HomeMy WebLinkAboutJanuary 23, 1979 r
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TENTATIVE AGENDA
ADJ.REG. SESSION SHAKOPEE, MINNESOTA JANUARY 23, 1979
Mayor Harbeck presiding.
11 Roll Call at 5 :00 P.M.
21 Approval of Minutes of January 2nd and January 9, 1979.
31 5 :00 P.M. PUBLIC HEARING - 1979 Community Development Project
41 Recess until 7 : 30 P.M.
51 Reconvene at 7 : 30 P.M. at the Shakopee Public Utilities Building
61 Joint Meeting with' the Public Utilities Commission:
a] Gorman Street
b] Feasibility,.Study for storage tank - Res . No. 1361 ,
A Resolution Ordering Preparation of A Report on
Improvement
7 ] Recess
81 Reconvene at the Council Chambers in City Hall
9] 9:00 P.M: - - K-Mart TaX_ Increment Project
101 Other Business :
11] Adjourn to Wednesday, January 24, 1979 at 5:00 P.M. for a public
hearing on the 1979 Community Development Project. .
Douglas S. Reeder
City Administrator
y � CITY O F
PRIOR LAKE , MINNESOTA
55372
MICHAEL A. McGUIRE, MANAGER 612 - 447 - 4230
January 16, 1979
Walter C. Harbeck, Mayor
City of Shakopee
129 E. First Avenue
Shakopee, MN SS379
Dear Mayor Harbeck:
On behalf of the City of Prior Lake I want to thank the people
of the City of Shakopee for their assistance in helping with
the fire we had on January 8, 1979. Without their help the
fire in downtown Prior Lake could have been much more disastrous.
I would like for you to pass this letter on to the City Council
and the Fire Department so they may know how much we appreciated
their help.
Sin _
Walter A. Stock
Mayor
City of Prior Lake
WAS/caw
cc: Butch Ring
Fire Chief
C7*; t� j I'll.FP
JAN 1 7 a
CITY OF SHAKOPEE
THE CENTER OF LAKE COUNTRY
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
REGULAR SESSION SHAKOPEE , MINNESOTA JANUARY 2 , 1979
Mayor Harbeck called the meeting to order at 7 : 50 P .M. and gave a
brief invocation . Present were Cncl . Leroux , Hullander , Ward, Lebens
and Reinke .
Ward/Hullander moved to approve the December 19 , 1978 , Special Session
and Adj . Regular Session Minutes , as kept . Motion carried unanimously .
The City Adm. reported that he had received a copy of a letter addressed
to Governor Quie from Gayle Kincannon of the Metropolitan Transit
Commission, requesting her appointment for a full term as transit
commissioner.
Mayor Harbeck read a letter of resignation from Police Chief John
DuBois , effective February 15 , 1979 The letter stated that Mr .
DuBois felt he could better serve the community in his former position
of Detective-Sergeant .
Harbeck/Hullander moved to place the letter on file . Motion carried
unanimously .
Ward/Leroux moved to accept John DuBois ' resignation with strong
regrets . Motion carried unanimously .
Ward/Hullander moved that the City Council convey its strongest recommen-
dation to the Police Civil Service Commission to open the position to
any applicants . Motion carried unanimously .
Cncl . Hullander reported on the Association of Metropolitan Munici-
palities meeting which he attended in December , stating that the
legislative priorities were discussed .
Cncl . Reinke reported that a tentative meeting had been scheduled
between the Utilities Commission and the City Council for January 9 ,
1979 .
Ward/Hullander moved that when the meeting is adjourned for the evening,
that it be adjourned to January 9 , 1979 , at 7 : 30 P .M. Motion carried
unanimously .
Cncl . Ward reported that it will be necessary for the County to appoint
a representative to the Joint Seven Man Committee .
Cncl . Ward inquired as to the large amount of liquor boxes and bottles
located in the alley leading into the post office . The City Adm . will
investigate and report back to the Council .
Ward/Leroux moved to open the public hearing on the K-Mart Tax Incre-
ment Project . Motion carried unanimously .
Mr . Tom Hay of the Dorsey law firm presented an analysis of costs
involved with the proposed K-Mart Tax Increment Project .
The City Adm. reported that the Planning Commission had found the plan
in conformance with the Comprehensive Development Plan and the exist-
4ng zoning ordinance .
Mr . Jeff Molde from Dougherty , Dawkins , Strand & Ekstrom outlined
the Financing Plan for the project .
Mr . Bob Pulseher stated that he had no basic concerns with the Financing
Plan, but noted that there was a considerable difference in the amount
of projected tax increments reported by the City Assessor and K-Mart .
He was also concerned with what guarantee the City will have that the
facility will be constructed once the bonds are issued . He gave a
brief summary of benefits which will occur to both K-Mart and the City .
Proceedings of the City Council
Page -2- January 2 , 1979
Mayor Harbeck asked for comments from the audience . There were none .
Further discussion ensued concerning the proposed legal and administra-
tive fees .
The City Adm. will prepare- a report on the benefits of the project
to the City .
Hullander/Ward moved to direct the City staff to continue with their
negotiations with K-Mart and come back to the Council on January 16
with their report and Resolution . Motion carried unanimously .
Ward/Leroux moved to close the public hearing . Motion carried
unanimously .
Hullander/Ward moved for a five minute recess at 9 : 15 P .M. Motion
carried unanimously .
Leroux/Lebens moved to reconvene at 9 : 32 P .M. Motion carried
unanimously .
Mrs . Maggie Effertz and Mr . Dick Stoks outlined to the Council the
plans for the Senior High Class Party scheduled for graduation night ,
and requested the use of the room above City Hall in which to store
and make decorations for the party .
Ward/Hullander moved to allow the senior high parents access to the
area above City Hall in which to store and make decorations for the
senior high class party. Motion carried unanimously .
Mayor Harbeck expressed the Council ' s unanimous support of this con-
cept for the graduating seniors .
Ward/Leroux moved to authorize the City Adm. to draft an agreement
with William Pearson in connection with the construction of the sewer
and watermain for Cretex and School Bus Sales , and to authorize the
payment of $267 .00 for water hookup fees to Mr . Pearson .
Roll Call : Ayes - unanimous . Noes - none . Motion carried.
The City Adm. reported that only two bids had been received in connec-
tion with the bid for the City towing service . Considerable discussion
followed.
Mr . Steve Hentges , owner of Tri-S Towing Service , presented a letter
to the Council citing reasons for assigning the bid to him.
Hullander/Reinke moved to reject both bids .
Roll Call : Ayes - Leroux , Ward, Reinke , Lebens , Hullander
Noes - Harbeck Motion carried.
The City Adm. presented his recommendations for a Park Dedication
Ordinance and reviewed them with the Council . Considerable discussion
followed.
Hullander/Reinke moved to accept the City Adm. ' s recommendations con-
cerning the Park Dedication Ordinance as outlined.
Roll Call : Ayes - Ward, Lebens , Reinke , Hullander
Noes - Leroux and Harbeck
Ward/Harbeck moved to direct that 900 of the park acquisition fees be
used for land acquisition, and that 100 of the fees be used for capital
improvements . Motion carried unanimously .
Leroux/Ward moved to remove Resolution No . 1351 from the table .
Motion carried unanimously .
Proceedings of the City Council
Page - 3- January 2 , 1979
Hullander/Leroux offered Resolution No . 1351 , A Resolution Amending
the City of Shakopee Employee Benefits , and moved its adoption.
Roll Call : Ayes - unanimous . Noes - none . Motion carried.
Mayor Harbeck suggested that the City staff investigate the possibility
of providing an annual physical exam to members of the fire and police
departments .
Ward/Hullander moved to remove the Engineering Department staff
requirements from the table . Motion carried unanimously .
Hullander/Ward moved to authorize the hiring of an Engineering Aide
II at a starting salary between $10 ,000 and $13,000 annually, with
the maximum salary range never to exceed $14 ,000 .00
Roll Call : Ayes - Ward, Harbeck, Reinke , Hullander
Noes - Leroux and Lebens Motion carried.
Ward/Leroux offered Resolution No . 1345 , A Resolution Accepting Work
on the 1977-1 Public Improvement Project No . 1 , and moved its adoption .
Roll Call : Ayes - unanimous . Noes - none . Motion carried.
Leroux/Ward offered Resolution No . 1348 , A Resolution Regarding
Minnesota Department of Transportation Federal Aid Form No . 111 , and
moved its adoption . The City Adm. read the Resolution. Motion
carried unanimously .
Hullander/Ward offered Resolution No . 1349, A Resolution Authorizing
the City Engineer to Obtain Needed Engineering and Technical Services
from the Minnesota Department of Transportation, and moved its adoption .
The City Adm. read the Resolution . Motion carried unanimously .
Is-
Hullander/Reinke offered Resolution No . 1350, A Resolution Authorizing
Opening An Account with Merrill Lynch Pierce Fenner & Smith, Inc . and
moved its adoption .
Roll Call : Ayes - Leroux , Ward, Harbeck , Reinke , Hullander
Noes - Lebens Motion carried.
Hullander/Harbeck offered Resolution No . 1353 , A Resolution
Authorizing the Transfer of Funds , and moved its adoption . The City
Adm. read the Resolution .
Roll Call : Ayes - unanimous . Noes - none . Motion carried.
Leroux/Hullander offered Resolution No . 1354 , A Resolution Designating
Official Depositories of City Funds , and moved its adoption . The City
Adm. read the Resolution .
Roll Call : Ayes - Lebens , Reinke , Harbeck , Ward, Leroux
Noes - Hullander Motion carried.
Reinke/Leroux moved to adjourn at 12 : 05 AM to January 9 , 1979 , at
7 : 30 P .M. Motion carried unanimously .
Douglas S . Reeder
City Administrator
! f
OFFICIAL PROCEEDING OF THE SHAKOPEE CITY COUNCIL
ADJ . REGULAR SESSION SHAKOPEE, MINNESOTA JANUARY 9 , 1979
Vice Mayor Reinke called the meeting to order at 7 : 30 P .M. Present
were Cncl . Leroux, Lebens , and Hullander . Cncl . Ward arrived late and the
mayor arrived late after attending a meeting with the Police Civil
Service Commission.
The city Adm. read a communication received from the League of Muni-
cipalities concerning applications for positions on various State
Boards .
Cncl . Ward entered and took his seat at 7 : 35 P.M.
Vice Mayor Reinke recognized anyone in the audience who wished to
speak on any item not on the agenda .
Mr. Isidor Mahowald, a representative from the Shakopee Fast Track
Snowmobile Club, informed the council that Saturday, January 20,
will be the day of the March of Dimes Marathon Snowmobile Ride .
He stated that the marathon will be 50 miles and invited any Council
members to ride along.
Mr. Mahowald also stated that he has received several compiaints
through the Snowmobile Club, of snowmobilers using the hill in Lion' s
Park which is supposedly for children' s sliding .
The Asst . City Engineer reported on the present status of the Highway
101 Utilities project and the Holmes Street Feasibility Report .
The City Adm. reported that the City or Crystal will be selling their
voting machines , but recommended not purchasing the machines and waiting
to eventually purchase the punch card system.
The City Adm. reported that he has volunteered to act as a legislative
contact person for the 1979 legislation, and presented an outline
of 13 matters of importance to the City which will be discussed at
some point during the legislation. He also stated that we ' ll invite
the Shakopee State Senator and Representative to the next Council
meeting in order to discuss the City ' s needs with them.
Leroux/Hullander moved to approve the application and grant a 1979 Bingo
and Gambling License to the VFW, 132 East 1st Avenue . Motion carried
unanimously.
Hullander/Leroux moved to approve the application and grant a 1979 Bingo
and Gambling License to the American Legion, East 1st Avenue . Motion
carried unanimously.
Leroux/Ward offered Resolution No . 1358, A Resolution Ammending 1979 Pay
Schedule , and moved its adoption. The City Adm. read the Resolution .
Roll Call : Ayes - unanimous . Noes - none . Motion carried .
Leroux/Ward moved to approve the application and grant a Set-Up License
to the Jabberwocky Tavern, 109 East 1st Avenue . Motion carried unanimously .
The Asst . City Engineer reported on the traffic count which was taken on
the alley north of City Hall , and stated that the businesses along the
alley were in favor of closing of the alley, with the exception of one .
Hullander/Ward moved to authorize the proper City officials to enter into
an agreement with Bernice Lebens and Doris Cheever for the cleaning of
the City buildings at a cost of $1 , 120 .00 per month. Motion carried
unanimously.
Hullander/Lebens moved to authcrize the payment of $553 . 80 to pay the
delinquent taxes due on the Municipal parking lot on Fuller Street .
Roll Call : Ayes - unanimous . Noes - none . Motion carried.
Leroux/Lebens moved to recess at 8 :07 P.M. Motion carried unanimously .
eruux/Ward moved to reconvene at 8 : 48 P .M. Motion carried unanimously.
Mayor Harbeck entered and took his seat .
4
Proceedings or the City Council
Page - 2- January 9 , 1979
Members of the Shakopee Public Utilities Commission were present including
Wally Bishop, Russ Nolting , Eldon Reinke and Manager Lou Van Hout , and
Ed Leveack, to discuss matters which pertain to both the Council and Commission.
The City Adm. reviewed a report outlining recommendations to better
coordinate public improvement projects . He also walked through steps on
a flow chart indicating what is necessary to handle requests for public
improvement projects . Discussion followed .
Harbeck/Ward moved to authorize the City staff to revise the City Adm. ' s
recommendations on the coordination of Public Improvement Projects , as
discussed, and bring them uack in the worm of a Resolution which will act
as procedure for future years. Motion carried unanimously .
The: City Adm. reported on the meeting which he attended with Lou Van flout ,
a representative of K-Mart , a representative from Dougherty
Dawkins , Ray Jackson from Schoell & Madson, and Bob Puischer, concerning
the K-Mart project . Amung the items that were discussed included
how to assess the water tower , if built , the land cost , on-site improve-
ments included in the project , the method of selling bonds for the
project , and attorneys fees . Discussion followed.
Mr. Van Hout reported that a meeting will be scheduled in order to
negotiate the purchase of power lines from the Minnesota Valley Power
Company, and. hopefully it will be resolved within the year.
Mr. Van Hout also reported on the status of the second point of entry .
Mayor Harbeck reported that he attended the County Commissioner' s meeting
and also the Police Civil Service Commission meeting .
Reinke/Hullander moved to reappoint Joseph Perusich for a four year term
on the Planning Commission expiring February, 1983 . Motion carried
unanimously .
Reinke/Leroux moved to reappoint Mr. George Bodmer to a three year term on
the Police Civil Service Commission.
Roll Call : Ayes - Reinke and tnarbeck
Noes - Leroux, Ward , Lebens and Hullander Motion failed .
Harbeck/Reinke moved to authorize City staff to write a letter commending
Mr. George Bodmer for she excellent job he has done serving on the
Commission. Motion carried unanimously .
Reinke/Lebens moved to concur with the recommendations of Mayor Harbeck and
made the following 1979 Council liaison appointments : Cncl . Leroux to the
Shakopee School Board; Cncl . Lebens to the Shakopee Recreation Board; Cncl .
Reinke to the Public Utilities Commission; Cncl . Ward to the Joint Seven
Man Committee; Cnel . Hullander to the Shakopee Fire Department ; Mayor Harbeck
to the Scott County Board ; Ron Ward to the Planning Commission; Cncl .
Hullander to the League of Metro.Municipalities ; Mayor Harbeck to the
Shakopee Bypass Committee ; Douglas S . Reeder to the Community Education
Advisory Council ; Mayor Harbeck to the Police Civil Service Commission.
Motion carriea unanimously .
-4ullander/Leroux moved to reappoint Cncl . Reinke as Vice Mayor for 1979 .
Motion carried unanimously .
Reinke/Lebens moved to adjourn at 11 :00 P .M. until Tuesaay, January 16 ,
1979 , at 7 : 30 P .M. Motion carried unanimously .
Douglas S . Reeder
City Administrator
CITY OF
129 East First Avenue, Shakopee, Minnesota 55379
MEMO
TO: HRA Commissioners
FROM: Nancy Engman, HRA Director
SUBJECT: Public Hearing on 1979 Community Development Project
DATE: January 19 , 1979
An income questionnaire was mailed to the residents that would
benefit from the 8th Avenue sewer project . The results show that the
area does not meet the Federal Government ' s standards for low and
moderate income . We must be dealing in an area that is between 50%
and 75% low and moderate to have hopes of receiving Federal funds .
The survey results indicate that the 8th Avenue project is far below
the 50% level .
The alternative approach is to request a grant only for the assess-
ments that would affect the low and moderate income residents . The
difficulty with this approach is that the survey only indicates seven
individuals that qualify for the grant which produces a total cost of
only $17 , 500. All the remaining 40 residents would then be assessed .
There were 19 families that did not respond to the questionnaire .
The assumption is they were not interested in the project and did not
wish to disclose their income . Even if the same trend of low to
moderate people were assumed for this group, we would only have an
additional 5 families that qualified and a project cost of only $30,000.
A total of 35 people would be assessed in this case .
The amount of money in either case is too small to expect the
government to invest their administrative time . I have attached a sheet
of the projects funded last year to indicate to you the size of grant
the agency funds .
It is unfortunate that this area is not better suited to the grant
program. As you are aware , we have always worked in areas that are 80%
to 100% low and moderate . This area , unfortunately, is high income by
HUD standards .
These facts will be explained to the people that attend the public
hearing .
1.1114I1EAPOLIS-ST. PAUL AREA OFFICE J
1978 COMMUNITY D[:VELOP[1I IT BLOCK GRANT
SMALL CLT11:S PROCItA:•:
TOTAL NO. OF TOTAL $ REQUESTED: TOTAL $ INVITED:
METROPOLITAN COMPREHENSIVE APPLICANTS: 9 $ 5,067,000 $ 2,286,760
Invited
Hopkins $500,000 (Multi-Yr. maximum $1,700,000)
Shakopee 638,000
Columbia Heights 500,000 (Multi-Yr. maximum $1,700,000)
White Bear Lake 648,700
Back-up
South St. Paul
East Grand Forks
TOTAL NO. PRO- TOTAL $ REQUESTED: TOTAL $ INVITED:
METROPOLITAN SINGLE PURPOSE JECTS RATED: 49 $15,078,000 $ 847,300
Invited
Dakota County (PF) $110,000
Coon Rapids (Ell/H) 165,000
Scott County (H) 391,300
Waconia (ED) 181,000
Back-up
Scott County (H)
Clay County (H)
Farmington (ED)
TOTAL NO. OF TOTAL $ REQUESTED: TOTAL $ INVITED:
NON-METRO COMPREHENSIVE APPLICANTS: 21 $12,110,000 $4,077,000
Invited
Winona $500,000 (Multi-Yr. maximum $1,700,000)
Canby 597,000
Montevideo 750,000
Faribault 750,000
Clarkfield 733,000
Morris 747,000
Back-up
Big Stone County
Swift County
Crosby
TOTAL NO. PRO- TOTAL $ REQUESTED: TOTAL $ INVITED:
NON-METRO SINGLE PURPOSE JECTS RATED: 114 $40,367,000 $5,706,000
Invited
Nicollet County (H) $750,000
Lincoln County (H) 600,000
Marshall County (11) 750.000
Austin (11) 600,000
Mankato (H) 600,000
Pipestone (11/PF) 487,000
Worthington (H) 257,000
Lake bLnton (PF) 650,000
South International Falls (PF) 350,000
Fergus Falls (11) 310,000
Wells (11) 352,000
Back-up
Clarissa (ED)
NorL'itield (H)
Walnut Grove (H)
ED Economic Development 11 - Housing PF - kublic Facility
CITY OF $ 194 ;f. OPEE
129 East First Avenue, Shakopee, Minnesota 55379
MEMO
TO: _City Council
FRoM: H.R. SDurrier. City Engineer
SUBJECT: Relocation of Gorman Street
DATE:_ January 19 , 1979
The Engineering Department has prepared the following comparison of
Gorman Street Relocation. The comparison is made in order to assist City
Council in their decision.
The following list summarizes the advantages of relocating Gorman
Street :
1 . Reallignment pays the City' s $66 , 600 assessment for the construction
of Gorman Street .
2 . Reallignment makes land available for the construction of a bank.
3 . Reallignment improves conditions for signalization if future traffic
volume increases significantly .
The.' following list summarizes the disadvantages of relocating Gorman
Street :
1 . There is no merit in focusing more traffic on Naumkeag Street .
2 . The City must vacate or loose approximately 47 , 500 square feet of
land valued at $39 ,900 .
3 . A bank located at Gorman and Fourth may increase traffic to a point
where signalization would be necessary .
From the preceeding lists it is evident that land , valued at $39 ,900
is traded for the construction of a roadway that would cost $66 ,600. It is
the understanding of the Engineering Department that the bank must locate
at Fourth and Gorman, that the bank must have additional land at Fourth and
Gorman, and that a new bank is of benefit to the City . Then reallignment
to make land available is an advantage . The fact that the bank may create
sufficient traffic volume to require signalization, swings the economics
more toward a disadvantage because the cost of the signals is added to the
land cost . While there is still more benefit than cost , the ratio
approaches unity .
Regardless of the decision to reallign Gorman Street , the easterly
entrance of the Public Utilities building should be realligned to Gorman
Street .
I also attach a letter from Jack Anderson Associates regarding this
matter .
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City Hall , 29 Enqi Qvenw�:.
Shakopee, IN. ,
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WILLIAM D. SCHOELL
CARLISLE MADSON
JACK T. VOSLER
JAMES R. ORR
HAROLD E. DAHLIN
LARRY L. HANSON
JAC KSON
RAYMOND J. JACKSON SCHOELL & MAOSON. INC.
WILLIAM J. BREZINSKY ENGINEERS AN O SURVEYORS
JACK E. GILL
RODNEY B. GORDON NIP
THEODORE D. KEMNA I
JOHN W. EMOND [612) 938-7601 • 50 NINTH AVENUE SOUTH • HOPKINS, MINNESOTA 55343
KENNETH E. ADOLF
WILLIAM R. ENGELHARDT OFFICES AT HURON, SOUTH DAKOTA AND DENTON. TEXAS
BRUCE C. SUNDING
R. SCOTT HARRI
January 17, 1979
Mr. Louis Van Hout, Manager
Shakopee Public Utilities
1030 East 4th Avenue
Shakopee, Minnesota 55379
Subject: Elevated Storage Tank and Water Supply
Facilities, Valley Center for Industry
Area, Timetable and Proposal for
Engineering Services, Our File No. 10311.
Dear Mr. Van Hout:
As requested, we have compiled a timetable for the necessary steps leading
up to the consideration, bidding, construction, and start-up for a new 1.5
million gallon elevated tank on the proposed K-Mart Site. We also propose here-
in, a fee structure for Engineering Services in conjunction with the elevated
tank, water supply well, pump house, and connecting trunk watermain as has
been previously discussed for the past few months.
TIMETABLE:
The minimum period of time for a contractor to complete the fabrication,
shipment, erection, and painting of a tank of this size is 12 months. This
time span commences with receipt of a signed contract by the contractor and
ends with an elevated tank in service and operational. The 12 month estimate
is based on optimal conditions and a 14 month time span would be preferred by
the contractor where winter work is necessary.
We understand that K-Mart has stated that a mid-1980 completion date for
elevated storage is their requirement. In order to have the tank operational
by June 30, 1980, the construction contract must be awarded by July 2, 1979.
Working backwards, bid advertisements should then be placed by June 1, 1979,
which also would be the deadline for completion of contruction plans and
specifications. The latest date for ordering in the improvement and authoriz-
ing preparation of plans and specifications would be May 14, 1979. This date
will also apply to the public hearing for the improvement.
SCHOELL & MAOSON,INC.
Mr. Louis Van Hout, Manager January 17, 1979
Shakopee Public Utilities
Page Two
Published notice of the public hearing usually requires 10 days which
means the feasibility study should be presented to the City on May 4, 1979,
and the date and time set for the public hearing. Completion of the feasi-
bility study for the entire improvement (tank, well, pump house, trunk water-
main) will require four weeks although a study for the tank alone could be
completed in two weeks.
Based on this inverse scheduling; the feasibility study should be author-
ized by April 2, 1979. This schedule assumes everything will proceed on an
optimal basis and makes no allowance for continued public hearings or construc-
tion delays due to winter weather construction. Allowing for the 14 month
construction time span preferred by the tank contractors means the feasibility
study should be authorized by February 1, 1979. Any delays leading up to the
bid award must almost certainly be added on at the end of the timetable
delaying the completion date beyond June 30, 1980.
ENGINEERING SERVICES:
The scope of this improvement is somewhat uncertain at this time which
makes estimating fees for engineering services very difficult. We are flexible
in negotiations for a fee structure, but would prefer a percentage rate based
on the low bid construction cost or our estimated construction cost, which-
ever is lower. This percentage rate will apply to basic services to include
a preliminary phase, design phase, and construction phase. The scope of work
performed under basic services is as follows:
A. The preliminary phase, which accounts for 20 percent of the total
basic services, would include the following:
1. Collection, interpretation and report on information affecting
the feasibility of proposed project, including possible
alternative cost estimates.
2. Recommendations regarding feasibility.
3. Recommendations of concerned regulatory agencies.
4. Procedures for further implementation of project.
B. The design phase, which accounts for 70 percent of the total basic
services would include the following:
1. Preparation of design plans, specifications and bidding documents.
i
2. Estimates of construction cost.
3. Preparation of permit applications to regulatory agencies.
i
4. Assistance in advertising for bids and recommendations on award
of bids.
SCHOELL & MAOSON,INC.
Mr. Louis Van Hout, Manager January 17, 1979
Shakopee Public Utilities
Page Three
C. The construction phase which normally acounts for 10 percent of the
total basic services would include the following;
1. Periodic observations of work in progress.
2. Preparation of supplementary drawings required to clairfy working
drawings.
3. Review of detailed shop and equipment drawings to determine
compliance with plans and specifications.
4. Review of laboratory, shop and mill tests of materials and equip-
ment done by testing laboratories.
5. Review and make recommendations on requests for partial and final
payments to construction contractors.
6. Assistance during construction with interpretation of plans and
specifications.
7. Consultation and advice to the client during construction.
8. Final inspection and report of the completed project.
All of the work detailed above will be done for a total percentage rate
of six percent of the low construction bid or estimated construction cost,
whichever is lower. Because the proposed improvement may proceed in part or
be cancelled at any time, we will agree to compensation at an hourly rate
for only the work completed up to the notice for cancellation. This hourly
rate will be based on salary cost for the individual performing the work
times a multiplier of 1.8 for overhead and profit. Both of the above compensa-
tion methods are in accordance with the "Guide for Engagement of Engineering
Services" published jointly by the Consulting Engineers Council of Minnesota
and the Minnesota Society of Professional Engineers. We also agree to provide
a credit against the percentage rate for the preliminary feasibility study
already completed.
Additionally, special services required during the construction phase
such as resident inspection, construction staking, easement definition and
1 II acquisition, etc. , may be provided by our firm and compensated for on an
hourly basis in accordance with the "salary cost times multiplier" as detailed
above.
We recognize the rate structures are somewhat confusing and difficult to
comprehend from the brief description stated here. Therefore, we will be glad
to appear before the Utility Commission or City Council to explain in more
detail this proposal and all of its ramifications if you desire.
is
6 -
SCHOELL & MADSON.INC.
Mr. Louis Van Hout, Manager January 17, 1979
Shakopee Public Utilities
Page Four
Thank you for the opportunity to present this proposal and timetable and
we look forward to working with you on this improvement in the very near
future.
Very truly yours,
SCHOELL & MADSON, INC.
RJJackson:bk
SPRINGSTED INCORPORATED MUNICIPAL CONSULTANTS
SUITE 800 OSBORN BUILDING • SAINT PAUL,MINNESOTA 55102 • (612) 222-4241
Mayor Walter Harbeck
Members, City Council
Mr. Douglas Reeder, Administrator
City of Shakopee
Shakopee, MN
RE: K-Mart Tax Increment Program
You have requested we prepare a summary of benefits which will, or are
alleged to, accrue to the various parties involved in the K-Mart project
should the program proceed to final implementation as currently planned.
This communication is an effort to provide that listing, and is based on
our perception of the project, and assumes that the redevelopment project
is necessary to insure the construction of the K-Mart facility on the
proposed site. That assumption is based on the preliminary decisions
made by the City Council and the Shakopee Housing and Redevelopment
Authority to proceed to the public hearing stage on the redevelopment
plan.
There would appear to be three parties of interest to this project.
They are:
1. Scottland Inc. , the land owners.
2. K-Mart, the corporation proposing to construct the facility.
3. The City of Shakopee.
We have listed hereafter the potential benefits to each party, as perceived
by us.
SCOTTLAND
1. The project would appear to guarantee the sale of the property at
this time, at a value apparently satisfactory to the seller.
2. The sale of the property and the subsequent K-Mart development, may
have a positive impact on future development on adjacent properties,
which would generate additional land sales.
City of Shakopee, MN
17 January 1979
Page 2
3. The inclusion of some community wide facilities which are required
now because of the current project, are scheduled to be financed
through the captured increment. Some of the costs of those facilities
would otherwise have to be paid at least in part by charges to
other properties held by Scottland within the industrial park.
Since payment of those costs or charges will not be necessary, the
owner's future development costs should be reduced, thus increasing
the competitiveness of the land in future sales.
K-MART
While some of the real or potential benefits to the City and Scottland
are somewhat intangible, the benefits to K-Mart are quite tangible and
relate entirely to financial savings. These savings result from the
eventual write down price of the property after purchase and development
by the HRA, and the ability to reduce on-site water storage facilities
for fire protection.
1. Land Sale - It is our understanding the City will purchase the
affected undeveloped property and complete certain improvements
which are required for eventual development. The anticipated total
purchase price and development cost is currently estimated at
$2,560,000. It is expected that after preparation of the land for
development, the property will be offered for sale at an estimated
value of $700,000. If K-Mart is the purchaser, the write down
value of this transaction will be $1,860,000, subject to any
adjustments in actual development costs and final purchase price.
That estimated savings of $1,860,000 increases sharply when the
amortization costs K-Mart would have to bear are included. If K-
Mart were responsible for paying all costs, normal corporate
finance procedures would have to be used. A corporation as diverse
and large as K-Mart would have numerous options open to it. If
funds on hand were available and utilized, that money would carry a
cost since it otherwise could be invested or used for other purposes,
which other purpose would then carry a similar cost. If K-Mart had
to borrow the money, mid term (10 year) financing would add something
in the area of $850,000 to $950,000 of interest cost to the total
benefit.
2. It is our understanding that the City's decision to construct
concurrently with the K-Mart development a municipal water storage
facility will eliminate the need for K-Mart to construct a secondary
storage facility on-site. It is our understanding the cost of the
on-site facility is $500,000. If it is not required, the estimated
$500,000 savings does result.
City of Shakopee, MN
17 January 1979
Page 3
CITY OF SHAKOPEE
The community benefits of the project would appear to be as follows:
1. The provision of major public facilities without required reliance
on existing community resources. The estimated cost of constructing
the water tower and well is $1,350,000. If that cost were not
recoverable through the increment, a combination of utility revenues,
special assessments, connection charges and/or property tax levies
would have to be utilized. The real impact on existing utility
customers and property owners and future customers and owners is
impossible to predict, since no decision has been reached by the
City as to how the facilities would otherwise be financed. However,
in some way the community otherwise would have to finance entirely
the improvement. That savings would include the actual cost of
$1,350,000 and an estimated $1,000,000 of interest cost if amortized
over a twenty year period.
2. Estimates of taxes payable on the proposed building have ranged
from $619,000 to $709,000. The taxing jurisdiction involved in the
eventual disposition of these tax funds will not share in the added
taxable valuation while the increment is required to reimburse the
City and HRA for all incurred costs. However, upon termination of
the district, after all costs are paid, the valuations at that
time will become includable in the taxable valuation of all units.
Preliminary estimated indicate termination of the project might
occur in 1988-89.
Future taxes may include those taxes produced by a second phase
expansion by K-Mart. The timing and scope of that expansion is not
known. If it occurs over the life of the increment project, it
would hasten the payment of all costs, and subsequent termination
of the district. Obviously, unless the first phase is constructed,
the second phase will not materialize.
3. The construction of this facility has been hailed as a positive
influence on additional development in Shakopee's industrial
properties. That development may represent auxiliary or service
type development to complement K-Mart, or it may be totally unrelated
development which frequently follows other major corporate commitments
in new areas.
4. Added employment. It has been estimated the completed facility
will require an employment force of 250 persons with an annual
payroll of $2,500,000 to $3,000,000.
City of Shakopee, MN
17 January 1979
Page 4
5. The City's plans to construct the community water facilities
represents an accelerated schedule, made possible by the project.
The City's long term comprehensive water report indicated the tower
would have been required by 1987, and the additional well by 1982.
The construction of these facilities now will provide immediate
increased fire protection for the community. In addition, the
facilities can be completed at current construction prices, not at
the inflated price which may be in effect in 1982 and 1987.
Respectfully submitted,
17 January 1979
SPRINGSTED Incorporated
6i� T 'n. PC.,-�
/ S
Robert D. Pulscher J
First Senior Vice President
/cep
1UP L IL
league of minnesota cities
January 17, 1979
Dear City Official :
The 1979 National League of Cities Congressional -City Conference is scheduled for Satur-
day, March 3 through Tuesday, March 6 in Washington, D.C. Information about the meeting
has already been sent to your city.
Those of you planning to attend might be interested in the savings available on the Super
Saver or Freedom Fares made available by the airlines. These fares represent a signifi-
cant savings over the regular round trip fare of $212.
Since the number of Freedom Fares or Super Saver Fares available on a flight is limited,
you should make your reservations quickly. For both types of fares , the return flight
must also be booked in advance.
Freedom Fare reservations must be made seven days in advance of departure (but a longer
advance reservation is recommended) . You must stay one Saturday night at your destina-
tion. Freedom Fares are $170 round trip Monday through Thursday, and $180 Friday through
Sunday. An "average" rate of $175 is available if you leave the Twin Cities on a week-
day and return on Friday or a weekend (or vice versa) .
An additional saving of 15 to 20 percent over the Freedom Fare is available if you take
advantage of the Super Saver Fare. Reservations for this special fare must be made 30
days in advance. You must stay a minimum of seven days and a maximum of 60 days .
Flights between the Twin Cities and Washington, D.C. are most convenient on either North-
west or United Airlines. Only Northwest has nonstop flights. Only nonstop and one-stop
flights are listed here:
FLIGHTS TO WASHINGTON, D.C.
NORTHWEST AIRLINES
Flight No. Leave Twin Cities Arrive National Airport
304 (Monday - Friday) 7:40 a.m. 10:44 a.m. nonstop
306 (daily except Saturday) 8:55 a.m. 12:59 p.m. one-stop
336 (daily) 12:20 p.m. 3:22 p.m. nonstop
68 (daily) 5 p.m. 8:05 P.M. nonstop
70 (daily) 6:05 p.m. 9: 10 p.m. nonstop
300 hanover building, 460 cedar street, saint paul, minnesota 55101 C61 23 222-2861
Page 2
UNITED AIRLINES
Flight No. Leave Twin Cities Arrive National Airport
328 6:40 a.m. 11:09 a.m. one-stop
RETURN FLIGHTS FROM WASHINGTON
NORTHWEST AIRLINES
Flight No. Leave National Airport Arrive Twin Cities
305 (Monday - Friday) 7:52 a.m. 9: 17 a.m. nonstop
307 (daily) 8:08 a.m. 10:27 a.m. one-stop
69 (daily) 12:45 p.m. 2: 10 p.m. nonstop
369 (Monday - Friday) 4:30 p.m. 5:58 p.m. nonstop
85 (daily) 5:55 p.m. 7:22 p.m, nonstop
UNITED AIRLINES
(No direct or one-stop Flights available)
To make reservations and for further information about these flights or other flights
available, contact Lorna Hillstrom of Dayton's Travel Service, Dayton 's Department
Store, Seventh and Cedar Streets, St. Paul , Minnesota 55101, (612) 375-6664.
S' cerely,
Vrl
Donald Sla er
Executive Director
DS:glb
i
Dep' t . of Housing and Urban Development
Qualifying Income Figures-
Low and Moderate Income Families
Family Size Qualifying Income
1 $11 , 312
2 $12 , 928
3 $14, 544
4 $16 , 160
5 $17 , 170
6 $18, 180
7 $19, 190
8 $20,200