agencies contemplate development of this area before the year 2020 and perhaps 2040. The area ig designated to be held in reserve under the Metropolitan Council's Growth Management Strategy. The fact that the area may develop prematurely under trust status, without the tax base to offset service impacts and costs, places an undue hardship upon County resources to adequately fund transportation needs of this development while competing with the needs of other County road projects. Scott County believes that these issues must be addressed prior to a decision regarding the placement of land into trust. Public Safety Issues With an increase in population, or a change in land use from agricultural to residential and commercial, there is going to be an increased need for services provided by the County Sheriff in the areas of warrants, civil, courts and jail over a period of time. Emergency services provided by the County Sheriff will also increase based on the population expansion in the 911 Center, as the Sheriffs Office provides all 911 services in Scott County. In addition, increased costs will occur in the area of providing prosecution services. As the population increases, the County Attorney's Office will have additional significant demands placed upon it. While determining the actual increased costs to the County Sheriff's Office and County Attorney's Office for providing these services is difficult, the Community should recognize that there will, without question, be additional costs and that this impact should be addressed before any decision is made on the trust application and prior to any development of the land. Property Tax Impact Past analyses by Scott County have shown that there are annual costs associated with the Community's operations and development. As a result, we are very concerned about the additional costs that will be incurred by the County due to future development on land designated with trust status. We disagree with the statement on page 18 of the application, which says that "if the [land trust] parcel is developed there should be few, if any, costs that accrue directly to Scott County." A clear distinction needs to be made between existing casino and Community businesses and the offsetting impacts to the County from the development of the land in this trust application. On page 15 of the application, the Community states that "clear increases in income to the...political subdivisions [City and County] are a far more likely result from a trust acquisition [of the land]... ." Yet according to the analysis of economic contribution in the application, the Community bases this conclusion "on already existing development." It is the County's opinion that economic contributions by existing Community businesses and development should not be considered a substitute for 4 conveying or foregoing future benefits to the City and County for the land within this trust application. These two issues should not be co-mingled. Moreover, while there is "an immediate minor reduction in property tax income" to the County, of major concern is the estimated forfeited future tax base which the County would use to fund the services that would be necessary as a result of this development. The removal of this property and the future development upon it from the local property tax base negates the County's ability to generate revenues to offset increased service costs provided to the County's residents and Community. On page 6 of the application, it states that "land should be accepted in trust where: 1) it is purchased at fair market value; 2) is suitable for the intended purpose; and 3) provides space for rational and environmentally friendly development." The County does not agree that these are the only three criteria that must be considered when deciding upon trust applications. At least one additional criterion must be included, and that is the financial implications and fiscal impact upon affected local jurisdictions. The size of the land under application and the potential impact on local governments mandate that the fiscal impact and financial consideration be an absolute requirement when considering a trust designation. This concern was recognized by the United States Congress during the 1997 session in legislation introduced in H.R. 1168, a bill "to encourage competition and tax fairness and to protect the tax base of State and local governments." Although H.R. 1168 was not adopted, it helped to raise awareness of the growing concern among local and state governments nationwide. Therefore, Scott County strongly urges the BIA to consider the fiscal implications and the loss in property tax revenues in its deliberation regarding the Community's land trust application. General Agreements The County and Community share the same objective to create a long-term mutually beneficial economic partnership. However, County officials are concerned about our capacity to effectively create and sustain this long term economic partnership. While an agreement with the Community to compensate the County for a small fraction of our current costs is now in place, County costs due to future development have not been addressed at all. The Community's application concludes that "impacts on property taxes will likely be offset by a number of mechanisms...[including] negotiated payments for general or special purposes... ." This conclusion, although consistent with the County's objective, has not been clearly demonstrated, nor supported, in the information provided. As a result, Scott County has no guarantees that there will indeed be a long term economic relationship, even though such a relationship would mutually benefit both the County and the Community. The County strongly urges that the Community be willing to renew discussions regarding future costs and "negotiated payments [to Scott County] for general or special purposes." An agreement addressing future County costs needs to be in place prior to any BIA decision on the land trust application. 5 Scott County recognizes that the Community has no obligation, legal or otherwise, to enter into agreements with the County. To date, agreements with the Community have been decided through repeated discussion, negotiation, and at times with tension and conflict. The County desires to develop a relationship with the Community based on mutual trust and understanding. It is our sincere intent to progress in this direction and we have asked that the Community join us in advancing this relationship. Timing of the Development The application has a number of proposed land uses but no specific information as to when the timing of the development will occur. On page 6 of the application, the Community states that "the land is projected to remain in agricultural use for the near term, then be subjected to phased development as tribal needs and economic conditions allow." Accordingly, "the actual development schedule will be determined by Community need, economic conditions, infrastructure availability and opportunity." In light of the fact that there are no specific development plans, Scott County questions whether the trust application is premature and whether it should be considered by the BIA at this time. The County recommends that the BIA not act upon the application until the Community has submitted definitive development plans, has documented and substantiated the need in more detail, and the issues and concerns identified within this letter are addressed and resolved. Question of Need To their credit, the Community's operations are very successful and are providing a substantial source of income to the members. In addition, the Community currently holds in excess of 750 acres of reservation and trust land and additional land in fee. Based on these facts, it is difficult to understand why the Community needs to place this land into trust status "to facilitate tribal self-determination, economic development or Indian housing," as required in 25 C.F.R. 151.3. The Community's application has not established that its existing holdings are insufficient or incapable of meeting its future needs. The County agrees with the statement on page 5 of the application, which states, "The Community should not be forced to develop every square inch of its land, regardless of potential negative impacts... ." The County requests that the trust application be substantiated by an overall Community land use plan which shows existing land, its current and future uses and the rationale for why the land within this application is needed for the intended purposes. The Community states in its application that it has a need to develop the land for housing and economic development purposes. The original intent of the 1934 Indian Reorganization Act authorized the federal government to acquire land for tribal - communities with the stated purpose "to provide for the acquisition, ... of land for Indians now landless, who are anxious to make a living on such land..." and "to meet the needs of landless Indians and of Indian individuals whose land holdings are insufficient for self- support." Senate Report No. 1080. 73`d Congress, 2d Session 1-2 (1934). Furthermore, 6 the purpose of the Act was to "rehabilitate the Indian's economic life and to give him a chance to develop the initiative destroyed by a century of oppression and paternalism." H.R. Rep. No. 1804, 731'l Congress, 2d Session 6 (1934). The Community's economic success is affirmation to the fact that these goals on the part of the federal government have been fulfilled and as such, the Community no longer needs the assistance • contemplated in the Indian Reorganization Act. Given the original purpose of the Act, there is a misapplication of the Act's intent when applied against the Community's land trust application. The purpose of the Act and the justification upon which this trust application is founded are distinctly different. The County also believes that justification has not clearly been made as to why the development must occur under trust versus fee status. The proposed land use and development of the property can occur vender fee status without placing the land into trust status. There is nothing to prevent the Community from developing the land in its current fee status. Therefore, Scott County strongly encourages the Community to develop the land without placing the property into trust status. In addition, the County requests that the BIA require further substantiation by the Community before its evaluation of the application. Recognizing that the Community owns the land and is interested in its development, at the appropriate time, the County would be willing to participate in the development process and provide our assistance to the Community toward their objectives. Conclusion Scott County strongly believes that the issues presented in this letter and those of other local governments need to be taken into consideration by the BIA in its deliberation of the Community's land trust application. Based upon our concerns, we believe that further investigation is warranted to determine the validity of the Community's request. Scott County is requesting that the BIA make no decision on the application until all concerns and objections have been resolved. Before any decision is reached, we would like to request a meeting, or series of meetings, with the BIA, Community officials and other affected jurisdictions to discuss all concerns in greater detail. These meetings would provide, among other things, a forum for the detailed discussion of specific statements and references in the application, an opportunity to explain and express our specific concerns to the Community, and hopefully provide a means to enhance the communication and understanding among all participants. One more important question that needs to be raised in the discussions, is what are the Community's long-range plans for future land acquisition and trust applications? This is a very important issue that must be considered as well. As already stated, Scott County desires to work diligently with the Community to create an ongoing dialogue of open communication and collaboration. We believe that the trust application presents an opportunity to further advance the relationship between the Community and Scott County. However, the land trust issue also has the potential to create problems in our relationship and negotiations. As such, it must be used as a medium to facilitate discussion of our interests and needs. The BIA has a unique chance to assume a leadership role toward this end; we hope you seize the opportunity. Your decision in this matter will have long-standing effects upon the future of Scott County and • • its residents.4Res ectfully ubmitted, 4. rak y . D vid J. Unmacht C unty Administrator CC: County Board of Commissioners 8 NO :`-Q4 -97 13:31 FROM:MN GOV LEGIS REL ID:6122967030 PAGE 1/5 CrjQ'fir° • GOVERNOR ARNE Ir. CARLSON LT. GOVERNOR JOANNE E. BENSON • STATE OF MINNESOTA 130 State Capitol Building • 75 Constitution Avenue • Saint Paul, Minnesota 55155-1099 PHONE: 612-296-3391 800-657-3717 FAX: 612-296-2089 DATE: I( 1.1R 7 TIME: TO: MA (a12 -44 — :7/g • FROM: •6tn. 2q(-005 0 RE: c/J _ ¢- .lam -1 - --cLatAir- TOTAL PAGES 5- (including this cover sheet) NOV-03-97 13: 32 FROM:MN GOV LEGIS REL ID:6122967030 PAGE 2/5 • • � �-•cam : ''. • ;.,�< TATE OF 1VIINNESOT.A. a a' y';1,' OPPICE OP THE GOVERNOR rOR SA-ENT R&UL 55155 • 612-296-2391 rJ- Ara,—z H.enwr—sox • Gcornirmou November 3, 1997 Mr.Larry Morrin Acting Area Director Bureau of Indian Affairs U.S.Department of the Interior 33I South Second Avenue Minneapolis,MN 55401-2241 Dear Mr.Morrin: Thank you for your letter of September 25, 1997,inviting comment on the request of the Shakopee Mdewakanton Sioux Community("SMSC")to have approximately 593 acres of land placed into trust. The State of Minnesota strongly opposes the SMSC request to have this land placed in trust and encourages you to deny it. Although the state generally supports efforts of Indian tribes to prosper,we cannot support those efforts when they are made at the expense of local governments,which lose the ability to •collect property taxes when land is converted to trust Nor can we support such efforts when they hamper the efforts of state and local government agencies to implement zoning and other regulatory requirements to protect nearby residents and natural resources. Finally,we are extremely uncomfortable with permanent changes in the status of these lands because it is impossible to say what future needs for this land might be. TAX CONSEQUENCES The Community has said it wishes to develop the land for light industrial,retail and housing purposes. The light industrial development plan envisions multiple small to medium scale tenants on 138 acres of land. Retail development would allow for one or two major"anchor" retail outlets with subsidiary related businesses on 68 acres of land. Residential units would comprise only 15%of the use,or approximately 40 acres of land. Local units of government provide a significant array of services to residents-both tribal and non-tribal members. In order to pay for many of these services,local governments levy property taxes. Land placed into trust for any tribal government is removed from the tax rolls forever-although the need to provide services continues for just as long. NOV,.-03-97 13: 33 FROM:MN GOV LEGIS REL ID:6122967030 PAGE 3/5 Mr.Larry Mon-in November 3, 1997 Page Two At this point, virtually no services are provided to the property. Current taxes on the land in question without improvements amount to$I8,594 per year. The costs of fixture services that will be provided to the land,if and when the land is fully developed,are uncertain and could be substantial. Because trust lands do not contribute to property tax rolls,in order to pay for any services the development of this land may require,local governments could be forced to raise the property taxes of other,non-tribal residents or cut services to taxpaying residents. This is fundamentally unfair and unacceptable. The Community and the City of Shakopee have made separate estimates of lost tax revenues to the City from future development. The Community estimates of lost revenues for the period 1998-2010 range from (assuming 74 $4 ,7�8 no development)to$33,052,656g p ) (assuming primarily residential development). The state does not dispute the methodology used to make those estimates. However,it does agree with the City's belief that the development of the land would likely involve a mix of residential,commercial and industrial use. Under the mixed use scenario,the attached report from Springsted Public Financial Advisers indicates that the lost revenues for the period are projected at$97,578,696. Additionally, under the current tax agreement between the Department of Revenue and the Shakopee Community,sales tax and liquor,cigarette and tobacco and motor fuels excise taxes from transactions with non-members of the Community are shared on a 50/50 basis. The state feels it is imperative all parties recognize that granting the SMSC application would result in additional lands that would automatically be covered by the terms of the current agreement. However,it also is important to note that the tribe could cancel those agreements at any time provided notice is given to the state. If that were to occur,serious consequences could ensue; although the tribe would not collect the taxes,the state would have the legal requirement to do so with respect,at a minimum,to purchases by non-tribal members. Given the magnitude of the tribe's commercial and retail plans for the land,the state is seriously concerned about this possibility. LAND USE CONSEQUENCES • There are jurisdictional and zoning issues that come into play when land is placed into trust. The land is currently zoned for agricultural use. The Community's proposed uses do not conform with existing zoning restrictions. Trust land would be exempt from the zoning restrictions imposed by local governments. Additionally,the requested land abuts land that is zoned industrial.Currently the Minnesota Pollution Control Agency has provided a permit to construct the sewer system in the area. If the land is granted trust status,the MPCA will no longer have jurisdiction over the environmental regulation of the area. Since the requested land is in a prime area for future development,the state shares the belief of the City that it is imperative that the development be done in a manner consistent with the City of Shakopee and Metropolitan Council policies regarding expansion of the infrastructure such as sanitary water and sewer. NOS,+°-03-97 13: 33 FROM:MN GOV LEGIS REL ID:6122967030 PAGE 4/5 Mr.Larry Morrin November 3, 1997 Page Three Similarly,the State of Minnesota has resource management concerns. This parcel of land is located in the vicinity of several rare and highly valuable natural resource features. These include the Savage and Black bog Fens(unique calcareous wetlands which are rare in the state),Eagle Creek(a state-designated trout stream),and_Boiling Spring(an area of upwelling of groundwater). These natural resource amenities depend on complicated groundwater hydrology to maintain their ecological integrity. Minnesota law provides special protection to calcareous fens and the Minnesota Department of Natural Resources has extensive responsibility for ensuring protection of these resources. Studies have indicated that current groundwater appropriation for the Prairie du Chien-Jordan aquifer in the area has resulted in negative impacts on water levels in the fens. The DNR is currently working with municipalities in the area to address current and future groundwater demands as they relate to impacts on local ground and surface water features. The state's particular concern regarding the Community's request is the water supply to the 593 acre site. Any new wells,or appropriation from existing wells completed into the Prairie du Chien- Jordan aquifer may exacerbate the impacts of groundwater withdrawal on the area water resource features stated above. The Draft Environmental Assessment that accompanied the Community's application addresses the issue of the effects of groundwater withdrawals on the above-mentioned natural resources. The Community estimates that water usage under its Preferred Alternative would be approximately 350 thousand gallons per day. The assessment also addresses the issue of non-point source pollution on surface water. The Community states that it is involved in DNR planning meetings to ensure responsible development of the area. The state believes that,at a minimum,continued meetings on the part of all interested parties is essential in these matters. The DNR has also identified a potential conflicting land use. The land requested has a high potential for economic aggregate deposits as evidenced by the consistent topology and existing gravel operators in the immediate vicinity. Three large gravel operations have been identified in the immediate area. The proposed land is located on a terrace aggregate deposit. Further research is required to evaluate the deposit for potential economic value and conflict of land use. CONCLUSIOJ Finally,the state strongly believes that there is no compelling reason to grant this trust application. Generally,public lands are placed into trust to create a jurisdictional and/or economic advantage for the members of the SMSC. There is lack of economic need on the part of the SMSC normally associated with such a request. Recent reports regarding tribal income of individual tribal members indicates per capital income in excess of$600,000 annually. The state believes it is fundamentally unfair to subsidize future commercial, NOV7f03- 7 1:3 : :34 1kUM:MN t.UV Ltldib Mt.L. 1U:01GL0/VJJVJ �MVL aim Mr.Larry Morrie • November 3, 1997 Page Four industrial or residential activities of a population that is fully able to utilize existing opportunities. Additionally,the placement of these lands into trust will create an environment of unfair economic competition between the SMSC and local entities. The state believes that this part of the metropolitan area is one of the fastest growing and that growth will continue without the tax advantages provided by trust status. I cannot in good conscience support permanently placing lands into trust which forever removes them from state and local regulatory authority and forever denies local government the income from these lands,which they need to provide services to the people who may live on them. Unforeseen changes in future population or business growth patterns likely will make these lands even more valuable. Future resource protection is already a major concern to the City and County,and certainly will demand even more attention by state and local regulatory authorities. Placing land into trust status would tie the hands of state and local governments in dealing with these anticipated changes. The State of Minnesota has been extremely supportive of tribes'efforts at economic development to gain self-sufficiency;in fact,the state has given the tribes a monopoly on casino gambling. I support their right to seek economic prosperity. But I cannot support any activity that will place a burden on local units of government with no means of financing the burden,or one that will limit the ability of the state and local governments to protect resources enjoyed by all Minnesotans. • 1 strongly recommend that the Bureau of Indian Affairs deny the request of the SMSC to place these lands into trust Thank you again for your opportunity to comment. Please be assured that this Office will continue to monitor and participate in the BIA proceedings on this matter. Warmest regards, Co\C ' CARLSON Governor