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HomeMy WebLinkAbout04/28/1992 TENTATIVE AGENDA ADJ.REG. SESSION SHAKOPEE, MINNESOTA APRIL 28 , 1992 Mayor Gary Laurent presiding 1] Roll Call at 4: 00 P.M. 2] Hiring A Construction Manager` - tabled 4/21 3 ] Other business c* ) /% " J 131;e mvnn , 4] Adjourn )0� Pte. TENTATIVE AGENDA COMMITTEE OF THE WHOLE APRIL, 28, 1992 1] Roll Call at 4 : 10 P.M.+ 2] Approval of Minutes of March 31st, April 14th and 16th, 1992 3] Library Presentation by Janet Williams 4] Sentencing to Service Program - Discussion 5] Special Assessment Policy 6] Township Meeting Agenda - discussion 7] Need for Thursday Meeting - discussion 8] Selection of May Committee of the Whole Tentative Meeting Dates 9] Recess and Move to the Jackson Town Hall to Meet With Jackson and Louisville Township Supervisors 10] Re-convene at 7 : 00 P.M. 1] Recreation User Fee 2] Fire Department Contract - verbal 3] Update on Community Center Survey - verbal 4] Orderly Annexation Plan - verbal 11] Adjourn Dennis R. Kraft City Administrator a MEMO TO: Honorable Mayor and Council FROM: Dennis R. Kraft, City Administrator RE: Hiring of Construction Manager for the New City Hall DATE: April 24, 1992 INTRODUCTION: Last month the City Council authorized the City Administrator to prepare RFP' s for the hiring of a construction manager for the remodeling of the Marquette Bank building into a new City Hall. BACKGROUND: Last summer the City Council purchased the Marquette Bank building at 129 South Holmes with the intent of converting into a new City Hall. As part of the purchase agreement Marquette Bank would continue to occupy the structure until approximately the end of June 1992 , at which time they would move in to their new bank building which is located at the corner of Fourth Avenue and Marschall Road. The project is on schedule and it is anticipated that Marquette Bank will move during the weekend of June 21st. The City Council has the option of either hiring a construction manager to manage the City Hall project or to bid the project out to a general contractor. The use of construction managers has been fairly wide spread in the private sector but has only recently grown in acceptance in the public sector. The construction and remodeling of several city halls and schools in and around the metro area have used the construction management process during the past few years. The construction management process is essentially a project delivery system which applies modern management techniques to project planning, design and construction with the primary intent of controlling cost and time while achieving a desired degree of quality control. The construction manager will function as the agent of the City at a pre-agreed fixed contract rate whereas the general contractor functions as an independent bidder whose profit is dependent upon the ultimate cost of the project. The construction manager, as a member of the owners project team will be responsible for working with the architect and the City in preparing a project budget and will insure that the architect produces a design that will fall within the budget parameters. The construction manager will also prepare project specifications and bidding documents, prequalify subcontractors, schedule and coordinate the work of subcontractors, prebid materials with long delivery times such as an elevator, and provide daily on-site inspection during the project construction phase. Essentially a construction manager replaces the typical general contractor at a comparable or perhaps slightly lower cost to the project owner, and with a greater degree of assurance of cost containment. The City does not have any existing staff with available time during the summer to function in this role. FIRMS CONSIDERED: Three firms responded to the RFP. They were the Bossardt Corporation, Bill Henning and RLK Associates. The City' s interview team consisted of the City Engineer\Public Works Director, the Assistant City Administrator and the City Administrator. The three firms presented different approaches and had different backgrounds. RLK Associates was a firm established in 1990, although the principal of the firm had in excess of 20 years experience and other firm members also had experience with other organizations. This firm is a civil engineering, landscape architecture, transportation, infra-structure development and construction management firm. The President of RLK, Richard Koppy was a principal with Westwood Engineering, a firm which did the design work for the City on the downtown project. The firm currently has 16 full time staff members. Bill Henning is primarily a general contractor who constructs commercial and industrial buildings. Bill Henning has 25 years of construction experience. The other staff member who would be involved would be Greg Henning who has appreciably less experience. Bill Henning continues to function as a general contractor for commercial and industrial projects and was the general contractor for the Mebco building in Shakopee. Bossardt Corporation is a 8 year old firm that does nothing but building construction management. They do not do other forms of civil engineering nor are they a general contractor. They have had both public and private sector clients and have completed numerous projects in and around the metro area. The principal of this firm has had 25 years experience. The firm currently has 19 employees. COST The fees to be charged ranged from 4% of construction cost plus field management costs to 10% plus field management costs. The breakdown of the firms costs include Bill Henning - 10%; Bossardt Corporation - 8% and RLK Associates - 4%. One of the firms, Bill Henning, indicated that if costs would go up their fee would also increase. The other two firms indicated they would agree to set amounts, and if costs were to go up their fees would remain fixed. In other words, they would not benefit from project add ons. RECOMMENDATION: It is the unanimous recommendation of the interview team that the Bossardt Corporation be hired for this project. The major reasons for this recommendation include the experience of the firm specifically in construction management and in working with both public and private sector clients. The experience this firm has had specifically in working for cities and working on city hall and other public building projects was also an important factor. The qualifications of the individuals who would be involved in the project the endorsement of the project architect, and the overall superior presentation made by this firm were further reasons substantiating this recommendation. ACTION REQUESTED: Move to direct the appropriate City officials to negotiate with and prepare a contract with Bossardt Associates for construction management services for a new City Hall. (If the City Council endorses this recommendation, a formal contract will be presented to the City Council for adoption. ) a MEMO TO: Dennis Kraft, City Administrator FROM: Dave Hutton, Public Works Director RE: T.H. 169 Bridge and Minibypass DATE: April 27 , 1992 ACTION REQUESTED: Move to amend the motion of April 21, 1992 by deleting the cap placed on the City' s street lighting cost for the T.H. 169 Bridge Project, and ratifying the signing of the street lighting cost contract. 3I Memo To: Dennis Kraft, City Administrator From: John H. DeLacey, Eng. Tech. III Date: April 28 , 1992 Subject: Partial vacation of an existing drainage easement. Introduction: Earlier today staff was contacted by a real estate agent for Realty/World-Kubes regarding a problem that they were having in preparing all the necessary documents for a closing on a sale of property located at 420 W. 2nd Ave. The legal description for this property is The easterly 55' of Lot 8 Block 34, Shakopee Plat. The closing date for the sale of this property is April 30 (Thursday) . Background: In May of 1986, the City had acquired a 20 ' wide drainage easement for the purpose of installing storm drainage from the owner of the property referred to above. While performing a check on the title to the property, the abstract company discovered that the easement described in the document actually includes approximately four feet of the property owners house. (See Attached) . Staff has looked at this property and verified that the drawing does appear to be correct. The mortgage company has stated that they will not close on this property unless the City of Shakopee is willing to vacate a portion of the drainage easement so that the house will not interfere with it. Staff has reviewed this drainage easement and we feel that there would be no adverse effect if the City were to vacate a portion of this easement. Staff is recommending that the City vacate the easterly five feet of the drainage easement, thereby maintaining a fifteen foot drainage easement for any necessary work to be done on the storm drainage system in place. Alternatives: 1. Vacate the easterly five feet of the existing storm drainage easement which would leave the City with a fifteen foot wide drainage easement. 2 . Do nothing Recommendation: Staff recommends alternative number one. Requested Action: Offer Resolution No. 3584 , A Resolution Authorizing Delivery of a Deed to Extinguish a Portion of an Easement and move its adoption. RESOLUTION NO. 3584 A RESOLUTION AUTHORIZING DELIVERY OF A DEED TO EXTINGUISH A PORTION OF AN EASEMENT WHEREAS, under date of May 30, 1986, an easement was executed by Wayne Leroy Olson and wife LaDean M. Olson running in favor of the City of shakopee for drainage purposes over, under and across the West 20 feet of the East 55 feet of Lot 8, Block 34, City of Shakopee; and WHEREAS, the City no longer requires the easterly five feet of the above described easement and the same serves no useful purpose and should be released and discharged of record. THEREFORE, BE IT RESOLVED, BY THE Shakopee City Council that part of the easement above described be and the same hereby is released and discharged as follows: the easterly five feet of the westerly 20 feet of the easterly 55 feet of Lot 8 , Block 34 , City of Shakopee. BE IT FURTHER RESOLVED, that a quit claim deed to discharge the same of record be made and signed by the proper City officials and delivered to the present owner of the above described property. Passed in session of the Shakopee City Council held this day of , 1992 . Mayor of the City of Shakopee ATTEST: City Clerk Approved as to form. City Attorney 04/28/92 11 :01 a 612 445 0319 KOHLRUSCH RBST P.03 File No,_ ST-1909 — Exhibit PLAT DRAWING (THIS IS NOT A SURVEY) Av4- . 55/ 7-0. ic ( fL. —\ ‘, i`4 •-•C C.) \ ts.4 X. -. > ..--------- \ I 1k R%1,4 t V. \......1\ .----- n% 45. 14 PropertyAddhess: 420 2nd Ave. Wcst, Shakopee, MN 5 379 "'(he location of the improvements shown on this drawing are approximate and arc based on a visual inspection of the premises. The lot dimensions arc taken from the recorded plat or county records. This drawing is for informational 1 purposes and should not be used as a survey. it does not constitute a liability of the company and is intended for mortoace purposes only." r ., S. • • r • • • • 1 - ; - 1 2 r op..,t•.. U Yw.M.•M ( tom am.as it-curt et*tM DEED Yw••INs Vrt,.,.e•..11%.t-.1.1111 a1.M,ttataf a ProlOWSPO No delinquent tuxes and transfel entered:Certificate I of Real Estate Value ( )filed 1 .-")not required 1, n• r . Certificate of Rea:Estate Value No. i ,dr, ` _...-. _ %1r7JG2sL.� • (.0101yp1,CSltl�r ' i�. :. ••, /' ' by.___AL.. ,./.6.a.z...x. Xf MP STATE 11EF.f)TAX DUE 11E111F.ON: S _ E .... 1 ... �.. ` • Date __ „((1(i0 � _ _ .1St tt( I' f Creserved for recording data) —_.".— FOR VALUABLE CONS11)EkAT1t1N. _t,.;YN1. t-f 1tOY Ut SON and t bMAN_M. OLCON. - t;r►nwr(s1, fivsTiSnQ lied v7ice -.._ --. ..---- C11Y Of 5gAKOPEf — _. .._._ _-• herrhy convey 13)al,d quitclaim Csl to . .. ___.•-- •.,•-• iee, —riuniTal CJ" oreEion_.•_ • • -unclerthelawsof thc.Sf.ale oZ•1)Sinl1cso"fa •,---_ + '_ -� � 'St Ott county,SSrnnEiota,drscr!Ircc;as follows. _ real property In .- -- -..—... . . .. . ... _._ . An easement for drainage purposes, over. underandactoss the following dcscrthP1 1 pfopert) . Inc )test 20 feet of the fest 55 fret of Lot ti. Rloci• 34. ?z CITY OF SIS4Y.OP E •t cvl ` 1d e.a.epee.,I N ra•co•,•A..s al Vs:14 together with all hereditaments and a.>purtenanccf belonging thereto. } '•••c<�.•� ,1 : . ....C.2—<;44,.t2.--_... •.._. INaynexekwY ..,..s.‘... 11son .0....‘"!./1,' /.! fr�s+:.t.•+-ate-_ ---- -• -- STATE OF MINNESOTA - a _-. . . .- --- .—.. - - • r1 c� 4 May 1p F6 The foregoing inuvu�ntar was alaDean Med b'tOT me th�� C .-/La.y of ._ Gta,ttoi a). „' _Floe teRoLO-soli a d -- •- •— NOTAa o a VM SIM-(Olt OTHER TALI OP 8A!nC1 .J,, /,�mac,__-! N _. COAL FE A IINJERWOt� ' I:A t PR c.s KR3�r i .term 1.AL tMn1,Fb•t j) WV A.,1 i.Lic nwNEB014 7rr $."."...".rot tree rA~a•rs t0 SCO 1 T COUNTY k b.gent a•nnat.�>aou Mc Vt_ IA/C. • 1.:....Oct II OW .-(K' ha-.- ) 1•\ • 1•41I1!4iTRONt•Ni tt Ab I3k I'SP hi W Atrr AAI.Atli/NI•Si 1 KR.ASS 5 r)MROt Cif Ac,rE ia.O 3?7 Soutn Marschat 1 Rued, S'r1 tc 3O:) Post Office Box 216 I Shaknree, Minnesota :,53/9 (612) 4466-503t) OFFICIAL PROCEEDINGS OF THE CITY COUNCIL COMMITTEE OF THE WHOLE SHAKOPEE, MINNESOTA MARCH 31, 1992 Mayor Laurent called the meeting to order at 7 : 03 p.m. , with Cncl. Vierling, Lynch, Beard, and Sweeney present. Also present: Dennis Kraft, City Administrator; Judith S. Cox, City Clerk; Barry Stock, Assistant City Administrator; and Gregg Voxland, Finance Director. Lynch/Vierling moved to approve the minutes of January 28 , 1992 and February 11, 1992 . Motion carried unanimously. Richard A. Reichow, Chief Financial Officer for Canterbury Downs, was present to discuss the assessed valuation of the racetrack property for the purposes of levying taxes. He stated that when the racetrack was constructed the City made certain improvements, which were financed by the City through tax increment bond issues . He added that due to various reasons, the racetrack has suffered substantial losses. Mr. Reichow stated there is an assessment agreement between the racetrack and the City that prohibits the assessed valuation to be determined in the same manner as other businesses . He stated that their property tax is the third largest expense for the racetrack, and that the racetrack pays over twice the level of taxes as other businesses within Shakopee. Mr. Reichow stated the racetrack is proposing to the City that the assessment agreement be reviewed and consideration be given to allow Canterbury Downs ' property to be valued at some lower amount for 1992 and beyond. He added he is appealing to the City as a "good neighbor" and on the basis of "fairness" . He requested the racetrack pay taxes on what the business is worth. The City Administrator explained tax increment financing stating that there are specific uses that the tax increment trust fund can service. He presented four different scenarios for Council consideration in response to the racetrack' s request. Discussion was held on the alternatives as presented and other options available. Discussion was also held on how any consideration of the racetrack' s taxes would impact the county and the school ' s budget. Sweeney/Beard moved to refer to the City Council action on a proposal to reduce the assessment value of Canterbury Downs to some agreed level. Specific discussion was held on: 1) The fiscal disparities issue as it relates to the tax payers; 2) Would the racetrack remain viable without some financial assistance; 3) In the event the racetrack closed, what protection did the City have in recovering taxes if the valuation was lowered; and 4) Any costs the City incurred be charged back to Canterbury Downs, should the existing agreement be amended. Official Proceedings of the March 31, 1992 Committee of the Whole Page -2- Cncl. Beard stated that the public needs to be aware that any tax reduction would not come from the City' s general operating budget. Terry McWilliams, General Manager for Canterbury Downs, was present for discussion with the Committee of the Whole. Motion carried with Cncl. Sweeney voting "no" . Discussion continued on: 1) Cash flow relief extension to recover the taxes; 2) There should be no negative impact to the school district or the county; 3) City projects that would be affected by the lowering of the racetrack assessments; 4) The need to pay off the bonds before any assessment change; 5) Suggestion that Canterbury Downs pay off the bonds thus terminating the agreement; 6) Extension time of TIF District #1 and the impact of fiscal disparities analysis; 7) Suggestion of reducing Canterbury Downs ' taxes by 25 percent; and 8) Combination of fronting the bonds and not extending any other tax increment districts. Cncl. Lynch requested this item come before the City Council when she could be in attendance; the May 5th meeting was suggested. The Committee of the Whole recessed at 8 : 30 p.m. and reconvened at 8 : 35 p.m. Donald Kaufenberg came before the Committee of the Whole representing the Shakopee/Prior Lake Hockey Association and gave a presentation of the needs of the hockey association. Mr. Kaufenberg stated that the hockey bubble is on its "last leg" , the members of the association are burning out due to the constant repair needs being performed on the bubble, and that if some financial commitment cannot be given, there will be no skating at the bubble for the 1992/1993 hockey season. Mr. Kaufenberg stated that the association is asking the City for both moral and financial help in trying to build a basic structure for the community. He added that if such a structure were constructed, he believes the youth and the hockey organization could operate it expense-free. Mr. Kaufenberg stated that a basic structure, known as "Phase One" , would cost $424, 000 . This proposed Phase One structure would be similar to the ice arena located in Farmington. The basic structure could be erected on the existing site, which would be the most economical, and it could be built in time for the opening of the 1992 hockey season. Mr. Kaufenberg distributed a letter of support for the Shakopee/Prior Lake Hockey Association from the businesses within Shakopee. He explained how the two cities had merged. He added that the Prior Lakes businesses have not been contacted for financial support because it was Mr. Kaufenberg' s contention that Official Proceedings of the March 31, 1992 Committee of the Whole Page -3- Prior Lake businesses should not be solicited for financial assistance for a facility to be placed in a different community. Mr. Kaufenberg stated that the needs of the hockey association are immediate, and they are willing to take any help the City can offer. Discussion was held on the possibility of a Shakopee Community/Civic Center and how this could affect the hockey association and their needs. Mr. Kaufenberg stated that since the idea of a community/civic center is still pending, it wouldn't be soon enough to help the hockey association for the 1992 season. He added that he didn't believe that an ice arena combined with a community/civic center is a good idea. He suggested a hardshell be build by the City, or the City help to finance a hardshell, to be placed on the existing site. Discussion was held on whether or not a less permanent structure could be built that would sustain the hockey association for at least three years. Mr. Kaufenberg responded that the existing bubble would not make it another year and is beyond refurbishing. Discussion was held on an operating budget for an ice arena. Mr. Kaufenberg stated that an ice arena is not a money-making business and all they have as an operating budget is the report of their operating expenses from previous years. Discussion was then held on the generations to follow and if they would be as willing to assist in the operations of an ice arena as the past and current generations have been. Discussion was also held on the protection to the City for operating the ice arena if an ice arena were funded with City funds. Mr. Kaufenberg stated that many cities have an ice arena subsidized by City funds. Discussion was held on Shakopee/Prior Lake finding ice time at various other places. Mr. Kaufenberg stated this had been tried for the beginning of the 1991 season when the existing bubble was down, but found to be almost impossible. Questions were raised on the report prepared by the Chamber of Commerce and how it currently relates to the Hockey Association and their needs. The Chamber director stated that the report prepared by the Chamber was in support of a community/civic center as a benefit the entire community, and was not based solely on the needs of the Hockey Association. Cncl. Sweeney questioned what the Shakopee/Prior Lake Hockey Association wanted from the Council. He asked if they were before Official Proceedings of the March 31, 1992 Committee of the Whole Page -4- the Council in hopes of receiving $424, 000 for an ice arena. Mr. Kaufenberg responded this is what the association was hoping to achieve. Cncl. Sweeney then asked if the association wanted this placed upon a referendum for the voters in November. Mr. Kaufenberg stated this was not their intent. Discussion continued as to where the City would get the extra $424 , 000 for an ice arena when this was not a part of the current budget. Discussion was also held on the pending budget cuts for the cities by the state. Cncl. Sweeney suggested bond funding, which would be a means of financing this facility, but added it would have to be done via the referendum procedure. Cncl. Vierling suggested seeing some financial commitment from Prior Lake and from the townships. She also suggested a revenue bond using some of the tourist tax dollars. These issues were further discussed, and it was determined that tourist tax dollars would not be a viable financing method due to state guidelines on the use of tourist tax dollars. Other funding alternatives such as the use of capital improvement funds were discussed and how to prioritize the needs of the community. Discussion was also held on the timing of this request in regard to the proposed survey to be conducted relative to a community/civic center. Mr. Kaufenberg questioned if a survey had been done before a new City Hall facility was purchased. Mayor Laurent responded that there are some services necessary to keep the City running properly, and a new City Hall facility is. determined to be essential in order to keep the City of this size functioning. Mr. Kaufenberg stated that anything that promotes growth and encourages the youth to remain within the community is essential in keeping the City running. The Council thanked Mr. Kaufenberg for his informative presentation and complimented the association and their volunteers for their dedication and ability in keeping the existing bubble debt-free and operating over the past years. Mr. Kaufenberg stated he believes there are funds available within the City and wants their organization to be considered when these funds are expended. He added that he is all for a community/civic center, but he added that the facts present themselves that money Official Proceedings of the March 31, 1992 Committee of the Whole Page -5- would be saved by constructing an ice arena at the existing site. He stated that if they were helped out with the financing and/or building of the structure, he would guarantee that the volunteers would keep the facility functioning. He added that a facility of this nature would be a very good return on the investment. He then asked how to further proceed. City Administrator stated that one of the first questions that needed to be answered is what the legislature will be doing to the cities relative to budget cuts. He added the second question is the response from the citizens on the upcoming survey for a community/civic center. He added that the legislature is proposing a cut, but the City' s financial situation changes each year due to the amount of dollars that can be levied so the City should be able to adapt to these cuts. The Committee of the Whole recessed at 10: 15 p.m. The Committee of the Whole reconvened at 10: 30 p.m. Staff asked for direction on how to proceed with a conceptual image study for the downtown area north of 1st Avenue. Staff also requested a recommendation from the Committee relative to the parking lot in back of City Hall whose lease will expire in April 1992 . The Assistant City Administrator suggested speaking with MnDOT to amend the lease agreement for continued use of the parking lot behind City Hall. Duane Wermerskirchen questioned what had happened to the $175, 000 the City had received for the purchase of the parking spaces behind City Hall. Cncl. Sweeney stated that since the City already owns land available for parking, he saw no need in spending funds to purchase additional parking space. He added he believes the $175, 000 could be put to better use for the City. He added that at this time, it ' s undetermined where the parking needs will be for the City. The Assistant City Administrator stated that what the Downtown Committee had recommended was to purchase the Pelham Hotel property for parking. Cncl. Sweeney stated that according to the Downtown Committee, they would like the Downtown alleys improved with underground utility installation. He requested a priority level from the Downtown Committee. Bill Wermerskirchen stated that the parking that is available on the north side of 1st Avenue is not being used by the residents due to the inconvenient location. The people want to park close to • Official Proceedings of the March 31, 1992 Committee of the Whole Page -6- where they shop. He added the real issue is how useful are the parking lots. Discussion was held on what should be done with the north side of 1st Avenue. Some suggestions were: 1) Rehabilitation to the buildings; 2) Park area; 3) Retail use in combination with multi- family use; 4) Senior citizen housing. It was the consensus of the Committee that any redeveloped structure should have two fronts. Bill Wermerskirchen stated that something just has to be done with this block and the timing is now because over 18 years of study have not produced any results to this area. He stated this is a City problem, not just a downtown problem. The Committee requested a study from staff noting pros and cons for the alternatives and funding options available. They requested staff review the options given and research other alternatives. They also requested that information be presented noting the kind of tax revenue end result. This information to be presented to the Housing and Redevelopment Authority. The Committee of the Whole adjourned at 11: 05 p.m. (lac) J d th S. Cox it Clerk Jane VanMaldeghem Recording Secretary OFFICIAL PROCEEDINGS OF THE CITY COUNCIL SHAKOPEE, MINNESOTA COMMITTEE OF THE WHOLE APRIL 14 , 1992 Mayor Laurent called the meeting to order at 7: 05 p.m. at the Fire Station. Councilmembers Michael Beard, and Gloria Vierling were present and Councilmembers Joan Lynch and Bob Sweeney were absent. Also present were Dennis R. Kraft, City Administrator; and Gregg Voxland, Finance Director. Fire Department personnel in attendance were Frank Ries, Chief; Mark Huge, First Assistant Chief; Terry Link, Second Assistant Chief; Dave Judd, First Captain and Training Officer; Joe Ries, Former Chief; Mary Altmann, Second Captain; Rick Coleman, Fourth Captain; and Todd Schwartz . Introductory comments were made by Chief Ries and following that Training Officer David Judd presented a history of the Fire Department and it ' s activities from 1883 to the present. The presentation included detailed information on how the Fire Department operates along with the planning and decision making_ processes that are utilized by the Fire Department. There was also discussion of the operational plan for 1992 followed by dialogue between Councilmembers and the Fire Department. It was reported that along with the 5 year plan the Fire Department also intends to develop a longer range 20 - 25 year plan. The Fire Department will be providing a quarterly report to the City Council which will highlight the department ' s activities for the previous quarter. This will be done in conjunction with the continued preparation of an annual report. A tour of the Fire Department was conducted including an explanation of how the various pieces of equipment operate and the purpose of each. In conclusion, the Committee of the Whole agreed that there did not appear to be need for further meetings at this time and that the Fire Department had responded in a comprehensive and positive manner in addressing Councilmember concerns relative to Fire Department operations. The need for the purchase of land for a second station was also discussed and the subject will be addressed in the near future. Mayor Laurent adjourned the meeting at 10 : 22 p.m. Dennis R. Kraft, City Administrator Recording Secretary OFFICIAL PROCEEDINGS OF THE CITY COUNCIL SHAKOPEE, MINNESOTA COMMITTEE OF THE WHOLE APRIL 16, 1992 Mayor Laurent called the meeting to order at 8 : 35 A.M. in the downstairs meeting room at the Marquette Bank, 129 So. Holmes. Present were Councilmembers Robert Sweeney, Gloria Vierling, and Michael Beard. Councilmember Joan Lynch was absent. Also present were Dennis R. Kraft, City Administrator; Barry Stock, Assistant City Administrator; Karen Marty, City Attorney; Judith S. Cox, City Clerk; Dave Hutton, Public Works Director; Lindberg Ekola, City Planner; Gregg Voxland, Finance Officer; and Jack Boarman, Boarman Kroos Pfister & Associates, Inc. The City Administrator stated that the location and size of the council chambers in the new city hall needs to be identified. The joint prosecution operation currently on the main floor will be relocated to the basement in conjunction with our move. He also stated that the current plan is to continue to rent to Capesius at their present location. Mr. Boarman reviewed the tentative layout for offices and meeting areas on the main floor of the new city hall site at the Marquette Bank. He explained that the plan was to maximize what the building has to offer with a minimum of expense. Discussion ensued on where to locate the council chambers. One possible location is in the basement in the current meeting room. It would be expanded to the west and a hall would be added along the south. The posts would be moved. If there is a desire to have a higher ceiling, the floor would have to be lowered, which may or may not be possible depending upon whether or not there is limestone under the building. Another location would be on the main floor. Cncl.Beard prefers to have the council chambers on the main floor, but if it is located in the basement he would like it to be theater seating. Discussion ensued on the pros and cons of locating the council chambers on the main floor versus in the basement. General consensus was to continue working on the plans to accommodate the council chambers in the basement. Discussion also took place on remodeling the offices to make them and personnel more accessible to the public, unlike the layout of the county offices. Mr. Boarman was directed to come up with some cost estimates for the building changes discussed. Mayor Laurent adjourned the meeting at 9 : 50 A.M. ita, J ex., J dith S. Cox C 'ty Clerk Recording Secretary MEMO TO: Dennis Kraft, City Administrator FROM: Dave Hutton, Public Works Director SUBJECT: Special Assessment Policy DATE: April 23, 1992 INTRODUCTION & BACKGROUND: It is my understanding that the City Council desires to discuss the Special Assessment Policy at the April 28th Committee of the Whole meeting. Several issues pertaining to the Special Assessment Policy were brought up at the Muhlenhardt Road public hearing, but staff is of the understanding that the City Council desires to discuss the Special Assessment Policies in a general sense, rather than project specific. DISCUSSION: Enclosed for City Council benefit is the current Special Assessment Policy. It should be pointed out that in addition to the policy itself, there are other numerous administrative policies and resolutions amending or clarifying specific criteria in the policy. Staff has researched all of the various other policies and resolutions and recommends consolidating all of them into one comprehensive document. The first portion of the Special Assessment Policy (Pages 1-11) discuss general assessment policies. This section covers such items as eligible improvements, initiation, public improvement procedures, financing, policies, methods and standards. The second portion of the policy (Pages 12-18) discusses the specific formulas that should be used in apportioning the assessments. In regards to the various other administrative policies and resolutions, Attachment No. 1 lists those items and the subject contained in each. Staff has not provided copies of these to Council at this time. These can be provided if requested. ISSUES: Staff is uncertain as to the extent City Council wishes to discuss the Special Assessment Policies at the April 28, 1992 meeting. Therefore, staff has elected to list several of the issues that periodically come up at public meetings. The City Council can then elect only to discuss and review those policies desired for revision, clarification, deletion or amendment. 1. Benefit Appraisals Should the City consider utilizing benefit appraisals for assessments that appear questionable in regards to the State law? Staff feels this is a good tool to use to provide documentation to defend any high assessments. If this policy is discussed by the City Council, the following options would be available. a. Perform benefit appraisals on select properties that staff determines has a proposed assessment that is questionable for the purposes of avoiding appeals, costly litigation and possibly establishing the maximum assessment amount. b. Perform benefit appraisals on all properties proposed to be assessed. Staff feels that this would only result in needlessly raising the total project costs, when it is apparent that the majority of proposed assessments are reasonable and defendable. c. Perform no benefit appraisals prior to assessing a project and simply wait for any appeals before obtaining this data. This option would undoubtedly increase the costs due to legal fees, court costs, etc. above and beyond the costs of obtaining a benefit appraisal. Staff believes that Option A provides the City the most flexibility in complying with the State law at the lowest cost and would be a reasonable policy to adopt and administer. In fact, benefit appraisals have been done on selected properties on two recent projects (2nd Avenue, 5th Avenue) due to the proposed high assessments. 2. Updating and Improving Gravel Streets The current practice is to assess these upgrades 100%. The actual assessment policy does not specify this, but instead indicates that new street construction is 100% assessed and street reconstructions will be 25% assessed. Several years ago when the City Council first started reconstructing gravel roads in urban Shakopee, the Council discussed this and determined that upgrading gravel streets would be defined as new street construction. Several projects since then have been subject to this policy (Adams Street, 2nd Avenue) establishing a precedence of some sort. Staff feels that the City Council may want to review and expand this policy to discuss urban roads versus rural roads. It's important to differentiate between the two because an urban gravel street has a much higher density (i.e. 10 assessable lots per 300 feet of road) as opposed to rural gravel roads that have extremely large parcels abutting them having anywhere from 1000 ' to 2500 ' of frontage on the road and often times little or no access (such as Pike Lake Road, Valley View Road and Muhlenhardt Road for example) . It would be impossible to assess upgrading rural gravel roads 100% and defend the assessments in court. The assessments would be astronomically high in most cases. This is the reason the County is unable to assess any of their projects. Therefore, staff feels that the policy should differentiate between the rural and the urban situation. Since the amount of gravel roads in urban Shakopee is decreasing and possibly could all be paved within the next several years based on the current Capital Improvement Plan, the rural gravel road policy will soon be the only issue. If the Council desires to formulate a rural, gravel road policy the following options may be available. A. Assess 100% B. Assess 25% (define these roads as existing and therefore are street reconstructions) C. Assess 0% D. Assess only those costs associated with the new improvements added (i.e. pavement, curb, etc. ) but not the existing roadbed (gravel) which typically needs reconstructing. Staff feels that for rural upgrades of gravel roads, Option D would be a reasonable approach. Even using this option, the defendability of any rural assessments may be questionable due to the large properties fronting these roads. 3. Collector Street Assessments Collector streets are sometimes difficult to assess because quite often there are no direct accesses (driveways) to collector streets. Typically, local streets would serve all lots off the collector and the properties in the area would normally pay for the local streets anyway (either by their lot costs or assessed) Should the City Council continue to assess collector streets or not? 4. Zonal Assessments/Corner Lot Adjustment In urban Shakopee, the Council has elected to utilize the zonal assessment method of spreading out the side street reconstruction costs. This is one of the corner lot adjustment methods outlined on Page 14 of the Special Assessment Policy (Item 3b) . This policy is often quite difficult for residents to understand, especially when they do not even abut the street in question. Does the City Council wish to reconsider this policy or maintain it? 5. Alley Reconstructions Some of the paved alleys in Shakopee are in need of reconstruction. The current policy does not address the assessments on alley reconstructions. Staff feels that the 25% street reconstruction policy should be applied to alleys. 6. Storm Sewer Oversizing Costs This issue came up during the culvert issue on the Meadows 7th Subdivision. Should the City adopt a policy to pay for all storm sewer oversizing costs, above and beyond what is required for the actual development? Currently, there are existing policies dealing with oversized sanitary sewer and watermain and staff could support a storm sewer oversizing policy. ACTION REQUESTED: Discuss and provide staff with direction on the above issues and any other special assessment issues. ATTACHMENT NO. 1 ADDITIONAL RESOLUTIONS/ADMINISTRATIVE POLICIES Resolution No. Date Adopted Title/Description 2278 7/3/84 Street Reconstruction Policy (Establishes 25% as the assessment for street reconstructions) 1791 2/3/81 Adopting a trunk water assessment policy pursuant to the SPDC policy. This is adjusted annually based on the new SPDC trunk water rates. 1298 8/15/78 Established a double assessment rate for non- residential property. 3377 4/2/91 Repealed the above Resolution No. 1298. Admin. Policy No. Date Adopted Title/Description 200 8/20/91 Established assessment agreement to offset assessments with condemnation awards. 80 9/10/82 Assessment presentation by SPUC manager illustrating a typical watermain calculation. 75 8/3/82 Establishing values of vacant lots (Resolution No. 2032) 74 8/3/82 Establishing 1982 assessment policy (Resolution 2033) 37 6/10/81 Policy for assessment splits due to property subdividing. 12 10/7/80 Senior Citizen Hardship and Deferral (Resolution No. 1713) Admin. Policy No. Date Adopted Title/Description 141 6/30/86 Regarding City Council discussion on utility relocations. 52 9/16/81 Procedures for assessment appeals. 20 2/13/81 Assessing improvements prior to letting a contract. 4 4/1/80 Reconstruction Policy (Resolution No. 1591) . • PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENT POLICIES FOR THE CITY OF SHAKOPEE SHAKOPEE, MINNESOTA Proposed Draft April 28, 1978 May 11 , 1978 (2nd Revision) Hay 26, 1978 (3rd Revision) August 1 , 1978 Adopted RESOLUTION ESTABLISHING POLICIES REGARDING THE MAKING OF PUBLIC IMPROVEMENT PROJECTS AND ESTABLISHING POLICIES FOR THE LEVYING OF SPECIAL ASSESSMENTS THEREFORE. WHEREAS, the State Law assigns to the City Council the responsibility for making public improvements and; WHEREAS, it has been and continues to be the policy of the Cit Council that when such improvements are made which are of special benefit to certain areas, special assessments are levied for benefits received; and WHEREAS, the procedures used by the City are those specified by Minnesota Statutes, Chapter 42.9, which statutes provide that all, or a part, of the cost of improvements may be assessed against benefitting properties in accordance with the benefits received, but establishes no statutory guide as to how these benefits are measured or how the costs are to be apportioned; and WHEREAS, actual apportionments are made in accordance with policies adopted by the Council; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that the following shall constitute a statement of general policies of this Council regarding improvements and assessments, and shall continue until amended by appropriate Council action. It is intended that this policy shall be applicable to all lands within the City, platted or unplatted, and shall be com- plementary to the City' s subdivision regulations. BE IT FURTHER RESOLVED, that in the event the literal applicat of the provisions outlined herein would result in a inequitable distribution of special assessments, the City Council reserves the right to adjust the policy so as to achieve a more equitable distri- bution without formal amendment of this resolution. i GENERAL ASSESSMENT POLICIES ii `.. I . DEFINITION OF IMPROVEMENTS ELIGIBLE FOR SPECIAL ASSESSMENT A. The fcllowing public improvements, being authorized by Minnesota Statutes 429.021 , are hereby defined as being eligible for special assessment within the City of Shakopee. 1 . Acquiring, opening and widening streets and alleys ; constructing, reconstructing and maintaining side- walks, streets , gutters, curbs , and vehicle parking strips . Included in such projects may be charges for beautification, storm sewers or other street drainage inlet systems , and installation of connections from utilities to property lines . 2 . Construction, reconstruction & extension of waterworks systems . This includes all appurtenances of a water- works system, including treatment plants . 3 . Construction and reconstruction of sanitary sewer sys- tems. Also included may be outlets, treatment plants, pumps, lift stations, and other appurtenances . 4. Planting, trimming, care and removal of street trees . 5 . Construction and reconstruction of storm sewer systems. Also included may be outlets, treatment plants, pumps, lift stations and other appurtenances . 6 . Installation, replacement and extension of street lighting . 7 . Acquisition and improvement of land and purchase of equipment for parks, playgrounds , and recreational facilities . 8. Acquisition and construction of parking lots. 9 . Construction, reconstruction and extension of dikes and other flood control works . 1C . Construction, reconstruction, extension and maintenance of retaining and area walls . 11 . Abating nuisances; including, but not limited to, drain- ing and filling swamps, marshces and ponds on public or private property. 12 . Installation, replacement and extension of street signs. (1) I . Continued B . The City of Shakopee also retains authority to recover, through special assessment, the following maintenance costs : 1 . Snow, ice and rubbish removal from sidewalks . 2. Weed elimination from street and private property. 3 . Street lighting, sprinkling, dust treatment, surfac- ing and patching. 4. Repair of sidewalks. 5 . Care of trees and removal of diseased and/or unsound trees. II . INITIATION OF PUBLIC IMPROVEMENT PROJECTS Public improvement projects may be initiated by petition of at least 35% of the affected property owners . Such petitions will be received by the City Council until the first day of February of each year for inclusion in that year' s capital improvement program. Petitions for public improvements submitted after that date will be received and acted upon during the year only by special consent of the City Council , or will be received and considered for the capital improvement program of a subsequent year. Public improvements may also be initiated by the City Council when, in its judgement, such action is required . (2) ■ • III . PUBLIC IMPROVEMENT PROCEDURES The following is the general procedure which will be followed by the City Council for all public improbement projects 'from initiation of such a project through certi- fication of the assessment role to the County Auditor. For- mats for the various reports and resolutions referenced in this section are , hereby, made a part of these policies and procedures of the City of Shakopee . STAFF FUNCTIONS COUNCIL FUNCTIONS 1 . Review petition for submission 2 . Accept petition Initiate to Council and submit to the and order prep- project on Public Utility Commission for aration of feas- basis of written comment . ibility report OR Council de- sire , citi- zen request . or other agency re- 3 . Prepare feasibility report , or quest . review report submitted by 4. Accept feasibilityreport and other agency . Send report to the P Public Utilities Comm. order public hearing. 5 . Publish hearing notice, mail 6 . Conduct public hearing, adopt notice to property owners . resolution ordering improvement to be constructed and advertise- ment of bids . A sale of bonds to finance project costs may be initiated at any time after the public hearing is conducted . 7 . Prepare final plans , advertise for and open bids, prepare bid 8. Award contract based on bids tabulation, and make recommenda- received. tion for award . 9 . Supervise construction, prepare 10. Review assessment schedule( s) payments , and prepare assess- and order assessment hearing( s) . ment rolls . 11 . Publish hearing notice, mail no- 12 . Conduct assessment hearing,adopt tice of hearing date( s) and resolution adopting assessment assessments to property owners . roll and authorize certification to County Auditor. 13 . Certify assessments to County Auditor. (3) • IV. FINANCING OF PUBLIC IMPROVEMENTS A. Goals and Justification of Policy It is the intent of the City of Shakopee to encourage public improvement projects as the area(s) benefiting and needing such improvements develop. Examples of this policy can be seen through the subdivision regulations , zoning ordinance , and building codes. New areas are re- quired to provide needed improvements and services before development , thereby not creating unexpected hardships on the property owners purchasing such property nor on the general public . However, it is recognized that certain areas of the City have developed without all needed public improvements (e .g. - parks , water, sewer, and street im- provements) and that methods must be found to provide these improvements without causing undue hardships on the general public or the individual property owner. Special assessments are generally accepted as a means by which areas can obtain improvements or services , however, the method of financing these is a critical factor to both the City and the property owner. Full project costs spread over a very short term can cause an undue hardship on the property owner and, likewise, City costs and systems costs spread over a long period of time can produce an undue hardship on the general public of the City. It is the policy of the City to not defer assessments except in cases where senior citizens are involved. (4) V. ASSESSMENT POLICIES APPLICABLE TO ALL TYPES OF IMPROVEMENTS Where an improvement is constructed which is of special benefit to properties within a definable area , it is the intent of the City Council that special assessments be levied against the benefited properties within that area to the extent that the costs of such project can be deemed to benefit the properties . The following general principles shall be used as a basis of the City' s assessment policy: 1 . The "project cost" of an improvement shall be deemed to include the costs of all necessary construction work re- quired to accomplish the improvement , plus engineering, legal , administrative, financing and other contingent costs , including acquisition of right of way and property. The financing charges shall include all applicable costs of financing the project . These costs include but are not limited to - financial consultant ' s fees, Moody' s fee, bond attorney' s fees and capitalized interest . When the project is started and funds are expended prior to receiving the proceeds from a bond sale , the project will be charged in- terest on the funds expended from the date of expenditure to the date the bond proceeds are received . The interest rate charged will be the average interest rate earned by the City ' s investments during the six months preceeding the receipt of the bond proceeds. The interest charged to the project shall be included as financing charges . 2 . Interest Rate - The City of Shakopee will charge interest on special assessments at a rate specified in the resolu- tion. The interest rate shall be two percent (2%) more than the average interest rate of the bonds sold to finance the improvement project . The interest rate shall be round- ed to the nearest quarter of a percent . The interest rate shall not exceed the maximum rate allowed by state law. 3 . Property owners may pay their assessments in full (interest free) for a period of 30 days after the assessment hearing. After such period interest shall be computed from the date specified in the assessment resolution. The City will cert- ify each year' s collection (principal and interest) to the County Auditor by October 10. Prior to the first certifi- cation of principal and interest to the County Auditor, a property owner may make a partial pre-payment of the prin- cipal to the City of Shakopee . Such partial pre-payment shall be a minimum amount of $100 .00. If the partial pre- payment is made after the 30 day "interest free" period allowed by state law, interest will be charged on the amount of the partial pre-payment from the date specified in the resolution and paid along with the partial pre-payment . After the City of Shakopee has made the first certification of principal and interest to the County Auditor, pre-payment will be accepted only for the remaining principal balance plus any interest . If a parcel has two or more separate special assessments , pre-payment of the remaining principal (5) V. Continued 3 . balance may be made on one or more . Provided, however, tax exempt parcels such as churches , school districts, and other public tax exempt buildings will be allowed to make a partial pre-payment at any time during the term of the special assess- ment . The minimum partial pre-payment shall be one half of the principal balance at the time of pre-payment . The tax exempt parcel will be allowed to make only one partial pre- payment during the term of the special assessment . The re- maining principal after the partial pre-payment will be paid in equal installments over the remaining term of the special assessments . A tax exempt parcel will also be allowed to make a partial pre-payment prior to the first certification to the County Auditor. 4. Where the current improvement is installed as an extention of an existing improvement in which the City, through the use of courses other than special assessments, has partici- pated in the costs of such existing system, and where the area served by such current improvement can be shown to benefit directly from the City' s prior expenditures, the special assessments levied against the properties served by the newly extended improvement may include a "system charge" equal to that portion of the City' s prior expenditures which, in the opinion of the City Council , are chargeable to the area served by the current extension. Whenever the City intends to include a "system charge" as a part of the assessable cost for an improvement , the notices of public hearing sent to the property owners prior to the making of the improvement shall specify the total amount of such "system charge" to be made against the proposed improvement . 5 . Where an improvement is designed for service of an area beyond that of direct benefit, increased project costs due to such provisions for future service extensions may be funded by the City as a "system cost ." This "system cost" may be funded by the City to be assessed as a "system charge" together with direct benefits for lateral utility lines as stated in paragraph 4, above, or may be assessed to the area of future benefit immediately. 6 . Where the project cost of an improvement is not entirely attributable to the need for service to the area served by said improvement , or where unusual conditions beyond the control of the owners of the property in the area served by the improvement would result in an inequitable distribution of special assessments , the City, through the use of other funds, may pay such "City cost" which, in the opinion of the City Council , represents the excess cost not directly attri- - butable to the area served. (6) V. Continued 7 . Because frontage roads along highways or other arterial streets are deemed to be of benefit to commercial or in- dustrial properties, the entire costs of any improvement on such frontage roads shall be assessable to the benefited properties, even if only those properties on one side of such frontage roads are benefited . Single-family resi- dences may be excluded from this requirement. 8. If financial assistance is received by the City from the Federal Government , from the State of Minnesota, or from any other source to defray a portion of the costs of a given improvement , such aid will be used first to reduce the "City cost" of the improvement . If the financial assistance received is greater than the normal "City cost" , the remainder of the aid will be used to reduce the special assessments against the benefiting properties , such reduc- tions to be applied on a pro rata basis . 9 . The "assessable cost" of an improvement shall be defined as being those costs which, in the opinion of the City Council are attributable to the need for service in the area served by the improvement . Said "assessable cost" shall be equal to the "project cost" of the current pro- ject minus the "City cost" as defined above, minus other financial assistance credited as described above . 10. City-owned properties , including municipal building sites, • parks and playgrounds, but not including public streets and alleys , shall be regarded as being assessable on the same basis as if such property was privately owned. 11 . Improvements specifically designed for or shown to be of direct benefit to one or more properties may be constructed by the City, and the costs for such assessed directly to such properties , and not included in the assessment rates for the remainder of the project. (7) VI . METHODS OF ASSESSMENT A. Goals and Justification of Policy The City of Shakopee realizing that there are different methods of assessment - i.e. per lot, adjusted front foot, and area - and also realizing that for any particular project any one of these methods could more adequately reflect the true benefits received in the ass- essment area, hereby establishes all of these methods - per lot, adjusted front footage, and area - as possible methods by which any benefited area may be assessed. The deter- mination of which method should be used for any particular assessment shall be reviewed by the engineer in his feasi- bility study to the Council and, based upon this study, shall make a recommendation to the Council for which method would best reflect the benefit received principle for the area to be assessed. The specific application of these methods to ass- essing any type of improvement is defined in the specific section governing "methods of assessment for public improvements projects" in Section II of this document. The purpose of stating these methods of assessment as general policies for the City of Shakopee is to insure that the City Council will have the opportunity to review and decide which of these methods would most adequately and reasonably reflect the true benefits received by each parcel within the benefited area, and use a method of assessment which would be reflective of this. B. Policy Statement The following methods of assessment, as described and defined below, are hereby established as the official methods of assessment in the City of Shakopee: 1. "Adjusted" Front Footage" method of assessment The "cost per adjusted front foot" shall be defined as - the quotient of the "assessable cost" (::s defined in Section V Assessment Policies Applicable to all Types of Improvements) divided by the total assessable frontage benefiting from the improvement shall be as defined or described in the "Specific Assessment Practices Section(s) " for such improvement(s) . For the purpose of determining the "assessable frontage", all properties, including governmental agencies, shall have their frontages included in such calculation. Not to be included in such calculations are public rights- of - way for pedestrian or vehicular traffic. (8) • VI . Continued 2 . "Area" Method of Assessment : The "cost per square foot" shall be defined as - the quotient quotient of "assessable cost" (as defined in Section V) di- vided by the total assessable area benefiting from the im- provement . The determination of the "total assessable area" benefiting from any type of improvement shall be as defined or described in the "Specific Assessment Practices Sections" for such improvement( s) . For the purpose of determining the "assess- able area" , all properties including governmental agencies shall have their area included in such calculation. Not to be included in such calculations are public right-of-way, pedestrian or vehicular traffic . The "cost per square foot" , as calculated in the manner de- scribed above , multiplied times each parcel "assessable area" shall produce the total cost per parcel ; the total of all parcels assessed being the "total assessable cost" for the improvement . 3 . "Per Lot" Method of Assessment: The "cost per lot" shall be defined as - the quotient of the "assessable cost" (as defined in Section V) divided by the total assessable lots or parcels benefiting from the improve- ment . The determination of the "lots or parcels" benefiting from any type of improvement shall be as defined or described in the "Specific Assessment Practices Sections" for such im- provement( s) . For the purpose of determining the "lots" or "parcels" all parcels, including governmental agencies shall shall be included in such calculations . Not to be included in such calculations are public right-of-way, pedestrian or vehicular traffic . The "cost per lot" as calculated in the manner described above, multiplied times each "lot" or "parcel" shall produce the total cost per parcel ; the total of all parcels assessed being the "total assessment cost" for the improvement . (9) VII. STANDARDS FOR PUBLIC IMPROVEMENTS PROJECTS The following standards are hereby established by the City of Shakopee to provide a uniform guide for improvements within the City and also to be used by the City Engineer in establish- ing "systems costs" as differentiated from "assessable costs" and "City costs . " Surface Improvements: Surface improvements shall normally be interpreted to include all improvements within the right-of-way, such as trees, lighting, sidewalks , signing ; street 4nd accessary improvements such as surfacing, curb and gutter, drainage facilities , grading, signalization; and other public improvements such as drainage ponds and facilities, parking lots , parks and playgrounds . The above examples shall not be interpreted to be all inclusive of surface improvements . A. Goals and Justification of Policy All surface improvements should be constructed so as to se- cure the maximum protection of health and safety for the general public while attempting to achieve the equally impor- tant goals of creating a desirable aesthetic community in such a manner as to meet social , economic and environmental objectives . The City sets a functional street system and states approx- imate guidelines for construction. These guidelines shall be used for future street construction. B . Policy Statement In all streets , prior to street construction and surfacing, or prior to resurfacing, all utilities and utility service lines, (including sanitarysewers , storm sewers, water lines , gas and electric service) shall be installed to serve each known or assumed building location when practicable . When practicable, no surface improvements to less than both sides of a full block of street shall be approved except as necessary to complete the improvement of a block which has previously been partially completed. Concrete curbing or curb and gutter shall be installed at the same time as street surfacing, except that where a permanent "rural" street design is approved by the City Council , curbs will not be required . (10) • VII . Continued Subsurface Improvements Subsurface improvements shall normally include such items as water distribution, sanitary sewer and storm sewer lines and electric and gas utilities. A. Goals and Justification of Policy The goal of subsurface improvements is to provide specific public utility service systems which least alter the natural environment of the community while at the same time secure maximum protection of health and safety with adequate and efficient service at a fair and equitable distribution of benefits and costs. B . Policy Statement Subsurface improvements shall be made to serve current and projected land use. All installations shall conform to standards as established by those state and/or federal agen- cies having jurisdiction over the proposed installations . All installations shall also comply, to the maximum extent feasible , to such quasi-official , nationally recognized, standards as those of the American Insurance Association (formerly National Board of Fire Underwriters) . Service lines from the lateral or trunk to the the property ine for each known or assumed building location shall be in- stalled in conjunction with the construction of the mains. (11) SPECIFIC ASSESSMENT POLICIES (12) VIII . POLICIES AND PROCEDURES FOR ASSESSING SURFACE IMPROVEMENTS Cost of construction of streets shall be assessed based on the minimum design strength of 7-ton axle load in residential areas and 9-ton in commercial and industrial areas . All design con- sideration shall be as determined by the City Engineer. Costs which are incurred in excess of the above may be paid by: (1) State Aid Funds, (2) Larger assessment rates to other benefited properties, (3) General Obligation Funds, or (4) any cther methcd or combination of methods authorized by the City Council . Street widths or design strength for streets fronting on bene- fiting properties other than single family cannot be establish- ed as a general policy, as such factors are directly related to the proposed land use and traffic generation. Assessable costs for street improvements benefiting properties other than single family shall normally be 100% of the assessable costs , however, the City Council may determine a portion of the costa are to be paid by: (1) State Aid or other grant monies , (2) Gen- eral Obligation Funds, (3) special districts, or (4) any other method or combination of methods established . Street , curb and gutter, and sidewalk improvements will normally be assessed by the adjusted front foot method; however, the "per lot" method and "area" method may be utilized if conditions warrant A. Adjusted Front Footage Method 1 . Rectangular Interior Lots The rectangula-r lot is defined as having no more than 2 .0 feet difference between the front and back lot line . The adjusted front footage is the actual front footage of the lot . For rectangular lots whose frontage is greater than its depth, the "odd shaped lot" method as explained next shall be used. 2 . Odd Shaped Lot For odd shaped lots such as exist on cul-de-sacs, curved streets , etc . , and where there is more than 2 .0 feet of difference between the front and back lot lines the "odd shaped lot" method of determining the adjusted front footage shall be used . The adjusted front footage shall be computed by dividing the area of the lot by 9 ,000 to determine the equivalent number of front footage units in the parcel . The number of units multiplied by 60 feet will give the adjusted front footage. The area shall be computed to a maximum depth of 150 feet only . (13) VIII . Continued �., 3 . Corner Lot (Odd Lot) a . 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. b. Alternate method #1 All lots within the block in question will be assessed equally for long side street improve- ments . Short side street improvements will be assessed for the full frontage . c . Alternate method #2 100% of the adjusted footage cost for all utili- ties on the short side of the lot . 25`/0 of the adjusted footage cost on the long side of the lot . This will not exceed 1C0 feet of credit for the lot in question. B . Per Lct Method When it is determined to assess by the "per lot" method, the following procedures shall be used: 1 . All lots shall be assessed equally. C. Area Method When it is determined to assess by the "area" method, ::he following procedure shall be used: 1 . Each parcel shall be assessed based on the number of square feet of area within its boundary. (14) IX. POLICIES AND PROCEDURES FOR ASSESSING SUBSURFACE IMPROVEMENTS Storm sewer assessments shall normally be by the "area" method . Storm sewers shall be assessed at a rate of a 50% policy as herein described . A. Storm sewer benefits will be assessed separately for trunk benefits and lateral benefits . B. Platted and/or Developed Land as of 8-10-76 Cost of trunk and lateral : 1 . 50% of the cost will be raised from General Obligation Taxes . 2 . 50% of the cost will be raised from Special Assessments C . Unplatted and/or Undeveloped Land Cost of laterals : 100% of the cost will be assessed to private or public property (but not public right-of-way) . Cost of trunk 1 . 50% of the cost will be raised from General Obligation Taxes . 2 . 50% of the cost will be raised from Special Assessments. Specific Provisions A. Any publicly owned off street , non right-of-way property will be assessed as private property and included as part of the 50% assessed portion. B. Any revenue received from other governmental units for public right-of-way will be used as general obligation revenue . C . Property zoned or used as other than single and double family residential land and park land will be assessed at twice the rate of single and double family residential land and park land . D. Credit will be given for any previous storm sewer assessments less than 25 years old at the date of assessments in both the platted and newly developed areas. (15) • IX. Continued Assessments for watermain and sanitary sewer shall be based upon the cost of construction of 6-inch and 8-inch mains respectively, which is the smallest now normally installed in a residential area of the City. Assessments for water and sewer in commercial and industrial areas will be based upon 8-inch mains . When watermain looping benefits have been approved by the City' s Public Utility Commission, a portion of the cost of completing said work will be paid by said utility . Costs due to larger mains and appurtenances may be paid for by a combination of availability charges , user charges and general obligation funds . Services installed to individual properties shall be fully assessed to the benefiting property. The various methods of assessments are as follows : A. Adjusted Front Footage Method (Water and Sanitary Sewer) When assessment is to be determined by the adjusted front footage method, each parcel shall be assessed for improve- ments as hereinafter stated . 1 . Rectangular Interior Lots The rectangular lot is defined as having no more than 2 .0 feet difference between the front and back lot lines . The adjusted front footage is the actual front footage of the lot . For rectangular lots whose frontage is greater than its depth, the "odd shaped lot" method as explained below shall be used . 2 . Odd Shaped Lots (Unit Bases) For odd shaped lots , such as exist on cul-de-sacs, curved streets, etc . ; and where there is more than 2 .0 feet of difference between the front and back lot lines , the "odd shaped lot" method of determining the adjusted front foot- age shall be used . The adjusted front footage shall be computed by dividing the area of the lot by 9,000 to determine the equivalent number of front footage units in the parcel . The number of units multiplied by 60 feet will give the adjusted front footage . The area shall be computed to a maximum depth of 150 feet only. (16) IX. Continued 3 . Corner Lot (Odd lot) a . Corner lots will only be assessed at a rate of 50% of the unit rate for the lot in question for the short side for each street improved . If both streets are improved simultaneously, 100% assess— ment rate per unit will be used . b. Alternate method #1 All lots within the block in question will be assessed equally for long side street improvements . Short side street improvement will be as shown in (a) above. c . Alternate method #2 100% of the adjusted footage cost for all utilities on the short side of the lot . 25% of the adjusted footage cost on the long side of the lot . This will not exceed 100 feet of credit for the lot in question. B. Per Lot Method When it is determined to assess by the "per lot" method, the following procedures shall be used: • 1 . All lots shall be assessed equally. C. Area Method When it is determined to assess by the "area" method, the following procedure shall be used : 1 . Each parcel shall be assessed based on the number of square feet of area within its boundary. CJH/klk (17) X. POLICIES OF RE-ASSESSMENT A. Goals and Justification of Policy: The design and construction of public improvement projects must be a weighing process cf the desired service life of any improvement to the expected cost of construction to attain that service life . The goal of the City of Shakopee in designing public improvements shall therefore be to design such improvement to last a reasonable service life . As such, it is recognized that reconstruction and re-assessment must occur at the end of this service life . This policy shall further imply that it shall be the City' s responsibility to insure that the actual life of the improvement is at a minimum equal to the designed service life, reasonable and equitable methods cf re-assessment must be established to insure that the public obtains the benefit for which they have paid . To implement these goals , the City of Shakopee in constructing or reconstructing any public improvement shall design such improvement to last for a definate period . The life expectancy or service life shall be as stated in part "B" of this section, or if different , shall be as stated in the Resolution ordering improvement and preparation of plans . When such project needs renewing or replacement, the amount to be re-assessed against the property owner for such renewing or replacing shall be credited for that portion of the original assessed `.. amount based on a ratio of actual life of the original improvement to the expected service life of the original improvement . B. Policy Statement : For the purpose of re-assessment, the following are hereby established as the "life expectancies" of "service lives" of public improvements - unless otherwise stated in the resolution ordering improvement and preparation of plans, in which case, the life set forth in the resolution shall govern. 1 . Sidewalks - 20 years 2 . Street improvements, including surfacing and curb and gutter - 20 year 3 . Ornamental street lighting - 20 years 4 . Water Mains - 30 years 5 . Sanitary Sewers - 30 years 6 . Storm Sewers - 30 years All of the forementioned "service lives" are related to and based upon the standards for these projects as stated in section VII , Standards for Public Improvements Projects. Standards differing from these shall , therefore, require a different service life . (18) RESOLUTION NO. 1298 A RESOLUTION AMENDING RES. NO. 1282 , ADOPTING A PUBLIC IMPROVEMENT ASSESSMENT POLICY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA THAT RESOLUTION NO. 1298 be and the same is hereby amended as follows : Section IX. Policies and Procedures for Assessing Subsurface Improvements ; Specific Provisions : "C" "Property zoned or used as other than single and double family residential land and park land will be assessed at twice the rate of single and double family residential land and park land; Except that all that property zoned as other than single and double family residential land, but used for single or double family residential , and adjoining homesteaded property not in excess of two acres , will be assessed the normal rate ." Adopted in adjourned regular session of the City Council of the City of Shakopee , Minnesota, held this 15th day of August , 1978. Mayor of the 'City of Shakopee ATTEST: / )//e2-7.4— Citi C er l Approved as to form this 1$' day of August , 1978. City ttorne RESOLUTION NO. 3377 A RESOLUTION REPEALING RESOLUTION NO. 1298 WHICH AMENDED THE PUBLIC IMPROVEMENT ASSESSMENT POLICY WHEREAS, the City Council has adopted a special assessment policy for assessing the cost for public improvements; and WHEREAS, Resolution No. 1298 amended the Public Improvement Assessment Policy to charge a double assessment for subsurface improvements; and WHEREAS, no reason remains for the double assessment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, That Resolution No. 1298, A Resolution Amending Resolution No. 1282, Adopting A Public Improvement Assessment Policy, is hereby repealed in its entirety. Adopted in regular session of the City Council of the City of Shakopee, Minnesota, held this 2nd day of April, 1991. Mayorof'tri' C't ' of Shakopee Y P ATTEST: flL(M Cit Clerk ApprLved as to form: City Attorney / C a� `� I To: Dennis Kraft, City Administrator, and Members of the Shakopee City Council, Jackson Township Board and Louisville Township Board From: Mark McQuillan, Recreation Supervisor Re: 1991 Township Participant Report Date: 4/15/92 INTRODUCTION On April 9, 1991, the Shakopee City Council and the Louisville and Jackson Township Boards conducted a joint meeting to discuss ways in which the two townships could participate in funding recreational services. The consensus at the meeting was that the townships would participate in the funding of recreation, starting in 1992. BACKGROUND In 1991, the consensus of the Council and the Township Boards was that funding from the Townships would be based on the previous year's percentage of participation\per activity as applied to the City's current year's ad valorem net tax contribution for recreation. This excludes costs for park maintenance and the operation of the outdoor swimming pool. 1991 APPLICATION At last year's joint meeting, the City Council and Township Boards were presented figures showing program participation by jurisdiction. It was intended to present participation figures that represented all activities involving fees and activities with no fees. Shown below are the participation figures from the 1989- 90 school year ( July 1-June 30) that were presented at the 1991 joint meeting. 1989-90 Y. Dollar Share Shakopee 14, 108 89. 6% $ 69, 749. Louisville 295 1. 9% 1, 479 Jackson 580 3. 7% 2, 880 Other 748 4. 8% 3, 737 Total 15, 731 100% $ 77, 845 The data provided at the Joint Meeting was somewhat flawed. The flaw appears in the Shakopee number of participation which shows a figure of 14, 108. In Shakopee's case, the 14, 108 figure includes both fee & non-fee activities. The figures for the townships were hand counted from a registration master list containing only activities that have fees associated with them. Therefore, the participation figures for Shakopee were inadvertly inflated because they were taken from a computer report that did not separate the activities with fees and activities with no fees. Examples of non-fee activities include: summer playground events, outdoor skating rinks, concerts, skate races and pool special events. This year, when adjustments were made to use only activities that involve fees, the results (shown below) show Shakopee's participation figures about 8, 927 less than 1991 's figures. Therfore, the percentage of dollar share for Shakopee will be less and the townships percentage of dollar share will be higher. PARK AND RECREATION ADVISORY BOARD RECOMMENDATION Use the actual 1991 revenues and expenses for recreation and apply the 1991 participation figures to the 1991 tax supported amount to determine 1992's township contributions. Below is an illustration of this proposal. The 1991 Expenditures for Recreation was $171, 091. Subtract $81, 233. representing fees for program participation will leave a tax supported amount of $89, 685. for recreation. 1991 Y. Dollar Share Shakopee 5, 181 77. 7% $ 69, 801 Louisville 288 4. 3% 3, 883 Jackson 441 6. 6% 5. 946 Other 709 10. 6% 9, 560 Sand Creek Township 45 . 6% 608 Total 6, 664 100% $ 89, 858 ALTERNATIVE NEEDED TO REDUCE STAFF COST Staff wishes to point out one other concern it has regarding staff time to compile this report. In 1991, it took a month and a half to redo the computers participant address file to show actual residency of each participant. Prior to the change, every participant 's community address was listed as Shakopee because of the zip code. Therefore, 8, 000 plus names had to be individually checked and changed to show if they were living in the City of Shakopee, Louisville Township, Jackson Township, Sand Creek Township etc. Preparing this year's participation figures required 21 hours of secretarial and 6 hours of administrative time. Estimated cost : $425. ( including benefits) . Why so much time? Even with the changes made to the computer's filing system one year ago, staff must still go through a minimum of 427 pages of computer print-out with 4, 700 names while identifying activities each person participated in. Keep in mind, these are only participants who participated in activities where a fee was charged. There are another 3, 000 names in the registration file who either didn't participate in a program in 1991 or participated in an activity that required no fee. In light of this very time consuming process of extrapolating figures that probably will not vary more than 1 or 2 % yearly (plus or minus), staff would like the City Council and the two Township Boards to consider adopting a township contribution format that would set a fixed rate for a three year period. ALTERNATIVES 1 Set a fixed rate for the years 1992-95 at ($1479. or $3883. ) for Louisville Township and ($2880. or $5946. ) for Jackson Township. 2 Set a fixed rate for 1992 at ($1479. or $3883. ) for Louisville Township and a fixed rate for Jackson Township at <$2880 or $5936. ) to include a 2% annual increase for 1993 and 1994. 4 Continue with the current formula. 5. Establish a completely different formula that would be less time comsuming. 6. Use the 1991 figures as a base amount to include a 2% increase for 1993 and 1994. RECOMENDATION At its March 23, 1992 Perk and Recreation Advisory Board Meeting, the Advisory Board recommended to the City Council to colaborate with the Township Boards in using the 1991 participation figures as they apply to the actual 1991 's tax subsidy for recreation and setting a fixed rate for 1992 at $3883. for Louisville Township and a fixed rate of $5946. for Jackson Township and to include an annual 2% increase for 1992 and 1993. MEMO TO: Dennis R. Kraft, City Administrator FROM: Tami Vidmar, Receptionist RE: Recent Telephone Problems DATE: April 24 , 1992 Recently I have been experiencing problems with our phone systems. Some of the problems include: No open lines for incoming calls for long periods of time; Incoming calls mistakenly are hung up on because staff is trying to get an outside line at exact time incoming call is coming in; Incoming calls ring excessively to caller but only ring once or twice on switchboard. I anticipate these problems will continue occurring since we are just beginning to get into our heavy season and telephone load will only continue to grow at this point. I also realize with the uie‘ City Hall phone system these problems will be eliminated, however , wanted to bring the current problems to your attention.