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HomeMy WebLinkAbout12/03/1996 CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Economic Development Position. DATE: November 26, 1996 Previously, I discussed with you the potential for creating a position that would combine economic development, computers, and special projects. I was directed to get further information on what other cities were doing for the provision of computer system maintenance and repair. I was notified Monday,November 25th, that Paul Bilotta, who would be a logical candidate for such a position if it was created, is withdrawing his name from consideration. As such, given the prospects of filling a position from the market with the desired skills,we will proceed the original plan of having a separate Economic Development Coordinator,budgeted at about $42,000. There will be one exception: The Economic Development position be part of Administration, rather then Community Development. As such,the position will be designated there. You may recall that I had originally recommended the position to be part of Community Development. Later, due to logistics,the Director of Economic Development and Special Projects was to have been part of Administration. After further review, it appears that the Economic Development Coordinator position makes sense to be in Administration for a number of reasons. We will proceed as quickly as possible to fill the position from the existing candidate pool. If it is found that, due to the delay of a couple of months,the top candidates are no longer available, we may have to analyze whether we fill with the existing pool, or readvertise. We will try to avoid the latter option, however. Given existing workloads, I will also be bringing in to a future Council meeting a request to advertise for the budgeted Administrative Assistant position. Still to be resolved are the City's MIS needs. For the time being, we will continue to contract work,but something permanent will need to be done. For your information. Mark McNeill City Administrator MM:tw CC: EDA Payroll/Benefits Administrator Action This is to advise Council that action on the Payroll/Benefits Administrator concept that was discussed at the workshop meeting of November 18th,will not be ready for action at the December 3rd meeting. I advised Marilyn Remer of the delay,which is due to the need for further research, and the press of other business in an otherwise short business week. Mark McNeill City Administrator MM:tw TENTATIVE AGENDA CITY OF SHAKOPEE REGULAR SESSION SHAKOPEE CITY COUNCIL DECEMBER 3 , 1996 LOCATION: 129 Holmes Street South Mayor Jeff Henderson presiding 1] Roll Call at 7 : 00 p.m. 2] Approval of agenda 3] Liaison reports from Councilmembers 4] Mayor' s report 5] RECOGNITION BY CITY COUNCIL OF INTERESTED CITIZENS *6] Approval of minutes : November 6, 1996 *7] Approve bills in the amount of $197, 863 . 05 8] Communications 9] Public Hearings : A] Continuation of public hearing on the proposed assessments for CR-16 utilities between CR-17 and CR-83 , Project 1994-11, Res . No. 4567 10] Recommendations From Boards and Commissions *A] Zoning Ordinance text amendment regarding the definition and setbacks for townhomes - Ord. No. 467 11] General Business A] Engineering 1] Awarding bids on Valley Park 13th improvements, 1996-8 - Res . No. 4572 2] Scott County Turnbacks - CSAH-16 - Res . No. 4581 *3] Termination of Probationary Status - Joel Rutherford TENTATIVE AGENDA December 3, 1996 Page -2- 11] General Business continued B] Police/Fire 1] Towing Contract Specifications C] Park and Recreation 1] Playground Equipment for Meadows Park D] Community Development Commission 1] 1997 Transit Budget 2] Color copier/printer 3] EDA Compensation E] General Administration 1] Tax Increment Payment to ISD 720 *2] Off sale liquor license application - MGM Spirits Express, Inc . *3] Vehicle Policy - Res . No. 4582 -' 4] 1997 Fee Resolution - Res . No. 4583 5] 1997 Budget 6] Resignation - Cable Communications Advisory Comm. *7] Boards and commissions expiring terms 8] Council/Department Head team building proposal 9] Date - Shakopee Town Meeting 10] RIM Easement 11] EDA Compensation 12] 1997 Employee Group Insurance 12] Other Business 13] Executive Session to discuss labor negotiation status (if necessary) 14] Adjourn to Monday, December 9, 1996 at 4 : 00 P.M. *Anticipated to be routine items. OFFICIAL PROCEEDINGS OF THE CITY COUNCIL REGULAR SESSION SHAKOPEE, MINNESOTA NOVEMBER 6, 1996 Mayor Henderson called the meeting to order at 7:00 P.M. with Councilmembers DuBois, Zorn, Sweeney, and Link present. Also present: Mark McNeill, City Administrator; Bruce Loney, Public Works Director/City Engineer, R. Michael Leek, Community Development Director; Judith S. Cox, City Clerk; Gregg Voxland, Finance Director; Tom Steininger, Chief of Police; and Jim Thomson, City Attorney. The following changes were made to the agenda: Item 11C-h) Hiring Maintenance Worker was added. Item 11D-c) was changed to Association of the Metropolitan Municipalities Policies. The following items were deleted from the agenda: 11D-e) Long Term Employee Retirement Benefits, and 11D-i) Suburban Rate Authority Amendment. Sweeney/DuBois moved to accept the agenda as modified. Motion carried unanimously. Liaison reports were given by Councilmembers. Mayor Henderson gave the Mayor's report. Mayor Henderson asked if there was anyone in the audience who wished to address the City Council on any item not on the agenda. Martin Villalobos, 220 Darrick Rd. Chaska, approached the podium representing the Light Of The World Church. He explained that the church had recently inquired about obtaining a conditional use permit for the construction of apastoral home within thepremises. The propertyis zoned B-1 and he was instructed to present their intention to the Council for consideration before paying the application fee. Michael Leek explained that a church is a permitted use. However, the question is whether a residence is permitted on site. He explained that staffs interpretation has been that the residence is not an integralpart of the church operation and directed Mr. Villalobos to make the application and g Pe PP request that the fee be waived as part of that process. Mr. Leek was then directed to find out what other communities have done regarding this situation. Mayor Henderson acknowledged that Commissioner Bannerman was present. Sweeney/Zorn moved to approve the October 1, 1996 Minutes. Motion carried unanimously. Official Proceedings of the November 6, 1996 Shakopee City Council Page -2- DuBois/Sweeney moved to approve the bills in the amount of $301,515.87. Motion carried unanimously. A brief presentation ensued by representatives of Rahr Malting regarding a permit that has been applied for to privatize their waste water treatment. Bob Micheletti thanked the Council for the opportunity to speak about their projects and gave a slide presentation. He explained that the brewing industry is approximately 85% of their business. Rahr has expanded four times with the most recent expansion occurring in 1992. They have undergone a series of cost containment projects which include gas pipeline, workforce transformation, economies of scale to grow and become a major player in the malting industry, material handling improvements, built malthouse#5, co-generation/ NSP rate reduction, and truck barley delivery. Mr. Micheletti explained that in order to survive Rahr's growth is paramount and their proposed capital investment in the next five years is near$40 million. The most critical of the proposed projects is the waste water treatment plant. They are also making a commitment to improve the landscaping and increased buffering from the city. Mr. Micheletti explained that the malt processing time is 8-10 days and that 95% of the waste water is from washing barley and releasing the water into holding tanks to be transferred to Blue Lake. Rahr currently has a rate of 1.1 million gallons per day. Private treatment plants give Rahr a disadvantage in the industry and current discharge rates and SAC fees don't allow growth or competitiveness. Rahr introduced a waste water treatment plan in 1992 but decided they could get by with the current discharge by water conservation projects. Since 1995 the City has altered the Comprehensive Plan to allow Rahr to begin a process to withdraw from Blue Lake. The proposal to do so was the model used in writing the policy to withdraw from Blue Lake. Approval was received and an agreement reached two months ago. On October 11, 1996, the MPCA submitted a draft permit to other entities in the state that would allow the discharge of treated water into the river. Mr. Micheletti said that the important thing is the assurance to the community and their customers that there will not be an odor. He explained that malt is 4% moisture and has the ability to draw moisture from the environment. The system will control odors if any, and there is a contingency plan to contain odors. He added that this is waste without industrial contaminates. This will allow Rahr to meet higher standards than Blue Lake in discharging water to the river. There is no rush in building the treatment plant as the concern is to have one that works for them and the community. Mr. Micheletti said that the SAC charge credits realized will revert back to the City which equates to about$1.5 million of revenue. Bob Peplin, HDR Engineering, approached the podium and gave a slide presentation of other treatment plants located in Minnesota. He explained that this is a common process in the industry and invited Council members and City staff to tour any of the other facilities. Official Proceedings of the November 6, 1996 Shakopee City Council Page -3- A discussion ensued relating to the appearance of the current facility and the landscape buffer plan and Councilmembers and City staff were invited to tour the Rahr site at any time. A discussion ensued regarding the tax base. The first project will be for an elevator and then the waste water treatment plant. The public hearing for proposed assessments for Vierling Drive public improvements between CR- 15 and Presidential Lane (Project No. 1994-7) was opened. Cncl. Link announced that he would be abstaining from this discussion and voting. Bruce Loney reported that staff has prepared an assessment roll and sent notices as required. He added that since sending out notices it was discovered that the assessments for storm sewer and the sidewalk adjacent to the benefiting property were omitted and recommended continuing the public hearing to November 19th. A revised assessment roll has been prepared which reflects the additional assessments. Mr. Loney reported that a letter of assessment appeal has been submitted by Cletus and Helen Link and noted that Vierling Drive was originally intended to proceed in an east-west direction. However, the alignment was changed to the south due to inadequate right-of- way and street widths. The city was to vacate 13th Avenue and the right-of-way for Vierling Drive was to be dedicated back to the city. The city still owns property abutting city right-of-way. There is also a waiver of assessment of appeal from Outlot A and D property owners. Cletus Link, 1216 Jefferson St., approached the podium and said that after seeing the assessments he felt they far exceeded the benefits and wished to appeal them. Sweeney/Zorn moved to continue the public hearing to November 19, 1996. Motion carried with Cncl. Link abstaining. The public hearing for proposed assessments for Vierling Drive public improvements between CR- 79 and CR-77 (Project No. 1995-6) was opened. Bruce Loney reported that the Meadows plat was adjacent to Vierling Drive improvements on both sides of CR-77 and east of the Upper Valley Drainage Way on one side. He said Novak Fleck, Developer, had signed a waiver of assessment of appeal and was charged for the sidewalk, storm sewer and box culvert within their plat. The other assessment rate included the local street equivalent with storm sewer benefiting both properties and right-of-way acquisition. There was also a storm water pond enlargement paid for from the storm drainage fund. Mayor Henderson asked for comments from the audience. There were none. The public hearing was closed. Official Proceedings of the November 6, 1996 Shakopee City Council Page -4- A discussion ensued relating to the proposed or pending assessments to properties that have been sold and with money held in escrow to pay for the assessments. Cncl. Sweeney stated he would like a letter from Novak Fleck assuring there are funds escrowed on lots not owned by Gold Nugget Development. Sweeney/DuBois moved to table acting on the special assessments until the next meeting. Motion carried unanimously. Item 11B-a) was moved ahead on the agenda. Phillip Smith, Centres Group, approached the podium and gave an update on the extension of the development agreement with the City. He explained that good progress has been made with MN/DOT for potential acquisition. A second agreement was contemplated and he asked for authorization to continue negotiating a new development agreement as the current agreement expires in December. Zorn/Link moved to authorize staff to continue negotiating a new development agreement with the Centres Group. Motion carried unanimously. A break was taken at 8:22 P.M. The meeting re-convened at 8:33 P.M. Discussion returned to the original order of the agenda beginning with item 10a) Canterbury Park 2nd Addition. Michael Leek reported that a revised ordinance has been prepared for Canterbury Park 2nd Addition PUD. He added that in section 3 the exhibit B a list of uses as part of the PUD was inadvertently omitted. He also reviewed the criteria for permitted uses of outdoor concerts. Sweeney/Link offered Ordinance No. 465, an Ordinance of the City of Shakopee, Minnesota, Amending the Zoning Map Adopted in City Code Se c. 11.03 By Rezoning Land Located South of Canterbury Park, North of County Road 16 and the Shakopee Bypass From Major Recreation (M- R) To Planned Unit Development Overlay Zone No. 9, and moved its adoption. Motion carried unanimously. Michael Leek explained that Gold Nugget has requested that the Council consider a revision to their Final Plat of The Meadows South as they have encountered difficulties in obtaining title insurance. They had originally intended to subdivide the lots along the building wall lines for the units. In its present form there will be individual lots for the units to the north similar to those to the south and the rest of property would become common interest property. Official Proceedings of the November 6, 1996 Shakopee City Council Page -5- Link/Sweeney offered Resolution No. 4561, A Resolution Of The City Of Shakopee, Minnesota, Approving The Revised Final Plat For The Meadows South, and moved its adoption. Motion carried unanimously. DuBois/Zorn offered Resolution No. CC-771, A Resolution Of The City Of Shakopee, Minnesota, Reversing The Decision Of The Board Of Adjustment And Appeals Regarding A Variance For Larry James Anderson, and moved its adoption. Motion carried unanimously. Item 11D-d) Community Center Waterproofing Repair was moved ahead on the agenda. Mark McNeill explained there is an unresolved problem relating to water seepage in the northeast corner of the Community Center. The masonry contractor, Jesco, has proposed the installation of a "French Drain" that would lead the water away from the building to a storm sewer. The City is currently holding $32,000 in retainage for this work. The contractor is requesting that the $32,000 (less repair costs of $8,092.50) be released within 30 days in exchange for making the repairs. Mark McNeill explained that the City would not be absolving the contractor from future claims by agreeing to this. Sweeney/Zorn moved to authorize the Mayor to execute the proposal of JESCO Contractors, dated October 23, 1996, for repairs to the Shakopee Community Center, noting that the City Administrator has stated that the City is not waiving the right to future claims. Kevin O'Brien approached the podium and stated that once payment is made to the contractor and a consent of surety is received there is a period of one year in which to make a claim against a bond. Mr. O'Brien explained that the "French Drain" is a combination of previous solutions examined. The contractor admits it is his contractual obligation to fix the problem and he will pay for the work. Discussion ensued regarding solutions to the problem. Jim Thomson explained the process to call a bond and that the purpose is to have a financial guarantee. Motion carried 4-1 with Cncl. DuBois opposed. • Discussion returned to the normal order of the agenda beginning with item 11A-a) COPS Universal Hiring Program Grant. Chief Steininger reported that Shakopee has been awarded another $75,000 Universal Hiring Program grant. However, there is no obligation to accept the grant. He requested permission to accept the grant which would increase personnel to 22. He explained that based on call load statistics he believes the additional officer is necessary. He identified other factors that lead to his recommendation to hiring an additional officer. There are funds in the 1996 budget to cover any expenses the grant does not due to a shortage of officers. Official Proceedings of the November 6, 1996 Shakopee City Council Page -6- In response to a question regarding school contributions for on-site police officers, Chief Steininger explained that the school district has reimbursed the department for the officer's hourly wage. Discussion ensued regarding servicing schools with only 21 officers A. Chief Steininger explained that to provide street coverage there are a certain number of shifts to cover and when a shift needs to be covered due to illness or injury the officer in the school is the first to go. Discussion ensued regarding the necessity of a full time school police officer. Chief Steininger explained there is a feeling of safety due to the perception of gang presence. He added that there have been problems with gangs in the past. Mayor Henderson requested more statistical information as to where the need is coming from. Chief Steininger explained that a number of officers are currently out due to surgery and/or are on light duty, and the department is operating with less clerical staff than was budgeted. In response to a question as to the status of a COPS Fast Officer after 3 years, Chief Steininger explained that the Federal Government encourages maintaining the employment in the spirit of the grant but it is not required. However, with the growth Shakopee has experienced and will likely continue to experience, as well as the fact that several officers are approaching retirement age, it would seem reasonable and logical that if Council chooses not to keep the two additional officers it would follow natural attrition. Discussion ensued comparing the number of Shakopee officers with FBI standards. It was noted that Shakopee has consistently been higher in officers than comparable communities due to the impact of transportation and entertainment in Shakopee. Chief Steininger explained the department has attempted to increase crime prevention activity. He added, however, that attention has been focused on filling the schedule rather than on these other areas and they are trying to maintain an adequate number of officers on the street to respond to calls at this time. Once the department has a full schedule again the plan is to devote one officer to community policing by establishing neighborhood groups and more McGruff Houses. He also addressed the issue of quality of service and explained that calls are prioritized based on man power. Due to the nature of evening calls two officers are often needed even though there may be fewer calls. Discussion ensued regarding community policing issues and the need for additional officers to accomplish this. It was noted that the Council previously approved the community policing concept and not authorizing the additional officers would not be consistent. Mayor Henderson asked if everyone agreed to authorize the COPS Universal Hiring Supplemental Award in the amount of$75,000, effective May 1, 1996. Councilmembers agreed 4-1, with Cncl. Zorn opposed. Official Proceedings of the November 6, 1996 Shakopee City Council Page -7- Chief Steininger explained the loss of individual officers in the last year and requested authorization to hire four police officers. He briefly described the testing process from which the top six names were chosen. There are funds in the 1996 Police Budget to pay for the personnel requested due to the department operating a position short of budgeted strength for 12 months. Zorn/Sweeney moved to authorize the hiring of Les TenEyck, Lynn Lipinski, Molly Schrot, and Lisa Quick by the Shakopee Police Department as police officers at the monthly rate of$2,611.73 subject to satisfactory completion of pre-employment medical, physical and psychological testing and the customary 12 month probation period. Cncl. DuBois stated that she would like to see the designation of a juvenile officer with full staffing. Motion carried unanimously. A break was taken at 9:45 P.M. The meeting re-convened at 9:58 P.M. Chief Steininger discussed the advantages of having a police motorcycle and the fact that the population density of Shakopee does not support an officer on foot. He said he would like to use the motorcycle offered (by Faribault Harley-Davidson for $1.00 a month) as a 3rd officer on the street between 6:00 P.M. and 9:00 P.M. He explained that this officer would be more approachable by the community than an officer in a car. The cost is minimal at $12.00 a year and insurance at $250 a year and the estimated cost of equipping the motorcycle is $2,500. He then compared the economy of operating a motorcycle to that of a vehicle. Additional helmets may need to be purchased at$ 70.00 each. Boots and gloves would be the responsibility of the officer. Discussion ensued regarding liability to city for injured officers as well as additional costs. DuBois/Zorn moved to direct staff to prepare additional information (relating to leasing a police motorcycle for$1.00 per month). Motion carried unanimously. Chief Steininger explained that the police union contract allows the City to buy back unused holiday time. A 40 hour cap has been placed on unused hours and the City will not buy back more than 40 hours of holiday time from any individual. In addition, officers are allowed to carry over 90 days into the next year. DuBois/Link moved to authorize the appropriate city officials to buy back unused holiday hours totaling 400 hours from ten police officers at a cost of $8,695.54, as outlined in his memo dated 11-01-96. (City Clerk Document No. 244) Discussion ensued regarding the intent of holiday time and the inability to take holiday time this year. • Official Proceedings of the November 6, 1996 Shakopee City Council Page-8- Motion carried unanimously. Zorn/DuBois offered Resolution No. 4533, A Resolution Of The City Of Shakopee, Minnesota, Requesting The Use Of The Old St. Francis Regional Medical Center, A Building Owned by The St. Francis Regional Medical Center, For Police Training, and moved its adoption. Motion carried unanimously. Sweeney/Zorn moved to authorize the purchase of a full size police squad from Superior Ford in the amount of$221,552 plus dealer delivery in accordance with the Hennepin County Cooperative contract. Motion carried unanimously. Councilmembers voted on the two candidates nominated at the previous meeting to fill the vacancy on the Police Civil Service Commission. The City Clerk announced that Mr. Don Hamilton received five votes. Sweeney/Zorn moved to appoint Don Hamilton to the Police Civil Service Commission to fill the unexpired term of Richard Mulcrone ending February 28, 1999. Motion carried unanimously. Chief Steininger explained that part of the Joint Powers Agreement for a Public Safety Communications and Information System called for an agreement to lease six mobile data terminals (MDT's) for five years at a cost of$647.96 per month. He said the equipment is now installed and operating satisfactorily and requested approval to pay the bill. Zorn/DuBois moved to direct the appropriate city officials to enter into an agreement to lease MDT's from Scott County for five years at a cost of$647.96 per month. Discussion ensued regarding the benefits of the MDT's. Chief Steininger explained that it enhances the existing communication system, relieves a lot of radio traffic, and frees the dispatchers to do other things. In addition, the information is transmitted digitally which allows for more users. Motion carried unanimously. Item 11D-a) 1996 Budget Amendments was moved ahead on the agenda. Gregg Voxland reported there were a number of changes to the 1996 General Fund budget as a result of prior and current events. He proposed dealing with the reappropriation of fund balance for prior years commitments on a case by case basis using fund balance where appropriate. One other option would be to use the existing contingency appropriation to cover those expenditures. Councilmembers agreed that the following items would come out of the contingency fund: $3,700 for Engineering professional services, $29,600 for the 1996 pavement management program, and $8,820 for Fire Department supplies. Official Proceedings of the November 6, 1996 Shakopee City Council Page -9- Sweeney/Link offered Resolution No. 4552, A Resolution Amending Resolution Number 4354 Adopting The 1996 Budget. Motion carried unanimously. Gregg Voxland reported on comments from the auditors following the 1995 audit. Two of the items are internal and have been implemented. A third was to bill SPUC progress billing. The auditors also recommended developing policy and related procedures regarding conflicts of interest. Conducting annual educational refresher for awareness of this issue. They also recommended considering the adoption of a resolution relating to disclosure of all real estate and business interests which could indicate a potential conflict. He gave no recommendation but asked for Council comments and direction. Zorn/Link moved to have an annual refresher training program on ethics. Motion carried unanimously. It was noted that each Councilmember has taken the opportunity to remove themselves from issues which involve a conflict of interest. Item 11C-d) Wetland Banking Plan for Valley Park 13th Addition, was moved ahead on the agenda. Bruce Loney reported that Valley Park 13th Addition has requested that the excess wetland above the 2 to 1 replacement be banked as allowed by the Water Conservation Act(WCA). Zorn/Link offered Resolution No. 4560, A Resolution Approving the Wetland Banking Plan for Valley Green Business Park Limited Partnership, and moved its adoption. Motion carried unanimously. Bruce Loney reported that the Dean's Lake outlet channel improvement was included in the 1996 budget in the CIP program as recommended as part of the storm water management plan. He recommended moving forward as the area adjacent to the Dean's Lake outlet area which will be included in the MUSA and will be coming forward for development and a determination of the high water market will be necessary to analyze development. DuBois/Link offered Resolution No. 4546, A Resolution Ordering the Preparation of a Report on Dean's Lake Outlet Improvement in the City of Shakopee, and moved its adoption. Discussion ensued regarding the purpose of the study. Cncl. Sweeney explained that the reason is to preserve Prior Lake's option of dumping water into the channel to Dean's Lake for Shakopee to dispose of and recommended investigating cost participation with Prior Lake/Spring Lake Watershed District. Mr. Loney noted that they have agreed to assist in evaluating the hydrology of the area and that we will look at cost sharing when ready to make the improvements. Official Proceedings of the November 6, 1996 Shakopee City Council Page -10- Motion carried unanimously. Zorn/DuBois moved to authorize the appropriate City officials to execute an extension agreement with WSB & Assoc., for engineering services on the Dean's Lake Outlet feasibility report at a cost not-to-exceed $20,500.00. Motion carried unanimously. Bruce Loney explained that the Sanitary Sewer Encroachment Agreement with Metropolitan Council needs to be executed in order for the Kmart Linear pond to be deepened and provide the regional storm water treatment in the area. Valley Green's contractor is working in this area and Valley Green has agreed to indemnify the City and to provide insurance from their contractor for any possible damage to the interceptor. He added that the City will be maintaining this pond in the future. Link/Zorn moved to authorize the appropriate City officials to execute the Encroachment Agreement over the Chaska Interceptor with the Metropolitan Council. Motion carried unanimously. The order of business returned to the normal agenda beginning with 11B-b) Participation in Metropolitan Livable Communities Act. Sweeney/Zorn offered Resolution No. 4559, A Resolution of the City of Shakopee, Minnesota, Electing to Continue Participating in the Local Housing Incentives Account Program Under The Metropolitan Livable Communities Act For Calendar Year 1997, and moved its adoption and directed staff to notify the Metropolitan Council of the City's intention to participate. Michael Leek gave a brief explanation of the Local Housing Incentives Program and how it would benefit the City. Motion carried unanimously. Sweeney/Link moved to approve a response to the proposed amendments to the Regional Blueprint and Policy Plans, and directed staff to submit the response for consideration as a part of the public hearing record. Motion carried unanimously. A break was taken at 11:11 P.M. The meeting reconvened at 11:21 P.M. Cncl. Zorn was absent for the remainder of the meeting. Bruce Loney reported that the previous Council had directed staff to review the signage and stop sign warrants for the intersection of 4th Avenue and Apgar Street. He explained that at this intersection the grade of Apgar Street does steepen and the sight distance on 4th Avenue to Apgar Street is somewhat limited. There have also been a number of accidents at this intersection over the Official Proceedings of the November 6, 1996 Shakopee City Council Page -11- years and due to the restricted view or limited sight distance at one of the legs of the intersection it was recommended that the yield signs on 4th Avenue be replaced with stop signs. In addition, if the signage change is approved, it was also recommended to place "Traffic Control Change Ahead" signs for one week to alert the public. DuBois/Link moved to direct staff to install stop signs on 4th Avenue to replace the existing yield signs at the intersection with Apgar Street. Motion carried unanimously. Bruce Loney reported that Bill Rudnicki has requested installation of a street light on McKenna Road. The estimated cost is $908.00 and there are sufficient funds in the escrow account for the McKenna Road improvements to pay for this street light. The cost of the street light would be paid by the Shakopee Mdewakanton Sioux Community (SMSC), with the future power and minor maintenance to be provided by SPUC. He also said there was some concern regarding setting a precedent by installing this light as current SPUC policy does not address street lights on County Roads. Discussion ensued regarding future requests for other street lights at country intersections if this street light is installed. Discussion ensued regarding the maximum impact as far as the total number of requests might be received and the operating costs. Mayor Henderson recommended more information regarding operation costs and possible requests to set a policy for street lights at rural intersections. Sweeney/Link moved to direct staff to develop a rural intersection street light and supporting costs policy. Motion carried unanimously. Bruce Loney reported on a proposed agreement with Scott County for two foot contour maps used extensively in the planning of development by the City's Community Development and Engineering Departments. The City budgeted $20,000 in the 1996 budget for this purpose and the County's share will be$9,300 plus all ground control needed for the mapping at $7,600. He also said a cost for developers or anyone wishing to purchase this information could be incorporated into the 1997 fee schedule to help recoup costs. DuBois/Link moved to authorize the appropriate officials to execute the Cooperative Agreement, between Scott County and the City of Shakopee, for cost sharing of aerial photography and stereo digitizing. Bruce Loney added that the work may not be completely done in 1996 and it was not budgeted for in 1997. It was recommended that this be addressed in a budget workshop. Motion carried unanimously. Official Proceedings of the November 6, 1996 Shakopee City Council Page -12- Bruce Loney reported that the job description for Harry Pass's position was reviewed and compared with that of other cities. He said the position is that of a working supervisor and will require other work as necessary and recommended a non-exempt status for this position. Sweeney/DuBois offered Resolution No. 4553, A Resolution Amending Resolution No. 4368, Amending The 1996 Pay Schedule For The Public Works Supervisor Position Of The City Of Shakopee, and moved its adoption. Motion carried unanimously. Bruce Loney reported that interviews were held with candidates for the Maintenance Worker position and recommended hiring Duane Toenyan to fill the position at Step 1 of the 1996 Pay Plan subject to satisfactory completion of pre-employment medical and physical testing. Sweeney/DuBois moved to authorize the appropriate City officials to hire Duane R. Toenyan, as a Maintenance Worker, and to be hired at Step 1 of the 1996 Pay Plan with an effective date of November 25, 1996, subject to satisfactory completion of pre-employment medical and physical testing. Motion carried unanimously. Mark McNeill recommended the endorsement of the proposed 1997 AMM Legislative Policies as proposed by their study committees. Sweeney/DuBois moved to endorse the proposed 1997 AMM Legislative Policies as proposed by their study committees. Motion carried unanimously. Judith Cox reported that summary statements from the precincts, affidavits of posting and publishing and resolutions declaring the results of the election have been placed on the table. Sweeney/DuBois offered Resolution No. 4555, A Resolution Declaring Results Of Special Bond Election (declaring the issue approved), and moved its adoption. Motion carried unanimously. ($3,400,000 G.O. Bonds to finance the acquisition, construction, and equipping of a new fire station.) DuBois/Sweeney offered Resolution No. 4556, A Resolution Declaring Results of Special Election (declaring the issue approved), and moved its adoption. Motion carried unanimously. (Allowing the issuance of five additional "on-sale" intoxicating liquor licenses.) Sweeney/DuBois moved to receive and file the affidavits showing publication and posting of the notices of the special election. Motion carried unanimously. Mark McNeill reported that proposals for the Blocks 3 & 4 Demolition Specifications Contract were solicited and two were received. TKDA submitted a proposal not to exceed $25,000 and MSA submitted a proposal not to exceed $57,855. He recommended awarding the contract to TDKA as they have done similar projects and had the lower proposal. • Official Proceedings of the November 6, 1996 Shakopee City Council Page -13- Link/DuBois moved to accept the proposal of TKDA for demolition plans and specifications for Blocks 3 &4. Motion carried unanimously. Mark McNeill stated that dates need to be set to meet in a workshop setting to discuss personnel and budget issues and interview attorney firms. The meeting was scheduled for November 18th at 4:30 P.M. to discuss personnel and 1997 non-general fund budget items. Sweeney/DuBois moved to set November 18th at 4:30 P.M. to discuss personnel and non-general fund budget items. Motion carried unanimously. DuBois/Sweeney moved to set December 9th from 4:00 P.M. to 6:00 P.M. to review finalists for legal services. Motion carried unanimously. Sweeney/DuBois moved to purchase a refurbished Sharp 3062 from D.C.HEY ($12,614.93 including trade in) with service and supplies contracted at .0116 per copy (at 30,000 copies per month that is $348.00 per month). Total cost over 3 years = $25,142.93, and to notify CDP to reduce our service contract on the present machine to the 5,000 per month level when the Sharp is installed; funding should be from the Contingency Fund by budget amendment. Motion carried unanimously. Sweeney/DuBois moved to authorize the payment of $75 to the City Administrator as reimbursement for dues to Shakopee Rotary, for as long as he wishes to belong, as provided in Section 10 of the Employment Agreement. Motion carried unanimously. The Executive Session was canceled due to the lateness of the evening. Sweeney/Link moved to adjourn to November 19, 1996 at 6:00 P.M. Motion carried unanimously. The meeting adjourned at 11:55 P.M. .11/ re. 0,2C •ith S. Cox ity Clerk Esther TenEyck Recording Secretary CITY OF SHAKOPEE .Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director RE: City Bill List DATE: November 26, 1996 Introduction and Background Attached is a print out showing the division budget status for 1996 based on data entered as of 11/26/96 . 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-XXX) and Blocks 3&4 (code 9439-xxx) in the amount of $20,490 . 18 . ,Action Requested Move .to approve the bills in the amount of $197, 863 . 05 . CITY OF SHAKOPEE EXPENSES BY DEPARTMENT 11/26/96 , CURRENT YEAR ANNUAL, MONTH TO PRRCRNT DEPT DEPT NAME BUDGET ACTUAL DATE EXPENDED 11 MAYOR& COUNCIL 83,090 2,705 66,949 81 12 CITY ADMINISTRATOR 232,160 5,332 180,151 78 13 CITY CLERK 132,040 6,649 101,008 76 15 FINANCE 307,410 10,080 253,184 82 16 LEGAL COUNSEL 260,030 8,200 187,909 72 17 COMMUNITY DEVELOPMENT 472,930 16,851 275,672 58 18 GENERAL GOVERNMENT BUILDINGS 132,510 7,722 116,617 88 31 POLICE 1,608,500 54,524 1,320,269 82 32 FIRE 427,490 44,233 333,267 78 33 INSPECTION-BLDG-PLMBG-HTG 228,930 10,123 192,736 84 41 ENGINEERING 411,460 12,968 310,981 76 42 STREET MAINTENANCE 805,320 58,717 487,459 61 44 SHOP 116,650 7,232 89,335 77 46 PARK MAINTENANCE 304,660 13,158 273,745 90 91 UNALLOCATED 794,699 277 272,731 34 TOTAL GENERAL FUND 6,318,079 258,769 4,462,014 71 17 COMMUNITY DEVELOPMENT 463,400 6,545 362,873 78 TOTAL TRANSIT 463,400 6,545 362,873 78 H (1) to VS a Q i 0 000000 00 0 0 0 0 0 0 00 0 0 0 0 0 0 M W Dal I 0 Z W U H N 01 01 01 01 01 0) CO a) H O 0 H H N O V' N N N N r N U) V' L0 U) CO U)CO H U) U) Cl M M MMM M l+ Cl O in Cl Cl M Mm O1 d' N Cl N Cl MC')MenL")C') 00 l0 Cl O d' Cl Cl MM 0) N 10 a0 Cl N H 0 000000 Ul U) V' 0 d' Lf) 0 O 00 in N d' L(1 O 0) 0 0 0 0 0 0 0 H H F O q' N 0 0 0 0 d' co W FC 0 N 0 H H H H H H 0 0 0 N 0 0 N 0 in in U) 0 0 0 o in E-' H N N N N N N 01 01 V' N d' H N H H H Cl d' H Cl N H Za V' M M M M M M M M N d' N N V' N N N w N co N N N W V' V'V•V'V'V'V' d' Cld' d' V' Ti. m d' d'd' d' d' W d' Cl d' 0 al L L 1 1 1 1 1 L L I i ) I i I ) L i L ) I L i U 1 V' H H H H H H H H H U) H M U) ri d'V H H H H 0 N U CO N N N M H H H N V' 0 d' in 0 M N N H H H V' H N FC H M H r- Cl 1,Cl H H V' aD V' N CO N V'V' V' V' Cl d' N W 0 0 0 0 0 0 0 0 0 0 N 0 0 N 0 0 0 0 0 O 0 0) O H H 0 ZZ H H H El g g U U U U W Z a s Z Z CO w al zz a H 0 0 W U) W H U) H 0 W a E. x°x0 Z H H a H a Pi H al ril H H 0 0 H E-' H W H W U) H Z U) IX Cn CO U \\ U) > U) 0 4 i U al A ZZZZZZZ ZZ Z 0 Z alalalZ U Z '�'Q- H W H Z U) 000000 W W W FC W H Q H aaaaaa ww a x a H x H as U X CO H a a Z aaaaaa ZZ H N H N 0 N HH as H 0 H H Pd E.E•4 0000 W 01 Cl 0 Cl, ZX B 01 a Am UU)i COU)U)CAU)U) H 0 0 0 0 0 0 H a°aaMaa°a CO Z H Z al H 0 0 alrilalUWiU)U)C$)UWiU) is co co A H a a a H U)U)U1 U)U1 U) W0 Z D >> a • w 0 £ a n+ (/)U)U)U)U)U) HH a a a W A HH D U U] 0 w 0q aaaala�W] W+ EH., Cl, 0 AA al H H A R a Wp'7W WpL7W H H Z U w El El Z'a 11 H a H Z al 0 co N A aHHHHH 00 a D4 Cl al al• HHE+HHH HH 0 c I a as 0L E' H IX A 0 to a �ax�axta�a a x w i Z HH Er.l ,, N M al a N a H 0 N 4 4 4 4 0 4 , .C CO al al al PO 0 U 0 UO 0 A 0 A to N K K K K K K K K K K K K K K K K NN U)O 0)0)O U)a0 000 w1.° 0 0 10 10 d'd' O O Cl M N M 0 00 0)01 d'd' in U) 0 0 l0 10 a HsN 01aoaoa0l�HC'1 000 d'd' b0 d'd' HH 0o rN d'l-N oo co CO 101.0 NN MM MM O 7� LOW c.,.,;.. 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E. w w C=. w CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Continued Assessment Hearing on Adopting Assessments for C.R. 16 Sanitary Sewer and Water Services, Project No. 1994-11 DATE: December 3, 1996 INTRODUCTION: Attached is Resolution No. 4567, which adopts the assessments for the County Road (C.R.) 16 Sanitary Sewer and Water Services Improvements, Project No. 1994-11 as shown on the attached assessment roll dated November 21, 1996. BACKGROUND: At the November 19, 1996 City Council meeting, Council elected to continue the public hearing for assessments on the C.R. 16 Sanitary Sewer and Water Services Improvement Project. This continuation was done in order to provide staff time to recalculate the area changes on various parcels mentioned at the public hearing, and to recalculate the assessment roll due to these changes. The revised assessment roll dated November 21, 1996 is attached for Council review and the revised assessment rates are as follows: • SEGMENT 1 - Trunk Sanitary Sewer from Upper Valley Drainageway (U.V.D.) to C.R. 16 and Water Services along C.R. 16. % Change Trunk Assessment $991.44/Per Acre +6.61% Lateral Sewer Assessment $8,124.85 Per Acre +8.19% Sewer Assessments 100%of the Cost Per Each Service Line to Each Property • SEGMENT 2 - Lateral Sewer and Water Service Assessments for V.I.P. Sanitary Sewer Diversion from Hauer Trail to Chaska Interceptor and Water Services along C.R. 16. % of Change Lateral Sewer Assessment $3,531.92/Per Acre +2.32% Sanitary Sewer Service and 100%of the Cost Per Each Water Service Service • SEGMENT 3 - Elimination of a Lift Station at the Intersection of Secretariat Drive and C.R. 83 Site with a Gravity Sewer to the Chaska Interceptor. This is the cost to eliminate the existing lift station and to install a gravity sewer to the Chaska Interceptor. The lift station was owned and maintained by Valley Green Industrial Park and was assessed at 100% of the costs to do this work. The assessment cost is $45,802.40 to do this work. Council also inquired about other alternatives for funding assistance to possibly reduce the assessments, such as Tax Increment Financing (T.I.F.) Staff has investigated this alternative and essentially the T.I.F. funds have been allocated for Blocks 3 and 4 renovations. In order to use T.I.F. funds for this project,a public hearing must be held for setting up a T.I.F. District and T.I.F. funds would need to be reallocated for this project. Staff has considered other options available to Council on the proposed assessments and possible reductions. One option is to consider a reduction of assessments to those parcels with an existing on site sewage treatment system. On this project, a total of twenty three parcels have objected to their assessment. Seventeen of those parcels have on site sewer and water systems. If Council desires to consider such a reduction, due to a residual value of existing on site systems, staff would have the following recommendations: 1. The assessment reduction be given to only those parcels with existing on site systems. 2. Reduction amount be limited to $3,000 maximum per system and the total assessment to the parcel be reduced only to a$6,000.00 minimum. 3. The total assessment reduction is estimated to be $51,000.00 for the sixteen parcels and would be paid out of the Sanitary Sewer Fund. 4. Reduction in assessments would be provided to only those properties that would sign an agreement not to appeal their assessment. This agreement would be prepared by the City Attorney. Staff would like to note for Council that this procedure is potentially precedent setting, although this case is somewhat unique because of the degree to which the assessments exceeded the feasibility report. The City will face a scenario in the future, where sanitary sewer and watermain improvements are installed in existing on-site sewage and water system areas. Another difficulty with providing a reduction of the same amount to every property is that each on site system may vary in condition and in actual residual value. With this option, staff is assuming that developed properties have a working system and could be used for at least three years. Staff would like to point out that per City Ordinance, property owners have up to three years to connect to City sewer and water from the date that municipal sewer and water systems become available. The other option for Council is to adopt the revised assessment roll and have the assessment appeals go to Court for a determination of the assessment benefit. It should be noted that even if an assessment reduction is authorized by Council, the property owners may still appeal the assessment unless they agree to withdraw their assessment appeal. ALTERNATIVES: 1. Adopt Resolution No. 4567,a resolution adopting assessments as attached. 2. Adopt Resolution No. 4567, a resolution adopting assessments as modified by City Council. 3. Deny Resolution No. 4567, and direct staff to reschedule a new public hearing. 4. Direct the City Attorney to prepare an agreement between the property owners with on-site sewage and water systems, for an assessment reduction, with conditions as outlined in the Council Memorandum. 5. Table for additional information. 6. Continue the public hearing if additional public input is necessary. RECOMMENDATION: Staff recommends Alternative No. 1,to adopt Resolution No. 4567, so the assessments can be certified to Scott County this year. Consideration of an assessment reduction is a Council policy decision,thus staff has no recommendation on that procedure. ACTION REQUESTED: Offer Resolution No. 4567, A Resolution Adopting Assessments for County Road 16 Sanitary Sewer and Water Services, Between County Road 17 and County Road 83, Project No. 1994-11 and move its adoption. Bruce Loney Public Works Director BL/pmp ME4567 c O 00)) co O M - 0 0 0 0 N O Co N C7 U O y (00co co V0'_ O O C) M M C) C) O u) N O N Co 1A M co) co. co co 69 5- W to ,_ fie 69 co rs CO Q COce Co N- O 0 0 0 O0 0 O 'd0 M fN 0 O O 0 O d 0 al 8N M es co 0) coo69 EA ER fo 69 E9 O O vs 69 cs5` CU ru (I) 80) 0 N 8 pp ++ O 0 n O O� o O O O • f�6 001 co 09 09 - 609 OVi 06A 069 069 li w CO J N 609 U) NN N �� r�// V1 Q H �O N O O fO O O O O O Z C 0 0 O O CV C C C d d W � .. O U J Q rV1 `�j M Co O O ca M O S S S 8 001. �` O V, co C') Efk 00 le O \u�, AC 0 69 U 1�1 G y P4r� I" Q V1 k% V) W co 0 O 01 N 0 0 1001 0 0g COVI CD O O 1!Y r O O O O O F--.I CA 2 E V) ~ a aZ W ZZ 00Q H 0) o CO CD 0 NC ro w r4 Z cto in so so • Z0 C3 o o wlo o . 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Nt CUNt > OCl) > OC/) > tC/) 1- O O O N ' N EO 0 O Z co N CO to Q e- e- a- i i I d N N N CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: TIF Fund use for CR. 16 Project DATE: November 20, 1996 Attached is the projection of TIF funds available for projects. Please note that Council has designated funds for blocks 3 & 4 . Any money transferred to support CR 16 would reduce the money available for Blocks 3 & 4 . At this point there is $100, 000 not yet transferred in 1996 to Block 3& 4 and $100, 000 projected for 1997 . There are no more funds projected to be available until 1998 . 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C0 O co a0 O m N T C) C C • U H CO W°a E V) H 2 2 j co >.j e] d ` V Y N N N N N 0 t- W 0 O .4' O o F N U N N N N N < 0 E C)• C c O O LL < eD U)U)<OU)U) < >o co ao•o ` E O O F- O O CD Co.aD aD a0 M C)O 0 O U) 0 0 0 d .N N M 0 0 0 0 0 0 N 0 E 0 Ll O j N M M E E a 0 O N L a p co co E C 0 O a O l0 c H H a°id �Cgo E H oC m '`-0 a o 10 N NNNNN NU)O a12 .1LL V I 0000 0 Oa r U) l0 C) 0 0 0 0 0 N LL F "C r r r r r 0 N r W E O E O O O O 0 F N l0 0 0 0 0 0 'C' M co N N C16 Y O O N co O H C O a4 N O O O O O sr co co N C lO N N o N O)<co < O y N O O a . co o000To m N d R p H H N N 0.< H H N A a) 0 O C N C N O d r 0 CO r 0 0 0 N C1— C 15 U) 0) CO 0 0 N �' O lS O_ 0 0) 0 0 0 O O 0 3'V C. 0 0 0 0 0 0 0 C) y Y 0 0 0 CO 0 O O 0 0 0 0 0 0 0 U N N'0 O «« N N N y LL d p H « « N N N C 0 ;n v FHOLLa cim 0 C) ' I U) U)r a00 0 Qj U)U)F-CD 00 00000 00 0)0)0) 0000 Q 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 U d N N Z N N CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney,Public Works Director SUBJECT: Continued Assessment Hearing on Adopting Assessments for Sanitary Sewer and Water Services, Project No. 1994-11 DATE: December 3, 1996 Staff has investigated further the assessments of sewer and water to existing developed residential properties and has further information. 1. The City of Savage has recently installed sewer and water to existing subdivisions with onsite sewage systems and wells, and has recently reached a tentative agreement with property owners of the sewer and water assessments at $12,000.00. per lot in the Dan Patch Subdivision. 2. The City of Savage did conduct maintenance inspections on the existing onsite sewage systems to verify the condition of the system and use this data in the benefit analysis done to support the assessments. 3. Recent changes in the State Code for onsite sewage treatment systems have now included provisions for a compliance inspection to determine if a system is in compliance or failure. These types of inspections will indicate the system's compliance with today's Codes. 4. The compliance inspections can be done at $200.00 per site and would be a total cost not-to-exceed$3,500.00 for the 17 sites. 5. The County is working on the time lines for when a failure system needs to be restored or put back into compliance, depending on its threat to the environment or eminent public health danger. In this area, this would be classified as highly susceptible to ground water area. Any system that has been determined to be a failure would be required to be brought back into compliance within 10 months, per the County proposal. Staff will be discussing this additional information at the assessment hearing to help support the adoption of the assessments as being proposed. ,a2 2 Bruce Loney 6 Public Works Director BL/pmp SYSTEM CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: Ordinance 467 re. townhouses DATE: November 25, 1996 Introduction: At its last meeting,the City Council approved the proposed amendments to Chapter 11, Zoning, regarding front yard setbacks for townhouses. The attached ordinance memorializes those changes. Action Requested: Offer and pass a motion adopting Ordinance No. 467. R.Michael Leek Community Development Director ORD467.DOC/RML 3 ORDINANCE NO. 467 AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING CHAPTER 11, ZONING, TO ADD A DEFINITION OF"TOWNHOUSE," AND TO ADD FRONT YARD DESIGN STANDARDS FOR TOWNHOUSES. THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, ORDAINS: Section 1 - That City Code Chapter 11, Zoning, Sec. 11.02. Definitions, is hereby amended by adding new No. 136, "Townhouse," as set forth below, and renumbering all subsequent entries. 136. "Townhouse" - A residential structure consisting of two (2) or more contiguous single-family attached dwelling units, sharing only common walls, each having separate individual entrance/exits adjacent to at least two different lot lines, and each having separate garage/storage areas. Section 2 - That City Code Chapter 11, Sec. 11.32, Medium Density Residential Zone(R-2), Subd. 2, and Sec. 11.34, Multiple Family Residential Zone (R-3), Subd. 2, are amended to add the following; H. Townhouses Section 3 - That City Code Chapter 11, Zoning, Sec. 11.32, Medium Density Residential Zone (R-2), Subd. 5.C, Design Standards, and Sec. 11.34, Multiple Family Residential Zoning District(R-3), Subd. 5.C, Design Standards,are hereby amended to add the following; In the case of townhouse developments which contain both public streets and private streets or driveways, the front yard setback on public streets may be reduced to the average setback from private streets or driveways, so long as the front yard setback from any public street in the development is no less than 20 feet. Section 4 -Effective Date. This ordinance becomes effective from and after its passage and publication. ORD467.DOC/RML 1 Adopted in session of the City Council of the City of Shakopee, Minnesota,held the day of , 1996. Mayor of the City of Shakopee ATTEST: City Clerk ORD467.DOC/RML 2 CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Award of Bid for Valley Park 13th Addition Project No. 1996-8 DATE: December 3, 1996 INTRODUCTION: This item is to consider awarding the bid for Project No. 1996-8, Valley Park 13th Addition Improvements. BACKGROUND: On November 15, 1996, bids were opened for the Valley Park 13th Addition Improvement Project which consists of sanitary sewer, watermain, storm sewer and street construction for the industrial park that is being developed by Valley Green Business Park and Shiely Companies. This project was petitioned for by the developers for the City to construct under a 429 Special Assessment Project. The bids were opened and tabulated and the bids are as follows and as shown on the attached resolution. BIDDER AMOUNT Richard Knutson, Inc. $1,093,063.60 S.M. Hentges & Sons, Inc. $1,099,374.67 Barbarossa& Sons, Inc. $1,107,954.90 Northdale Construction, Inc. $1,118,160.34 Ryan Contracting, Inc. $1,122,072.50 Arcon Construction, Inc. $1,133,914.99 Latour Construction,Inc. $1,145,373.89 Bonine Excavating, Inc. $1,163,624.50 Minger Construction, Inc. $1,169,025.35 Landwehr Construction, Inc. $1,184,144.00 S.J. Louis Construction, Inc. $1,185,500.20 Brown& Cris, Inc. $1,254,624.85 Carl Bolander& Sons, Inc. $1,268,551.08 Duininck Bros., Inc. $1,318,861.00 After tabulating the bids, the low bidder was Richard Knutson, Inc. from Savage, MN. S.M. Hentges & Sons, Inc. of Jordan, MN was 2nd and Barbarossa & Sons, Inc. of Osseo, MN being 3rd. In the contract documents in the Invitation for Bids, it states that the City Council of the City of Shakopee reserves the right to reject any or all bids, to waive any defects or technicalities in bidding and to determine if the bid is responsive or non responsive. City Council further reserves the right to make an award to the lowest and most responsible bidder, as determined by the City Council. In this particular bid opening, the top two bidders are currently involved in litigation with the City on previous City contracts for construction projects. Richard Knutson, Inc. is in litigation on the Fuller Street Improvement Project done in 1995, and S.M. Hentges & Sons, Inc. is in litigation on the 1993 Street Reconstruction Project, V.I.P. Sewer Line and Rahr Malting Forcemain Project. In the City of Shakopee's Standard Specifications for instructions to bidders, the City does have a clause that states a bidder may be disqualified for failure to carry out previous contacts satisfactorily. The City Attorney has advised staff that the issues being litigated in the lawsuits, in particular claims for additional money being made long after the work has been completed, and failure to adhere to the change order process, can be the basis for declaring a bidder non- responsible. The City Attorney advises, however, that it would be best to wait until the pending litigation has been completed before making that decision. Minnesota case law clearly establishes that the City has the right and the obligation to use its discretion in determining if a bidder is responsible. If the City declares a bidder irresponsible,the bidder can challenge the validity of this decision. It should be pointed out that staff does not disagree with the contractor's right to file a lawsuit against the City on any of its contracts. The question is whether or not the contractor has acted responsibly in making financial claims against the City, without following the procedures in the contract. The options available to City Council in awarding this contract are as follows: 1. Award the contract to Richard Knutson, Inc. 2. Award the contract to S.M. Hentges, Inc., other bidder. 3. Reject all bids and rebid the project. If the bid is not awarded to Richard Knutson, Inc. or S.M. Hentges & Sons, Inc., this decision will more than likely be challenged for a decision by the Courts. As mentioned previously,the contractor can challenge this decision but the Court shall not award as part of its judgment any damages or attorney fees to the unsuccessful bidder, except perhaps the cost of preparing an unsuccessful bid. Staff believes that rebidding the project will not affect the time of completion for the project and that lower bids can be received. By rejecting all bids and rebidding, the City has very little risk,per the City Attorney. Resolutions awarding the bid and rejecting all bids will be prepared and placed on the table, as the City Attorney will not have had sufficient time to review. ALTERNATIVES: 1. Accept the low bid and adopt a resolution awarding the contract to Richard Knutson, Inc. 2. Reject the low bid and award the bid to another bidder. 3. Reject all bids and rebid. 4. Table for more information. RECOMMENDATION: Staff is still reviewing the alternatives and will provide further update at the meeting. ACTION REQUESTED: Offer a resolution to award the bid to Richard Knutson, Inc., or offer a resolution to reject all bids and move its adoption. A (R- Bruce Loney Public Works Director BL/pmp DEFER U P . CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Award of Bid for Valley Park 13th Addition Project No. 1996-8 DATE: December 3, 1996 INTRODUCTION: This memorandum is a further update on the consideration of awarding the bid for Project No. 1996-8,Valley Park 13th Addition Improvements. BACKGROUND: At the time of writing of this memo, staff was still discussing the concerns of the low bid with the contractor and City Attorney. The main concern of the low bid is with the Common Borrow bid price of$.01/C.Y. Staff has asked that the contractor verify in writing that the unit bid price for Common Borrow is indeed $.01/C.Y. Per the specifications, a quantity total of 6,000 cubic yards was estimated to be used and possibly more as necessary at the discretion of the City. Staff believes this item will be needed, as the Valley Park 13th Addition site does not have an excess of earth material. Attached is a letter from Richard Knutson, Inc. confirming the bid price of Common Borrow at $.01/C.Y. At this time, staff would support the award to Richard Knutson, Inc. If City Council desires to reject all bids and rebid, a resolution would be prepared by the City Attorney for the next Council meeting. Attached is a resolution for accepting bids for Valley Park 13th Addition Improvements, Project No. 1996-8. If Council awards the project, staff is also requesting that the City Council authorize a contingency amount equal to 5% of the contract to cover minor change orders or quantity adjustments that may occur on this project. Also, staff will need to request from Council authorization to enter into an extension agreement with WSB & Associates, Inc. for construction surveying and administration services for this project. ALTERNATIVES: 1. Accept the low bid and adopt Resolution No. 4572, awarding the contact to Richard Knutson, Inc. 2. Table for additional information. RECOMMENDATION: Staff recommends adoption of Resolution No. 4572, awarding the contract to Richard Knutson, Inc. and to authorize the appropriate City officials to execute a consultant contract with WSB and Associates, Inc. to provide consultant construction services with this project. ACTION REQUESTED: 1. Offer Resolution No. 4572, A Resolution Accepting bids on Valley Park 13th Addition Improvements, Project No. 1996-8 and move its adoption. 2. Authorize the appropriate City officials to execute an extension agreement with WSB & Associates, Inc. to provide consultant construction services for the City of Shakopee. 3. Authorize a 5% contingency amount for use by the City Engineer in authorizing change orders or quantity adjustments on this project. Bruce Loney Public Works Director BL/pmp MEM4572 SENT BY:Xerox Telecopier 7020 ; 5-=7-70 ; 11:52 ; 6126906346-+ 4456716;# 2 01.1.11111M1141 • 4 I RICHARD KNUTSON, INC. al IN 11111. t • 12585 RHODE ISLAND AVE. SO. • SAVAGE, MN 55378. 812/890.8811 12-248 FAX 612/890-8348 B 'Loney P.E. M Works Dkector City • Shakopee 129 ° • , Street South Shakopee,MN.55379-1351 RE Pack 131b Addition,Project No. 1996-8 Dem Loney: In , • to your letter dated Dec. 2, 1996 referencing the above mentioned •' and after reviewing its subject matter,wo conihm that the bid item of qumatOt is accurate and correct. Pious contact me with any questions that you may have. Than ,You. S r. ffav% EQUAL OPPORTUNITY EMPLOY ER I CONTRACTOR • RESOLUTION NO. 4572 A Resolution Accepting Bids On The Valley Park 13th Addition Project No. 1996-8 WHEREAS, pursuant to an advertisement for bids for the Valley Park 13th Addition, Project No. 1996-8, bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Richard Knutson,Inc. $1,093,063.60 S.M. Hentges & Sons,Inc. $1,099,374.67 Barbarossa& Sons.. Inc. $1,107,954.90 Northdale Construction,Inc. $1,118,160.34 Ryan Contracting,Inc. $1,122,072.50 Arcon Construction, Inc. $1,133,914.99 Latour Construction, Inc. $1,145,373.89 Bonine Excavating,Inc. $1,163,624.50 Minger Construction, Inc. $1,169,025.35 Landwehr Construction, Inc. $1,184,144.00 S.J. Louis Construction, Inc. $1,185,500.20 Brown& Cris, Inc. $1,254,624.85 Carl Bolander& Sons, Inc. $1,268,551.08 Duininck Bros.,Inc. $1,318,861.00 AND WHEREAS, it appears that Richard Knutson, Inc., 12585 Rhode Island Avenue S., Savage,MN 55378 is the lowest responsible bidder. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE,MINNESOTA: 1. The appropriate City officials are hereby authorized and directed to enter into a contract with Richard Knutson, Inc. in the name of the City of Shakopee for the Valley Park 13th Addition according to the plans and specifications therefore approved by the City Council and on file in the office of the City Clerk. 2. The CityClerk is herebyauthorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted in session of the City Council of the City of Shakopee, Minnesota,held this day of , 1996. Mayor of the City of Shakopee ATTEST: City Clerk E. A. CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Scott County Highway Turnback- C.R. 16 DATE: December 3, 1996 INTRODUCTION: Attached to this memo is Resolution No. 4581, which allows the City to approve and accept a removal of County State Aid Highway designation of County Road (C.R.) 16, from the easterly extent of State Trunk Highway 300 to County State Aid Highway (CSAH) 17. BACKGROUND: On August 6, 1996 City Council did review a list of County turnbacks in the City of Shakopee. At this meeting the Council approved a motion to direct staff to accept the transfer jurisdiction and compensation from Scott County for improving and maintaining the roadways, including CSAH 16, from T.H. 300 to CSAH 17. The resolution that is attached is needed to be approved by the City in order for the County to turn back a County State Aid Highway to the City. ALTERNATIVES: 1. Adopt Resolution No. 4581. 2. Deny Resolution No. 4581. 3. Table for additional information. RECOMMENDATION: Staff recommends Alternative No. 1, to adopt Resolution No. 4581, in order to allow the County to turn back C.R. 16, from T.H. 300 to CSAH 17. ACTION REQUESTED: Offer Resolution No. 4581, A Resolution Revoking County State Aid Highway Designation For County State Aid Highway 16, From Trunk Highway 300 to County State Aid Highway 17 and move its adoption. NKSt- ' Bruce Loney Public Works Director BL/pmp MEM4581 RESOLUTION NO. 4581 A Resolution Revoking County State Aid Designation For County State Aid Highway 16, From Trunk Highway 300 to County State Aid 17 WHEREAS,the County of Scott is proposing to revoke a portion of County State Aid Highway designation from County State Aid Highway (CSAH) 16, which lies in Section 6, Township 115, Range 22, and Section 1, Township 115, Range 23, described as follows: Beginning at the most easterly extent of State Trunk Highway 300; thence east along Sixth Avenue to its intersection with Fuller Street; thence north along Fuller Street to its intersection with Fourth Avenue; thence east along Fourth Avenue to the westerly right of way line of County State Aid Highway 17 and there terminating. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE: that the City Council approves and accepts such removal of the County State Aid Highway designation upon the Scott County Board of Commissioners revoking County State Aid designation from CSAH 16. Adopted in session of the City Council of the City of Shakopee, Minnesota,held this day of , 1996. Mayor of the City of Shakopee ATTEST: City Clerk 11. f - z . CITY OF SHAKOPEE Memorandum TO: Mayor& City Council Mark McNeill, City Administrator FROM: Bruce Loney,Public Works Director SUBJECT: Termination of Probationary Status Joel Rutherford DATE: December 3, 1996 BACKGROUND: Joel Rutherford started working for the City on June 3, 1996 at Step 6, of the Non-Union 1996 Pay Plan as the Assistant City Engineer. His six month probationary period has been completed and Mr. Rutherford's performance has been excellent. It is recommended that his probationary status be terminated. ALTERNATIVES: 1. Move to terminate Joel Rutherford's probationary status. 2. Extend his probationary status another six months. 3. Terminate his employment with the City. RECOMMENDATION: Terminate Joel Rutherford's probationary status. ACTION REQUESTED: Move to terminate Joel Rutherford's probationary status. Bruce Loney Public Works Director BL/pmp RUTHERFORD ll- Q . l, CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Towing Contract Discussion DATE: November 26, 1996 INTRODUCTION: At its meeting of December 3rd, the City Council will be asked to provide an opportunity for a potential bidder on the towing contract to discuss the specifications. BACKGROUND: At a break during the City Council meeting of November 19th, Will Peterson,representing Peterson Towing of Shakopee approached some Councilmembers questioning the specifications which had been put together by Citystaff regarding the towing contract currently set for bid consideration. Bids were to have been opened November 27th. it is my understanding that there is a question concerning insurance requirements, storage, and equipment. So that the questions may have an opportunity to be discussed prior to opening the bids,the request of a couple Councilors was that the bid opening be delayed, and that Mr. Peterson be given an opportunity to be heard on the issue. As such, notification was provided to potential. bidders that the November 27th date was being extended through December 10th. The Police Chief and I are to meet with Mr. Peterson on November 27th; any issues that are unresolved will be presented at the December 3rd meeting. ACTION REQUIRED: After hearing Mr. Peterson's concerns, Council will need to give directions as to what, if any, actions it wishes to take regarding this issue. (IiLiQN\AWAltj' Mark McNeill City Administrator MM:tw BIDS FOR TOWING CONTRACT CITY OF SHAKOPEE NOTICE IS HEREBY GIVEN: The bid date set for November 27, 1996 has been rescheduled to December 10, 1996. New bid documents may be created and if so will be available no sooner than December 4th. Please call 445-3650 to learn whether or not there are new bid documents to be used when submitting a bid on December 10, 1996. Judith S. Cox City Clerk CORRECTED INVITATION FOR PROPOSALS NOTICE IS HEREBY GIVEN: The City of Shakopee is advertising for proposals for a two (2) year contract to provide towing, impounding, and storage of motor vehicles. The vendor, equipment and storage facility must be located within the City of Shakopee: Proposal specifications are available at City Hall, 129 Holmes Street South, Shakopee, Minnesota, 55379 or the Shakopee Police Department, 476 Gorman Street, Shakopee, Minnesota, 55379. Proposals will be opened on December 10, 1996 at 10:00 a.m. at the Shakopee City Hall. The City of Shakopee reserves the right to reject any or all proposals, to waive irregularities and to award the contract in the best interest of the City. Judith S. Cox City Clerk C a AGREEMENT THIS AGREEMENT, made and entered into this day of , 1996, by and between the City of Shakopee, and , hereinafter referred to as the "Contractor. " WITNESSETH: WHEREAS, the City of Shakopee desires to enter into a contract for the towing, impounding, and storage of motor vehicles; and WHEREAS, the Contractor is the operator of a towing and storing facility located in the City of Shakopee and is desirous and willing to enter into such a contract with the City. NOW THEREFORE, the parties heretofore, in consideration of the covenants hereinafter set forth, agree as follows: 1. The Contractor hereby agrees to tow, impound, and store all motor vehicles which are ordered removed under the direction of the Police Chief of the City of Shakopee or persons authorized by him. 2. The Contractor shall have satisfactory equipment and personnel to provide immediate service on all vehicles ordered impounded by authorized City Officials at all times, twenty-four (24) hours a day, seven (7) days a week, holidays included. 3 . The contractor shall own or have available to the City of Shakopee, Minnesota, the following equipment: A. A minimum of two (2) tow trucks having a gross vehicle weight of eight thousand (8,000) pounds or more, equipped with a crane and winch, and further equipped to control the movement of the towed vehicle; and B. Equipment capable of uprighting and towing a loaded semi tractor-trailer combination; and 1 C. Equipment sufficient to move a completely demolished vehicle on dollies or low-bed trailer. The Contractor agrees to maintain said equipment in good condition and repair. The City reserves the right to inspect the Contractor's equipment from time to time for the purpose of determining whether the equipment is in good condition and repair and in conformance with the terms and conditions of this Agreement. 4. All storage and parking lot facilities and equipment of the Contractor must be located within the City limits of Shakopee, Minnesota. The storage and parking lot facilities of the Contractor shall meet all applicable state and building code standards and municipal licenses and zoning requirements, including those relating to screening and landscaping. 5. The Contractor shall control and operate facilities capable of storing a minimum of four (4) vehicles inside and facilities capable of storing a minimum of twenty (20) vehicles outside. It is further agreed that vehicles need be stored inside only when so directed by an authorized City Official. 6. The Contractor assumes full responsibility for the conduct of its employees and guarantees that its employees will respond promptly to calls, use safe and adequate equipment, be clean in appearance, use decent language, and treat the public courteously at all times. 7. The Contractor shall be solely responsible for the loss of damage to any motor vehicle, including its equipment and contents, from the time the vehicle is turned over to the Contractor or its 2 agent by an authorized City Official until such time as the vehicle is released to the registered or actual owner or agent thereof. 8. The Contractor agrees to maintain proper records of all vehicles received. These records shall be approved by the Police Chief of the City and are available at all times for inspection by authorized City Officials. The records shall include a copy of the police impounding report. The Contractor must submit to the Police Chief of the City of Shakopee monthly reports of vehicles stored and released. The contents of these reports shall be determined by the Police Chief of the City. 9. All vehicles towed or impounded for the Police Department of the City are to be released by the Contractor only upon the showing of a release form issued by the Police Department of the City. Either the Contractor or its employee must be present at the Contractor's parking facility or on call at least between the hours of 8:30 a.m. and 5:30 p.m. , Monday through Friday, and on Saturday from 9:00 a.m. to 1:00 p.m. , and Sunday from 10:00 a.m. to noon, for the purpose of releasing vehicles to authorized claimants. 10. It is agreed that motor vehicles will not be driven during the towing procedure. Where a motor vehicle is without tires or has flat tires, the Contractor agrees to tow the vehicle without damaging the wheels further and further agrees not to tow a vehicle on its rims, on wheels without tire, or on flat tires. 3 11. When the Contractor arrives at the scene of a tow where a motor vehicle accident has occurred, the Contractor assumes responsibility for removing any vehicular parts or other debris resulting from the accident. 12. The Contractor shall be entitled to a charge for its towing, storage, and debris removal services pursuant to those fees specified in the following schedule. The fees shall apply only when the car is towed to the Contractor's storage area at the direction of the City of Shakopee. Towing requested by vehicle owners shall be subject to fees agreed upon between the Contractor and the owner including charges for towing vehicles outside the City of Shakopee. A. 1. Towing Charges: Type I, all tows which involve a vehicle which is on or immediately adjacent to a public street or alley and which can be secured for towing with the usual type of winching. Type II, all tows which involved a vehicle which is not on or immediately adjacent to a public street or alley or which requires an unusual amount of winching to secure it for towing by one tow truck or the use of a dolly to tow the vehicle. Type III, all tows which involve a vehicle that requires, and for which a specific request has been made, two or more tow trucks. minimum. NOTE: The designation as to the type of tow performed will be by the duly authorized agent of the City. Any disagreement with this designation shall be made in writing to the City Administrator within 24 hours. 2. Administrative Fee. A minimum administrative fee will be added to all tows. 4 • B. Towing of Large Vehicles. Towing of vehicles of more than five (5) ton factory rated capacity. minimum. C. Reclaimed Vehicles at Scene. If an operator of the Contractor is called to tow a vehicle and after arriving at the scene of the tow, the owner appears to claim said vehicle, the vehicle may be turned over to the owner provided the police authorize the release of the vehicle and the towing operator is paid a service fee in the amount of one-half (1/2) of the Type I towing charge. D. Storage Charges. 1. Twenty-four (24) hours or fraction thereof A. Inside storage B. Outside storage E. Clean Up Charges. 1. Removing vehicular parts and routine sweeping and clean-up 2. Removing debris other than vehicular parts, and more extensive clean-up hour. F. Unlocking Vehicles: G. Vehicle Release. The release of vehicles will be conducted during posted normal working hours. A release requested after normal working hours will be charged an additional service call fee of 13 . The City shall not be responsible to the Contractor for the payment of any charge for towing, storage, clean-up, and/or unlocking vehicles. 14. Should the Contractor fail to appear at the designated point to tow within twenty (20) minutes after a call, the City reserves the right to call another tow service to perform the work. If the Contractor is called for a tow and is unable to respond, it must immediately so inform the City Official or department requesting the tow, and the City hereby reserves the right to 5 another tow service to perform the work. In any case, only the towing service which performs the work will be paid. 15. This Agreement will not be executed nor shall the Contractor commence work under this Agreement until the Contractor has established that it has obtained the insurance coverage set forth and effect with respect to all operations os the Contractor. The Contractor agrees to furnish to the City a copy of its policy Or policies which shall be in force on the date of the execution of the Agreement and shall continue for a period equal to the duration of the Agreement. The following coverage is required: A. Public Liability Insurance including general liability, automobile liability as follows: 1. Bodily Injury Liability in the amount of at least $600,000 for injury or death of any one person in one occurrence. 2. Bodily Injury Liability in the amount of at least $600, 000 for injuries or death arising out of any one occurrence. 3. Property Damacte Liability in the amount of at least $50,000 without aggregate limit for any one occurrence. Such property damage insurance shall include coverage for property in the care, custody, and control of the Insured. 4. Garage Keepers' Legal Liability policy in the amount of at least $30,000. Each of these policies shall carry an endorsement which reads: It is understood and agreed that the insurance provided under the undermentioned policy and endorsement attached thereto, is hereby extended to apply to the liability imposed by law on the City of Shakopee for bodily injury and for damage to property, which liability is assumed by the Insured under the towing Agreement between the City of Shakopee and the Insured. B. Worker's Compensation Insurance covering all employees of the Contractor working in the job in accordance with the Minnesota Worker's Compensation Law. 6 C. Cancellation Notice the policy shall provide for 10 days notice to the City before any changes or cancellation of each policy becomes effective. 16. The Contractor shall defend, indemnify, and hold harmless the City, its employees and agents, from any and all claims, causes of action, lawsuits, damages, losses and expenses on account of bodily injury, sickness, disease, death, or property damage as a result, directly or indirectly, of the operations of the Contractor in connection with the work performed under this Agreement. In the event the Contractor shall fail to assume full responsibility for the defense of any claim after proper notice, the City shall have the right to defend such action dnd to charge all costs thereof to the Contractor. 17. The Contractor shall operate its parking facility in compliance with the terms of this Agreement and all applicable laws, ordinances, rules, and regulations which are now in effect or which may hereafter be adopted. 18. It is mutually understood and agreed that no alteration of the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto. 19. In the event of a breach by Contractor of any terms or condition of this Agreement, the City shall have, in addition to any other legal recourse, the right to terminate this a Agreement forthwith. 20. This Agreement shall be for a period from January 1, 1996 to December 31, , provided that either party may terminate the same without cause by giving ninety (90) days' written notice to the other. 7 21. A copy of this Agreement and a schedule of the fees authorized shall be posted in a conspicuous place in the Contractor's garage. 8 IN WITNESS THEREOF, the parties have caused this Agreement to be executed by their appropriate officers and their seals affixed as of the day any year first above written. CITY OF SHAKOPEE: Its Mayor Its Clerk Its Administrator CONTRACTOR: By Its Approved as to form: Karen Marty, City Attorney (12/28/94) 9 liethutjed -(29 L) IPS I tc((u, AND A: :: . ;; CØ; 1o� ROTATION CALL LIST . RULES AND PROCEDURES A MODEL 1/ TABLE OF CONTENTS I . PURPOSE 1 II . POLICY 1 III . CALL LISTS; APPLICATIONS 1 • IV. INSURANCE 3 V. EQUIPMENT 4 VI . TOW TRUCK CLASSIFICATIONS 5 VII . STORAGE FACILITIES 8 VIII . INSPECTION 9 IX. SERVICES AND PROCEDURES 9 X. GENERAL PROCEDURES 14 XI . RATES AND CHARGES 15 XII . "GRANDFATHER" PROVISIONS 16 XIII . DENIAL, SUSPENSION REVOCATION PROCEDURES . . 17 4 ROTATION CALL LIST: RULES AND PROCEDURES 2 A MODEL 3 I . PURPOSE 4 To establish policy, procedures, and rules 5 concerning emergency towing service call allocation 6 II . POLICY 7 Emergency towing service requires special knowledge, 8 skills, equipment and experience, and it in the public 9 interest that the Department establish these mini4num 10 standards for towing firms performing emergency work at 11 the request of the Department. It is the policy of the 12 Department to utilize only those towing services whose 13 equipment, procedures and services conform to the 14 following rules and procedures . 15 III . CALL LISTS; APPLICATION 16 (a) The Department shall maintain a separate Call List for each tow truck class (A, B, C, and D) in each 18 zone, as shall be established by the Department . 19 ( 1) Class "B" tow trucks may be listed on both "A" 20 and "B" class list. 21 (2 ) Class "D" vehicles can be substituted for a 22 Class "A" tow truck provided that surcharges 23 or extra fees for special use vehicles shall 24 not be allowed when a Class "D vehicle is 2 1 utilized in instances where a Class "A" would 2 ordinarily be adequate . 3 (b) Original applications 4 ( 1) Towing service proprietors wishing to have 5 their vehicles - included on any of the Call 6 Lists shall ::,ubmit a request to the 7 Commissioner. Forms for such request shall be 8 prepared, and made available, by the 9 Commissioner. 10 (2) Any towing service wishing to be included on 11 any Call List shall be located, and have been 12 in continuous business , in the requested zone " 13 for at least two (2) years prior to the request 14 for admission. 15 (3) Any towing service utilized by the Department ,16 shall be properly licensed as required by 17 state and local law(s) , and shall be insured 18 as provided for in Section IV, and a 19 certificate of insurance filed, before being 20 placed on the Call List. 21 (4 ) Towing service owners with any felony 22 convictions within ten ( 10) years prior to 23 application shall not qualify for admission to 24 the Call List. 25 (5) All towing and storage facilities shall be 26 inspected by the Department pursuant to Section 27 VIII before being placed on the Call List . 3 by 1 IV. INSURANCE 2 (a) The towing operator shall maintain the following 3 policies of insurance: 4 ( 1) Workers compensation insurance as required by 5 statute. . 6 (2 ) Garage liability insurance in an amount not 7 less than $1,000,000 Combined Single Limit 8 (CSL) , including Garagekeepers Legal Liability 9 covering perils of fire and explosion, theft 10 of an entire vehicle, riot and civil commotion, 11 vandalism and malicious mischief in an amount 12 not less than $60,000 . 13 ( 3) Automobile liability in an amount not less than 14 $1,000,000 Combined Single Limits . 15 (b) Towing service operators shall have insurance agents 16 submit a certificate of coverage to the Department . 17 (c) Annual renewal . 18 ( 1) Certificates of insurance must be submitted to 19 the Department prior to the renewal date . 20 ( 2) Insurance carriers shall notify the Department 21 immediately if a policy is cancelled. 22 ( 3) The insurance carrier shall make written 23 notification to the Department of any changes 24 in insurance coverage at least ten ( 10) days 25 prior to the change . • 4 1 V. EQUIPMENT • 2 (a) Towing services shall have at least two (2) units 3 capable of highly efficient performance at the scene 4 of an accident for each Call List class which they 5 apply for admission to. 6 (b) Emergency Equipment. 7 ( 1) At least one ( 1) functional, rotor-beam type . 8 light, of the color(s) required by state law, 9 shall be mounted on the top of the tow truck. 10 All emergency flashers and directional lights 11 showing to the front must be amber in color. 12 (2) Sirens on tow trucks or service trucks are 13 prohibited. 14 (c) The following additional equipment is required: 15 ( 1) At least one (1) heavy-duty push broom; 16 (2) Flood lights mounted at a height sufficient to 17 illuminate the scene at night; 18 (3) One ( 1) shovel; 19 (4) One ( 1) axe; 20 (5) One ( 1) pinchbar, prybar, or crowbar; 21 ( 6 ) One ( 1) set of bolt cutters; 22 (7 ) Minimum of one ( 1 ) 20 lb. Class ABC Underwriter 23 Laboratory approved fire extinguisher. 24 (d) The appearance of tow trucks shall be reasonably 25 good with equipment painted. 26 (e) All tow trucks shall display the firm' s name, 27 address , and phone =number, and such other 5 1 information that may be required by state law. Such • 2 information shall be of contrasting color to the 3 truck color and shall be painted on or otherwise 4 permanently affixed to both sides of the tow truck. 5. - All lettering shall comply with-,,state law and shall 6 be at least three (3) inches high. Magnetic signs 7 will not be permitted. 8 (f) Towing services shall be responsible for carrying 9 the equipment necessary for removal of glass and 10 other debris from highways following each accident. 11 The tow truck operator is responsible for utilising • 12 the equipment for such removals . 13 VI . TOW TRUCK CLASSIFICATIONS 14 (a) CLASS A - For towing passenger cars, pick-up trucks , 15 small trailers , etc . 16 ( 1) The tow truck chassis shall have a minimum 17 manufacturer' s capacity of 10, 000 lbs . GVWR; 18 (2 ) Boom capacity of not less than 8 ,000 pounds 19 and individual power winch pulling capacity of 20 not less than 8 , 000 pounds ; 21 ( 3) One-hundred ( 100) feet or more of 3/8 inch or 22 larger cable on each hum; 23 (4 ) Belt-type cradle tow plate or sling to pick up 24 vehicles ; cradle of tow plate to be equipped 25 with safety chain; -26 (5 ) Dual rear wheels ; 6 1 (6 ) Dollies . 2 (b) Class B - For towing medium size trucks , trailers , 3 etc . 4 ( 1) The tow truck chassis shall have a minimum .5 manufacturer' s capacity of 18, 000 GVWR. 6 (2) Boom capacity of no less than 16 , 000 pounds 7 and individual power winch pulling capacity of 8 no less than 16,000 pounds . 9 (3) Two-hundred (200) feet or more of 1/2 inch or 10 larger cable on each drum. 11 (4) Cradle tow plate or tow sling to pick up 12 vehicle; cradle of tow plate to be equipped 13 with safety chain. 14 (c) CLASS C - For towing large trucks , road tractors and 15 trailers . 16 ( 1) The tow truck chassis shall have a minimum 17 manufacturer's capacity of not less than 30 , 000 18 GVWR. 19 (2) Boom capacity of no less. than 50, 000 pounds 20 and individual power winch pulling capacity of F= 21 no less than 50 , 000 pounds . 22 (3) Two hundred (200) feet or more of 5/8 inch or 23 larger cable on each drum. 24 (4 ) Airbrakes so constructed as to lock wheels 25 automatically upon failure . 7 1 (d) CLASS D - Vehicle transporter designed to tow or . 2 carry passenger cars, pick-up trucks , small 3 trailers, etc. , "damage-free" . This classification 4 includes "Wheel Lift" and "Car Carrier" or "Rollback" type vehicle transporters . 6 ( 1) Wheel Lift: tow trucks possessing equipment 7 capable of lifting the vehicle by the wheels 8 only, with no part of the towing apparatus 9 contacting the vehicle body. 10 (A) Wheel lift tow trucks shall meet all Class 11 "A" requirements, excluding the belt-type 12 cradle tow plate or tow sling. 13 (B)Wheel lifts must be used in accordance with 14 the manufacturer's recommended practices . 15 (2) Car Carrier vehicle transporters: 16 (A) The truck chassis shall have minimum 17 manufacturer's capacity of 14 ,500 lbs . GVWR; 18 (B) Two (2) lift cylinders, minimum two and 19 one-half (2 1/2 ) inch bore; 20 (C) Individual power winch pulling capacity of 21 not less than 8 , 000 pounds ; 22 (D) Fifty (50) feet or more of 5/16 inch or 23 larger cable on winch drum; 24 (E) Four (4 ) safety chains for securing vehicle 25 to carrier bed; 26 (F) Carrier bed shall be a minimum of sixteen 27 ( 16 ) feet in length and a minimum of eighty- 8 1 four ( 84 ) inches in width inside side rails . 2 (G) Cab protector, constructed of steel or 3 aluminum, that extends a minimum of ten ( 10). 4 inches above the height of the bed. 5 VII . STORAGE FACILITIES 6 (a) Towing services must be equipped to provide proper, 7 safe, and secure storage for all vehicles towed and - O 8 stored by Department request. 9 (b) The towing service shall provide reasonable care for 10 the storage, safekeeping, and prevention , of 11 vandalism of all vehicles and contents towed for 12 the Department. 13 (c) The storage facility must be: 14 ( 1) Located in close proximity to the towing 15 service. 16 (2) Secured by an 6 ' chainlink fence or natural 17 barrier sufficient to deter trespassing or 18 vandalism. 19 ( 3) Staffed, or available for access , between the 20 hours of 8 a.m. and 8 p.m. , Monday through 21 Friday, excluding legal holidays . 22 (4 ) Of sufficient size to accommodate all vehicles 23 towed by the towing service for the Department. 24 (d) Indoor storage space must be available to 25 accommodate and preserve at least two (2 ) vehicles 26 towed for evidentiary purposes . Indoor space which 9 1 is also utilized as service station, garage, or body 2 shop repair bays does not qualify as "indoor 3 storage" for purposes of this rule . 4 (e) The Department shall be notified of all vehicles 5 which are towed at the request of the Department 6 that are held over thirty (30) days . 7 VIII . INSPECTION 8 • (a) The Commissioner, or his designated representative, 9 shall inspect all tow trucks and storage facilities 10 annually prior to expiration of insurance 11 certificates. This inspection shall include the 12 checking of equipment, insurance, storage 13 facilities , and other requirements of these rules 14 and procedures . 15 (b) The Commissioner may also inspect towing services 16 any time circumstances warrant an inspection. 17 IX. SERVICES AND PROCEDURES 18 (a) Tow trucks shall be available for response twenty- 19 four (24) hours a day. FJ 20 ( 1) They must respond within thirty ( 30) minutes , 21 or, at the discretion of the requesting 22 officer, the next scheduled tow truck will be 23 called and the first one will lose his turn. 24 (2 ) The responding tow truck(s ) must be one 25 displaying the firm' s name as called for by 10 1 the dispatcher. Towing services cannot refer 2 a call to another towing company or substitute 3 another company's tow truck to avoid a turn on 4 the Call List. 5 (b) Only one ( 1) towing service shall be called to any 6 one ( 1) vehicle 'accident. If additional equipment 7 or recovery vehicles are needed to adequately 8 complete a tow (i.e. tractor-trailer rollover or 9 difficult auto recovery) , discretion of the 10 responding towing service should be used in deciding 11 what and whose additional equipment will , be 12 required. The severity of the situation and the 13 estimated response time of the chosen additional 14 equipment will be weighed by the officer at the 15 scene, who may override the decision of the towing 16 operator by calling a different company for 17 additional equipment, should conditions merit . 18 (c) When multiple cars are involved and multiple tow 19 trucks are required: 20 ( 1) If a towing service has two (2) tow trucks in 21 the appropriate class , two ( 2 ) tow trucks will r===- 22 be requested from the same towing firm, 23 provided both tow trucks can respond 24 simultaneously. No towing firm shall be called 25 for more than two ( 2 ) vehicles per class from 26 any one accident or occurrence . 27 ( 2 ) If more than two (2 ) tow trucks in any class 11 1 are required, the next towing firm will be 2 called for up to two (2 ) additional tow trucks . 3 ( 3) If vehicles in need of towing will require tow 4 trucks from different Call Lists , the next 5 available towing firm on each Call List will 6 be called. For example, in an accident 7 involving an automobile and a tractor-trailer, 8 the next Class A and the next Class C tow 9 trucks will be called. 10 (4) The first tow truck arriving at the scene will 11 tow the vehicle in its classification causing 12 the greatest traffic hazard which will be 13 determined by the member of the Department at 14 the scene. 15 (5) If a "personal request" tow truck arrives 16 first, the tow truck will be asked to remove 17 vehicles causing traffic hazard from roadway, 18 then pick up the requested tow. 19 (d) When a towing company receives a call for one class 20 of tow truck, it will not affect the towing F =_ 21 service' s status on any of the other class lists . 22 (e) Towing services shall accept "collect calls" from 23 the dispatcher or lose their turn on rotation. 24 ( f ) Towing service operators shall not perform repair 25 work on towed vehicles without the owner ' s written 26 request. 27 ( g) Hold orders placed by the Department, on vehicles 12 1 stored for any reason shall be honored by the towing 2 firm, provided that no hold order shall exceed 3 fifteen ( 15) days unless such hold order is 4 supported by an appropriate warrant or court order. 5 (h) When no hold order is placed, or when a. hold order 6 expires, the vehicle shall be released to the owner 7 upon proof of ownership and when the necessary 8 financial transactions between the vehicle owner 9 and/or Department and the towing service are 10 completed. 11 (i) Towing service operators shall transport a vehicle 12 to any location requested by the owner/operator 13 - after financial obligations have been finalized. 14 ( j ) All tow trucks are prohibited from chasing or 15 • running wrecks without a bona fide call from 16 dispatcher or request from the owner. In addition 17 to other penalties or sanctions provided by law, a 18 towing firm violating this rule on two (2 ) or more 19 occasions in a six (6 ) month period shall be removed from all Call Lists under the procedures of Section 21 XIII . 22 (k) In the event that a call is received directly from 23 a vehicle owner, or their representative , to respond 24 to an accident scene, no tow truck shall remove the 25 vehicle from the scene of the accident without 26 notification to, and approval by, a law enforcement 27 agency. 13 . 1 ( 1) Soliciting for towing work at the scene of an 2 accident is prohibited by the owner, operator, or 3 representative of any towing service. 4 (m) When and how the emergency flashing lights are to 5 be used is left to the prudent discretion of the 6 towing operator or the policy 'of the towing 7 service. 8 (n) Towing operators who fail or refuse to answer a 9 call, or who fail to respond within thirty ( 30) 10 minutes as required in Section IX (a) ( 1) , will lose 11 the call . If two (2) calls are missed or refused 12 within any six (6) month period, an investigation 13 _ will be made by the Commissioner and suspension or 14 removal pursuant to Section XIII will be considered. 15 (0) Towing companies may provide no more than one ( 1) 16 alternate telephone number. "Call-waiting" and 17 "Call-forwarding" are recommended; pagers and 18 beepers do not satisfy the requirements of this 19 rule . 20 (p) A chronological record of vehicles towed pursuant _ 21 to the Department rotation list shall be maintained 22 and opened to the Commissioner or a designated 23, representative for inspection upon request and 24 reasonable notice . 25 (q) The vehicle owner/operator shall be responsible for 26 payment of all towing and related service charges , 27 except storage charges accruing while the vehicle 14 1 is under a "hold" order, in which event such charges 2 shall be paid by the Department . Payment shall be 3 rendered prior to delivery or release of the vehicle 4 by the towing company. 5 X. GENERAL RULES 6 (a) Owners will not be permitted to operate towing 7 services under more than one company name out of the 8 same location. 9 (b) Towing owners shall not be permitted more than one 10 ( 1) towing service on a Call List in any zone, ,and 11 duplicity of ownership interest shall be grounds for 12 _ removal of all but one company from the Call List . 13 This rule does not prohibit towing services from 14 sharing common storage facilities . 15 (c) All towing service operators shall comply with the 16 traffic laws of the State of 17 . (d) Towing services shall abide by all rules and 18 procedures of the Department. 19 (e) These rules and procedures should not be construed 20 in any way to conflict with any provision of state 21 law. Should there be a conflict, state law will 22 prevail . 15 _,. v.,. ... .....__.,_.. .._._..,... .. _ . .. _... .. ... .. ._-_... .. .... 1 XI .. RATES AND CHARGES 4 (a) It is not the policy of the Department to regulate, 3 supervise or arbitrate the fees and charges for 4 towing and storage services provided by towing firms 5 listed on the Department Call Lists . 6 (b) Disputes regarding service fees , or allegations of 7 overcharging by vehicle owners, are hereby _deemed 8 to be civil disputes between the towing firm and the 9 -- vehicle owner, and upon any complaint being made to 10 the Department the complainant will be referred to 11 a competent court of civil jurisdiction. 12 (c) The Department will, however, maintain a log of 13 - complaints lodged against towing firms which 14 participate in the Call Lists . A towing firm is 15 subject to be suspended or removed from a Call List, 16 pursuant to the procedures set forth in Section XIII 17 of these Rules and Procedures , if either of the 18 following circumstances occur: 19 ( 1) Excessive complaints If a tow operator is the 20 subject of four (4 ) or more bonafide complaints F11-1-- 21 concerning fees and charges in any six ( ) 22 month period. Such suspension or removal shall 23 � ` be made without consideration or adjudication 24 of the reasonableness of the charges, but shall 25 be due to excessive complaints which reflect 26 poorly upon the integrity of the Department . 27 (2) Court-ad 'udicated overchar• in• If it is 16 • • 1 determined by a court ruling or order following • 2 a trial on the merits , that a towing firm has 3 charged excessive towing and/or storage fees 4 on calls derived from the Department Call List 5 on two (2) or more occasions in any six ( 6 ) 6 month period. 7 XII . •"GRANDFATHER" PROVISIONS 8 (a) Those towing services participating in the Call List 9 prior to July 1, 19XX are exempted from the 10 requirements and specifications in Section V through 11 VIII, inclusive, for a period of two (2 ) years . 12 (b) Effective July 1, 19XX, any new towing company 13 applying for placement on the Call List, or any 14 service removed from the list for a period of more 15 than thirty (30) days and requesting reinstatement, 16 will be subject to all requirements set forth in 17 these rules and procedures . 18 (c) Effective January 1, 19X2 , ALL towing companies on 19 the Call List shall be subject to the requirements 20 set forth in these Rules and Procedures . Towing 21 services not complying with these requirements shall 22 be removed or refused placement on the Call List . 23 XIII . DENIAL, SUSPENSION, REVOCATION PROCEDURES 24 (a) The Department may deny, suspend, and/or remove from 25 the Rotation Call List, as the case may,,.be, any 17 1 operator who fails to qualify therefore as provided 2 in the foregoing rules and procedures . 3 (b) The Department may deny, suspend, and/or remove from 4 the Rotation Call List, as the case may be, any 5 operator who has committed a violation of these 6 rules and procedures . 7 (c) In the event that the Department has determined that 8 a towing firm should be denied, suspended, and/or 9 that an operator should be denied or removed from 10 the Rotation Call List for any reason, the following 11 procedures shall apply in accordance with ,the 12 Administrative Procedures Act (APA) : 13 ( 1) The Department shall send by certified mail, 14 return receipt requested, a Notice of 15 Department Action containing all information 16 required by the APA to the concerned applicant 17 or towing operator at his last known address 18 as reflected by the records of the Department. 19 (2 ) The notice shall provide that the Department 20 action shall become effective ten ( 10) days 21 after receipt thereof by the applicant=or 22 towing operator, unless the operator timely 23 files a written request for a hearing with the 24 Department . Such request shall be timely when 25 filed prior to the effective date of the 26 Department Action. 27 ( 3 ) If a timely hearing is requested such hearing 18 1 shall be scheduled not less than seven ( 7 ) day:: . 2 nor more than fifteen ( 15 ) days from the date 3 the Department receives the request. 4 (4 ) The Department hearing officer shall be 5 designated by the Commissioner and each party` 6 shall be afforded an opportunity to be heard 7 and to present evidence, and to be represented 8 by legal counsel . 9 (5) The hearing officer shall render a decision 10 thereon based upon the law and the evidence 11 presented and each party shall be promptly 12 notified either personally, or by mail . 13 ( 6) Unless the hearing officer timely receives a 14 written request for a rehearing, reopening or 15 reconsideration of the decision as provided by - 16 the Administrative Procedures Act, such hearing 17 officer shall, after ten ( 10) days from the 18 entry of the decision, enter an appropriate 19 final order thereon and each party shall be 20 notified by personal service or by mail . 21 (7 ) If an operator fails to appear at tcheduled 22 hearing without good cause , the hearing officer 23 shall record the nonappearance and enter: a 24 final order reflecting the effective date 25 prescribed above in Paragraph 2 in lieu of the 26 decision and final order as prescribed in 27 Paragraphs 5 and 6 . Each party shall be 19 1 promptly notified thereof either personally or 2 by mail . 3 (8 ) I.f the Department representative fails to 4 appear without good cause the hearing officer 5 shall record the nonappearance and enter a 6 final order of dismissal of the Department 7 Actions; such order of dismissal shall be 8 without prejudice if the basis for the action 9 constitutes noncompliance or a continuing 10 violation of these rules and procedures . Each 11 party shall be promptly notified thereof either 12 personally or by mail . 13 (9 ) Where a timely written request for a rehearing, 14 reopening or reconsideration of the case is 15 received, the Department Action shall be stayed 16 until a final order has been entered, except 17 as provided in Paragraph 10 below. 18 ( 10) Notwithstanding Paragraphs 2 through 9 above, 19 Department Action shall become effective 20 immediately where: 21 (i) An original application for placement on 22 a Call List is denied for failure to qualify 23 under these rules and procedures . 24 (ii) The Department finds that the health, 25 safety, or welfare of the public imperatively 26 requires such action and finding to that effect 27 is incorporated in its order, pursuant to the 20 1 Administrative Procedures Act . 2 ( 11 ) Where the Department has determined that a 3 minor disqualification and/or violation exists 4 which may be readily rectified by the applicant 5 or operator, the Department may informally 6 notify such party by mail or telephone of such 7 minor disqualification of violation, with a 8 request for compliance within a specified 9 period of time. If such party fails to rectify 10 the minor disqualification or violation, the 11 Department may proceed according to other 12 provisions of these rules and procedures . 21 ii• Cl City of Shakopee Memorandum Memo to: Mayor and City Council Mark McNeill, City Administrator From: Mark J. McQuillan, Director of Parks and Recreation Re: Playground Equipment for Meadows Park Date: November 29, 1996 INTRODUCTION Staff has proposed in the 1997 Parks Capital Improvement Program Budget that$25,000 be allocated for improvements to the park in the Meadows 9th Addition. The park is located on Sage Lane about 300 meters south of Vierling Drive (see map on Attachment A). About $19,000 will be allocated for the purchase and installation of new playground equipment. The remaining funds will be used for a hardcourt surface area for basketball and a path to the playground equipment. BACKGROUND This is a 1997 project, but staff would like to order the equipment now and not pay for it until 1997. By ordering the equipment in 1996, we are garuanteed 1996 prices and it will be delivered and installed in April of next year. Request for Proposals were sent to two playground equipment suppliers with certain minimum design requirements established by the Parks and Recreation Director. Each proposal was to include costs of equipment plus sale tax, shipping and installation. The equipment shall also have a ten year minimum warranty and meet or exceed all current safety standards established by the Consumer Product Safety Commission's Handbook for Public Playground Safety and/or the ASTMF1487-93 Standard Consumer Safety Performance Specification for Playground Equipment for Public Use. Companies supplying the equipment must carry $1 million of Product Liability Insurance.Not included in the RFP are: site preparation(grading), materials for the protective surface and the border. The two suppliers were asked to submit a base unit proposal not to exceed $15,000. The suppliers are Flanagan Sales (Little Tikes Commercial Playground Equipment)and Bob Klein and Associates (Miracle Recreation Equipment Company). The Selection Committee, which consisted of residents from the Meadows 9th Addition neighborhood, decided which base unit they wanted in the park. The swing-set,two riders and three benches were not included in the proposal, but they will be purchased from the company chosen to supply the base unit. The additional equipment will cost$3,218.84 bring the total purchase to $18,218.84. After careful review,the Selection Committee chose Bob Klein and Associates which represents Miracle Recreation Equipment Com an . pp Y ALTERNATIVES 1. Purchase playground equipment from Flanagan Sales (Little Tikes Commercial Playground Equipment). 2. Purchase playground equipment from Bob Klein and Associates(Miracle Recreation Equipment Company). 3. Table for further information from staff. 4. Do nothing. PARKS AND RECREATION ADVISORY BOARD'S RECOMMENDATION Alternative # 2 ACTION REQUESTED Move to authorize the appropriate City officials to utilize Park Reserve Funds for the purchase of playground equipment from Bob Klein and Associates not to exceed $18,218.84 payable upon completion of the installation. O Li 8' PVC Coaled Bench I _ i i U ` 00 r. r i 1 , Cto r 1 _c L 1 W C I W cc J i % \ / 066/ 081,-K9 09f/f/,8 OroBL OroBL - 'N3Hl/9 ro lo35 d5/,8 LV3S d5/,8 /: / 1,/l c• j 7..4I \ Qkq. 1 a Z CO �1 //��� o LL n '^ W Q '0� Vl �C1 grit 10p',k '� C\1 ' — — -- s°'Ot ,—_ e xku0 ae CC. co ,/ ttl0 • ,p V1 Jn t0 " ' r'' 1,'- -10,< , 3o� I � / 40 i3INkHc P r ``/m• '',MNOtiy�` 1. OI . Y• uv d Nr 3.,61= -6') . ) O sem, /• / ��it y * cc • O D N V W Ur N O C Q O C O A y O aL 0 U1 \ • ,.E N W , °•o' er ' y E0Eo' :0 / O Vo LE .9 w L• O6f�yf.9`' > Pa .Lc NCV •,h ti y N 'y r L C a W 9- O-2,j) 2,V1 C vagi v L O C Y -5 ,U 1, OO�` 0) °ay o.�o oy a' v - 0,.. O i0 02 it — E cl�v0 _Q7 m j 0.. Q n7 C o .o J VI N j Y — ,"8,P�O C7 a > -�Op 0 O _ O 0.8 PG OOJ 36d .9 1 D l7 v E as z Z y v n, - o -w z :- .,, -r 2,,„ <, jl. a. l, CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: Transit Budget DATE: November 26, 1996 Introduction: Accompanying this memorandum is the revised 1997 transit budget. Included in this budget is a one-time payment of carryover funds from the Metropolitan Council in the amount $205,000. With and eye toward the 1998 budget, and in order to deal with the increased costs of providing transit service, staff will shortly be bringing suggested changes in service levels and/or fares to the City Council for consideration. Action Requested: Direction to staff as to the proposed transit budget or any revisions which should be made prior to final adoption. R. Michael Leek Community Development Director TRANSIT.DOC/RML 1 TRANSIT FUND 1997 BUDGET ACTIVITY: The transit system began operation in September of 1984. Subsidy is provided under contract with RTB. Service is comprised of van pools for trips outside of Shakopee and a dial-a-ride service for internal trips. Express route bus service to Eden Prairie Center and Downtown Minneapolis is also provided twice daily during peak A.M. and P.M. travel times. Private carriers provide the service and are under contract with the City. City Staff monitors the contract. OBJECT DESCRIPTION: Description of lines items: Salaries: Share of City Staff. Utilities: Contracts with transit providers. CITY OF SHAKOPEE, MINNESOTA 1997 BUDGET TRANSIT FUND BUDGET SUMMARY 1994 1995 1996 1997 Actual Actual Proposed Proposed Revenue Property Taxes $ 293,309 State Aid 288,831 308,124 395,000 83,263 State Grants 257,000 Fares 58,489 63,322 68,400 , 68,400 Transfer in General Fund - - Total Revenue 347,320 371,446 463,400 701,972 Expenditures Personal Services 4,925 6,562 8,250 6,720 Supplies& Services 342,445 364,884 455,150 490,050 Capital - - Total Expenditures 347,370 371,446 463,400 496,770 Excess(Deficiency) Of Revenues over Expenditures&Transfers $ (50) $ - $ - $ 205,202 Fund Balance $ 2,653 $ 2,653 $ 2,653 $ 207,855 Note: The $257,000 in 1997 revenues as State Aid is a 1 time carryover of funds from Met Council for$205,000 and Private Vehicle Capital payments from the RTB for $52,000. CITY OF SHAKOPEE PROGRAM BUDGET WORKSHEET FOR THE YEAR ENDING 12/31/97 PROGRAM PROGRAM PROGRAM 142 143 144 DIAL-A-RIDE VAN POOL CIRCULATOR TOTAL TRANSIT 4101 WAGES FT REG 2,000 2,000 2,000 6,000 4121 PERA 90 90 90 270 4122 FICA 150 150 150 450 Total PERSONNEL SERVICES $2,240 $2,240 $2,240 $6,720 4210 OPERATING SUPPLIES 500 500 500 1,500 4222 MOTOR FUELS & LUBRICANTS 0 20,000 0 20,000 4310 PROFESSIONAL SERVICES 36,000 1,000 1,000 38,000 4330 TRAVEL/SUBSISTENCE 100 0 0 100 4340 ADVERTISING 1,000 1,000 1,000 3,000 4350 PRINTING/PUBLISHING 500 500 500 1,500 4360 INSURANCE 100 100 100 300 4380 UTILITY SERVICE 319,000 70,000 35,000 424,000 4410 RENTALS 500 500 500 1,500 4433 DUES 50 50 50 150 Total SUPPLIES & SERVICES $357,750 $93,650 $38,650 $490,050 TOTAL TRANSIT $359,990 $95,890 $40,890 $496,770 CITY OF SHAKOPEE 1997 BUDGET Division Budget Object 12/31/94 12/31/95 12/31/96 Y-T-D DEPARTMENT PROPOSED Code Description ACTUAL ACTUAL BUDGET 10/31/96 REQUEST BUDGET = __---_ 114 -TRANSIT DIVISION 17 - COMMUNITY DEVELOPMENT 4101 WAGES FT REG 4,394 5,854 6,000 1,325 6,000 6,000 4121 PERA 197 262 270 59 270 270 4122 FICA 334 445 450 101 450 450 4131 HEALTH & LIFE 0 0 780 0 0 0 4151 WORKERS COMPENSATION 0 0 750 0 0 0 PERSONNEL SERVICES 4,925 6,562 8,250 1,485 6,720 6,720 4210 OPERATING SUPPLIES 0 0 1,500 0 1,500 1,500 4222 MOTOR FUELS & LUBRICANTS 19,301 15,917 0 10,064 1,000 20,000 4310 PROFESSIONAL SERVICES 2,948 3,385 32,000 23,621 37,000 38,000 4320 POSTAGE 1,151 0 2,100 0 2,100 0 4321 TELEPHONE 0 1 150 0 150 0 4330 TRAVEL/SUBSISTENCE 122 50 210 97 210 100 4340 ADVERTISING 7,961 3,794 15,000 2,907 15,000 3,000 4350 PRINTING/PUBLISHING 2,109 1,287 5,000 349 6,000 1,500 4360 INSURANCE 300 300 300 300 300 300 4380 UTILITY SERVICE 307,354 339,051 382,000 316,004 410,000 424,000 4390 CONFERENCE/SCHOOL/TRAINING 0 0 240 0 240 0 4410 RENTALS 1,200 1,000 1,500 1,500 1,500 1,500 4430 DESIGNATED MISCELLANEOUS 0 0 15,000 0 0 0 4433 DUES 0 100 150 0 150 150 SUPPLIES & SERVICES 342,446 364,884 455,150 354,843 475,150 490,050 TOTAL COMMUNITY DEVELOPMENT DIVISION 347,371 371,446 463,400 356,328 481,870 496,770 _alfa_= a=====_ _______ _= === ___________ CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: Purchase of Hewlett-Packard Copyjet Color Printer/Copier DATE: November 25, 1996 Introduction: With the recent passage of the City's 1995 Comprehensive Plan, staff sought estimates for the cost of making 150 copies with color graphics. Parkside Printing provided an estimate of$5,976.00. Kinko's estimate for the entire job for$4,913.11. The School District can do black/white only for $766.80 (price for color copies only at Kinko's is $3,465) for a total of$4231.80. In light of the high cost of printing, staff has looked at the option of purchasing a color printer/copier, which could be used be city staff in general for the creation and copying of color charts, drawings and other graphics. The cost of the Hewlett-Packard Copyjet through OPM is $2375.00 plus tax. The cost of color copies using the Copyjet is 17 cents per copies, as compared with $2.49 per color copy at Kinkos. The source of funds for the copier/printer would be the Community Development printing budget. Alternatives: • 1. Approve the request to purchase a Hewlett-Packard Copyjet color printer/copier. 2. Deny the request to purchase a Hewlett-Packard Copyjet color printer/copier. 3. Table the request for additional information. Staff Recommendation: Staff recommends Alternative 1. Action Requested: A motion to approve purchase of a Hewlett-Packard Copyjet c or printer/copier.ite i�LGl� .f R. Michael Leek Community Development Director COPIER.DOC/RML N./3/3 CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: EDA Compensation DATE: November 26, 1996 Introduction: At the Council's last meeting, it was apprised of the statutory requirement on compensation for EDAs. Subsequently, staff contacted several communities believed to have EDAs to learn what compensation was provided their EDAs. Five communities responded. The information gathered is consistent with City Attorney Thomson's impressions that many communities do not compensate their EDA boards. One of the cities contacted proved to have an HRA, rather than an EDA, but commented that the compensation consisted of a"can of pop." Two cities, Brooklyn Center and Burnsville, have city councils which also function as the EDA board. Neither of those cities pay additional compensation for EDA responsibilities. Crystal and Richfield have separate boards which are volunteer and uncompensated. Presently, the Board of Adjustments and Appeals/Planning Commission for the City receives $50.00/meeting in compensation up to a maximum of$100.00/month. With the BOAA/PC going to 2 meetings a month as of January 1997, that could result in total compensation(assuming all commissioners attending 2 meetings a month) of$8400.00. Alternatives: 1. Approve compensation in an amount determined by the City Council to be appropriate, and in compliance with state statute. 2. Approve compensation in an amount equal to that provided to the Board of Adjustments and Appeals/Planning Commission. 3. Table the matter for further information or other reasons. Recommendation: Staff recommends Alternative No. 1. EDA.DOC/RML 1 Action Requested: A motion directing staff to implement its decision regarding EDA compensation. r R. Michael Leek Community Development Director EDA.DOC/RML 2 1r II E 1, CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: Tax Increment Payment to ISD 720 DATE: November 26, 1996 Introduction The agreement between the City and ISD 720 on the remittance of tax increment generated by a school referendum has a clause that the City Attorney deems to be without legal basis . Packground Several years ago, the City and ISD 720 entered into an agreement to remit tax increment generated as a result of a school referendum levy to ISD 720 . This was to provide full funding and pass along all taxes approved by the voters to the intended purpose . Over the ensuing years, the legislation has changed and new TIF districts have been created. The City Attorney has analyzed the agreement and determined that for the newer TIF districts (#7 - MEBCO and #9 FMG) there is no authority in law to remit any portion of the increment to ISD 720 . The 1996 semi-annual amount is $3 , 127 for district 7 and $36, 863 for district #9 . The first half tax settlement amounts were sent to ISD 720 in June as part of a total payment of $113 ,403 . The school districts attorney has reviewed the situation and concurs with the city attorney. Another facet of this issue is whether other recipients will make a claim on the city for increment that went to ISD 720 but should have been paid to them under the development agreement . That agreement is a "pay as you go" tax increment through 1997 . Alternatives 1 . Negotiate new agreement with ISD 720 . 2 . Continue to remit increment as previously done . 3 . Stop remitting increment due to districts #7 and 9 . Recommendation Recommendation is to comply with the statutes as per the City Attorney and stop remitting tax increment to ISD 720 from TIF districts #7 and 9 . Action Move to not remit any tax increment to ISD 720 generated by TIF Districts #7 and #9 . Gregg Voxland FinaAce Director • KENNEDY & GRAVEN CHARTERED Attorneys at Law JAMES J.TNOMSON 470 Pillsbury Center,Minneapolis,Minnesota 55402 LARRY M.WERTHEDN ROBERT A.Alcor (612)337.9300 BONNIE L WILKINS BRUCE M.BATTERSON Joe Y.YANG RONALD H.BATTY Facsimile(612)337.9310 — STEPHEN J.BuBUL DAviD L.GRAVEN(1924.1991) JOHN B.DEAN DANIEL J.GREWSWEIG DAVID J.KENNEDY OF COUNSEL CHARLES L.LZFEVERE WRITER'S DIRECT DIALROBERT C.CARLSON JOHN M.LZFEVRE,JL ROBERT L.DAVIDSON ROBERT J.LINDALL WELLINGTON H.LAW ROBERT C.LONG FLOYD B.OISON JAMES M.STROMMEN CURTIS A.PEARSON Column A THOMSON T.JAY SALMEN October 9, 1996 Greg Voxland Finance Director City of Shakopee 129 Holmes St S. Shakopee, MN 55379-1376 RE: Tax Increment Agreement with ISD No. 720 Dear Greg: You asked us to review and comment on the Joint Powers Agreement between the City of Shakopee and the Independent School Board No. 720 dated November 17, 1988 (the "Agreement"). The Agreement provides for certain payments by the City to the School District of tax increment attributable to school levy referenda. The portion of the Agreement that remains relevant today is Section IILB.6., which provides: For the 1995/payable 1996 levy and for the levy for each year thereafter, the City agrees to pay to the School District all amounts of increment from any existing or thereafter created tax increment financing districts that are attributable to any increase in the mill rate as a result of any referendum levy authority approved by the voters of the School District. As I understand the facts, the City has created 9 tax increment financing districts ("TIF Districts"). TIF District Nos. 2 through 6 were created prior to May 1, 1988; TIF Districts Nos. 7 through 9 have been created after that date. There is an existing referendum levy in the amount of 18.9%, which commenced in 1992 and expires in 1997, and is spread on tax capacity. However, the school district will likely seek an additional referendum levy upon expiration of the current levy. SJB110753 Sx15S-13 Greg Voxland October 9, 1996 Page 2 To analyze the Agreement, it may help if I briefly describe how tax increment is calculated and how legislative changes have affected that process. Under the tax increment statute (Minnesota Statutes, Sections 469.174 to 469.179) tax increment is calculated by adding the local tax rate (formerly "mill rate") for each taxing jurisdiction in each tax year, and applying that aggregate rate to the captured value in a TIF District. If a school levy is in place at the time the district is created, that levy amount is part of the total tax rate and will result in tax increment to the authority. Until 1988, any tax rate increase after the TIF District was created would generate increased tax increment payable to the authority. So, if a school levy was approved after a TIF District was in place, the levy dollars were captured as tax increment and remitted to the authority. In 1988, the legislature introduced the concept of an "original local tax rate" (see Section 469.177, subd. la.). For TIF Districts created on or after May 1, 1988, the tax rate in effect at the time the TIF District is created is the "frozen rate" for the life of the district. (Actually, it is a frozen cap--if the actual rate declines, so does the original rate.) If a school referendum levy is approved after the TIF District is filed, such increased rate is not captured as tax increment; the taxes attributable to that rate increase go to the school district. However, any school levy already in place at the time the TIF District is created is included in the original local tax rate. Also in the 1988 session, the legislature authorized cities to make payments to school districts from TIF Districts created before May 1, 1988,is circumstances where a school levy referendum was approved after the TIF District was certified (see Section 469.177, subd. 10). This provision allowed cities to accomplish the same effect for old districts that the "original local tax rate" creates for new ones. Payment to school districts under Section 469.177, Subd. 10 is mandatory if, at the time the referendum is approved, there are no bonds outstanding that were issued before May 1, 1988. If such bonds were outstanding, the city nity.pay over levy-related increment from pre-May 1, 1988 districts if both the city council and school board approve. The Agreement at issue here states that the City has agreed to pay tax increment from the 1992- 97 school levy (and any future levies), from both old districts and those created since May 1, 1988. As you can see, the analysis is different for the two time periods. Pre-May 1, 1988 Districts (TIF Districts Nos. 1-6) The first question is whether payments from these districts are required under the statute. The payment would be mandatory if, at the time the 1992 levy was approved, there were no bonds outstanding that were issued before May 1, 1988. It appears from the terms of the Agreement that bonds secured by increment from TIF Districts No. 1 through 6 were outstanding as of May • S7B110753 SN155-13 Greg Voxland October 9, 1996 Page 3 1, 1988. Therefore, levy-related payments at the time the Agreement was entered into were in fact optional. If the pre-May 1, 1988 bonds remained outstanding when the 1992 levy was approved, the payments in years 1992 through 1997 would also be optional. If the bonds had been refunded as of the levy approval (so that no bonds then outstanding had actually been issued before May 1, 1988) the 1992-97 payments would be mandatory. However, regardless of whether the payments from these TIF Districts were required under the statute, the City voluntarily agreed to make them as authorized under Section 469.177, Subd. 10. While the City could request renegotiation of this portion of the Agreement, it is consistent with the statute and is likely enforceable by the school district. Post-May 1, 1988 Districts For these districts, the question is whetheram,payments of tax increment to the school district are in fact authorized under the statute. The tax rate for each TIF district created on or after May 1, 1988 was frozen at the time it was created. Consider a TIF District created before the 1992 levy went into effect. The amount of any existing levy was included in the "frozen rate" and is treated as tax increment. To the extent that the 1992 levy resulted in an increase in the total tax rate over the "frozen rate," such increase was excluded from the tax increment calculation. The tax dollars from that rate increase already go directly to the school district, so any additional payment would be double-counting. Now consider a TIF District created after the 1992 levy was approved. The amount of the levy was included in the frozen rate, just as the amount of any existing levy was included in the frozen rate for a district created before 1992 as described above. In both cases, the pre-existing levy amount is treated as tax increment. However, I am aware of no statutory provision that allows the City to pay the school district tax increment created by a levy that was already in place when the TI District was created, unless the payment is for a TW-eligible cosy(such as a recreational facility or community center). A city may agree to retain only a portion of the captured tax capacity under Section 469.177, subd. 2, but in that case the non-captured tax capacity goes to all taxing jurisdictions. The payments under the Agreement go only to the school district. The practical effect is that tax increment is diverted to pay the operations of another governmental entity, which is prohibited under the tax increment statute. A logical question is why the school levy should be treated differently when it is is approved before versus after a TIF District is created. One explanation lies in the differing expectations of the school district and the authority in each circumstance. If a school levy is in place, a subsequent TIF District generates additional levy revenues that the school district could not reasonably have anticipated--indeed, they are revenues that would not exist "but for" the tax SJB110753 SH1S5-13 Greg Voxland October 9, 1996 Page 4 increment district. Therefore, it seems fair to allow the authority to collect the increment generated from the pre-existing levy. On the other hand, when a new or increased levy is approved after a district already exists, the levy generates additional revenues that the authority could not reasonably have anticipated. The tax increment financing plan is based on the tax rates in place at the outset, and the additional increment from a subsequent school levy would create something of a"windfall" to the authority. Consequently, it seems fair to allow the school district to collect the levy dollars in this circumstance. The 1988 legislation struck this balance of expectations between the two jurisdictions, but did not go further and provide for payments of all school levy-related tax increment directly to a school district. Future Districts The analysis for all TIF Districts created through the end of 1997 is the same as above: levies in place when the district is created are part of the tax increment; levy increases approved subsequently will go to the school district by operation of law. The situation will most likely change if voters approve a subsequent school levy for taxes payable in 1998 or thereafter. That levy will be spread on market value rather than tax capacity. Because the market value tax rate is not compatible with the tax rate used for tax increment purposes, the market value levy will not generate tax increment at all. (The statute is not clear on this point, but I understand that in counties where market value levies are currently in place, the levy goes directly to the school district whether or not the value is captured in a TIF District). Barring legislative changes, future school levies will likely go directly to the schools and the underlying rationale for the Agreement will be eliminated. Arguably, there will be no tax increment attributable to a market-value school levy, and thus no payment to the school district will be required. Summary To recap the above discussion: • The Agreement probably obligates the City to continue making payments attributable to the 1992 school levy from TIF Districts Nos. 1 through 6. If that levy is replaced by a new one when it expires at the end of 1997, the new levy will probably not produce tax increment (because of the market value levy system), and no payment to the school district will be required. S7B110753 SH155-13 Greg Voxland October 9, 1996 Page 5 • In my view, any payments to the school district under the Agreement from TIF Districts created since May 1, 1988 are not authorized by the statute; in fact, they are arguably prohibited. That portion of the Agreement is most likely unenforceable. • The City may want to consider discussions with the school district regarding modification of the Agreement. If so, the provision requiring payments from post-May 1, 1988 TIF Districts should be eliminated. In that regard, Section V of the Agreement states that if any provision is found unlawful, the parties "shall attempt to agree upon an amendment to replace the unlawful part or jointly seek such actions from the Legislature, including special legislation, as may be necessary to make the terms of this Agreement fully enforceable." If the City wishes to re-open the Agreement with the school district, we can discuss further the extent to which such language obligates the City in any way; for now, I simply bring it to your attention. I apologize for the long answer to your short question, but I think you can appreciate the complexity of the issues raised by the Agreement. If you have follow-up questions or need more information, please contact me or Jim Thomson. Very truly yours, 54, :TAAL Stephen . Bubul SJB:gak cc: Mark McNeil Jim Thomson S7B110753 SH155-13 • JOINT POWERS AGREEMENT This Joint Powers Agreement is made pursuant to Minnesota Statutes, Section 471.59 by and between the School Board of Independent School District No. 720 (Shakopee) , Minnesota and the City Council of the City of Shakopee, Minnesota. In consideration of the mutual covenants and provisions con- tained in this Agreement, the parties agree as follows: I. BACKGROUND A. Prior to January 1, 1988, the City of Shakopee (the "City") approved the establishment by the Housing and Redevelopment Authority in and for the City of Shakopee, Minnesota (the "HRA" ) of the following tax increment financing districts within Minnesota River Valley Housing and Redevelopment Project No. 1: Tax Increment Financing District No. 1 (K-Mart) ; Tax Increment Financing District No. 2 (Elderly High-Rise) ; Tax Increment Financing District No. 3 (Downtown) ; Tax Increment Financing District No. 4 (Racetrack) ; and Tax Increment Financing District No. 6 (Shakopee Valley Motel) . As used in this Agreement, the term "City" shall mean the City and/or the HRA as the context may require. C. Prior to January 1, 1988, the City issued various issues of general obligation tax increment bonds and two issues of non- general obligation tax increment revenue bonds and pledged the increment from the tax increment districts to the payment of the principal and interest thereon. • D. In May, 1982, the voters of Independent School District No. 720 (the "School District" ) approved a referendum levy in the amount of 11.5 mills times the most recent taxable valuation of the School District for a three-year period, i.e. , the 1982/payable 1983 levy for the 1983/84 school year, the 1983/payable 1984 levy for the 1984/85 school year, and the 1984/payable 1985 levy for the 1985/86 school year. This levy authority expired by its terms after the 1984/payable 1985 levy. In October, 1985, the voters of the School District approved a referendum levy in the amount of 5.5 mills times the most recent taxable valuation of the School District for a three year period, i.e. , the 1985/payable 1986 levy for the 1986/87 school year, the 1986/payable 1987 levy for the 1987/88 school year, and the 1987/payable 1988 levy for the 1988/89 school year. This levy authority expired by its terms after the 1987/payable 1988 levy. D. On March 8, 1988, the voters of the School District approved a referendum levy pursuant to Minnesota Statutes, Section 124A.03, Subdivision 2 in the amount of 19.79 mills times the most recent taxable valuation of the School District. Of this authorization, 9.0 mills was a continuing levy authority, with authorization granted until revoked or reduced as provided by law; and, 10.79 mills was authorized for a 3 year period, i .e. , the 1988/payable 1989 levy for the 1989/90 school year, the 1989/payable 1990 levy for the 1990/91 school year, and the 1990/payable 1991 levy for the 1991/92 school year. The 10.79 mill levy authority will expire by its terms after the 1990/payable 1991 levy. -2- E. As a part of the 1988 Omnibus Tax Bill (Laws 1988 , Chapter 719 , Article 12, Section 24 ) , the 1988 Legislature amended the tax increment law to provide under certain cir- cumstances for distributions by cities and other tax increment authorities to school districts of tax increment generated as a result of school district referendum levies. Under the provi- sions of Minnesota Statutes, Section 469.177, Subdivision 10, if a city has requested certification of tax increment financing districts and projects before May 1, 1988, and if those tax increment districts or projects are located within a school district in which the voters have approved new millage or an increase in millage after the tax increment financing districts were certified, and if the referendum increasing the mill rate was approved after the most recent issue for bonds to which increment from the districts is pledged, then, upon approval by a majority vote of the governing body of the city and the school district, the city must pay to the school district an amount of increment equal to the increment that is attributable to the increase in the mill rate as a result of the referendum. The amounts of these increments paid by a city to a school district may be expended and must be treated by the school district in the same manner as provided for the revenues derived from the referendum levy approved by the voters. -3- II. PURPOSE The purpose of this Joint Powers Agreement is to provide the terms upon which the City shall make distributions to the School District of amounts of increment attributable to the increase in. the mill rate as a result of the School District's March 8, 1988 referendum and as a result of any subsequent referendum levies which may be approved by voters of the School District. In arriving at this Agreement for a TIF Capture Phase-Out, it is the intention of the parties to address three mutual goals: 1. To reduce ultimately School District and City tax bur- dens and to provide the potential for property tax relief for the residents and taxpayers of the City and the School District; 2. To protect the City's debt service obligations in regard to existing tax increment bond issues; and 3. To protect the School District's programs and to reduce School District operating debt as much as possible in the 1988/89 school year and thereafter. III. DISTRIBUTION OF INCREMENT A. The parties have been fully advised and understand the laws relating to the distribution of tax increments, generated as a result of School District referendum levies, by the City to the School District. B. The parties agree to distribution of increment as follows: -4- • 1. For the 1988/payable 1989 levy for the 1989/90 school year and for the levy for each year thereafter, the City agrees to pay to the School District all amounts of increment from Tax Increment Financing District Nos. 1, 2, 3, 4 and 6, or from any tax increment financing districts which are created or increased in size after May 1, 1988, that are attributable to any increase in the mill rate as a result of the 9.0 mill continuing levy authority approved by the voters of the School District on March 8, 1988. 2. For the 1988/payable 1989 levy for the 1989/90 school year, the City agrees' to pay to the School District all amounts of increment from Tax Increment Financing District Nos. 1, 2, 3, 4 and 6, or from any tax increment financing districts which are created or increased in size after May 1, 1988, that are attributable to any increase in the mill rate for that year as a result of the 10.79 mill levy authority approved by the voters of the School District on March 8, 1988. 3. For the 1989/payable 1990 levy for the 1990/91 school year and for the 1990/payable 1991 levy for the 1991/92 school year, the City shall each year retain an amount of incre- ment from Tax Increment Financing District Nos. 1, 2, 3 , 4 and 6 that is attributable to the increase inthe mill rate for that year as a result of a levy of up to 5.5 mills (but not to exceed the actual millage levied) of the 10.79 mill levy authority approved by the voters of the School District on March 8 , 1988. For the 1989/payable 1990 levy for the 1990/91 school year and for the 1990/payable 1991 levy for the 1991/92 school year, the -5- • City shall each year pay to the School District all amounts of increment from Tax Increment Financing District Nos. 1, 2, 3, 4 and 6 that are attributable to any increase in the mill rate for that year as a result of a levy by the School District greater than 5.5 mills of the 10.79 mill levy authority approved by the voters of the School District on March 8, 1988. The City shall also pay all amounts of increment from any tax increment financing districts which are created or increased in size after May 1, 1988 that are attributable to any increase in the mill rate for that year as a result of the 10.79 mill levy authority approved by the voters of the School District on March 8, 1988. As specified above, for the 1989/payable 1990 levy and for the 1990/payable 1991 levies, the School District will receive a por- tion of the increment attributable to the increase in the mill rate as a result of the 10.79 mill levy authority. The School District is urged and the School Board agrees to use its best efforts to provide $100,000 of property tax relief in each of those years. Prior to its certification of School District levies in 1989 and 1990, the School Board shall report in writing to the City Council on its efforts to provide property tax relief in conformance with this provision of this Agreement. -6- 4 . The City understands that the 10.79 mill levy authority of the School District expires after the 1990/payable 1991 levy. It further understands that, in order to meet its continuing operating requirements, the School District may be required to submit a request for an additional referendum levy authorization to the voters in 1991 or thereafter. The City is urged to reassess its need for increment that is attributable to the increase in the mill rate as a result of the School District' s referendum levy. In that the City will be able to make a judgment as to the need for these increments after the receipt of its second half property tax payments in 1990, the City Council shall report in writing to the School Board prior to December 31 of 1990 as to whether it will need that portion of the increment from the property located within Tax Increment Financing District No. 4 that is attributable to School District referendum levies in order to pay principal and interest on its tax increment bonds issued prior to May 1, 1988. The parties understand that the School District will utilize this information in part to determine the approximate size of any levy authoriza- tion request which may to be submitted to the "voters in 1991 or thereafter. The City Council shall make a similar report to the School Board prior to December 31 of 1991 and 1992 as to its need for tax increments attributable to the referendum levy and as to whether any portion of such increments generated from the property located within Tax Increment Financing District No. 4 will be payable to the School District in 1992 and 1993 which then could be utilized by the School District for tax relief or other appropriate purposes. -7- 5. If the School District submits a request for addi • - tional levy authorization to the voters in 1991, 1992 or 1993 and if such authority is granted by the voters at an election held for the purpose, the parties further agree to the distribution of increment as provided hereafter. For the 1991/payable 1992 levy for the 1992/93 school year, for the 1992/payable 1993 levy for the 1993/94 school year and for the 1993/payable 1994 levy for the 1994/95 school year, the City is authorized each year to retain an amount of increment generated from the property located within Tax Increment Financing District No. 4 that is attributable to the increase in the mill rate for that year as a result of the levy of 5.5 mills upon that property (but not to exceed the actual millage levied) of the referendum mill levy authority approved by the voters of the School District and applicable to its 1991/payable 1992, 1992/payable 1993, or 1993/payable 1994 levies. For the 1991/payable 1992 levy for the 1992/93 school year, for the 1992/payable 1993 levy for the 1993/94 school year and for the 1993/payable 1994 levy for the 1994/95 school year, the City shall each year pay to the School District any amount generated by the levy of up to 5.5 mills upon the property located within Tax Increment Financing District No. 4 that it determines it does not need, any remaining amount from Tax Increment Financing District No. 4 that is the result of a levy in excess of 5.5 mills, and all amounts of increment from incre- ment Financing District Nos. 1, 2, 3 and 6 , or from any tax increment financing districts which are created or increased in -8- • size after May 1, 1988, that are attributable to any increase in the mill rate for that year as a result of referendum levy authority approved by the voters of the School District. 6 . For the 1995/payable 1996 levy and for the levy for. each year thereafter, the City agrees to pay to the School District all amounts of increment from any existing or thereafter created tax increment financing districts that are attributable to any increase in the mill rate as a result of any referendum levy authority approved by the voters of the School District. C. Nothing within the provisions of this Agreement shall be construed to prevent the City from terminating any existing tax increment financing district according to its terms or otherwise in the manner provided by law. D. It is the understanding of the parties that, pursuant to the provisions of the 1988 Omnibus 'Tax Bill, mill rates may be converted to tax capacity rates. As such conversion takes place, this Agreement shall be deemed to be amended to carry out the same intent and to reach the same results as specified by the parties herein. -9- E. The City agrees that it shall pay to the School District on an ongoing basis the agreed upon increment as soon as possible, but not more than 15 days after its receipt by City. Whenever a distribution of increment is made, it shall be,. made directly by the City to the School District and shall - not be returned to the County Auditor for further transmission. The City shall maintain its books, accounts, and records in such a manner that the correctness of all payments of increment made to the School District pursuant to this Agreement may be verified. The certified public accountants engaged by the City to audit its books and records shall verify the payments made by the City to the School District in the preceding calendar year pursuant to this Agreement and shall provide a written opinion to the City and School District as to their correctness. IV. DEFAULT A. Any disputes relating to this Agreement or items in this Agreement requiring clarification will be jointly investigated by the Superintendent of Schools of the School District and the City Administrator of the City, or their designees, and they will present their findings and recommendations to their respective governing bodies. -10- B. It shall be a default under this Agreement if either party shall fail to make a payment required on or before the date that the payment is due, or if either party should fail to observe or perform any other obligation, agreement, or covenant , on its part- for a period of thirty ( 30) days after receipt of written notice from the other party specifying the default and requesting that it be remedied. All notices required to be given under this Agreement shall be in writing and be addressed to the Chair of the School Board or the Mayor of the City at the appropriate administrative office. If an event of default has happened or is existing, the other party may take whatever action at law or in equity that may appear necessary or appropriate to collect the amounts then due and thereafter to become due, or to enforce performance and observation of any obligation, agreement or covenant of the other party under this Agreement. No remedy conferred upon or reserved to the non-defaulting party is intended to be exclusive of any other available remedy or reme- dies, but each and every such remedy shall be cumulative and shall be an addition to every other remedy given under this Agreement or now or hereafter existing in law or in equity. No delay or omission to exercise any right or power accruing under any default shall impair any such right or power or be construed to be a waiver thereof, but any such right and power may be exer- t' cised from time to time and as often as may be deemed expedient. In the event any agreement contained in this Agreement shall be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so -11- waived and shall not be deemed to waive any other breach hereunder. In the event either party should default under any of the provisions of this Agreement, and the other party should employ attorneys or incur other expenses for the collection of N payments required hereunder, or the enforcement of performance or observance of any obligation, agreement or covenant on the part of the other party, each party agrees that it will on demand therefore pay to the other party the reasonable fees of such attorneys and such other expenses so incurred by the other party. V.. DURATION; AMENDMENT; SAVINGS CLAUSE This Agreement shall be perpetual in duration. It may only be amended or terminated by a written agreement signed by the appropriate officers of the City and the School District after approval by resolution of the City Council and the School Board. It is not the intention of this Agreement to provide terms that may at the time of their application be unlawful. Should any provisions of this Agreement be found unlawful, the other provisions of the Agreement shall remain in full force and effect if by doing so the purposes of this Agreement, taken as a whole, can be accomplished. Should any provision of this Agreement be found unlawful, the parties shall attempt to agree upon an amend- ment to replace the unlawful part or jointly to seek such action from the Legislature, including special legislation, as may be necessary to make the terms of this Agreement fully enforceable. -12- VI. ENTIRE AGREEMENT; CHOICE OF LAW It is understood and agreed that the entire agreement of the parties is contained herein and that this Agreement supercedes all oral agreements and negotiations between the par ties relating to the subject matter hereof. The laws of the State of Minnesota shall govern as to the interpretation, vali- dity and effect of this Agreement. IN WITNESS WHEREOF, the parties by their respective officers have executed this Agreement on the dates indicated. INDEPENDENT SCHOOL DISTRICT CITY OF SHAROPEE, MINNESOTA NO. 720 (SHAKOPEE) , MINNESOTA By anti ,444.01. BY del pee-Luv C it Mayor 7$46, 44 By IL erk Cler 1 By S. By I Sup intendent AcT, City Administrato Date: November 14, 1988 Date: _ jn�ji.�, ryt) l'i fri_gaZE Approved at the meeting of the Approved at the meeting of the School Board thereof, held on City Council thereof, held on 'tJv the 14th day of November, 1988. the /.S' 3ay of November, 1988. -13- • RESOLUTION NO. 2902 RESOLUTION APPROVING JOINT POWERS AGREEMENT Y WHEREAS, a proposed Joint Powers Agreement has been negotiated and drafted regarding the distribution of certain increment revenues attributable to increases in the mill rate as a result of school district referendum levies; and WHEREAS, a copy of the proposed draft is attached and incorporated by reference; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shakopee, as follows: 1. The attached Joint Powers Agreement is hereby approved; and 2. The Mayor, Clerk, and City Administrator are hereby authorized to execute the attached Joint Powers Agreement. Adopted in 2 -, n1A session of the City Council of the City of Shakopee thl 174.'' day of i'ne A1; J , 1988. Mayor of the City of Shakopee ATTEST: { f ,/ iv" City Clerk Approved as to form this /S. day C'� D00'' , 1988. City A � nev ,a, 11E � CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: Judith S. Cox, City Clerk SUBJECT: Off Sale Liquor License Application MGM Spirits Express, Inc. DATE: November 25, 1996 INTRODUCTION AND BACKGROUND: The City has received an application from MGM Spirits Express, Inc. dba/ MGM Liquor Warehouse for an off sale intoxicating liquor license at 471 Marschall Road. The applicant is acquiring the business from the current licensee, Spirits of Shakopee, Inc. dba/ MGM Liquor Warehouse at the same address. The change in ownership will take affect on January 1, 1997. Because the business is being sold by one corporation to another corporation a new license is required by the new owner. The application and insurance requirements are in order. The police department has conducted the customary background investigation on the proper parties. I have been advised by the Chief of Police that the investigation disclosed nothing to preclude issuing the license as requested. RECOMMENDED ACTION: Approve the application and grant an off sale intoxicating liquor license to MGM Spirits Express, Inc. dba MGM Liquor Warehouse, 471 Marschall Road, effective January 1, 1997, upon surrender of the existing license. Ji J di h S. Cox, C. y Clerk h:\judy\licenses\MGMSPIRI //, 5 , CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: Vehicle Policy DATE: November 25, 1996 Introduction Attached is the proposed Vehicle Acquisition, Use & Replacement Policy which is forwarded for Council adoption. Background Council discussed the proposed vehicle policy at the November 18th worksession. Attached is the policy in final form for adoption. For the most part, the policy just documents current city practice. One item that is new is the requirement of an evaluation by the city mechanic of any vehicle proposed for replacement. Action Offer Resolution 4582 a Resolution adopting a vehicle acquisistion, use & replacement policy, and move its adoption. Gregg Voxland Finance Director RESOLUTION 4582 A RESOLUTION ADOPTING A VEHICLE ACQUISISTION, USE& REPLACEMENT POLICY WHEREAS, the city council desires to formalize a policy for the acquisition, use and replacement of vehicles. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, COUNTY OF SCOTT, MINNESOTA, that the Vehicle Policy is hereby adopted. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of , 1996. Mayor of the City of Shakopee ATTEST: City Clerk City of Shakopee VEHICLE ACQUISITION, USE & REPLACEMENT POLICY • I. PURPOSE& NEED FOR POLICY This policy will provide uniform criteria for all City departments and operations in the acquisition, use and replacement of vehicles. The City of Shakopee is dedicated to managing its resources in a fiscally responsible manner. Therefore, a specific need should be demonstrated before a new vehicle is added to the City's fleet, and every existing vehicle should be utilized to its greatest economic extent prior to replacement. The personal use of City vehicles will be defined to ensure proper accounting and maximum efficiency of public purpose. The acquisition of additional vehicles to the City's overall fleet and their replacement should be only as necessary to allow the City to provide the services and perform the duties and responsibilities that are expected by the public within budgetary constraints. H. VEHICLE ACQUISITION POLICY The many varied aspects of public service provided by the City of Shakopee requires the use of different types of vehicles. These include: Type A) vehicles used primarily to transport employees to/from locations of work activity (i.e. administrative and inspection vehicles); Type B) vehicles necessary to assist City employees in performing their duties (i.e. squad car, survey vehicle, utility repair truck etc.); Type C)vehicles used to actually perform a physical function (fire truck, road grader, dump truck, etc.). The type of vehicle purchased shall be that which is determined to be most appropriate and cost effective for that vehicle's function. However, all administrative/personnel transportation type vehicles shall be of the compact(i.e. Ford Contour, Chevrolet Corsica) or intermediate (i.e. Ford Taurus, Buick Century) class. If a multi-passenger vehicle (MPV) is deemed necessary to maximize personnel transportation capabilities, it shall be of the minivan class for 5-7 seat belts and extended cargo van category for 8-10 seat belts. A. Staff Transportation Vehicles A vehicle shall be acquired by the City of Shakopee and assigned for staff transportation only if one or more of the following occur. 1. If the City has deemed it appropriate to identify the driver and/or passengers as City employees on the way to/from remote work locations or while performing their official duties. 2. a. If a specific job description results in an employee accumulating a minimum of 10,000 reimbursable miles per year on their personal vehicle traveling to/from alternate work locations, or b. If an operational division has a cumulative staff mileage reimbursement of 12,000 miles per year or more. 1 3. If the City Administrator has determined that a vehicle should be provided as part of a position's responsibility and meets the requirements of State Law. 4. A pooled vehicle shall be available at City Hall for multi-departmental use. B. Job Assistance Vehicles 1. In certain circumstances, City provided and equipped vehicles are necessary to allow employees to perform their job functions. In those circumstances, the City shall provide the specific required type of vehicle and equip it with the necessary tools, equipment and devices necessary to allow a City employee to perform their duties in an efficient and safe manner. These vehicles may be assigned to specific employees or be made available through a pool concept within a division or department on an operational basis determined to be most efficient by the department head(s). C. Job Performance Vehicles 1. If a certain specialty type of vehicle is deemed necessary by the department to perform a specific work task, it shall be justified in writing by the department head and approved by the City Administrator subject to budgetary constraints. The method of acquisition (purchase, lease, rental) shall be determined by the Finance Director. 2. Specialty pieces of equipment shall be shared interdepartmentally to the greatest extent possible subject to seasonal/usage availability in order to avoid redundant acquisitions. III. VEHICLE REPLACEMENT POLICY A. Minimum Replacement Standards City acquired vehicles should not be programmed or budgeted for replacement until they have met the guideline replacement standards for the particular vehicle category (see attached). Similarly, vehicles should not be replaced just because they have met the guideline replacement standards. Any deviations for early replacement must be justified in writing by the Department Head and approved by the City Administrator. B. Replacement Evaluation Process Any City ( including Fire Department but excluding SPUC) vehicle which has been proposed for replacement shall have a standard Vehicle Evaluation Form completed with a written recommendation by the City Mechanic, Public Works Supervisor and Department Head delineating the justification for its replacement. A sample Vehicle Evaluation Form is attached hereto. C. Disposition of Used Vehicles Before a vehicle is removed from the City's Fleet, the City Mechanic shall review all City current vehicles of similar type and determine if it would be economically beneficial to switch with another existing vehicle before disposal. All vehicles to be disposed of will be coordinated by the City Mechanic and Finance Director to determine the most economical method and time. Vehicles may be retained for continued use by the City for a period not to exceed 9 months from the date the new vehicle is placed into service. Vehicles removed from service in the Police and Fire Departments and those vehicles that regularly operate out of the city limits, shall be evaluated for reliability to see if they should be retained for local use and thereby minimize the acquisition of new vehicles. An example of this is a car removed from squad duty that is serviceable for non-emergency use and assigned to a building inspector. Assignment/reassignment of vehicles shall be determined by the City Administrator. 2 IV. PERSONAL USE OF CITY VEHICLES City vehicles are not available for take home use by City employees except for the following situations: A. Assigned Take-Home Vehicles City employees, whose position responsibilities require them to respond directly to a work related situation from their residence outside of normal work hours, will be allowed to use a City vehicle (Type A or B) to commute to/from their place of residence under the following conditions: 1. The employee must live in the City of Shakopee 2. The vehicle is not available for other than minimal personal use while performing their job duties and/or commuting to/from their place of residence. • 3. The Chief of Police may use an unmarked car. 4. Two officers of the Fire Department may use a light duty vehicle for commuting use including their regular place of employment if it is within 15 miles of the City of Shakopee. 5. Job performance specialty type vehicles (Type C) shall not be made available for personal use or commuting. 6. For scheduled leaves of absence by the designated employee exceeding 1 workday, the City vehicle shall be made available for pool use and remain at the employee's normal place of work. B. Occasional Take-Home Vehicles City employees may occasionally use a City vehicle (Type A or B) to travel to/from the employee's residence under the following conditions. 1. Police officers on duty may take cars home in the city at the discretion of the Police Chief. 2. If the City employee has scheduled City business away from their normal work station and the number of miles traveled, or time needed to conduct the business, will be minimized if the employee uses a City vehicle to commute to/from the employee's residence before/after traveling to the place of business. 3. The vehicle is not available for other than minimal personal use beyond commuting to/from the place of residence. V. CITY USE OF PERSONAL VEHICLES A. Mileage Reimbursement 1. All employees of the City will be paid mileage for use of their personal vehicles and reimbursed for all related legal parking costs while conducting official City business. The mileage rate will be the maximum reimbursement rate allowed by the IRS for non-taxable income. However, employees are encouraged to use available City vehicles whenever possible while conducting official City business. 2. Normal personal commuting mileage from home to work or work to home is not reimbursable. If an employee uses a personal vehicle to travel to a work responsibility on the way to or from work, 3 normal personal commuting mileage shall be deducted from the total trip mileage used to calculate the reimbursement. 3. Employees must have liability insurance coverage on their vehicle and may be required to furnish proof of insurance to the city. B. Monthly Allowance The City Administrator and the Public Works Director may receive a monthly allowance as set by the City Council. A monthly car allowance is subject to the following conditions: 1. The monthly allowance covers all business miles driven within the seven-county metropolitan area. Any travel outside this region in a personal vehicle will be reimbursed according to Section V.A. 2. City vehicles may be used: a. In an emergency work situation when the personal vehicle is not available, b. For work related off road driving when the personal vehicle would be subjected to conditions above normal wear and tear on a vehicle, c. In severe adverse weather conditions, d. Where the department head must travel by vehicle outside the seven-county metropolitan area 3. The employee has the option to decline the mileage allowance and claim reimbursement under V.A. above. C. Other Costs Employees are responsible for all costs related to personal vehicle ownership and operation. The City is responsible for all costs related to installation and maintenance of City equipment in the vehicles which is necessary in order for the employee to perform the position's functions. The City is also responsible for all costs related to the removal of such equipment and to the restoration of the vehicle caused by such removal. VI. VEHICLE IDENTIFICATION A. Color/City Logo All City vehicles shall be licensed and marked as appropriate for their specific use as follows: 1. All Administrative transportation vehicles (Type A) shall be of compact or intermediate size, and have the City's name prominently displayed on the side door panels. The City's official logo will be applied when it is beneficial to have it displayed to the public as determined by the Department Head. 2. All specialty type vehicles (Type B or C) shall have the City name prominently displayed on the door panel or other highly visible location. 3. Marked police squad/patrol vehicles shall be white and shall display the City name and vehicle number, and it shall contain lettering identifying it as a police/law enforcement/emergency vehicle. The color of unmarked police vehicles will be at the discretion of the Police Chief as necessary to minimize their detection as a law enforcement vehicle. 4 4. Fire Department vehicles shall be red with the City's name and vehicle number and shall contain lettering identifying it as a fire response emergency vehicle prominently displayed on the side door panels. 5. All other vehicles purchased new shall be manufacturers standard medium blue in color or if blue is not available as a standard color, white shall be used unless there is no color choice available. Vehicles shall not be repainted solely to change the color. VII. RESPONSIBILITY Departments with assigned vehicles are responsible for the maintenance and cleaning of such vehicles. Vehicles may be professionally cleaned once per year. The cost of cleaning a vehicle before it is disposed of or turned over to another department is the responsibility of the department that had prior use of the vehicle The City Administrator is responsible for the enforcement of this policy. City employees may not deviate from the policy unless they have written approval from the City Administrator. Revised 11/25/96 n:\budget\departm\veh icle3 5 Vehicle Categories Guideline Replacement Standards • Age or Miles/Hours Administrative 10 100,000 Sedan 10 100,000 Station Wagon 10 100,000 Compact Pickup 10 100,000 Vans 10 100,000 Squad car-squad duty 4 80,000 Specialty Light Duty Suburban 10 100,000 Pickup 1/2-3/4 ton 10 100,000 Utility 10 100,000 Medium Duty Utility Truck 10 100,000 4x4 pickup 10 100,000 truck- 1 to 1.5 ton 10 100,000 Skid steer loader 10 4,000 Fire grass rig 15 N/A Mowers -riding 10 Tractor. 15 Heavy duty Dump trucks 12 80,000 Front end loader 15 6,000 Road grader 15 6,000 Alley grader 15 6,000 Backhoe 20 6,000 Sweeper 10 5,000 Jetter 20 8,000 Tanker/flusher 20 8,000 Sewer Vac 20 N/A Pumper 20 N/A Aerial truck 20 N/A 6 VEHICLE EVALUATION FORM Public Works Department-Equipment Maintenance Section Unit# Serial# Department Year Make Model Vehicle Description Special Eqpt/Attachments Primary Use Current Mileage Hour s Last Year Miles Hour s Avg.Annual Miles Hour s Purchase Price (includes special equipment) Estimated Replacement Cost (includes special equipment) Estimated Average Life years/hours/miles ANALYSIS OF UNIT YEAR Annual Operating Costs Cumulative Operating Costs Annual CPM or CPH Life-To-Date CPM or CPH Average CPM or CPH for vehicle class % Downtime-Annually % Downtime-Cumulative %Downtime by Class Body, mechanics and/or chassis condition comments: Prepared by Reviewed by 7 CITY OF SHAKOPEE \\ , E ' Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: Judith S. Cox, City Clerk SUBJECT: 1997 Fee Schedule DATE: November 26, 1996 INTRODUCTION&BACKGROUND: Each year in December, the City Council adopts a fee resolution for the ensuing year. The fee resolution includes the fees for all licenses and permits issued within the City of Shakopee. Each year, at this time, department heads are asked to re-examine their fees and make appropriate recommendations for adjustments to the City Council. Both the Community Development Department and the Police Department are recommending no adjustments to the City's 1996 Fee Schedule for 1997. The City Clerk is recommending one change in fees only. It is recommended at the charge for a partial release of the developer's agreement be increased from$11.00 to $15.00. This fee is identical to the change being proposed by the Finance Director for assessment searches. The Public Works Department,Park&Recreation Department and Finance Department are recommending adjustments to their fees. Please see attached memos from the respective departments. ALTERNATIVES: 1. Adopt fee resolution as proposed. 2. Make adjustments to fee resolution. 3. Table for additional information. RECOMMENDED ACTION: Offer Resolution No. 4583,A Resolution Setting Fees for City Licenses, Permits, Services and Documents, and move its adoption. JSC/tiv- tami\Judy\4583 RESOLUTION NO. 4583 A RESOLUTION SETTING FEES FOR CITY LICENSES, PERMITS, SERVICES AND DOCUMENTS BE IT RESOLVED, by the City Council of the City of Shakopee, Minnesota, that the Fee Schedule dated January 1, 1997, attached hereto and made a part hereof is hereby approved and adopted in its entirety. BE IT FURTHER RESOLVED, that the Fee Schedule attached shall become effective on January 1, 1997, unless indicated otherwise therein, and Resolution No. 4365 and all other resolutions inconsistent herewith shall be repealed effective January 1, 1997 . Adopted in Regular Session of the City Council of the City of Shakopee, Minnesota, held this 3rd day of December , 1996 . Mayor of the City of Shakopee ATTEST: City Clerk CITY OF SHAKOPEE Memorandum TO: Judy Cox FROM: Gregg Voxland, Finance Director SUBJ: Fee Resolution DATE: November 19, 1996 The following changes are submitted for the fee resolution for 1997 . Sanitary Sewer charges - change monthly service charge from $8 . 00 to $7 . 50 . Change unmetered/new accounts from $16 . 10 to $15 . 60 per month. This is pursuant to Council discussion on 11/18/96 . - Pyle II, Storm Drainange charges - change City-wide fee from $18 . 18 per REF* acres to $20 . 00 per REF* acres/Qtr. This is pursuant to Council discussion on 11/18/96 . - ictq'r Assessment Searches - change from $11 . 00 to $15 . 00 . This fee has not changed for many years and private companies are charging $20 to $25 for a search. This would be consistent with the fee for release of developers agreements . - Pile I I• New fee - for for copies of complete assessment rolls $10 . 00 for up to 10 pages . Eleven pages and over are $2 . 00 per page . This would be consistent with police and fire report copies. -• P r9QPl I. Note : Has Bruce addressed increasing the trunk fee for sanitary and storm for construction cost index increases? CITY OF SHAKOPEE Memorandum TO: Judy Cox, City Clerk FROM: Bruce Loney,Public Works Director SUBJECT: 1997 Fee Schedule DATE: November 18, 1996 The Engineering and Public Works fees for the year 1997 should be adjusted as per the following paragraphs: ENGINEERING FEES NOTE: If no change is mentioned,the fee will be the same as in the 1996 Fee Schedule. Department Fees for Improvement Projects A. Private Developments-Change the wording as follows: The estimated construction costs for projects shall include, but not limited to the following: utility construction including sanitary sewer, storm sewer and watermain; street construction including site grading, erosion control, sidewalks, boulevard trees and other appurtenances. — ()In e. ►�, NOTE: Several developers have inquired on how the City can charge engineering fees on watermain when SPUC inspects the watermain. The answer is that the City Engineering staff has coordination with SPUC staff on projects, and the City is responsible for the trench backfill in order to build a street. This is how the fee was developed and approved by the Council previously. Also developers have issued a concern on a 7 1/2% fee on the site grading as compared to other Cities. The purpose for the 7 1/2% fee charged on the estimated costs of developments is to generate revenue for the City in order to process a private development. The fee is listed under Engineering as revenue to offset costs incurred by the City's Engineering, Community Development, Administration and Legal Departments. If Council desires to reduce the percentage charged to site grading, then staff would recommend an adjustment in the fee percentage charged to the other construction costs listed for inclusion. At this time, staff is recommending no change in the lump sum fee of 7 1/2% for private developments. B. City Projects-No Change C. Miscellaneous Engineering Work-No Change D. City of Shakopee's Standard Specifications $25.00/per copy Grading Permits - as per the recent adopted policy change by Council on which is 7.5%of the estimated cost to perform the grading. Storm Water Drainage Utility - No change but is an item for discussion at the November 18, 1996 Council Workshop. Trunk Storm Water Charges These charges are new and were adopted by Council on September 17, 1996. 1996 charge of$.07 per developable square foot. The term"net developable acre"means the total acreage of a development within the City limits minus portion of the development used for public right-of-way, lakes, wetland areas, storm water ponds and parks. Trunk Storm Water Storage and Treatment Charges: For any development that utilizes regional ponding systems, the storm water storage and treatment charge is as follows: $.04 per square foot for a development having three or less lots per acre; $.07 per square foot for a development having more than three lots per acre; and $.13 per square foot for a commercial, industrial, or institutional development. NOTE: Council added a clause to the resolution for Engineering to review the charges annually for adjustment. Since the charge has been in effect for only 3 months, staff would recommend no increase in the fee at this time. Permit to Work in Public Right-of-Way Fees same as last year: Permit to work in public right-of-way- first inspection $35.00 other multiple inspections - hourly rates Topographic Maps Hard Copy Map&Electronic File $12.00/Acre Plus$40.00/Hour Rate for Computer File Processing Computer/Plotter Generated Maps $60.00/Hour With a Minimum 15 Minute Charge PUBLIC WORKS Equipment Rental - These rates should be increased by a$1.00 per hour due to increased costs for equipment purchasing,maintenance, and operator's salaries and benefits. Sign replacement/installation-Increase rate to $110/sign Street sign installation in new subdivisions (per each sign pole) - Increase rate to $270.00 per each sign pole. Trunk Sanitary Sewer Charge 1996 charge of$1,319.74 per development acre. 1997 charge of$1,360.00 per development acre. If you have any questions on this memo,please feel free to contact me in my office. 0 ruce Loney Public Works Director CITY OF SHAKOPEE Memorandum To: Mayor and City Council Mark McNeill, City Administrator From: Mark J. McQuillan, Director of Parks and recreation Re: 1997 Activity Fees Date: October 18, 1996 INTRODUCTION Attached to this memo is the recommended 1997 Parks and Recreation Fee Schedule which was approved by the Parks and Recreation Advisory Board on September 23, 1997. BACKGROUND Historically, fees and charges are used to supplement other financial resources available to the parks and recreation department. Other resources include General Fund appropriations, gifts and donations, park dedication and grants. The authority to establish fees on an annual basis rest in the hands of the City Council. Staff develops a Recreation Fee Schudule for programs, facilities and events and submits it to the Parks and Recreation Advisory Board for their review. After reviewing the fee schule,the Advisory Board recommend it to the City Council for its approval. Attach to this memo is a complete listing of fees for parks and recreation programs and facilities. Specific changes are highlighted below. Recommended Fee Changes The following activities and programs are being recommended for change: • The Adviosry Board/staff recommend increasing the Recreation Activity Fee for seasonal youth programs by $2 from $13 to $15. No increases are to adult Recreation Activity Fee. In 1992,the Recreation Actvity Fee for adults was increased from $15 to $20 and, again, in 1995 from$20 to $22. Therefore,Advisory Board/staff advises against raising the Recreation Actvity Fee for adults next year. • The Swimming lesson fee has remained at$20 since 1992. The cost to provide instruction has gone up by 11% since then. Staff recommends increasing the fee from $20 to $25. • Picnic shelter rental fees for resident businesses be increased from $45 to $50, non- resident businesses from$55 to $75 and horseshoe kits from $4 to $5. • Increase ice rental rates for non-prime time from $55 to $65 per hour and prime time from $110 to $120 per hour effective July 1. 1997. The July 1 date will allow school districts and youth hockey associations time to prepare adjust their budgets for the increase. • Raise the daily admission for the Community Center for youths from$1 to $2 and adults from $2 to $3 effective September 1. 1997. Staff and the Advisory Board recommend no fee change for annual memberships at the Community Center. • The Advisory Board/staff recommend eliminating the hourly rental rate for the Community Youth Center building and revert back to using the daily rental rate again. The current hourly rate is $25 per hour. The Advisory Board/staff recommend charging $75 for entire the day. Groups that rent the youth building use it for reunions, baby showers and small receptions which are usually 4 to 5 hours long. The hourly rate rate discourages some groups or individuals from wanting to rent the facility. • The Advisory Board/staff recommend using a"graduating"rental fee schedule for the Community Center's gym,meeting rooms and gymnastics room. The current rate is $25 per hour. The recommendation is to charge$25 first hour, $20 for hours 2-5 and $10 for hours 6-10. This would not include the ice arena. • The demand for meeting room space at the Community Center by non-profit organizations has been, at times, overwhelming. The Advisory Board/staff recommend assessing a$15 per meeting charge for groups who wish to use these facilities more than 6 times in a given year. In other words, groups will be charged $15 per meeting after the sixth meeting. ALTERNATIVES 1. Adopt the 1997 Parks and Recreation Fee Schedule as presented. 2. Adopt the 1997 Parks and Recreation Fee Schedule with the changes made by the City Council. 3. Table action for additional information from staff. RECOMMENDATION Alternative# 1 ACTION REQUESTED Move to adopt the 1997 Parks and Recreation Fee Schedule a pre nted. r1 Mark J. McQuillan Director of Parks and Recreation A-mc RIM€NT PROPOSED 1997 PARKS AND RECREATION FEE SCHEDULE METHODOLOGY FOR SETTING FEES The Parks and Recreation Department uses a variety of methods and strategies for determining fees. For instance, participants of seasonal sports programs are charged a Recreation Activity Fee. Each participant is assessed a flat fee which is paid directly to the City to cover administrative costs. The Merit Services approach classifies activities into three categories: Low (fees covers only 50% of direct costs), Medium (breakeven or 100% of direct costs) and Partial Overhead Pricing (recovers all direct costs and a portion of administrative costs:110-150% of indiredt costs). In some cases, staff uses the Market Place approach (what others are charging). RECREATION ACTIVITY FEE The Recreation Activity Fee is intended to recover a portion of the administrative cost associated with providing recreation services. The fee is assessed mainly to seasonal activities such as youth and adult sports programs. The current fee for a seasonal youth sports program is $13 and $22 for adult sports programs. PROPOSED CHANGE: $15 Youth Youth Activities Football, Basketball, Ski Club, Baseball, Softball, Wrestling, Baseball and Softball. Adult Activities Adult teams have the option to pay the "Base Rate" (i.e $330 softball) or the individual activity fee which is $22 per player. The non-resident fee is also assessed to those teams with players from other comunities. Team Base Rate Adult Softball $330 Adult Basketball $180 Adult Volleyball $180 Church League Softball.. $ 20 Adult Baseball $300 Legion Baseball $300 Over 35 Baseball $300 NON-RESIDENT FEE The non-resident fee: Youth $11, Adult $21. The non-resident fee for Jackson Township residents is $21 for those 16 years of age or older. The township subsidizes the non-resident fee for partcipants 15 and under. The non-resident fee Louisville Township residents is $11 for youth and adults. The township subsidizes $10 (per activity) of the non-resident fee for its residents. Prior Lake residents who live in the Shakopee School District are charged a $5 non-resident fee. MERIT FEES Another method for determining fees is using the Merit Services approach. This involves the classification of activities into three categories: Low Fee, Medium Fee and Partial Overhead Pricing. Low Fee -A fee is set to recover 50% of the direct costs of an activity. i.e. playground, special events, open skating arts & crafts. Medium Fee -the objective is to recover 100% of the direct costs of an activity. The idea is to recover the costs of instructors and supplies. i.e. swimming lessons. Partial Overhead Pricing- is a method most commonly used in our programs. This is a method which establishes a price which covers all direct costs and a portion of the administrative costs or fixed costs. i.e. aerobic exercise classes, gymnastics, t-ball, KIDS, trips and tours etc. Low Fee Medium Fee Partial Overhead Pricing Playground events($1) Cheerleading($15-19) Golf LessonsAduitnouth($28/20) Special Events($2-3) Volleyballl($20) Day Camp($35) Shakopee Showcase Jr. Team Tennis($27) T-Ball/Nearball($25) Track& Field Meets($1) Dog/Puppy Obedience($35) KIDS/Tot-Time\(\$20/13) Teen Broomball($2) Trips(admission+transportation) Archery($21) 100/500 Mile Club($10) Gymnastics($4.50per hour) Tennis Lessons Adult/Youth($25) Fall Softball($250) Co-Rec Volleyball($60) Aerobics($2) Youth Camps($5) 3 on 3 Basketball League($25) PICNIC FACILITIES Shelter Rental: Residents $25 Shelter Rental: Resident Businesses $45 PROPOSED CHANGE: $50 Shelter Rental: Non-residents $45 Shelter Rental: Non-resident Businesses $55 PROPOSED CHANGE: $75 KITS Volleyball $5 Horeshoes $4 PROPOSED CHANGE: $5 MUNICIPAL SWIMMING POOL FEES Gate Fees (includes pool and waterslide for the day) Adults & Children (2 and over) $3.00 Seniors (60+) & Children under 2 FREE Season Tickets Family Pass: Resident./Jackson Township $50.00 Family Pass: Township (Dist. 720) $61.00 Family Pass: Non resident $72.00 Individual Pass: Resident/Jackson Township $33.00 Individual Pass: Township (Dist. 720) $44.00 Individual Pass: Non resident $ 54.00 Swimming Lessons Swimming Lessons Resident/Jackson Township. $20.00 PROPOSED CHANGE: $25 Swimming Lessons Township (Dist. 720) $ 31.00 PROPOSED CHANGE: $36 Swimming Lessons Non resident $30.00 PROPOSED CHANGE: $40 COMMUNITY YOUTH CENTER BUILDING RENTAL FEE Current Fee is $25 per hour. PROPOSED CHANGE: $75 per day. SHAKOPEE COMMUNITY CENTER Memberships: Membership does not include admission to paid events or recreation sponsored programs. This includes aerobics, skating lessons, gymnastics, High School games, or any Tournaments. Membership Card: Adult 19 & over $ 70 Youth 6-18 or Seniors 60+ $ 50 Family $110 Punch Card: (20 admissions) Adult 19 & over 35 Youth 6-18 or Seniors 60+ $ 17 Daily Admission EFFECTIVE SEPT. 1, 1997 Adult 19 & Over $ 2 PROPOSED CHANGE:$3 Youth 6-18 or Seniors 60+ $ 1 PROPOSED CHANGE:$2 Children 5 and under FREE WALKING TRACK FREE (users must be 14 or accompanied by an adult ) COMMUNITY CENTER RENTAL FEES SCHEDULE Meeting rooms(graduating scale)$25 first hour,$20 for hours 2-5 and$10 for hours 5-10 Gymnastics/Aerobics Studio(graduating scale))$25 first hour,$20 for hours 2-5 and$10 for hours 5-10 Multi-Meeting Room(graduating scale)$25 first hour,$20 for hours 2-5 and$10 for hours 5-10 Gymnasium(graduating scale)$25 first hour,$20 for hours 2-5 and$10 for hours 5-10 Ice Arena Non-Prime time$55-$110 per hour Prime time PROPOSED CHANGE: Effective July 1.1997:Non prime time$65-S120 per hour Prime time. Photo copying $.20 per page EQUIPMENT RENTALS(Daily Rates) VCR/Monitor $5 Coffee Maker $5 Wrestling Mats $50 Golf Cage $3.75 per 15 minutes. Locker rental $35 per year Adopted: Dec . 3 , 1996 Res . No. FEE SCHEDULE Shakopee, Minnesota January 1, 1997 Fees are listed by department and are to be updated annually. CITY CLERK/Misc. Business Licenses FEES Commercial/Industrial/Mortgage Revenue Bond Fees 1 . Application fee for Commercial/Industrial/ 1/10th of 1% of Mortgage Revenue Bonds amount issued with a $2, 600 min\$6, 300 max. 2 . Legal expenses as billed in addition to above 3 . Application fee for refinancing Commercial/ 1/20th of 1% of Industrial/Mortgage Revenue Bonds amount issued with a $1, 300 min\$3 , 150 max. 4 . Legal expenses for refinancing as billed in addition to above Tax Increment Financing Fees (Authorized by Res. 3221) Application fee for Tax Increment Financing $5, 200 . 00 Movies and Theaters (Authorized by City Code 6 .42) 1 . Annual fee for showing 16 mm films $ 26 . 00 2 . Annual fee for showing 35 mm films (or larger) $105 . 00 3 . Annual fee for conducting theatrical play(s) $ 26 . 00 Currency Exchange License Review State Law requires the City to review an application to the State for a currency exchange license. $30 . 00 Gambling/Bingo/Raffles Licensed through State Gambling Board, no City fees . 1 Minnesota Home Finance Agency Rental Rehab Grant Application Fees (Authorized by Res . #3181) 1-4 Units $150 . 00 5-8 Units 185 . 00 - 290 . 00 9-16 Units 325 . 00 - 570 . 00 17-24 Units 605 . 00 - 850 . 00 25 or more 885 . 00 plus $35 for each unit in excess of 25 License for the Sale of Beer. Liquor. Wine, Set-up License, Liquor License, Club License and Temporary Beer License (Authorized by City Code 5 . 06) 1 . Annual fee for On Sale Beer License $312 . 00 2 . Annual fee for Off Sale Beer License $100 . 00 3 . Temporary Beer License $ 15 . 00 4 . Annual fee for Set Up License $125 . 00 5 . Annual fee for On Sale Wine License 1/2 of On Sale Liquor or $2 , 000 whichever is less 6 . Annual fee for On Sale Club License $300 . 00 7 . Annual fee for Sunday Liquor License $200 . 00 8 . Annual fee for Off Sale Liquor License $150 . 00 9 . Application and Investigation fee for Off Sale Liquor License, On Sale Liquor License, or Wine License a) If investigation within Minn. $330 . 00 b) If investigation outside Minn. City expenses up to $10, 000 with $1, 100 deposit 10 . Annual fee for On Sale Liquor License : Customer Used Floor Area Under 1, 000 $3 , 705 . 00 1, 000 - 1, 999 $4, 390 . 00 2, 000 - 2, 999 $5, 080 . 00 3 , 000 - 3 , 999 $5, 765 . 00 4, 000 - 4, 999 $6, 445 . 00 5, 000 - 5, 999 $7, 140 . 00 6, 000 - 6, 999 $7, 820 . 00 7, 000 - 7, 999 $8, 510 . 00 8, 000 - 8, 999 $9, 195 . 00 9, 000 - 9, 999 $9, 875 . 00 Over 10, 000 $10, 570 . 00 2 Other Business Regulations and Licenses (City Code - Chapter 6 - all applicants require a $5 . 00 application fee) Peddlers (Authorized by City Code 6 .21) 1 . Weekly License Fee $30 . 00 2 . Annual License Fee $160 . 00 3 . Six Month License Fee $105 . 00 Taxicabs and Drivers (Authorized by City Code 6 .22) 1 . Annual fee $260 . 00 2 . Annual taxicab driver' s license fee $ 30 . 00 3 . Annual fee for each vehicle $ 15 . 50 Tabacco (Authorized by City Code 6 .23) 1 . Annual fee for Tobacco License $100 . 00 Show, Non-Transient Theme Parks, Amusement Parks, etc . (Authorized by City Code 6 . 24) 1 . Annual license fee equaling the number of rides x $45 . 00 $50 . 00/ride 2 . Show without rides $80 . 00 3 . Non-Transient Theme Parks As per agreement Outdoor Performance Center (Authorized by City Code 6 .42B) 1 . Annual license fee $520 . 00 Massage Center (Authorized by City Code 6 .40) 1 . Annual License Fee $315 . 00 2 . Initial license requires one time investigation fee $345 . 00 3 . Investigation fee for each new employee $ 55 . 00 Masseur and Masseuse License Fee (Authorized by City Code 6 .41) 1 . Annual registration fee $105 . 00 2 . Investigation fee $ 55 . 00 3 Pawnshops, Precious Metal Dealers, and Secondhand Dealers (authorized by City Code 6 . 28) 1 . Annual License Fee $315 . 00 2 . Initial license requires one time investigation fee $345 . 00 3 . Investigation fee for each new employee $ 55 . 00 Tattooing License (authorized by City Code 6 . 51) 1 . Annual License Fee $315 . 00 2 . Initial license requires one time investigation fee $345 . 00 3 . Investigation fee for each new employee $ 55 . 00 Rental of Pat Thielen Rodeo Arena (Authorized by Resolution No. 1910) Rental of arena for a period not to exceed seven consecutive days : a. Non-profit organizations within corporate limits of City of Shakopee $ . 00 b. Other non-profit organizations $208 . 00 or 150 of gross ticket sales whichever is greater c . Profit making organizations $208 . 00 or 15% of gross ticket sales whichever is greater Service Charge for Returned Checks Hereby set as follows : 1 . Service charge for each check returned $ 15 . 00 4 BUILDING INSPECTOR/ELECTRICAL INSPECTOR City of Shakopee electrical inspection fees shall be paid according to the schedule contained in the current State Board of Electricity - State of Minnesota - "Laws and Rules Regulating Licensing of Electricians and Inspection of Electricl Installations" . With the following exception: 1 . There will be no maximum fee on a single family dwelling. The fee for single family dwellings shall be calculated by service size and number of circuits according to the State Fee Schedule subpart 3 and subpart 4 . Plumbing Permits (Authorized by City Code 4 . 05) 1 . Alterations and Repairs - Minimum Fee $16 . 00 + $ . 50 State Surcharge Tax 2 . New Construction Residential - Minimum Fee $36 . 00 + $ . 50 State Surcharge Tax Commercial - Minimum Fee $60 . 00 + $ . 50 State Surcharge Tax 3 . Residential Plumbing Permit Fees All fixtures listed below will be figured at $6 . 00/each Water Closet Water Softener +$ . 50 State Lavatory (Basin) Bathtub Surcharge Tax Floor Drain Laundry Tub Sink Shower Stall Disposal Dishwasher Water Heater (Gas or Electric) Clothes Washer-Standpipe Permit fees for rough-ins for future bathrooms will be $5 . 00 per fixture . + $ . 50 State Surcharge Tax 4 . Residential - Replacements Only Water Heater - Gas $16 . 00 +$ . 50 State Surcharge Fee Water Softeners - New or replacement in other than homes under construction (installer must be licensed by the State Board of Health $16 . 00 + $ . 50 State Surcharge Fee 5 5 . Commercial Plumbing Permit Fees Water Closet, Lavatory (Basin) , Urinal, Individual Shower $ 7 . 00 Shower - Gang Type - Per Head 5 . 20 Drinking Fountain 7 . 00 Dental Unit 13 . 00 Sink - Service or Mop 7 . 00 Flat rim, bar, counter, laboratory 9 . 50 Pot or Skullery 9 . 50 Clothes Washer - First five units or less 19 . 00 Each additional unit 4 . 00 Floor Drain - 2 inch 7 . 00 3 and 4 inch 8 . 50 Catch Basin 9 . 50 Sewage Ejector 13 . 00 Sumps and Receiving Tanks 13 . 00 Water Softeners 19 . 00 Water Heater - Gas - Replacement Only 25 . 00 Commercial plumbing permits to be figured by the above fixture schedule but at the same time the permit is to be issued, the permitee will certify the contract price and the fee will be based on the above method or 1 .270 of the contract price, whichever is greater. 6 . Sewer and Water Connection Sewer Connection $ 20 . 00 +$ . 50 State Surcharge Fee Water Connection $20 . 00 +$ . 50 State Surcharge Fee Combination Sewer & Water Connection $30 . 00 +$ . 50 State Surcharge Fee 6 Building Permit Fees (Authorized by City Code 4 . 05) Building Value Fees $1 . 00 to 500 . 00 $21 . 00 501 . 00 to 2, 000 . 00 $21 . 00 for the first 500 . 00 plus 2 . 75 for each additional 100 . 00 or fraction thereof, including 2, 000 . 00 2, 001 . 00 to 25, 000 . 00 $62 .25 for the first 2, 000 . 00 plus 12 . 50 for each additional 1, 000 . 00 or fraction thereof, to and including 25, 000 . 00 25, 001 . 00 to 50, 000 . 00 $349 . 75 for the first 25, 000 . 00 plus 9 . 00 for each additional 1, 000 . 00 or fraction thereof, to and including 50, 000 . 00 50, 001 . 00 to 100, 000 . 00 $574 . 75 for the first 50, 000 . 00 plus $6 .25 for each additional 1, 000 . 00 or fraction thereof, to and including 100, 000 . 00 100, 001 . 00 to 500, 000 . 00 $887 .25 for the first 100, 000 . 00 plus 5 . 00 for each additional 1, 000 . 00 or fraction thereof, to and including 500, 000 . 00 500, 001 . 00 to 1, 000, 000 . 00 $2, 887 .25 for the first 500, 000 . 00 plus 4 . 25 for each additional 1, 000 . 00 or fraction thereof, to and including 1, 000, 000 . 00 1, 000, 001 . 00 and up $5, 012 .25 for the first 1, 000, 000 . 00 plus 2 . 75 for each additional 1, 000 . 00 or fraction thereof 7 Other Inspections Inspections outside of normal business hours (minimum charge - two hours) $42 . 00/hr. Reinspection fees assessed under provisions of Section 108 . 8 of the Uniform Building Code $42 . 00/hr. Inspections for which no fee is specifically indicated (minimum charge - one-half hour) $42 . 00/hr. Additional plan review required by changes, additions or revisions to approved plans (minimum charge - one-half hour) $42 . 00/hr. Plan Review Fee : 65% of building permit fee under provisions of Section 107 of the Unform Building Code . State Surcharge : Building Permits (These fees forwarded to the State Treasurer) Less than $1, 000 $ . 50 $1, 000, 000 or less . 0005 x valuation $1, 000, 000 to $2 , 000, 000 $ 500 + . 0004 x (Value - $1, 000, 000) $2 , 000, 000 to $3 , 000, 000 $ 900 + . 0003 x (Value - $2 , 000, 000) $3 , 000, 000 to $4, 000, 000 $1200 + . 0002 x (Value - $3 , 000, 000) $4 , 000, 000 to $5, 000, 000 $1400 + . 0001 x (Value - $4 , 000, 000) Greater than $5, 000, 000 $1500 + . 00005 x (Value - $5, 000, 000) State Surcharge : Plumbing, Heating and Electrical Permits Permit fee less than $1, 000 $ . 50 Permit fee more than $1, 000 Fee x . 0005 Certificate of Occupancy (Authorized by Res . No. 2604) Commercial/Industrial - . 005 times the value of the project, or $500 . 00, whichever is greater Residential - . 005 times the value of the project with a $500 . 00 maximum 8 90% of the fee shall be refunded when a final certificate of occupancy is issued. Fast Tracking Issuance of Building Permits (Authorized by Res . #2604) Fast tracking building permit process - City expenses up to 100% of building permit fee with a 30% deposit Moving Permit $50 . 00 Fire Protection Equipment hereby set as follows : Sprinkler Systems shall be computed at $15 . 00 for the first 10 heads and $4 . 50 for each additional 10 heads or part thereof, and $25 . 00 per hour fee for plan check plus State Surcharge . Repair and miscellaneous work shall be computed at 1 . 27% of the contract price plus State Surcharge . Individual On Site Sewer Permits hereby set as follows : Residential : $50 . 00 Commercial : 1 . 27% of Contract Amount Heating, Air Conditioning, Refrigeration, and Ventilation Permits hereby set as follows : Minimum Fee $16 . 00 + $ . 50 State Surcharge Single Family Residence $40 . 00 + $ . 50 State Surcharge Central Air Conditioning (at the time $ 6 . 00 of new construction) + $ . 50 State Surcharge Commercial fee shall be computed at 1 .27% of the contract plus State Surcharge . Tank & Piping Permits hereby set as follows : Underground fuel storage tanks and piping permit fee to be 1 . 27% of contract plus State Surcharge. 9 Lawn Sprinkler Systems - Residential $30 . 00 Lawn Sprinkler Systems - Commercial (This fee includes water connection from building piping to yard side of siphon breaker) $30 . 00 Gas Piping Permits hereby set as follows : Minimum Fee $16 . 00 + $ . 50 State Surcharge Residential - Each fixture or applicance $ 5 . 00 + $ . 50 State Surcharge Alterations and Repairs - Minimum Fee Commercial fee shall be computed at 1 . 27% of the contract plus State Surcharge . Where the gas piping is divided between two contractors such as the Heating Contractor installing the gas line to the furnace and the Plumbing Contractor doing the balance of the gas piping, each contractor shall take out a permit . Appeal Fees Appeal to Building Code Board of Adjustment & Appeals $90 . 00 Appeal to Housing Advisory and Appeals Board $90 . 00 Appeal to City Council $90 . 00 Sanitary Sewer Service Availability Charge (SAC) Units for Various Residential, Commercial, Public, and Institutional Facilities will be applied as specified in the Metropolitan Council SAC Procedure Manual, latest edition. Metro SAC Charge (these funds are forwarded to the Metropolitan Council) $950 $ 900/Unit City SAC Charge per Resolution No. 4165 S 400/Unit TOTAL $1250/Unit Water Availability Charge (WAC) (These fees forwarded to SPUC) Fees are set by Shakopee Public Utilities resolution. 10 ADMINISTRATION/FINANCE - hereby set as follows: Office Charges hereby set as follows : 1 . Assessment Searches 515 . 00 $11 . 00 2 . Partial Release of Developers Agreement $15 . 00 $11 . 00 3 . Copy fee General Public $ . 20 Other governmental/non-profit public service $ . 07 4 . Complete Assessment Rolls 510 . 00 up to 10 pgs . 11 or more 52 . 00/each Sewer Service Charges (Authorized by City Code 3 . 02) 1 . Monthly service charge 57 . 50 $ 8 . 00 2 . For every 1, 000 gallons or part thereof of metered flow or water usage $1 . 62 3 . Charge for unmetered residential water accounts or new accounts 515 . 60 $1G . 10/month POLICE/FIRE Report Copies hereby set as follows : 1 . Up to 10 pages $10 . 00 2 . 11 and over pages $ 2 . 00/ea. 3 . Taped Statements (audio) $15 . 00 4 . Taped Statements (video) $35 . 00 5 . State Accident Reports $ 5 . 00 6 . Drivers License Printout $ 5 . 00 7 . Computer Researched Reports $35 . 00 1st hour (does not include duplication costs) $20 . 00 for every hour thereafter 8 . Police Reports from City Attorney $10 . 00 9 . Permit to carry handgun in public-background check $10 . 00 Towing and Impounding of Vehicles hereby set as follows : Towing and impounding is done by a private contractor having appropriate impounding facilities. Fees are set by contractor. 11 Dog Licenses, Impounding Fees, etc . (Authorized by City Code 10 . 21) 1 . Dog Licenses (good for the life of the dog) $10 . 00 2 . Duplicate license $ 2 . 00 3 . First impoundment $20 . 00 4 . Second impoundment $50 . 00 5 . Third and successive impoundment within a 12-month period $100 . 00 6 . Amount charged per day when confined to the Pound $10 . 00 7 . In the case of an unlicensed dog or a dog for whom proof of a current rabies vaccination cannot be shown, there shall be an additional penalty of $10 . 00 . (Owner is responsible to furnish proof of license and/or rabies vaccination) . 8 . Large animal impoundment $35 . 00 9 . Large animal board per day $15 . 00 Large animals are defined as animals other than household pets ie; horses, cows, sheep. PUBLIC WORKS Equipment Rental hereby set as follows : (Minimum Rental Time 1 Hour. All drivable equipment rates include operator) Caterpiller Grader (private) 592 . 50 $91 . 50/hour (State snow removal) 579 . 00 $78 . 00/hour Front end loader (Fiat-Allis) private S95 . 00 $94 . 00/hour (State snow removal 2-1/2 yd. w/Q blower) 579 . 00$78 . 00/hour Front end loader (Case) private 595 . 00$94 . 00/hour (State snow removal 2-1/2 yd. w/e blower) S82 . 50 $81 . 50/hour Elgin street sweeper $86 . 00 $85 . 00/hour Elgin sweeper (State contract-twice/yr) 562 . 00 $61 . 00/hour Roscue Side Broom 547 . 00 $46 . 00/hour 12 2-1/2 ton dump truck (single) 558 . 00 $57 . 00/hour 2-1/2 ton dump truck w/plow 575 . 00 $74 . 00/hour 5 ton dump truck (tandem) 575 . 00 $74 . 00/hour 3/4 ton pickups (w/plow add 10 . 00) 547 . 00 $4G . 00/hour 5 ton tandem truck 2 w/plow 581 . 00 $80 . 00/hour Water tanker/flusher 552 . 00 $51 . 00/hour Trash compactor 540 . 50 $39 . 50/hour Mower tractor (turf type) Contract Rates Weed Mowing (rough) Contract Rates Asphalt roller (1-1/2 ton) 524 . 00 $23 . 00/hour Pull paver 530 . 00 $29 . 00/hour Steamer (w/tender) 575 . 00 $74 . 00/hour Bobcat 558 . 00 $57 . 00/hour Raygo alley grader $41 . 50 $40 . 50/hour Wood Chipper 547 . 00 $46 . 00/hour Post hole digger (tractor mounted) 547 . 00 $4G . 00/hour (w/o tractor) 524 . 00 $23 . 00/hour Power auger (hand held) 519 . 00 $18 . 00/hour Sign replacement/installation 5110 . 00 $105 . 00/sign (w/o post less $10 . 00) Street sign installation in new subdivisions (per each sign pole) 5270 . 00 $2G0 . 00 Sewer rodder 553 . 00 $52 . 00/hour Video sewers (w/cassette add $20 . 00/each) 5106 . 00$105 . 00/hour Sewer jet cleaning 5106 . 00$105 . 00/hour 13 Vacuum Inductor $79 . 00 $78 . 00/hour Barricades w/flashers $10 . 00/barricade/day Barricades w/o flashers $8 . 00/barricade/day Cones $2 . 00/cone/day Butuminous Street Repair $2 . 50/sq. ft . Asphalt or Cold Mix $35 . 00/ton Refuse/Recycling Collection Rates (Authorized by City Code 3 . 02) 1 . Urban Residence 30 gallon $13 . 05 60 gallon $13 . 91 Extra Service Coupon $ 2 . 50 Extra 60 gallon container $13 . 66 2 . Rural Residence 30 gallon $16 . 03 60 gallon $18 . 72 90 gallon $20 . 33 Extra Service Coupon $ 2 . 50 * All rates include City billing, admin. and sales tax. 3 . Refuse/Recycling Collection License $105 . 00 yr PLANNING - hereby set as follows: I . INFORMATION/DOCUMENT FEES A. Long Range Planning Documents 1 . Comprehensive Plan $50 . 00 2 . 1995-1999 Capital Improvement Program $20 . 00 14 B. City Codes 1 . Chapter 11 Zoning Ordinance $25 . 00 2 . Chapter 12 Subdivision Regulations $10 . 00 3 . City Code $50 . 00 C. Agenda/Minutes (Annual) 1 . City Council Agenda $15 . 00 2 . Planning Commission Agenda $15 . 00 3 . City Council Minutes $35 . 00 4 . Planning Commission Minutes $35 . 00 D. Maps 1 . City Map (small) $ 1 . 00 2 . City Map (large) $ 3 . 00 3 . Zoning (22"x34") $ 3 . 00 4 . Any Printed Maps (blueprint) 50/sq. ft . E. Services 1 . Zoning Verification Letter $25 . 00 F. Recording Fees 1 . Document recording fees with County $1 . 00/page $15 . 00/min + $ 4 . 50 Surcharge G. Sign Permit Fees (Authorized by City Code 4 . 30) Permanent $30 + $ . 50/sq. ft Temporary $25 . 00 II . LAND DIVISION ADMINISTRATION FEES A. Major Subdivisions 1 . Preliminary Plat $330 + $6/lot or $200 + $4/acre, whichever is greater 2 . Preliminary & Final Plat Concurrently Preliminary fee plus final fee 15 3 . Final Plat $150 . 00 4 . Title Review Fee $100 . 00 B. Minor Subdivisions 1 . Lot Division/Lot Reassembly $100 . 00 2 . Registered Land Surveys $100 . 00 C. Vacations 1 . Vacations of Public Easements $100 . 00 2 . Vacations of Rights-of-Way $200 . 00 D. Park Dedication Fees Refer to Section 12 . 07, Subd. 5 of the Shakopee City Code E. Wetlands 1 . Certificate of Exemption review process . $ 75 . 00 III . LAND USE ADMINISTRATION FEES A. Application for Appeal of City Administration Decision 1 . Appeal to Board of Adjustment and Appeals $100 . 00 2 . Appeal to City Council $100 . 00 B. Application for Variances 1 . Single Family Residential $ 85 . 00 2 . All others $150 . 00 3 . Appeal to City Council $ 85 . 00 C. Application for Conditional Use Permit 1 . Home Occupations $100 . 00 2 . Home Occupation Renewals and Amendments $100 . 00 3 . All Other Conditional Use Permits $200 . 00 4 . All Other Renewals and Amendments $200 . 00 5 . Appeal to City Council $100 . 00 6 . Mineral Extraction & Land Rehabilitation Permit $200 . 00 + $2 , 500 cash deposit * +all administrative costs ** + all consultant fees *** 16 D. Application for Planned Unit Development 1 . Planned Unit Development $700 . 00 +$35 . 00/acre + $1, 000 cash deposit * +all administrative costs ** + all consultant fees *** 2 . Amendment to Planned Unit Development $300 . 00 + $1, 000 cash deposit * +all administrative costs ** + all consultant fees *** C. Application for Environmental Review 1 . Discretionary Environmental Assessment Worksheet No fee 2 . Required Environmental Assessment Worksheet $1, 000 . 00 3 . Required Environmental Impact Statement $4, 000 . 00 D. Zoning Ordinance Amendments 1 . Map Amendments Less than 2 . 5 acres $250 . 00 Greater than 2 . 5 acres $500 . 00 2 . Text Amendments $500 . 00 E. Additional Notices - Applies to all types of applications 1 . Rezoning Applications : Per Published Notice, in excess one published notices for each of two hearings $ 25 . 00 Per Mailed Notice, in excess of 100 notices for each of two hearings $ 1 . 50 2 . All Other Applications Per Published Notice, in excess one published notice for one hearing $ 25 . 00 Per Mailed Notice, in excess of 100 notices for one hearing $ 1 . 50 17 NOTES FOR THE PLANNING DEPARTMENT FEE SCHEDULE * Cash Deposits - Actions requiring cash deposits must be paid at the time of the application submittal . Cash deposits are held by the City to ensure adequate payment . A bill for the appropriate costs will be sent to the applicant and if not paid will be obtained from the cash deposit . The City Administrator has the right to amend the cash deposit requirements . Deposits will be place in escrow. ** Administrative Costs - Actions requiring payment for administrative costs may be billed to the applicant . Administrative costs may include but are not limited to the following: staff time, publishing costs, copying, printing and mailing. Department Fees Planning Director $55 . 00/Hour Planner I $35 . 00/Hour Planning Secretary $25 . 00/Hour Planning Technician $30 . 00/Hour *** Consultant Fees - Consultants may be required by the City to review development proposals including but not limited to traffic and water management issues. Consultant fees will be based upon a prior written proposal and agreement . Fees will be placed in escrow. ENGINEERING - hereby set as follows: Engineering Fees Department fees for Improvement Projects A. Private Developments The estimated construction costs for projects shall include, but are not limited to the following:utility construction including sanitary sewer, storm sewer and watermain; street construction including site grading and erosion control, sidewalks, boulevard trees and other appurtenances . 18 A lump sum of 7 1/2% of the estimated construction costs for the project using the following breakdown: Administrative fee - 1% Plan Review fee - 2% Inspection fee - 4 1/2% Total - 7 1/2% Any direct costs incurred, such as material testing, are not included and will be billed back directly to the developer. SPUC inspection services are not included in this fee . B. City Projects The actual hourly rates of the employees will be used plus a multiplier of 2 . 9 for benefits, overhead, etc . A 1% project administration fee will be charged to all projects. Other costs incurred will be added in using the actual costs (i .e. consultants fees, testing laboratories, etc. ) C. Miscellaneous Engineering Work same as the City projects . D. City of Shakopee' s Standard Specifications %25 . 00/per copy Grading Permits - Grading permit fees shall equal 7 . 5% of the estimated cost to perform the grading. Wetland Conservation Act Administration 1 . Certificate of Exemption $75 . 00 2 . Replacement Plan $75 . 00 plus hourly Storm Water Drainage Utility City-wide Fee 520 . 00 $18 . 18 per REF* acre/Qtr. *Residential equivalent factor Administrative Fee for Delinquent Accounts Certification $10 . 00 Flood Plain Verification $10 . 00 19 Trunk Storm Water Charges Charge of 8 . 07 per developable square foot . The term "net developable acre" means the total acreage of a development within the city limits minus portion of the development used for public right- of-way, lakes, wetland areas, storm water ponds and parks . Trunk Storm Water Storage and Treatment Charges : For any development that utilizes regional ponding systems, the storm water storage and treatment charge is as follows : S . 04 per sq. foot for a development having 3 or less lots per acre; 5 . 07 per sq. foot for a development haivng more than 3 lots per acre; S . 13 per sq. foot for a commercial , industrial, or institutional dev. Trunk Sanitary Sewer Charge 1996 Trunk Sanitary Sewer Charge - $1, 319 . 74 per development acre. 1997 Trunk Sanitary Sewer Charge - $1, 360 per development acre. Permit to Work in Public Right-of-Way fees set as follows : Permit to work in public right-of-way - first inspection $35 . 00 other multiple inspections - hourly rates When work in public right-of-way requires the submittal of plans and specifications, review of the plans shall be charged in accordance with the hourly fees approved for the Engineering Dept . Lot Corner Field Search (w/metal detector only) $25 . 00 (non-refundable, no guarantees) This is not a legal survey or any verification that lot corners found are in the correct location, but simply an attempt to locate any existing lot corners that are in the ground. Topographic Maps Hard Copy Map & Electronic File 512 . 00/Acre Plus 540 . 00/Hour Rate for Computer File Processing Computer/Plotter Generated Maps X60 . 00/Hour with a Minimum 15 Minute Charge 20 PARKS AND RECREATION - hereby set as follows: METHODOLOGY FOR SETTING FEES The Parks and Recreation Department uses a variety of methods and strategies for determining fees. For instance, participants of seasonal sports programs are charged a Recreation Activity Fee. Each participant is assessed a flat fee which is paid directly to the City to cover administrative costs. The Merit Services approach classifies activities into three categories: Low (fees covers only 50% of direct costs), Medium (breakeven or 100% of direct costs) and Partial Overhead Pricing (recovers all direct costs and a portion of administrative costs:110-150% of indiredt costs). In some cases, staff uses the Market Place approach (what others are charging). RECREATION ACTIVITY FEE The Recreation Activity Fee is intended to recover a portion of the administrative cost associated with providing recreation services. The fee is assessed mainly to seasonal activities such as youth and adult sports programs. The current fee for a seasonal youth sports program is $15 $43 and $22 for adult sports programs. Youth Activities Football, Basketball, Ski Club, Baseball, Softball, Wrestling, Baseball and Softball. Adult Activities Adult teams have the option to pay the "Base Rate" (i.e $330 softball) or the individual activity fee which is $22 per player. The non-resident fee is also assessed to those teams with players from other comunities. Team Base Rate Adult Softball $330 Adult Basketball $180 Adult Volleyball $180 Church League Softball.. $ 20 Adult Baseball $300 Legion Baseball $300 Over 35 Baseball $300 NON-RESIDENT FEE The non-resident fee: Youth $11, Adult $21. The non-resident fee for Jackson Township residents is $21 for those 16 years of age or older. The township subsidizes the non-resident fee for partcipants 15 and under. The non-resident fee Louisville Township residents is $11 for youth and adults. The township subsidizes $10 (per activity) of the non-resident fee for its residents. Prior Lake residents who live in the Shakopee School District are charged a $5 non-resident fee. MERIT FEES Another method for determining fees is using the Merit Services approach. This involves the classification of activities into three categories: Low Fee, Medium Fee and Partial Overhead Pricing. Low Fee -A fee is set to recover 50% of the direct costs of an activity. i.e. playground, special events, open skating arts & crafts. Medium Fee -the objective is to recover 100% of the direct costs of an activity. The idea is to recover the costs of instructors and supplies. i.e. swimming lessons. 21 Partial Overhead Pricing- is a method most commonly used in our programs. This is a method which establishes a price which covers all direct costs and a portion of the administrative costs or fixed costs. i.e. aerobic exercise classes, gymnastics, t-ball, KIDS, trips and tours etc. Low Fee Medium Fee Partial Overhead Pricing Playground events($1) Cheerleading($15-19) Golf LessonsAduitnrouth($28/20) Special Events($2-3) Volleyballl($20) Day Camp($35) Shakopee Showcase Jr. Team Tennis($27) T-Ball/Nearball($25) Track& Field Meets($1) Dog/Puppy Obedience($35) KIDS/Tot-Time\(\$20/13) Teen Broomball($2) Trips(admission+transportation) Archery($21) 100/500 Mile Club($10) Gymnastics($4.50per hour) Tennis Lessons Aduitnrouth($25) Fall Softball($250) Co-Rec Volleyball($60) Aerobics($2) Youth Camps($5) 3 on 3 Basketball League($25) PICNIC FACILITIES Shelter Rental: Residents $25 Shelter Rental: Resident Businesses $45$50 Shelter Rental: Non-residents $45 Shelter Rental: Non-resident Businesses $55$75. KITS Volleyball $5 Horeshoes $4 S5 MUNICIPAL SWIMMING POOL FEES Gate Fees (includes pool and waterslide for the day) Adults & Children (2 and over) $3.00 Seniors (60+) & Children under 2 FREE Season Tickets Family Pass: Resident./Jackson Township $50.00 Family Pass: Township (Dist. 720) $61.00 Family Pass: Non resident $72.00 Individual Pass: Resident/Jackson Township $33.00 Individual Pass: Township (Dist. 720) $44.00 Individual Pass: Non resident $ 54.00 Swimming Lessons Swimming Lessons Resident/Jackson Township. $ 25.00 Swimming Lessons Township (Dist. 720) $ 36.00 Swimming Lessons Non resident $46.00 SHAKOPEE COMMUNITY CENTER Memberships: Membership does not include admission to paid events or recreation sponsored programs. This includes aerobics, skating lessons, gymnastics, High School games, or any Tournaments. 22 Membership Card: Adult 19 & over $ 70 Youth 6-18 or Seniors 60+ $ 50 Family $110 Punch Card: (20 admissions) Adult 19 & over $ 35 Youth 6-18 or Seniors 60+ $ 17 Daily Admission Effective Sept. 1. 1997 Adult 19 & Over $ 2 $3.00 Youth 6-18 or Seniors 60+ $ 1 $2.00 Children 5 and under FREE WALKING TRACK FREE (users must be 14 or accompanied by an adult ) COMMUNITY CENTER RENTAL FEES SCHEDULE Meeting rooms(graduating scale)$25 first hour,$20 for hours 2-5 and$10 for hours 5-10 Gymnastics/Aerobics Studio(graduating scale))$25 first hour,$20 for hours 2-5 and$10 for hours 5-10 Multi-Meeting Room(graduating scale)$25 first hour,$20 for hours 2-5 and$10 for hours 5-10 Gymnasium(graduating scale)$25 first hour,$20 for hours 2-5 and$10 for hours 5-10 Ice Arena $55-$120 per hour Photo copying $.20 per page EQUIPMENT RENTALS(Daily Rates) VCR/Monitor $5 Coffee Maker $5 Wrestling Mats $50 Golf Cage $3.75 per 15 minutes. Locker rental $35 per year OUTDOOR ATHLETIC FIELD RENTAL FEE SCHEDULE These rates are applied to events held on City property and school property maintained by the City. Ball field(one day): $20 per field Ball field(two days): $30 per field Ball field(three days): $40 per field Concession stand: $50 per day,plus a$50 cleaning/damage deposit Ball fields w/lights: $25 per night,per field OTHER - hereby set as follows : 1 . Application fee for variance from or amendment to the cable franchise ordinance 25 . 00 PLUS Costs of consultants hired to assist the City in considering variance applications will be billed to applicant based on actual cost to the City. Notification will be sent to applicant that consultants will be utilized when that determina- tion has been made. 23 mow 1l. S' CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: 1997 Budget DATE: November 26, 1996 Pursuant to previous Council actions and discussions with Councilor Sweeney, the following changes are being made in the 1997 budget . The public hearing on the tax levy and budget is December 4th. Actual adoption of the resolution is set for December 17th. Changes from what was previously presented to council; Move balance of secretary funding from Legal to Clerk division. Move $17, 000 from Admin to Engineering. Admin bought copier in 1996 so it is not needed in 1997 budget . Engineering' s transportation plan costs will not be completed in 1996 as budgeted and therefore will partially hit the 97 budget . Reduce tax levy $20, 000 in order to eliminate a tax increase on a house valued at $72 , 000 EMV for pay 1996 taxes . Budget difference would come out of fund balance (General Fund) generated by higher than anticipated 1996 building permit revenues . If Council agrees with these changes, no action is needed on this memo. d4j) Vox and Fina ce Director n:\budget\memo1126 CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill., City Administrator SUBJECT: Resignation- Cable Communications Advisory Commission DATE: November 27, 1996 INTRODUCTION: The Council is asked to accept the resignation of Bill Anderson from the Shakopee Cable Communications Advisory Commission. BACKGROUND: The attached letter from Bill Anderson serves as notice of his resignation from the Commission. He currently serves as Chair, and has been on the Commission for nearly 14 years. His experience will be missed. I spoke with Bill, and asked him to consider staying on through the February meeting, as the current filling of commission vacancies anticipates advertising in January, appointments in February, with new members to take office in March. He is agreeable to staying on through March 1st. RECOMMENDATION: We recommend that Bill Anderson's request for resignation be accepted, effective March 1, 1997. ACTION REQUIRED: If the Council concurs, it should,by motion, accept the resignation from Bill Anderson, with regret, from the Shakopee Cable Communications A.dvisory Commmission., to be effective March 1, 1997. rAAA.IALIA- Mark McNeill City Administrator MM:tw November 25, 1996 Mr. Mark McNeill City Administrator City of Shakopee 129 Holmes Street South Shakopee, MN 55379 Dear Mr. McNeil: I am notifying you that I am resigning my position on the Shakopee Cable Communications Advisory Commission, and the Shakopee Community Access Corporation Board of Directors. In order to make for an orderly transition to fill my vacancy, I will serve on these boards until January 31, 1997. I have served continuously on the Commission since February of 1983, on the Energy and Transportation Commission in 1982-83, and was a member of the Shakopee Volunteer Fire Department from 1970 through 1981. My volunteer service for Shakopee goes back 26 years, and it is now time to move on. I am proud of the video production facilities that our Commission put in place in City Hall, and now in the Shakopee Recreation Facility. New volunteers on the Commission can bring new ideas and vitality to community television programming. I am proud to have served the City for so long. Sincerely, Bill Anderson Chairman, Shakopee Cable Communications Advisory Commission cc: Don McNeil, Chair, Community Access Corporation CITY OF SHAKOPEE Memorandum MEMO TO: Mayor and City Council Mark McNeill, City Administrator FROM: Judith S. Cox, City Clerk RE: Boards and Commissions Expiring Terms DATE: November 27, 1996 INTRODUCTION: According to City Council policy, it is appropriate that Council consider at this time the reappointment of individuals whose terms on boards and commissions are expiring. BACKGROUND: According to the policy, ninety days prior to the expiration of terms each year, the Council shall be advised of the upcoming vacancies and the attendance record of the individuals whose terms are expiring, should those individuals be eligible for reappointment. At that time the Council shall consider the reappointment of those individuals. Should the Council determine that the individuals merit reappointment, they will be contacted to determine if they wish to seek reappointment. Council shall also announce the upcoming vacancies and that applications will be accepted from all interested citizens of Shakopee. Application Deadline: Since adoption of the current policy, there has been confusion on the exact date that applications will no longer be considered. Sometimes there have been insufficient applications received and Council has made nominations as late as the same evening of appointment. In 1990, Council set the final date to receive applications as the date that nominations are made. Unless Council directs otherwise, applications will be accepted until the first meeting in February. The advertisement will encourage applications to be submitted by January 29th so that Council can receive copies with their agenda packet for the February 4th meeting. (If insufficient applications are received, applications will continue to be accepted until qualified individuals are appointed. ) Eligible Appointees: Attached is a list of the individuals whose terms are expiring and who are eligible for reappointment. (Those individuals who have not served more than three terms will be invited to apply for re-appointment, per the guidelines for appointments. ) Boards and Commissions Page -2- Summary: Staff will follow up on advertising, posting, and mailing notices on accepting applications for filling the expiring terms on city boards and commissions. A letter will be sent to each member whose term is expiring February 28, 1996 inviting them to consider reappointment, unless Council advises otherwise, (excluding those individuals who have served three terms, per the guidelines for appointments. ) RECOMMENDED ACTION: 1. Announce the upcoming vacancies and that applications will be accepted from all interested citizens of Shakopee. 2. Would Councilmembers provide staff with the names of individuals they wish to be invited to apply for an opening, please? We would be happy to send a letter to anyone whom a Councilmember feels may be a good candidate. Or, in the alternative, talk to them and encourage them to think about the openings and call city hall for an application. Ju h S. Co , Cit; Clerk BD&COMM.96 CITY OF SHAKOPEE BOARDS AND COMMISSIONS TERMS EXPIRING FEBRUARY 28, 1997 Planning Commission: Gayl Madigan Park And Recreation Advisory Board: Paulette Rislund Ann Seifert Board of Review: Eldon Reinke Building Code Board of Adjustments and Appeals: Housing Advisory & Appeals Board: Gene Juergens Shakopee Public Utilities Commission: Currently vacant Police Civil Service Commission: Stan Von Bokern Cable Communications Advisory Commission: Larry Moonen Plus unexpired term ending 1999 Shakopee Community Access Corporation Board of Directors: Larry Moonen Robert Ziegler Plus unexpired term ending 1999 Economic Development Authority No terms expire in 1997 CITY OF SHAKOPEE 1). E' Memorandum TO: Mayor and City Council. FROM: Mark McNeill, City Administrator SUBJECT: City Council/Department Head Team Building Session DATE: November 26, 1996 INTRODUCTION: Council is asked to consider a proposal which would establish a team building session between the City Council and department heads. BACKGROUND: Mayor Henderson and I have discussed the need for a session in which the City Council and department heads might do some team building. Depending upon time available,there may also be discussion of goals that the City might set for the upcoming year; however, the need to be able to work together and no better what each individual seeks is of primary importance, at least at an initial session. OPTIONS: A session such as this may be self directed. However,to maximize the effectiveness,my experience is that it is helpful to have a neutral, outside party in to facilitate this type of meeting. I've been in contact with two people who I know do team building for public sector participants. I have received a written proposal back from one. The first attached is from Peter Cotton. I've used Mr. Cotton once before. He proposes a one day session initially, with later follow-up. He could also do some work in half day increments, or in longer sessions,but we feel the best effectiveness would be seen with a minimum one day investment of time. The other option is from Brimeyer and Associates. You may recall Mr. Brimeyer as the individual who did background checks on the City Administrator candidates. As shown, he suggests a 1 1/2 day session, in which personality behavior profiles would be filled out in advance by the participants. BUDGET IMPACT: The cost will vary by participant. Doing this internally would have no outside costs, other than that of staffing, and, if desired, food brought in for participants. Mr. Cotton's rates as shown in his proposal range from $350 per half day, to $650 for a whole day. The proposal from Brimeyer and Associates will vary from $2,000, to $3,000, depending upon the duration of work done. A suggestion would be that we do this at a location outside of City Hall so as to minimize distractions. One possibility might be the meeting room in the Community Center. The other concern would be the date to do this. It could be done on a Saturday,but, if the City Council would be available, a day during the week, perhaps in.January,would also be possible. I am aware that one department head will be on vacation from January 24 thru February 10, 1997. RECOMMENDATION: I recommend that Council establish a team building meeting, utilizing an outside facilitator. Further, a date should be set. A date following the Shakopee Town:Meeting would be recommended, so as to follow-up on directives that might be made as a result of that meeting. ACTION REQUIRED: If the Council concurs, it should, by motion, direct staff to set up a team building meeting for the City Council and department heads,utilizing whatever facilitator or facilitation process with. which they feel comfortable. It should also establish a date in which to do that. Mark McNeill City Administrator MM:tw 1 PC PC Peter Cotton Process Consultant Management Training • Goal Setting Organization Development•Team Building Nov.22. 1996 Mr. Mark McNiel, City Administrator 129 Holmes St. Shakopee MN 55379 -Dear Mr. McNiel: During our last phone conversation we talked about a goal setting/team building program for the City Council and.top staff people in the city of Shakopee. The proposal I am submitting is similar to the design that I have used for other City Council workshops,with some modifications. Following is a five or six step process for a proposed goal setting/team building workshop for the City of Shakopee : 1. Team Building; employs an instrument that I have used with other groups. This instrument allows the participants to.see the advantages of working together and the part each plays in joint decision making. 2. Long Range Planning; a session where everyone forms an image of what they think the . City will be like in the year 2020, including population, age of the population, etc. This mental image is shared and discussed by the group. 3. Goal Creation; a brain storming session where every one brings to the attention of the group projects or issues they believe will be helpful in guiding the City towards the image of the City they see in 2020. These goals are written on easel paper so every one gets a chance to review them. 4. Goal Setting; in this session the-participants set priorities for the goals they have created. Alternative ways of establishing these priorities are considered. 5. Road Blocks, in this portion of the session the Council and staff will look for and discuss any possible road blocks or difficulties they may encounter in achieving the goals they have selected. We will then discuss possible courses of action to overcome these roadblocks. 6. Roles, If time permits we should look at the roles that each segment of the City Administration plays in carrying out the City Council's goals. We can look at the role of the Mayor, the council, both as individuals and as a body, the City Administrator, and the staff. 2095 Dotte Drive, #308 • White Bear Lake, Minnesota 55110 • (612) 426-4060 ♦j PC PC Peter Cotton Process Consultant Management Training • Goal Setting Organization Development•Team Building My role is to facilitate the group process, in other words I keep the group moving towards its goal of establishing goals for the City. I also suggest that in six months we have a follow up session to review the progress that has been made. At that time we can look at the difficulties encountered and any further steps to be taken and adjustments to be made to accomplish the Council's goals. My fee for facilitating this sessions would be$650 a day,or$350 a half day, plus expenses. It is my recommendation that we tackle the goal setting/team building workshop in one day and the.follow up session in a half day. • Feel free to contact me if you have and questions or concerns about this proposal. Sincerely, ,f_ezZ Peter Cotton • 2095 Dotte Drive, #308 • White Bear Lake, Minnesota 55110 • (612) 426-4060 r4 P PC Peter Cotton Process Consultant • Management Training • Goal Setting Organization Development•Team Building Previous Clients and References League of Minnesota Cities Mr. James Miller, Executive Director 3490 Lexington Avenue No. St. Paul, Mn. 55126 Ph 612 490 5600 Stillwater Mn. • Mr. Nile Kriesel, City Coordinator • 216 N. 4th St. Stillwater Mn. 55082 Ph 612 439 6121 Edina Mn. Mr. Kenneth Rosland, City Manager . 4801 W. 50th St. Edina Mn. 55424 Ph 612 927 8861 Burnsville Mn. Mr. Greg Konat, City Mnanager 100 Civic Center Parkway Burnsville, Mn. 55337 Ph 612 895 4465 Dulth Mn. Mr. Karl Nollenberger, City Administrator 411 W. 1st. St Dulth Mn. 55802 Ph 218 723 3342 Rosemont, Mn. Mr. Thomas Burt, City Administrator - 2875 145th St. W. Rosemont Mn. 55068 Ph 612 423 4411 Hoffman Estates, I1. Mr. Peter Burchard, Village Manager 1200 N. Gannon Dr. Hoffman Estates, I1 . 60196 Ph 708 882 9100 2095 Dotte Drive, #308 • White Bear Lake, Minnesota 55110 • (612) 426-4060 P P C Peter Cotton Process Consultant Management Training • Goal Setting Organization Development•Team Building Mr. Cotton has had his own consulting firm since 1987, specializing in the areas of Organization Development, Goal Setting, Team Building, and Management Training for Municipal Governments . He has conducted workshops and management training seminars for Cities and Counties in several mid- western states. Peter Cotton brings over twenty years of experience in the areas of city management and decision-making to his consulting business . He has ten years experience in the City- Management profession including being the City Manager of both an out state and suburban community (Iowa Falls, IA & Hopkins,MN) . He also served one four-year term as a Councilman at Large in a large suburban community (Minnetonka . MN) . This mix of being able to experience how a city functions from these two different sides of the table gives him a unique perspective on how a City operates. In addition, he worked in sales and marketing in the private sector for ten years. Peter Cotton has a Master's Degree in Public Administration from Kansas University, a Bachelor's Degree in Business Administration from Mankato State University, a Certificate in Training and Development from the University of Minnesota, and a Certificate in Gestalt Therapy from the Gestalt Institute of the Twin Cities . In addition he has taken courses in organization development, team building and training from the NTL Institute in Washington D. C. and the Gestalt Institute of Cleveland. Mr. Cotton has been active in civic affairs over the years. He currently is an active member of The American Society of Training and Development, co-chairman of it's Management and Supervisory Special Interest Group, and a member of the local chapter of the Organization Development Network. He has been a member of Rotary International, International City Management Assoc. , and Toastmasters serving as the Educational Vice President in 1989 and the President in 1990. He likes to read, sail, and play bridge in his non-working 'hours . He also enjoys watching football and hockey. 2095 Dotte Drive, #308 •White Bear Lake, Minnesota 55110 • (612) 426-4060 NOV-26-96 TUE 13 :30 27463937 9450102 P. 02 a The Brimeyer Group, Inc. EXECUTIVE SEARCH CONSULTANTS 904 Mainstreet Suite 205 Proposal for Consulting Services Hopkins,MN 55343 City of Shakopee, Minnesota The objective is to assist the City Council, City Administrator and Staff in a session to: 1. Conduct a team-building exercise for the Council and Administrator. 2. Facilitate a discussion on being an effective Council Member. 3. Assist the Council, Administrator and Staff to: * Identify a clear set of goals for the City. * Establish priorities for the goals and direction of the City. * Develop support for these goals among Council and staff. * Develop communication and team work among Council and staff. * Develop a model for implementation of the goals established by the City Council. Conduct team building session with the City Council and City Administrator PHASE I Ask the Council and Administrator to complete a personality and behavioral survey. (The Performax Personality Profile will be used.) The consultant will complete individual results on each participant and provide a summary of the group's responses that will be shared at a later team-building session. Conduct a team-building session with the City Council and City Administrator designed to assess individual differences among participants. Develop a system that promotes more effective decision making, enhances the understanding of individual differences among participants, and promotes an atmosphere that allows for individual differences to be taken under consideration. (612)945-0246 • fax(612)945.0102 NOV-26-96 TUE 13 : 11 27463937 9450102 P. 03 s -2- PHASE II Utilizing the Carver Governance model, discuss the flaws of governance and prescriptions that do not work. Demonstrate how governing boards can utilize policy development as a leadership tool, answering the important question, "What good, for whom, at what cost?" PHASE HI Conduct a planning session with City Council, City Administrator and Staff. This session will: * Identify stakeholders * Assess the current strengths and weaknesses of the organization * Identify opportunities and threats of the organization * List and clarify goals * Identify strategic issues PHASE IV After establishing priorities of the strategic issues, develop a model plan for implementation and a framework for accomplishing the completion of these issues. NOV-26-96 TUE 13 : 11 27463937 9450102 P. 04 N City of Shakopee Proposed Schedule Pre-Session Council and Administrator complete Personality Behavior Profiles Friday - Council and Administrator 2:00 Expectations 2:30 Team building 5:30 Dinner break 6:15 Team building 7:30 Governance 9:00 Adjourn Saturday - Council, Administrator and Staff 7:30 Continental Breakfast 8:00 Governance discussion 10:00 Break 10:30 Strategic planning - Identify Stakeholders - SWOT analysis 12:00 Lunch Break 12:30 Develop issues - Establish priorities - Identify strategic issues 2:30 Break 3:00 Develop framework for action planning 5:00 Adjourn F,9, CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Date - Shakopee Town Meeting DATE: November 26, 1996 INTRODUCTION: The Council is asked to consider dates in January which to schedule a Town Meeting for the presentation of issues, and a discussion of questions with Shakopee residents. BACKGROUND: Early this year,the City Council expressed a desire to schedule a Town Meeting periodically in which Shakopee residents would be invited to gather, listen to presentations by staff and the Council, but,more importantly,provide an opportunity for the City Council to hear what is on the mind of the residents. After discussions with the Mayor, we are suggesting that a time be established in January for this to take place. Logically, it would be scheduled during an evening, or on a Saturday, so as to maximize the potential numbers who would attend. If held in the City Council Chambers, it would allow for the event to be cable casted. RECOMMENDATION: We have no recommended date,but would suggest mid-to late January, so that a"State of the City"presentation by the Mayor might be able to use complete 1996 events. Other potential items of discussion might be Blocks 3 &4 Plans, growth issues, and updates on the Courthouse Square. Calendars showing January and February are attached. ACTION REQUIRED: Council should, by motion, establish a date for a"Town Meeting", if desired, with potential dates and times. f)AJ*IA'LP:AA Mark McNeill City Administrator MM:tw January 1997 Upcoming Meetings Sunday Monday TuesdayWednesday Thursday Friday Saturday _ _ _ - _ ._ _.__ 1 2 3 4 Ilecem•er se e ovary ` City Hall Closed SMTWTFS SMTWTFS 1 2 3 4 5 6 7 1 8 9 10 11 12 13 14 2 3 4 5 6 7 8 15 16 17 18 19 20 21 9 10 11 12 13 14 15 22 23 24 25 26 27 28 16 17 18 19 20 21 22 29 30 31 23 24 25 26 27 28 5 6 7 8 9 10 11 4:30 PM SPUC 7:00 PM City 6:00 PM EDA 7:30 PM Planning Council Commission 12 13 14 15 16 17 18 • 19 20 21 22 23 24 25 City Hall Closed 7:00 PM City 6:00 PM EDA Council 26 27 28 29 30 31 7:00 PM Park and Recreation- Community Center Printed by Calendar Creator Plus on 11/26/96 February 1997 Upcoming Meetings Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 SMTWTFSanuary 1r arc f SMTWTFS ! 1 2 3 4 ] 2 3 4 5 6 7 8 5 6 7 8 9 10 11 12 13 14 15 16 17 18 9 10 11 12 13 14 15 19 20 21 22 23 24 25 16 17 18 19 20 21 22 23 24 25 26 27 28 29 26 27 28 29 30 31 30 31 2 3 4 5 6 7 8 4:30 PM SPUC 7:00 PM City 7:30 PM Planning Council Commission 9 10 11 12 13 14 15 6:00 PM EDA 16 17 18 19 20 21 22 City Hal 7:OOPMCity Closed Council 23 24 25 26 27 28 7:00 PM Park and 6:00 PM EDA Recreation Printed by Calendar Creator Plus on 11/26/96 II. F. CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: RIM Easement DATE: November 26, 1996 Introduction Council has previously authorized participation in the conservation programs that would pay the city for an easement to take drop land in Memorial Park out of production. The US government is requesting a binding commitment at this point . Background Council previously authorized application for participation in the easement programs to receive payment for taking park land out of agricultural production in Memorial Park. The Natural Resources Conservation Service of the US Dept . of Agriculture has sent the attached form. It is requesting a binding commitment from the city to grant an easement on 21 acres in exchange for the payment of $31, 550 . 07 . Gene Hauer has been renting the land and has been notified that it will not be available for farming in 1997 . The balance of the farm land would be covered by an easement with the Scott Soil and Water Conservation District . Recommendation Proceed with the easement . Action Move to authorize the proper city officials to execute the "option to purchase" with the Natural Resources Conservation Service for 21 acres in Memorial Park and to take all actions necessary and related to complete the easement . Gregg Voxland Finance Director U.S. DEPARTMENT OF AGRICULTURE DUPLICATE rr O�'��� NRCS-LTP-20A NATURAL RESOURCES CONSERVATION SERVICE NI L /1 /�� 5-95 �1 OMB No. 0578-0013 OPTION AGREEMENT TO PURCHASE WETLANDS RESERVE PROGRAM OPTION AGREEMENT TO PURCHASE NO. 66-6322-6-107 This Option Agreement is between the United Stales Department: of Agricullure, Natural Resources Conservation Service (hereafter "NRCS") , and the following named Landowner(s) , their heirs, successors and assigns (hereafter "Landowner") : Name: City of Shakopee Address: 129 Holmes Street So Gregg Voxland-Finance Director Shakopee, MN 55379-1351 In consideration of One Dollar (1.00) , receipt of which the Landowner acknowledges, the NRCS and the Landowner agree that: 1. To further the Wetlands Reserve Program (WRP) , if the NRCS exercises this option to purchase, the Landowner agrees to convey a WRP easement to the United States of America. The WRP easement is attached as EXHIBIT A and encumbers the land generally described or depicted on EXHIBIT B, (hereafter the "Property") . Except for normal farming, pasturing, and grazing, the Landowner agrees not to do, or allow others to do, any act by which the value or title to the Property may be diminished or encumbered. 2. Subject to the terms of this Agreement, the NRCS will pay the Landowner for 21 acres more or less at a rate of $1502.39 per acre. This amounts to Thirty One Thousand Five Hundred Fifty and 17/100 Dollars, ($31,550.19) for conveyance of the easement. The Landowner agrees to accept this amount as the full and final compensation for the easement. 3. NRCS will arrange for closing of the easement conveyance which may involve use of a title company or other closing agent. The NRCS will secure at its expense title evidence sufficient to meet Federal Standards. 4. At closing, the Landowner agrees to execute an easement deed in the form described in EXHIBIT A, along with any other document which is necessary for the United States to acquire a satisfactory title to the Property. The Landowner shall pay at closing any conveyance taxes and taxes owing against the Property. 5. With prior notice to the Landowner, the NRCS may hereafter enter upon the Property for planning and acquisition purposes prior to closing. At its cost, the NRCS may survey and monument the Property and any associated access route. 6. All terms and conditions of this Agreement are expressly stated herein, and there are no other related representations or promises. No Member of or Delegate to Congress, or Resident Commissioner shall be admitted to any share or part of this Agreement or benefit from it. 7. This Agreement is effective for six (6) months from the date of execution below. During that period the NRCS has the option to acquire the easement for the stated purchase price. 8. Except for reasons beyond the control of the Landowner, if the Landowner fails to convey the easement, the Landowner will be in default and shall pay the United States the amount of costs incurred by NRCS for survey and all other actions taken after the date, and in furtherance, of this Option Agreement. Executed this day of , 199 . N�c�50 1�9 FV � LANDOWNERS: '��, NRCS TITLE 0� This instrument was drafted by the Office of General Counsel, V.S. Department of Agriculture, Washington, D.C. 20250-1400. CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: EDA Compensation DATE: November 26, 1996 Introduction: At the Council's last meeting, it was apprised of the statutory requirement on compensation for EDAs. Subsequently, staff contacted several communities believed to have EDAs to learn what compensation was provided their EDAs. Five communities responded. The information gathered is consistent with City Attorney Thomson's impressions that man communities do not compensate their EDA boards. One of the p Y cities contacted proved to have an HRA, rather than an EDA, but commented that the compensation consisted of a"can of pop." Two cities, Brooklyn Center and Burnsville, have city councils which also function as the EDA board. Neither of those cities pay additional compensation for EDA responsibilities. Crystal and Richfield have separate boards which are volunteer and uncompensated. Presently, the Board of Adjustments and Appeals/Planning Commission for the City receives $50.00/meeting in compensation up to a maximum of$100.00/month. With the BOAA/PC going to 2 meetings a month as of January 1997, that could result in total compensation (assuming all commissioners attending 2 meetings a month) of$8400.00. Alternatives: 1. Approve compensation in an amount determined by the City Council to be appropriate, and in compliance with state statute. 2. Approve compensation in an amount equal to that provided to the Board of Adjustments and Appeals/Planning Commission. 3. Table the matter for further information or other reasons. Recommendation: Staff recommends Alternative No. 1. EDA.DOC/RML 1 Action Requested: A motion directing staff to implement its decision regarding EDA compensation. 0 R. Michael Leek Community Development Director EDA.DOC/RML 2 CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: 1997 Employee Group Insurance DATE: November 25, 1996 Introduction The city has received the renewal rates for employee group insurance coverages . Background Life Insurance The renewal rate for employee group life and AD&D instance is unchanged. The monthly premium for the city is currently $521 . 00 . Long Term Disability The renewal rate for employee group long term disability (LTD) is increased 9 . 5% . The city had an increase of 8 . 8% last spring. The new rate is $0 . 01 less than the rate of 4 years ago before switching to the current carrier, Fortis . The monthly premium for the city currently is $998 . 66 but will change with the renewal rate and as settlements for 1997 wages are reached with employee groups . Health Insurance For 1996, the rates were virtually unchanged from 1995 . For 1997, there is a 27% increase in the rates . The monthly premium for the city currently is $17, 143 . 58 . Annual increases in the teen' s percentage wise appears to be the norm for medical costs. The rates for employee health insurance are as shown below; Premium Single 2 - Party Family 1989 81.74 190.83 246.55 1990 89.82 212.12 272.86 1991 89.70 212.17 273.13 1992 103.16 244.00 314.10 1993 123.60 292.37 376.35 1994 111.24 263.13 338.72 1995 127.93 302.60 389.53 1996 128.05 302.92 389.92 1997 162.00 384.00 494.00 Eight Yr. Ann. Avg. 12% 13% 13% Two Yr. Ann. Avg. 13% 13% 13% One Yr. Change 27% 27% 27% The city offers only one choice to employees for health coverage. That is a fee for service plan (Blue Cross/Blue Shield Aware) that has a $100/300 (single/family) annual deductible with an 80/20% copay to a maximum of $500/1, 000 out of pocket cost . The employees as a group have not been interested in changing to an HMO plan. Any significant splitting of the group between an HMO plan and the fee for service plan will result in the fee for service plan being canceled by the carrier. Blue Cross is the dominate carrier in the market and will likely be the lowest cost responder to new proposals for coverage . The plan carried by the city has not changed in 30 plus years and has become a somewhat outdated plan in today' s market place. A majority of each of the five employee groups would need to agree to any changes to the coverages in the plan because of statutory restrictions. The city contributes a flat amount to the cost of the group coverages. It is applied first to the life and LTD coverages and the balance to the medical or paid to the employee if the total cost is less than the city contribution. For 1995 and 1996, all covered employees have received the same dollar benefit either by paid premiums or the difference in their paycheck. See the following chart : City Contrib. Emp.cost Emp. PayCk Emp. PayCk Fam. Coy. 2 Party Single 1995 326.66 84.87 2.06 176.73 1996 346.66 65.78 22.14 196.01 Quotes for alternatives coverages were requested from Blue Cross and are being reviewed for presentation to employees . Council has included funding in the 1997 budget for getting new proposals for group insurance. The intent was to start the proposal process in August for the January 1998 renewal . I do not believe anything would preclude the city from starting the process now except that the deductible and copay for medical coverage is figured on an annual calendar year basis and a short year may impose some work on the employees to document costs if the carrier is changed to avoid double deductible/copay. Alternatives 1 . Accept proposed increase in rates . 2 . Seek proposals for insurance . This will take about 3 months to complete. Recommendation Table health insurance pending input from employees on the variation of the plan to be provided by Blue Cross. Accept the renewal rate for Fortis . Action Move to accept the renewal rate for employee long term disability insurance from Fortis for 1997 . Move to table the renewal of the employee medical insurance . G"reg Voxland Finance Director CITY OF SHAKOPEE /3, Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Closed Meeting DATE: November 27, 1996 On the December 3rd City Council agenda, there is an agenda item which will allow the City Council to go in to closed session for the purpose of discussing labor negotiations status. Earlier that day, I will have met with both the Public Works, and Police Unions. If there is any issue to discuss with the City Council, it would be appropriate to do at that time in. a closed session. Mark McNeill City Administrator MM:tw