HomeMy WebLinkAboutCouncil Information Memorandum 02-01-1990r
PCITYF
PLYMOUTR
CITY COUNCIL INFORMATIONAL MEMORANDUM
February 1, 1990
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UPCOMING MEETINGS AND EVENTS.....
I. SPECIAL COUNCIL MEETING -- Monday, February 5, 4:30 p.m. Council to
Interview Board and Commission candidates. _
2. REGULAR COUNCIL MEETING -- Monday, February 5, 7:00 p.m.
3. SPECIAL COUNCIL MEETING -- Thursday, February 8, 3:30 p.m. Council
to review City Manager objectives.
4. JOINT COUNCIL/PRAC MEETING -- Thursday, February 8, 5:00 p.m.
"Joint City Council and Park and Recreation Advisory Commission
meeting to review Comprehensive Plan and Park Component of Capital
Improvements Program. Agenda attached. (M-4)
5. TOWN MEETING -- Monday, February 12, 7:00 p.m. Town Meeting for
Area 4 in City Council chambers. Meeting notice and agenda are
attached. (M-5)
6. BOARD OF ZONING -- Tuesday, February 13, 7:00 p.m. The Board of
Zoning Adjustments and Appeals will meet in the large office area
conference room.
7. PLANNING COMMISSION -- Wednesday, February 14, City Council
chambers. The Planning Commission Forum will begin at 7:15 p.m.,
with the regular Planning Commission meeting beginning at 7:30 p.m.
8. HRA -- Thursday, February 15, 6:30 p.m. The Plymouth Housing and
Redevelopment Authority will meet in the City Council chambers.
9. MEETING CALENDARS -- Meeting calendar for February is attached.
(M-9)
3400 PLYMOUTH BOULEVARD, PLYMOUTH. MINNESOTA 55447, TELEPHONE (612) 559-2800
CITY COUNCIL INFORMATION MEMORANDUM
February 1, 1990
Page 2
FOR YOUR INFORMATION
1. MUNICIPAL LEGISLATIVE COMMISSION (MLC) ANNUAL MEETING - The MLC held
its annual meeting last Monday night. I thought the Council would
be interested in some of the materials which came forward from that
meeting. The membership took action on three items which are of
importance. Copies of each are attached. First, they adopted the
1990 Public Relations Plan which was modified to include the
addition of a speaker's bureau of local officials (elected and
appointed) who would be available to talk with groups and second, it
was determined desirable to hold candidate orientation meetings
sometime in the summer where both incumbents and potential
challengers would be invited to learn more of the MLC's objectives.
Secondly, the members adopted the 1990 Legislative Program. This
document focuses' on the MLC's primary objective of property tax
reform. Specifically, the MLC is going to urge the Legislature to
adopt a property tax policy that taxes homes using a single tax
capacity rate rather than the current three tax capacity rates.
There is no chance that this will occur in 1990, but the effort will
begin. Finally, the members approved an extension of the
consultation contract with Messerli and Kramer through December
1990. (I-1)
2. TAX INCREMENT FINANCING -- Attached is a report prepared by Hennepin
County and submitted to the Legislature to highlight perceived
problems of tax increment financing. This report will provide you
with a glimpse of the County's attitude with respect to the growth
in tax increment financing and its perceived abuses. This topic
will be debated during this session of the Legislature. It is
highly probable that additional tightening of TIF laws will result.
At this juncture, it is not possible to speculate as to the impact
upon Plymouth, or our existing TIF district. (I-2)
3. SUBURBAN RATE AUTHORITY (SRA) ANNUAL MEETING -- Attached are copies
of the annual meetings minutes of the SRA, along with a variety of
documents which provide some background as to the activities engaged
in by the SRA during 1989. (I-3)
4. REAL ESTATE JOURNAL SURVEY -
sent you a copy of a survey
Journal. I have now received
in the January 22 issue. It
their part, they transposed
article. The bottom line:
rather than "supportive"
environment. (I-4)
In my information memo of January 12, I
which was published by the Real Estate
a copy of a correction which appeared
appears that through a "minor" error on
the column headings in the original
Plymouth is perceived to be "hostile,"
with respect to our regulatory
5. CUSTOMER COMMENT CARD - Attached is a customer comment card received
at the front counter complimenting service given by Plan Checker
Glen McLearen. Also attached is a letter from Helen LaFave
responding to comment. (I-5)
CITY COUNCIL INFORMATION MEMORANDUM
February 1, 1990
Page 3
6. WEEKLY NEWS HOME DELIVERY -- Michael Krause of the Weekly News
previously indicated that they were working to establish home
delivery throughout Plymouth. He informed us that it will take
several more weeks to finalize the distribution service. They
expect that home delivery for the entire City will be in place no
later than the first week of March.
7. HENNEPIN COUNTY "BUTTON BATTERY" RECYCLING - Hennepin County is
initiating a program to collect and appropriately dispose of so
called "button batteries." These batteries are normally used or
found in hearing aids, cameras, watches, and calculators. They
contain mercury and/or silver. I have informed the County that we
will participate in their program. The County is to provide us with
a specially designed box in which people would deposit their old
spent button batteries. The boxes would be collected when full by
an agent working for the County. I anticipate the container would
be located here at the City Center office for the convenience of the
public.
8. RESIDENT FEEDBACK FORMS -- Attached are copies of Resident Feedback
Forms received following the Town Meeting for Area 3 on January 29,
1990. The Mayor has sent a letter to each resident thanking them
for attending the meeting and informing them that their concerns and
comments have been forwarded to the appropriate Department for
response. Also attached is a note from an Area 4 resident who will
be unable to attend the Town Meeting scheduled for February 12. The
Council will be provided with copies of each staff response. (I-8)
9. LIQUOR ESTABLISHMENTS' DELINQUENT TAXES -- On January 22 the City
Council approved liquor license renewals for Acquest Corporation
d/b/a Plymouth Place Hotel, and Ashbeck-Guth Inc., d/b/a Colony
Liquor, with the condition that all delinquent taxes be paid by
January 31. Acquest Corporation paid the full amount of $145,022.20
to Hennepin County on January 29. Ashbeck-Guth Inc., paid the full
amount of $18,219.40 on January 31. Both licenses have been issued.
10. WHITING/GLYNN MEDIATION -- According to the West suburban Mediation
Center, the mediation session has been rescheduled for Monday,
February 5 at 7:30 p.m. in the Plymouth City Center lunchroom.
11. FOR YOUR INFORMATION! -- For your information, attached is an
article "How Does A Business Become Customer Oriented?" Also
attached is an article entitled "Dump Reactive Language: Get
Proactive!" (I-11)
12. MINUTES:
a. Planning Commission, January 10, 1990. (I -12a)
CITY COUNCIL INFORMATION MEMORANDUM
February 1, 1990
Page 4
13. WASTE TRANSFER STATION - Attached is a memorandum from Community
Development Coordinator Charles Dillerud concerning Hennepin
County's application for a Conditional Use Permit to construct a
solid waste transfer station at the northeast corner of County
Road 6 and I-494. (I-13)
14. TOWN MEETING - Attached is a memorandum from Public Safety Director
Carlquist regarding resident concerns expressed at the January 29,
Area 3 Town Meeting. (I-14)
15. VOTER INFORMATION - Attached is a pamphlet from the Election
Division of the Secretary of State containing information about the
1990 Precinct Caucuses to be held on February 27, 1990. (I-15)
16. RECYCLING - Attached is a cartoon published in the EPA Journal
concerning recycling. (I-16)
17. ASSOCIATION OF METROPOLITAN MUNICIPALITIES -- Attached is the
January, 1990 issue of the Association of Metropolitan
Municipalities newsletter. (I-17)
18. BZ CORRESPONDENCE -- The following correspondence on City
departments or employees has been received:
a. Letter of appreciation to Plymouth Police from Pat and Holly
Monahan. (I -18a)
b. Letter of recognition to Police Officer R. Luke Way from Public
Safety Director Carlquist regarding his performance on a medical
call. (I -18b)
C. Letter from Mayor Bergman to Public Safety Director Carlquist
thanking Sergeant Foreman for "ride along." (I -18c)
19. CORRESPONDENCE:
a. Kingsview Heights Homeowners Association. Mr. Randall Nord,
President, recently wrote the City following up on an earlier
contact with a community service officer with respect to debris
that had accumulated on a lot within the Kingview Heights 2nd
Addition. Attached is a copy of a follow up report from the
Community Service Officer, John Sigfrinius, along with a letter
to Harstad Construction Company, requesting that they clean up
the property. (I -19a)
b. Letter from West Suburban Mediation Center concerning funding
loss. (I -19b)
c. Letter from Mayor James Deane of Maple Grove concerning Elm
Creek Interceptor Study. (I -19c)
CITY COUNCIL INFORMATION MB40RANDUM
February 1, 1990
Page 5
d. Letter from the State of Minnesota Department of Natural
Resources concerning Eurasian water milfoil in Medicine Lake.
(I -19d)
e. Letter from Richard J. Gun-, Olson, Gunn and Seran, Ltd., and
response from Charles Dillerud concerning Eugene Paulsen
property. (I -19e)
James G. Willis
City Manager
JW:kec
Regular Meeting of the Park and Recreation Advisory Commission
February 8, 1990, 7:30 p.m.
(Remember the joint meeting with the Council beginning at 5 p.m.)
AGENDA
1. Call to Order
2. Approval of Minutes
3. Visitor Presentations
a. Athletic Associations
b. Staff
c. Others
4. Report on Past Council Action
5. Unfinished Business
a. 1989 annual report
b.
C.
d.
e.
6. New Business
a. New plats
b. 1990 rental policies and fee schedules
c. 1990 park projects
d.
7. Commission Presentation
8. Staff Communication
9. Adjournment
Next regular PRAC meeting March 8, 1990
M -S
TOWN MEETING AGENDA
AREA 4
February 12, 1990
7:00 p.m.
I. 1990 PROPOSED CAPITAL IMPROVEMENTS
A. Streets
B. Sanitary Sewer
C. Water
D. Public Buildings
E. Parks/Trails
II. COMMUNITY DEVELOPMENT
A. Development Activity
B. Comprehensive Plan Update
III. PUBLIC SAFETY
A. Police/Fire Report
B. Police/Fire Alarm Permits
C. Neighborhood Watch Program
D. Animal Control
IV. OTHER ITEMS
A. Public Transportation - Plymouth Metrolink/Dial-a-Ride
B. Local Government Cable.Access Channel 37
C. Solid Waste Recycling Program
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MUNICIPAL LEGISLATIVE COMMISSION
1990
LEGISLATIVE PROGRAM
Presented at the
Annual Legislative Dinner
January 29, 1990
I -I
The Municipal Legislative Commission (MLC) has been in existence for six
years. As an organization of 15 suburbs representing almost 600,000 people, our
legislative objectives have evolved as we have matured. Our purpose and focus
have become more clear with the passing of each legislative session. The goal of
the MLC as we enter the 1990s is as simple to state as it is difficult to achieve.
Our goal is Property Tax Reform.
The inequities that exist between suburban homeowners compared to non -
metro homeowners can no longer be justified. Research data, which is attached"
as part of this report, reveals that the current property tax system creates
inequities based on income levels (Appendix A), based on levels of services
received (Appendix B), based on the type of housing stock (Appendix C) and
based on aids and credits received (Appendix D).
One legislative policy, perhaps the most significant policy, which creates and
perpetuates these inequities is a property tax policy which taxes homes using a
three -tiered -rate system. The value of homes over $100,000 is taxed at a rate
200% greater than the value of homes under $68,000. This system must be
changed in order to eliminate the disparities between metro and non -metro
homeowners.
The MLC's 1990 legislative program can be stated in one sentence. The
Legislature should adopt a property tax policy that taxes homes using a single
tax capacity rate.
Using a single rate system, the average metro home that is twice as valuable as
the average non -metro home would pay twice the tax, not 145% more as is the
case under the current system. An average suburban home which has 150%, or
1-1/2 times, more value than an average non -metro homes would pay 150%
more property tax, not the 268% more tax under the current system. (Appendix
E).
Homestead property owners in 1990 will pay $886 million in property taxes or
28.5% of the total $3.1 billion that will be paid by all property classes. The total
market value of all homesteads in Minnesota is $69.3 billion. Rather than using
a 1%, 2%, 3% system on homes to arrive at $886 million, a flat rate of 1.28% on
11
all homes would raise the same amount of dollars. If you multiply $69.3 billion
by 1.28%, the result is $887 million. However, the MLC is not advocating a rate
of exactly 1.28%. The Legislature shold determine if homes as a class are paying
too much, too little or the correct amount of property tax. The single rate
amount would then be set based on this determination.
A single rate policy would provide substantial property tax decreases on higher
valued suburban homes. (Appendix F).
This policy would also result in increases on low valued homes. The tax
capacity on a home under $68,000 in value would increase from 1 % of market
value to 1.28% of value. On the average non -metro home, the tax would
increase from $430 to $573. In order to protect low income homeowners from
this increase, the circuit breaker (property tax refund) system should be
enhanced.
It is not the intent of this single rate policy to cause property tax increases on
homeowners who cannot afford to pay additional taxes. With an enhanced
circuit breaker, the Legislature can assure that low income homeowners are
insulated from any increases.
Rather, the intent of this single rate policy is to:
1) Simplify the property tax system by making it more understandable; thus,
enhancing accountability;
2) Target state resources in a more efficient manner by providing property
tax relief to only those homeowners who need it; and
3) Reduce the disparity and eliminate the inequities between suburban and
non -metro property taxpayers.
The MLC will be concentrating its efforts in 1990 to achieve the above goals. A
single tax capacity rate on homes will be the cornerstone of property tax reform
as we begin the decade of the 1990's.
- 2 -
I
Appendix A
Property Taxes Paid Compared to Income Received
THE RELATIONSHIP BETWEEN PROPERTY TAXES AND THE ABILITY TO PAY IS DIFFICULT TO
ESTABLISH. METRO AREA HOMEOWNERS, ON AVERAGE, PAY TWICE THE PROPERTY TAX AS NON -
METRO HOMEOWNERS EVEN THOUGH THEY RECEIVE SIMILAR INCOMES.
$85,001-$95,000
6,900
$ 994
1,600
$ 883
METRO VS.
HOUSEHOLD
#OF METRO
METRO
#OF NON -METRO
NON -METRO NON -METRO
INCOME
HOMES
TAX
HOMES
TAX .
TAX
$ 5,000 OR LESS
7,000
$ 421
14,600
$124
239%
i $ 5,001-$15,000
49,700
$ 424
100,000
$ 223
90%
$15,001425,000
86,900
$ 568
92,300
$ 347
63%
j $25,001-$35,000
100,000
$ 643
89,000
$ 375
72%
$35,001-$45,000
95,500
$ 661
53,600
$ 376
76%
$45,001-$55,000
63,400
$ 765
25,000
$ 464
65%
$55,001-$65,000
35,100
$ 867
10,700
$ 512
70%
$65,001-$75,000
17,000
$ 898
5,500
$ 540
66%
$75,001-$85,000
8,300
$1,215
2,800
$ 486
150%
$85,001-$95,000
6,900
$ 994
1,600
$ 883
13%
$95,001-$105,000
4,900
$1,358
1,200
$ 691
97%
Over $105,000 12,500 , $1,791 4,100 $870 106%
TOTAL 487,300 $ 700 400,400 $ 342 105%
*Information for the above chart was provided by the Minnesota House of Representatives Research Department.
- 3 -
Z- I
Spending is on a per capita basis
Source: Office of the State Auditor for year ending December 31, 1987
- 4 -
Appendix B
The Relationship Between Local Spending Decisions
and Property
Taxes Paid is Difficult to
Explain
City Spending & Property Tax Comparisons
For Selected Cities In Minnesota
1989
NET
1989
1989
TOTAL
CITY
AVERAGE
AVERAGE:
CITY
POP
POLICE
FIRE PARKS EXPEND
LEVY*
VALUE
TAX
Bemidji
11,005
$78.96
$33.09 $29.62 $539.61
$ 66
$34,600
$ 379
Brainerd
11,287
83.40
34.31 18.84 549.27
116
38,600
342
Cloquet
10,409
74.83
57.21 30.55 552.52
127
33,600
349
Virginia
9,634
104.74
116.50 74.72 1,050.72
124.
30,800
272
Fergus
Falls
12,432
65.09
12.06 51.26 767.28
96
38,300
3.70
Hopkins
15,065
94.18
20.21 26.00 480.41
161
82,500
957
North
St. Paul
12,228
52.88
8.07 24.86 341.54
35
73,700
819
New Ulm
13,401
66.34
9.76 54.27 566.34
88
45,400
416
Marshall
11,698
80.61
15.68 54.03 597.32
99
51,500
525
Mounds View
13,022
48.26
10.34 23.86 281.97
45
80,400
953
Austin
22,189
87.84
65.56 36.65 508.44
107
40,900
422
New Hope
22,785
72.85
15.66 33.20 398.45
91
82,300
1,011
Hibbing
18,780
61.78
66.41 36.27 690.66
80
30,200
200
Mankato
29,470
78.48
67.00 41.67 686.63
161
54,900
592
Maplewood
28,927
81.60
30.60 27.99 521.44
131
80,600
1,062
Moorhead
30,494 •
57.61
38.53 34.00 577.31
59
49,700
510
Shoreview
23,473
23.82
13.40 27.47 335.32
83
97,700
1,346
Willmar
17,143
64.62
21.09 35.28 839.24
79
50,800
488
New
Brighton
23,324
42.37
5.39 28.06 398.45
67
96,100
1,296
Spending is on a per capita basis
Source: Office of the State Auditor for year ending December 31, 1987
- 4 -
Appendix C
Because of the tiered system, Metro homes pay a disportionate share of property taxes. In many instances,
similar homes pay grossly different property taxes.
Three comparable home located in Bemidji, Eden Prairie and Minneapolis were used for this example. Each
home is identical from a structural and amenities point of view.
Each home is a 25 -year-old, three bedroom rambler
containing 1,300 square feet of space. Each home has an
unfinished basement, central air conditioning, a double
garage, fireplace and 11/2 baths.
The market value of each home was estimated by local realtors to be:
Eden Prairie $99,200
Minneapolis $84,600
Bemidji $49,600
The estimated tax in 1989 on these homes will be:
Eden Prairie $1,671
Minneapolis $1,184
Bemidji $ 588
Although the home in Eden Prairie has a market value that is exactly twice the market value of an identical home
in Bemidji, the Eden Prairie homeowner does not pay the same property tax. Nor does this homeowner pay twice
the property tax. The Eden Prairie homeowner pays 184% more property tax than the homeowner in Bemidji.
— 5 —
I— L
Appendix D
Austin 22,374
AIDS AND LEVIES VARY GREATLY WITHIN MINNESOTA
627
653
.96
New Hope 22,770
692
RATIO
356
2.40
NET TAX
283
595
LEVIES TO
CITY
POPULATION
CAPACITY
LEVIES
AIDS*
AIDS
Bemidji
11,088
462
533
682
.78
Brainerd
11,272
482
526
586
.90
Cloquet
10,444
475
716
873
.82
Virginia
9,835
292
775
1,244
.62
Fergus
Brighton 23,310
640
747
318
2.35
Falls
12,370
497
543
592
.92
Hopkins
15,211
1,167
1,091
212
5.14
North
St. Paul
12,210
484
579
361
1.60
New Ulm
13,389
400
495
500
.99
Marshall
11,595
503
570
524
1.09
Mounds View 12,928
465
551
310
1.78
Austin 22,374
424
627
653
.96
New Hope 22,770
692
856
356
2.40
Hibbing 19,002
283
595
1,006
.59
Mankato 29,484
596
625
508
1.23
Maplewood 28,775
1,075
1,197
401
2.98
Moorhead 30,285
372
403
530
.76
Shoreview 22,560
786
863
364
238
Willmar 17,029
436
540
633
.85
New
Brighton 23,310
640
747
318
2.35
Spending is on a per capita basis
Source: Office of the State Auditor for year ending December 31. 1986
* Includes school foundation aid, local government aid, homestead credit,
agriculture credit,
taconite homestead credit and disparity aid.
- 6 -
11!
Appendix E
Minnesota's Tiered System Distorts
the Property Taxes Paid on Similar Homes
Minnesota's property tax system is based upon an extremely progressive rate structure and as metro area homes
continue to increase in market value, the disparity between metro and non -metro homes will widen for the average
homeowner.
TAX CAPACITY RATES
1.0% on the first $68,000 of market value
2.0% on the next $32,000 of market value
3.0% on the excess of $100,000 of market value
In other words, any value between $68,000 and $100,000 of market value is taxed 100% more than the value under
$68,000. Any value over $100,000 is taxed 200% more than the value up to $68,000.
To use an example: The average non -metro home in 1990 will have a market value of approximately $44,000.
The average metro home's market value will be $88,000. The average west suburban home's market value will be
$110,000.
METRO MV METRO TAX
MARKET VS. VS.
VALUE TAX* NON -METRO% NON -METRO%
NON -METRO $ 44,000 $ 440 ---- ----
METRO AVE $ 88,000 $1,080 100% 145%
SUBURB MV SUBURB TAX
MARKET VS. VS.
VALUE TAX* NON -METRO% NON -METRO%
NON -METRO $ 44,000 $ 440 --------
SUBURBS $110,000 $1,620 150% 268%
* Assuming 100% tax capacity equates to net tax paid
— 7 —
Appendix F
EFFECTIVE TAX RATES ON HOMES -1990
HOME LOCATION
MARKET VALUE
NET TAX
Average Metro
$ 87,300
$1,086
Average Non -Metro
$ 44,800
$ 430
Average West Suburb
$106,200
$1,534
1/3 Above Average
r
$ 762
1.84
Metro
$116,100
$1,818
1/3 Above Average
$4,078
Non -Metro
$ 59,500
$ 571
1/3 Above Average
West Suburb
$141,200
$2,603
Twice Average
West Suburb
$212,400
$4,847
Three Times Average
West Suburb
$318,600
$8,138
I- 2
EFFECTIVE
TAX AT
TAX RATE
1.28%
1.24%
$1,117
.96
$ 573
1.44-
$1,359
1.57
$1,486
.96
r
$ 762
1.84
$1,807
2.28
$2,719
2.55
$4,078
M
� MUNICIPAL
I,EGISI.ATIVE
COMMISSION
I-1.
15oo Northland Plaza
3800 West 80th Street
Bloomington, Minnesota 55431
(612) 893-6650
The MLC Public Relations Committee comprised of Barry Johnson,
Woodbury; Dwight Johnson, Shoreview; Carl Jullie, Eden Prairie;
Jim Willis, Plymouth; Steve Sarkozy, Roseville and Bob Renner,
Jr., met on Friday, January 19, to discuss a 1990-1991 public
relations strategy. As a result of their discussions, a public
relations plan, outlined below, was formulated.
The Committee recommends the following public relations
objectives:
I. A public relations strategy should begin immediately and
continue through the end of the 1991 legislative session
(January 1990 through May 1991).
II. The main audience of this plan should be the public,
specifically property owners living in the metropolitan
area. Legislators, staff and administrative officials
should be a secondary audience.
III. The focus of our efforts should be on the unfairness and
inequities in the current property tax system.
Specifically, the disparities that exist between the metro
area versus the non -metro area due to a progressive rate
structure based on market value.
IV. The public relations goal will be to increase public
awareness and understanding of the fairness and simplicity
of a "flat rate" property tax system.
In order to accomplish the four objectives listed above, the
following public relations activities will be pursued:
1) Letters to the Editor - An increased emphasis will be
placed on Letters to the Editor, both in the suburban
press as well as the Minneapolis and St. Paul papers.
City managers will be responsible for this activity.
2) OnEd Page - An OpEd piece will be drafted for the•major
daily papers and submitted by the MLC President. Bob
Renner will be responsible for writing this article.
Member Cities: Bloomington. Brooklyn Park, Burnsville, Eagan,
Eden Prairie, Edina. Inver Grove Heights, Maple Grove, Maplewood, Minnetonka,
Plymouth, Roseville, Shoreview, White Bear Lake, Woodbury
1-1
3) City Newsletters - City newsletters should be used more
aggressively to make the point of the disparity between
metro and non -metro property taxes. Charts and graphs
showing income comparisons, service level comparisons and
cost of providing services should be used to educate our
taxpayers.
4) Press Releases - Soft news press releases i.e. "MLC to
Hold Annual Legislative Dinner" should be continued but
de-emphasized.
5) City Council Resolutions - The MLC should organize the
passage of dozens of suburban city council resolutions
protesting the unfairness of the current property tax
system and requesting legislative action on a flat tax
proposal. Bob Renner will be responsible for arranging
this effort.
6) Testimony at the Capitol - Testimony will be provided by
elected officials. Although important to the legislative
process, testimony has provided little public relations
value in the past. Local elected officals, assisted by
city managers as necessary, will be responsible for this
item.
7) Cable Television Programming - A much more concerted
effort shall be placed on using public access cable to get
our message out to suburban viewers. City staff should be
able to assist in the technical aspects of cable
programming.
8) Videocassette Programs - An effort will be made to produce
a ten-minute video cassette explaining the property tax
story. This cassette will be used on cable television
programs, at city council meetings and sent to legislators
on the Tax Committee. The deadline for this project is
January 1991.
9) Legislative Meetings - Our regional legislative meetings
will continue to be held once per year. Local press will
be invited to attend.
10) Letter and Telephone Calls to Legislators - A grassroot
program of increasing the number of constituent letters
and telephone calls to legislators should be explored.
- 2 -
11) Capitol Events'JPress Conferences - Effort should be
expended to organize a 15 -Mayor Press Conference at the
Capitol during the 1991 legislative session extolling the
virtues of a flat tax rate as being critical of the
current inequitable system of property taxation.
12) Polling Surveys - There is some interest in reading the
pulse of the suburban resident as it relates to property
taxes. Results of the poll would be used as a newspeg.
Discussions with Bill Morris of Decision Resources will be
held to determine the practicality of a poll.
13) Legislative Report Card/Session Wrap Un - A more
aggressive posture is recommended. Printing and
distributing roll call votes of MLC legislators on tax
issues may be helpful.
14) Property Tax Booklet - A simple, illustrated brochure that
compares outstate with metro property taxes should be
developed. Bob Renner is responsible for this 1990
legislative interim project.
15) Legislative Survey - A pre-election questionnaire should
be developed and sent to each MLC legislator during the
summer of 1990. This survey would ask pertinent questions
regarding their position on property taxes. Results of
the questionnaire could be published in your city
newsletter.
16) Editor Board Meetings - The MLC should continue to meet
with the Editorial Board of the suburban press and the
Minneapolis and St. Paul newspapers.
The question of whether a professional public relations firm
should be retained to assist in coordinating the activities
listed above was not decided by the Committee. The Committee
felt that its first objective was to develop a plan. How to
implement this plan will be decided at a future time.
rgrq.dd6
- 3 -
WILLIAM F. MESSERLI
ROSS E. KRAMER
JOHN E. DRAWZ
TOM TOGAS
GLENN E. PURDUE
DAVID R. KRACUM
MARK S. LARSON
TIMOTHY J. BAUER
REBECCA H. FREDERICK
ROBERT G. RENNER,JR.
SANDRA L.NEREN
RANDOLPH W. MORRIS
CHRISTOPHER B. HUNT
JAMES C. WICKA
MESSERLI & KRAMER
ATTORNEYS AT LAW
1500 NORTHLAND PLAZA BUILDING
3800 WEST BOTH STREET
MINNEAPOLIS, MINNESOTA 55431-4409
(612) 893-6650
FACSIMILE (612) 893-6755
PROPOSAL TO RENEW CONTRACT
WITH THE
MUNICIPAL LEGISLATIVE COMMISSION
A
I- j -
PAUL A. SORTLAND
JOSEPH B. NIERENSERG
WILLIAM C. HICKS
DAVID D. BEAUDOIN
WILLIAM M. HABICHT
PAUL W. ANDERSON
WILLIAM D. TURKULA
CARLA J. BUTZ
ANN M. SETNES
JOHN F. APITZ
DAVID C. ROLAND
MARK J. GEROEN
CAROL A. BARTHOLOMEW
Messerli & Kramer (the Firm) would be pleased to continue its
legislative representation for the Municipal Legislative
Commission (MLC). The Firm's basic approach and methodology will
remain the same unless the MLC requests a different approach or
methodology. The principal attorney responsible to the MLC will
continue to be Robert G. Renner, Jr.
The Firm's proposal to renew its contract with the MLC is
separated into two time frames:
* The 1990 Legislative Session (January 1, 1990
through April 30, 1990)
* The 1990 Interim (May 1, 1990, through December 31,
1990)
Our fee for professional services is based on the different
amounts of time we estimate each of these two time frames will
require. It also takes into consideration the MLC's financial
condition for 1990. The true value of fees for interim services
would be approximately twice the amount stated in this contract.
Compensation for professional services during the period of
January 1, 1990, through April 31, 1990, shall be based on four
monthly retainer installments of $12,500. The Firm will bill all
services performed during this four-month period at $100 per
hour.
Compensation for professional services during the period May 1,
1990, through December 31, 1990, shall be based on eight monthly
retainer installments of $4,375. The Firm will bill all services
performed during this eight-month period at $100 per hour. A
summary of proposed fees for professional services is attached as
Appendix A.
In addition, during the 12 -month contract period, the Firm shall
be reimbursed for all out-of-pocket costs and expenses, not to
exceed $1,000 per month without prior approval.
11,
The Firm outlined its policies regarding conflicts of interest in
its initial proposal dated July 21, 1986. It is again attached
to this proposal as Appendix B. In addition, the Firm includes
the following two paragraphs as an addendum to its conflict of
interest policy.
The Firm has regularly appeared before municipalities on
behalf of private clients of the Firm. The Firm will
continue to appear before municipal bodies and agencies
who are members of the Municipal Legislative Commission
on behalf of private clients. We undertake
representation of the Municipal Legislative Commission
with the understanding that continued appearances before
municipalities who are members of the Municipal
Legislative Commission do not present a conflict of
interest.
The Firm is active in representing several other clients
before the Minnesota Legislature, state agencies and
metropolitan agencies. Should a situation arise where
our representation of another client conflict with our
representation of the Municipal Legislative Commission,
we will contact you immediately. We will then meet with
you and the other concerned client to explain the nature
of the conflict. Should it be impossible to resolve the
conflict to the satisfaction of all parties, we may be
required under the Code of Professional Responsibility
to withdraw from representation on the conflicting
issue. However, we would be able to continue to
undertake representation of the Municipal Legislative
Commission and other clients on all other issues.
Signed on behalf of the
MUNICIPAL LEGISLATIVE COMMISSION
Signed on behalf of
MESSERLI & KRAMER
Date:
Date:
I- 1
APPENDIX A
Dates Term~ Per Month
Total
January 11 1990 -April 30, 1990 4 months $12,500 $50,000
May 11 1990 -December 31, 1990 8 months $4,375 $35,000
TOTAL 12 -MONTH CONTRACT* $85,000
*Plus out-of-pocket costs and expenses not to exceed $1,000 per
month without prior approval.
APPENDIX B
MESSERLI & KRAMER
CONFLICT OF INTEREST POLICY
Every attempt to identify any potential conflict of interest with
an existing client will be closely examined prior to Messerli &
Kramer's employment by any new client. This process will include
a full discussion and disclosure of the issues with existing
clients. If any significant conflict becomes apparent that
cannot be resolved at this stage, the Firm will decline the new
— -representation absent client consent.
If a conflict of interest arises between two or more existing
clients, the following guidelines will apply:
i
(a) An attempt will be made to resolve or compromise the
conflict between the clients. A compromise must be with
the consent of any affected client.
(b) If any client elects to withdraw the issue from their
- - lobbying effort, the conflict of interest will be
resolved.
(c) If the conflict is not removed by client withdrawal from
the issue or compromise of conflicting points of view,
Messerli & Kramer will withdraw from representation of
any client on that particular issue. The client will
.:+i�tT-`^,w SAT'+ -a—.; ... aa.si-: M'tr •nsr..►hw.�+e «a;r+'+��?"'� ^
-2-
r
• r
be responsible for making their own arrangements for
representation on that issue. Messerli & Kramer will
renegotiate any retainer or contract agreement with any
client as•necessary.
If a conflict of interest continues to arise on particular issues
or between the same clients, Messerli & Kramer will evaluate the
situation and cease representation as necessary to eliminate the
- conflict of interest.
T INCREA MAN
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1
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fROJECTION Of HENNEPIN COUNTY MEND.
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Table of Contents
The TIF Concept
Attraction for Cities and Authorities
Problems Must be Corrected Now
Current Trends
TIF Has Strayed Far From Original Purpose
TIF in the Suburbs
Questionable Use of TIF - Some Examples
Excessive Duration of TIF Districts
Pooling and Expansion of TIF Districts
Administrative Cost Reimbursement
Recapturing Tax Increment
Minneapolis' Proposed 1990 Refunding
TIF and Fiscal Disparities - Two Programs at Cross Purposes
Recommendations
1
1
27
2
3
3
4
5
5
5
5
6
7
8
z-�
I P -
TIF Concept
TIF was orginally intended as a financing tool to combat severe blight in areas that wouldn't
be redeveloped "but for" the availability of government subsidies. As it has evolved, however,
TIF is no longer the special exception. It has been used by a growing number of jurisdictions
with increasing frequency, often for purposes unrelated to the original intent of the program.
The TIF concept typically works as follows:
• Public assistance is provided by a city or redevelopment authority to a developer for site
acquisition and/or improvements preparatory to development.
• The cost of this assistance (usually financed through the sale of bonds) is repaid from "tax
increments" occurring after development has begun. The tax increment is the difference
between the property taxes that are collected before the TIF district is certified and those
that are collected afterward. It includes inflation as well as the added value from improve-
ments.
• Increases in net tax capacity during the TIF district's life are "captured" by the district and
are unavailable to local taxing jurisdictions until the district is decertified. Districts created
after 1979 can last up to 25 years for housing and redevelopment or 10 years for economic
development. Pre -1979 districts may be continued until 2002, or until 2009 if new bonds
are issued before April 1990.
• Before authorizing any type of TIF district, cities are required to determine that the pro-
posed development or redevelopment, "would not reasonably be expected to occur solely
through private investment within the reasonably forseeable future and therefore the use
of tax increment financing is necessary." (The "but for" test.)
Attraction for Cities and Authorities
The rapid escalation in the use of TIF is understandable in light of the characteristics of the
program and the environment in which it is used:
• There is a "self -awarded matching grant" effect inherent in TIF. Freezing the value in a
TIF district obligates all county taxpayers within and outside of the city containing the
district to pay the subsidy through higher property taxes. It also obligates state revenue
because state aid formulas are based on local tax capacity which excludes the captured
value in TIF districts. Typically, the majority of the cost of tax increment subsidy is borne
by state, county and school district taxpayers who have no control over the decision to use
TIF.
• The public assistance that can • be provided under TIF is attractive to developers.
Understandably, developers shop around for the best deals, spurring intercity competition
and unnecessary subsidization.
• Since TIF commitments are outside of the budget process, cities do not have to weigh the
costs against competing priorities. TIF costs are largely hidden, pushed into the future, and
justified by the assumption that they will yield net growth.
• Cities have found that they can use TIF to control the timing and shape of development --
often on choice vacant land.
• Cities have found many creative ways to maximize their draw from successful TIF districts
that generate surplus increment. They have an economic incentive to extend these districts
as long as possible and use the surplus revenues to subsidize less successful districts or to
accomplish other city purposes.
Problems Must be Corrected Now
• TIF has proven to be an effective tool for redevelopment, but its attractiveness to devel-
opers and cities in an environment of competition among cities has lead to out -of -control
growth.
• TIF growth is eroding the tax base. The consequences -- higher tax rates for existing
properties,. higher state taxes to finance the resulting increased intergovernmental aid pay-
ments, and reductions in important public services -- may`have a dampening effect on eco-
nomic development that will far outweigh any stimulus provided by real estate subsidies.
• Legislation in the last two sessions represents a modest step in the right direction, but fewer
than half of problems discussed in the Legislative Auditor's Report of 1986 have been ad-
dressed.
Current Trends
If the current pattern of growth in the use
of TIF is allowed to continue, all citizens
of Minnesota will pay a rapidly increasing
and unfair cost for subsidies that often are
not in the public interest. Counties and
school districts will increasingly be unable
to meet service needs as the growth in their
tax capacity is eroded.
• The dollars received by TIF districts in
Hennepin County have grown an aver-
age of 25% per year since 1982.
• On the present growth curve, annual
TIF collections in Hennepin County
will increase from $96 million in 1989 to
$180 million by 1994, and will rise to
$350 million by the year 2000.
• If the present trend continues, cumula-
tive tax increment dollars (the sum of
all tax increments cumulative in
Hennepin County) will reach nearly $2
billion by the year 2000.
TAX INCREhOW DOLLARS PAYABLE PER YEAR
PROJECTION OF CURRENT HENNEPIN COUNTY TREND
D
0 Boo
L
L 450
R 400
f 350
1 300
N 250
Y 200
I
L 150
100
0 50
N 0
S
1976 1980 1154 1988 1912 1116 2000
YEAR
C[JYZJLATM TAX INCREMEW DOLLARS PAYABLE
PROJECTION OF HENNEPIN COUNTY TREND
0
0 2.0
L
L
A
R 1.5
3
�
0.5
1
0
S 0.0
1971 1100 1184 1198 1112 1116 2000
YEAR
I
A rapidly growing percentage of the total
tax base in Hennepin County is being cap-
tured for use in real estate subsidies and for
other city purposes by individual cities with
no accountability to the broader county
electorate.
• The percentage of Hennepin County's
tax base captured by TIF districts has
grown from 1 percent in 1980 to 9 per-
cent in 1990.
• About $94 million of Hennepin Coun-
ty's $1 billion tax base will be captured
by TIF districts in 1990.
• If the present trend continues, 16 per-
cent of the County's total tax base will
be captured by the year 2000.
TIF Has Strayed Far From Original Purpose
PERCENT OF TAX BASE IN E ENNNEPIN COUNTY
CAPTURED BY TAX INCREMENT DISTRICTS
PROJECTION OF HENNEPIN COUNTY TREND
20
to
is
P14
RIZ
E10
M s
T
4
2
0
19791"2 159310" 1"119141907 2000
YEAR
• Liberalization in 1979 to permit economic development districts with no blight test spawned
intercity competition for subsidized development of choice, vacant suburban land.
• TIF has been used by cities to affect the location, timing, and design of new development,
with little regard for whether it contributes to net regional growth.
• Several studies have concluded that, while TIF may influence a developer's choice of lo-
cation, it rarely results in new economic activity that would not have occurred somewhere
else in the region.
• Economists are in general agreement that subsidizing real estate development is not a cost
effective means to stimulate economic development.
TIF in the Suburbs
• There was extremely rapid growth in
suburban tax increment collections
from 1985 to 1989 (average increase of
37% per year).
• TIF is frequently used by suburban
cities for infrastructure improvements
normally financed through special as-
sessments or gasoline taxes.
• In addition to housing and redevelop-
ment projects, uses of TIF sometimes
include facilities for social, recreational,
or conference purposes, parks, and
parking structures.
3
TAX INCREUMM DOLLARS PAYABLE PER YEAR
MINNEAPOLIS VERSUS SUBURBS
0 55
� 50
A 45
R 40
S 35
N 30
25
20
�
15
1 10
0 5
N
a 0
77 72 51 53 85 e7 50
YEAR
1—;�
Questionable Use of TIF - Some Examples
• St. Thomas College (Minneapolis) - Is it appropropriate to use tax increment to acquire a
square block near downtown as the campus for St. Thomas College? Bond of $8.8 million
is to be issued, to be financed by excess tax increment from Nieman Marcus. Colleges are
not subject to property tax on educational facilities.
•
Chanhassen - Were the best interests of Hennepin County taxpayers served when the city
of Chanhassen enlarged its development district in Hennepin County to include areas in
Carver County? By this action, TIF collections of $1.2 million were expended for develop-
ment in Carver County, adding tax base in another school district and county.
• Centennial Lakes (Edina) - The $58 million bond issued for redevelopment of the Hedberg
gravel pit includes $8.7 million for land acquisition for park and right-of-way and $2 million
for HRA payment of park dedication fees. Is public subsidy to this degree reasonable and
necessary?
• Plymouth - The city is issuing $50 million of bonds over a seven-year period to finance
construction of city, county and state roads that are needed to accommodate the demands
placed on the roadway system by the extensive development expected to occur in the area
by 1999.
• Calhoun Beach Partnership (Minneapolis) - As part of a settlement of a zoning dispute, the
city proposes to pay $3.1 million in tax increment to the developer to build a '12 -story
high-rise instead of the proposed 24 -story structure. Is this an appropriate use of TIF?
• City Community Center (Chaska) - The City of Chaska recently used tax increment to
construct a $8.2 million community center. The center consists of a multi-purpose com-
munity room, a swimming pool complex, a gymnasium, an ice skating arena, racquetball
courts, a wet and dry craft area, a weight and conditioning room, and a jogging track.
Excess tax increment from an existing tax increment district will fund the bond issue.
• Carlton Dinner Theatre (Bloomington) - In 1988, the city acquired a 15.5 acre site adjacent
to the Mega Mall and created a TIF district. An appendix to the TIF plan indicates that
the site is a prime candidate for redevelopment to a high intensity office or hotel use in the
near future.
4
Excessive Duration of TIF Districts
I- a
• The limit of 25 years for new redevelopment districts is excessive. Most other states limit
such districts to 20 years.
• Some pre -1979 districts may have a maximum legal life of 38 years. Property will again be
ready for redevelopment by the time it is released to. the general tax base. The pre -1979
TIF districts in Minneapolis receive tax increments in excess of S42 million per year.
• A very large number of taxpayers will not live long enough to enjoy the tax benefits ex-
pected to accrue from the TIF projects that they subsidized.
Pooling and Expansion of TIF Districts
• The ability of cities to pool TIF districts encourages them to prolong successful districts.
Surplus in stronger districts is used to pay deficits in weaker ones.
• In 1983, Minneapolis transferred $10,500,000 in interest earnings from the City Center
Project Fund to the 'development account of the Minneapolis Community Development
Agency for use in other areas instead of spending it in the City Center district or for early
retirement of the bonds.
• In 1984, Minneapolis refunded and pooled its TIF districts, committing to terminate
pre -1979 districts by 2002 and to share 50% of excess increments with the County and the
School District.
• The proposed 1990 refunding (Minneapolis Common Project) extends the districts to 2009
and repeals the sharing of excess increments. City staff calculate that $421 million of tax
increment will be gained by the MCDA from these changes.
• The Common Project would expand the project areas in which increments may be expended
to comprise all existing project areas and districts.
Administrative Cost Reimbursement
• Current law seems to encourage cities to continue TIF districts in order to recover re-
imbursement for administrative overhead.
+ The City of Minneapolis charges administrative cost of $6 to S7 million per year for. all
districts. Significant amounts also occurred in Hennepin County suburbs, in some cases
where projects have been substantially completed.
Recapturing Tax Increment
• Cities can recapture tax increment by repayment of loans, grants, service fees, interest rate
reduction programs, equity programs, etc.
• Cities receive the recaptured amounts without restriction and may use them exclusively for
city purposes.
5
Minneapolis' Proposed 1990 Refunding
The City of Minneapolis plans to refund all of its TIF districts with capital appreciation bonds,
using the short-term reduction in debt service to fund a 20 year neighborhood revitalization
program The city does have significant social service and physical redevelopment needs, but
the planned diversion of millions of dollars in tax increment from the jurisdictions responsible
for education and human services is not consistent with the goal of neighborhood revitalization.
• The proposed debt schedule postpones
interest and principal payments, making
significant TIF revenues available for
neighborhood revitalization projects
during the years 1990 to 2000.
• Total interest payments for existing TIF
projects will be increased by $92
million.
• Because of state aid formulas and con-
tinued diversion of property tax from
other taxing jurisdictions, Minneapolis
is, in effect, proposing to award itself a
very large grant from non -Minneapolis
taxpayers. Other cities will be tempted
to follow suit.
• Assuming 5% annual inflation,
Minneapolis' TIF collections under this
plan would increase from $50 million in
1989 to $160 million in 2009, even with
no additional TIF projects beyond
those already approved.
111IN11LPOUN DEN SUM — 7W Ii;Zr=DM ONLY
1104 VERSUS 1990 REFUNDING PROGRAMS
0
0 40
L
L
A
S 30
I
N 20
Y
I
L 10
L
I
0
S 0 {r,
—�—T
1lS5 19110 1225 2000 2006 2010
1260 [Ei1W01M0
YEAR
Total Principal and Interest (in Millions):
Principal Interest
1984 Refunding $141 $119
1990 Refunding $126 $211
PROJECTED TAX INCREMENT DOLLARS — MINNEAPOLIS
ASSUMEi --COMMON PROJECT" 8� INFLATION. ANO
NO NEW PROJECTS OTHER THAN TAOSE PRESENTLY APPROVED
200
A ISO
►�����/
►**4
►�����1
►�**4
L 50
1989 2000
YEAR
6
I—P
TIF and Fiscal Disparities - Two Programs at Cross Purposes
• Whereas the Fiscal Disparities program seeks to restrain intergovernmental competition for
commercial and industrial development by redistributing the proceeds of growth, the TIF
program provides cities with the ability to attract development for themselves through
public subsidies.
• Once again, some counties and school districts are big losers. They are in the intolerable
position of having to make Fiscal Disparities contributions on growth that is locked up in
TIF districts. This is patently unfair to taxpayers.
7
-L Oa'.
Recommendations
1. The "but for" test should be tightened.
• The test should meet the economic development needs of a geographic area larger than
the city, itself.
• The county, the school district, and perhaps the State of Minnesota should make
findings that the "but for" test is met.
2. There should be a capping mechanism to limit the percentage of tax capacity which can be
captured by tax increment districts within a city.
• The neighboring states of Wisconsin, North Dakota, and South Dakota all limit the
percentage of tax base that a city can capture in TIF districts to 5 percent. Several
cities in Hennepin County have captured more than 10 percent.
3. New economic development districts should be permitted only in areas of severe ecokiomic dis-
tress and limited to job creating industrial facilities.
4. The duration of all redevelopment districts, pre -1979 as well as post -1979, should be reduced,
and the window of opportunity to issue bonds on pre -1979 districts should be closed.
5. More controls are needed over the generation and use of surplus tax increment from successful
districts.
• The prohibition on expanding TIF districts after five years from the date of creation
should apply to project areas, as well. Currently excess tax increment may be spent
outside the TIF district simply by enlarging the project area.
• All projects in TIF districts should be completed within five years after districts are
created. Thereafter, tax increment should be collected only to pay for debt service and
other project costs incurred during the first five years of the project's life.
• Pre -1979 districts should not be permitted to refund bonds after December 31, 1989,
or issue new bonds, pledge increment, or incur new project costs after March 1, 1990.
Thereafter, tax increment should be collected only to pay project costs, pay debt or
escrow for debt. Any excess should be distributed to the major taxing districts.
6. Counties and school districts should be given a substantive role in the approval of new districts.
sk The county and school district should have the authority to veto TIF districts which
they deem not to be in the best interest of the entire community.
• Alternatively, the county or school district portion of the tax levy cannot be captured
unless the respective taxing districts approve.
7. Administrative cost reimbursement from TIF sources should be reviewed for abuse or potential
abuse.
• Administrative costs should be recovered only during the planning and implementation
stages of new projects, during the fust five years of the TIF district's life.
8. Counties should be reimbursed for their TIF administrative costs for all TIF districts, not just
those created after May 1, 1988 as presently required..
9. Cities which recapture tax increment should share the recovery with the major taxing districts
in proportion to the districts' respective tax levies.
10. Counties and school districts should 'not bear the burden of fiscal disparity contributions on
growth in tax increment districts.
• New TIF districts should receive tax increment net after reduction for fiscal disparity
contributions.
11. Existing TIF districts should receive reduced tax increment to the extent that the tax incre-
ment and fiscal disparity contribution of the district exceeds 100 percent of the property'tax
payable on parcels in the district.
12. Minnesota Statutes sections 469.043 and 469.181 and similar laws which permit cities to abate
or defer property tax without concurrence of the county, school district and the commissioner
of revenue should be repealed.
13. Tax increment should not be used to finance construction or or renovation of city -owned fa-
cilities used for social, recreational, or conference purposes.
9
I-3
MINUTES OF
THE ANNUAL MEETING OF
THE SUBURBAN RATE AUTHORITY
January 17, 1990
Pursuant to due call and notice thereof, the annual meeting
of the Suburban Rate Authority was held at the Ambassador Motor
Hotel in the City of St. Louis Park, Minnesota, on Wednesday,
January 17, 1990, commencing at 6:30 p.m.
1. CALL TO ORDER: The meeting was called to order by the
Chairman, Robert DeGhetto.
2. ROLL CALL:
Bloomington
Brooklyn Park
Champlin
Circle Pines
Columbia Heights
Deephaven
Edina
Fridley
Hastings
Minnetonka
Minnetonka
Plymouth
Roseville
St. Louis Park
Savage
Shakopee
West St. Paul
John G. Pidgeon
Graydon R. Boeck
William Simpkins
James Keinath
Edward Carlson
William D. Schoell
John C. Wallin
John Flora
David M. Osberg
Robert DeGhetto
David J. Sonneberg
Frederick Moore
Steve Gatlin
Don Rainbow
Mark McNeil
Gloria Vierling
William Craig
Also present were SRA general counsel, Glenn Purdue; Chief Admin-
istrator of the MWCC, Gordon Voss; David J. Kennedy; and James M.
Strommen.
3. APPROVAL OF MINUTES: The minutes of the October 18,
1989 meeting were presented for approval. It was moved by
Mr. Keinath and seconded by Ms. Vierling, that the Minutes be
approved. The motion carried unanimously.
4. OFFICER'S REPORTS: Mr. Wallin presented the Treasur-
er's Report, a copy of which is attached to these- Minutes.
Mr. Boeck moved that the Treasurer's Report be accepted, and
Mr. Schoell seconded the motion. The motion carried unanimously.
Chairman DeGhetto reported that he appeared before the
Crystal City Council to urge that Crystal rejoin the SRA. He
reported that the Council is favorable to the idea but that it
would condition its request to rejoin on determining the source
of funds for the annual assessments. No formal action was taken.
1
13
5. CLAIMS: Mr. Wallin circulated bills from LeFevere,
Lefler, Kennedy, O'Brien & Drawz for services through October 31,
1989, Messerli & Kramer for services from November 1 through
December 31, 1989, including the legislative retainer, and Holmes
& Graven for services relating to telephone cases. Mr. Wallin
also presented a claim by George M. Hanson Co. for the 1988
audit. Ms. Vierling moved approval of the claims. Mr. McNeil
seconded the motion, which passed unanimously.
Mr. Wallin recommended that the George M. Hanson Co. be
engaged to prepare the 1989 audit under the terms of a*letter
which he distributed. He also distributed the 1988 audit. A
copy of that audit is forwarded to members who were not in
attendance at the meeting.
6. APPEARANCE BY MWCC: The Chair called upon Gloria
Vierling to introduce Gordon Voss, Chief Administrator of the
Metropolitan Waste Control Commission. Mr. Voss had been given a
series of six questions. He provided a summary written response
to each of the questions. The questions and his response are
appended to these minutes. Mr. Purdue circulated a letter dated
January 12, 1990 from the City of Maplewood. He asked Mr. Voss
to respond to a suggestion that the MWCC be regulated by the MPUC
or some other outside agency.
Mr. Voss felt outside regulation was unnecessary. He made
the point that a great deal. of the MWCC facilities were built
with the assistance of Federal money, often 90 percent funding.
He pointed out that Federal funding was rapidly diminishing, that
additional capital investment would be painful and that it will
have to be borne_ primarily by the users directly. Mr. Voss
indicated a desire to spend more time with members during the
budgeting process. This year he will commence budgeting meetings
in March. He offered to meet with SRA in March to start that
round of meetings. He then addressed each of the questions and
answers in the attachment. Mr. Voss stated that a principal
capital issue in the years ahead would be the mandates of EPA
Region 5. He urged members to review the demands placed on MWCC
and to assist MWCC in its responses.
Chairman DeGhetto thanked Mr. Voss and stated that SRA would
like to support MWCC regarding the demands made by EPA.
7. NEW BUSINESS:
a. Election of Officers: The Chair called upon Grady
Boeck, who presented the recommendation of the Executive Commit-
tee, serving as a nominating committee. Mr. Boeck nominated the
following officers and Executive Committee members:
2
Chairman
Vice Chairman
Secretary/Treasurer
Executive Committee
Executive Committee
Executive Committee
Executive Committee
Robert DeGhetto, Minnetonka
John Pidgeon, Bloomington
John Wallin, Edina
William Schoell, Deephaven
Grady Boeck, Brooklyn Park
Gloria Vierling, Shakopee
William Craig, West St. Paul
1_3
The Chairman announced that the floor was open for additional
nominations. There being none, Mr. Moore moved that nominations
be closed and that a unanimous ballot be cast. Mr. Carlson
seconded the motion, which passed unanimously. The Chair de-
clared the officers and Executive Committee members were elected.
b. Selection of 1990 Counsel: The Chair called upon
Gloria Vierling for a report by the Executive Committee.
Ms. Vierling reported that Mr. Purdue had advised the Executive
Committee that he felt it was necessary that he withdraw as
general counsel to the SRA because his new law firm provides
services to Northwestern Bell and Minnegasco. She further
reported that it was Mr. Purdue's recommendation that SRA retain
the firm of Holmes & Graven through David J. Kennedy and James M-.
Strommen as SRA general counsel and that Holmes & Graven handle
matters concerning Northwestern Bell, Minnegasco, and the MWCC.
Ms. Vierling reported that the rates requested for rate regula-
tion and lobbying work are $125 per hour and for general counsel
work•are $100 per hour. General counsel work will not include an
additional charge for normal staff time. She also reported it
was the Executive Committee's recommendation that Mr. Purdue
continue to handle Northern States Power matters and that Bob
Renner continue to handle the lobbying matters. After discus-
sion, Mr. Boeck moved the recommendation of the Executive Commit-
tee be approved, and Mr. Schoell seconded the motion, which
passed unanimously.
8. OLD BUSINESS:
a. Northwestern Bell EAS: Mr. Strommen provided a
report on telephone matters pending before the MPUC. He distrib-
uted a memorandum, a copy of which is attached. It was moved by
Mr. Keinath and seconded by Mr. Flora that SRA not sponsor a
witness as to the incentive rate regulation filing, but instead
monitor the case. He further moved that SRA authorize a petition
to MPUC, if necessary, to request an MPUC study of the tier
system. The motion passed unanimously.
b. NSP Rate Case: Mr. Purdue provided a memorandum
concerning the status of the NSP rate case, which is attached to
these minutes. Mr. Boeck moved that SRA ratify the petition for
intervention and that consultation be had with the Executive
Committee as to positions to be taken and authorizing the Execu-
tive Committee to determine those positions. In addition to the
recommendations made in the memorandum, counsel is to review the
3
=-3
Large Pumping Class rate increase. Mr. Flora seconded the
motion, which passed unanimously.
9. ADJOURNMENT: The chairman reported that there was no
other business to come before the meeting. Mr. McNeil moved that
the meeting be adjourned, and Mr. Moore seconded the motion. It
carried unanimously.
Secretary
Attest:
Chairman
Attachments:
Treasurer's Report
Questions and Response of MWCC
Report on telephone matters
Status report concerning NSP rate case
5990MI01.GEP
4
z-3
$41,964.91
SUBURBAN RATE AUTHORITY
ANALYSIS OF CHANGE IN CASH BALANCE
SAINT LOUIS PARK, MINNESOTA
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1989
Balance at
January 1 1989
$83,288.26
Additions
Interest
income
$ 5,140.75
Special Assessments - 1989 - See Schedule
attached for details
51,975.00
57,115.75
140,404.01
Deductions:
_ Accounts_payable:
LeFevere, Lefler, Kennedy, O'Brien
and Drawz
$33,819.16
Messerli
and Kramer
8,145.75
George M.
Hansen Company - Audit
650.00
Dinner -
guests
146.60
42,761.51
Balance at December 31, 1989
$97,642.50
Note A:
The breakdown of legal costs are as follows:
General
$ 9,186.62
Northwestern Bell EAS
17,093:92
Board and Exec
98.01
SRA Uniform Elec Franchise
42.50
NSP
460.75
CSO - Messerli
8,145.75
CSO - LeFevere
6,937.36
$41,964.91
1-3
SUBURBAN RATE AUTHORITY
STATUS OF ASSESSMENTS
RECEIVABLE
SAINT LOUIS PARR, MINNESOTA
As of December
31, 1989
BALANCE
VOTES
ASSESSMENT
PAID
DUE
$ 0.00
Bloomington
17
$ 5950.00
$ 5950.00
Brooklyn Park
9
3150.00
3150.00
0.00
Burnsville
8
2800.00
2800.00
0.00
Champlin
2
700.00
700.00
0.00
Circle Pines
1
350.00
350.00
0.00
Columbia Heights
5
1750.00
1750.00
0.00
Deephaven
1
350.00
350.00
0.00
Eden Prairie
4
1400.00
1400.00
0.00•
Edina
10
3500.00
3500.00
0.00
Fridley
7
2450.00
2450.00
0.00
Greenwood
1
350.00
350.00
0.00
Hastings
3
1050.00
1050.00
0.00
Hopkins
4
1400.00
1400.00
0.00
Lauderdale
1
350.00
350.00
0.00
Maple Plain
1
350.00
350.00
0.00
Maplewood
6
2100.00
2100.00
0.00
Minnetonka
8
2800.00
2800.00J,0.00
Minnetrista
1
350.00
175.00
„_
75.00
New Brighton
5
1750.00
1750.00
0.00
North St. Paul
3
1050.00
1050.00
0.00
Orono
2
700.00
700.00
0.00
Osseo
1
350.00
350.00
0.00
Plymouth
7
2450.00
2450.00
0.00
Richfield
8
2800.00
2800.00
0.00
Robbinsdale
3
1050.00
1050.00
0.00
Roseville
8
2800.00
2800.00
0.00
Shakopee
2
700.00
700.00
0.00
Shoreview
4
1400.00
1400.00
0.00
Savage
2
700.00
700.00
0.00
Spring Park
1
350.00
350.00
0.00
St. Louis Park
9
3150.00
3150.00
0.00
Wayzata
1
350.00
350.00
0.00
West St. Paul
4
1400.00
1400.00
0.00
Woodland
1
350.00
0.00
350.00
150
$ 52500.00
$ 51975.00
$ 525.00
QUESTIONS FOR R METROPOLITAN WASTE CONTROL COMMISSION
TO BE ANSWERED AT SUBURBAN RATE AUTHORITY MEETING
ON JANUARY 17, 1990
The following questions were raised by Suburban Rate Author-
ity members:
1. What is the status of a program of metering flows by
city? What meters are in place, how are they maintained, and
what tests for accuracy are employed? What corroboration of data
derived from meter readings is available or used by MWCC in
determining flows by city?
2. What effect on MWCC rates has the Combined Sewer
Separation Program caused? What effect'is projected for the
future, based upon the CSSP of St. Paul, Minneapolis and South
St. Paul? For the purpose of this answer, we seek to know rates
"with and without" CSSP. Specify costs of CSSP and offsets.
3. Discuss in detail the history and current method of
reconveying interceptors to cities. Are any changes anticipated?
4. What is MWCC's position on the repair of undeveloped
land.damaged by the contractor along the CAB interceptor in the
City of Champlin. What lawsuits are now pending, and why have
they not been resolved? Why is it necessary for landowners to
sue to obtain redress for compaction problems, especially those
north of 117th Avenue?
5. What municipal input is there., in a real sense, in the
MWCC annual capital budget? To what extent have municipalities
taken advantage of the opportunities available for input? What
A�U�p
can be done to improve the process? G'
6. Do rates include a charge for depreciation? How is
depreciation handled?
t Metropolitan Waste Control Commission-
Mears Park Centre, 230 East Fifth Street, St. Paul, Minnesota 55101
SUMMARY RESPONSE TO QUESTIONS 612 222-8423
FROM THE SUBURBAN RATE AUTHORITY
JANUARY 17, 1990
WASTEWATER FLOW MEASUREMENT
When the Metropolitan Waste Control Commission came into
existence it continued the method of wastewater flow
measurement designed by the communities and existing sewer
districts. This system measures each communities wastewater
flow volume and allocates costs based on the communities
portion of the total metro system flow.
The system has 178 meters placed at 162 strategic locations
(treatment works and community boundaries) in the system.
Each meter is serviced weekly and calibrated at least
quarterly. The MWCC is committed to a program of continuous
improvement of this system to assure that the best "state of
the art" metering and telemetry equipment is used.
Of the 105 communities in the system, 93 are continuously
monitored, 12 communities wastewater flow volume is too small
to measure on a continuous basis by our measuring system.
The flows from these 12 communities are estimated. Estimates
are based on lift station information, temporary flow
measuring devices, and sewer use inventory data. Each
community files an annual report indicating the number and
type of sewer connections, public and private water pumped
and sold by quarter and by class of user, together with the
number and type of sewer connections which flow unmetered to
another community. This information is also compared to the
number of Sewer Availability Charges (SAC) per year from the
community.
COMBINED SEWER SEPARATION PROGRAM
Sewer rates result from a cost vs. flow relationship. The
cost of the Combined Sewer Separation Program (CSSP) is
primarily borne by the cities with the Commission responsible
for $37.3 million of capital improvements (Beltline,
Troutbrook and 38th Street Interceptors, etc.). The selected
alternative for the CSSP was based on the least total metro
costs not unlike the least total cost in constructing the CAB
and Lake Ann Interceptor projects.
Equal Opportunity/Affirmative Action Employer
-080O
z-3
PAGE 2
4�
The average annual debt service of the Commission is
estimated to increase $3,727,000 through the sale of bonds to
finance these improvements over a 20 -year period. Based on
the above estimate, the resultant 1990 user cost for these
improvements was increased $2,407,000 which resulted in a
2.4% increase in the budgeted costs ,or about $2 per billed
unit each year. As a result of these improved facilities the
Commission has replaced 50-60 year old combined sewer piping
with new, increased value sanitary sewer and in addition the
Commission will receive about 20% of this investment returned
as the ownership of the old combined sewers is being
reconveyed to the cities.
The above change in- rates was calculated based on no
significant change in wastewater flow resulting from the
CSSP. The objective of the CSSP was to eliminate combined
sewer overflow (CSO) from the receiving body. In doing the
CSSP, .it is our opinion that the wastewater flow collected
for treatment could increase slightly in the preparation
process with increased capture of sanitary sewage and storm
water. The volume collected and treated could decrease a
similar slight amount once the separation would be complete.
The only real reduction in flow during the CSSP was the
removal of lake overflow volume 1987-1988 which was being
paid for by St. Paul and adjoining communities.
Therefore, the rates were increased about 2% to user
communities in funding the construction of improved
metropolitan facilities as part of the CSSP.
RECONVEYANCE/ABANDONMENT OF INTERCEPTORS TO CITIES
In 1988 the Metropolitan Council prepared and adopted the
Water Resource Management Policy Plan. Policy 6 of this plan
requires that interceptors no longer needed to provide
metropolitan sanitary sewer service should be removed from
the Metropolitan Disposal System and either abandoned or
reconveyed to the local units of government with fair
compensation paid to the Commission. Prior to this. time the
Commission had no policy regarding reconveyance of the
Metropolitan Interceptors.
On February 21, 1989 the Commission passed a policy for the
reconveyance of Metropolitan Interceptors. Attached is a
copy of the resolution and Policy as approved by the
Commission, and page 33 and Table 3-1 from the Implementation
T-3
PAGE 3
Plan 1990-2010. The staff is preparing to meet with
communities involved during the next year. No changes to
this policy are anticipated at this time.
CAB INTERCEPTOR
This matter has been the subject of five lawsuits initiated
by land developers and the City of Champlin against the
Commission and Johnson Bros., the contractor on the project.
Four of those five lawsuits have been resolved with the
Commission's insurer paying a considerable amount of money to
the plaintiffs in the cases. The remaining lawsuit,
involving Midwest DCI, remains unsettled despite mediation
and extensive settlement negotiation. The Commission feels
the judicial system is the appropriate place to resolve this
matter where public funds are involved and where there is a
considerable dispute as to the extent of the alleged damages,
responsibility therefore, and the appropriate amount of
compensation, if any.
CAPITAL & OPERATING BUDGETS & INPUT FROM MUNICIPALITIES
Capital Budget - By the time the annual budget is put
together, most of the projects and amounts included in the
budget have already been determined through the
Implementation Plan process. In addition, most of the
projects included in the capital budget are continuations of
projects previously approved. The time to get involved and
have an impact on the capital projects is in the
Implementation Plan phase. Breakfast meetings are held for
input to this plan with Public Hearings at the time of
adoption,- and an amendment process which can be initiated by
the communities. The capital budget's effect on the
operating budget and therefore on rates is long-term. Each
year the MWCC obtains financing for its current year
expenditures through 20 year general obligation: bonds or
Public Finance Authority (PFA) loans. The first debt service
payment on this financing is the following year which is the
first time a project would have an effect on the operating
budget and therefore on the rates.
a I-3
PAGE 4
Operating Budget - This is the budget that establishes the
current year rates. The budget process starts early in the
year for the following years budget. The first time the
public/municipalities sees and can comment on the budget is
at the budget breakfasts held in May. This year's prebudget
breakfast meetings will be held in March. Here the public
needs to make their views known to the Commissioners so that
direction can be given to staff and the budget reworked
before the Public Hearing in June. This is a public process
for adoption with your comments welcome at anytime. Comment
and direction to staff as early in the process as possible
would be helpful.
Both budgets have a substantial amount of fixed costs. . The
MWCC operating budget is broken down into three major
categories. Close to 40% of the budget is for salaries and
benefits. All but about 20 people are covered by collective
bargaining. In order to have a significant affect on the
budget, overtime would have to be cut back and people
eliminated. Another third of the budget is for debt service
payments. These payments are already committed for the year.
Budget changes in this area can only happen through changes
to the capital budget and therefore would be long-term. The
remainder of the budget is for utilities, chemicals,
insurance, material and supplies, contracted services and
other. Here is where the majority of the budget changes can
occur. However, these categories also include a substantial
amount of fixed operating expenses.
For several years the MWCC's held budget breakfast meetings.
Due to the poor attendance at these meetings the MWCC decided
to hold a meeting in each precinct and undertook a more
aggressive approach to solicit participation from the
cities. During the past three years attendance at these
meetings has greatly increased.
To increase opportunities for input from our users, the MWCC
is establishing a General Advisory Committee. This advisory
committee will provide our users with ongoing access to the
Commission. This committee is designed to function, somewhat
similar to the former Sewer Service Advisory Boards that
existed metro -wide before legislation in 1987 did away with
the six service areas to establish one sewer service area.
The committee will focus on the sewer service needs of the
communities of the seven county area and advise the MWCC on
issues referred to it by the MWCC.
40
1-3,
PAGE 5
This committee, to be formed in the spring of 1990, will have
positions for both elected officials and municipal staff from
each MWCC precinct. It will also have four positions for
industry, four for environmental groups, and one for a
representative from the economically disadvantaged. It will
consist of 25 members and a committee Chair appointed by the
MWCC Chair.
DEPRECIATION & RATES
Our rates do not include a charge for depreciation. Instead,
the total cost for capital items purchased through the
operating budget is included in the rates.
I3
ATTACHMENT
INTERCEPTOR RECONVEYANCE/ABANDONMENT
OBJECTIVE A-2(PP)(N-1)
Remove unnecessary interceptor sewers from MDS, as required by Council policy.
PLAN TO ,IMPLEMENT OBJECTIVE A-2
The interceptor sewers listed in Table 3-1 have been replaced by new interceptors or by local
-.'-'trunk sewers and no longer meet the Council's service definition for a metropolitan interceptor.
The Commission recommends that it abandon or reconvey these interceptors to the appropriate
communities as indicated in the table.
The Commission will use Minn. Stats. 473.511 to determine the current value of the interceptors
to be conveyed to communities. The main steps in this process are: 1) recalculate the current
value, 2) calculate a fair value to the downstream community, 3) adjust for depreciation and for
major damage, and 4) deduct the cost of necessary repairs to be made by the Commission in
order to get the final worth. If the interceptor is totally depredated, or repair costs exceed
present worth, the interceptor Is construed as having no present worth. Any repair costs are
the responsibility of the receiving community.
TABLE 3-1
MWCC INTERCEPTORS NO LONGER MEETING
THE DEFINITION OF AN INTERCEPTOR
Interceptor
Community
Located In
Date of MNCC
Ownership
Reason for removing
from Service
1 2
Reccamendation
Reconvey Abando
1. 1 -MH -414
Maplewood
1970
X
X
2. 1 -MN -310
Minneapolis
1970
X
X
3. 1 -MN -330
Minneapolis
1970
X
X
4. 1 -MN -341
I Minneapolis
1970
X
X
(stormwaterrtion)
5. I -MN -303
rminneapolis
1970
X
X
(stormwaterportion)
6. 4 -OS -45
Brooklyn Park
1970
X
X
1 -CL -455
Crystal
1970
- X
X
7. 6 -OR -641
Orono
1970
X
X
B. 1 -SO -436
Shoreview
1970
X
X
9. 1 -LC -421
Little Canada
1970
X
X
10.MS87025-
Eden Prairie
1972
X
X
11.MS87025-
Eden Prairie
1971
X
X
1) Replaced by construction of local trunk sewer.
2) Replaced by construction of a new metropolitan facilitiy.
` Wastewater Treatment and Handling Implementation Plan, 1190-2010
•,
X60.
HOLMES & GRAVEN
CHARTERED
470 Pillsbury Center, Minneapolis, Minnesota 55402
(612)337-9300
MEMORANDUM
TO: SRA Board of Directors
FROM: Holmes & Graven, Chartered
DATE: January 17, 1990
RE: Pending Telephone Matters
The following is an update regarding two U.S. West telephone cases presently before
the Minnesota Public Utilities Commission.
1. U.S West Incentive Regulation Plan.
On October 30, 1989, U.S. West filed a petition with the Commission to be
governed under a new incentive regulation plan ("Plan") for local telephone rates,
as authorized by 1989 legislation, The Plan is an alternative to filing a general
rate case and will be acted upon by the Commission by April 30, 1990 (unless an
extension is granted).
Under the Plan, U.S. West is not asking for a rate increase but rather for
authority to increase rates without a further rate filing by a total of up to 1
1/2% over the next four years. U.S. West seeks authority from the Commission
to earn up to a 12.14% overall rate of return. The "incentive" aspect of the
Plan allows U.S. West to earn above 12.14% if it shares such increased earnings
with the rate payers on a 50/50 basis, (i.e., if it earns 13.14%, 0.5% of of that
would be returned to ratepayers in the form . of rate reduction). It would also
allow U.S. West to file for a rate increase if its overall rate of return falls below
9.14%. The present rate of return authorized by the Commission is 10.64%.
U.S. West is also planning a rural modernization program under the Plan to
replace electro -mechanical switching equipment with state-of-the-art digital
equipment. According to U.S. West, the rural equipment modernization plan
will not affect cost of service to the local metro calling area.
The SRA has intervened and has an opportunity to submit testimony regarding
the Plan by January 30, 1990. The Plan has been supported in principle by
numerous groups. It injects market principles into local telephone rate
structure without the near term risk of higher rates. The metro tier system is
not directly affected by this Plan.
The issue before the Board is whether it wishes to sponsor policy testimony and
Whether it endorses or rejects the Plan or reserves judgment.
S
Z-3
SRA Board of Directors
Page 2
2. Investigation of the Tier System.
The Commission staff is presently finishing a report arising out of SRA
arguments in the extended area of service (EAS) case on whether an
investigation of the Tier System is appropriate. I have been in contact with the
staff supervisor regarding the report. He has, among other things, requested
U.S. West to provide a schedule of rates if the tiers were eliminated altogether.
The staff report will be reviewed by the Commission. After a comment period
the Commission will decide whether the Tier System should be studied, modified,
eliminated or left as is.
If the Commission itself decides not to initiate an investigation or otherwise
modify the Tier System, the SRA would have the option of filing a complaint for
an investigation before the Commission. This complaint would ask for
Department of Public Service sponsored expert analysis using data provided by
U.S. West.
JMP S:gak
TO: SRA Board
FROM: Glenn E. Purdue, SRA Counsel
DATE: January 17, 1989
SUBJECT: 1989 NSP Electric General Rate Increase Filing
BACKGROUND
On November 2, 1989, Northern States Power Company filed a
request with the Minnesota Public Utilities Commission to in-
crease retail electric rates by an overall 10.2 percent. The SRA
has intervened in each previous NSP electric case since the first
case was filed in 1976. At its October meeting, the SRA Board
directed counsel to review the filing for the purpose of advising
the Board as to whether it ought to intervene in the current
case, and, if so, as to the issues for its consideration.
NSP's previous case was filed in 1987. For the first time, a
major rate filing was settled by all of the parties and the
settlement essentially accepted by the Commission. SRA partici-
pated in those settlement meetings and signed the settlement. It
also supported the Municipal Pumpers Group in its efforts.
REQUEST
1. Percentage Increase. Attached is PJZ-1 Schedule 2, page 1
of 1, which shows the overall request according to purchaser
Service Schedule. The overall dollar increase per year requested
is $120,782,000. If granted, this would provide retail electric
revenues for sales within the State of Minnesota to NSP in the
amount of $1,302,946,000, if the sales forecasts are met.
Because the rate case is prospective in nature, the amount of
sales must be forecast. Warmer weather or colder weather than
the forecast basis will change the total revenue: The actual
13
MESSERLI & KRAMER
-
WILLIAMF. MESSERLI
ATTORNEYS AT LAW
PAUL A. SORTLAND
ROSS E. KRAMER
ISOO NORTHLAND PLAZA BUILDING
JOSEPH B. NIERENBERG
JOHN E. DRAWZ
WILLIAM C. HICKS
TOM TOGAS
3800 WEST BOTH STREET
DAVID D. BEAUDOIN
GLENN E. PURDUE
MINNEAPOLIS, MINNESOTA 55431-4409
WILLIAM M. HABICHT
DAVID R. KRACUM
PAUL W. ANDERSON
MARK S. LARSON
(612) 893-6650
WILLIAM D. TURKULA
TIMOTHY J. SAUER
CARLA J. BLITZ
FACSIMILE (612) 893-6755
REBECCA M. FREDERICK
ANN M. SEINES
ROBERT G. RENNER,JR.
JOHN F. APITZ
SANDRA L. NEREN
DAVID C. ROLAND
RANDOLPH W. MORRIS
MARK J• GERGEN
CHRISTOPHER S. HUNT
CAROL A. BARTHOLOMEW
JAMES C. WICKA
M E M O R A N D U M
TO: SRA Board
FROM: Glenn E. Purdue, SRA Counsel
DATE: January 17, 1989
SUBJECT: 1989 NSP Electric General Rate Increase Filing
BACKGROUND
On November 2, 1989, Northern States Power Company filed a
request with the Minnesota Public Utilities Commission to in-
crease retail electric rates by an overall 10.2 percent. The SRA
has intervened in each previous NSP electric case since the first
case was filed in 1976. At its October meeting, the SRA Board
directed counsel to review the filing for the purpose of advising
the Board as to whether it ought to intervene in the current
case, and, if so, as to the issues for its consideration.
NSP's previous case was filed in 1987. For the first time, a
major rate filing was settled by all of the parties and the
settlement essentially accepted by the Commission. SRA partici-
pated in those settlement meetings and signed the settlement. It
also supported the Municipal Pumpers Group in its efforts.
REQUEST
1. Percentage Increase. Attached is PJZ-1 Schedule 2, page 1
of 1, which shows the overall request according to purchaser
Service Schedule. The overall dollar increase per year requested
is $120,782,000. If granted, this would provide retail electric
revenues for sales within the State of Minnesota to NSP in the
amount of $1,302,946,000, if the sales forecasts are met.
Because the rate case is prospective in nature, the amount of
sales must be forecast. Warmer weather or colder weather than
the forecast basis will change the total revenue: The actual
T3
SRA Board
January 17, 1990
Page 2
income deficiency based upon the sales forecast and NSP's rate
base, and at its requested rate of return, is $72,143,000..
Approximately $48,600,000 of the total requested increase will go
to taxes.
While this provides a 10.2 percent average dollar increase in
revenue (and in price), there are distinctions among classes.
The Small Municipal Pumping class will pay a 29.1 percent in-
crease, according to the proposal, and the street lighting -leased
will have no increase in rate.
2. Return on equity. NSP requests a 13.25 percent return on
common equity. It was authorized 11.7 percent in the last case.
It argues that the present rate is among the lowest in the nation
while its performance is among the top in "every relevant catego-
ry." It proposes to tie allowed return to performance.
3. Capital structure. The company proposes debt at 43.5 ,
percent, common equity at 47 percent, and preferred stock at 9.5
percent.
4. Billing Impact. The proposed electric rate increase would
add approximately $40 per year to the bill of an average residen-
tial customer (one who uses 500 kilowatt hours per month). A
small general service customer using 1000 kilowatt hours per
month would see an annual increase of approximately $80. Elec-
tric bills to public authorities will increase by approximately
$1,876,000 per year under the proposal.
5. Rate Base. NSP claims an average test year rate base of
$2,372,746,000. NSP has a new fossil fuel inventory policy,
prepared at SRA urging. I have not yet reviewed it. In a
previous case, SRA took $5 million out of rate base on coal fuel
stockpile.
ISSUES
1. Unusued nuclear fuel amortization. NSP operates three
nuclear reactors. At the end of the useful life of each reactor,
a certain amount of nuclear fuel will remain. NSP currently
charges for the fuel as it is used. It proposes now to amortize
the cost of the unused fuel, spread over the forecast remaining
useful life of the reactors. Approximately $123,000,000, at
present day cost, is involved.
2. Transmission line tower failure. A lattice bridge assembly
on NSP's Manitoba interconnection transmission line has found to
be defective. Repair costs are estimated at $6.5 million over a
I S
SRA Board
January 17, 1990
Page 3
three year period. Both the vendor and the contractor are no
longer in business.
The principal component of the cost is to replace 12,000 damper -
spacers with the line energized. NSP work papers do not disclose
the basis for the replacement decision, nor a reason not to
pursue the vendor, which is apparently still in business.
3. Pathfinder nuclear path amortization. The Pathfinder
nuclear reactor (Sioux Falls, South Dakota) has been shut down
for 20 years. NSP proposes now to decommission and dismantle it.
The decommissioning cost is estimated to be $15.7 million. It
was in commercial operation for 16 months and was shut down in
September, 1967, after gross failure of certain steam separator
assemblies in the reactor vessel. (The plant today operates with
fossil fuel boilers.)
4. Flexible rates. NSP proposes to establish a competitive
service rider applicable to individual, commercial and industrial
customers of at least 500 kilowatt loads. Under the rider, if
NSP determines that there is "effective competition," it can
negotiate demand and energy charges, bounded on the low side by
the company's short run marginal costs plus a small incremental
margin.
RECOMMENDATION
I recommend that the Board ratify intervention in the case.
Counsel should be directed to prepare positions as appropriate as
to the following issues:
Pathfinder decommissioning amortization
500 kV transmission line expense amortization
Nuclear fuel reactor recovery
Coal fuel inventory
Small Municipal Pumping rate
Streetlighting-owned rate
Proposed positions can be submitted to the Executive Committee
for approval. Fees would be billed at $125 per hour, and I
estimate fees through the remaining eight months of the case to
be approximately $20,000, dependent on the level of our partici-
pation, of course.
CAVEAT
A full blown accounting review of the filing, such as ought to be
undertaken by the Minnesota Department of Public•Service, might
T.3
SRA Board
January 17, 1990
Page 4
disclose major irregularities in the petition. Areas ripe for
review are the jurisdictional cost -allocation and rate base. I
have not recommended such a review because of the high cost
involved. (A commonly used benchmark for the cost of consultant
review and testimony is $50,000.)
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Minnesota Real Estate Journal
-- FROM THE INSIDE
NORWEST CORR'S possible purchase of
First Minnesota Savings Bank could spell
doom for a proposed office project in
downtown St. Paul.
Minnetonka -based Opus Corp. planned to
build a headquarters for First Minnesota at
underground parking space" according to
VISION. "Construction of the first phase is
expected to commence in early spring 1990
with initial occupancy in mid -summer 1993"
Coughlin formerly worked with Paragon
Group and Ellerbe Inc.
Fifth and Minnesota Streets on a site owned
OStl�t $U�(grtivt
by the savings and loan. First Minnesota
WATCH OUT, Lincoln Property Co.
planned to occupy about a quarter of the pro-
Firms eager to replace the Dallas -based
posed 20 -story, 300,000 square foot office
firm as leasing and management agent for the
tower.
Opus has held the project on the drawing
troubled Lincoln Centre office building in
downtown Minneapolis have been courting
boards, waiting to start construction until the
project was at least half leased. The sale of
the owner, Metropolitan Life Insurance Co.
First Minnesota, however, could leave Opus
New -York -based Cushman & Wakefield,
Minneapolis-based Towle Real Estate Co.
without its anchor tenant.
Norwest and First Minnesota announced
and Eden Prairie -based Welsh Cos. Inc. are
among several firms that have made pro -
Jan. 9 that they have signed a letterof intent
that could lead to Norwesfs acquisition Of,,
. p°sals to Metropolitan Life to lease and
.->.tnanage Lincoln Centre, sources say.
First Minnesota. First Minnesota eventually
X"We're not in a position to make any
Burnsville
changes at this point;' says Ralph DePas-
18.5
quale, an investment analyst with
r:
Metropolitan Life.
Chanhassen
Metropolitan Life has not solicited any
4IE`
proposals for companies to replace Lincoln
0.9
Property, DePasquale says, although he says
Coon Rapids
thit "quite a few companies have talked to us"
23.8
"It has not been at our invitation;' he says.
0.9
"When you own a building in any town,
t !
you're constantly approached by different
,S 1; 111 j
companies to possibly sway you into having
(` a
44
them do your leasing and management"
<�
When asked whether Metropolitan Life is
111
satisfied with Lincoln Property's perfor-
�riK$(Ix
mance, DePasquale said he had to end the in-
Fridley
terview for a meeting. He could not be reach -
First Minnesota's tower might stay on-
ly a plan.
would be combined with Norwest's Min-
nesota banks, which include facilities in
downtown St. Paul.
Asked how the acquisition might affect the
proposed building, Jay Pfaender, a
spokesman for First Minnesota, said, "That
just hasn't been discussed at all',
An Opus official, however, was not
optimistic.
"It's obviously taken a big bite out of what
we had projected as having leased up," says
Jeff Essen, vice president of real estate
development for Opus. "Does that kill the
deal? Yes, as we contemplated it"
Essen says he's confident that downtown
St. Paul can support more Class A office
space. Opus remains interested in developing
thr First Minm-cmn cite ho- anis h,it itr ,J.l
ed later.
Lincoln Centre, the 627,000 square foot
tower at 333 Seventh St. S., is 70 percent va-
cant two years after completion.
FOOD AND BEVERAGE operations often are
viewed as critical components for a hotel's
success. But it might be time to add high-tech
to the list of amenities.
The February issue of Publish! magazine
- a journal about desktop publishing -
reports that one hotel in San Francisco
already has added computers to each of its
rooms. Now an inn owned by Dartmouth
College in New Hampshire has the same
idea.
Actually, it's not quite the same idea. The
Nob Hill Lambourne in San Francisco in-
stalled IBM Personal System/2 computers in
its rooms. The Hanover Inn in Hanover,
N.H., plans to add Macintosh computers in
at least half of its 32 rooms, according to
Publish!
The Macs would be wired so that they
could access computers on the Dartmouth
campus.
T-9
January 22, 1990
/The "hostile" and "supportive" heading§
n the answer to the question about regulatory
environments in various Twin Cities com-
munities were transposed on page 13 in last
week's report on results of the 1990 Min-
nesota Real Estate Survey.
Here, to clarify, are the same results, but
with the "hostile" and "supportive" headings
over the correct columns:
Which of the following cities do you consider
to have regulatory environments which e
hostile to or supportive of develo t?
Letter from the Publisher
Tb Our Readers and Advertisers: .
I am pleased to announce that an investor and I have purchased the Minnesota Real
OStl�t $U�(grtivt
Anoka
2.1 %
15.9%
Apple Valley
3.9
20.7
Blaine
3.4
17.2
Bloomington
22.7
28.2
Brooklyn Center
9.9
11.9
Brooklyn Park
5.6
20.3
Burnsville
11.2
18.5
Champlin
2.6
10.6
Chanhassen
4.3
22.5
Columbia Heights
0.9
4.0
Coon Rapids
2.1
23.8
Cottage Grove
0.9
11.0
Duluth
0.9
18.5
Eagan
17.6
18.5
Eden Prairie
31.8
20.3
Edina
19.7
9.3
Fridley
1.7
10.1
Golden Valley
12.0
11.0
Hastings
0.4
7.0
Hopkins
5.2
"7.5
Inver Grove
Heights
43
8.4
Lakeville
3.0
15.0
Maple Grove
9.0
18.1
Maplewood
9.0
'5.7
Mendota Heights
8.6
7.9
Minneapolis
16.7
26.0
Minnetonka
25.8
10.1
New Brighton
1.7
12.3
New Hope
5.2
7.0
Oakdale
3.4
18.5
Plymouth
��•� 37.3
12.8
Richfield
9.4
6.2
Rochester
3.0
11.9
Rosemount
2.1
6.6
Roseville
5.2
16.7
Savage
1.3 .
6.2
Shakopee
3.9
9.7
Stillwater
3.9
6.2
St. Cloud
_ 2.1
21.6
St. Louis Park
15.0
9.3
St. Paul
5.2
19.4
Vadnais Heights
1.3
13.2
Wayzata
14.2
1.8
West St. Paul
3.4
4.0
White Bear Lake
6.4
8.8
Woodbury
6.0
23.3
Other
2.6
4.8
Letter from the Publisher
Tb Our Readers and Advertisers: .
I am pleased to announce that an investor and I have purchased the Minnesota Real
MEMO
DATE: January 31, 1990
TO: Joe Ryan, Building Official
FROM: Helen LaFave, Communications Coordinator
SUBJECT: CUSTOMER COMMENT CARD
The attached Customer Comment Card was received at the front counter.
share these comments with Glenn.
I sent Mr. O'Brian a letter thanking him for his comments.
Please
CITY OF PLYMOUTH -
PUBLIC SERVICE COUNTERS CUSTOMER COMMENT CARP
.. l� - •. - - - C - -
' - We value .r _- . , •},..';:;. `; �,. - . - - - . . -- .;... ,,: _
your opinion about the: service you - receive at the Public Service:•.:+.
Counters! Please complete this -card and drop It in a Customer Comment Box.
'
Time
Date C)�%
_)A14 1Y
With which departmentu.deal
s) id or
y
Name of person you saw ��:41 �i• 1C % p„ e _h 1 _t„ . _ _ AI_ .. / . _ L
Did you have an appointment? Yes No
Was service prompt? Yes�oWas'service courteous? -Yes •- No
Is there information you still re'
quire?=
could
, serve
ou beer; V
• ; %;
:You name
would be
'appreciated; however,- if
you should prefer to remain
anonymous',
we still
value your observations.*
Name
Address ,�
��!j
�7L+�
Phone
January 31, 1990 14
Mr. Carson O'Brian
12415 - 25 Avenue North
Plymouth, MN 55441
Dear Mr. O'Brian:
Thank you for taking the time to submit a Counter Customer Comment Card. I am
pleased to learn that Plan Checker Glenn McLearen provided you with the help
you needed to obtain your building permit. Our objective continues to be to
provide the best possible service to the residents of our community and those
conducting business with the city.
Thanks again for your comments on our performance.
Sincerely,
Helen LaFave
Communications Coordinator
cc: Joe Ryan, Building Official
3400 PLYMOUTH BOULEVARD, PLYMOUTH. MINNESOTA 55447 TELEPHONE (612) 559-2800
T-8
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on the town meeting agenda to which'you would like the ,City to
and/or investigate. If you provide your name, address and .phone•nu
will advise you of our actions and findings with respect* to. your con
NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED:
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NAME OF CONCERNED RESIDENT:
ADDRESS OF RESIDENT:
PHONE NUMBER:
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811990
NW
L• Is
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on the town meeting agenda to which you would like the City to respond
and/or investigate. If you provide your name, address and phone number, we
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NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED:
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ACTION YOU DESIRE THE CITY TO TAKE:
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NAME OF CONCERNED RESIDENT: + ' = .��,� , L Lta�/1�,
ADDRESS OF RESIDENT:�'���
PHONE NUMBER: 43L.WL%?
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RESIDENT FEEDBACK FORM
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on the town meeting agenda to which you would like the City to respond
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NATURE R R D•
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NAME OF CONCERNED RESIDENT: Z�e57� w
ADDRESS OF RESIDENT: ,3j0� kj Imep',
PHONE NUMBER: 7 -Lo '—�L
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RESIDENT FEEDBACK FORM
Please use this form if you have a queAlon�'or concern which does not appear
on the town meeting agenda to--which-you would like the City to respond
and/or investigate. If you provide your:name, address and phone number,,we
will advise you of our actions and findings with respect to your concern.
NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED:
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PHONE NUMBER:
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RESIDENT FEEDBACK FORM
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NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED:
ACTION YOU DESIRE THE CITY TO TAKE: 0
NAME OF CONCERNED RESIDENT: k O g -w
ADDRESS OF RESIDENT: 1 'B Z/ O
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on the town meeting agenda to which you would like the City to respond
and/or investigate. If you provide°your name, address and phone number, we
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NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED:
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ACTION YOU DESIRE THE CITY TO TAKE:
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NAME OF CONCERNED RESIDENT:
ADDRESS OF RESIDENT:
PHONE NUMBER: 52 -2&3(c
I
RESIDENT FEEDBACK FORM
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on the town meeting agenda to which you would like the City to respond
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will advise you of our actions and findings with respect to,your concern. -
NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED:
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NAME OF CONCERNED RESIDENT: M
ADDRESS OF RESIDENT:
PHONE NUMBER: SS 9 — 1 G 3 6
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on the town meeting agenda to which you would like the City to respond
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NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED:
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ADDRESS OF RESIDENT:
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NAME OF CONCERNED RESIDENT:
ADDRESS OF RESIDENT: 11-7 -7 S --" i71Ia�IQQ-2
PHONE NUMBER: (4) _1; q ") — 0 (3Z
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and/or investigate. If you provide your name, address and phone number, we
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RESIDENT FEEDBACK FORM
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NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED: '&Lc
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ADDRESS OF RESIDENT:
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on the town meeting agenda to which'., you would like the City to respond
and/or investigate. If you provide your name, address and phone number, we
will advise you of our actions and findings with respect to your -concern.
NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED: 4u 44p- $ use g?,
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ADDRESS OF RESIDENT: 9800 Ao,
PHONE NUMBER: 545 6¢?8
RESIDENT FEEDBACK FORM
Please use this form if you have a question or concern which does not appear
on the town meeting agenda to which you would like the City to respond
and/or investigate. If you provide your name, address and phone number, we
will advise you of our actions and findings with respect to your concern.
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will advise you of our actions and findings with respect to your concern.
NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED:
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will advise you of our actions and findings with respect to your concern.
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PHONE NUMBER: W. St?/ P1 7
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/NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED: Oe
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ACTION YOU DESIRE THE CITY TO TAKE:
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NAME OF CONCERNED RESIDENT:
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on the town meeting agenda to which you would like the City to respond
and/or investigate. If you provide your name, address and phone number, we
will advise you of our actions and findings with respect to your concern.
NATURE OF CONCERN/PROPERTY ADDRESS INVOLVED:
ACTION YOU DESIRE THE CITY TO TAKE:
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ADDRESS OF RESIDENT: 73ar fit/ a
PHONE NUMBER: / 7!0/
RESIDENT FEEDBACK FORM
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will advise you of our actions and findings with respect to your concern.
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and/or investigate. If you provide your name, address and phone number, we
will advise you of our actions and findings with respect to your concern.
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TOWN METING AGENDA
AREA 4
February 12, 1990
7.00 p.m , '
r
dlzr2o- �
I. 1990 PROPOSED CAPITAL IMPROVEMENTS
A.
Streets'
B.
Sanitary Sewer
C.
Water
D.
Public Buildings
E.
Parks/Trails
II. COMMUNITY DEVELOPMENT
A. Development Activity
B.
Comprehensive Plan Update L'� G� L �I
I
III. PUBLIC SAFETY V,
A. Police/Fire Report l/ L� 4`,'4 A'
B. Police/Fire Alarm Permits
C. Neighborhood Watch Program
D. Animal Control
IV. OTHER ITEMS
A. Public Transportation - Plymouth Metrolink/Dial-a-R de -
B.
Local
Government Cable Access Channel 37
C.
Solid
Waste Recycling Program
How Does A
Business Become
Customer
Oriented?
R begins witb a desire to be that way
and the energy to assure that the desire
spreads tbrougbout your organization
and remain:, there permanently.
Always try to think like your
customer. Walk a cou le of miles in
Fix anything that needs fixing. Outser-
vice your competitors by every
yardstick.
Reward and encourage innovation
among your employees, especially in
p the area of customer service.
your customers' shoes. Look closel* Knock yo urselfou t trying to be
at your business through their eyes. an easy company to do business
Check out a business that is similar with. Companies that enjoy remark -
to yours. Honestly appraise to yourself ably high profits from customer
its method of greeting you, its service, service have certain characteristics in
its identity. See what catches your at- common: They set astonishingly high
tention. Determine what appeals to standards of performance. They are
you. Focus on what would sell you. obsessed with knowing what the cus-
Why would it? tomer wants. They know customer ex -
Listen when challenged. When pectations must be understood and
selling, listen carefully to those cus- managed before they can be met and
tomers who challenge you, give you exceeded. They design their products
the toughest time. Show them great and services to maximize customer
care. Address yourself to their needs, satisfaction. They repeat and repeat
then win them over by your intense again that customer service is the
interest in what they want and your responsibility of everyone in the
ability to provide it. organization.
Empathy will be a valuable trait
when you are faced with a customer
complaint. If a customer takes the
time to complain, that customer
believes that you can do something
about it.
Spy on yourself. Anonymously
contact your business with a request
for information. Contact two compe-
titors with the same request. Compare
the attitude, the speed, the warmth,
and the efficiency of the responses.
Each one of as "is" the com-
pany. Plant that idea in the minds
of all who work for you. Customers
are not outsiders to your business. In-
stead, they are the most vital part of
it. They keep it alive. They are doing
you a favor by giving you the oppor-
tunity to serve them. They are not in-
terruptions of your work, but rather
the purpose of it. And realize that
customer service is not a cost, but an
investment. ❑
— Guerida.tlarketing Attack by Jay Conrad
Lerinson. Hougbton•AfiJJlin, 2 Park St., Boston. MA
02108 J' 95
3400 PLYMOUTH BOULEVARD, PLYMOUTH. MINNESOTA 55447. TELEPHONE (612)559-2800
�r
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6 1 1 O�
PLYMOUTR
DUMP REACTIVE LANGUAGE:
1 GET PROACTIVE!
The language of reactive people
— limited time — is controlling
absolves them of responsibility.
me-)
.
`7fonlyso�and-so were morepa-
`That's me- 7bat's just the way
Kent." (Someone else's behavior is
I am." (I am determined. There's
limiting my effectiveness.)
nothing I can do about it.)
7 bane to do it." (Circumstances
"He makes me so mad." (I'm not
or other people are forcing me to do
responsible. My emotional life Is
what I do. I'm not free to choose my
governed by something outside my
own actions.)
control.)
Our language is a very real indicator
7 can't do tbat. Ijust don't bane
of the degree to which we see ourselves
the time" (Sometbing outside me
as proactive people.
Reactive Language Proactive Language
There's nothing I can do.
Let's look at our alternatives.
That's just the way I am.
I can choose a different approach.
He makes me so mad.
I control my own feelings.
They won't allow that.
I can create an effective presentation.
I have to do that.
I will choose an appropriate response.
I can! t.
I choose.
I must.
I prefer.
If only.
I will.
— 7 Habits Of Higbly Effertim People by Stephen R.
Come}: Simon 6 Schuster, 1230 Amnue of the Americas.
NY 10020. $19.95
3400 PLYMOUTH BOULEVARD, PLYMOUTH. MINNESOTA 55447. TELEPHONE (612) 559-2800
CITY OF PLYMOUTH
PLANNING COMMISSION MINUTES
JANUARY 10, 1990
The Regular Meeting of the City of Plymouth Planning Commission
was called to order at 7:30 p.m.
MEMBERS PRESENT: Chairman Richard Plufka, Commissioners Larry
Marofsky (arrived at 7:45 p.m.), Michael
Stulberg, John Wire (arrived at 7:35 p.m.),
Dennis Zylla, Joy Tierney and Hal Pierce.
MEMBERS ABSENT: None
STAFF PRESENT: Community Development Coordinator Charles
Dillerud, Community Development Director
Blair Tremere, City Engineer Dan Faulkner and
Planning Secretary Jackie Watson.
MOTION by Commissioner Zylla, seconded by Commissioner Tierney
to approve the minutes of December 27, 1989.
VOTE. 4 Ayes, Commissioner Stulberg abstained.
I- IDa
MOTION TO APPROVE
Chairman Plufka introduced the request of Builders Development, BUILDERS DEVELOPMENT,
Inc. and James Development Company for a Sketch Plan for the INC. AND JAMES
proposed development of land not yet served by public sewers DEVELOPMENT CO. (89110)
located west of County Road 101, approximately 1/4 mile north
of County Road 24.
Coordinator Dillerud gave a review of the December 29, 1989
staff report.
Chairman Plufka introduced Mr. Rick Sathre representing the
petitioners.
Mr. Sathre introduced Mr. Rick Murray, President of Builders
Development, Inc. and Mr. Jim Ostenson of James Development Co.
Mr. Sathre showed a graphic depicting the location of the
property; the location of the wetlands on the property; and,
the lay of the land.
Mr. Sathre stated that 34th Avenue North to Highway 101 is
depicted as a minor collector on the City Thoroughfare Plan,
and the developer's plan to curve this road as much as possible
to slow down traffic.
Planning Commission Minutes
January 10, 1990
Page 2
The plan shows a dead end street stub to the property on the
north and a street on the south to connect to Queensland Lane.
Mr. Sathre stated that the Sketch Plan request is for a
standard R -1A subdivision for single family homes totalling 47
lots on 30 acres of land. Mr. Sathre stated that the desire of
the developers is the maintain the roll of the land.
Mr. Sathre stated that the wetlands are protected by the
Federal government. He stated that they would like to have one
road cross a wetland; eliminate the two small wetlands in the
southeast and southwest corners, and create a new wetland to
compensate for the other wetlands to be filled.
Mr. Sathre stated that the County wants additional right-of-way
related to Highway 101, but the developer believes the
requirements to be excessive.
Commissioner Tierney asked Mr. Sathre if there would be an
access trail for children to the Greenwood School.
Mr. Sathre stated that no plan had been made for such access by
dedicated right-of-way.
Commissioner Tierney asked if the existing wetlands contained
much water.
Mr. Sathre responded that the central wetland contained very
little water and was about 12,000 square feet in size. He
stated that the wetland in the southeast corner was dry. Mr.
Sathre stated that the City Park and Trails Plan showed no
facilities planned for this site.
Commissioner Marofsky asked if the cul-de-sac into the site to
the north would exceed 500 feet.
Mr. Sathre stated that the cul-de-sac would be a little longer
than 500 feet.
Commissioner Marofsky 'asked how the dedication of property to
the County along County Road 101 would affect the proposed
development.
Mr. Sathre stated that the design does not allow for the extra
land needed by the County and that the developer plans to
create a berm to conceal the roadway.
Commissioner Marofsky asked if the west end of 34th Avenue
North would be constricted down gradually from the 42 foot
street width in Amber Woods to the 36 foot width recommended by
the City Engineer for this site.
City Engineer Faulkner stated that 34th Avenue would be
gradually constricted.
Planning Commission Minutes
January 10, 1990
Page 3
Commissioner Zylla asked what impact the development would have
on the homestead presently on the property.
Mr. Sathre stated that the plan is to remove the homestead
structure.
Chairman Plufka opened the Public Informational Meeting.
Chairman Plufka introduced Mr. Nel Brettingen of 3310
Queensland Lane North.
Mr. Brettingen stated that he was concerned that more water
would run off onto his property in the southeast corner if Lot
4 were built up. He stated that the southeast and the center
wetland do contain water and the center wetland also attracts
ducks.
Mr. Sathre stated that he was aware that the drainage in the
southeast corner was not good and that the drainage problem
would be corrected before this area is filled.
Chairman Plufka introduced Mr. Bill Latour of 3525 County Road
101.
Mr. Latour stated that he is the owner of the property on the
north. He asked if the City will need to purchase easements on
the north so that a sewer can be installed.
City Engineer Dan Faulkner stated that a gravity line needs to
be installed and that the City may have to purchase the
easements needed.
Mr. Latour asked the meaning of dotted lines on the northwest
corner of the site map.
City Engineer Faulkner stated that this area in the northwest
is a storm water holding area and regulated by the Corp of
Engineers, as wetland.
Chairman Plufka questioned whether there would be a need for
more space in the northwest corner for storm water holding.
Coordinator Dillerud stated that the area needed for storm
water holding would not be final until the grading plan was
completed.
Mr. Latour stated that he didn't want the northwest corner
defined as wetland because then it could not be developed.
Mr. Latour stated that the two cul-de-sacs of the proposed plan
should connect to the property on the north. He stated that
there was also a need for a walkway for children to reach the
school.
Planning Commission Minutes
January 10, 1990
Page 4
Chairman Plufka introduced Ms. Donna Vanderham of 18120 33rd
Avenue North.
Ms. Vanderham asked what the depth of the lot in the southwest
corner would be, what the average cost of the proposed single
family homes would be, and whether the tree line would be
preserved.
Chairman Plufka stated that the developers are not required to
disclose the cost of the proposed homes.
Mr. Rick Murray of Builders Development Company stated that the
average cost of the homes would be between $175,000 - $180,000.
He said that they would preserve as many trees as possible.
Chairman Plufka stated that the depth of the lot would be at
least 120 feet as required by the Zoning Ordinance unless a
variance was applied for.
Chairman Plufka introduced Robert Kariniemi of 18010 33rd
Avenue North.
Robert stated that he wanted the central pond preserved as it
is necessary for drainage and also attracts wildlife. He said
he felt the pond should be a park area and a trail was also
necessary in this area to connect to the Hennepin County Trail
System, and to provide a walkway for children to the school.
Chairman Plufka introduced Ms. Debra Kirchgessner of 3525
Urbandale Lane.
Ms. Kirchgessner stated that her concern was the stagnant water
in the area around Amber Woods resulting from improper drainage
in the area.
City Engineer Faulkner stated that once the storm sewer is
installed the drainage problems will be reduced.
Commissioner Marofsky stated that a storm water sewer plan will
not result in draining all the water because some water is
allowed to stand according to design.
Chairman Plufka closed the Public Informational Meeting.
Commissioner Tierney asked if the applicant had attempted to
I
coordinate planning with Mr. Latour.
Mr. Murray responded negatively.
Commissioner Wire asked if the applicants had talked with the
Corps of Engineers regarding wetlands.
Mr. Murray responded that they had.
�- Baa
Planning Commission Minutes
January 10, 1990
Page 5
MOTION by Commissioner Stulberg, seconded by Commissioner Wire MOTION TO APPROVE
to approve the Sketch Plan for Builders Development, Inc. and
James Development Company for the proposed development of land
not yet served by public sewers located west of County Road
101, approximately 1/4 mile north of County Road 24, subject to
the conditions listed in the December 29, 1989 staff report.
MOTION to amend by Commissioner Stulberg, seconded by
MOTION TO AMEND
Commissioner Marofsky to add a directional comment to the
conditions listed in the staff report that the Parks and
Recreation Department review the proposed development for
possible trail access to Greenwood School.
Roll Call Vote. 7 Ayes. MOTION carried.
VOTE - MOTION CARRIED
MOTION to amend by Commissioner Marofsky, seconded by
MOTION TO AMEND
Commissioner Wire to move perpendicular roadway access to the
Latour property to within 1 lot of the property on the north,
to shorten the length of the cul-de-sac.
Commissioner Zylla stated that it was too early in the
development process for him to support this motion.
Commissioner Marofsky stated that his intent in proposing the
amendment for moving the street access closer to the north
property was to make the City Council aware of a potential
problem.
Roll Call Vote on Motion to Amend. 4 Ayes, Commissioners
VOTE - MOTION CARRIED
Zylla, Stulberg, and Chairman Plufka, Nay. MOTION carried on a
vote of 4-3.
Roll Call Vote on Main Motion as twice amended. 7 Ayes.
VOTE - MOTION CARRIED
MOTION carried.
Chairman Plufka introduced the request of Hennepin County for a
HENNEPIN COUNTY (89111)
Conditional Use Permit Amendment to allow 30 trucks per day and
Saturday operations for the temporary garbage truck routing
station located on property at 2455 Fernbrook Lane.
Chairman Plufka waived the review of the December 29, 1989
staff report.
Chairman Plufka introduced Mr. David Winter representing the
petitioner.
Commissioner Wire asked if the weight of the trucks would cause
undo stress on the road.
City Engineer Faulkner stated that the roadway was designed for
9 ton trucks, and that the County trucks were lighter than
than.
Planning Commission Minutes
January 10, 1990
Page 6
Commissioner Pierce asked Mr. Winter if the County would be
back again in 6 months asking for an increase in the number of
trips allowed.
Mr. Winter stated that the reason the County was asking for the
amendment was that the original days of operation are Monday
through Friday and that the County would like to operate the
truck routing station on Saturday for commercial waste trucks.
He said that currently the truck average is 12 trucks per day
but that some days the count is up to 19 trucks and the County
would like to increase the number allowed so as to not exceed
the permit.
Commissioner Stulberg asked Mr. Winter to explain how the
system is working and if the County is going to ask for an
increase in the number of trucks allowed again.
Mr. Winter stated that trucks are allowed to go to the station
of their choice, and that not many trucks are going to the
Mound station because the burn plant is located in downtown
Minneapolis, and the drivers don't want to travel from Mound to
downtown Minneapolis. He said he could not project whether the
County would ask for an increase in the number of trucks again.
Chairman Plufka stated that Plymouth does not want to become
the "station of choice" by the truck drivers.
Commissioner Tierney asked Mr. Winter why the County did not
hire a dispatcher to evenly distribute the trucks to the
different locations by radio.
Mr. Winter stated that the County decided against hiring a
dispatcher to route the trucks.
Commissioner Wire stated that increasing the number of trucks
allowed to 30 per day and allowing for Saturday operations
would be 1.8 times the current capacity of the truck routing
station in Plymouth. He said he felt the current capacity was
adequate.
Commissioner Pierce asked Mr. Winter to explain where the other
truck routing stations were and their current count as to the
number of trucks using them daily.
Mr. Winter told the Commission where the other sites were
located and the average number of trucks visiting each
location. He stated that the count at Plymouth is higher than
the other stations.
Commissioner Marofsky asked how the County communicated with
the trucks if they wanted them to go to another station because
one was over its limit for the day.
_.- I ao.
Planning Commission Minutes
January 10, 1990
Page 7
Mr. Winter stated that the County cannot communicate with the
trucks.
Commissioner Wire asked if there were trucks operating at
night.
Mr. Winter said most trucks operate during the day.
Commissioner Stulberg asked how many other stations operate on
Saturday.
Mr. Winter stated that Bloomington and Minneapolis operate on
Saturday, and this is mostly for haulers of commercial waste.
Chairman Plufka opened the Public Hearing. There was no one
present to speak on the issue.
Chairman Plufka closed the Public Hearing.
MOTION by Commissioner Stulberg, seconded by Commissioner Wire MOTION TO DENY
to deny the Amendment of the Conditional Use Permit for
Hennepin County to operate the truck routing station located at
2455 Fernbrook Lane on Saturday and to increase the number of
daily trucks to 30.
Roll Call Vote. 7 Ayes. MOTION carried.
VOTE - MOTION CARRIED
Chairman Plufka introduced the proposed Amendment to the Zoning ZONING ORDINANCE AMEND -
Ordinance relative to Business District Standards for Shopping MENT-SHOPPINYG CENTERS
Centers.
Commissioner Wire stated that he wanted the word "geobase" as
used in Item 2 of the staff report explained.
Director Tremere explained the meaning of the word as it was
used in this context. Director Tremere stated that the use of
the term is broad so as to not constrict the area. He said the
term was derived from the Land Use Guide Plan and took the
place of "market area."
Commissioner Marofsky stated that the Commission shoul consider
striking the word "geobase" and inserting the words ("Walking
or Driving") after the word "neighborhoods" in Section 8,
Subdivision A. 2. b.
Commissioner Wire discussed the sizes allowed in the CR -1 and
CR -2 shopping centers.
Director Tremere stated that the changes being addressed by the
amendment were changes that were adopted by the Commission and
City Council in the Comprehensive Plan. No rezoning or change
in the allowable uses is contemplated by this proposal.
Planning Commission Minutes
January 10, 1990
Page 8
Commissioner Wire stated that he would like to see this
amendment deferred until there was more study by the
Commissioners.
Chairman Plufka opened the Public Hearing. There was no one
present to speak on the issue.
Chairman Plufka closed the Public Hearing.
MOTION by Chairman Plufka, seconded by Commissioner Stulberg to MOTION TO APPROVE
recommend approval of the Ordinance amendment regarding
shopping center standards and to remove the word "geobase" from
Section 8, Subdivision A, 2. b. and to add "25% or" before the
square feet allowed and "whichever is less" after the square
feet in both Item 5a. and b. under B-2 of Section 8,
Subdivision E.
MOTION by Commissioner Marofsky, seconded by Commissioner MOTION TO AMEND
Tierney to amend the Main Motion and delete the word
"residential" in Section 8, Subdivision A. 2.b. adding the
words "(Walking or Driving)" after the word "neighborhoods".
Roll Call Vote on Motion to Amend. 7 Ayes. MOTION carried. VOTE - MOTION TO AMEND
CARRIED
Roll Call Vote on Main Motion as amended. 6 Ayes, Commissioner VOTE - MOTION CARRIED
Wire, Nay. MOTION carried.
Chairman Plufka introduced the proposal to amend the R-2 ZONING ORDINANCE
section of the Zoning Ordinance related to the side yard AMENDMENT -R-2 DISTRICT
setback of accessory structures.
Chairman Plufka opened the Public Hearing. There was no one
present to speak on the issue.
Chairman Plufka closed the Public Hearing.
MOTION by Chairman Plufka, seconded by Commissioner Wire. to MOTION TO APPROVE
recommend approval of the Zoning Ordinance Amendment to the
specifications related- to the side yard setback of accessory
structures in the R-2 Zoning District from 20 feet to 10 feet.
Roll Call Vote. 7 Ayes. MOTION carried. VOTE - MOTION CARRIED
Chairman Plufka introduced the Official Controls Element of the OFFICIAL CONTROLS
Comprehensive Plan. ELEMENT OF THE COMPRE-
HENSIVE PLAN
Director Tremere reviewed the January 5, 1990 Staff Memorandum.
Chairman Plufka stated that the Commission needed time to
review the issue of Official Controls, including the memorandum
to the Commission by Commissioner Zylla regarding minimum lot
area in PUD's.
Planning Commission Minutes 317
January 10, 1990
Page 9
Chairman Plufka stated that he would appoint Planning
Commission members to a Task Force for study for the Official
Controls Element of the Comprehensive Plan.
Commissioner Tierney reported that the Board of Zoning OTHER BUSINESS
Adjustments had requested review by the Planning Commission of
a portion of the sign section of the Zoning Ordinance related
to a recent variance application by Miles Homes. She requested
staff provide the Planning Commission a written summary of the
issue in question.
Director Tremere handed out the 1990 calendar which will be
discussed at the next Planning Commission meeting.
Chairman Plufka said he will designate two Commissioners to
serve on a special Task Force that the City Council is expected
to appoint to review standards for outside storage and sale of
merchandise in the Business Districts.
Meeting adjourned at 10:35 p.m.
MEMO
i
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MINNESOTA 55447
DATE: February 1, 1990
TO: James G. Willi City
FROM: Charles Ee ,
Manager
Community Development Coordinator
z-13
SUBJECT: HENNE IN COUNTY APPLICATION FOR WASTE TRANSFER STATION (89057)
On July 23, 1989 Hennepin County made application for a Conditional Use Permit
to construct a solid waste transfer station at the northeast corner of County
Road 6 and I-494, pursuant to Section 9, Subdivision D. of the Zoning
Ordinance (Hazardous Waste Facilities Conditional Uses).
Development Review Committee review of the application commenced immediately
together with activity to retain a qualified consultant to review the
application on behalf of the City of Plymouth, as the Ordinance specifies. It
should be noted that the review by the outside consultant is at the expense of
the project applicant.
On August 29, 1989, we drafted a letter to Hennepin County reviewing 35 items
that are in need of modification; additional clarification; or additional
information. These review comments wererdy the result of review by the City
of Plymouth staff and usual retained utilities and traffic consultants.
On July 24, 1989, we advised Hennepin County that the City of Plymouth had
selected Black and Veatch, Kansas City, to be the consultant that would review
technical aspects of their application on our behalf. On August 4, 1989,
Hennepin County delivered the necessary financial deposit and authorization to
proceed with the review of the application by the outside consultant. On
August 10, 1989,'we instructed Black and Veatch to proceed with their review.
Black and Veatch completed their review and on October 18, 1989, we
transmitted a copy of the Black and Veatch report, together with a list of 34
additional design -related items requiring additions, 'modifications of
clarifications related to plans that had been submitted by Hennepin County for
this facility. These additional design review items were generated from the
report presented by Black and Veatch. j
To date, neither our design review letter of August 29, 1989, nor our design
review letter of October 18, 1989 has been responded to by Hennepin County.
The project remains in Stage 2 of the development review process, and cannot
proceed until the applicant has provided responses we have requested.
(pl/cd/trans.sta:jw)
MEMO
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MINNESOTA 55447
DATE: January 30, 1990
TO: Lieutenant Dennis Paulson
FROM: Chief Richard J. Carlquist
SUBJECT: TOWN MEETING COMMENTS FROM JANUARY 29, 1990
I received requests from residents who attended the Town Meeting
this past evening relative to two different locations that should
be checked. The locations are: Parkside Apartments and Xenium
Lane from 37th to Scanticon.
The concern at Parkside is twofold. The first is that there is
illegal parking on 41st Avenue adjacent to the apartment
buildings. The second is that there may be fire lane violations
on the property itself.
With respect to Xenium Lane, the resident was concerned about
southbound traffic at about 8 a.m. Monday -Friday. He was
concerned that, in particular, from approximately 37th Avenue
North (which is approximately where the gravel road ends
southbound) to about 34th Avenue, where the stop sign is, that
the cars are speeding. He also felt that from the stop sign to
approximately Scanticon that the cars were driving considerably
above the 30 m.p.h. speed limit.
Please see that assignments are made through roll call to attend
to both of the areas mentioned. The officers should file a
report concerning their observations so that I may share them
with the City Council.
RJC:sb
cc: James G. Willis - City Manager
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January, 1990 183 University Ave. East, St. Paul, Minn. 55101
Majority Leader Dee Long—AMM Meeting Keynoter
Mayor Don Fraser
The AMM Annual Policy Adoption
meeting was held at the Minneapolis
Hilton Hotel, November 2, 1989. Over
100 delegates and guests represent-
ing 42 AMM member cities, the Metro-
politan Council and League of Min-
nesota Cities attended. The major
order of business was adoption of 31
new and modified policies to augment
the current legislative program for
1990. However, the highlight of the
evening was the keynote address by
House Majority Leader and then Tax
Committee Chair, Representative.Dee
Long. She presented an overview of
the Special Session Tax Bill and re-
layed some insight into the future. A
report on her remarks accompanies
this article. In addition to policy
adoption and Representative Long's
address, progress reports were made
by Kevin Frazell, Chair of the AMM
Mission and Membership Services
Task Force, and Larry Bakken, Chair
of the Legislative Coordinating Com-
mittee. The essence of both reports
suggest that each committee feels it is
time for the AMM to increase pro-
fessional staff. Articles by both Chair
persons can be found elsewhere in
this newsletter. The after-dinner pro -
gram was initiated by a welcome to
Minneapolis by Mayor Don Fraser.
Majority Leader
Warns Less Aid
For Cities
by Laurie Hacking
House Majority Leader Dee Long
(DFL -Minneapolis) addressed the As-
sociation of Metropolitan Munici-
palities at its November 2 policy
adoption conference.
In her speech, Long said that there
has been an increasing sentiment
among legislators that counties have
not been receiving enough state as-
sistance to finance their program man-
dates, "while cities have been getting
the lion's share of additional funds
and have fewer mandates." Given that
mood among legislators, Long warned
that it is possible that more aid could
be shifted away from cities and toward
counties and school districts in the
future.
In commenting on the possibility of
property tax changes in the 1990 legis-
lative session, Long indicated that she
hopes there will be very little tinkering
with the propertytax system, especially
since she believes there will be very
little state money to make any major
changes. Long, however, said that she
expects the issue of instituting a per-
manent equalization formula to be
raised in the 1990 session.
Long said the Legislature, through
the Legislative Commission on Plan-
ning and Fiscal Policy, will study al-
ternative Local Government Aid (LGA)
formulas throughout the upcoming
year in the hope of building a con-
sensus for reform. She indicated that
past LGA formulas have lacked a
This newsletter is printed on recycled paper.
33
Representative Dee Long
good definition of need since they
have generally used past spending as
an indication of need, tending to
"reward those who have been pro-
fligate." The purpose of the LGA for-
mula, Long said, should be to "pay for
state mandates and allow basic ser-
vices to be provided, regardless of
ability to pay." Long said thatalthough
she is "not a strong advocate for
wholesale equalization ... ability to pay
has to play a part in any formula."
Changes in LGA, however, would be
"gradual, not massive," she said.
On the issue of levy limits, Long said
the elimination of levy limits in Pay
1992 for cities would depend upon
what happens with statewide levies.
"If we see double digit property tax
increases statewide, then levy limits
will stay in place," she said. Long also
expects the new truth in taxation pro-
cess to make clear to taxpayers who is
responsible for levying property taxes.
According to Long, the elimination of
levy limits will depend upon the public
understanding that the Legislature is
not totally responsible for property
taxes.
Reprinted from LMC Bulletin, Number 30,
November 9, 1989.
Mission and Membership Services Task For` ce
by Kevin Frazell
Since late August, the 13 -member
Mission and Membership Services
Task Force has been meeting bi-
weekly to chart a recommended
course for the Association, and ham-
mer out some of the critical issues that
will face us in the future. The task
force was convened as a result of the
final recommendation of the 1984 task
force that this process should be re-
visited every five years.
Where the major "theme" of the
1984 report was the proliferation of
splinter city groups within the metro-
politan area, this year's deliberations
have taken place within the context of
the increasing split between the metro-
politan area and greater Minnesota
over tax and other fiscal issues. We
have studied carefully how the AMM
might become a more effective and
unified voice at the legislature for the
cities of the seven -county metropolitan
area. We are also considering our
relationship with the League of Min-
nesota Cities, and the smaller city
groups which still exist within the
metropolitan area, such as the North-
ern Mayors Association and the Muni-
cipal Legislative Commission. Repre-
sentatives from these groups, along
with State legislators, have appeared
before our committee to share their
insights and expertise.
At the same time, we have not lost
sight of the original focus of AMM,
which was to monitor and work with
the metropolitan agencies on behalf of
our member cities. We are particularly
concerned that as we become more
active in the legislative arena, we not
lose sight of our responsibilities vis-a-
vis the Metropolitan Council and the
regional operating agencies. One of
our observations is that the AMM
should be not just reactive, but pro-
active in helping set the metropolitan
agenda.
A particular challenge for the AMM
is how to handle our increased activity
at the legislature, while maintaining
our responsibilities in the metropolitan
area. The staff workload has grown
geometrically over the past few years,
while the number of staff positions,
office space available, etc., have re-
mained the same. Therefore, our com-
mittee will be making recommendations
as to whether it is time for the AMM to
expand the staff, whether we should
locate the offices in a facility other
than the League building, and what
Kevin Frazell
level of dues will be necessary to
supportan organization that can meet
the many demands being placed on it.
Similarly, we will be making recom-
mendations on how to narrow and
focus the AMM's legislative policy
agenda, and deal with issues that are
devisive among our own membership.
After holding seven information
gathering and fact-finding meetings,
the task force is ready to begin putting
together our report for the member-
ship. After a winter break, we will
convene again on January 25 with our
biweekly meeting schedule until we
have hammered out the final recom-
mendations and report. Our goal is to
have that report available to the mem-
bership in time for the annual meeting
in the spring.
1990 Tree
Inspector Workshops
Feature Field
Training
The Shade Tree staff of the Minne-
sota Department of Agriculture offers
a once -a -year certification program
for city forestry employees. Dates and
locations are setforthe seven (7) Tree
Inspector Workshops to be held in
1990. Like last year, there will be two
(2) metro area workshops and five (5)
locations for the convenience of our
friends in greater Minnesota.
Each workshop is tailored to meet
regional needs and will stress small
group and audience participation.
Special features and outdoor sessions
include:
Crookston—Red River Valley Elm.
Utilization update, discussion of
trees for northern prairies from the
Morden Arboretum (Canada), and
a tree and shrub identification walk
I-- ►7
on campus.
Marshall and Morris—Expanded
discussion of Dutch elm disease
management, community shelter -
belt plantings and outdoor, hands-
on pruning sessions.
Hibbing—Focus on forest tent
caterpillar management, a tree
spade demo and tour of the Iron
Range Resource and Rehabili-
tation Bureau's (IRRRB) new
growth chamber.
St. Paul campus—Focus on
drought and abiotic stress,
diagnostics walk on campus with
Dr. French and tour of the
experimental tree nursery.
Rochester—Visit to an oak wilt
infection center for a vibratory
plow demo and to learn spore
checking technique.
To help tree inspectors organize
technical information, the Shade Tree
staff is producing a loose-leaf Tree
Inspector's Field Reference Notebook
of current bulletins and fact sheets
from the University of Minnesota and
other sources. We will continue to
provide new and updated information
in Overstory and at workshops in
coming years.
The full-day programs, including
lunch, breaks and the field notebook,
will cost $30.00 if you register by
February 7,1990. Registration mater-
ials for all Tree Inspector Workshops
were mailed in early January.
Choose workshop, mark your calen-
dar and set aside funds in your 1990
budget for this valuable educational
opportunity. If you did not receive
materials in the mail or have questions
about registration, call Nancy Harvey
at the Minnesota Extension Service,
1-800-367-5363. Questions about
course content or certification status
should be directed to the Shade Tree
staff at (612) 296-3349. We look for-
ward to meeting with you.
Ken Holman
Minnesota Department of Agriculture
February 14 & 15 Hamel
March 20 & 21 Crookston
March 27 Marshall
March 28 Morris
April 4 Hibbing
April 7 St. Paul
April 11 Rochester
For more information contact:
Crookston Workshop/ Phil Baird (218)
281-6510; Other Workshops/Nancy
Harvey 1-800-367-5363.
1
Contact System/Lobbying Efforts
Expanded for 1990
by Larry Bakken
The Legislative Coordinating Commit-
tee (LCC) is in its third year of opera-
tion. Its major task is to provide over-
sightand policy guidance for the Legis-
lative Contact Program which is also
beginning the third year. Membership
on the LCC is automatic for policy
committee chairs and AMM's officers.
Other Board Directors may belong if
they choose. Current members are:
Vice President Larry Bakken (Chair)
Glorida Vierling (Vice Chair), President
Walt Fehst, Past President Gary Bas-
tian, Karen Anderson, Bill Barnhart,
Mark Bernhardson, Kevin Frazell,
Carol Johnson, Sharon Klumpp, and
Bob Long.
The legislative contacts and the
contact system were a great success
in 1989. The final special session tax
bill was very similar to the vetoed tax
bill in respect to amount of property
tax relief for metro homeowners and
businesses and the relief split between
metro and outstate. For the first time in
recent years the tax bill recognized
the greater need in the metro area and
responded to that need.
1990 was supposed to be a quiet
year, however, two happenings sug-
gest that our efforts must increase
even more than 1989. First, there will
be a significant effort to increase and
make permanent Tax Base Equaliza-
tion Aid which does not consider ser-
vice level or need but merely property
wealth. Secondly, there will be at least
a $161 million state budget shortfall
which mayjeopardize the current level
of state aids to local units.
Because of this need plus the legis-
lative intent to 'do something signifi-
cant' in the areas of TIF, Land Use,
Comparable Worth and Solid Waste
Management the other four higher
priority issues set by the AMM Member-
ship, the LCC and Board felt it was
appropriate to investigate the addition
of a consultant lobbyist for the session.
To that end an Enhanced Lobbying
Subcommittee was established that
interviewed several consultants.
Based on the interviews the LCC de-
veloped a team concept which in-
cludes current AMM staff and consul-
tants John Boland and Gene Ranieri,
each of whom possess a unique set of
credentials and abilities. The team will
work with the legislative contacts to
ensure that the AMM positions on
Larry Bakken
1990 key issues are well communi-
cated to the metro area legislators and
leadership.
To initiate this activity, the LCC is
once again planning a series of Legis-
lator and Local Officials breakfasts.
These will be held on Saturday morn-
ings from 9 to 10:30 a.m. atthe Hopkins
House, January 27; the Holiday Inn
East, February 3; and the Holiday Inn
North (Brooklyn Center), February 10.
Meeting information and invitations
have been sent to city contact persons
and these breakfast meetings are open
to all council and key city staff persons.
The agenda includes presentation and
discussion of the five key legislative
issues and informal discussion with
area legislators.
The LCC has established a Media
Subcommittee to analyze how to uti-
lize existing vehicles of communica-
tion; i.e., newspapers, bulletins, etc., to
deliver the message and to develop
methods for P.R. and news releases.
The committee includes Karen Ander-
son, Larry Bakken, Gary Bastian, Mark
Bernhardson, and Bob Long.
Finally, the LCC has spearheaded
an effort to meet with policy makers
from the Coalition of Greater Minne-
sota Cities. One such meeting has
taken place and a second is being
planned. This is an attempt to foster a
better relationship with outstate cities
and to explore possible agreements
on various issues, especially TIF and
property tax. The primary goal is to
see if accommodations can be
reached to avoid major confrontation
between outstate and metro cities at
the legislature.
State to Launch
Comprehensive
Insurance Package
for Public Employees
A comprehensive insurance pack-
age for public employees was
launched recently by the state of Min-
nesota. The Public Employees In-
surance Plan will be offered statewide
to more than 183,000 public workers
and will include medical, dental and
life insurance coverages.
The Public Employees Insurance
Plan (PEIP) was created by the Legis-
lature to provide more uniform in-
surance coverage for public employ-
ees, regardless of the size or location
of their jurisdiction. "We're very
pleased the state has been able to
provide public employees of our cities,
counties, towns and school districts
with an opportunity to have uniformly
dependable, affordable insurance pro-
tection," stated Governor Rudy Per-
pich.
"It was our intent that with parti-
cipation of large numbers of public
employees, benefits could be pur-
chased at more stable and competi-
tive rates than would contracts for an
individual employer or group," said
Representative Wayne Simoneau,
Chief House author of the bill.
According to Nina Rothchild, Com-
missioner of Employee Relations,
PEIP consults with a 10 -member
labor-management committee and is
administered by the Minnesota De-
partment of Employee Relations. It is
also backed strongly by public em-
ployee groups such as Minnesota
Education Association (MEA) and
American Federation of State, County
and Municipal Employees (AFSCME).
"It's been a long struggle to get this
program running, but we are now
satisfied we have a much needed,
competitively priced product," she
said.
Officials also noted this is not the
same plan as the State Health Plan.
Comprehensive coverage is avail-
able to eligible employees of towns,
counties, cities and school districts.
Retirees of participating groups are
also eligible for medical and dental
coverage. While individual public em-
ployees can request PEIP insurance,
the ultimate decision on participation
in the program must be made by the
employer or the exclusive labor repre-
sentatives. For more details, call 1-800-
829-5601.
'AMM Board
j Directors
DAVE CHILDS
Dave Childs, New Brighton City
Manager, was appointed to the AMM
Board of Directors in January of 1989.
He has been an active participant in
AMM activities for manyyears, includ-
ing eight years of service on the Gen-
eral Legislation Committee. He also
serves on the League of Minnesota
Cities Development Committee. Dave
became City Manager in New Brighton
May 1, 1989, after serving as Manager
in the City of St. Anthony for eight
years. Prior to that he was administra-
tor in Blue Earth for three years and
held various planning positions in Ari-
zona for four years. He received his
Bachelor's Degree from Mankato State
University in 1973 and a Master of Arts
Degree in Urban and Regional Studies
in 1974, also from Mankato State.
He is a member of the International
City Management Association, a char-
ter member of the American Planning
Association, a Past President of the
Metropolitan Area Manager's Associa-
tion, and current Secretary Treasurer
of the Minnesota City Managers
Association. In addition to these pro-
fessional memberships, he has been
an active participant and office holder
in: the Community Associations Insti-
tute, State President 1986; St. Anthony
Kiwanis Club, President 1985; St.
Anthony Chamber of Commerce, Board
Director 1984-88; North Suburban
Gavel Association, Vice President
1987; and Municipal Caucus, Trea-
surer 1985.
He has received a number of distin-
guished service awards from Kiwanis,
was United Way Chairman from 1982
to 1988, and a Cub Scout and Webelow
Leader in those same years.
Dave's wife Barbara is a Managed
Care Consultant for Northwestern Na-
tional Life Insurance Company. They
enjoy hiking, golf, water sports, down-
hill skiing, travel, good music, good
books, and two Siberian Husky pup-
pies. d,
BONNIE BALACH
Bonnie Balach was appointed by
Mayor George Latimer to serve as part
of the City of Saint Paul's intergovern-
mental relations team in January, 1988.
She began as a research assistant but
her duties were rapidly expanded to
include lobbying the state legislature
and staffing the Mayor on large pro-
jects. Since the end of the last legisla-
tive session, she has headed up the
entire intergovernmental relations'
effort for the City.
Prior to working in the Mayor's
office, Bonnie was employed by the
Minnesota House of Representatives.
Other past employment includes two
years as an undergraduate research
assistant, University of Minnesota,
while she pursued her two majors of
economics and philosophy; and con-
struction manager for a chain of retail
clothing stores.
Bonnie was elected to the AMM
Board of Directors this spring and has
served on several AMM committees,
including General Legislation and Per-
sonnel and Economic Development
and Housing. She was a member of
the special subcommittee dealing with
community residential facilities and
has more recently become involved
in the subcommittee on tax increment
financing.
Bonnie has been appointed by St.
Paul Mayor Jim Scheibel to serve'as
part of his intergovernmental rela-
tions' staff. She is married to Jack
Shapiro and has one fifteen -year-old
daughter, Tanya.
T-1 7
BILL BARNHART
Bill Barnhart was elected to the
Board of Directors in May of 1989.
This marks the beginning of Bill's
second decade of involvement with
AMM, which began in 1978. Bill serves
on the Housing and Economic Develop-
ment Committee, the Metropolitan
Agencies Committee and the Legisla-
tive Coordinating Committee.
Bill began with the City of Min-
neapolis in 1974 in the Planning De-
partment and was assigned to Grant
and Program Coordination in 1978.
From 1982 to the present he has been
with the Intergovernmental Relations
Office. He interacts with other local
government officials and lobbies on
infrastructure issues.
Bill is a Minnesota native, coming
from a farming community in southern
Minnesota. He obtained both his
Bachelor's Degree and Master's
Degree from Mankato State University.
His Master's Degree is in Urban
Studies and included working for the
City of North Mankato for one year.
In the past year, Bill chaired a
special subcommittee for the Metro-
politan Agencies Committee which
developed the most comprehensive
set of policies on solid waste that any
governmental organization has adopt-
ed. The policies begin before materials
become I waste, deal with the best
methods to handle the waste, includ-
ing hazardous waste, address financ-
ing and governmental organization,
and then conclude with how to address
the problems associated with the var-
ious waste facilities. An outgrowth of
this activity is that Bill was recently
appointed to the Governor's Select
Committee on Packaging and the
Environment for AMM.
He and his wife Carol and their two
children live in south Minneapolis. His
main outside interests are softball,
mountain hiking, and downhill skiing.
1—ISa�
Pat & Holly Monahan
4255 Orchid Lane N
Plymouth, MN 55446
January 24, 1989
Mr. Richard Carlquist
Chief of Police
City of Plymouth
3400 Plymouth Blird
Plymouth, MN 55447
Dear Mr. Carlquist:
This is just a quick thank you note to you and your
department for the effort extended in finding my mother's
lost dog over the week -end (Sheltie -male).
As it turned out the dog was found yesterday morning,
Tuesday, January 23rd and returned to us by Chris Wagner
your Community Service Officer.
Chris assisted us Sunday afternoon when the dog was first
spotted and was extremely helpful and instrumental in the
dog's return home.
We wish you would extend our sincere thanks and gratitude
to Chris for the concern and help she showed during the
search.
Sincerely,
Pat and Eo11Y Mahan
CITY OF
PLYMOUTH -
January 30, 1990
Officer R. Luke Way
Plymouth Police Department
SUBJECT: LETTER OF RECOGNITION
Dear Luke:
In reviewing a recent medical call that you responded to, and
checking with Sergeant Rogers, I have concluded that your
performance was worthy of special recognition.
The medical call involved a victim suffering from severe
depression caused by severe emotional issues, not the least of
which was a SIDS death of her daughter in 1987. l
I understand that she has recently displayed suicidal tendencies
and was quite hysterical upon your arrival. Through your caring,
sensitive demeanor you were able to calm the victim and reduce
her anxiety dramatically.
Your ability to deal with persons undergoing extreme behavioral
conditions is one of your strongest suits as a police officer.
Thank you for doing such a good job. Your continued pursuit of a
degree in psychological counseling is a well chosen path for you
to.pursue.
Sincerely,
Richard J. arlqu' t
Public Safety Director
Plymouth Police Department
RJC/sb
cc: James G. Willis - City Manager
Personnel File
3400 PLYMOUTH BOULEVARD, PLYMOUTH. MINNESOTA 55447, TELEPHONE (612) 559-2800
Jan. 26, 1990
Dick Carlquist/Public Safety Director
City of Plymouth
Dear Dick:
Thank you for arranging my "ride along" with Sargent Ron Foreman on
Friday, Jan. 19th. Although according to Ron "it was a fairly quiet
evening", we managed to be involved in: a report of a knife pulled on a 10
year old, picking up sheet rock "dumped" by some "ass----" (my descrip-
tion) in the middle of the road, responding to two alarms, pulling over two
vehicles with faulty brake/running lights, observing a DWI test, and giving
an intoxicated citizen a ride home.
Although I'm not fond of the expression "second to none" when it comes
to public buildings, I can say that the attitudes of our police officers are
indeed "second to none!" I think its common knowledge that Plymouth is
running "lean and mean", and that is not all bad considering most of
private enterprize is run that way, and certainly taxpayers expect the
most out of their taxes. Speaking for myself, (and I think for the majority
of the council) I do not want to spare dollars if the public is at risk when
it comes to safety.
I encourage you to push ahead with Plymouth's efforts in achieving
National Accreditation. I expect that whatever resources you need to
accomplish this post haste will be communicated to the city manager, so
that as a council we can act on your requests.
Looking forward to my next "ride along", and a big "Thank You!" to Ron
for putting up with a "rookie".
Yours Truly,
Kim M. Bergman/Mayor
cc: Jim Willis
Ron Foreman
Kingsview Heights
P. 0. Box 42043
Plymouth MN 55447
January 19, 1990 .%W
City of Plymouth
3400 Plymouth Blvd.
Plymouth MN 55447
Attn: Mr. John Sigfrinius
Community Service Officer
Re: Lot 5, Block 7, Kingsview Heights, 2nd Addition
Dear Mr. Sigfrinius:
z-1'la,
Homeowners Assoc.
Al (24,711 AL4
I contacted you 11/28/89 regarding the debris -that had accumulated on the
subject property and requested that the city get involved with the owner to
force them to remove it. As I understand it, there are city ordinances
controlling weed height, debris, etc. on vacant residential lots and we are
looking to you to help us get this property cleaned up.
Homeowners around the subject property (2nd lot -west of Harbor Lane on the south
side of 44th Ave. No.) have complained to me about the situation and requested.
that the Homeowners Association get involved. My original intent was to just
contact the owner and work with them. City records show them to be Wirtjes
Construction Co. at 4230 Juneau Lane. However, the people currently living
there are not associated with the firm. Further, phone books and directory
information contain no reference to them either. Needless to say, I have been
unable to locate them.
As a result, I contacted you for your assistance on 11/28/89 as noted earlier.
However, you did not get back to me in two to three weeks as promised during
which time you said you would check into this. Also, you have not returned the
messages I've left on your answering machine. This property is a real eyesore
and needs attention. Please look into this and get back to me with what will be
done as soon as you can .
Thank you very much.
Sincerely, l
Randall R. Nord
President
Kingsview Heights Homeowners Assn.
(H 553-7897 W-574-5130)
cc: Maria Vasiliou, City Council Member
Mr. & Mrs. T. W. Johnson, 14510 43rd Place, Plymouth
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PERSONS ARRESTED -SUSPECTS -WITNESSES 4 ADDITIONAL DETAILED REPORT ON CONTINUATION SHEET
1/30/90
Harstad Construction Co.
1900 Silver Lake RD.
New Brighton, Mn, 55112
Dear Sirs,
CITY C�
PLYMOUTH+
5-19 ck
This notice is to inform you, the property owner and/or
occupant, that the Department of Public Safety is investigating
a condition which exists on your property that constitutes a
public nuisance. An inspection of the -premises was made by a
Community Service Officer who observed a violation of the
Plymouth City Code 2010.01, Nuisances. --A copy of this -ordinance
is provided for your reference..
Please find enclosed with this letter a public nuisance
inspection report which details the. specific violations that
were observed on the premises. We request that you make the
necessary changes to comply with the city ordinance before the
indicated reinspection date. _.
If you have
Department at
matter.
Sincerely,
any questions, please contact the Plymouth Police
559-2800. Thank you for your cooperation in this
Steven Sorrell, &rvices Supervisor
PLYMOUT POL E/DEPARTMENT
� I
60m)--u
John Si rinius
nity Se ice Officer
JS: kb
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MINNESOTA 55447, TELEPHONE (612) 559-2800
City of Plymouth
Department of Public Safety
PUBLIC NUISANCE REPORT
DATE 1/30/90
TU HarstaA rniy;trnrrfinn Co.
1900 Si l\lpr T.Alra Pd
New Brighton, MN
RE: Property located at:
INSPECTION DATE: l.,-4n44n
OBSERVATIONS: The following violations were observed:
14505 44th Ave. N.
Junk and debris(lumber and other-misc. building materials), brush,
and what appears to be a tree house on the n end of the lot.
ij,tv,q-
NECESSARY CHANGES: The following changes need to be made before the reinspection
date in order to abate the nuisance:
Remove all rubbish from the lot including the brush,building materials
and the tree house.
REINSPECTION DAT
Thank -you!
OFFICE
cer
WEST SUBURBAN MEDIATION CENTER' T-19 b
32 Tenth Avenue South, ;Suite 211, Hopkins,'MN 55343 (612) 933-0005
December 20,1959
Mayor and City Council
City of Bloomington
2215 W. Old Shakopee Road
Bloomington, Minnesota 55431-3096
Attention: City Manager
Dear Mayor and Council Members:
On December 14th. the final decision was made by Hennepin County not
to fund the West Suburb an. Mediation Center, the North Hennepin .-Vediation
Project and the Minneapolis Mediation Program due to funding constraints
on the part of the County Beard.
The County funds represented one-third of our 1990 budget; support from
nine municipalities represented another third and the remainder was to be
raised by grants, corporate :ontributions and community organizations.
Just as our Center increased its mediations and conciliations 115% ,rver
1988, the sudden, unexpected funding loss has been a shock.
We plan to continue providing our services to residents of your."*.
community. Additional efforts will be made to mak- up for the unexpected
shortfall. Any suggestions you might have would b�'appreciated.
Thank you for your support and interest..
Sincerely,
Susan A. Nelson
Executive Director 1,4 ,
!9-r� �-
GJ S M C • ZI OY%
SAN/vm
cc: Lorinda Pearson/
'.. � I k-L- - - City of
- _aGrove
9401 Fernbrook Lane, Maple Grove, Minnesota 55369-9790 612-420-4000
January 19, 1990
Honorable Kim Bergman
Mayor
City of Plymouth
3400 Plymouth Boulevard
Plymouth, MN 55447
Subject: Elm Creek Interceptor Study
Dear Mayor Bergman:
Maple Grove is happy to report that progress has been made on getting the Elm
Creek Interceptor Study off the ground! Thanks to your letters, resolutions,
telephone calls, and super legislative support from Representative Bill
Schreiber, Senator Patrick McGowan, Representative Warren Limmer, and Met Council
Member Kenneth Kunzman, the MWCC and Met Council Chairs have agreed to support
an amendment to the MWCC Implementation Plan, Years 1990-2010. This would allow
a study to be completed in 1990 on the Elm Creek Interceptor.
MWCC staff anticipates that it will take about six months to amend the
Implementation Plan, complete a Systems Inventory Study (SIS), develop a request
for engineering proposals, and select a consultant to do the study. An
additional four to five months would be required for the consultant to complete
the study, so the target completion date would be December 1990.
On behalf of the City of Maple Grove, I would like to thank you
of this most important study for the northwest Hennepin County
and continued support will be necessary to ensure completion
1990.
Sincerely,
(�cfJ'•caµC_
James P. Deane
Mayor
JPD:GEB:cw
cc: Mr. James Willis, City Manager
Mr. Fred Moore, Director of Public Works
"Serving Today, Shaping Tomorrow"
AN EQUAL OPPORTUNITY EMPLOYER
James Deane David Burtness Charles F. Dehn DonaldJ. Ramstad
Mawr Councilmember Councilmember Councilmember
for your support
area. Your input
of this study in
Donna Ryon
Councilmember
STATE OF
" tDEPARTMENT
OF NATURAL
METRO REGION FISHERIES, 1200 WARNER ROAD, ST.
PHONE Nq-612 ) 296-2959
Association of Medicine Lake Citizens
Bonnie Kerschke
30+0 Larch Lane N.
Plymouth, MN 55441
Dear Ms. Kerschke,
T-i9d
R E S O llfikfiEfi
PAUL. WWOW6
aft ammo.
PUBW WM OI3iEt,1 N
OctoberF1014CEDIRW
P1RAWM DIRE=
FMC SAFETY D4M=
aMiNiBTAA K ASNW
FM CDYM M
AfffamOn 9 October 1989 Gerald Johnson (former Assistant 'fes
Aquatic Plant Management Specialist) and myself surveyed
Medicine Lake to determine the distribution of Eurasian water
mil+ oil throughout the lake. This survey was performed
following the discovery of two rooted Eurasian water mil+oil•
plants adjacent to the City of Plymouth's swimming beach/park
in the southeast corner of the lake on 30 September 1989.
The littoral zone was investigated along the entire shoreline
and no additional areas were found to be infested with
Eurasian water mil+oil.
At this time an attempt to eradicate (or at least keep
in check) Eurasian water mil+oil from Medicine Lake appears
plausible. Permits have been obtained for similar
infestations in the following lakes: Zumbra, Independence,
Rebecca, White Bear, and Bald Eagle. I have included an
application for aquatic nuisance control. Please complete
the application and return it to me in the spring of 19909
and allow at least two weeks for processing. Treatment with
2,4-D granules in the spring is recommended, and the maximum
area allowed to be affected is generally limited to no more
than 5 acres. Presently it appears the DNR will have funding
available to assist with the cost of such treatments, and the
permit application fee may be waived. Please contact Steve
Colvin (Ecological Services, 296-0786) who is temporarily
handling financial assistance and fee waivers for additional
information.
Successful control of Eurasian water mil+oil in Medicine
Lake will require continued surveys. Lake residents and
users should always be on the lookout for Eurasian water
mil+oil. In addition, the homeowners association would be
advised to perform two intensive annual surveys to locate any
new areas of infestation. This office will continue to be of
assistance, but cannot survey area lakes on a regular basis
due to personnel and time limitations. I have enclosed
various mil+oil information, including sketches that may be
distributed to lake residents to aid in the identification
and distinction of Eurasian and native water milf oils. I
have enclosed additional copies of this letter, please
distribute them to interested members of the lake
association.
AN EQUAL OPPORTUNITY EMPLOYER
.,-�-- max;: -�..- '• -
I (9 d
,s 2
Please contact this office if you have any further
questions.
Sincerely,
Christopher R. Domeier
Aquatic Plant Management Specialist
88/cc: Steve Colvin -Ecological Services
Wayne Barstad-Ecological Services
Steve Enger-Ecological Services
Kathleen Wallace -Regional Administrator
Duane Shodeen-Regional Fisheries Manager
Bruce Gilbertson -Area Fisheries Manager
Gerald Johnson -Metro Fisheries
Jim Konrad -Area Conservation Officer
*3J%r. &,citn _ ►iein+nee►e QarK>
i.ii':`•fi�:$i3—^..y�i?r'lr.n:�'tT.rS :r••.' -Jt .�.-'Si�..:.n i(r!�.•tia i ..� �. e.. `17 :a. Cf Yre ..
OLSON, GUNN A NTD SER.AN, Ltd:
315 peavey Building
LAW OFFICES 730 mond Avenue South
Minneapolis, Minnesota 55402-2473
612-339-8846
January 19, 19!
The Honorable Kim Bergman and Members
of the City Council
City of Plymouth
3400 Plymouth Boulevard
Plymouth, MN 55447
Dear Mayor Bergman and City Council Members:
Z -19e_
I am writing on behalf of Eugene Paulsen in connection with
the property he owns at 11318 State Highway 55. In the past
18 months, Mr. Paulsen has had several offers to purchase or to
lease his property. In each case, the interested parties have
been informed by the City of Plymouth that the City would like to
see a larger development encompassing the adjacent parcels as
well, and that in any event a new road will most likely be built
through the middle of the property sometime in the next five
years. As a result, all of these interested parties have
withdrawn their offers.
More recently, Mr. Paulsen entered into an agreement to sell
his property to Dwight Larson, who owns the adjoining land to the
west. We are most anxious to cooperate with Mr. Larson and the
City of Plymouth, but it appears that Mr. Larson has also been
informed that he cannot utilize Mr. Paulsen's land for his
intended use because the City intends to put a road through the
property.
Mr. Paulsen has a substantial mortgage on the property, and
he has borrowed additional funds in order to pay the mortgage,
property taxes, and other expenses. The mortgage balloons in May
of 1990 along with the rest of the obligations. He has been
advised that because of his age and physical condition he will
not be given an extension.
We believe that all of the uses proposed for Mr. Paulsen's
property have been consistent with the City's applicable land use
regulations. Yet the City's actions have effectively rendered
the property unmarketable. This has caused a serious hardship to
Mr. Paulsen, and a taking or damaging of his property rights.
Wayne H Olson Aky= B. Seran Harold R Sheff
Richard J. Gunn David R Knodell M' helle J. Ulrich
Bradley J. Gunn
I -19e. .
The Honorable Kim Bergman and Members
of the City Council
Page 2
January 19, 1990
We respectfully request the City to commence condemnation
proceedings to compensate Mr. Paulsen for his damages. We will
be happy to meet with any of your representatives to try to
resolve this problem.
Very truly yours,
OLSON, GUNN AND SER�AN, LTD.
By
Richard J. Gunn
RJG:C11
January 30, 1990
0
Mr. Richard J. Gunn -�
Olson, Gunn, and Seran, Ltd.
315 TV Building
730 Second Avenue South
Minneapolis, MN 55402-2473
SUBJECT: EUGENE PAULSON PROPERTY AT 11318 STATE HIGHWAY 55 - YOUR LETTER TO
MAYOR AND CITY COUNCIL OF JANUARY 19, 1990 (35-14-0005)
Dear Mr. Gunn:
Mayor Bergman has referred your January 19 letter to the Community Development
Department for review and response. During the past year, the following has
transpired with respect to Mr. Paulson's captioned property involving the City
of Plymouth:
1. The City Council approved a Site Plan and Conditional Use Permit for
Holzer's Imported Car Service on February 27, 1989, to occupy Mr.
Paulson's site. There was no condition involving any larger development
or any new road that would impact the site encompassed with this approval.
I am not certain why Holzer's decided not to proceed with their approved
proposal. I have heard elsewhere that it was their intention to sell cars
from this location as well, and the Conditional Use Permit they requested
did not include the sale of automobiles.
2. Three parties have met informally with the Development Review Committee
that I Chair with sketches for the development of Mr. Paulson's site since
the approval of the Holzer's proposal last year. One party, Jeff
Carlstrom, has met three separate times with the Development Review
Committee regarding alternative sketch designs for the site. To date, no
formal applications have been made for development of Mr. Paulson's site
since the one by Holzer's Imported Car Service.
3. One of the purposes of the DRC informal review process is to advise
potential project developers of related codes, ordinances, and plans of
the City that may impact their project design. The concept is for the
project developers to have knowledge of these factors during their
earliest design phase to avoid the expense of revisions to more complete
formal plans to meet those codes, ordinances, and plans at a later stage.
The need for an improvement to the north service road to Highway 55,
particularly with respect to the intersection of that service road with
West Medicine Lake Drive in its general vicinity, has long been recognized
by the Plymouth Thoroughfare Plan. We have, in the case of development
interests making informal proposals for this and the other sites in this
immediate vicinity, indicated that the need for this north service road
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MINNESOTA 55447, TELEPHONE (612) 550-5000
Page Two
improvement will increase over time and that, at some future point, a road
improvement will likely be constructed. The purpose of that advice has
been do encourage developers to coordinate their development plans with
the future alignment for this service road rather than focus exclusively
on the existing deficient alignment. ._
We have further indicated that the only approved plans to accomplish the
realignment of the north service road as it approaches West Medicine Lake
Drive were a function of the Marcus Development proposal, that included
Mr. Paulson's site as well as several other properties surrounding Mr.
Paulson's site. That particular alignment contained the geometrics
responsive to proper street design to accommodate the relocation of the
intersection of the north service road with West Medicine Lake Drive far
enough north to provide for a properly functioning intersection.
The Marcus proposal did not proceed and, thus, there has been no
development ordered for any road. Also, the Marcus road design is not -
and has not been represented as - the only alternative. Actual design
will ultimately be a function of actual development.
4. There has been no suggestion that the City of Plymouth would withhold
approval of, or in any other way, attempt to impact Mr. Paulson's property
to accomplish the service road realignment. In fact, as noted above, the
development proposal for Mr. Paulson's property made by the Holzer's
Imported Car Service contained no specific conditions with respect to the
service road alignment.
5. Of the several uses that informal development proposals have suggested for
Mr. Paulson's site, most have been either permitted by right, or allowable
with a Conditional Use Permit. In virtually every instance, however, due
to the confined nature of the site, and the residential zoning immediately
to the north, variances to the Zoning Ordinance with respect to structure
and parking setbacks have been implied by the plans that have been
presented. In most cases, several variances have been implied. We have
advised prospective developers, as we always do regardless of the site,
that development plans that imply variances to the Zoning Ordinance are
required to meet the six criteria of the Zoning Ordinance that must form
the findings -for any variance. I have enclosed herewith a copy of that
portion of the Zoning Ordinance that addresses the six variance standards.
6. I do not recall Mr. Paulson, or any representative of Mr. Paulson, having
attended any of the Development Review Committee meetings with prospective
developers of Mr. Paulson's property over the past year.
I will continue to review informal proposals from any developer seeking to
develop Mr. Paulson's property unless advised by Mr. Paulson that this is
inappropriate. I will continue to advise any such developer of the City
codes, ordinances, and plans that could potentially impact his/her formal
application for development of the site. We have not in the past, nor will we
in the future, in any manner_, suggest to a prospective developer that a
specific roadway improvement plan will render Mr. Paulson's site unbuildable
or specifically impact Mr. Paulson's site at any particular point in the
r�
Im
I-I9e
Page Three
future.
You may be aware that Mr. Paulson and Mr. John Karos, an attorney, met with_
the City Manager and the Community Development Director last week. I attended
that meeting and can confirm that Mr. Paulson was presented with this
information and assurances.
Also, I have not been able to ascertain who informed Mr. Larson of the
"constraints" on the Paulson land. Mr. Larson is aware of the Marcus plan, of
course, since his land, too, was part of the Marcus development.
Current capital improvement plans do not call for construction of the frontage
road within the next five years; thus, I doubt the City will have any reason
to unilaterally initiate condemnation proceedings, unless approved private
development proposals so require.
Should you have any additional questions or concerns regarding this matter,
please do not hesitate to contact me.
Sincerely,
Charles E. Dillerudj
Community Development CotrF� nator
cc: City Manager James G. Willis
Public Works'Director Fred Moore
File 35-14-0005
(pl/cd/35-14-0005:dl)