1984-03-27 CITY OF MOUND
MOUND, MINNESOTA
A~]~NDA
MOUND CITY COUNCIL
REGULAR MEETING
7:30 P.M., TUESDAY, MARCH 27, 1984
COUNCIL CHAMBERS
Approve Minutes of March 13, 1984, Regular Meeting
PUBLIC HEARING; Delinquent Utility Bills
for March
~UBLIC HEARING; Proposed Year X Community
Development Program - Total Funds Available $76,870
CASE #84-910 - Mr. & Mrs. Henry Paumen, 5657
Grandview Blvd., Lots 108 & 109,
Mound Shores
REQUEST: Lot Split
Consideration of a Request to Increase Mound Fire
Department Relief Pensions to $240.00 per month,
Effective 7-1-84 and $250.00 per month, Effective
1-1-85
Request to Conduct Soil & Survey Analysis on Town
Square Development Site
Comments & Suggestions from Citizens Present
.~Application for a Bingo Permit - Mound Fire Dept.
Auxiliary
Suggested Goals & Objectives for Public Works
Building Study Committee and suggestions from the
Council on possible appointees
Pg. 597-607
Pg. 608
Pg. 609-660
Pg. 661-666
Pg. 667-669
Pg. 670-685
Pg. 686
Payment of Bills
INFORMATION/MISCELLANEOUS
Pg. 687
Ae
Letter Confirming Watershed District Grant to
City for $3,000.
Pg. 688
B. Westonka Chamber Announcement
Pg. 6 89
C. Planning Commission Minutes
Pg. 690-692
Progress Report on Water Meters & Outside
Readers - Greg Skinner
Pg. 693
Page 595
E. Gambling Report - Legion Post #398
F. Westonka Senior Citizens Letter
G. Metropolitan Council Review - March 9,
H. Interesting Anonymous Letter
I. Labor Market Bulletin
J. Letter from City of Excelsior
K. AMM Bulletin
L. District #277 School Board Minutes
M. Article on Public Finance
N. Redesign Bulletin on Housing
O. APA Announcement
1984
Pg. 694
Pg. 695
Pg. 696-697
Pg. 698
Pg. 699-702
Pg. 703-704
Pg. 705-710
Pg. 711-712
Pg. 713-717
Pg. 718-730
Pg. 731
Page 596
43
March 13, 1984
REGULAR MEETING
OF THE
CITY COUNCIL
The City Council of Mound, Hennepin County, Minnesota, met in
regular session on March 13, 1984, at 7:30 P.M. in the Council
Chambers at 5341Maywood Road, in said City. Those present were:
Mayor Bob Polston, Councilmembers Phyllis Jessen, Gary Paulsen
and Russ Peterson. Councilmember Pinky Charon was absent and
excused. Also present were: City Manager Jon Elam, City
Attorney Jim Larson, City Engineer John Cameron, City Clerk Fran
Clark, Building Inspector Jan Bertrand and the following
interested citizens: Frieda Olson, Paul Withers, Oswig Pflug,
John Morgan, Peter Zubert, Chris Gerold representing Frieda
Olson, Bill Magrand and Larry Connolly.
The Mayor opened the meeting and welcomed the people in
attendance.
MINUTES
The Minutes of the February 28, 1~84, Regular Meeting were
presented for consideration. Councilmember Paterson noted a
correction on Page 37, Resolution #84-38 should not have read "to
concur wi'th the Planning Commission recommendation".
Peterson moved and Jessen seconded a motion to approve the
Minutes of the February 28, 1984, Regular Meeting, as
corrected. The vote was unanimously in favor. Motion
carried.
PUBLIC,HEARING; ,PROPOSED IMPROVEMENT OF DENBIGH ROAD
The City Engineer explained that the proposed improvement of the
now private portion of Denbigh Road would make this road 18 feet
wide from the back of the curb to back of the curb. Putting in a
cul-de-sac'was impossible due to the limited space available.
The road would be 22 feet from the nearest garage with an
es.timated cost of $23,900.00. He then explained the City of
Mound's assessment policy to the public.
The Mayor opened the public hearing and asked for any comments
for or against the proposed improvement of Denbigh Road.
FREDA OLSON - 4414 Wilshire Blvd. stated that she would not
benefit from this road because her driveway is on
Wilshire Blvd. and she never uses Denbigh. Also that
the road would be within 22 feet of her house and would
depreciate her value.
March 13, 1984
PAUL WITHERS - 4416 Denbigh Road, asked'what the engineer had
planned for the end of this road.
The City Engineer answered that a dead end road is
planned because it would be a safety hazard to bring
this road onto Wilshire Blvd. and being a dead end would
probably keep the traffic down.
OSWIN PFLUG - 4440 Denbigh Road, stated that he is completely
against the improvement of this road as it is proposed
because it would, only be 16 feet wide and would not
leave enough room for 2 cars to pass during the winter
when there is snow on the sides of the road. Parking
would also become a problem if the street were a public
street instead of a private road. If it were left a
dead end street people would have to turn around in
someones driveway which would cause a problem. As it is
now all the properties on that stretch of Denbigh have
easements to cross property to get to Wilshire Blvd.
JOHN MORGAN - 4400 Wilshire Blvd., stated that he is for the
Alternate A improvement because as it stands now people
are going out to Wilshire on his property. He has
checked his deed and has no private easements recorded
on it for people to use his property.
The City Attorney explained that the subject of those easements
is a private matter which does not concern the City. They are
private easements.
PAUL WITHERS, stated he would like to see the road put in and
be able to see what he is paying taxes for, i.e. snow
plowing, garbage service, etc..
PETER ZUBERT, 8238 Oregon Rd., Bloomington, MN., stated he
owns Lots 94, 95 and 96 and is against the road and the
assessment because his lots front on Wilshire Blvd. and
do not benefit from the road. The road may also have a
negative impact on the buildability of the lots with
streets on both sides of the lots. He is also against
the City'taking 15 feet of his property while taking
less on the other side of Denbigh.
The City Engineer explained that the reason they would be taking
more property on Zubert's side of the street is that they are
trying to keep the proper setbacks for the garages on the other
side of the street. The City Manager stated that Mr. Zubert may
not be able to get permission from the County to have a driveway
access on Wilshire because of the safety aspect.
45
le38
CHRIS GEROLD - attorney representing Freda Olson, stated that
it was his understanding that in order for the City to
assess someone for an improvement they had to benefit.
The City Attorney explained that we are here tonight only to-
consider if we should have an improvement.
FREDA OLSON - stated that the City would be taking more than
15 feet of her property on the curve for the road.
The Mayor closed the public hearing.
Councilmember Peterson thanked everyone for their comments and
the points brought out. He further stated that he felt when
equal amounts of land are not being taken from both sides of the
road, the people who have to give more should be compensated.
Councilmember Paulsen agreed.
Councilmember Jessen asked if there would be any on street
parking after the new street is installed. The City Engineer
answered no.. -
Councilmember Jessen questioned how many of the people who
originally signed the petition for the improvement were still in
favor of the road because there only appeared to be two people
present for the road, three against and the remainder on the
petition did not show up or comment either way.
Peterson moved and Paulsen seconded the following resolution:
RESOLUTION ~84-31
RESOLUTION TO DENY MAKING IMPROVEMENTS TO
A NOW PRIVATE PORTION OF DENBIGH ROAD THAT
RUNS EAST TO CARDIFF LANE
The vote was 3 in favor with Mayor Polston voting nay.
carried.
Motion
Mayor Polston stated that the City has spent $1,500 of taxpayers
money to get this far with this proposed improvement and he feels
before anymore of these petitions are presented, the citizens
should have more Of a consensus for a project so this work is not
done for nothing at a cost to the general taxpayers.
PUBLIC HEARING; ARVIN SENNE,'MARK JOHNSON, STEVE TESSMER. LOT 3,
AUDITOR'S SUBD. ~170, ~558 AUDIT.QR'S ROAD, CONDITIONAL USE PERMIT
FOR WHOLESALE AND ASSEMBLY OPERATIONS - CASE ~84-~0~
The City Manager explained that this request is for a Conditional
Use Permit for the rear portion of the building that houses the
House of Moy fronting on Auditor's Road. It is the space that
Watson was going to use for the arcade. The'area is proposed for
sailboard storage and sales center marketing area and an area for
March 13, 1984
a cabinet shop. The Planning Commission has recommended approval
of the conditional use permit with the following conditions:
1. No outside storage of any materials will be permitted·
No painting, staining, varnishing or similar activity
will be permitted on the premises.
No space within either business shall be subleased or
used by another party in any manner.
Expansion of the floor area of either business shall not
occur without modification of the conditional use
permit.
The alternate fire separation between the A-3 restaurant
and H-3 woodworking shop will be reduced from a 4 hour
occupancy separation to a 2 hour fire rated assembly
under the Uniform Building Code provisions for partition
'walls and structural members with a sound rating of 50
decibels. ~
Councilmember Paulsen asked what the difference was between
manufacturing and assembly. The City Attorney stated there are
no defintions in the zoning ordinance to clarify this point.
The Mayor opened the public hearing and asked for comments from
the citizens present. There were none. The Mayor closed the
public hearing.
Councilmembers Jessen .and Paulsen asked the applicants how they
would be disposing of scrape and sawdust. The applicants replied
they have a 1 cubic yard dumpster and a dust collector hooked to
each machine that empties into one area. They also stated they
would be cleaning the shop daily.
Peterson mbved and Jessen seconded the following resolution:
RESOLUTION #84-32
RESOLUTION TO APPROVE A CONDITIONAL USE
PERMIT FOR A CABINET SHOP AND 'SAILBOARD
STORAGE AND SALES CENTER - PID ~13-117-24
33 0005
The voted was unanimously in favor. Mo~ion carried.
PUBLIC HEARING; WARREN 0RTENBLAD, VACATE ALLEY ABUTTING WES!
SIDE OF LOT 36, MOUND ADDITION, PID ~14-117-~4 41 00)5, 5824
SUNSET ROAD - CASE ~84-304
The City Manager explained that this vacation is being requested
so that. the property owner may build a garage. The alley has
never been and never will be used. The Planning Commission has
46
March 13, 1984
a cabinet shop. The Planning Commission has recommended approval
of the conditional use permit with the following conditions:
1. No outside storage of any materials will be permitted·
2. No painting, staining, varnishing or similar activity
will be permitted on the premises.
No space within either business shall be subleased or
used by another party in any manner.
Expansion of the floor area of either business shall not
occur without modification of the conditional use
permit.
The.alternate fire separation between the A-3 restaurant
and H-3 woodworking shop will be reduced from a 4 hour
occupancy separation to a 2 hour fire rated assembly
under the Uniform Building Code provisions for partition
~walls and structural members with a sound rating of 50
decibels. -
Councilmember Paulsen asked what the difference was between
manufac%uring and assembly. The City Attorney stated there are
no defin%ions in the zoning ordinance to clarify this point.
The Mayor opened the public hearing and asked for comments from
the citizens present. There were none. The Mayor closed the
public hearing.
Councilmembers Jessen .and ~gulsen asked the applicants how they
would be disposi'ng of scrapXand sawdust. The applicants replied
they have a 1 cubic yard du~pster and a dust collector hooked to
each machine that empties into one area. They also stated they
would be cleaning the shop daily.
Peterson moved and Jessen seconded the following resolution:
RESOLUTION ~84-32
RESOLUTION TO APPROVE A CONDI%IONAL USE
PERMIT FOR A CABINET SHOP AND 'SAILBOARD
STORAGE AND SALES CENTER - PID ~13-117-24
33 0005
The voted was unanimously in favor. Mo~ion carried.
PUBLIC HEARING; WARREN ORTENBLAD, VACATE ALLEY ABUTTING WEST
SIDE OF LOT 36, MOUND, ADDITION, PID ~14-117-24 41 0055, 5824
SUNSET ROAD - CASE ~84-304
The City Manager explained that this vacation is being requested
so that the property owner may build a garage. The alley has
never been and never will be used. The Planning Commission has
March 13~ 1984
CHRIS GEROLD - attorney representing Freda Olson, stated that
it was his understanding that in order for the City to
assess someone for an improvement they had to benefit.
The City Attorney explained that we are here tonight only to
consider if we should have an improvement.
FREDA OLSON - stated that the City would be taking more than
15 feet of her property on the curve for the road.
The Mayor closed the public hearing.
Councilmember Peterson thanked everyone for their comments and
the points brought out. He further stated that he felt when
equal amounts of land are not being taken from both sides of the
road, the people who have to give more should be compensated.
Councilmember Paulsen agreed.
Councilmember Jessen asked if there would be any on street
parking after the new street is installed. The City Engineer
answered no.
Councilmember Jessen questioned how many of the people who
originaIly signed the petition for the improvement were still in
favor of the road because there only appeared to be two people
present for the road, three against and the remainder on the
petition did not show up or comment either way.
Peterson moved and Paulsen seconded the following resoiution:
RESOLUTION ~84-31
RESOLUTION TO DENY MAKING IMPROVEMENTS TO
A NOW PRIVATE PORTION OF DENBIGH ROAD THAT
RUNS EAST TO CARDIFF LANE
The vote was B in favor with Mayor Polston voting nay.
carried.
Motion
Mayor Polston stated that the City has spent $1,500 of taxpayers
money to get this far with this proposed improvement and he feels
before anymore of these petitions are presented, the citizens
should have more Of a consensus for a project so this work is not
done for nothing at a cost to the general taxpayers.
PUBLIC HEARING; ARVIN SENNE,'MARK JOHNSON, STEVE TESSMER, LOT 3,
AUDITOR'S SUBD, #170, 5~8 AUDITOR'S ROAD, CONDITIONAL USE PERMIT
FOR WHOLESALE AND ASSEMBLY OPERATIONS - CASE ~84-303
The City Manager explained that this request is for a Conditional
Use Permit for the rear portion of the building that houses the
House of Moy fronting on Auditor's Road. It is the space that
Watson was going to use for the arcade. The'area is proposed for
sailboard storage and sales center marketing area and an area for
47
March 13, 198~
recommended approval with the stipulation that all abutting
property owners be notified.
The Mayor opened the public hearing and asked for comments from
citizens present. There were none. The Mayor closed the public
hearing.
Paulsen moved and Jessen seconded the following resolution:
RESOLUTION #84-33
RESOLUTION VACATING CERTAIN ALLEY EASEMENT
BETWEEN GRANDVIEW BOULEVARD AND SUNSET
ROAD
The vote was unanimously in favor. Motion carried.
PUBLIC HEARING; DOW-SAT OF MN,, 2381. WILSHIRE B.LVD, CONDITIONAL
~S~ PERMIT TO. EXPAND EXISTING 40 FOOT TOWER TO A HEIGHT OF 80
FEET CASE ~84-~06
The City Manager explained that Dow-Sat would like to raise the
existing tower from 40 feet to 80 feet to increase reception on
local antenna stations here in Mound and to microwave
interconneting with other communities. The Planning Commission
has recommended approval with the following conditions:
Only lineal type antennas, excluding dish antennas, and
similar devices shall be attached to the top of the
structure and any other portion thereof.
Dow-Sat is presently utilizing their building under a
temporary occupancy permit with an expiration date of
June, 1984. In order to obtain a permanent occupancy
permit, minor building improvements need to be completed
and a landscaping plan must be submitted and approved by
the City.
Th'e applicant shall submit revised town analysis data to
the Building Inspector for review and approval.
Polston moved and Peterson seconded the following resolution:
RESOLUTION
RESOLUTION TO APPROVE A CONDITIONAL USE
PERMIT FOR THE EXPANSION OF THE EXISTING
~0 FOOT ANTENNA .SUPPORT STRUCTURE TO 80
FEET ON PROPERTY OWNED BY DOW-SAT OF
MINNESOTA, INC. - PID ~13-117-24 3~ 0071
The vote was unanimously in favor. Motion carried.
March 13, 1984
CASE ~84-309, JON SCHERVEN, ~71 COMMERCE BLVD., LOT 52, M & B
LYNWOLD PARK, LOT SIZE VARIANCE, PID #14-117-24 44 0039
The City Manager explained that a lot size variance was granted
when Mr. Scherven remodeled the front part of the building and
now he is asking for the same variance in order to remodel the
rear of the building. The Planning Commission recommended
approval at their meeting last evening.
Paulsen moved and Peterson seconded the following resolution:
RESOLUTION ~84-35
RESOLUTION TO CONCUR WITH THE PLANNING
COMMISSION RECOMMENDATION TO APPROVE THE
LOT SIZE VARIANCE AS REQUESTED FOR PART OF
LOT 52, LYNWOLD PARK ADDITION (2271
COMMERCE BLVD.) (PID ~14-117-24 qq 0039)
The vote was unanimously in favor. Motion carried.
CASE ~84~311~ CITY OF MOUND, SUBDIVISION/LOT SPLIT, LOT ~ BLOCK
1, RUSTIC PLACE, PID #23-117-24 31
The City Manager explained that this was part of the purchase
agreement when the Council approved selling the lots in Rustic
Place. The Planning Commission has recommended approval of this
subdivision/lot split as requested.
Paulsen moved and Jessen seconded the following resolution:
RESOLUTION ~84-36
RESOLUTION TO CONCUR WITH THE PLANNING
COMMISSION RECOMMENDATION AND APPROVE THE
FINAL SUBDIVISION OF LAND FOR LOT 3, BLOCK
1, RUSTIC PLACE .(FID #23-117-24 31 0075)
The vote was unanimously in favor. Motion carried.
DISCUSSION' OF CITY-HRA STAFF RELATIONSHIP
Councilmember Paulsen requested this item be put on the Agenda.
The Ci~ty Manager 'explained that he sees no problem or conflict
in his working with the HRA on any tax increment project, etc.
Councilmember Paulsen stated that he felt that the HRA will be
receiving an indirect subsidy from the City by having Jon work
for them as a consultant. He feit they requested a levy and
should use it to pay for the service of a consultant whether it
be Jon or whoever.
Councilmember Jessen stated that she supports the Manager working
with th9 HRA on these projects'.
49
M rch 13, 19B4
The City Manager presented a memo from City Planner Mark Koegler
estimating that the total costs for a preliminary feasibility
recommendation should not exceed $1,000. It also gave an
estimated timetable for the report.
The City Manager also presented the formal application from
Smiley/Glotter ASsociates requesting tax increment financing
assistance for the project identified as Town Square.
Councilmember Paulsen requested that the Council pass a motion
supporting the Manager working with the HRA and having him keep
the Council up-to-date on the progress.
Jessen moved and Peterson seconded a motion supporting the
position of the City Manager working with the HRA on tax
increment financing and asking that the Manager keep the
Council informed of the progress and the hours he is putting
in on this process. The vote was unanimously in favor.
Motion carried.
Paulsen~moved and Jessen second-ed a motion to accept the
application for tax increment financing assistance as
submitted by Smiley/Glotter Associates and refer it to the
HRA..The vote was unanimously in favor. Motion carried.
' POTENTIAL DUMP SITE IN MINNETRISTA
Councilmember Paulsen explained that he asked for this item to be
put on the Agenda so that the Council could take a position
against the potential selection of Minnetrista as a dump site.
The Mayor explained that the Council last year submitted a
resolution opposing Minnetrista as a dump site.
Councilmember Paulsen felt tha-t another resolution should be
submitted Opposing this site.
Councilmember Jessen stated that she feels for Minnetrista but
that the Metropolitan Council is doing a complete and thorough
study in the site selection and that we should leave that
decision to them to decide. Anyone in any of the potential areas
selected for the dump site would be against this.
Paulsen moved and Polston seconded a motion to take a formal
position opposing the potential selection of Minnetrista as a
Iandfill site. The vote was 2 in favor with CounCilmember
Jessen voting nay and Councilmember Peterson abstaining.
Motion denied.
STATUS REPORT. ON COUNTY ROAD 1~ MEETINGS
Councilmember Paulsen requested that this item be on the Agenda.
5O
March 13, 1984
Mayor Polston read a memo that was sent to all Hennepin County
Commissioners by Commissioner Bud Robb regarding County Road 15
improvements between CSAH 19 and 110. He informed the Council
that the Public Service Committee wilt hear comments regarding
County Road 15 on March 22, 1984, and urged all who could attend
to be there. No further action was taken.
COMMENTS AND SUGGESTIONIS FROM CITIZENS PRESENT
The Mayor asked if there were any citizens present with comments
or suggestions for the Council. There were none.
BLACK LAKE BRIDGE~ LAKEWINDS CONDOMINIUMS
Mr. Bill Magrand representing Northco Development, owners of
Lakewinds Condominiums was present. He explained that Northco
has invested a considerable amount of money in the remodeling of
the Lakewinds Apartments to sell them as condominiums with the
new name being Lakewinds Sports and Health. Northco had already
started this process when they learned last Fall that the County
was planning to replace the Black Lal~e Bridge on County Road 125
this Spring. They have contacted the County and have it all lined
up to delay the replacement of this bridge because it will
interfer with their marketing program this Spring. The County
would like the City to favorably concur with the delay in an
effort to work with the developers. The County has promised that
they will still replace'the bridge this Summer. The bridge will
take 60 working days to replace so it would mean delaying the
start of the bridge replacement until possibly May or-June.
The Council discussed this problem and also the problem of having
the bridge uncompleted by the time school starts and the school
buses have to use alternative routes.
Peterson moved and Paulsen seconded a motion to concur with
the delay the County is contemplating for starting the
replacement of the Black Lake Bridge. The vote was 2 in favor
with Polston and Jessen voting nay. Motion denied.
SOIL, ANALYSIS WORK. ON LOST LAKE
The City Manager reported that he must again table this item. He
has.met with the PCA and they said no to all questions. The two
proposals the City have cannot be compared on an apples to apples
basis and will have to be clarified by the two proposers. No
action was taken.
SET DATE FOR PUBLIC HEARING:
COpE
PROPOSED AMENDMENT TO THE ZONING
Peterson moved and Paulsen' seconded a motion to set April 10,
198~, at 7:30 P.M. to hold a public hearing to amend the
49
March 13, 1984
The City Manager presented a memo from City Planner Mark Koegler
estimating that the total costs for a preliminary feasibility
recommendation should not exceed $1,000. It also gave an
estimated timetable for the report.
The City Manager also presented the formal application from
Smiley/Glotter Associates requesting tax increment financing
assistance for the project identified as Town Square.
Councilmember Paulsen requested that the Council pass a motion
supporting the Manager working with the HRA and having him keep
the Council up-to-date on the progress."
Jessen moved and Peterson seconded a motion supporting the
position of the City Manager working with the HRA on tax
increment financing and asking that the Manager keep the
Council informed of the progress and the hours he is putting
in on this process. The vote was unanimously in favor.
Motion carried.
Paulsen moved and Jessen seconded a motion to accept the
application for tax increment financing assistance as
submitted by Smiley/Glotter Associates and refer it to the
HRA.. The vote was unanimously in favor. Motion carried.
POTENTIAL DUMP SITE IN_MI~NETRISTA
Councilmember Paulsen explained that he asked for this item to be
put on the Agenda so that the Council could take a position
against the potential selection of Minnetrista as a dump site.
The Mayor explained that the Council last year submitted a
resolution opposing Minnetrista as a dump site.
Councilmember Paulsen felt that another resolution should be
submitted opposing this site.
Councilmember Jessen stated that she feels for Minnetrista but
that the Metropolitan Council is doing a complete and thorough
stu'dy in the site selection and that we should leave that
decisiOn to them to decide. Anyone in any of the potential areas
selected for the dump site would be against this.
Paulsen moved and Polston seconded a motion to take a formal
position opposing the potential selection of Minnetrista as a
landfill site. The vote was 2 in favor with Councilmember
Jessen voting nay and Councilmember Peterson abstaining.
Motion denied.
STATUS REPORT ON COUNTY ROAD 1) MEETINGS
Councilmember Paulsen requested that this item be on the Agenda.
5O
March lB, 1984
Mayor Polston read a memo that was sent to all Hennepin County
Commissioners by Commissioner Bud Robb regarding County Road 15
improvements between CSAH 19 and 110. He informed the Council
that the Public Service Committee wilt hear comments regarding
County Road 15 on March 22, 1984, and urged all who could attend~
to be there. No further action was taken.
COMMENTS AND SUGGESTIONIS FROM CITIZENS PRESENT
The Mayor asked if there were any citizens present with c~ments
or suggestions for the Council. There~~were none._ ~~
BLACK LAKE BRIDGE, LAKEWINDS CONDOMINIUMS~~''-
Mr. Bill Magrand representing N.~co Development, owners of
Lakewinds Condominiums was pr~nt. He explained that Northco
has invested a considerable~ount of money in the remodeling of
the Lakewinds Apartments t~9~sell them as condominiums with the
new name being Lakewinds ~ Hea!th~ Northco had already
started this process when they learned last Fall that the County
was planning, to replace the Black La]{e Bridge on County Road 125
this Spring. They~~%gntacted the County and have it all lined
up to delay the~-~l-g~ement of this bridge because it will
interfer with their marketing program this Spring. The County
would like the City to favorably concur with the delay in an
'' effort to work with the developers. The County has promised that
they will still replace'the bridge this Summer. The bridge will
take 60 working days to replace so it would mean delaying the
start of the bridge replacement until possibly May or.June.
The Council discussed this problem and also the problem of having
he s~oo
the bridge uncompleted by the time school_._.....star~s~n~'t 1
buses have to use alternative routes..- ~~~o~ncuN~'
Peterson moved and Paulsen seconded~ m~~n to r with
the delay the County is contempl ting for starting the
replacement of. the Black Lake Bridge. The vote was 2 in favor
with Polston and Jessen voting nay. Motion denied.
SOIL,ANALYSIS WORK ON LOST LAKE
The City Manager reported that he must again table this item. He
has met with the PCA and they said no to all questions. The two
proposals the City have cannot be compa?ed on an apples to apples
basis and wiI1 have to be clarified by the two proposers. No
action was taken.
SET DATE FOR PUBLIC HEARING;
CODE
PROPOSED AMENDMENT TO THE ZONING
Peterson moved and Paulsen' seconded a motion to set April 10,
198~, at 7:30 P.M. to hold a public hearing to amend the
51
March 13, lg8
Zoning Code to allow (1) Motor Fuel Station and (2) Motor
Fuel Station, Convenience Store in the B-1 Central Business
Zoning District by Conditional Use Permit. The vote was
unanimously in favor. Motion carried.
PAYMENT OF BILLS
The bills were presented for consideration.
Peterson moved and Paulsen seconded a motion to approve the
payment of the bills as presented on the pre-list in the
amount of $164,940.98, when funds are available. A roll call
vote was unanimously in favor. Motion carried.
POLICE RESERVES
The Mayor suggested that the Council recognize all the hours the
Police Reserve Unit donates to the City by proclaiming March 27,
1984, Police Reserve Recognition Day in the City of Mound.
Jessen moved, and Peterson seconded the following proclamation:
RESOLUTION 84-37 RESOLUTION PROCLAMING MARCH 27, 1984, AS
POLICE RESERVE UNIT RECOGNITIOR DAY IN THE
CITY OF MOUND
The vote was unanimously in favor. Motion carried.
MISCELLANEOUS/~NFORMATION
A. Commons maintenance proposal for 1984.
B. Shopping Center Conference Memo.
C. Metropolitan Council Review - February 24, 1984.
D. Westonka Seniors Newsletter - March, 1984.
E. Appointment of a City Representative to HUD Citizen_Advisory
Committee.
F. Chamber of Commerce Newsletter - March, 1984.
G. Compost Information.
H. Humphrey Institute March Calendar.
I. Memo from Congressman Sikorski regarding IRB's.
J. Public Service Redesign Project Memo (Two Alternate Routes to
the Improvement of Education).
52
March 13, 1984
The City Manager gave the Council a financial update on the end
of the year report (198B).
The Mayor suggested setting up a Committee to study the public
works building question. Some of their goals could be as
follows:
1. Whether a public works building is needed.
2. What site.
3. How to finance.
The Council asked the City Manager to put together a structure
for a Public Works Task Force with goals and objectives for this
Committee. This should be brought back to the Council at the
next meeting.
Mayor Polston stated that Nancy Clough is interested in being
appointed to the Park Commission.
Peterson'moved and Polston seconded a motion to adjourn at 10:00
P.M. The vote was unanimously in favor. Motion carried.
Jon Elam, City Manager
Fran Clark, City Clerk
BILLS .... MARCH 13, 1984
Widmer Bros
1,258.00
ieger,Inc 33,413.00 Water Product
omm~ss~oner of Revenue 3,903.78 City wide Services
Karol Charon 330.00 Robert Cheney
Bill Clark 011 1,811.71 J.P. Cooke Co.
Director of Property Taxa 637.44 Day Distributing
Jon Elam 779.00 Decker Supply Co.
Griggs, Cooper 2,467.88 Dependable Services
Govt Training Srv 75.00 East Side Beverage
Bill Hudson 31.O5 Fire Control Extinguisher
Larry Heitz 740.00 Glenwood Inglewood
Henn Co. Recorder 90.00 Hecksel Machine Shop
ISFSl 120.OO Henn Co. Treas
Phyllis Jessen 330.00 Heiman Fire Equip
Johnson Paper 248.05 Kromer Co.
Johnson Bros. Liquor 2,920.77 Lathrop Paint Supply
Dick Johnson 35.00 Lowells
Metro Waste Control 420.75 The Laker
City of Mound 46.23 Minnegasco
Mound Postmaster 100.O0 Mound Fire Dept
Metro Waste Control 29,986.80 Munic Finance Offic Assn
Quality Wine 1,109.93 City of Mound
Ed Phillips & Sons 3,118.17 Municipals
Barry Palm 740.00 Martins Navarre 66
Nels Schernau 24.18 Marina Auto Supply
Air Comm 114.O0 Wm Mueller & Sons
Babler Auto Body 945.06 ~ Navarre Hdwe
Cromer Management 245.00 North Star Waterworks
Henn Co. Chiefs Police-PTAC 390.00 N.S.P.
iIMC Conference 195.00 Neptune Water Meter Co.
Metro Fone Communications 23.60 Chas. Naslund
Real One Acquisition 708.05 Newman Signs
Suburban Community Services 898.25 A.J. Ogle Co.
United Business Machines 17.29 Oswald Fire Hose
Westonka Community Services 7,810.41 Popham Haik Kaufman
Western Tree Service 604.00 Pepsi Cola/7 Up
Allstar Electric 269.O1 Pogreba Distributing
American Flagpole ~ Flag Co. 300.00 Royal Crown Bev.
Air Power Equip 239.96 ..Road Machinery
Rustique Decorating
Ashland Chemical 115.50 Spring Park Car Wash
Holly Bostrom 251.O0 Suburban Tire
Donald Bryce. 1oo. Oo Shepherds Rugs
Butchs Bar Supply 211.50 Stevens Well Drilling
Burlington Northern 533.33 Don Streicher Guns
Bowman Barnes 155.88 Twin City Garage D~or
Berry Auto, Inc. 18.00 Thorpe Distributing
Bryan Rock Products 283.03 Twin City Home Juice
Blackowiak & Son 56.00
Specialty Equip
Bradley Exterminating 19.00 ]hurk Bros Chev
Cargill Salt 179.76 Village Chev
Coast to Coast 123.66
Westinghouse Elec
Coca Cola Bottling 217.55 Xerox
City Club Distributing 2,248.20 TOTAL BILLS
367.OO
93.43
3,046.66
165.OO
33.00
3,305.94
165.o0
48,90
12.00
1,515.25
13,909.72
8,698.00
123.64
29.61
88.78
~,75~.84
4,341.15
10.00
29.60
5.O0
3O.OO
324.~1
1,971.50
202.40
34.63
4,O92.21
588.19
372.20
414.50
983.90
2,053.00
1,$19.26
378.6O
4,387.25
]]9.80
180.00
4.34
129.00
178.52
13.45
123.12
102.25
80.0o
3,598 15
102 74
97 72
67
127
448
82
164,940.
25
56
93
72
98
22 232 2355 91
22 238 4854 61
22 238 4860 31
22 238 4900 71
22 238 4925 41
22 238 5020 31
J22 238 5024 51
22 238 5035 11
22 238 5120 11
22 244 5019 31
22 256 4782 11
22 259 5463 11
22 259 5872 32
22'259 6070 31
22 26~ 3120 31
22 271 2919 O1
22 271 2925 71
22 280 5883 61
22 280 5921 41
22 280 5928 91
22 283 5900 21
22 286 6040 91
22 292 6016 71
22 295.3186 41
22 298 2965 62
22 301 2910 41
22 304 2926 41
22 310 3198 6i
22 316 2882 31
22 318 2871 21
22 332 2611 31
22 346 5667 21
22 364 2571 21
22 382 2308 11
22 397 2524 11
22 397 2539 93
22 404 5050 81
Delinquent water and sewer
$ 83.54
312.36
102.94
52.38
1 78.72
70.20
191.82
94.64
73.10
1 O5.68
113.86
1 38 .O4
171.40
90.60
105.90
129.54
67.92
6O. 72
56.36
13O. 48
115.00
124.68
93.74
12o. o5
118.79
151.60
96.76~
97.74
111.31
155.o2
lO6.12
7O.O4
91.16
lO7.24
101.38
85.08
128.84
$4204.75
3-21-84
22 232 2355 91
22 23B 4860 ~1
22 238 ~900 71
22 238 4925 41.
22 238 5020 31
22 238 5024 51
22 238~5035 11
22 238.5120.11
22 24450'19 31
22 259 5463 11
22 259587232
22 259'.16070 31
22 262 3120 31
22 27.1 2919 O1
22 271 2925 71
22 280 5883 61
22 280 5921 41
22 280 5928 91
22 283 5900 21
22 286 6040 91
22 292· 6016 71.
22 295..3186'41
22.'298 2965 62
22 301 2910 41
22 304 2926 41
22 310 3198 61
22 316 2882 31
22 318 2871 21
22 332 2611 31
22 346 5667 21
22 364 2571 21
22 382 2308 11
22 397 2524 11
22 397 2539 93
22 404 5050 81
Delinquent.water and sewer
Rick Lindlan
Weldon Hendrickson
Doc Bosma
Elma Jensen
David Himlle
Kerber & Tieva
Ron Konek
Ron Hayes
Paul Ipsen
Herbert Kurschner
David Oliver
Perry Ames
Victor Rocchio
Ed Monet~e
Fritz Johnson
John. Gaines
'Bryan Lee
Brad Elmore
Randy Lingen
L.D. Clifford
Ron Anderson
John Melzker
June Mc Carthy
Diane Rowley
Conrad Ftacek
Robert Brown
Carol Evans
Tim Heyman
R. Pugh
Douglas Evanson
Stephen Swenson
Paid $60.00
Paid $25.00 *
Paid $50.00
Paid $10.00 *
$ 83.54
52.38
, 178.72
7O. 2O
191.82
94.64
* 73.10
'105.68
113.86
* 138.04
171.4O
90.60
105.90
* 129.54
67.92
56.36
130.48
115.00
93.74
120.05
i18.79
151.60
97.74
~ rr 02
106.12
7O.O4
91 .16
107.24
* 101 .38
85.08
'128.84.
$4204.75
70,2C',
191 o8~.:,
1 C 5 · c; C
1 1
25,CC-
106-i2+
70~04
107.24~
128.
$207
Paid
3198 Westedge Blvd.
2882 Halstead Ln.
Paid '
2611 Granger Ln.
5667 BuSh Ln
2571 Lakewood Ln.
2308 Driftwood Ln.
2524 Emerald Ln.
2539 Emerald Ln.
3050 Shoreline Blvd
~3207.27
NOTICE OF PUBLIC HEARING
CITY OF MOUND, MINNESOTA
Notice is hereby given that Hennepln County and the City of Mound,
pursuant to Title I of the Housing and Community Development Act of
1974, as amended, are sponsoring a public hearing on March 27, 1984,
at 8:00 P.M., at the City Hall Council Chambers to obtain the views
of citizens on local and Urban County housing and community development
needs and to provide citizens with the opportunity to comment on the
Urban Hennepin County Statement of Objectives/1984 and the City of Mound's
proposed use of its Year X Urban Hennepin County Community Development
Block Grant planning allocation of $73,656.
The City of. Mound is proposing to fund the following activities with
Year X Urban Hennepin County CDBG funds starting jUly 1, 1984.
ACTIVITY BUDGET
Rental Rehabilitation Program .
Downtown Improvement Financing
Street Imp. - Special Assessment Grants
Parking Improvements - Downtown
$ 15,OO0
35,OOO
3,656
20,000
$ 73,656
For additional information on proposed activites, level of funding
and program objectives, contact the City of Mound, 5341Maywood Road,
Mound, MN. 55364, 472-1155.
The public hearing is being held in accord with the Urban Hennepin County
Joint Cooperation Agreement pursuant to M.S. 471.59.
Francene C. Clark, City Clerk
Publish in The Laker March 5, 1984
March 19, 1984
CITY
of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
TO:
CITY COUNCIL
FROM:
CITY MANAGER
RE:
REVISED ACTIVITY AND BUDGET PLAN FOR CDBG FUNDS FOR 1985-86
ACTIVITY
Neighborhood Park Improvements
Downtown Improvement Financing
Street Improvement - Special Assessment Grants
Small Business Financing Assistance
$16,000
35,000
3,656
22,214
$76,870
Since we set the date for the hearing on CDBG funds, I have been working
with Hennepin County to develop our 1985-86 work program. Originally
I had budgeted $15,OOO for Rental Rehabilitation Projects, but the County
said that this was unnecessary since they were going to receive a separate
.$140,000 allocation to cover Hennepin County's needs. At this point I
developed the Neighborhood Park Improvement component.
The other components are a continuation .of our community economic develop-
ment efforts, but provide us with funds for the next two years, as the
present funds are expended. These program pieces include:
- Design Grants up to $750.00 or 50% of the cost.
- FiX-Up/Paint-Up Grants up to $500.
- Store Front~ Rehabilitation (Interest reduction program)
- 2% Interest Commercial Loans up to $25,000.
JE:fc
STATEMENT OF OBJECTIVES
1984 URBAN HENNEPIN COUNTY CDBG PROGRAM
DRAFT 2-8-84
INTRODUCTION
The Urban Hennepin County Statement of Objectives provides direction for
planning and implementing the 1984 (Year X) Urban Hennepin County Com-
munity Development Block Grant program consistent with national and
local objectives. The national objectives of the CDBG program are:
developing viable urban communities by providing decent housing, a suit-
able living environment and expanded economic opportunities principally
for low and moderate income persons; aiding in the prevention~or elimi-
nation of slums or blight; and meeting other con~nunity development needs
having a particular urgency. Urban Hennepin County objectives are
supportive of the national objective and detail their application
specifically to the Urban Hennepin County CDBG program.
Each activity carried out with CDBG funds must, of course, be eligible
under program regulations (24 CFR 5?0) and ~eet the objectives of the
Urban Hennepin County CDBG Program.
Consistent with the 1983 amendments to the Housing and Community
Development Act of 1974, 51% of the program funded over the next
three years must be used for projects which directly benefit low-and
moderate-income persons.
CDBG funds may be utilized to address a wide range of housing and com-
munity development needs. The Statement of Objectives identifies Urban
Hennepin County Community Development needs which should be addressed
through the use of CDBG funds as well as how these funds should be pro-
grammed and usedJ
The Statement of Objectives is divided into program subheadings, under
which are specific objectives and procedural statements supporting how'
the objectives can be achieved.
PROGRAM PLANNING AND ADMINISTRATION
Ob j ecti ye:
Develop and implement a Housing and Community Development
program which addresses Urban Hennepin County objectives and
meets local needs and priorities in a timely and efficient
manner.
Objective: Maximize the benefit resulting from each activity.
Objecti ye:
Provide each participating community establishing a local'
contingency account six months from the grant award date to
implement a program activity for use of the reserved funds.
Objective:
Emphasize activities which'provide for 'a balanced program
primarily benefiting low-and moderate-income persons and
providing for the el'imination of slums and blightJ
Obi ecti ve:
Use CDBG funds in a manner that generates program income
whenever possible to maintain the level of program activity
with a decreased annual grant amount.
Objective: Assure citizen involvement in the formulation, implemen-
tation and evaluation of the CDBG Program.
Objective:
(Encourage and) Facilitate mutual cooperation among
participants in the development and implementation of
multi-community and intra-Planning Area determination
of CDBG activities to address common concerns and needs.
Procedural Statements:
· Establish a project specific implementation schedule not to exceed
24 months from the grant award date.
· Proposals for project funding should~e kept to a minimum (no more
than three) generally consistent with the effective utilization
of the planning allocation available to the participating
community.
Monitor ~he established 24-month implementation schedule to ensure
effective project implementation and/or the reallocation of
assigned funds.
Monitor the performance of all participating communities on at
least a quarterly basis to review their ability to implement local
programs.
Through the Planning Area Citizen Advisbry Committee, provide a
structured opportunity for citizen participation in the develop-
ment, implementation and ongoing evaluation of the CDBG program.
Encourage greater citizen involvement in the CDBG program through
expanded communication on the program funding levels, program
objectives and eligible activities. -
· Assign funds in community contingency acounts remaining at the
end of six months from the date of the beginning of the program
year from which they were awarded to a Planning Area contingency
account for reprogramming.
· Assign funds for programmed activities remaining at the enJ of
two years from the date of the beginning of the program year from
which they were funded to Planning Area contingency accounts for
reprogramming.
Provide monthly project status reports to all participant
'communities and planning area citizen advisory committee members
to assist in program~evaluation activities.
Plan and implement activities which can return funds to the program
through maximizing the use of loans and repaYment agreements.
Plan and implement activities which pool resources of several
participants to meet a shared needJ
Look to the total allocation within Planning Areas az a resource
to address priority concerns and provide adequate funding to
address them in an expeditious time frame.
NEIGHBORHOOD REVITALIZATION
Obi ecti ve:
Maintain and preserve viable neighborhoods and neighborhood
service centers through concentrated community development
activities.
Procedural Statements:
Target CDBG funds for use in Conjunction with other available
Federal, State and Local resources for a combination of housing
and community development activities )n identified neighborhoods.
Define neighborhoods geographically and/or statistically con-
sistent with adopted local plans and identified needs~
specifically those of low-and moderate income residents.
Upgrade i'dentified neighborhoods consistent with local policies
developed in consultation with'residents.
Demonstrate that component activities are supportive of improve-
ments in the neighborhood housing stock, physical condition and/or
economic development.
HOUSING
Objective:
Obi ecti ye:
Direct housing resources to sectors of the housing market
that provide the greatest benefit to lower income persons.
Explore all potential resources for the financing of as-
sisted housing and actively participate in their use to
construct and/or subsidize the development and/or rehabi-
litation of housing affordable to low and moderate income
households.
New Construction
Obi ecti ve:
Facilitate the development of new housing, including, but
not limited to, site acquisition, public improvements,
assistance with front-end costs and multi-community
· projects.
Procedural Statements:
· Develop a priority list of' communities for housing development
consistent with priorities established in the HAP.
· Establish multi-community housing development projects whenever
possible, based on realistic market service areas.
· Utilize all available approaches to finance housing .development.
Existing Rental
Objective: Maximize utilization of available rental assistance
programs.
Procedural Statement:
· Participate in the existing rental assistance program.
· Participate in the Rental Rehab program.
· Utilize all available approaches to ~inance improvements to
the existing housing stock and assure its availability to low-and
moderate-incOme persons.
HOUSING REHABILITATION
Objective: Provide housing rehabilitation assistance to eligibl'e house-
holds.
Procedural Statements:
· Offer a variety of housing rehabilitation assistance utilizing
loans and grants and affecting owner occupied and rental units.
Follow uniform Urban County'Procedural Guidelines including ap-
plicant income and asset eligibility requirements and client
assistance levels.
· Utilize all available housing rehabilitation/improvement programs
either in conjunction with or independent of the CDBG rehabili-
tation programs {i.e., MHFA loans, MHFA-CETA Weatherization).
Encourage the pgoling of housing rehabil'itation funding on a
Planning Area basis for those programs managed through Hennepin
County.
X~PUBLIC FACILITIES AND IMPROVEMENTS
Objective: Rehabilitate e~isting public improvements and facilities and
assist in the development of new facilities and improve-
ments.
Obi ectl ve:
Objective:
Emphasize direct benefit activities for low-and moderate-
income persons.
Coordinate the development of senior centers in locations
suitable for the provision of other services to the
elderly. ~
Procedural Statement:
Use'the provision of public improvements to encourage general
revitalization and new development.
· Limit the use of grant funds to the payment of special assessments
to low and moderate income homeowners.
HANDICAPPED IMPROVEMENTS
Objective:
Obi ecti ye:
Ensure that program supported facilities and housing units
are accessible to handicapped person.s.
Assure that each accessibility improvement meets a parti-'
cu)ar need, removes a specific barrier and represents a
defined priority in the co,unity.
Procedural Statement:
Develop a handicapped accessibility plan for improvements which
identifies the barrier(s) to be removed, establishes needs and
priorities, explains how mobility and accessibility will be im-
proved and lSsts the facilities and programs to benefit from such
action. The plan must identify~non-construction options for
moving barriers.
~/ECONOMIC DEVELOPMENT
Objective: Undertake activities .to stimulate economic development
consistent with local economic development strategies.
Objective: Provide additional permanent, private sector employment
opportunities to low-and moderate-income persons.
Obi ecti ve:
Provide job training opportunities,, in conjunction with
private sector economic development activities, to low and
moderate income persons.
Procedural Statements:
Provide assistance to private-for-profit developments in a manner
that will generate program income whenever possible.
Economic developmen% activities must have evidence of commitment
or interest by developers and provide for new or expanded employ-
ment opportunities for low and moderate income persons and/or the
elimination of existing blighting influences.
· Economic development activities may be undertaken onl.y when they
are consistent with local plans or policies.
ENERGY
Objective:
Objective:
Develop the Urban County CDBG program in a manner sensitive
to energy conservation issues.
Provide assistance to low-and moderate-income homeowners for
energy improvements. .
Procedural Statement:
Develop energy use strategies which as a minimum emphasize
local needs and include items such as those listed under eligible
activities in Section !05~a)(16) of the Housing and Community
Development Act a~ amended in 1983.
PUBLIC SERVICES
Objective:
Obi ecti ve:
Provide funding for public services to the extent they are
consistent with CDBG regulations and the program needs of
Hennepin County and the participating communities.
Public Services mu~t directly benefit low-and moderate-
income persons.
Procedural Statements:
· Limit the expenditure of CDBG funds for public services to no more
than fifteen percent {15%) of the Urban County grant.
· CDBG funding of public services must be'for new or increased levels
of service.
CDBG funds can be used to maintain or increase an existing public
service only when it can be demonstrated that local funding is no
longer possible.
DISPLACEMENT
0bi ecti ve:
Urban Hennepin County will implement the Con~nunity
Development Program and Housing Assistance Plan.minimizing
the direct or indirect displacement of owners or renters
from occupied dwelli.ng units~ and business locations.
Procedural Statements:
The displacement of families, individuals or businesses, whether
they occupy their premises as owners or tenants, shall be under-
taken when: (1) the owner requests that the municipality acquire
the property due to a hardship situation resulting from an action
of the local government, (2) the premises is found to be sub-
standard to.a point.beyond repair, (3) the health and welfare of
theresident is in jeopardy and (4) acquisition/relocation is
necessary to implement a physical development activity consistent
with adopted local policies and/or plans.
When temporary relocation is necessary to complete the rehabi-
litation of a dwelling unit, it will be so timed as to minimize
the period of displacement,
When acquisition/relocation is necessary, the process will be
conducted according to the Uniform Relocation Assistance and
Real Property Acquisition Act, as amended.
Disp.laced residents or businesses shall be assisted through the
provision of relocation counseling and assistance.in s6curing an
al ternative location.
The costs of relocation payments and assistance under Title II of
the Uniform Relocation Assistance and Real Property Acquisition
Act shall be paid from funds provided by the CDBG program and the
funds available locally from any source..
7
March 19, 1984
CITY of MOUND
MOUND, MINNESOTA 55364
(612) 472-1155
TO: CITY COUNCIL
FROM: CITY MANAGER
In 1983, the CDBG Program was amended to allow for Neighborhood (by
census tracts) Development Projects that had 509 or more low income.
From the enclosed map, you can see these areas include the area around
City Hall and the first section of the. Island as you come across the
bridge.
I reviewed the various public works items for these two areas and
found that all the basic utilities are in good shape, i.e. water, sewer,
streets, storm sewer. That really leaves the Parks as the logical place
to use an estimated $16,000 worth of 1985-86 CDBG funds.
There are four (4) parks in this target area:
Wychwood Beach - Brighton Blvd.
Avon Park - Avon Drive
Swenson Park - Leslie Road
Carlson Park - Bartlett Blvd.
I went back to the Master Park Plan we did a couple of years ago and
looked over the improvement projects that are needed. They are as follows:
WYCHWOOD BEACH
- Grade the beach to the south and install new sand.
- Plant trees and do some landscape (15) improvements.
(Estimated Cost: $4,000)
AVON PARK
- Plant trees. Every tree i'n this park.has been lost to Dutch Elm
Disease or storms. (30)
- Picnic tables - mounted.
- Park benches - mounted.
- Resurface basketball court and install new basketball standard.
(Estimated Cost: $5,000)
Page 2
City Council
March 19, 1984
SWENSON PARK
- Softball benches
- Plant trees .(30)
(Estimated Cost:
$4,000)
CARLSON PARK
- Grading wOrk on hillside.
- Re-sod
- Plant limited number of trees
(Estimated Cost: $2,000)
Some of these items may vary from the proposed budgets, but probably
not by much. I am delighted to be able to again put some HUD funds
into the neighborhoods versus using it ever so slowly in Downtown
Mound. Plus, it's for items that everyone can benefit from.
JE:fc
YEAR X (1984) URBAN HENNEPIN ~OUNI~F
CDBG PROJECT PROPOSAL
THIS SECTION WILL BE COMPLETED BY HENNEPIN COUNTY
ER Status: /
status Environmental Review Specialist
Project Number: /
number Financial Manager
Project Eligibility: /
'~itation -PA representative
date
date
date
A. GENERAL INFORMATION
1. Community:
MOUND
2. Project Name: NEIGHBORHOOD PARK IMPROVEMENTS
3. Contact.Person: J'ON ELAM '
B. PROJECT DATA
1'. Location: Census Tract/s 276.02 City Wide
Street Address ~ee ~ttached map
(Attach map, if applicable)
2. Description
Describe the project and all necessary component activities' Be as detailed
as possible. (Add sheet if necessary.)
A project that wi)) continue the'.nei~ghborhood 'upgra~ilng that has occurred over the past
five years, i.e. new streets, storm s~wer, water i'mprovements with n6n--CDBG funds.
By investing in basic park improvements, (trees, equipment, etc,), the'overall quality
and identity of these parks will greatly improve. Thus, improv~.ng the' quality, of the
low income neighborhoods ~hat surround them.
These improvement projects come from the ci'ty of'Mound's Master Rark ~rpgram which
has received wide. support from the City. Council of the Park Commission.
Is this a multi-year project: yes
C~BG Year Started , Project Number
X no, if so please indicate
Identify the. Con~nunity need that the project is intended '{o meet and explain
how the project will make substantial improvements.
Upgrade neighborhood parks by planting trees, installing new equipment,
imp~ovlng swimming beaches, ~ll'of which will make the parks more visible
and useable.
State the accomplishments the project is meant to achieve in a quantifiable
manner. (For example~ the rehabilitation of 10 houses for low and moderate
income families) ~ ~
- plant 80 trees
- upgrade one swimming beach
- upgrade one neighborhood basketball court
- install park equipment (picnic tables and benches)
- relandscape o~ paFk for increased,,use for picnicing, etc,
Implementation Schedule.
Note: The Urban Hennepin County Joint Cooperation Agreement requires the
expenditure of funds'within two years of the grant award date.
a. Identify projected starting and completion date' 7/1/84 - 6730/85
b. if not availablej please explain~
7. Fundability
This project will: (check one and provide requested inf6rmation)
X Principally benefit low and moderate income persons
State any special'considerations you have given to benefit the
moderate income persons, the number of persons directly benefiting,
and how they will benefit.
The focus of this project component is only in the two neighborhoods which
jointly meet the 51% low to moderate income requirement.
Remove slums and blight or
Describe the blight and. indicate whether the municipal government
has officially designated the area as blighted or when it plans to
do so.
Not APplicable'
Meet a Particular Urgent Need
Describe the nature of the need and the time at which it
originated.
Not Applicable
Identify which element of the Urban Hennepin County Statement of Objectives
the project addresses:
Citation: Neighborhood Revitali'zati'on
Budget'.
Using the following budget lines~ please list the amount budgeted for each
component of the project.
a. Acquisition of Real.Property
b. Senior Centers
c~. Parks and Playgrounds Development
d. Street Improvements/Sidewalks
e. Streets/Sidewalks Special Assessments
f. Water and Sewer
a.$
b.$
c. $ l~:onn
d. $
e.$
f.$
Water/Sewer Special Assessments '. g. $
Clearance Activities h. $
Diseased Tree Removal i. $
Relocation Assistance J. $
Removal of Architectural Barriers k. $
Rehabilitation of Private Single Family Property 1. $
Rehabilitation of Public Residential Structures m. $.
Rehabilitation of Rental Property n. $
Planning o. $
Administration (general program overview) p. $
Public Service q. $
Contingency .. r. ~
Other - please explain s. $
TOTAL BUDGET $ 16,000
* The cost of administering a funded project is to be i~cluded within the proposed
project budget and not on line "p".
February 1984
PE]:~:ENT OF LO~ AHO MODERATE PERSONS BT DLOCK CROUP FOR H[NNEPIN COUk'"TT, MR
LOW AND hOD INCOME LEVEL USED: FAMILY 19666 UNRELATED IHDIVIDUAL 6913
i
~D
140
141
140
140
143
CENSUS
TRACT
{26293
PZ62P4
~263{1
126311
A264tI
927).
~277
{277
~276~I
~27692
)276~Z
~276~Z
~ZT~Z
~Z15~Z
~21582
821593
8215~3
~Z1594
8215~5
~Z~5~5
~15~5
PERCENTACE
BLOCK OF PERSONS
CROUP LOW-MOD
I 16.~
3 13.67
16.62
3 31
33.33
I' 4.57
912.38
17.17
3 8.55
4 Zl.?Z
24,73
3 I%53
9 7,95
1 18.84
Z 23.44
I ItLZ7
I 4I..4'9
Z
9 23.59
'q' - 33,15
I ZZ.58
Z 33.I5
,3 46.49
4 4Z,71
I 18,41
· 2 3?.26
3 3Li~
5 26.19
(:~ ' 5L25'"
B 24,66
2 15.38
I 39.56
2 5(.43
I 32. ?8
2 19.~3
3 IB.ll
I Z1.28
2 22..35
I 18.77
2 28.91
3 14.{~5
TOTAL
LOW-MOD
PERSONS
356
163
&31
Z5
27
144
97
178
32~
iB6
57
39
39Z
H7
371
~7
338
138
77
39~
1249
27}
'188
234
LOW-MOD
UNRELATED
PERSONS
18
Zl
ZZ
27
147
25
5
38
.35
2.~
I3
77
5'
.?
J?
25
87
31
88
85
Z?
JZ
5
55
5
ZI
63'
7
IBI
27
58
LOW-MOD
PERSONS
IN FAN
338'
321
Z6Z
141
633
i73
· 78
?1
167
373
2.18
253
17I
443
375
1153
2.71
181
371
(27
~OURCF_~ 178(~ CENSUS SUrI{~AR! TAPE 3,
FOR STATE OF MINNESOTA
TOTAL
PERSONS
29?5
2593
75
591
1163
'629
1135
888
?28
Z265
1391
2483
555
1%7
1172
8(1
13S8
861-
458
55?
1618
1735
1795
~365
9B1
2923'
1875
I259
ZZI8
1955
1247
2(35
1~33
TOTAL
UNREL
PERSONS
81
B(
72.
88
38{
31
14
191
9I
78
14
~3
723
3I
7t
&3
74
43
127
BI
J18
457
75
254
32
'~AT.
TOTAL LOW-MOD
FAMILIES· FAMILIES
693
59~ 89
47Z 69
217
6~3 117
~5
13 '!
1BI 7
2.67 51
156 ZZ
317 25
252 56
223 83
195
2{7 38
692. 52
'392 76
663
152 14
37 17
534 128
312
156 34
232
Z34 199
378 156
Z37 I81
IZ?
15~ 36
78 23
75
Z83 145
418
137 33~
458 71
37Z 163
272 161
753 275
488 49
339 63
578
595 1]3
342
617 Z~Z
3BI 53
FA~{Ib
3,34
3.6!
3,79
3.6Z
3,78
3,Zl
346
3,53
3,3?
3.54
3.98
3,Zi
3,45
3,58
3,3{
3,15
3,ZZ
3,lZ
2,83
3,72
3.81
3.18
2.58
3,Z8
3,63
3,4l
3.68
/
'C~-
Z.
0
0
YEAR X (1984) URBAN H'ENNEPIN ~OUNI~
CDBG PROJECT PROPOSAL
THIS SECTION WILL BE COMPLETED BY HENtIEPIN COUNTY
ER Status: /
status
Project'Number: /
number
Project Eligibility:
~itation
Environmental Review Specialist
~Fi nanci al '" Ma'na get
/
'PA representative
date
'date
date
GENERAL INFORMATION
1. Community:
'MOUND "
2. Project Name: DOWNTOWN'IMPROVEMENT FINANC'ING
3. Contac~ Person: ~ON ELAM
B. PROJECT DATA
1. Lo~ation: Census Tract/s '276.02 & 2y6.01 City Wide
Street Address Central Business DJ'strict
(Attach map, if applicable]
Description
Describe the project and all necessary component activities -Be as detailed
as possible. '{Add sheet if necessary.')
SEE ATTACHED SHEET .
3. Is this a multi-year project: X yes
CDBG Year Started 1981 , Project )~umber
no, if so please indicate
Identif~ the. Com~aunity need that the project is intended ~o meet and explain
how the project will make substantial improvements.
- Economic Renewal of the Downtown ~rea.
The'project will allow.the Cityto facilitate and create an. economi'~.development
framework or foundation by undertaking'a number of basic studies, i,e. soil
· analysis, marketing reports,'etc., but with only ~35,000 earmarked fo~, thi's
program activity, the economic reneWal.of]downtown could not be achieved.'
5. State the accomplishments the project is meant to achieve in a quantifiable
manner. (For examplej the rehabilitation of 10 houses for low and moderate
income families) ·
A. Continue the Store Front Assistance Pr~ram - Ass[st 4-5 bu~i'nesses.
B. Facilitate the implementation of these large economi'c development acti, vi, t).es; 1. Town Square - Tlr' Project
2. Yonka Plant ReLUse'
Kraus-And~rson.HOusing Development.
Implementation Schedule.
Note: The Urban Hennepin County Joint Cooperation Agreement requires the
expenditure of funds' within two years of the grant award date.
a. Identify.projected starting and c0mpletioh date.· 7/1~84 - ~/30786
b. If not available~ please explain~
Fundabil ity ~. '
a.. This proje,ct will: {check one and provide requested infbrmation)
Principally benefit low and moderate income persons
State any special 'considerations you have given to benefit the
moderate income persons, the n6mber of persons directly benefiting,
and how they will benefit.
Not Applicable
Remove slums and blight or
Describe the blight and. indicate whether the municipal 9overnment
has officially designated the area fs blighted or when i% plans So'
do so.
The Mound Cis¥.Councll has designated She area of this Project as a
redevelopment area~,
®
Meet a Particular Urgent Need
Descr'ibe the nature of the need and the time at which it
originated.
With the closing, of the Tonka Toys ~lan.t in 1983, 504 people'losS
their jobs. To re,use their plant and continue the efforts to bui. ld
a strong economic base i's particularly' urgent.
Identify which element of the Urban Hennepin County Statement of Objectives
the project addresses:
Citation:. Housin~ (new construction), economic development.
Budget' " '
Using the following budget linesj please list the amount budgeted for each
component of the project. ·
a. Acquisition oF ReallProperty
b. Senior Centers
C. Parks and Playgrounds Development
d. Street Improvements/Sidewalks
e. Streets/Sidewalks Special Assessments
f.. Water and Sewer
Water/Sewer Special Assessments
Clearance Activities
Diseased Tree Removal
Relocation Assistance
F~emoval of. Architectural Barriers
Rehabilitation of' Private Single Family Property
Rehabilitation of Public Residential Structures
Rehabilitation of Rental Property
P1 anning
Administration {general program overview)
Public Service
Contingency '"
Other - please explain Economic Development
al $ '
b.$
C. $'
e, $
f. $
g. $
h.$
i.$
j.$
k.$
1. $
n. $
o. $
p. $
q. $
r. S-
s. $ 35,000
$ 35, OO0
TOTAL BUDGET
The cost of administering a funded project is to be i~cluded within the proposed
project budget and not on line "p".
February 1984
B. PROJECT DATA
2. Description
In 1981, the City of Mound appointed a Downtown Improvement Committee
which has started a slow but steady effort of downtown renewal,' which
promises in Program Year X to .pick up additional momentum.
Initially, the focus was just limited to store front upgrading and some
basic improvements. Although this component envisions a continuation
of these on a small basis, the primary focus for Year X will be on
several more major'proposed development projects. These include:
Ae
The proposed re-use, by Balboa Construction. Co. of Los'Angeles,
California, of the412,000 square"foot former Tonka Toys Plant.
The proposed Town Square, Tax Increment Project, which is proposing
to redevelop a major area of the Central Business District and
build a 44,000 square foot shopping center which could include
a new medical clinic, bank, drug store and a variety of retail
sh6ps.
The proposed 100~120 unit high rise housing complex by Kraus-Anderson
on a former city dump site.near downtown. This project will not
only use a site which is a major community eyesore, but by developing
the many housing units close to downtown, can mean a major shot in
the arm for the existing downtown retail area.
Proposed uses o.f CDBG funds to.encourage these projects for development
· may include:
- soil surveys,
- land appraisals,
- marketing reports,
- land use and traffic studies
- economic and retail development consulting reports and training
By using the CDBG funds to. cover front-end costs, it is clear a'major
leverage of these funds will occur to the level of at least 20:1 if
not more.
Successful economic development occurs as a solid foundation of
information is formed and organized. This component envisions that
this will Occur, while, at the same time continuing the City small
Store Front Programs.
EXisting & Newly PrOposed
CommerCial-' and Ret'ail.'
~ L
..BUsinesses:
.Tile. 'MOund :CitY.'Council ' '
Wants to repeat
.its announcement of the IMMEDIATE
AVAILABILITY of SeVer'al City Business
Loan and Grant Programs to Assist local
businesses to remodel' or upgrade their
.storeS.'These include:':" '
· CommerCial Design Assistance Grants
for 50% or up to s750 for new Storefront'design;
· An Interest Subs. idY program
to reduce borrowing costs for storefront
'i~np'r~vements Up to s20,000;
· Commercial. Fix-Up/Paint-Up Program
,. grants bp to s500 or 25% of Fix-Up/,Pain.t-Up costs
up to ~2,000 are avaiiable' '-
cA 2% Interest Mortgage Assistance Program
for; up to 50% of a loan with at°pvalueof ~
' ~50,000 for terms not to exceed 20 years.
These programs are available to both owners & tenants
and are available after determining eligibility on a first-
come, first-served basis until all fu'nds are .depleted.
'If you have any questions or would like further
information, call
The City Manager at the City of Mound' 472.1155
CITY OF HOUND
ANNOUNCES NEW PAINT AND FIX-UP PROGRAM
WILL PAY UP TO $500.OO TO BEAUTIFY YOUR BUILDING EXTERIOR
The Mound City Council annouces a new program to encourage storefront and
streetscape improvements within the commercial areas of the City of Mound.
The funds will be used to encourage (and pay) all eligible Mound retial
enterprises (owners and tenants) to paint and fix-up their building exterior. The
City will use these funds to reimburse up to.25% of the improvement costs to $2,000.
An initial allocation of $6,200.00 will enable the City to make a minimum
of 12 grants for facade and streetscape improvements.
To apply:
- Determine the amount of exterior work you would like to do.
- Obtain estimates for all the work.
- Complete and return the Paint and Fix-Up Program Application on the reverse
side.
Qualified applications will be accepted and approved in the order they are
received until all $6,200.00 has been exhausted. Applicants will be notified of their
'approval or denial within one week of the receipt of the application.
Work does not have to be under way in order to submit your application.
If you have lpreviously received a Grant from the City for storefront assistance, you
will not be eligible for this program.
contact:
For additional information or assistance in completing your application form,
Jon Elam
City of Mound
5341Maywood Road
Mound, MN. .55364 Phone: 472-1155
ELIGIBLE WORK
- Paint Your Building
- Sandblasting
- New Doors, Windows or Siding
- New Awning
- Exterior Signage
- Tuck-Pointing
- Street Furniture
- New Shrubbery
- Blacktop
- New C~ment Walks or Stairs
Solid lines are eligible areas.
FIRM NAME
CITY OF MOUND
PAINT AND FIX-UP PROGRAM APPLICATION FORM
PHONE
ADDRE$~ ZIP
ADDRESS OF PROPERTY TO BE IMPROVED
(One application per property)
NAME OF PROPERTY OWNER
(If different than applicant, owner must sign this form to indicate approval.)
NUMBER OF YEARS AT THIS LOCATION
(Established concerns receive preference points over newer firms.)
PRESENT ZONING STATUS OF PROPERTY TO BE IMPROVED
(Property must be clearly in conformance with Zoning Codes & Ordinances.)
(If you are unsure of the zoning status, check with City Planning: 472-1155.)
DESCRIPTION OF PR.OPOSED IMPROVEMENT(S)
(Improvement(s) must be designed to be compatible with surrounding properties.
Applications for work flagrantly inconsistent w~th their area will be denied. If
the improvement(s) are required by the City or Courts, you must indicate that your
work will be in excess of requirements. Attach a picture of building.)
NUMBER OF STREET FRONTAGE FEET TO BE AFFECTED BY IMPROVEMENT(S)
ESTIMATED COST OF IMPROVEMENT(S) $
(Attach a copy of the estimate. Personal labor cannot be in inciuded.)
WHAT PERCENT OF THE LABOR WILL YOU B'E DOING YOURSELF?
(Personal labor or 'sweat equity' received preference points.)
DATE WORK WOULD BEG IN
COMPLETION DATE
APPLICANT'S SIGNATURE
OWNER'S SIGNATURE
DATE RECEIVED DATE APPROVED (DENIED)
Complete and return to: City of Mound, 5341Maywood Road, Mound, MN. 55364
The City of Mound is an equal opportunity/affirmative action organization.
April 5, 1~83
MOUND DOWNTOWN COMMERCIAL BUILDING REHAB. LOAN PROGRAM: DRAFT #5 ·
The purpose of this program is to provide financing at attractive interest rates to
stimulate the rehabilitation of commercial buildings in Downtown Mound in response
to the new improvement plan. During Year VIII of the Mound Community Development
Block Grant (began J~ly 1, 1982). the City budgeted $40,000 for interest subsidies
on rehab loan for commercial buildings. ~This procedure is viewed as one of the most
effective ways of both 'leveraging the available funds, and making the largest amount
of money available as quickly as possible.
An additignal sum of $5,000.is available during Year VIII of the Block Grant program
to help'underwrite design costs'incurred during the development of plans for rehabi-
litation work. Finally, some administrative funds will. be made available to assist
in the preparation, reglew and administration of loans and loan applications.
· Design Services· Grants
The City will make available $5,'000 in Community Development Block Grant monies to
· provide design assistance to those planning improvements' to a downtown commercial
building. Interested persons should apply to the City for the money, and must meet
all the following requirements, before receiving funding:
1. The appli.'cant must match the grant on a dollar per dollar basis with private
funds for the design work.
2. Grants are limited to $750 per applicant.
3. The grant monies may only be used for"~'design consultation" or "deSign sketches"
services. These services· may range from rough concept sketches, to architectural
schematic and design·development drawings that show materials, finishes and
colors for a'project.
4. All des'ign work must be·consistent with the provision set forth in "The Design
· . Guide for Downtown Mound".
5. The structure must be located in the downtown strategy area.
6. The structure must be a building in commercial or service use.
A Commercial Rehab Loan Program
The $40,000 in Block Grant funds will be used to pay a portion of the interest charged
by banks on $100,O00 in loan monies. These funds wil.1 be loaned by the State Bank of
Mound or any other financial institution following their standard loan procedures and
requirements; however, the loan applicants will first be required to submit a separate
preliminary'loan application to a special Downtown Loan Qualification Committee.
Committee is made up of the Downtown Advisory Committee Chair, the Planning Commission
Chair and the City Manager. This Committee will examine the applications received to
determine if the proposed activities are consistent with the objectives of the
downtown revialization plan, In summary, the loans will be judged both on their
financial merits and on the extent to which they are consistent with the objectives
and guidelines of the downtown revitalization plan.
Terms of the Loan
D~scussions wlth the State Bank of Mound indicate the standard rehabilitation loan
for a commerical structure has a five (5) year term, and is available at a fixed
interest rate near the current prime lending rate. The State Bank of Mound has
agreed to set. up an initial loan pool of $1OO,O00 to initiate the program. However,
other financial institutions may be approached b~ applicants to participate in the
program. Applicants should ask their bank to contact the City of Mound for details.
The Block Grant funds would Potentially be used to reduce the interest rate, to an
effective interest rate of about '8-9 percent on the loan.
Example of Loan Subsidy in Operation
* A standard loan of $10,OO0 - 5'years @ 17% ~ Monthly Payment - $248.53
Total Interest Paid = $4,91].80
* Special loan of $10,OO0 - 5 years ~ 9% - Monthly Payment - $207.59
' Total Interest Paid. = $2,455.40
Community Development Block Grant Interest Subsidy to loan = $2,456.40
Another issue concerns the'maximum of individual loans~ Although'this will be
determined through the loan applicants ability to secure and repay the loan, a ceiling
is established to insure several large borrowers do not monopolize the funding. The
maximum amount of loan funds permitted for each applicant'will be $20,O00. Interest '
subsidy amounts cannot exceed 25% of the loan amount, i.e. Loan of $10,OOO - Interest'
subsidy = $2,500.
Invitation for App]icatlons and Eligibility Requirements..
The Downtown Loan Qualifi'cation Committee will make a public announcement to all
downtown.store owners and occupants that appliQations for assisted loans will be
accepted. The loans will be considered on a first come, first serve basis. As the
Committee receives applications, it will review them in the order of their submission.
Each application will be examined to determine it meets the basic terms set for the
loans regarding size and matching funds, and that the loan meets the following basic
eligibility requirements.
-2-
Basic Eligibility Requirements for Participation in the Mound Downtown Commercial
Rehab Loan Pro~ram
A. General - a rehabilitation loan may be made only with respect to commercial or
mixed residential-commercial use properties located w.ithin'the Mound Downtown
Strategy Area. Commercial property shall mean property which is engaged in the
sale of goods or services to the general public'and is an income producing
investment. Mixed-use~propert~ shall refer to property for which the ground
level will be used, after rehabilitation, for commercia.1 purposes, and no more
than 50% of the building will be used for residential and common'space purposes.
The applicant is responsible for securi.ng all necessary appr.ovals-for the l°an
from conventional sources.
B. Applicant. Eligibility - the loan applicant must:
1. Own the property.under consideration or be the :purchaser occupant of the
Property under a land sales co~tract or any similar agreement for the
purchase of real property. OR
2. In order for a commercial lessee to be considered for a loan, the lessee
must first provide written permission from the owner of the structure.
C. Property Eligibili'ty - the property must:
1. Be located within the Mound Downtown Strategy Area.
2.- All present property taxes and municipal charges paid in full, and be in
conformance'~ith zoning and all other applicable city codes.
D. Scooe of Eligible Project Activities and Costs
1. General - a rehabilitation loan may be made only with respect to property in
need of improvement in accordance with the activities outlined under
Allowable Costs.
2. Allowable Costs - a rehabilitation loan may be made to underwrite the
following costs:
a. Improvements to t.he buildings exterior.surfaces, including, front, side
posterior oLrtside walls, that will lead to the improvement in appearance
of the down~own and esthetic enhancement consistent with adopted downtown
plans and themes.
b. Modifications and replacement of exterior signage consistent with adopted
design quidelines for .the downtown.
c. Corrective measures and modifications to roofs, windows, doorways and
other exterior building components necessary to successfully conclude
rehabilitation of the building facade.
d.' Building permits, architectural fees and related costs as included in
the project description.
Upon determination that the applicant meets all requirements, the Loan Qualification
-3-
Committee will certify the application as acceptable, and recommend the applicant to.
submit a loan application to the State Ban~ of Mound or'any other financial
nstitutlon willing to participate in the program.
-4-
YEAR X (1984} URBAN H'ENNEPIN ~OUNI~
CDBG PROJECT PROPOSAL
THIS SECTION WILL BE COMPLETED BY HENtiEPIN COUNTY
ER Status: /
status Environmental Review Specialist
Project Number: /
numSer 'Financi il Mahager
Project Eligibility: /
~i tati on PA representative
date
date
da~
GENERAL INFORMATION
'1. Community:
· 2. Project Name:
3.. Contac:.~erson:
m ' MOll~n "
SPECIAL ASSESSMENT GRANTS'
B. PROJECT DATA
JON ELAM
1'. toEation: Census Tract/s
Street Address "
(Attach map, if applicable)
City Wide
X
Description
Describe the project and all necessary component activities. Be as detailed
as possible.. {Add sheet if necessary.)
To provide assistance to. any eli"gi'bie per~on who has~ 6een )~mpa~ted 6y~
City sponsored public faci)Ft¥5 improvements.' This: may. include water,
sewer, street, and drainage projects,
Is this a multi-year project: yes
CDBG Year Started , Project Number
no, if so please indicate
~dentif~ the,Co.unity need that the project is intended ~o meet and explain
how the proje.c.t will make substantial improvements.
To assist and, minimize the impact of communi..ty improvements on low income
residents.
State the accomplishments the project is meant to achieve in a quantifiable
manner. (For example~ the rehabilitation of 10 houses for low and moderate
income families) · .
Help 1-2 families.~·
Impl ementatl on Schedule.
Note: The Urban Hennepin County Joint Cooperation Agreement requires the
expenditure of funds'within two years of the grant award date.
'a. Identify projected starting and c6mpletion date~ 7/1/84 - 6/3~/86
b. If not available~ please explain.
Fundabil fry ~..'
a. This proje, ct will: (check one and provide requested information)
X Principally benefit low and moderate income persons
State any special 'considerations you have given to benefit the
moderate income persons, the number of persons directly benefiting,
and how they will benefit.
Only Iow and moderate income persons are el igi61e.
Remove slums and blight or
Describe the blight and-indicate whether the municipal government'
has officially designated the area as blighted or when it plans to'
do so.
NOT APPLICABLE'~ .
Meet a Particular Urgent Need
Describe the nature of the need and the time at which it
originated.
NOT APPLICABLE'-
Identify which element of the Urban Hennepin County Statement of Objectives
the project addresses:
CitatiOn: Pub.lic faci'li{~'es..&'~mprovements
m.
n.
o.
* p.
q-
$.
Budget'..
Using the following budget lines; please list the amount budgeted for each
component of the project. ~
a. Acquisition o~ Real .Property Senior Centers
Parks and Playgrounds Development
Street Improvements/Sidewal ks
e. Streets/Sidewalks Special AsseSsments
f.- )Rater and Sewer
g. Water/Sewer Special Assessments '..
h. Clearance Activities
i. Diseased Tree Removal
j. Relocation Assistance
R6moval of. Architectural Barriers
Rehabilitation of Private Single Family Property
Rehabilitat.ion of Public Residential Structures
Rehabilitation of Rental Property
P1 anning
Administration (general program overview)
Public Service
Contingency v
Other - please explain
b.$
c.
e. $
f.$
g.$
h.$
i.$
k.$
1.$
o. $
p. $
q. $
s. $
3,656.
TOTAL BUDGET $ 3,656
* The cost of administering a funded project is to be i~cluded within the proposed
project budget and not on line "p".
February 1984
YEAR X (1984) URBAN HENNEPIN ~OUNI~
CDBG PROJECT PROPOSAL
THIS SECTION WILL BE COMPLETED BY HEN~IEPIN COUN~
ER Status: '. /
status Environmental Review Specialist
Project' Number: /
n'umbe r 'Fi nanci'~l - Manager
· Project Eligibility: /
. 'citation "PA represen=ative
date
aate
'date
GENERAL INFORMATION
1. Community:
2. Project Name:
SMALL BUSINESS FINANCING ASSI'STANCE
3. Contact Person:
iON ELAM
PREX]ECT DATA
1'. Lo~ation:
Census Tract/s 276.01.~ 276.02
Street Address
(Attach map, if applicable)
City Wide
Description
Describe the project and all necessary component activities.-Be as detailed
as possible. {Add sheet if necessary.')
(SEE ATTACHED PROGRAM QESC~IPTION AND GUIDELINES) -
Is this a multi-year project: X yes
CDBG Year Started 1983 .., Project Number
no, if so please indicate
(Jobs Bill Project)
Identif~ the. Con~unity need that the project is intended ~ meet and explain
how the project will make.substantial improvements.
- Shgrtage of small business financiml assistance.
- Generate new businesses and.jobs.
· · - Creation' of 6-8 new jobs.
State the accomplishments the project is meant to achieve in a quantifiable
manner. (For example~ the rehabilitation of 10 houses for low and moderate
income families) '
- The committment of 1-2 new commerc['al loan~ between danuat¥. ~, 1985 and
December 31,.1985'
- Leverage.ratio of-4 private dollars'for, every CDBG dollar.
Implementation Schedul e~
Note: The Urban Hennepin County Joint Cooperation Agreement r~quires the
expenditure of funds'within two years of the grant award date.
a. Identify ~ro~ected starting and c0mpletioh date~' 7/36/84 -'12/31/85~
b. If not available~ please explain~
Fundabi 1 i ty ~.
a. 'This proje.ct will: (chec'k one and provide requested inf6rmation)
Principally benefit low and moderate income persons
State any special 'considerations you have given to benefit the
moderate income persons, the number of persons directly benefiting,
and how they will benefit.
Remove slums and blight or
Describe the blight and-indicate whether the municipal government
has officially designated the area as blighted or when it plans to,
do so.
Meet a Particular Urgent Need
Descr'ibe the nature of the need and the time at which it
originated.
Identify which element of the Urban Hennepin County Statement of Objectives
the project addresses:
Ci tati o'n: . Economi c Deve l'opmen ~
Budget' '. .
Using the following budget lines; please list the amount budgeted for each
component of the project. ,
a. Acquisition o~ Real.Property
b. Senior Centers
Parks and Playgrounds Development
d. Street )mprovements/Sidewalks
e. Streets/Sidewalks Special Asse§sments
f.-Water and'Sewer
g.
h.
i.
j.
Water/Sewer Special Assessments
Clearance Activities
Diseased Tree Removal
Rel ocati on Assi stance
~emoval of. Architectural Barriers
Rehabilitation of.'Private Single Family Property
Rehabilitation of Public Residential Structures
Rehabilitation of Rental Property
P1 anni ng
Administration (general program overview)
Public Service
Contingency · .'
Other - please explain Economi~c Development
b.S
¢o $
e.
f.$
g. $
h.$
1.$
j.~
k.$
1.$
mo 5..
o. $
p.$
q. $
r.
s. $
22.21b
TOTAL BUDGET $ 22,214
)* The cost of administering a funded project is to be i~cluded within the proposed
project budget and not on line "p".
February 1984
CITY OF MOUND
SMALL BUSINESS ASSISTANCE
LOAN PROGRAM
SEPTEMBER, 1983
BACKGROUND
In the Spring of 1981, the Mound City Council appointed a
Downtown Advisory Committee to begin the process of Studying the
revitalization of the downtown commercial areas of the City.
Initially this started with a study of shopping habits and
an inventory of the existing commercial services. The second
step included a detailed design guide for Downtown. The City
Council adopted this plan in early 1982, although final funding
and implementation has yet to be decided.
An additional focus that came from the two efforts was the
need to develop some creative financing to encourage existing
businesses to begin the process of reinvesting in their
commercial properties. Using Housing and Community Development
Funds (HUD), two separate programs were initiated.
The first was a Design Grant Program, whose purpose was to
take the Downtown Design Study to its next step and apply it to
specific buildings. By using a 50% Grant up to a maximum of
$750.00, the Committee felt that people would work with
professional designers, where they otherwise might not, thus
giving MOund a more professional coordinated appearance.
The second program was an Interest Assistance Program for
the store front rehabilitation efforts. This focuses on reducing
the interest rate charged by local banks from the going rate (14
-16%) to a more manageable level of 8 - 9 %.
As of May 1, 1983, these two efforts have achieved some
success. Four businesses have participated in the Design Grant
Program and two have received Store Front Rehabilitation Grants.
Public costs for these efforts have amounted to approximately
$13,000 and private investment has exceeded' $180,000, a leverage
ratio of better than 15:1.
Although these efforts are up and operating, gaps still-
remain in the effort of the City to develop a comprehensive plan
of capital financing assistance in commercial areas. To further
add to the available resources the following Small Business Loan
Program is offered.
CONCEPTS
As a second phase of our Downtown Commercial Rehabilitation
efforts, the City is creating a revo-lving loan fund from which
high risk, front-end financing and technical assistance could be
available. The goal of the program would be the improvement of
the commercial areas of Mound, improved job opportunities for
city residents and leverage of private investment tha.t otherwise~
would not occur. This will address the lack of small, lower
interest, longer term loans available t.o the small business owner
(particuarly the tenant business or Contract for Deed purchaser)
for real e'state related improvements.
Reductions in the availability of public funds ~for these
purposes (SBA, etc.) are likely to widen the gaps in the future.
Extension of the public/private partnership created in the City
in early 1982 in its downtown interest reduction program, will
offer the opportunity to continue and improve the capability to
meet such needs.
This new concept suggest~s a partnership be established by
the City of Mound to fund a $44,428 Small Loan Progrm to assist
downtown business so they can improve their markets and service
and retain or expand job opportunities.
The Program will provide $22,214 from City CDBG Funds and
at least $22,214 from area financial institutions. The City's
fund will be the source of longer term loans of up to $22,214 for
a term up to 20 years at 2% interest. This will be matched by
equal loan amounts from area financial institutions at going
interest rates to provide a total loan up to $44,428 at a melded
interest rate of about 8 - 9%, currently.
This pilot program is projected to operated for a two year
period.
The program Objectives will include the following:
1. Be limited to or give high priority to the provision of
loans and technical assistance to small business for
real'estate purposes.
2. Be responsive to identified small business needs.
3. Be targeted to the central business district as deter-
mined by the Downtown Advisory Committee.
4. Service existing small retail, service or commercial
businesses, or start up businesses that would use
undeveloped land and vacant or underutilized buildings
and retain or create new job opportunities.
5. Be coordinated with existing and proposed small bus-
iness assistance programs available.
6. Serve as a catalyst to leverage additional public and
private resources and actions.
7. Be operated on a revolving fund concept.
8. Be established on a two year program basis.
These objectives will address a number of gaps in service to
the smaller retailer and services businesses, These include:
- Current financial assistance tends to favor the larger
business with a good track record and the new businesses
that have high potential for growth and job creation.
- Shortage of revenue bond financing which is too costly
for the small business that requires under $50,000.
- Contract for Deed and tenant businesses are often unable
to finance improvements.
- A smail flexible longer and lower cost loan is needed to
compliment the present City Commercial Storefront Reha-
bilitation Loan Progrm. .~
- The smaller retailer does not have time to devote to
planning physical improvements for his place of business
... or joint efforts with others.
- Technical assistance in management and marketing is often
needed but operator is not aware of the need, the
resources available or the poten.tial benefits.
Eligible improvements may include, facade or other exterior
improvements including parking, and interior improvements that
result in new business or new jobs. ~
Administration of the Program will be conducted by the City
of Mound under the guidance of policies set by the Downtown
Advisory Committee and the City Council.
The City of Mound will responsible for:
- Identifying the area to be served.
- Improvements to be f~nded.
- City requirements and ordinances requiring com-
pliance.
- Determining individual applications eligibility
based on above factors.
The City of Mound will be responsible for information and
advice as to:
- Any special design criteria established by the Downtown
Advisory Committee.
- Proposed public improvements to be made by the City
(street paving, parking, lighting, street furniture, etc.
- Distribution of Program information to area businesses.
- Referral of applicants to local banks.
- Participation Agreements with local banks.
Financial institutions will be responsible for:
- Receipt.and processing of applications.
- Provision of matching loan funds at least equal to funds
to be provided from the City's Revolving Loan Fund.
- Determiningapplicants credit risk and required colla-
teral.
- Determining loan amortization period.
- Approval or disapproval of loan, subject to City Certi-
fication as' to Program eligibility.
- Collection of lien waivers, and other documents deemed
necessary for loan disbursements.
- Distribution of loan funds subject to final approval of
the City of Mound.
- Distribution of principal and interest payments to the
City o£'Mound Small Business Revolving Loan Fund. On
default, the claims of the City of Mound are subordinate
to .the bank's.
ADMINISTRATION FEES
A processing fee of $250.00 will be charged each loan
applicant. This fee will cover the time of City Employeesin
reviewing and determining the eligibility of the application to
be in conformance with Program and City rules and regulations.
March 19, 1984
CITY of
MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
TO: CITY COUNCIL
FROM: CITY MANAGER
Enclosed is a copy of the letter I sent last year to Judy Brekke of the
Shoreline Early Childhood Development Center.
As you might remember, she requested $4,800 of CDBG funds to provide for
a sliding fee child care subsidy. She has again requested assistance.
I have not integrated her activities into the budget because:
1. Our CDBG Budget was cutback from $110,OOO in 1983 to $76,OOO this
year.
2. We could find ourselves in a tight fiscal situation with these
funds if any or all the economic development projects get going.
3. I worry about funding social services from a year to year Federal
Grant, i.e. How do you cut them off, etc?
4. Monitoring programs of subgrantees opens up another administrative
problem at a time when we are having a hard time keeping on top
of what we already are doing. .
If you want to undertake this activity, that would be fine, but I will need
to cut back in one of the proposals I've included in the 1984 proposal.
JE:fc ..
CITY of MOUND
April 12, 1983
53~1 MAYWOOD ROAD
MOUND. MIN'NESOTA 55364
(612) 47~'-1155
Ms. Judy Brekke
Shoreline Early Childhood Development Center, Inc.
3745 Shoreline Drive
Wayzata, MN. 55391
Dear Ms. Brek'ke:
The Mound City Council considered your request for a $4800 grant at its
April 5, 1'983 Meeting. After consideration it was felt that since
1983's funds.had already been submitted that this item could be
reconsidered in February-March 1984 for 1984 funding.
Thank you for submitting the materials.
hearing from you for the 1984 funding.
Sincerely,
City Manager
We wi 11 look forward .to
JE:fc
Early Childh o o d
Developrn en t Center c.
Shoreline Early Childhood Development Center, Inc. is. a non-profit'
tax exempt corporation dedicated to providing a safe and secure
environment for community children while enabling them to meet
the demands of a complex world.
Shoreline Early Chiidhood Development Center, Inc. includes:
1. Childcar~ . ·
2.. Pre-School
3. .Early Intervention (a D'evelopmental'Achi~vement Center)
4. Bridge. program (a Developmental Pre~scho01) -~'--
Our proposal focuses on two of these programs.' '
CHILDCARE
The'Childcare program, in Light of our current economy, i's "'
e~sential to provide families of two and/or single parents
the opportunity to".work and/or seek work. Shoreline has for
the past 11 years served your community by providing a quality,
safe 'and secure.program. Shoreline Childcare in January, 1983
received designation as a Special Needs D~ycare program by . ..
Hennepin COunty. Special Needs 'children now. have the opport'unit~i"
to be' pla.ced in. a social and learning situation with~ age-mates--~
to' furthe, r enhance their development in various delayed areas .
(i,e. speech, motor, etc.). Unfortunately, not all our families
can afford to finance their Childcare needs fully and thus are,--
not. able to obtain t~elr full potential in the workforCe. · ~:.
Cost of care-for the childcare program which operates 12 hours
per ~ay,5 days per week, on a year round basis, 'is as follows:-
* Full Day {5.days a week,, more than 6 hours).', .... $2 .00 per month
*'Full Day {4 days or less; more than 6 ~ours.), .... ..12,00 .per day
lf'Day ( 5 to 6 haurs) · 9 25 per d y
* Ha ........ ..... ................. a
H ly (up 4% ) '
* our Fee- to ho~rs ...... · .................... :-"2.15 per hour
LOCA"I'ED IN GOOD SHEPHERD CHURCH, 3~45 SHORELINE DRIVE, WAYZATA, MINNESOTA 55391. 471-8433 ~,.~-~"
P. age 2
Included in the fees are'meals· and snacks..On a twelve hour
da~ this would includ~ breakfast, a hot lunch, and two upp-
lemental'"snacks..'"
EARLY iNTEaVENTION
The Shoreline Early Intervention Program is an individualized
program designed.for developmentally delayed, neurologically
impaired; mentally retarded or physically~handicapped infants
from birth to four years of age, and their parents or guardians..
Using the normal, sequence of development, this program is adapt-
ed to the child and his environment; realizing, although he
may have ~pecial°needs, he is also a part of a'family unit.
· Suggested programs and~ activities are written with the concern
that they enhance the parents~ interaction With the child, not
impose an additional burden to the family.
'The' Philosophy of this program is Ghat the 'parents and .guardians'
are the prime educators. With instr'ucti6n~ assist.ance and re-
· ~assurance, a parent-or'guardian can p~ogide an effective home
.program.for their child. ...
Service is.pr0vided on an In-center as ~well'as'Homebound basis-
either.individually, or.'if appropriate~ wi~ a group.
~unding for this ,,program' is provided through Title XX monie§
-and parent fees determined' by a Hennepin County instituted
sliding fee scale. Charge for l½ - 2 hour Visit is $70.85.
'Parents' ~ees .range from $9.00 - $93.00 monthly.· Although
the parents: portion of these fees sometimes may be covered by
insurance, .there are' circumstances when insurance c, overage is
not available. For moderate and low incbme families.,' already
burdened with the unexp.ected costs of a special needs child,
these additional costs can be a determining factor in cont-
inuation of the program. ~ Co.unity funding could be used to
.cover DAC par,ent fees and/or additional, phMsician ordered, ther-
apy In cases where .insurance does .not cover the cost for-low
or moderate income families tha~ are in financial crisis.
48% of the families using these programs, are' drawn fr6m
kommuni{y. It is,Shoreline Early .Chil~e_ve!opment Center's
'proposal' that funds 'in the amount of ~~ appropriated
from Mouf Hennepin County community deve o-f~-~pment block grant
program allocation to assist more parents of lower and moderate
_,~.~ incomes in Mound and afford them the opportunity to' use
our services.
ShoceHne Early Childhood De~looment ~entec
SUBURB COALITION,VOiCE
An Afflflafe of Greafer Minneapolls Day Care Assoclat$on
Serving the Suburban Communities of Hennepin County *
volume 2
issue I
March 1982
Child' Care Sliding Fee:
Members of the Suburban Child Care Co-
alition, and other residents of suburban
Hennepin County actively concerned about
the high cost of qua.lity child care, and-
the plight of working parents who cannot
meet that cost, have been busy during
the last two months carrying on convers-
ations with city council members in a.
variety of municipalities. Following up
on information received from the Hehn-
epin County Office of Planning and Devel-
opment that cities may spend up to 10%
6f their Community Development Block
Grant Funds on public services, and that
ld care' sliding fee program for low-
derate income families is both an
eligible and a fundable project, a-lnumber
of communities have begun to look-into
the lodal need for this 'kind. of service.
In the process we have uncovered some
interesting statistics. -,
The suburbs are the home of 65% of the
County's children aged 0-9, and 47% of
.the female-headed families. In some
cities the number of female-headed fam-
.ilies in 1980 had increased as much as
557% in l0 years. 64% of female heads
of household have at least one child
under the age'of..6. 60% of all Minnesota
single parent mothers with pre-school-age
chi'ldren, and 78% with school-age child,
ten are in the labor force. In 1976 the
median income for a female-headed family
in Minnesota was $8,050. Nationally, for
female-headed families with children, if
at least one of the children is under 6
years of age, the percentage in poverty
m~8% o
In Hennepin County, costs of child care
for 2 children, if one ~is an infant and
the other a pre-school er,. can easily run
to as much .as $530 per month. If one is
a pre-schooler, and the other is in schoo
A Community Development Issue?
full-time and under the age of 9 o~0,
good child care may cost $375 per month or
more.
The advantage of a sliding' fee child
care program is that it allows a working
parent to remain on the job, without worry-
ing that a slight raise in salary may make
her ineligible for federally or state-fund-
ed subsidies for low-income families, and'
thus force her out of the job market and
back on welfare. As a parent's income in-"
creases, the fee she pays for child care
increases proportionately, until she reaches
the top level of the Section VIII CDBG in-
come limits, at which point she is presum-
ably able. tlo pay the full cost of care.
A sliding fee child care subsidy is NOT
n income maint, ena_nc.e or well, are program.
t i-~-~n fact just the opposite in the way
that it operates, providing-support for
parents to maintain employment without
penalizing them for upward economic mobil-
ity. There is an impressive body of data
available to prove that the tax payments of
parents participating' in a ~lidtng fee pro-
gram significantly exceed the amount of
subsidy, ..-Thus the child care sliding fee
concept 'is a positive support to the econ-
omic development of both the recipient par-
' ent and ~he co..mm, unity in which she resides.
'Helen WatL~ns, staff
Subu~bdn ,Hennepi. n Obil d Care Coal ition
Cost Effectiveness
of Quality Programs
The Subur. ban Hennepin Child Care Coalit-
ion has purchased the High/Scope slide and
cassette presentation on the long term '~
soc.ial and economic effects of high quality
e.arly childhood education, The production
dramatizes the results of a study performed
in Ypsilanti, Michigan, by the Center for
the Study of Public Policies for Young
Chi}dren, Evidence of the benefits, as
reported to the 1982 Southern Governors'
Conference in South Carolina, in a paper
t.ttled The Cost-Effectiveness of Nigh
Quality' EarlS Chil'dhood Programs, led to
the conclusion that '.Ibudget-minded policy
makers: looking for hard evidence that-.a
program works ,. wil 1. certa inly understand
the implications for policymaking which
this, research supports."
As noted in the Minneapolis Tribune,
May ll, 1978: ..
"Children who attend nursery school be-
'fore they begin elementary school have a
better chance of getting into college,
will make more money in their lifetimes
and probably, will not end up-on welfare,
a 17-year study shows.
'~We' believe the findings a~e astounding
and have great social and political im-
plications,' said David Weikart, a psych-
ologist who conducted the study among dis-
advantaged youths,
The study, which divided 123... econom-
ically and educatio, nally disadvantaged i
Ypsilantt students, into two groups, showed .
the group of children who .received two
years of preschool education outperformed
the group of students who entered school
at kindergarte, n.
' Eigh~y-~hr~e percen~ o~ t~e ~re~ch~ol
group performed on at least average levels
during early grade school years, compared
with 62 percent of the other group.
Teachers perceived the preschool stu-
.dents as better behaved, more disciplined
and more motivated t.han the other stu-
dents,
Several of the preschool students are
now in college. None of the other group
are.
None of the preschool students are on
welfare, .compar:d with lO percent of' the
other group.
Weikart said., the preschool Paid fo~'"'-'.-
self because th~ children required fewer
special programs in later school years.
He also said the study indicated the pre-
school children had prospects Df higher life-
time earnings."
(Thanks to Gay Touhey for this information.)
The Suburban Coalition believes that the
same benefits result from high quality care
of any kind, whether .in small.groups within
a home setting, with a trained family day
care pro.vider,.or in.larger schools-and
centers.
Anyone may become a co-owner .of the slide/
tape-presentation by sending a check for
$2.00 (made oul~ to the Suburban Hennepin
Child Care Coalition) c/o Helen Watkins,
GM_DCA, 1006 West Lake St., Minneapolis 55408.
A co-owner' may reserve the slides and tape
for a maximum of 3 days, at a minimum of one
week's advance registration. They are espec-
ially appro)'~riate for viewing by parent
groups, school district administrators,,
councils, and anyone, interested i5 corrc ,r-
ating the long term value.of investing in
early childhood services.
S"pecial Needs Training
Thursday, April 7, 7:00 - 9:00 p.m:
"WORKING TOGETHEI~"
This workshop will deal with the effective
development of a team approach to working in
the classroom.
Instructor: Barbara Iq-auk,.
Early/Special Educatio'n Teacher; Roseville
Public School s.
Place: St. Louis Park Preschool, ~'
6715 West Minnetonka Boulevard
Monday, April 18, 1:00 -. 3:00 p.m.
".MOVEMENT IS VALUABLE"
This workshop emphasizes Physical devel6pment
as part of the total developm6nt of the child
Instructor: Wisti Rorabacher,
Early/Special Education Teacher, Minneamolis
Public Schools.
Place: Community Child Care,
60th & Nicollet Avenue South, Richfield
Reservations: call Nancy at 823-7243
;.ommunity Recognition
or Quality Child Care
uburban Directors'' Group has been look-
~g variet-y of models for a quality-con-
· oiled'professional accreditation program,
'eferably using a peer-evalQation team app-
)ach. Among those studied is ~Up.qrading Pre-
:hool Programs in Phoenix, Arizona. Since
369, UPP has given recognition and endorse-
· _nt to programs for young children that have
~intained.a standard of excellence. UPP's
Landards-a~low' for a'wide range of teaching
~d.learning philosophies. The .format for
:creditation provides for self-assessment as
ell ~s outside observation and evaluation.
)nsultation services are maintained by vol-
nteer teams of parents and professionals.
riteria of quality relate to staff attitudes
~wards children, staff/child ratios, program
oals', creative environments for varied act-
vities and self-educa.tion, health and nutri-
ion standards, and a positive social and
motional climate. UPP's list of approved
rograms is used by many families when
e.l~cting,child care appropriate to their
eeds.
rmation provided ~(ith the help of
;ay Touhey, Director, St. Mary's of .the Lake
Iursery School, and Kathy Dayton, Director,
:hildren~ Learning Center, Plymouth.) ~
Some of the questions being raised, by. the
;uburban Directors Group are:
Ihat might broad-based community recognition
~f high quality in programs - family and
lroup family day care, nursery schools,
;dhool-age programs, a'nd day care centers -
Io for the whole child care system in our
Lrea? How might this kind of education of
)otential consumers impact on the reputation
Df child care in general, as a profession,
~nd as a service ~orthy of public support?
In addition, the Suburban Directors Group
~as been gathering and collating data on fee
;cales, staff salaries and benefits, adminis-
trative costs, parent and staff policies, and
)ther budgetary concerns. As a group, these
~irectors have developed a highly effective
'k for sharing inf6'rmation of profess-
benefit to all. Future meetings will
%. ~-stigate further the economics of child
care, and will present an opportunity to
dialogue with the new CountY Community Health
Day Care Consultant concerning the needs of
child care p~ograms.--
The next officially scheduled meeti.ngs
of the Suburban Directors Group are:
Thursday, March 24,
at the Children's Learning Center,
Harley Hopkins Elementary School, 125
Monroe Avenue S., Hopkins, and
Tuesday, April lg,
at Lenox Community Center
6715 Minnetonka Blvd.
(betw. ~eorgia & Hampshire
All meetings begin ~ith a bag lunch at
12:30, and proceed with the official
agenda from 1:00 to 2:30 'p.m.
To get on the mailing list, or to find
out how you can start a similar support
group of child care providers in your
area, contact Helen Watkins at 823-7243.
American 1R d Cross
~Heaith & Safet~ Workshop for'Providers
DATE: Saturday, April 9.
CO~T:'" $11'.00. P're-r'~g'ist~ati6n by check;
mail to Therese Crisman, American Red Cross,
3915 Adair Avenue N., Crystal, MN 55422.
Telephone: 533-3048
LOCATION: Northridge C~re Center (3rd floor),
5430 Boone Avenue N., New Hope
AGENDA
8:30 - 9:00 Registr~t. ion
9:00 - 12:00 Developmental Stages and
Reactions to Stress, with Rochelle
Brandt, Director of Child Guidance
Clinic, l~orth Memorial Hospital
- Accident Prevention and Poison Control
- Childhood Diseases and Medications,
with Nurse Practitioners
-leO0 - 4:00 Emergency First Aid, with
"Hands-on" Practice
(Choking, Shock, Bleeding, Bone. breaks,
Eye injuries and Head injuries)
This class meets all First Aid requirements
under MN DPW RuTe 3. PLEASE BRING A BAG
LUNCH; coffee will be provided.
80txSg e3oseuu!lAI 'SllOdeauu!lAI
)EI~IJ1S i)Xl~'l ),S8~A 900 I, 'J~)lu~)o uetuqe-i
uo!~.moss~ eJeO XeCI s!!odeauu!ihi ~e~
OTHER HEALTH AND SAFETY CLASSES
Infant and Child Safety.: This course deals wit~ accident prevention and first-aid treat-
ment of childhood inj~es; toy, playground, and car safety; how to prepare for an emerg-
ency; and who, when, and how to call for assistance.- Rands-on learning of infant resus-
citation. '
Tuesdays, 4 weeks,beginning April 5, 6:30-9:30 p.m., Minnetonka Sr. High School $25.00
Wednesdays, " , beginning April 6, 9:00-12:00 a.m., Hennepin Technical Center ~ommunity
Center, 6300 Walker Street, St. Louis Park $25.00
Thursdays, " , beginning April .7, 6:30-9:30 p.m., HTC Community Center $25.00
Infant and First Aid for Child Care Providers: This course is designed for child' care
providers and'meets the first aid requirements from Minnesota DPW. It is a condensed
version of the 12 hr. Infant and Child Safety Class, including: burns, head injuries,.
seizures, lacerations, poisons. Hands-on learning of infant resuscitation techniques
will also be covered. For more information on all these programs., contact Margaret Becker,
Project GIFTT Coordinator, HennePin Technical Centers-Central: 920-4122.:
MULTIPLE CHOICE: CELEBRATING FAMILIES - an upcoming SW Cable TV Production
Some m~nbers of the Suburban Coalition have joined with staff of the Fraser Infant and
Preschool'Programs in Richfield, the Richfield Fun Club, Storefront/ Youth Action, and
Community Education Parenting Programs in Edina, Hopkins, and Eden Prairie to form a.
volunteer consortium known as MULIIPLE CHOICE. Their first production - a panel dis-
cussion among a variety of parents on-the differences between their expectations and
the realities of parenthood - titled CELEBRATING FAMILIES, will be aired on the public
~ccess channel of S.W. Cable TV sometime in April. Watch for it~
CITY OF MOUND
Mound, Minnesota
CASE NO. 84-310
Planning Commission Agenda of March 12, 1984.
Board of Appeals
Case No. 84-310
Location: 5657 ~randvlew Boulevard
Legal Desc.: Lots 108 and 109, Mound
Shores
Request: Lot-split subdivision
Zoning Dist. R-3
Applicant:
Mr. & Mrs. Henry Paumen
5657 ~randv~ew Boulevard
Mound, MN. 55364
Phone: 472-7427
The applicants, Mr. & Mrs. Henry Paumen, are requesting to subdivide the South
75.06 feet of Lots 108 and 109 from the parcel that their home presently is placed
upon with a waiver of provisions of Chapter 22 subdivision of less than 5 acres.
The area of the.newly created parcel would be 7,493 square feet' with the remaining
area of Lots'lO8 and 109 to be 18,377 square feet. Both parcel front on an improved
public right-of-way.
The R-3 Zoning District requires 6,000 square feet minimum lot size for single
family and 12,O00 square feet minimum lot size for a two (2) family dwelling. The
proposal would exceed the lot area for a single family home and the lot width re-
quirement of 40 feet.
Recommend:
I recommend approval of the lot-split subdivision waiver of Chapter 22
provisions of less than 5 acres and recognize the existing dwelling
3~foot non-conforming setback to Bellaire Lane upon the condition the
newly created parcel be assessed an additional unit c'harge Of $1828.15
for.a building site.
The abutti.ng neighbors have been notified.
Jan Bertrand
Building Official
JB/ms
Planning Commission Minutes
Marc..h .1_2~ .19_84/~
Case No. 84-310
3. Case No. 84-310 Lot-split Subdivision, 5657 Grandview Boulevard
Lots. 108 and 109, Mound Shores
Mr. and Mrs. Henry Paumen were present.
The Building Official explained that the lot-split"is self-explanatory on the
survey. Existing house is about 3 feet off of what the Zoning Ordinance now
would require on a corner lot; but subdivision hasn't anything to do with the
existing home. Parcel B (south lot) is proposed to be 7,493 square fdet and
the minimum requirement is 6,000 square feet. Zoning is R-3 which allows a
duplex wit'h 12,OOO square feet. Minimum frontage would be 40 feet on the
street, Lot'mo~e than meets the mini.mum r~quirements for a single family home.
The ?aumen"s are probably lookTng at sometime dividing off another lot.
Byrnes moved and Michael seconded a motion to recommend to the Council.that
subd[visi°n,be approyed...The vote was unanimously in favor.
APPLICATION FOR SUBDIVISION OF
Sec. 22.03-a
VILLAGE OF MOUND
CASE NO.
LAND
84-3]0
FEE
FEE. OWNER
/¥-// x- ,/-
Location and complete legal description of property to be divided:
To be divided as follows:
(attach survey or scale drawing showing adjacent streets, dimensi® of proposed
buildin9 sites, square foot area of each new parcel designated by number)
A WAIVER IN LOT SIZE IS REQUESTED FOR:
New Lot No, From
Square feet TO Square feet
APPLICANT
Applicant's interest in the
TEL. NO.
DATE
This application must be signed by all the OWNERS of the property, or an explan-
ation given why this is not the case.
PLANNING COMMISSION RECOMMENDATION:
PROPOSED
LOT DIVISION FOR:
MRS. HENRY
IN MOUND SHORES
Case No. 84-310
-~ GRANDVIEW
BLVD.
I00 0
I
I000t
N
I hereby certt?y that this is t, tlm~. and cor~'c-,'% repre~entation cf e su~,ey of the ~)undavi~ cf:
A. ~ts l~ and lcd/ u~cept tr,,~ South 75 feet th,?~o~, ~u~d 5horo~, ~d
TLc Smith 75 feet ot' ~ts LO~ and ~09, ~%'~,d SLores,
the later!m, of all existinl~ builcings thereon. It aoes nnt our~ri, to oho~ other lm),rov~-
Date: 2-15-8~
Case No.
84-310
MOt
SHORES
Z~
BELLAIRE LA'~
PROPOSED RESOLUTION
C'ASE NO. 84-310
RESOLUTION NO. 84-
RESOLUTION TO CONCUR WITH THE PLANNING COMMISSION RECOM-
MENDATION AND APPROVE THE FINAL SUBDIVISION OF LAND FOR
LOTS 108 AND 109, MOUND SHORES .(PID.#14-117-24 14 0033)
WHEREAS, an application to'waive the subdivision requirements contained in
- Section 22.00 of the City Code'has been filed with.the City of Mound
by Henry and Mildred Paumen; and
WHEREAS, said request for a waiver has been reviewed by the Planning Commission
and the City Council; and
WHEREAS, it ls hereby determined that there are special circumstances affecting
said property such that the strict .application of-the ordinance would
deprive the applicant of the reasonable use of their land; and that'
the waiver is necessary for the preservation and enjoyment of a sub-
stantial property right; and that granting the waiver will not be
detrimental to .the public welfare or injurious to the other property
owners.
NOW, THEREFORE, BE IT RESOLVED' BY THE CITY COUNCIL OF THE CITY OF MOUND, MINNESOTA:
The request of. Henry and Mildred Paumen for a waiver from the
provisions .of Section 22.00 o~.the Cit.y.Code and the request to
subdivide property of less than five acres, described as Lots
108 and IO9, Mound Shores,.PID # 14-117-24 14 0033, is hereby
granted to permit the subdivision in the following manner:
PARCEL "A".- Lots 108 and 109 except the South 75 feet thereof,
Mound Shores.
'PARCEL "B" - The South 75 feet.o'f Lots 108 and 109, Mound Shores.
The new buildin9 site pay or be assessed an additional un'it charge
of $1,828.15.
It is d'etermined that the foregoing division will constitute a
desirable and stable community development and is i~harmony with
adjacent properties.
The City Clerk is authorized to deliver a certified copy of this
resolution ·to the applicant for filing in the office of the
Register of Deeds or the Registra£ of Titles of Hennepin County
to show compliance with the subdivision regulations of this City.
5. This lot/split subdivision to be filed and recorded within 180
days of the adoption date of this resolution.
March 22, 1984
CITY of MOUND
MOUND, MINNESOTA 55364
(612) 472-1155
TO: CITY COUNCIL
FROM: CITY MANAGER
Enclosed is the letter from Dave Carlson, the President of the Mound
Fireman's Relief Association, requesting an increase in the monthly
Fireman's Relief Pension payment.
Presently they are at $210 per month. They are requesting an increase
to $240.00 per month, effective July 1, 1984 and an increase to $250.00,
effective January 1, 1985.
The necessary funds either are or will be on hand to support these
increases as was spelled out in the Actuarial Study that was in the
packet a couple of weeks ago.
It is the Staff's recommendation that this be approved. I think they
also should be complimented on the very professional way they've
handled this. Quite different than in the past when they wanted
retroactive funding, etc.
JE:fc
enc.
Box 37, Mound, Minnesota 55364
March 15, !98h
Mr. John ham
City ~na~er
City of Mound
5341 Maywood Road
~ound, MN 5~364
Dear John,
Previously, a copy of an actuarial valuation for the Mound
Fire Denartmeut Relief Association pension fund was submitted to
you for review. %'he study was conducted by James Dordewick-
Consulting Actuary which determined costs for the current program
as well as eff&cts of various benefit increases.
Because of good returns on investmentS, increased city con-
tributions, and increased 2% state aid we have seen this Derision
fund ~row. The ~rowth has resulted in l~er costs to keep this
pension fund adequately funded and prevent the unfunded liability
from increasing. We also now have a situation where the pension
fund can afford to p~y a hi~her benefit with the current incoming
revenues.
In 198~ the City of Mound will be contributing $36,300.00'to
the Mound Fire Department Relief Association pension fund. In
addition, we expect to receive aoprox~mate]y $30,000.00 from 2%
state aid (b~sed on 1983 receiots). TherefoMe, in 198h the pen-
sion fund expects funding of $66,300.00. The chart on ps~e four
of the s. ctuar~.al report Lists the ~nnual contrib~tiou requirem=nts
for vardous monthly benefit levels. The current benefit is $2~0.00
per month which will require ~51613.00 to keep the pro,ram adequately
fuud~d. A Benefit increase to $2[~0.OO per ronth will require
$63,580.00 of funding.
Based on your recom~mendations the releif association board of
directors would like to prooose the following benefit increase pack-
a~e:
l) Effective June l, 198h the monthly benefits and all
correspomding portions of the plan (se~~ ~xhibit A-
page 5) be raised to $2~O.O0 ocr month
2) Effective January l, 198~ the monthly benefits and
sll corresponding portions of the plan he raised to
$2~0.00 Per month.
Ton indicated that you expected the City Council to r~ise the City's
contribution to t~e pension fund for ]985 to cover the additional
costs for a $2~0.00 per month benefit.
PAGE 2 March 15~ 198h
The board of directors of the Relief Association is willing
to discuss this proposal with you or the city council members and
answer questions or concerns. Otherwise, we would appreciate if
you would place this proposal on the docket for the Mound City
Council's consideration at their next regularly scheduled Meeting.
Please notify us of the date for this council m~etin~.
Please feel free to contact me with any questions concernio~
t~is matter.
Sincerely,
David J. Carlson, President
Mound Fire Departmant
Relief Association
Smiley/Glotter Associates
1021 LaSalle Avenue
Minneapolis, Minnesota 55403
612/332-1401
Architects
Engineers
Planners
Interior Designers
S.C. Smiley, F.A.I.A.
J.H. Glotter, A.I.A.
R.Y. Laiderman, A.I.A.
G.R. Nyberg, A.I.A.
March 19, 1984
Mr. Jori Elam
City of Mound
5341Maywood Road
Mound, Minnesota
55364
Dear Jon:
As a follow up to our phone discusslon yesterday, we would llke to
request a start of the survey and soil testing. Since our plans for
Town Square are moving forward very rapidly, this information is
most essential.
Would you please see if the City could get these services scheduled
for us. We will be happy to review with the surveyors and soils
investigating firms that information that we specifically need for
our design purposes and the City's as well.
Thank you for your personal assistance.
Cordially,
SMILEY GLOTTER ASSOCIATES
--"'%'c~. C. Smiley, FAIA, RAIC
SCS:eh
McCOMBS-KNUT$ON ASSOCIATES, INC,
CONSULTING ENGINEERS · LAND SURVEYORS · PLANNERS
January 11, 1984
Reply To:
12800 Industrial Park Boulevard
Plymouth, Minnesota 55441
(612) 559-3700
Mr. Jon Elam
City Manager
City of Mound
5341Maywood Road
Mound, MN 55364
Subject: Downtown Redevelopment Site
Dear Jon:
Your letter dated January 5, 1984 requesting a quotation
for doing survey work for the above subject property was
referred to me by John Cameron.
I have reviewed the Property Survey Data Request form
and site drawing you sent with your letter.
Based upon information requested for this survey and
the winter conditions that now exist, John Cameron and I
estimate the cost to be in the range of $4,500 to $5,500.
If the area between Lynwood Boulevard and the railroad right-
of-way is excepted from the survey site, we would estimate
the cost to be $4,000 to $5,~00.
If you should have any questions or need additional
information regarding the estimate, please contact either
John or myself.
Very truly yours,
McCOMBS-KNUTSON ASSOCIATES, INC.
Paul .6.. JohnSon, R.L.$.
PAJ:sj
GARY L. GABRIEL,
DEMARS -- GABRIEL
LAND SURVEYORS, INC.
3030 HARBOR LANE, SUITE 111
PLYMOUTH, MN 55441
PHONE
(612) 559~908
January 9, 1984
Mark Koegler
Van Doren Hazard Stalling
3030 Harbor Lane
Suite 104
Minneapolis, Mn. 55441
Dear Mark,
As you requested we have prepared an estimate for land surveying
services necessary to furnish a property survey in the proposed
downtown redevelopment site in Mound, Minnesota.
We have prepared the estimate based on the "Property Survey
Data Request''~ furnished by you. Our estimate for furnishing
the survey based on the information requested ~f~s $5500.00.
The survey would be completed within 30 working days after authorization
to proceed.
Very truly yours,
DEMARS-GA!)~I ELgLAND SURVEYORS
I iJ Ii' .
Gary/L?[Gabr~.el L.S.
INC.
TOPOGRAPHIC SURVEYS
SUBDIVISION DESIGN
BOUNDARY SURVEYS
CONSTRUCTION STAKING
501L E XI:H. ORBI30n
662 CROMWELL AVENUE
ST. PAUL, MN 55114
PHONE 612/645-6446
January 27, 1984
a sister corporation to TWIN OITY TESTING AND ENGINI:I::RINQ LABORATORY INC.
City of Mound
5341Maywood Road
Mound MN 55364
Attn: Mr Jon Elam
Gentlemen
Subj:
Geotechnical Engineering Proposal
Proposed Town Square Redevelopment
Mound, Minnesota
#120-11265
Soil Exploration Company is pleased to present this proposal for
conducting a preliminary geotechnical exploration and engineering
'program for your proposed Town Square redevelopment project in
Mound, Minnesota. This proposal is intended to define a work scope,
schedule and estimated costs for our services.
Project Information
We understand the proposed project would include buildings of one
and two stories of light construction such as a shopping center.
The exact location of the buildings is not known at this time.
There is a potential for basements under a portion of the complex
if soils and water table levels permit.
Purposes of StudS
The purpose of this study would be to provide preliminary subsurface
information to assist in planning of the project. Additional sub-
surface exploration will be performed prior to finalizing building
locations and design.
Scope of Services
In accordance with your proposal request, our work scope would
consist of the following:
OFFICERS:
CHARLES W. BRITZlUS
chairman of the board
NORMAN E. HENNING
president
ROBERT F. WlTTMAN
executive vice president
CLINTON R. EUE
secretary/treasurer
HOME OFFICE:
ST. PAUL, MN
OFFICES IN:
MANKATO, MN
ROCHESTER, MN
WAITE PARK, MN
AS A MUTUAL PROTECTION TO CLIENTS. THE PUBLIC AND OURSELVES, ALL REPORTS ARE SUBMITTED AS THE CONFIDENTIAL PROPERTY OF THE CLIENT
City of Mound
January 27, 1984
Page two
Put down four standard penetration borings (ASTM: D 1586) approxi-
mately at the locations you indicated on a sketch furnished to us,
and attached. You have indicated to us that the boring locations
are accessible with a normal two-wheel drive, truck-mounted drill
rig. If snow removal is required, you will make arrangements for
that work. The borings would each be to a depth of 20' below the
present ground surface.
Provide a data report including the results of the field and laboratory
tests as well as a general engineering review of the conditions with
opinions and preliminary recommendations for the following:
a. Foundation types, depths and allowable bearing capacity.
b. Settlement estimates.
c. Ground floor slab support.
Fees
Our fee for these services would be charged on a time and materials basis in
accordance with our current schedule of fees~h is attached. For the work
scope described above, the estimated cost i~
Conditions
The attached sheet entitled "GENERAL CONDITIONS OF GEOTECHNICAL AGREEMENT"
is part of this proposal.
Performance Schedule
Weather permitting, we will begin field work within five days after receiving
written authorization to proceed and will have our report completed within
one week after completion of the field work.
Acceptance
Please indicate your acceptance of this proposal by endorsing the enclosed
copy and returning it to us.
Soil Exploration Company appreciates the opportuni°ty of being considered for
this work and looks forward to providing service to you on your project. If
you have any questions or need additional information,, please contact us.
ACCEPTED:
Very truly yours
Donovan K Stormoe, P.E.
6eneral Manager
DKS/mlc
Client:
Authorized
Signature:
Typed Name:
DatE:
001--
IIIIIlilllllllllllllL
I,-
Z
Z ~ '
O' 0
SOIL EXPLORATION COMPANY
GENERAL CONDITIONS OF GEOTECHNICAL AGREEMENT
SECTION 1: PROJECT INFORMATION
1.1 The Client will make available to SEC all known information regarding ex-
isling and proposecl conditions of the site. The information will include, but
not be limited to, plot plans, topographic surveys, site plans, hydrographic
data, and previous soil data including borings, field or laboratory tests and
written reports.
1.2 Client will immediately transmit to SEC any new information which becomes
available to it or its subcontractors, so that recommended actions can be
res. tawed, The information will include any subsurface or latent physical con-
ditions at the site or in an existing structure differing materially from those
indicated in the contract documents, different conditions encountered dur-
ing construction or any changes in plans.
1.3 Client will provide a representative at the jobsite to supervise or coordinate
the job when required by SEC upon 24 hours notice.
1.4, SEC will not be liable for any incorrect advice, judgment or decision based
on any inaccurate information furnished by Client, and Client will indem-
nify SEC against liability arising out of or contributed to by the information.
SECTION 2: SITE LOCATION/ACCESS/PERMITS AND APPROVALS
2.1 The Client will indicate to SEC the property lines and be responsible for ac-
curacy of markers.
2.2 The C!ient will provide for right-of-entry of SEC personnel and equipment
necessary to complete the work.
2.3 SEC will assist the Client in.applying for and obtaining permits and approvals
normally required by law: however, ultimate responsibility for obtaining the
permits remains on the Client..
2.4 While SEC will take reasonable precautions to minimize any damage to pro-
perry, it is understood by the Client that in the normal course of the work
some damage may occur. The correction of any damage is the responsibili-
ty of the Client, or at SEC's option, the damage may be corrected by SEC
and billed at cost plus 15% to the Client.
SECTI(~)N 3: UTILITIES
3.1 The Client will be responsible for locating all subterranean structures or
utilities. In performing this work. SEC will take reasonable precautions to
avoid damage or injury to subterranean structures or utilities.
3.2 The Client will hold SEC harmless for any damages to subterranean struc-
tures which are not called to SEC's attention and correctly shown on the
plans furnished. Any damage may, at SEC's option, be repaired by SEC and
billed at cost plus 15% to Client.
SECTION 4: SAMPLES
4.1 SEC will retain representative samples of soil or rock for 30 days after sub-
mission of SEC report~ Upon request by Client, samples can be shipped,
Charges collect, to destination selected by Client; or SEC can store them for
an agreed storage charge.
SECTION 5: FEE PAYMENT
5.1 SEC will submit invoices to Client monthly, and a final invoice upon com-
pletion of services. Invoices will show charges based on current SEC Fee
Schedule or other agreed upon basis. A detailed separation of charges and
backup data will be provided at Client's request.
5.2 The Client will pay the balance stated on the invoice unless Client notifies
SEC in writing of the particular item that is alleged to be incorrect within
fifteen (15) days from the invoice date.
5.3 Payment is due upon receipt of invoice and is past due thirty (30) days from
invoice date. On past due accounts, Client will pay a finance charge of 1.5(%)
per month, or the maximum allowed by law. in the event of litigation, Client
will pay 5EC on all past due balances.
5.4 In the event Client fails to pay SEC within sixty (60) days following invoice
date, SEC may consider the default a total breach of this agreement and all
duties of SEC under this agreement terminated.
SECTION &: OWNERSHIP OF DOCUMENTS
6.1 All documents prepared by SEC as instruments of service will remain the
property of SEC.
6.2 Client agrees that all reports and other work furnished to the Client or his
agents, which are not paid for. will be returned upon demand and will not
be used by the Client for any purpose.
6.3 SEC will retain all pertinent records relating to services performed for a r~,riod
of (3) years after the reporl is sent: during that time, the records will be made
available to the Client during SEC's normal business hours.
SECTION 7: DISPUTES
7.1 If SEC instilutes suit against the Client to enforce any pan of this agreement,
then all litigation expenses or collection expenses, includin8 attorheys' fees,
will be paid to the prevailing party.
7.2 If the Client institutes a suit against SEC which is dismissed or for which ver-
dict is rendered for SEC, Client will pay SEC for all costs of defense, inciudin8
attorneys' fees. expert witness' fees, and court costs.
SECTION 8: STANDARD OF CARE
8.1 SEC will perform consistent with that level of care and skill ordinarily exer-
cised by members of the profession currently practicing under similar con-
ditions. No other warranty, express or implied, is made.
8.2 SEC will be responsible for its data, interpretations and recommendations.
but will not be responsible for interpretation by others.
SECTION 9: LIMITATION OF LIABILITY
9.1 SEC's liability to the Client and all contractors and subcontractors on the
project, for damages due to professional negligence, negligence or breach
of any other obligation to Client or others, will be limiled to an amount not
to exceed $50,000 or the SEC fee, whichever is greater. In the event Client
does not wish to limit SEC's liability, SEC will waive this limitation on writ-
ten notice from the Client received within 10 days after this agreement is
fully executed or before the work is commenced, whichever is earlier, and
Client will pay additional consideration equal to 10% of the total fee as a
-charge for a Waiver of Limitation on Liability. This charge is not a charge
for insurance but is an increase in consideralion for the greater risk involved
where work is performed with no limitation of liability.
9.2 Client will notify any contractor or subcontractor who performs work in con-
nection with any work done by SEC of the limitation of liability for design
defects, errors, omissions or professional negligence, and to require as a con-
dillon precedent to their performing their work, a like indemnity and limita-
tion of liability on their part as against SEC. In the event the Client fails to
obtain a like limitation and indemnity. Client agrees to indemnify SEC for
any liability to any third party.
9.3 The Client agrees that in accordance with generally accepted construction
practices, the construction contractor will be required to assume sole and
complete responsibility for job site conditions during the course of construc-
tion of the project, including safety of ali persons and property: that Ibis re-
quirement shall be made to apply continuously and not be limited to nor-
mal working hours, and the Client further agrees to defend, indemnify and
hold SEC harmless from any and all liability, real or alleged, in connection
with the performance of work on this project, except liability arising from
the sole negligence of SEC.
SECTION 10: INSURANCE
10.1 SEC will carry workers compensation insurance and public liability and pro-
perry damage insurance policies which SEC considers adequate. Certificates
of insurance will be provided to Client upon request. Within the limits and
conditions of the insurance, SEC agrees to indemnify Client against any Joss.
SEC will not be responsible for liability beyond the limits and conditions of
the insurance. SEC will not be responsible for any loss or liability arising from
negligence by Client or by other consultants employed by Client.
SECTION 11: TERMINATION
11.1 This Agreement may be terminated by either party upon seven (7) days wril-
ten oolite if there is substantial failure by the other pany to perform. 'Ter-
mination will not be effective if substantial failure is remedied before expira-
tion of the seven days. Upon termination, TCT will be paid for services, plus
reasonable termination expenses.
11.2 If the contract is terminated prior to completion of all reports contemplated
by this Agreement, or suspended for more than three months, TCT may com-
plete analyses and records as are necessary to complete its files and may
also complete a report on the ser¥ices performed. Termination or suspen-
sion expenses will include direct costs of completing analyses, records and
reports.
SECTION 12: ASSICNS
12.1 Neither party may assign duties or interest in this Agreement without the
written consent of the other party.
FEE SCHEDULE
Field ~er~ces
A. Drilling equipment and crew:
!. Rocar~ Drill (75 H.P. or over) with two-man crew. Ospable of 6 in. Io 10 in. fire auger
borings, 3'i in. I.D. bollo~' stem auger borings, s,~ndard penetration borings, rock cor-
ing aM special soil sampling.
-per g hour day
Light Rotary Drill (less than 7.5 H.P.) with two-man crew. Capable of 4 in. to 6 in. rite
auger borint:s. 3 '~ in. I.D. hollo,,,' stem auger borings, s~x~ard penetration borings, rock
co, ring and special soil sampling.
· .per 8 hour day
Non-Rotary Soil Machine with two-man crew. Capable of standard penetration test bor-
ings to depths of approxima-'ly 50 feet in soil. Ust:d where drilling location or access
is confined.
..per 8 hour day
4. Power Auger with one operator. Capable of 4 in. or 6 in. rite auger borings only. to
· depth of approximately 35 feet in soil.
-per 8 hour day
Eo
Fo
Vehicle charges: (in ~ldition to above rates)
I. Rental
· . i-~n truck or smaller -~:r day 22.00
b. l~rger than Iqon truck -per day 45.00
c. Truck-tra~or & lowboy -~cr day 90.00
d. All terrain vehicle--when
necessary for access '-per day 195.00
Travel for sites away from immediate vicinity of home laboratory:
Transportation lo
from
Job site services ~:ltor consultation:
i. Crewman -per hr 24.00
2. Technicians -per hr 28100
3. Senior Technicians ..per hr 32.00
4. Engineer and Geologist Assistants -per hr 40.00
Specialized field services: (s~e Appendix for description and rates)
I. In-Sim Testing:
&. Vane Shear
b. Static Cone Penewometer
c. P'ressurerneter
2. Geophysical Surveying:
m. Seismic
.t. Field Instrumentation and Monitoring:
,,. Inclinometer
2. MLle~ge:
m. Automobiles
b. 14on truck or ~naller
c. ].~rger than iqon truck
5. Engineers or Geologists
6. Senior Engineers or Geologists
7. Principal Engineers
g. Senior Consultants
d. Pile Analyzer (Case~le
Method)
e. Double Ring Inflhrometer
f. Bore Hole Permeability
b. Electrlczl Resistivity
b. Pcnumatic Trm"tsducers
Expenses:
!. Living expen.s~s when wo~ing away from immediate vicinity of borne bt)oratory
2. Bit wear (diamond or ca~idc bit we. ar. when coring is required)
3. Replacement of abandoned equipment is charged when it is considered more economical
to abandon sampling equipment and casing than to recover mt our regular daily rams
Miscellaneous job-incurred expenses not covered specifically by Obis fee schedule
Overtime (Saturday. Sunday or 14oliday) when necessary or authorized by client or client's ·gent
will be charged at regular time plus 20%.
Note No. I - Actual divkled by 080 (When actual cost exceods $500. spex:ial rates will be
consid, emd.)
Subject to Clumge Wilhout Notice
(REV. 1-83)
SOIL I XPLOREll IOI'I ,.,
368.00
-per mile 0.32
-per mile 0.50
-per mile 0.60
-per hr 45.00
-per hr 50.00
-per hr 55.00
-per hr 65.00
Actual -- 0.8
Actual Cost
Actual Cost
Note No. I
FEE SCHEDULE
H. ~ ,,nd l.~borMoo* Services
A. Consultation. ~lysis and report
I. T~hmc~ns ~
2. ~niot T~hn~ians
3. ~i~t or ~lo;i; A~is~nts
4. En;i~t~ or
~nior En~in=~ or ~logis;s
7. ~ninr Consul~ms
9. ~p~mfion for n~ ~;a] C~l;;ion
10. C~ A~mnccs (Min. 4 Hm) ~
~it~ns
B. C~r~al ~ices
J, T~ or Libra~
2. Rcpr~u~ion of A~,io~l R~n C~ics
~plicilor - Fiat ~
- ~ct 2~ Sh~u
b. C~ ~chi~
e. Microfilm
C. ~m~ T=s of ~il:
per hour 26.00
per hour 32.O0
per hour ~O.O~
per ho~r 45.00
Per ho~r 50.00
pet hour 55.00
per hour 65.00
Lump sum
depcodinF o~ complexly),
per hour 75.00
peT hour 100.00
per hr 16.00
min. cEnr8e 25.00
per sheet 0.25
per sheet 0.15
per sheet 0.35
per sheet 1.50
Moiuure coment and densi~,.':
a. Mercur)' immersion method 16.00
b. D~rea caliper mtasur;:ment method 19.00
c. In-tube me..asurcment method 29.00
d. Moisture content only
(AS'TM :D2216) '7.00
13.
14.
15.
16.
17.
UNIT
PRICE
8000 to 190 iX)
30.00 to 130.00
24.00
Hand P~n~rome~cr 4.00
Hand Torvanc Shear Test 8 ~
Unconfin~ C~p~ssi~ Test:
a. C~sivc ~il (A~M:D21~):
I. R~nin$ ~aimum n~ss M failure 2~.~
2. Rc~nin$ c~plcte ~ss-st~in ~c 29.~
b. R~k ~s (A~M:D2938) i~l~in~ ~m-
c. ~imng tensile ~n~ of ~k m~s ~.~ m 45.~
Di~'~ Shear Test: (per nonnd load)
a. (ASTM:D30~0) 50 00 ~o 160.00
b. Residal s~rtng~h 5500 to 135.00
c. Controlled stress (creep ot other ~,pe tesl) 60.00 ro 330.00
Trinxial Compression Test: Or'porting
slt~ss-s~rain curves) ~r ~fining
~u~)
a. U~l~l~mi~ (A~M:D28~)
b. C~li~mi~
d. ~ ~finin~ ~u~s
e. ~m~6on.~ck
55.130 to 100.00
7500 lo 1~O.00
90.00 to 185.00
50~ to
of above
50.00 to $5.00
40.00 m ! 10.fi)
';5.00 to 350.00
Anerberg Limits:
· Phsticit) Index (ASTM.~23 &
424! 35.00
b. Liquid L~mit ot Plastic Limit Onl) 23.00
¢. ShrmLagc Limil (ASTM.D4'~7) 28.00
3. L4r~ar ghrinJ~Lee (Bar Method'~ 33.00
4. MecCa,cai Amlysls of ~il~.
a. ~mu~h No.
~1) (ASTM.DI I~) 18.~
b. ~gh No. ~ or No. 270 s~vr
(A~M:~) 31
c. ~k Run
d. ~gh .~1~ b) hydro--er
[mvi~ ~)' ~ ~ ~) 49.~
e. ~s~m~n ~t 49,~
6. ~r~i~t~n of pH by ~ct 9.~
~. ~png ~,m of mil 29.~
[ ~lfate ~tent 23.~
9. ~e ~mcm
10. Re~fve ~nsity of ~i~less ~ils
{ASTM :D2~9) ~.~
{ASTM.~gg. AAS~O
Ne p~m6on, if ~s~.
12. ~bility T~in~:
n. Omnular ~ils-~ss ~ i0~ fi~s
{ASTM:D24~) includmf
~rali~ ~-~
b. All ~t ~ils-falhn~ ~d or ~s-
~m ~d:
18. Cm~solidallon Test~: (ASTM:D2435)
Sufficient loads to dettrn~m primar
cu~e-up Io 32 uf (s~if~ ~vi~
Ant~rg limits extra)
a. R~nin$ P~ ~rve ~ ti~
~tin~ Cv. Pc ~ Cc
b. R~nin~ P~ o~e only
a. Swell ~u~
2 I. C~mb
23. R-Value (~M:D2~) ~
~ R~st
c~sif~t~n
c. ~om~e of ~mples in humldi~
~trol~d ~m (Mini~m
~r ~ ~t M~h
245.00
195 O0
8500 to 16000
45.00 to I0000
18.00
45.00 to 150.00
45.00 to IOD.O0
55.00 Io 100.00
14.00
32 .IX)
15.00
per ~ 30.00
10.00
Where a price mnSe is shown for an iodh,'klunl test, the ch~$c depends on r~l ~ znd:oT sample size.
(REV. 1-83)
Subject to Change Without No~ice
. 4::31L eXl:q, olantlOn
E. APPENDIX (SPECIALIZED FIELD SERVICES)
1. la-Situ TestiK
in-sisu K-ming. as differemia~ed from I. aboralot) testing, is thc Icstmg of soil or
~ck in ils ratural environment. The les! equipment is btou~hl lO the fiekl, rather
than removing sm. all ~mples and transporting them lo the iahorato~. The ~tsts
are ctmducted b) engineers, geologists, or Ir·tried "chnicians. depending on me
q~cific test and project c'ond~tiom,.
a. Vane Shear {ASTM:D2573). The vane shear test is u~ed to determine shear
strength of cohesive ~'or organic soils al various depths in a drilled hole.
Torque is applied through a geared drive with proving ring readout. Charges
are based on the following daily rate for rental of special equipment plus ap-
plicable rates and expenses under thc regular fee schedule for drill rig and
operators, teal operator (engineer or techn~cianl, and da,, r~:luction in the
o~cc.
Rental of Equipmem-Pcr
b. Static Cone Penetrometer (ASTM:D34411. Thc ca·tlc cone is ur, cd lo pro-
vide · Conlinuous strength profile with depth. The cone is md~anced
hydraulicaJl) al a sb~n~rd ate of penetration with special adal~ions on a drill-
ing rig Charges are based on ~ following ~ail) ra~s for special equipment
plus applicable rates and expenKs under the regular fee schedule for drill
rig and o~,erator(s), field engin~r, if m:ctssa~, and clam reduction in th~
ofl'~ct.
Rental of Equipment-Per Day SIO0.O0
~reme~er. Thc pre~uremeict is us~ to del·rathe the deformation
modulus and strength charactcrislics of pracl~call} an> ~.'pc of soil and most
~ofi rocks. The lest is conducted with ~ expandable probe Iov, cred ~k~wn
· drilled hole Charges are ba~'d on thc folloving per teal rate fc~r rental of
~ecial equipment, plu.,, ap~cab~e rates and expert',, under regular fee
K'h~fluk' for drill rig and ul~:~etnrs. ~est oytrator lengin~r. Fok~gi~ or echni-
cianl. ~ data mducuon in the off, ct.
Re·al of Equip·em-Per Test $6000
Maxtmum Dail.~ Charge
do
Pile An~l)ztr (Cmse-G~ble M~thod). Thc C~Ic ~th~ is u~d ~o
~n,of p:k ~ ~r ~ffo~. ~ to p~q ~ ~:ng ~-
cie) of pilc~. ~c ~l)~is is EcomplJsh~ using a field co~tcr m wh~h
~ is fed ds~cd) from fore a~ accclc~tion t~n~u~n ~n~d on ~e
pile. ~ ~uip~nl is ~ral~ in ~c field by a ~n ~in~nn~ ~w.
C~rfcs a~ ~ on a ~il~ ~1c for ~nal of ~c~l ~ui~nl plus ~-
plicabk ~s a~ e~n~s u~t ~gubr f~ ~h~ulc fm ~o enumer-
ation. ~hiclc. ~6 tx~n~s.
Quomd on n Proje~ Basis
e. D,o~ble Rin~ lnllhromeCer (ASTM:D3385L Our ~ui~nt ~lu~s ~o
sizes of ~r~ne m~s foe amo~fic sipS·Jag s~ ~m~ ~su~$ of
~'atct ~ ~ d~e~incs ~fil~ation ~s imo ~c ~mu~
~n~ubrl) u~l in oval·ling ~) i~fafion was~ di~l
~uire~ J ~man ~c~. ~all) ~ cn~in~r ~d ~chn~ian. C~r~ art
M~ on ~ follo~ Jn~ ~r ~ met for ~n~l of s~cial ~ui~m plus
phcablc ~s ~ cx~s u~ct ~bt f~ K~ulc for ~
veh~le. ~ for ~m ~t~n in ~ o~.
Rental of Equipment-Per Test $4000
~ Ho~e Per'rm~biliL~. T~ bore hole i~rencabiliD I~-~ ~ ~,,,~bili-
~nt ~o ~kc ~su~nb usi~ ~h ~nl h~d ~d fallm~ ~ ~sU.
P~s~ ~stin$ using ~ckc~ b al~ ~ffo~. T~ rests a~ ~duc~ m
drilled ~)c ~ ~) ~quitc ~ cn~in~r in ~ field CMrg~ ~ ~
~ ~e follo~ ing ~r ~) ~n~l of ~c~l ~uip~nl plu~ appl~abk m~ ~
ex~n~s foe a drill fi~ ~ o~ramm. ~ o~rator. ~d ~ ~u~mn in
~c o~ct.
Rental of E. quipmeni-Per I:)a) $60.00
2. C, eophy~k~ Surveytn~
Goophysical surveying is thc ar1 of delineating the ptn).sicat characl:risl3c~ of ~c
mrth's ~bsurGee. The ~s.ulls l~ght are ur, a~ll)' more general m ~ ~n ,.ith
in-sim testing Thc work is performed by a geologist or te..~hnic~an defending on
· e complcxil) of the parlirular ~rvcy.
Seismic Sorv~'tni:. Seismic surveying invol..es measuring the vel~tly of
~ismic ~a~es ~r~;h wbsurfa~e ~t~. ~c~ ~urr~nl~ are u~ed lo
~e%i~.. C~rges are ~ on ~e following ~il~ rate foe ~n~l of s~%al
~ip~nl plus m~hcable ales m~ e%~n~s u~er ~ular f~ ~h~ule for
mst ~mlon ~mlogis~ ~m). vehicle. ~ da~ ~uclion in the off~ce.
Rental of Equipment-Per ~)a) $6000
b. Eieetrk~ Red. ivey Sorv .t~. Resi~fivi~' surveying involv~ ~fin~
· e el~tncml ~si~ivi~ of ~U a~ ~km T~K ~mm~n~ mm u~ Jo
~lin~te ~un~ries ~'~n ~tcr~l~ wi~ ~nt~slin~ clc~rical pro~nies
~ for ~sivi~' ~ el~t~ml sys~m g~ing ~ks. ~c ~e) is
~o~ge of a ~logist m ~hnican de~ing on ~mplexi~. C~rges
a~ ~ ~ ~ following ~ily ~nml offal ~nl ~us ~licable
n~ ~ ex~n~ u~er regular f~ ~ule for ~ ~mtor(s) ~ml~is~
Rental of F. quipmcm-Per D~)' $60.00
3. Field Inslrumentmtion and Monitoring
The tar~ always ~'sponds lo the forces impo~d b) c~si~ion or b) ~mre
~lf. T~ ~s~n~ ~n ~ ~vc~nt (unin) or chanfc in st~s ~ms ~
~)'~ical pm~nies. Ficld in~l~n~tmn ~ ~ni~ofing is dcsign~ lo ~a~ure
~K c~nge~, w~r ~). a~ c~t~ by ~n's ~nst~c~n or by t~ forces
of ~ture.
in,
i~clinome(er. The inclinornettr measures thc change in ye·seal alignment
of a casing (mhc) placed in a drilled ~lc. T~ c~nge can ~ ~a~rcd at
mn) ~lc~ ~p~ ~ ~p~s. ~ often as is ~ccs~. o~r ~ unhmiled I~
f~. L~ bag as ~ ~sing is ~ ~stroy~ M~sure~nt~ m~ ~dc by
~ m~i~r ~ ~chnie~ C~ges am ~d ~ ~e follo~ ing mn~l of s~cal
incli~t ~uip~m plu~ a~lJcahle rotes a~ ex~n~ u~er regular f~
~h~ule for ~m~ of ~sings. drill ng ~ ~ralom. engi~ or ~hni-
c~n m ~e ~in~s. wh~le. ~d ~a ~uct~n in ~e offs.
Rental of Equipment-Per C,,qng Reading 5,80 00
IVLu. imum Per Month
bo
Por~ Pr·murk, Karth Pr·sum, er .ScUll·men! Monltortnt b) P'ne~malic
Tr'n.-tsduc~r. C'Eanges in thc pore pres~re, soil pre~,sure or senlcment of thc
r~il can be dett'x'~ed b) special sensors placed on the surf·cc prior to placing
earth fills. Pon: pressure and senlcrnem tran~uctrs can also bc placed in
drill holes. Readings art taken as often u neCCss.~/~' over as long a period
ms required, provided thc insolled equipment is not destro)ed Rcadmg~ arc
lake· b) an engineer or technician. Chat~es art based on thc followini: dad)
rates for rental of s~eOal ·',·ding equipment plus applicable rate~ and ex-
peases under regular fee schedule for porch·se of installed sen~r~,, drill rig
and ol~'rators caf nece~sa~ }. engineer or technician to tale re·drag,, and data
f~ducuon in the ot'fi~,
Rental of Equip·em.Per Re·dig $]~,0 O0
Maximum Per Month S330.00
(R.EV. 1-83)
Subject to Change Without Notice
SOIL explanation
MINNESOTA: Minneapolis, Hibbing, St. Cloud, Rochester, St. Paul
NORTH DAKOTA: Williston
MONTANA: Billings
LBMHfl']
Services Since 1957.
J.S. BRAUN, P.E. G.D. KLUEMPKE, P.E.
P.H. ANDERSON DALE R. ALLEN, P.F
C.G. KRUSE, P.E. JAMES J. CRAIG,
D.R. HAUSLER, P.E. LOUIS P. MATIS. i
Reply To:
January 10, 1984
P.0. Box 35108
Mpls , MN 55435
(612i 941-5600
City of Mound
5341Maywood Road
Mound, MN 55364
Attn: Jon. Elam
RE:
PROPOSAL FOR SOIL BORINGS AND
FOU~DATION ENGINEERING REPORT
SERVICES
Town Square Site
Church Road & Commerce Blvd.
Mound, MN
Mr. Elam:
As requested by your letter of January 5, 1984, we are.pleased to
furnish this proposal for the taking of soil borings and prepara-
tion of a foundation engineering report for the above referenced
project.
DESCRIPTION OF PROJECT
We understand that the project consists of potential 1 to ~-story
buildings. The exact locations of these buildings are not known
at this time. You are therefore requesting 4 preliminary borings
to establish some foundation for finalizing the building loca-
tions.
SCOPE OF SERVICES
You indicated that 4 borings are desired to a depth of 20 feet
for the evaluation' of the soil conditions. The borings Will be
CONSULTING ENGINEERS / soILs AND MATERIALS
Affiliated Company for Chemical & Environmental Testing and Consulting -- Braun Environmental Laboratories, Inc.
City of Mound -2- January 10, 1984
taken in accordance with ASTM D1586 and D1587 procedures so that
"N" values will be recorded in the granular soils and 3-inch
Shelby tube samples may be taken in the representative cohesive
materials.
Laboratory tests will be conducted to provide additional data as
a basis for making engineering recommendations. Potential tests
include unconfined compression, moisture content, moisture-
density, and classification tests.
The preliminary engineering report furnished will give recommen-
dations regarding development of the site.
BASIS FOR PROPOSAL
We will furnish these services on an hourly or unit cost basis as
stated in the attached hourly or unit cost SCHEDULE OF CHARGES.
We have not seen the site, but from your description, have
assumed the boring areas are accessible to a truck-mounted drill
rig. The borings would thus be performed with equipment
described in sections 201a and 203. We estimate that the mobili-
zation, demobilization, and drilling will require approximately 6
hours, so the estimated cost of field services is $660.
The types of laboratory tests cannot be determined until samples
have actually been obtained. The laboratory tests will be con-
ducted in accordance with section 300. The estimated cost .for
those services is $1_~_50.
We estimate the cost of the engineering services, in accordance
with section 1OO, at $240.
Frozen soils do not significantly impede the. investigation.
However, snow removal, if necessary, would be billed in accor-
dance with item 203h.
The total projected cost of the field investigation, laboratory
tests and engineering report is then $1_~O50. This projected cost
will not be exceeded by more than 10% without additional authori-
zation.
GENERAL
Current scheduling will permit us to begin these services within
approximately 7 days of receipt of authorization. On the order
City of Mound -3- January 10, 1984
of 1 week would be required for the field investigation, and pre-
paration of the engineering report. If your project requires
faster scheduling, please do not hesitate to contact us.
Terms on payment for services are net 30 days with interest added
to unpaid balances, in accordance with the attached GENERAL.
CONDITIONS which are a part of this proposal.
We appreciate the opportunity to present this proposal. This
proposal is being presented in duplicate so that one copy may be
signed and returned as an authorization to proceed.
If there are questions on this proposal, please do not hesitate
to contact us at your earliest convenience.
NEH:bmb
Enclosures:
SCHEDULE OF CHARGES
GENERAL CONDITIONS
Very truly yours,
BRAUN ENGINEERING TESTING, INC.
Norman E. Hall
Business' Development
GC:SI
ACCEPTANCE OF PROPOSAL
Date
Client's Name
Authorized Signature
Title
The content of this report and supporting document5 are for the exclusive use of the addressee In the absence of our prior wrilten approval
we make no representation and assume no responsibility to any other parties regarding such content
I BR Ufl'
ENGINEERING
ENGINEERING
OLIS 6800 S. County Rd. 18, P.O. Box 35108, Mpls., MN 55435 Additional or affiliated offices in:
[] CENTRAL MINNESOTA 1520- 24th Ave. N., P.O. Box 189, St. Cloud, MN 56301 Hibbing and Duluth, Minnesota
[] SOUTHERN MINNESOTA 1704 - 3rd Ave. S.E., Rochester, MN 55901 Williston and Hazen, North Dakota
[] ST. PAUL 235 Roselawn Ave., St. Paul, MN 55117
SCHEDULE OF CHARGES
100
ENGINEERING CONSULTING SERVICES
Field and Other Services, per hour
01. Engineering Technician I
02. Level I NDT Technician
03. Eng. Tach. n or Level II NDT
04. Engineering Assistant
05. Level III NDT
06. Engineer or Geologist
07. Registered Professional Engineer
08. Senior Staff Engineer
09. Principal of Firm
Reg. Over Double
Time Time Time
$28.00 $34.00 $40.00
31.00 37.00 44.00
34,00 41.00 49.00
38.00 47.00 52.00
43.00
45.00
50.00
60.00
75.00
NOTE: Reduced weekly & monthly rates available for continuous service.
200 SITE EVALUATION SERVICES
01. Drill Rig and Personnel Charges'
a) CME 55 or 75 drill rig taking penetra'.ion test borings
(ASTM D1586-7) or power auger borin,gs, using solid
or hollow-stem augers or rotary drilling methods,
with crew chief and drill rig assistant.
b) CME 45C drill rig per above.
c) CME 45 power auger taking power auger borings
(ASTM D1452) for soil classification and water level
determinations only, with crew chief and drill rig
assistant. 60.O0/hr.
d) Two-man field crew on surveying, taking hand auger
probings or other field tests. 60.00/hr.
e) Extra crew man -- when special conditions require
to facilitate operations (in addition to hourly charges
in "a" through "d" above):
1) regular time basis 28.00/hr.
2) overtime basis 32.OD/hr.
f) Overtime addition to all 2-man crew operations for
work on Saturday as requested by client or in excess
of 8 hours per day on weekdays. 24.00/hr.
'Hourly rates apply for travel and when conducting
tests and are for regular time (8 hours or less on week-
days) and do not include truck or carrier rental or use,
supplies consumed in drilling or abandoned in test
holes (when more economical than recovering
supplies at normal hourly rates) or per diem expenses
on projects more than daily travel distance from
location where equipment is based.
02.Equipment Charges for Other Field Testing Services (in addition
to drilling equipment, when required, or field crew).
a) Thin Wall Sampling (ASTM D1587) hourly rates
plus sampling tube cost. $9.00/sample
b) Diamond core drilling (ASTM D2113) hourly rates
plus 1.15 times actual diamond bit wear. Cost + 15%
c) Dutch friction-cone soundings. 11.00/hr.
d) Vane shear test (ASTM 02573). 7.00/hr.
e) Screw-plate test. 7.00/hr.
f) Electrical resistivity testing. 10.00/hr.
g) Refraction Seismic surveying. (1)
h} Digitilt Inclinometer, (1)
i) Pore Pressure Indicator. (1)
j) Pressure Meter. $200.00/day
03. Truck Rental, Mileage and Other Expense Charges.
a) Auxiliary truck for transporting crew and supplies:
1) per day 35.00
2) per mile 0.45
b) Drill Rig Truck:
1) per day 7500
2) per mile · 0.55
c) Flotation Tired Drill Rig Carrier 27.O0/hr
d) Flextrac-Nodwell FN-160 Rubber Tracked Carrier
(10-foot wide unit) 32.00/hr.
e) Low-Boy Tractor/Trailer to haul 203c and 203d --
Metro area 585 per one-way trip inot to exceed
$135/day) Outside Metro area-- $1.00/mHe
(round trip basis) Stand by - $75/day
$85.00/hr.
75.O0/hr.
/1) Ouoled on an ~nd~wdual basis
300
400
f) Materials for specialized unrecoverable installations
such as piezometers, well-points, settlement plates,
etc. Rental of road signs, special insurance,
permits. Consumable supplies such as roller bits.
drilling fluid additives, etc.
g) Replacement of abandoned or ruined equipment
per 201.
h) Subcontracted specialized services such as snow
plowing, grading for access, towing, etc.
'i) Welder or shop person on fabricating, assembly, or
loading of specialized equipment
LABORATORY TESTS OF SOILS
Cost + 15%
Cost
Cost + 15%
$30.O0/hr.
Per Test
except as noted
a. Proctor -- modified or standard (ASTM D1557 or D698)
1. Method A $44.00
2. Methods B, C, or D 55.00
b. Mechanical Analysis (gradation) (ASTM D422) 36.50
1. Wash through #200 sieve only 17.00
C, Mechanical-Hydrometer Analysis (ASTM D422 & Dl140) 48.00
d. Moisture Content and Density (Mercury Immersion
Method) 20.00
e. Moisture Content 8.00
f. Atterberg Limits (ASTM D423 and D424) 37.50
g. Liquid Limit (ASTM D423) 25.00
h. Relative density of cohesionless soils (ASTM D2049) 80.00
i. Specific Gravity (ASTM D854) $27.00 to $45.00
j. Organic Content (ignition method) 23.00
k. Sample preparation (ASTM D421 or other applicable
method) 32.00
I. Unconfined Compression (ASTM D2166):
(1) Maximum stress at failure 25.00
(2) Complete stress-strain curve 28.00
m. Consolidation-primary consolidation curve up
to 32 tsf. Cost varies depending upon number
of loadings required for a specific soil (1)
n. Direct Shear (per normal pressui'e) $50.00 to $250.00
o. Triaxial Compression -- ASTM D2850
(per confining pressure) $50.00 to $210.OO
p. Hveem Stabilometer ("R" value test) $75.00 to $175.00
q California Bearing Ratio (1)
r. pH determination -- by meter 7.50
s. Permeability (does not include sample
preparation or Proctor if required) $90.00 to $250.00
t. Oxidation-Reduction potential, sulfide
determination, and resistivity for cathodic protection 30.00
u. Torvane Shear or pocket penetrometer .6.50
v. Shrinkage Limit (ASTM D427) 27.00
w. Extrusion of thinwall sample for visual examination --
NO tests conducted 8.50
x. Specialty testing (sulfate, etc.) -- hourly basis as in
"100" above
y. Sample pick-up -- hourly basis as in "100" plus mileage
CONSTRUCTION CONTROL TESTING & OBSERVATION
01. Earthwork (Excavation observations, compaction
control testing, special foundation installations)
a. Engineering consulting services as in "100"
above, as required.
b. Resident observations and testing services, including
soil compaction control testing, Proctor tests, earth-
work observations and/or other field testing of soil.
Hourly rate as shown in "100" above.
1. Nuclear moisture-density meter charge in
addition to hour rates in "100" above
c Field laboratory rental, if required
11/15/82
$10.50/hr.
(1)
M. CM. SM
d Intermittent tesling serv,ces by soils technician Per test
of relurnmg to laboratory for processing samples, except as noted
1. Cornpachon Test. Sand-Cone Method
ASTM Dt556. or Nuclear Method
ASTM D2922 (normal conditions) $16.00
2. Laboratory Proctor Test ~ Standard or
Modified (ASTM D6g8 or D1557):
t) Method A 44.00
2) Method B. C. or D 55.00
3. Relative density of cohesionless soils
(ASTM D2049) 80.00
4. Sample preparation, il required 32.00
e. Origination and Trip Charge (depending Varies with
on mileage from originating office) dislance
02. Concrete or masonry
a. Engineering Consulting Services as in
"100" above, if required.
b. Concrete Mix Design
1. Theoretical based on ACl 211 (aggregate test
costs not included) or verification ol mix
design 50.00/mix
2. L~boratory design mix and trial batch (does
not include aggregate tests or concrete
cylinder COmpression tests) (1)
C. Observation of Concrete production or placement
including batch planl inspections, slump, air
content and cylinder casting at project site.
hourly basis as in "100" above plus mileage.
d. Laboratory moist-curing and compression testing of ·
concrete cylinders delivered to laboratories.
I. Standard Curing ASTM C39 6.50
2. Accelerated curing and fasting ASTM D684 25.00
e. Pullout testing for strength of inplace concrete (I)
f. Special trip for c~/finder Pick-up. origination
and trip charge depending on mileage . Varies with .
. from originating laboratory distance
g. Curing and handling of "spare" untested cylinders 4.00
h. Sawing of. cores or concrete cylinders
with poorly cast ends
i. Concrete cylinder molds (includes labels
and data slips.
1. 6" x 12" cardboard
2. 6" x 12" tin
3. 3" x 6" cardboard
j. Compressive strength of mortar cube
k. Compressive strength of concrete blocks, including
physical measurements and moisture absorption
determinations.
I. Compressive strength of concrete block or
brick prisms
m. Concrete coring -- portable core'drill with
diamond bits at 2 to 12-inch diameter. 2-man
crew. and generator. Plus mileage, truck rental
and bit wear.
1.Bit wear. per inch of diameter per inch
of core length
n.Compressive strength of concrete cores
including physical measurements
o.Physical test of Portland Cement .
(ASTM C150)
p. Non-destructive on-sire lesling of inplace
concrete. Hourly basis as in "100" above plus
material costs or equipment charge as follows.
1. Schmidt Hammer -- equipment included
in hourly charge
2. Windsor Probe Tests. material costs
Ultrasonics
4. Maturity Method
qr. Computer analysis of concrete cylinder strengths
r. Specialty testing of concrete or masonry units ~
hourly basis as in "100" above.
03. Bituminous
a. Engineering Consulting Services as in "100"
above, if required.
b.Mix Design -- Marshall Method (aggregate
test costs not included)
c.'Extraction and gradation of hot mix
(ASTM 02172)
1~ Extraction only on pavement cores
d. Marshall stability and flow lasts on laboratory
compacted specimens (per set ct 3)
e. Marshall density determination Ol hot mix sample
ASTM DI55g
t .50 blows
2 75 blows
B~tum~nous Coring -- see 402M and 402L
25.00/cylinder
0.85/each
1.25/each
0.75/each
6.00
42.00
42.00
60.O0/hr.
1.00/in./in.
10.00
(1)
10.O0/probe
(I)
(1)
(1)
55.00
40.00
30.00
38 O0
43.00
60 O0
5OO
601
g, Th,ckness and Oenslty of pavement cores 16.(~0
1. Density only 13.50
h Voids analysis of compacted mix (in addition to .
"b" and "d") 12.00/mix-
i Nuclear density Of pavement (does not include trip
charge).-- normal conditions (ASTM D2950) 15.00
j. MoishJre content Of bituminous hOt mix 20.50
k. Observation ol bituminous production or
placement inCluding inspection at batch plant
and job site checking batch weights, moisture
and temperature. Hourly basis as in "100" above.
I. Sampling or sample pick-up -- hourly basis as in
· '100" plus mileage
04. Roofing Components
a. Observations of produclion and placement on job
site -- hourly rate as in "100" above, minimum
2 hours at project plus mileage.
b. Laboratory analysis ol built-up roof sample.
including number Of piles, top and bottom coat
bitumen application interply bitumen and lapping
felts and voids analysis (4" x 36" specimen) 65.00
t. With glaze 75.00
05. Structural Steel
a. Random testing of bolt tension, special
laboratory setupS, etc. (hourly per "100")
b. Field observation of welds and shear studs ~
hourly basis as in "100" above
c. Procedure review, procedure qualification, welder
qualification (hourly per "100")
d. Magnetic Particle and Penefranl Testing. Ultrasonic
and Radiographic Testing. Hourly basis plus
materials {film. penetrant, couplant, etc.) mileage
and per diem expenses as required (1)
e. Tension testing ol relnlorcing bars or machined
specimen including stress-strain CUrVe (1 }
-. f. ' Preparation ol mechanical specimens Cost + 15%
g. Bend Testing of welding coupons (1)
h. Hardness Testing (1)
06. Aggregate Testing for concrete, bituminous.
roofing, etc.
a. Sieve Analysis (ASTM C136) 25.00
b. Analysis of Materials finer than ~200 sieve
{ASTM C117) 17.00
c. Organic Impurities (AS~'M C40) :16.00
d. Soft Particles {ASTM C851) 27.00
e. Lightweight Particles (ASTM C.123) . 30.00
f. Clay Lumps (ASTM C142) 16.00
g. Soundness (ASTM C88) -- 5 cycles 100.00
h. Abrasion (ASTM C131) (1)
i. Dry Rodded Density 16.00
j... Specific Gravity and Absorption Analysis
(ASTM C127 & ASTM C128) 38.00
k.Sampling or sample pick-up -- hourly basis
as in "100" above plus mileage.
07. Other Testing Services
a. Pile driving observations or Icad testing, observation
of caisson installation, hourly basis as in
"100" above plus mileage).
1. Case-Goble Method of Analysis (i)
b. Vibration or sound level investiga¥ion -- hourly
basis as in "100" above, plus mileage and
equipment rental (1)
c. Subcontracted services such as equipment
rental, special insurance, permits, etc. Cost .~ 15%
d. Resale or rental of test equipment (1)
EXPENSES
01: Ve[ticle charge and mileage applying to Section 100
and other sections when not included, in hourly rates
a. Per day 15.00
b. Per mile 0.32
02. Per diem expenses when working away from head-
quarters or branch locations, applies to Sections
100, 200 & 400 Cost '* 15%
03, Long distance telephone, shipping
charges and miscellaneous expenses Cost * 15%
CLERICAL SERVICES
01. Secretarial services, per hour 17,50
02. Report copies (3 copies furnished with initial
distribution of report) ~ minimum charge tOt
additional copies alter initial report issued 25.00
a. Library retrieval for additional copies after
initial distribution ol report.
(minimum charge) 15.00
b Report feproduclion of extra cop~es 0.25/per page
c Postage Cost. 15%
GENERAL CONDITIONS
CONSTRUCTION OBSERVATION AND TESTING SERVICES
(I) Scope of Work ,.~.
[Iraun Engineering Testing, Inc. (hereinafter called BRAUN) shall peneorm
the services defined in this contract and shall invoice the Client for those
services at the rates shown on the attached SCHEDULE OF CHARGES.
Any estimate of cost to the Client as stated in this contract shall not be
considered as a firm figure, but only an estimate, unless otherwise specifi-
cally stated in this contract. BRAUN will provide additional services under
this contract with charges for those additional services at the stated rates.
BRAUN will provide observation and testing services either on a full-time
or on-call basis, as agreed upon between BRAUN and the Client. BRAUN
will attempt to make observations and tests representative of the work
executed by the contractor but will not observe or test each and every
increment of the work. Tests and observations will be conducted using
standard test procedures (where applicable).
{I1} Responsibilities
BRAUN's efforts will be directed toward assisting the Client in determining
that the earthwork and other materials to be tested conform to project
specifications.
· BRAUN will not be responsible for the contractor's failure to perform the
work in accordance with the contract documents and BRAUN's presence
on the site shall in no way relieve the contractor of his responsibilities.
BRA UN will not be responsible for superintending, supervising or directing
the work of the contractor, or for job or site safety, those being the whole
,responsibility of others.
BRAUN will not be responsible' for construction staking or surveying,
unless those functions are specifically included in the accompanying des-
cription of services. BRAUN will reference results of tests and observations
to control lines and elevations set as part of surveying and/or construction
staking by others.
On the basis of on-site observations and tests, BRAUN field personnel,
under the supervision ora qualified design professional, will orally inform
the Client or his representative of the results of tesls and observations.
Follow-up written reports will give professional opinions regarding con-
formance of the contractor's work to project specifications.
(lid Reports
BRAUN will furnish a copy of each report to the Client, the owner,
architect and government officials in accordance with pre-construction
instructions and agreements.
AIl reports, boring logs, field data, field notes, laboratory test data, calcula-
tions, estimates, and other documents prepared by BRAUN, as instruments
of service, shall remain the property of BRAUN.
Client agrees that all reports and other work furnished to the Client or his
agents which are not paid for, will be returned upon demand and will not bc
used by the Client for any purpose whatsoever.
BRAUN wiql retain all pertinent records relating to the services performed
for a period of five years following submission of the report, during which
period the records will be made available to the Client at all reasonable
times.
(IV) Invoices
Invoices will be submitted monthly. 9ayment is due upon receipt of invoice.
Interest will be added beginning 30 days after the date of the invoice at the
rate of 1V2% per month, but not to exceed the maximum rate by law. For
extended projects, the billing rates as described in this contract may be
increased on each anniversary of the date of this contract at an annual rate
not to exceed 10%.
{V) Insurance
BRAUN is protected by Workers' Compensation Insurance (and/or
employer's liability insurance) and by public liability insurance for bodily
injury and property damage and will furnish certificates of insurance upon
request. If the Client requests increased insurance coverage, BRAUN will
take out additional insurance, if obtaintable, at the Client's expense in
accordance with item 203f, but shall have no liability beyond the limits and
conditions of the insurance coverage.
(VI) Limitation of Liability
The Client recognizes thc inherent risks connected with construction and
the potential for variation in subsurface conditions.
In performing its professional services, BRAUN will usc not less than that
degree of care and skill ordinarily exercised, under similar circumstances,
by reputable members of its profession practicing in the same or similar
locality. No warranty, express or implied, is made or intended by the
proposal for consulting services or by furnishing oral or written reports of
the findings made, and this statement may not be modified e_xcept in writing
by authorized signature.
In the event that BRAUN is held liable for damage due to its negligence or
breach of any other obligation to Client or others, such liability is limited to
an amount not to exceed $50,000 or the fee, whichever is greater. In the
event that Client does not wish to limit BRAUN's liability, BRAUN agrees
to waive this limitation upon written notice from the Client received within
five (5) days after the date this agreement is fully executed, and Client agrees
to pay an additional consideration equivalent to ten percent (10%) of the
total fee, said consideration to be called "Waiver of Limitation of Liability
Charge." This charge will in no way be construed as being a charge for
insurance of any type but will be increased consideration for the greater risk
involved in performing work for which there is no limitation of liability.
Further, Client agrees to notify any contractor or subcontractor who may
perform work in connection with any design, report or study prepared by
BRAUN of such limitation of liability for design defects, errors, omissions
or negligence, and to require as a condition precedent to it performing its
work, a like limitation and indemnity on its part as against BRAUN. In the
event the Client fails to obtain a like limitation and indemnity, Client agrees
to indemnify BRAUN for any excess liability to any third party.
Under no circumstances shall BRAUN be liable for extra costs or other
consequences due to changed conditions or for costs related to the failure of
others to install work in accordance with the plans and specifications.
BRaun
ENGINEERING TESTING
GC:CT
10/81
CITY OF MOUND
APPLICATION FOR BINGO PER,,lIT
(If an organization, give organization name)
Address
Bingo Manager (Name)
Address
Phone No.'
Address of where Bingo will be played /:'/~-'~3 /'//~-
5' Dates and Hours Bingo will be played
(Attach separate sheet if more room necessary)·
6. .Is Licen'se Fee' a~tached? Yes N~ ~. Amount
7. Fidelity Bond:
(a) Amount
(b). ·'Name of Bonding Company
* (Minimum $10,000.)
(c)
Expirati:on Date of Bond
*NOte:
Praternal.;'relig.ious.i veteran an~ other n~n-pr~fit
organizat'ion's may r~'quest the Bond t6 be waived.
Please. indicate below if you are making such a request'~
Sic3-~a~[ur~ of pearson making applicatiu,~
BILLS MARCH 27, 1984
Air Comm
Acro-MN
Holly Bostrom
Blue Cross/Blue Shield
Janet Bertrand
Continental Tele
Fran Clark
Jon Elam
Feed-Rite Controls ~
First Bank Mpls
Eugene Hickok & Assoc
Illies& Sons
Lake Mtka Conserv. Distr
MacQueen Equip
M¢Combs Knutson
Minnegasco
Mound Locksmith
Mound Medical Clinic
Mound Super Valu
MN Dept Public Safety
Minn City Mgmt Assoc
MN Recreation & Park
Mtka Vinyl Repair
Mpls Oxygen Co N.S.P.
NW Bell Tele
No Star Waterworks
Popham Haik
PDQ Food Stores
Road Machinery & Suppl
Nels Schernau
Don Streicher Guns
S.O.S. Printing
Mike Sullivan Painting
Smoke-Eater
State of MN Documents
Sun Electric Corp
Thrifty Snyder Drug
Water Products
Winner Industries
Xerox, Inc.
Air Cond. & Refrig
Fran Clark
Bill Clark Oil
Griggs Beer
Griggs, Cooper & Co.
Henn Co. Recorder
Hachiyo Elec
Johnson Bros.
135.00
50.39
150.00
137.O1
67.50
1,120.98
25.17
15.06
122.29
4.OO
3,127.00
698.75
2,116.25
348.56
3,972.75
222.59
16.50
116.50
49.32
4O.OO
25.OO
85.OO
15.55
21.o0
5,111.08
270.05
23.29
1,911.80
1,414.72
455.64
27.72
56.75
444.7O
114.00
155.OO
15.50
628.42
17.98
149.60
2.O5
944'09
6.OO
149.OO
550.14
7O5.25
3,429.97
5.OO
!5.O0
3,993.89
Brad Landsman
LaBelles
Merrill Lynch Realty'
MN Dept Transp
Munici-pals
Mound Explorer Post 776
NCGA
20.
300.
1,9o0.
2.
175.
1,637.
5.
41
5O
OO
00
Orono Police Dept
Ed Phillips
Quality Wine
Register of Titles
Unitog Rentals
35.28
2,615.46
2,503.81
60.50
350.26
TOTAL BILLS
42,884.30
MINNEHAHA CREEK
WATERSHED DISTRICT
P.O. Box 387, Wayzata, Minnesota 55391
BOARD OF MANAGERS:
David H. Cochran, Pres. · Albert L. Lehman · John E. Thomas · Michael R. Carroll · Camille O. Andre
March 20, 1984
WATERSHED BOUNDARY
LAKE MINNETONKI~
M t~E$OTA f~VER
Mr. Chris Bollis, Park Director
City of ~Mound
5341Maywood Road
Mound, Minnesota 55364
Re: 1984 Water Maintenance and Repair Fund
Dear Mr. Bollis:
At the regularly scheduled March 15, 1984 me~ting of the Board of Managers,
the City of Mound request for funding of five separate projects was
considered. An allocation was approved from the 1984 Water Maintenance and
Repair Fund to be applicable to the shoreline erosion repair project along the
Devon Commons on Spring Park Bay. Funding of the remaining four projects in
the City of Mound was not approved.
The approved allocation is equal to 40 percent of the actual construction cost
for the shoreline erosion repair work except that the allocation shall not
exceed $3,000. Upon completion of the work, please forward documentation of
construction costs along with your request for payment.
As a reminder, the project along Devon Commons should be constructed in
accordance with MCWD Permit No. 84-19.
Should you have any questions, please contact me at 473-4224.
Very truly yours,
EUGENE A. HICKOK AND ASSOCIATES
Engineers for the District
Michael A. Panzer, P.E.
bt
CC:
Board
G. Macomber
S. Stewart
March 23, 1984
CITY of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
TO:
FROM:
CITY COUNCIL
CITY MANAGER
I think we need to institute a Real Estate Research Fee to cover the
cost of answering questions typical of that which is on the attached
letter.
What we have found is that real estate agents ask the same questions
time after time on the same property. In addition, since most agents
are acting for potential buyers, the information we~o give ends up
in most cases not being used.
I would suggest an intial fee of $10.O0. This will force agents to do
their own research and perhaps be a little less casual about their calls
and requests.
This policy would not apply to any residents or city property owners.
JE:fc
enc.
Burnet
WEST SHORE OFFICE
4000 SHORELINE DRIVE
SPRING PARK, MN 55384
(612) 476-0400
March 21, 1984
City Manager
John Elam
5341Maywood Road
Mound, ~n, 55364
Dear Mr. Elam:
Please send me what information you cmn find regarding Lots 4 & 5, Block 2,
Abraham Lincoln Addition. I have enclosed a self-addressed envelope for
your convenience.
Primarily, the information I need is: 1) closest proximity.to the property
of city water and sewer, for the most feasible connection, 2) Whether the
storm sewer easement is a possible route, 3) if gas is available to the
property, and 4) the possibl~: zoning'~or this particular property.
Thank you very much for your time.
Sincerely,
Christopher K
Merrill Lynch Realty/Burnet
CR/lg
Enclosure
A SUBSIDIARY OF
MERRILL LYNCH REALTY ASSOCIATES
WESTONKA CHAMBER OF COM~RCE
GOVERNMENTAL AFFAIRS COMMITTEE
The Westonka Chamber of Commerce invites you to participate in a panel
discussion concerning the proposed re-construction of Highway 15.
This has been a "hot" issue for several years and the iocal newspapers
have written several articles. I think a first hand report would be very
informative.
The panel discussion would take place at our General Membership meeting on
Wednesday, May 16. This will be an 11:30 luncheon meeting at the Minnetonka
Mist, lower level.
We usually have 75-85 people at these meetings and I am sure that this
subject will draw at least that many people.
I would appreciate hearing your. thoughts on the subject, please call me to
arrange the details. My office number is 559-0940.
Very truly yours,
Daniel F. Regan
cc:
Jerry Rockvam
Mary C. Butler
Robert Polston
DANIEL F. P, EGAN
CERTI~ED PUBI~C ACCOUNTANT
polis Lane
Suite 110
Minneapolis, MN 55441
Telephone
(612) 559-0940
MINUTES OF THE
MOUND ADVISORY PLANNING COMMISSION MINUTES
February 27, 1984
Present were: Chairman Frank Weila~d; Commissioners Robert Byrnes, Liz Jensen,
'William Meyer, Geoff Michael and Thomas Reese; Council ~epresentative Pinky Charon;
City Manager Jon Elam; City Planner Mark Koegler; Building Official Jan Bertrand;
Kirk Corson, Planner and Secretary Marjorie Stutsman. Commissioners George Kinser
and Michael Vargo were absent.
MINUTES
The minutes of the Planning Commission meeting of February 13, 1~84 were presented
for consideration. Byrnes asked that on Page 4, the reason for his nay vote be
changed to read, "doesn't want public hearing to be done twice". Reese moved and
'Byrnes seconded a motion to.approve the minutes as revised of {he February 13th,
1984 Planning.Commission meeting. The vote was unanimously in favor.
The. Chairman welcomed and introduced the new member, William Meyer.
SIGN CODE DISCUSSION'
The City ·Planner,. Mark Koegler, briefly reviewed where we~are today on the sign
cod~. The Sign Committee (a sub-committee of the Planning Commission.was basically
the group responsible for Coming wp with the draft of'the slgn'ordinance. Last
month, the Planning Commission started going.t~rough'the process of reviewing the
draft and trying to come up with a collective .agreement; the draft would ultimately '
go on to.the bus|ness community and eventually go-to the City'Council for.recommenda-
tions for ano~dinance and subsequently go to public hearing.
In the previous review, the Planning Commission~went".through the first three sections
of the ordi'nance draft and the only' note of modification the Planner had, was on
Page 3 in Section 3.O5(1) "exempt from pe'rmi'ts and not exceed more'than 25~ of area"..
The Chairman had'noted in Section 3.O4'to'add "and a record kept",:and in Section
3.08 change to read ..."within three ~nths after notification of this ordinance".
The Planner stated there are two. major, areas Of signs'not adequately covered in the
draft and need further attention - off premises advertising sign (billboard type, etc.)
and Variable electronic sign. '.
The Planner had taken slides of signs, around town to give the Commission an overview
of signage in general and as he went through them, he highlighted points on how the
ordinance fits with the si.gnage that you see. He noted that the roof signs shown in
the slides do'not meet the draft as roof signs are not permitted in,ny district.
· Signs are to be designed as an integral part of building and not stuck.on·top. The
sandwich portable signs'are not permitted. Window signs in Clothing Store, Netka's ..
and Snyder's were definitely in excess of the allowable 25%. The Bank sign is an
example of.t'ime and temperature type of approach. Minnesota Federal doesn't conform
because it has wall signs on each of 4 sides of the building; ordinance al'lows one
sign per street frontage. Ben Franklin and Body Shop - ordinance doesn't allow sig~s
painted on bui.lding.' Locksmith's sign blinks and he thinks it sticks out over the
sidewalk more than 18 inches. House of Moy has what appears to be a roof sign.. The
Body Shop has two types of wall signs - new ordinance does or will have language that
contribute a little bit more attractive signs. Hole in One - has roof sign (not per-
missible); in building with a couple of. businesses, encourage to have signage together
and have one sign board. Wall signs or free standing sign per street frontage allow~
Trading Pos't sign is permissible because it doesn't extend above top of roof line.
Tulberg's - this is considered wall sign; size problem; think this one is in excess
of the 10% of area. On Hardee's, you may want to consider a certain amount of
Planning Co~mission Minutes
February 27, 1984 - Page 2
flexibility - ordinance allows either wall sign or free standing per street frontage',
but not both. Surfside - banner - can have 4 times a'year; exemPt from fees..0rdl- [.i'.
~nce doesn't cover flags; flags should be addressed. 'Gas Station.- either free ~
lng sign or wall plus signs ~ha~ are integral part of pump (other si'gns are not
permissible). PDQ and'Pizza. Factory have free standing slgn'plus wall sign; but ....
signage not excessive. Anthony's free standing sign is too large.. Bickm~n's building -
ordinance does permit for sale/lease sign up to 32 square feet on commercial; the
for sale sign tacked on the bottom of sign doesn't meet the ordinance. Dr..Segner~s
off premise advertising sign -'have to consider this type of sign. Also, there is
nothing in ordinance on bench advertising - this should be considered. Seasonal signs
are allowed only in the commercial area;'2 months per y~ar and allowed only as part
of overall signage.
"The Planner stated that he had tried to pick a few examples to begin with to crystalize
what this ordinance actually says; if anything, you've pKobably gotten the idea this
is pretty 'restrictive and we just want to makelsure you're aware of.all that as we go
~lhrough so.'you can discuss areas such'as the'free standing vs..the wa~l sign, as you
· may have some different thoughts on that.
The discussion on the-ordinance continued. Reese'brought up. that we were going to
define windOWlsigns in Section 4 - make it Item
nonconforming and illegal'signs and pr~s and cons 6f' making signage conform to a
new'ordinance.
The City Manager stated that the challenge above al)' other is how to re'ch the. point
that you want to have some kind of organized way for signs over a period of time so
:hat businesses are.not harmed along the way or feel they've been harmed.
The Chairman thought signs would be grandfathered in, but when they needed.repair or
replacing, they'd have to conform. The Planner thought this whole.sthing comes down
to: "What do you want to.do with signage in Mound? There's got to be a betterlway!
How do you go abou~ defining a better w~y? And do.you go about' making everything
conforming? And how many waves do'you want to make?"
The Planner continued with going over each Section with comments starting with 5.01.
Section 5.02 - extremely restrictive.; 5.04 - can be distracting; 5.05 discussed that
over 18 inches could block vision - basically trying to reserve a corridor through
the downtown adea. The Chairman questioned if special liability coverage needed for
overhanging sign. The City Manager felt the business' liability would cover signs.
Section 5.06 relates to.si, gns like Ben Franklin and the Body Shop - painted on the-.
wall~ 5.07 basically'a standard safety'clause (Section 23.714.- clear space at inter-
section); 5.08 - ~his is safety clause, wall sign can't~block portion of door. Dis-
cussed Section 5.09 Temporary Signs.. 5.0~(2)(e) Reese felt that this is about the
· time they'd ~ant twice the signs out; Byrnes recommended '~hen 90% complete".
5.O9(2)(f) Reese recommended 100 feet rather than~the 200 feet. 5.09(4) This should
'be for special events such as grand openings, tire specials, rather than every day"
advertising such as Sunday Brunch - is limited to 4 occasions per year. The Planner
thought the way this ordinance is written, fl~gs at Surfside would be considered
banners.
Council Representative Charon asked how lake side is considered? Not addressed and
should be. ·
Section 5.09(6)(e) & (fi were discussed at length and it was decided that garage
Planning Commission Minutes
February 2~, 1984 - .Page 3
sales signs should be limited to 5 occasions of 5 days each and under (fl Christmas
should be omitted. The boutiques, craft sales, etc. shall be limited to the 5 occa-
'sions of 5 days each.
5.09(7) After discussion of seasonal signs, it was decided to pull.out "not in addi-
tion to" in the sixth line of this section.
5.14 Discussed that window signs should be handled with definition of window.
It was agreed to stop at Section 6 and continue on at the next discussion meeting.
The Planner asked the Commission to'think about some of the comments and start
'thinking about the district regulations - free standing vs wall signs and what would
· be trade offs and Hardee's situation.
COMPREHENSIVE PLAN DISCUSSION
Planner Kirk Corson distributed a Comprehensi've Guide Plan Outline. He stated~that
he has been working on a'comprehensive plan for about a month now and has been doing
research with Metro Council and a number of different cities. He then went through
his outline briefly to explain where he's going and what he's trying to accomplish.
The Comprehens!ve Plan was developed because of the Land Planning Act of 1976 and
Corson is'updating the plan.
Reese questioned the purpose and Corson stated basically to know what your policies
are on each set Of goals for~each area and to have policies for each goal.. Plan
outline was discussed briefly and why police and fire were left out of plan.
the neXt meeting, there will be an update of the work done on the Comprehensive
Pian.' ......
ADJOURNMENT
Weiland moved and Michael .seconded a motion to adjourn.
adjourned at 9:30 P.M.
All were in favor, so meeting
Frank Weiland, Chairman
Attest:
March 12, 1984
TO:
FROM:
SUBJECT:
Jon Elam
Greg Skinner
Progress Report on Water Meters & Outside Readers
Figures ~as of March 12, 1984.
Total number of accounts
Total number of OR's installed
Total number of OR's left to install
3,O10
2,751
259
Total percent of accounts that are completed is 91%.
As of March 12, 1984 we have 30 accounts that are inoperable.
This computes to a 1% failure rate.
3,O10
3O
2,98O = 1%
In January and February we sent out meter cards for each account. We
asked the homeowner to read the inside water meter and mail or call in
the reading. This was done so we could compare the inside reading to
the outside reading.
We asked the homeowner this for one reason, if there was a difference
between the two we would be able to fix the problem within a couple of
weeks, thus eliminate high bills due to early detection of faulty
equipment.
We have had fairly good response from the homeowners. District #3
received cards in January with a 60% return. District #1 received cards
in February with a 65% return. This program will be conducted once
each year.
In closing I would like to thank the City Council and the City Manager
for their patients and support thru this water meter and outside reader
program. Also a very special thanks to my crew, Joyce, Sharon, and Lois
for their determination and drive to make this program a success.
Respectfully,
Greg Skinner
Water & Sewer Supt.
American 'Legion Post 398
DATE Feb. 29~ .198A
GAMBLING REPORT
CURRENT MONTH
~281o. oo
YEAR TO DATE
f?'85.oo
GROSS:
EXPENSES:
S~,] ~s tsx
Suppl i e s
237.
PAYOUT AS PRIZES:
PROFIT:
DISTRIBUTION OF PROFITS:
A.F.S.
CubScouts
Memorl~ls
1700.00
~622.4A
3200.00
'715,56 1662, ~6
~350.00
60.00
100. O0
20. O0
25'. O0
~555.o0 ~920.00
Checking Account
~3072.19
WESTONKA SENIOR
CITIZENS INC.
SPONSORED BY SUBURBAN COMMUNITY SERVICE · AUNITED WAYAGENCY · BOX 42 MOUND, MINNESOTA 55364
Jon Elam
City Manager
City of Mound
5341Maywood Rd.
Mound, Minnesota
55364
March 19, 1984
Dear Mr. Elam:
The Westonka Senior Citizens wish to thank you for your
support of their recent application for a Tit~ III grant.
We feel certain that with the cooperation and support of
the community such as you have demonstrated, we will
receive more favorable consideration for our application.
Thank you for your efforts in our behalf.
Sincerely,
Dorothy 0'Brien, Secretary
Westonka Senior Citizens, Inc.
300 Metro Square Bid[[., St. Paul, MN $$101
General Office Telephone (612) 291-6359
REVIEW"
53qi M~YWDDD B_VD
A Metropolitan Council Bulletin for Community Leaders MOUND MN 5536
For more information on items/n this pub//cot/on, ca//the ......................
said the city should ensure that 20 percent of the units are
reserved for tenants with Iow ar~d,rnoderate in.co,me"~'for at
least 10 years. ~ ~ q ~,;,;,'~;~ . /
Development Grants--In a review reques~'~'~l by the
Minnesota Department of Energy and Economic Development,
the Council said eight Metropolitan Area applications for
federally funded Small Cities Development Grants totalling
$4.5 million are consistent with local and regional plans. The
applicants seek funding for a variety of urban improvements.
The eight governmental units are in competition for funding.
statewide. They a~"e: Carver County, Forest Lake Twp., Forest'
Lake, Lake St. Croix Beach, St. Paul Park, §tillwater,
Shoreview and Hopkins.
Water Qualit~,;The Council entered into an interagency
agreement with the Metropolitan Waste Control Commission
an~ the park implementing agencies for Hennepin and Dakota
Counties to survey water quality in 42 lakes. The information
will be used to determine the effectiveness of surface water
management.
Parks--The Council said it will discourage, but no longer
disqualify, grant applications for active recreation (such as ball
fields) located in rural areas of the Region. The g~ants are
provided by the federal Land and Water Conservation Fund
and the.state Legislative Commission on Minnesota ResourCes
(LCMR). The Council will rank s.uch applications below other'
applications located in the urban service area.
Crime Control--The Council asked its Criminal Justice
Advisory Committee to address two issues in 1984. The com-
mittee should determine what the role of the Council should '
be in regional criminal justice and public safety. The commit-
tee sh'euld also define the structure and resources the Council
would need to carry out a new role.
State Planning Agency RePort on Regional Structure-
The Council said it supported the major findings and recom-
mendations made in the State Planning Agency report,
"Metropolitan Agencies: Structure and Process Issues." While
in general agreement, the Council said it would continue to
look at the specific i~ues raised and give detailed responses st
a later date. The planning agency rdport was prepared for
Gev. Perpich,
NEW APPOINTMENTS :
March 9, 1984
RECENT COUNCIL ACTIONS (Feb. 27-March 9)
Solid Waste-The Metropolitan Council said Site 2 in Eden
Prairie is environmentally unsuitable for solid waste disposal.
The site became the seventh the Council has rejected in
Hennepin County during the last year. The Council will now
review four sites that had not been selected for consideration
by Hcnnepin County: two in Indepsndence, one in Corcoran
and one in Minnetrista. These sites are environmentally
"intrinsically suitable" according to the Minnesota Pollution
Control Agency, but land in each site is at least partially in an
agricultural preserve and planned for long-term agricultural use.
By law, each courity must adopt an inventory of four pro-
posed landfill sites. Hennepin County has only two approved
sites and has not proposed any additional ones. The law
requires the Council to pick the sites when a county fails to
do so.
The Council set a public meeting for 7 p.m., Wednesday,
April 4 at the Woodbury Jr. High school cafeteria to hear
public comment on a potential solid waste disposal site in
Maplewood.
The Council said while large-scale composting of sewage
sludge and co-compost/rig sludge with mixed municipal solid
waste are currently not practical alternatives to incineration of
sludge, small-scale projects should be pursued. The informa-
tion is in a report that recommends the legislature provide the
University of Minnesota up to $500,000 over the next five
years to research co-composting as a solid waste alternative.
The report, The Potential. for Large-Scale Sewage Sludge
Compo$ffng and. Co-Compost/ng in the Metropofftan Area,
no. 12-84-033, was sent to the Legislative Commission on
Waste Management. For a copy, call the Communications
Department at 291-6464.
Air Quality--The Council adopted a report that says
violations of federal carbon monoxide standards at the inter-
section of University and Shelling Ars. in St. Paul are confined
to the intersection itself and do not extend to the surrounding
neighborhoods. The report will be sent to the Minnesota
Pollution Control Agency to help the agency redefine the'area
of pollution. For a copy of the report, An Analysis of Carbon
Monoxide Dora From the Intersection of Unive~ity and
Snel/ing Av~. in St. Paul, no. 09-84-027, 64 pp., $2.50, call
the Communications Department at 291-6464.
Health--The Council concurred with the Metropolitan
Health Planning Board, recommending approval of a certificate-
of-need request for a nuclear magnetic resonator proposed by
the University of Minnesota Hospitals and Clinics. Purchase of
the machine, the latest advance in providing images of the
body, plus site renovation, will cost S3.2 million. The machine
is expected to be in operation this fall.
Housing--The Council said a rental housing bond program
proposed by Burnsville is consistent with Council guidelines.
The city plans to issue approximately S19.5 million in tax-
exempt revenue bonds to finance a 370-unit rental apartment
complex. The housing is proposed at the intersection of
proposed Southcross Dr. and County Rd. 5. The Council also
The Council named Marge Hals, St. Paul, as its new director
of communications, one of 14 Council departments. Hals has
been publications manager at the Council since 1978.
COUNCIL TO AMEND REGIONAL
TRANSPORTATION PLAN
The Metropolitan Council is proposing an amendment to its
regional'Transportation Policy Plan that would revise the
process for developing priorities for regional transit and high-
way proiects. The proposed amendment includes estimates of
costs and revenues for the projects. Under the amendment,
project priorities would be reviewed every year and updated
every two years.
After adopting the amendment, the Council would begin
set~ing up criteria and identifying priority transit and highway
projects. The Council is expected to adopt the amendment in
May 1984 and the priorities by mid-1985.
Here is a proposed schedule for adopting the amendment.
14 The Council's Metrol~olitan Systems Committee aclopt~.
March 15
March 22
March 23
April 25
May 8
May 16
May 24
hearing draft and a recommended hearing date
Transportation Advisory Board acts on hearing draft
Council adoots hearing draft for public hearing
Hearing draft mailed to affected agencies and governments
Metropolitan Systems Committee holds public hearing
Hearing closes
Metropolitan Systems Commit"tee ac~s on amendment
Metropolitan Council adopts amendment
SEARCH FOR NEW COUNCIL CHAIR
NARROWS TO FIVE CANDIDATES
The search committee chaired by Harlan Cleveland
. presented its candidates for a new Metropolitan Council chair
to Gov. Perpich March 2. The committee recommended Joan
Campbell, Metropolitan Council member; Vern Johnson,
former Citizens League executive director; Barbara Lukermann,
senior fellow at the Humphrey Institute at the University of
Minnesota; Robert Orth, chair of the Ramsay County Board of
Commissioners; and Alice Rainville, president of the Minne-
apolis City Council, The governor is expected to name a new
chair by May 1.
RICK NOLAN TO KEYNOTE
STATE OF REGION EVENT
Rick Nolan, chair of the Governor's Council on the World
Trade Center, will address local government officials and other
interested citizens on how the World Trade Center will affec~
our regional economy at the Metropolitan CounciVs annual
.tare of the Region Event April 30. The event will take place
the Hilton Inn, 1330 Industrial Blvd., Minneapolis, from
8 a.m. to 1:40 p.m.
Concurrent morning seminars will include the following:
1994--New Regional Services and Governmental Structures,
chaired by John Brandl, professor at the Humphrey Institute
of Public Affairs; Money/nc the Waters--What Does "Fishable"
and "Swimmable" Mean to the Twin Cities Area7, chaired by
Sandra Gardebring, director of the Minnesota Pollution Con-
trol Agency; Home Equity Vs. Public Subsidies-Who Pays to
House Elderly PeoPle?, chaired by Tom Byrne, chair of the
Council's Long-Term Care Task Force; and Paying for Parks-
What's the Best Way to Pay for Operating and Maintaining
Our Regional Parks?, chaired by Rep. Gordon Voss of Blaine.
The event will also include an address by Council Chair
Gerald Isaacs, comments by the new Council chair, the first
Recjio.-.al Citizen of the Year award and a slide presentation.
To register, send a check for S10, payable to "State of the
Region," by April 20 to the Metropolitan Council. For
information, call 291-6464.
INVITE A PLANNER TO DINNER
Would you be interested in inviting a small group of
planners from around the nation into your home for dinner
Monday, May 7? About 2,500 American Planning Association
(APA) members from all 50 states and Canada will be in the
Twin Cities May 5-9 for their annual national conference, and
a dinner with local residents is one of the activities planned for
them.
The evening is an opportunity for you to describe what you
like about living in the Twin Cities Area, and a way to help the
planners feel more at home here. You can even choose guest
planners according to their area of professional interest.
For more information on being a host, call the Minnesota
chapter of the APA at 348-6962.
APRIL PLANNERS' FORUM:
ZONING FOR NEW ENERGY TECHNOLOGIES
Zoning for wind machines, earth-sheltered buildings and
solar access will be the focus of a planners' forum held by the
Metropolitan Council on April 10 at 9:30 a.m. in the Council
offices. Jan/ce Thompson, state energy and land use planner,
will discuss the recently published guidebooks for Minnesota
communities: Zoning for Wind Machines, Zoning for Earth.
Sheltered Buildings and Planning and Zqning for Solar Acce~
For more information on the April forum, call Jim Uttley at
291-6361.
NEW PUBLICATIONS
Long-Term Care: Is It M/n/on tmpo~/b/e? Jan. 1984.
No. 19~4~23; 73 pp.; S2.75.
Crime Trends in the Twin C/t/es Metropolitan Area: An
Update. Feb. 1984. No. 36-83-153; 64 pp.; $2.50.
COMING MEETINGS (March 19-29)
(Meetings are tentative. To verify, call 291-6464.)
Community Services Subcommittee of the Advisory
Committee on Aging, Monday, March 19, 9 a.m.-5 p.m.,
Conference Room E.
.lyletropolitan Parks and Open Space Commission, Monday,
MarCh 19, 3 p.m., Council Chambers.
Metropolitan Waste Management Advisory Committee,
Tuesday, March 20, 11 a.m., Council Chambers.
Transportation Advisory Board, Wednesday, March 21,
2 p.m., Conference Room E.
Metropolitan Systems Committee, Wednesday, March 21,
1:30 p.m., Council Chambers.
Metropolitan Ridesharing Board, Thursday, March 22,
9 a.m., Council Chambers.
Metropolitan and Community Development Committee,
Thursday, March 22, 1 p.m., Council Chambers.
Metropolitan Council Committee of the Whole, Thursday,
March 22, 2.:30 p.m., Council Chambers.
Metropolitan Council, Thursday, March 22, 4 p.m., Council
Chamb.ers.
Advisory Committee on Aging, Friday, March 23, 9 a.m.,
Council Chambers.
Aviation Policy Plan Task Force, Friday, March 23, 9 a.m.,
St. Paul Downtown Airport Terminal Building Conference
Room.
LAWCON/LCMR Grant Process Study Committee (Parks
and Open Space), Monday, March 26, 7 p.m., Conference
Room B.
Metropolitan Systems Committee, Tuesday, March 27,
3 p.m., Conference Room E.
University Av./SW Corridor Study Steering Committee,
Wednesday, March 28, 9 a.m., Conference Room E.
Metropolitan Housing and Redevelopment Authority
Advisory Committee, Wednesday, March 28, 11 a.m.,
Conference Rooms C and D.
Environmental Resources Committee, Wednesday,
March 28, 3 p.m,, Conference Room E.
Metropolitan Health Planning Board, Wednesday, March 28,~
4 p.m., Council Chambers.
Metropolitan Council's Telecommunications Issues Forum,
Thursdav, March 29, 1-5:30 p.m., Council Chambers
(tentative).
Metropolitan and Community Development Commit-tee,
Thursday, March 29, 1 p.m., Council Chambers.
Arts Advisory Committee Meeting, Thursday, March 29,
5:15 p.m., Conference Room E.
City of Mound.
Mr Jori Elam.
Dear Sir:
I look with amusement at a statement from your City Clerk/
Administrator Charlotte Paterson. "If you know that your sump
pump is connected to the city sewer, it should be disconnected
immediately."
Is this illegal? Is there a fine? Who in the city has the
job of enforcing this? Really! Over the past several years I
have reported numerous ogoing's on and all I everhear is. Thats
not my job~ Maybe in the next issue of the Laker you could tell
me who has this fateful job. The meter reader goes past these
pumps in the older homes and buildings every time he reads the
water.meter and he never tells. Mound has been in the process
of replaqing water meters with the new tkpe that can be read from
the outside. How' do they miss the sump pumps? I forgot, Thats~. not
their job.
All one has~ to do is leave City Hall drive to Cty 15 go left
to the Stop lites and go into The Recently Remodeled Law Offices
and you have your first Culprit. Go North and South and you have
some more. Lake Langdon drains more through the sewer than Lake
Minnetonka. Why not start with the business district? Do they
have §pecial treatment? 3 of your city employees know of this
but its not their Job. "Fantastic"
TWIN
LABOR
CITIES
MARKET
INFORMATION
LABOR MARKET CONDITIONS
Vol. 8 No. 3 MARCH 1984
· .Preliminary estimate~ for January show a strong start for 1984 job market conditions
in the Minneapolis-St. Paul metropolitan area. For only the second time in the past
14 years, the unemployment rate dropped between December and.January. Typically, the
unemployment rate increases by 0.5 percentage points as seasonal layoffs in the con-
struction and retail trade industries result in higher jobless rates. While the total
number of employed residents decreased by 1.1 percent, this was considerably less than
the 13 year average of -2.8 percent. Month-to-month changes in labor force statis-
tics, especially in the number of unemployed workers, can be somewhat unpredictable
because of the'nature of the estimating methodology. However, year ago comparisons of
the number of unemployed show more accurately t~e extent of improvement in the unem-
ployment situation. The number of unemployed is 29,000 or 31.6 percent less than a
year ago at this time. The unemployment rate for January is now the lowest it has
been since 1981 when it was 4.7 percent.
NOTE: 1983 LABOR FORCE DATA FOR MINNESOTA, THE MINNEAPOLIS-ST. PAUL SMSA,
AND ITS SUBAREAS HAVE BEEN REVISED TO THE'1983 ANNUAL AVERAGE
CURRENT POPULATION SURVEY BENCHMARK.
LABOR FORCE ESTIMATES
{not seasonally adjusted)
AREA CIVILIAN [JkBOR FORCE T01JkL F.J~PLOYMENT -. UNEMPLOYMENT UNEMPLOYMENT RATE
JAil. ~ DEC, ~ JAil.. JAN. ~ DEC. ~ JAN. ~ JAN. ~ DEC. ~ JAN. ~ JAil. p DEC. ~) JAN. ~
1984~ 1983K 1983K 1984r 1983~ 1983K 1984r 1983K 1983K 1984' 1983~! 1983~
Minneapolis- 1,1'86. l 1,203.4 1,157.2 1,122.5 1,134.7 1,064.7 63.6 68.6 92.6 5.4 5.7 8.0
St. Paul SIVA*
County:
Anoka 112,737 114,374 110,644 106,267 107,422 100,788 6,470 6,952 9,85'6 5.7 6.1 8.9
Carver 21,458 21,555 21,056 20,086 20,304 19,050 1,372 1,251 2,O06 6.4 5.8 9.5
Chisago 15,362 15~489 14,767 13,943 14,095 13,224 1,419 1,394 1,543 9.2 9.0 10.4
Oakota 111,732 113,505 109,073 105,244 106,388 99,817 6,488 7,117 9,256 5.8 6.3 8.5
Henneptn 535,683 543,813 522,834 510,417 515,968 484,101 25,266 27,845 38,733 4.7 5.1 7.4
R~msey 262,977 266,~61 256,194 249,2B7 251,998 236,~34 13,690 14,863 19,760 5.2 5.6 7.7
Scott 25,710 25,886 25,115 23,739 23,997 22,515 1,971 1,889 2,600 7.7 7.3 10.4
Washington 65,184 66,247 63,193 61,576 62,246 58,401 3,608 4,001 4,792 5.5 6.0 7.6
Wright 35,239 35,629 34,329 31,967 32,316 30,321 3,272 3,313 4,008 9.3 9.3 ll.7
City of 211,294 214,449 206,417 201,123 203,310 190,754 10,171 l1,139 15,663 4.8 5.2 7.6
XI nneapol tS
City of 155,159 157,367 151,267 146,514 148,107 138,960 8,645 9,260 12,307 5.6 5.9 8.1
St. Paul
Minnesota' 2,150.7 2,175.2 2,111.2 1,983.9 2,007.2 1,895.0 166.8 168.0 216.2 7.8 7.7 10.2
United State~* 111,025 111,795 109,779 101,270 102,803 97,262 9,755 8,912 12,517 8.8 8.0 11.4
P · Preliminary
R - Revtsect
* U.S., Minnesota, and SMSA data in thousands.
NOTE: BENCHMARK ADJUSTMENTS HAVE BEEN MADE TO 1983 MONTHLY EMPLOYMENT, HOURS,
AND EARNINGS ESTIMATES.
EHPLOYMENT, HOURS AND EARNINGS
in the Minneapolis-St. Paul Metropolitan Area
PERCENT PRODUCTION WORKERS' HOURS & £ARNI~G~-/
£MPLOYME~I' CHANGE Average Weekly Average Hourly Average Weekly
INDUSTRY (UUU) FROH Earnings Earnings Hours
JAN. Month Year Month Year JAN. Year JAN. Year JAN. Year
1984 A o Ago Ago Ago 1984 Ago 1984 1984
......... ~ Ago Aqo
'~O~'~L NONAGRJCULIURAL 1089.0 1106.6 1043.3 -1.6 4.4 XX XX XX XX xx XX
~tA~UFACIURING 237.5 237.8 225.3 -0.2 5.4 421.89 386.12 10.24 g.85 41.2 39.2
Uuroble~Goods 151.4 151.7 142.0 -0.2 6.6 436.90 395.60 10.28 9.72 42.5 40.7
l. umber& fur,iture 6.2 6.3 5.7 -0.6 9.3 427.99 395.26 10.62 10.24 40.3 38.6
Stone, Clay & Glass 3.6 3.5 2.8 4.6 28.1 366.15 395.92 9.79 9.80 37.4 40.4
Prlllidry Metals 4.4 4.3 4.0 2.4 12.0 393.36 351.54 8.94 8.68 44.0 40.5
F,bricated Metals 26.1 26.4 25.8 -1.2 1.O 481.10 453.95 11.32 10.86 42.5 41.8
Ho,-Electrical Machinery 63.3 63.3 58.3 -O.1 8.5 1441.09 393.09 10.33 9.73 42.7 40.4
Office & Cm,puting [qui~ent 32.9 33.0 29.8 -0.4 10.4 XX XX XX XX XX XX
Electrical Mu~hinery 17.4 17.5 16.6 -0.9 4.8 393.39 357.98 9.30 9.04 42.3 39.6
lrdnsportation Equi~m~t 4.0 4.1 2.1 -2.1 93.4 598.46 428.65 13.0l 10.77 46.0 39.8
Scientific I,strume,ts 22.8 22.6 22.7 0.6 0.2 ~35.16 391.13 9.89 9.16 44.0 42.7
Miscellaneous 3.7 3.6 4.0 0.7 -8.9 324.69 339.44 8.39 8.34 38.7 40.7
i(ondurable Goods 86.0 86.2 83.3 -0.2 3.3 398.04 371.95 lO.lB 0.08 39.1 36.9
Food & Kindred PrOduCtS 17.7 18.2 18.1 -2.5 -1.8 395.20 351.22 9.71 9.57 40.7 36.7
Textiles a Apparel 2.2 2.2 2.3 1.O -4.6 214.53 184.08 5.91 5.90 36.3 31.2
Paper & Allied I'roducts 24.6 24.S 23.7 0.6 3.B 411.70 424.32 9.71 10.20 42.4 41.6
I','i,~ti,g & Puhlishi,g 25.2 25.0 23.9 0.8 5.6 404.26 365.26 11.65 ll.17 34.7 32.7
Ci,emical & P~troleum Products 7.7 7.8 7.7 -0.9 0.5 464.52 403.21 11.76 10.81 39.5 37.3
RobOt. r. Pla~ti~, ~,d Leather 8.5 8.5 7.6 0.3 12.0 365.31 336.30 9.11 8.85 40.l 38.0
NONHANuFACTURIHG 851.5 868.7 818.1 -2.0 ~.l XX XX XX XX XX XX
ICONSTRuCTION 34.3 37.4 30.2 -8.3 13.6 599.90 567.58 16.04 15.55 37.4 36.5.
Building Construction 9.8 10.7 9.1 -8.3 8.5 588.89 560.60 16.09 15.07 36.6 37.2
Highwdy & Heavy Co,structiun 2.3 3.1 2.3 -26.1 -1.2 439.71 498.55 14.23 14.75 30.9 33.8
bpecial lrades Contracti,g 22.2 23.6 18.8 -5.9 17.9 620.54 579.62 16.16 15.88 38.4 36.5
TRANSPORTATION 41.6 41.8 39.9 -0.5 4.1 XX XX XX XX XX XX
' Railroads 6.4 6.5 7.0 -0.6 -7.4 534.11 503.32 11.34 11.16 47.1 45.1
Trucking & Warehousing lS.1 15.3 13.5 -1.S ll.8 434.51 427.38 12.45 12.46 34.9 34.3
PUBLIC UIILIllES & COl~t. 21.0 21.2 20.7 -1.0 1.1 )04.34 464.90 12.64 11.89 39.9 39.1
TRADE 263.4 272.0 257.1 -3.2 2.5 241.68 227.21 7.95 7;65 30.4 29.7 -
Retail Trade 191.7 200.6 187.4 -4.5 2.3 ~88.64 175.27 6.81 6.54 27.7 26.8
G~,eral Merchandise Stores 33.1 36.3 31.6 -8.9 4.7 )176.90 166.70 6.10 6.04 29.0 27.6
Food Stores 24.2 24.6 25.5 -1.5 -4.8 ~43.98 238.26 8.16 8.36 29.9 28.5
Eating & Drinking Places. 60.5 62.3 59.6 -3.0 1.5 84.73 87.88 4.58 4.53 18.5 lg.4
Specialty Merchandise~/ 73.9 77.4 70.7 -4.5 4.5 161.03 1231.27 7.70 i 7.18 33.9 32.2
W~olesale lrade 71.7 71.4 69.7 0.5 2.9. 108.06 391.72 lO.4g/lO.D7 38.9 38.9
FINANCE, INS. & REAL ESTATE 75.9 76.4 73.0 -0.6 4.1 312.66 301.68 8.36 7.96 37.4 37.9
li,,ance 32.8 33.0 30.9 -0.5 6.2 331.45 311.54 8.91 8.22 37.2 37.9
Insurance 29.7 29.7 29.2 -0.2 1.5 349.81 337.84 8.47 8.24 41.3 41.0
Ru~l Estate 13.5 13.7 12.8 -1.6 4.8 194.77 204.70 6.58 6.54 29.6 31.3
5ERVICF & HISCELLANEOUS 263.1 265.3 247.3 -0.8 6.4 XX XX XX XX XX XX
Lodging & Recreation 24.3 24.6 23.0 -1.2 5.7 135.90 131.54 5.88 5.77 23.1 22.8
P,.rsu,~l Services ll.2 ll.2 ll.1 0.0 l.O XX XX XX XX XX XX
lsUsi,ess Services 56.5 57.6 48.8 -1.9 15.7 XX XX XX XX - XX XX
Rep, ir Services 12.9 13.0 12.0 -0.2 7.6 258.49 256.70 6.93 6.72 37.3 38.2
Health Services 74.1 74.3 72.9 -0.3 1.6 232.14 217.65 7.95 7.61 29.2 28.6
Hospitals 30.1 30.2 30.4 -0.5 -1.0 ~67.90 250.70 9.40 8.89 28.5 28.2
Nursing Ilomes 20.1 20. I 20.4 -0.2 -1.8 92.23 183.26 6.89 6.64 27.g 27.6
Other H~alth 23.9 24.0 22.1 -0.2 8.4 XX XX XX XX XX XX
Ley~l Services 8.3 8.3 7.7 0.8 8.g q36.18 357.77 11.95 9.49 36.5 37.7
Private £~ucation 15.9 16.1 14~4 -1.4 10.2 XX XX XX XX XX XX
Other Services~/ 56.9 56.7 54.4 0.4 4.6 XX XX XX XX XX XX
~OVERNHENT 152.2 154.6 149.8 -1.5 1.6
Feaural 17.8 17.7 17.5 0.5 1.4
State 46.6 47.2 46.7 -1.2 -0.2
Local 87.8 89.7 85.6 -2.1 2.6
" Luss than .05
I/ Averag,~ eernincjs data are on a "gross" basis and 'are derived from reports of payroll for full- and part-time
produC,:iun or nonsup{~rvisory workers. The payroll is reported before deductions of any kind. Bonuses, retrO-
active pay, tips, p,yment in kind, and "fringe benefits" are excluded.
2_/ Includes Building Materials, Automotive, Apparel, Home Furnishings, Drug, Mail Drder and Miscellaneous
ketai ) i,g
~/ ]ncluOes Social Servfces. ~mbership Organizations. and Mis~el)aneous Services such as Engineering and
Account lng.
Source: Current £mpl~yl.unt Statistics Program (Figures rounded to nearest hundred).
EMPLOYMENT AND EARNINGS CONDITIONS
)TE TO READERS: The table on the opposite page has undergone some changes which we
pe will provide you with a more complete picture of trends in employment~ hours and
earnings in Twin Cities area industries. In order to provide more information on the
fast-growing industries, we have expanded the service and trade industry sections'as
well as reported monthly estimates for the computer subgroup of the nonelectrical
machinery industry. After reviewing the quality of the monthly sample, we have also
expanded the hours and earnings section. Some data still cannot be reported because
either it is not collected or because the industry is so diverse that an average hour-
ly figure can be very misleading. Finally, we will provide year ago comparisons of
hours and earnings rather than month.ago.. '~
'As noted on the table, monthly estimates for 1983 have been :revisedo This process,
called benchmarking, resulted in an upward revision of wage and salary estimates in
five industries, while two industries, trade and government, experienced minor down-
ward revisions. Overall, revised December total wage and salary employment Was 17,000
or 1.6 percent higher than originally reported. A brief note of explanat4on may be
useful to users of the employment figures. Each month a sample of about 1,500 employ-
ers voluntarily send us payroll employment figures. At the beginning of each year,
these sample-based estimates are revised to more complete employment counts which the
Research Office'receives quarterly from employer~ reporting employment and wages for
Unemployment Insurance tax purposes. Presently,-quarterly reports through June, 1983
are available. Figures for the balance of 1983 and the upcoming months of 1984 will
reflect month-to-month changes in employment based on the sample of employers.
C~I~ACTERISTICS OF PERSONS
C~IImMING UNEMPLOYMENT INSURANCE
The number of unemployment insurance
claimants rose by 3,749 from December.
This monthly increase of 21.4 percent is
near the past six year average of 24.7
percent, reflecting, seasonal develop-
ments in all industries. The January
rise is most pronounced in construction,
which now has the largest number of
CNARACTERISTICS OF THE I~SURED UI(E)tPLOYED
(Regular Benefits Program)
MINNEAPOLIS-ST. PAUL SMSA
Week Ending 1/12/84
Percent Change
Industry and From: Percent Percent ~
Occupational ~onth Year of ILong-Term~ Percent
Attachment .. Number Ago Ago Total Unemployed Women
Total, All Industries 21,285 21.4 -41.9 lO0.O 13.9 25.3
Construction 6,271 36.9 -17.3 29.5 3.3 3.4
~anufacturing 4,711 10.3 -62.4 22.1 15.9 31.1
Durable Goods 3,341 ll.O -65.6 15.7 14.5 2~.7
Nondurable Goods 1,370 8.8 -51.2 6.4 lg.4 36.7
Trans., Coa~., and
Public Utilities 899 22.6 ~40.7 4.2 15.5 15.6
Wholesale Trade 1,470 16.5 -47.6 6.9 20.8 22.8
Retail Trade 2,336 20.2 -37.9 . ll.O 21.2 34.9
Fin., Ins., and
Real Estate 700 4.9 -36.2 3.3 30.9 54.3
Services 3,466 19.4 -35.6 16.3 21.4 51.6
Public Admtn. 463 8.9 -16.4 2.2 17.1 33:.3
All Other 884 33.3 -)8.1 4.2 2.6 7.8
Inf. Not Available 85 70.0 -73.8 0.4 2.4 17.6
lotal, All Occupations 21,285 21.4 -41.g 1D0.O 13.g 25.3
Prof., Tech., Mgr. ~,935) 10.3 -42.4 13.B 26.6 '37.4
Clerical 2,331 9.6 -43.4 ll.O 28.D 75.9
Sales B13) 16.6 -37.4 3.B 26.1 27.1
Service 1,40~ 15.4 -35.8 6.6 23.2 43.1
Farm., For., Fish. 553 25.4 -12.6 2.6 2.2 7.8
Processing 326 23.0 -42.5 1.5 ll.3 13.2
~chtne Trades 1,1951 16.2 -62.2 5.6 15.A )5.2
Benchwork 1,734 7.8 -62.8 8.1 10.8 52.8
Structural Work 6,336 37.6 -2g.2 29.8 4.2 2.1
Miscellaneous 3,634 26.9 -37.6 17.1 B.1 10.1
Inf. Not Available 25 -7.4 -80.C 0.1 16.0 36.0
NOTE: Percentages may not total to lO0.O due to independent rounding.
l_/ Long-Term unemployed refers to unemployment insurance clmimants whose
current spell of unemployment has lasted 15 weeks or longer,
claimants at 6,271,-.close to one-third
of the total. Consequently, the per-
centage of long-term unemployed now
stands at 13.9 percent, its lowest point
in four years due to these recent con-
struction laYoffs'and th~ significant
drops in claimants from one year ago
that other industries continue to show.
January marks the tenth straight month
that their number has decreased from
last year's levels, with the manufactur-
ing sector displaying the greatest per-
centage change. Only 22.1 percent of
all claimants hail from that industry,
lowest share since April of 1979,
gh their number still exceeds 1979
and 1980 levels.
THE JOB MARKET
As noted previously
estimates for 1983
figures.
in the bulletin, labor force and nonagri.cultural wage and salary
have been revise~. The following tables present the revised
1983 ANNUAL AVERAGE
LABOR FORCE STATISTICS
Minneapolis-
St. Paul SMSA* 1,17g.1
County:
Anoka 112,549
Carver 21,049
Chisago 14,872
Dakota 110,454
Hennepin 534,820
Ramsey 261,675
Scott 25,145
Washington 64,338
Wright 34,244
City of Minneapolis 211,316
City of St. Paul 154,164
City of Bloomington 46,375
Minnesota* 2,175.0
United States* 111,550.0
Civilian Unemployment
Labor Force Employment Unemployment Rate
1,100.8 78.3 6.6
* U.S., Minnesota, and SMSA data
104,210 8,339 7.4
19,697 1,352 6.4
· 13,673 1,199 8.1
103,206 7,248 6.6
500,537 34,283 6.4
244,461 17,214 6.6
23,279 1,866 7.4
60,384 3,954 6.1
31,35,0 2,894 8.5
197,230 14,086 6.7
143,678 10,486 6.8
43,509 2,866 6.2
1,997.0 178.0 8.2
100,834.0 10,717.0 9.6
in thousands.
1982 AND 1983 ANNUAL AVERAGE
NONAGRICULTURAL WAGE AND SALARY EMPLOYMENT
1982
Total, All Industries 1,067.1
Manufacturing' 234.7
Durable Goods 150.1
Nondurable Goods 84.6
Nonmanufacturing 832.4
Mining
Construction 35.8
Trans., Con~.,
Pub. Util. 60.9
Trade 262.7
Wholesale 73.2
Retail 189.6
Fin., Insur.,
Real Est. 73.2
Services 257.3*
Government 151.8
Federal 17.7
State 45.6
Local 88.5
Includes mining.
(In ThousandS)
Minneapolis-St. Paul Minnesota
Percent Percent
1983 .Change 1982 1983 Change
1,075.5 0.8 1,706.8 1,714.2 0.4
232.9 -0.8 346.6 345.0 -0.5
147.7 -1.6 206.4 204.5 -0.9
85.2 0.8 140.2 140.4 0.2
842.6 1.2 1,360.2 1,369.3 0.7
9.5 8.4 -ll .0
36.6 2.2 59.9 60.3 0.7
-61.1 0.4 93.1 92.4 -0.8
261.8 -0.3 ' 429.5 428.6 -0.2
70.5 -3.6 ll2.0 lO9.1 -2.6
191.3 0.9 317.5 319.4 0.6
75.1 2.7 98.2 100.8 2.6
248. O* 3.8* 392. l 380.6 3.0
150.7 -0.8 289.4 286.8 -0.9
17.6 -O.g 30.5 30.3 -0.6
.46.1 1.1 71.3 70.2 1.6
87.0 -1.7 188.7 185.1 -1.9
7oz
CITY OF EXCELSIOR
339 THIRD STREET
EXCELSIOR, MINNESOTA 55331
TELE: 612--474-5233
MAYOR
Richard J, Knapp
COUNCIL
Lucille Crow
James R, Olds, Jr,
Charles S, Thomson
Carl H, Weisser
CITY MANAGER
Timothy G. Madigan
March 16, 1984
Dear Local Officials:
I am enclosing a copy of a March 13, 1984 letter from Marcia Bennett,
Metropolitan Council Representative and Chairwoman of the Metro Systems
Committee. Her letter invites local officials (and I assume those
"customers" of Metropolitan Waste Control Commission) to an "informal
bri efi ng".
Though this "informational briefing" might sound like a waste of time
to you, I encourage you or one of your staff to attend to impress
these people with our numbers and our concern with rapidly rising
sewer rates.
I am working with our City Manager, Tim Madigan, to get more control by
user cities of the MWCC Board. This can be accomplished through our in-
volvement in a management and reorganization study with the'Governor's
office - which is being proposed by our group.
The heat is on MWCC NOW - NOW is the time to get things changed so
that we have an opportunity to control our sewer costs.
We can do this by attending ALL meetings concerning MWCC - if you are
unavailable, be sure one of your staff gets to the meetings.
By working together, we have a lot of talent and power; and we can succeed.
With success in hand then we can relax our efforts - but the ~present op-
portunity will not last long. I believe others are trying to forestall
reform efforts by reviewing them to death. And the Legislature probably
will not deal with MWCC reorganization in this session - which probably
means never. So it has to be done now, if ever, in the Governor's
office.
Please join in - and help.'
Encl.
Charlie Thomson, Councilman
Metropolitan Council
300 Metro Square Building
Seventh and Robert Streets
St. Paul, Minnesota 55101
Telephone (612) 291-635b
l,tar'ch 13, 1984
Dear Local Official:
A special meeting of the Council's Metropolitan Systems Comntttee is being '~
held, with Commissioners of the Metropolitan Waste Control Commission (~CC),
in the Council Chambers on Wednesday, March 21, 1984 at 1:30 p.m. The
purpose of the meeting is to receive an infomational briefing from Commission
staff on the I~CC's cost allocation system. A question and answer period ~ll
fo 11 ow.
This meeting has been scheduled as a result of the Council's consideration of
the findings of the Regional Services and Finance StudY concerning the MWCC.
In the course of committee discussion of that section, it became apparent
that more information was required before the Council could respond to local
concerns regarding the equity and efficiency of the current system.
Although I realize that the meeting has been scheduled on relatively short
notice, I hope you will be able to attend this important session. If a
significant number of interested local officials cannot attend this meeting,
but inform us that they still wish an opportunity to participate in a general
review of the ~t~CC's cost allocation system, a subsequent session can be
schedu 1 ed.
If you have any questions on this matter, please feel free to contact John
Harrington of the Council .staff, at 291-6324.
Sincerely,
~r~ta Bennett, Chair
Metropolitan Systems Committee
An Equal Opportunity Employer
o o ,o,o o BULLET
metropolitan
munici'palitiee
March 9, 1984
IN
TO:
AMM Member Cities
Mayors and Managers/Administrators
FROM: AMM Staff
There are several items we would like to bring to your attention:
AMM ANNUAL MEETING - WEDNESDAY EVENING, MAY 30, 1984:
The 1984 AMM Annual Meeting for the major purpose of electing officers and board
members has been set for Wednesday evening, May 30, 1984. The location has not been
selected as yet but it will be a dinner meeting. A meeting notice with the complete
details and agenda will be mailed in early May but we wanted to inform you of the
date now so you can plan accordingly.
NOMINATIONS FOR OFFICERS/DIRECTORS FOR 1984-85 WANTED:
A Nominating Committee was appointed by the Board of Directors at the March lst.,
Board Meeting as required by the AMM By-Laws. The offices' of President, Vice-
President and eight Board Directors are to be filled. If you have nominations/
recommendations for these positions, please submit them to any Nominating Committee
member or to the AMM office, attention: Vern Peterson by no later than Friday,
April 6, 1984. The Committee members are Mary Anderson, Golden Valley Mayor, Chair
Gary Bastian, , Maplewood Councilmember, Jim Lacina, Woodbury Administrator, Dennis
Schneider, Fridley Councilmember, Maureen Warren, St. Paul Mayor's Office, and Duane
Zaun, Lakeville Mayor.
PRESENTATION ON ALLOCATING METROPOLITAN SEWER COSTS - WEDNESDAY, MARCH 21, 1984, 1:30 PM:
The Metropolitan Council is inviting city officials to attend a presentation on hQw
costs of the regional sewer system are allocated among the Region's communities. The
presentation, to include discussion and a question period, will be made at a joint
meeting of the Metropolitan Council's Metropolitan Systems Committee and the
Metropolitan Waste Control Commission March 21 at 1:30 p.m. in the Council Chambers.
The meeting will provide an overview of the costs of capital investments and sewage
treatment and how they are billed to local communities.
For more information, call Council planner John Harrington at 291-6324.
183 university avenue east, st. paul, minnesota 55101 (612) 227-5600
-2-
LOCAL GOVERNMENT AID - BOARD POLICY:
A new 1985 LGA Distribituion policy has been developed by the Association of Metropolitan
Municipalities Revenue Committee and adopted by the Board of Directors. The AMM is
urging the legislature to give careful consideration to the proposal as an interim
solution to what has become a very difficult problem.
As stated in the policy preamble, the combination of the 1979 LGA formula and the
1983 modifications have caused a tremendous amount of dissension and bickering among
cities. If the current formula is allowed to operate, ir'will considerabley
aggravate the problem for the 1985 session. .If a flat 6% increase were granted, to all
cities, there would be some breathing space for tempers and emotions to cool off and
· ti=~ for both local officials and legislators to attempt, in a mmre concilliatory mode,
to arrive at. long range solutions.
Remembering tha't the property taxpayers (residential homestead, agricultural, and
business persons) are the ones that are either helped or hurt by the decision; a 6%
across the board LGA increase will at least keep property tax increases for 1985
stable throughout the state rather than some people experiencing a 5 or 6% municipal
increase versus others experiencing up to 15 t~ 20% municipal increases. LGA, unlike
some other pro~rty tax and credit programs, provides tax relief across the board to
all property types. A 6% increase for 1985 is well within the bounds of reasonable
support for the LGA program when one considers that in the past few years municipal
LGA has steadily declined as a percentage of the state budget overall and that the
increase of $15 million dollars has no impact on the current biennium but will be expense
allocated to the 1985 - 1986 biennium. (a copy of the AMM Board Policy is attached).
METROPOLITAN TRANSIT REORGANIZATION. UPDATE:
As predicted in the February 1984 AMM Newsletter, the Legislative Study Commission on
Metropolitan Transit has submitted a Transit Reorganization bill (SF 1703) which is
becoming a hot issue. The Commission Report and subsequent bill do follow basic AMM
Policy. However, as in most bills, there are some exceptions which we will attempt
to have changed before final passage.
The bill closely follows AMM policy by concentratingtransit responsibility in a single
new agency entitled the Regional Transit Board (RTB) which will do intermediate and
implementation planning, contract for service provision, determine funding criteria and
type, and distribute funds. The Board will be similar to the curreht FFC with eight
members appointed bg the Metropolitan Council after consultation with legislators and
local officials. The MTC 'Bus' operation will be headed by a three member, board
appointed by local officials. The Metropolitan Council retains long range planning
authority.
The bill differs from AMMpolicy in four areas which hopefully will be modified before
passage. The RTB chair is proposed to be appointed by the Governor. Both the AMM and
Governor have suggested the RTB chair be appointed by the Metropolitan Council. The
bill proposes that the Metropolitan Council have approval authority of. the RTB operating
budget as well as the capital budget. The A~LM opposes this and will lobby for review
and comment only for the operating budget. The bill proposes that the RTB may establ3sh
an advisory committee of providers and local officials. The A~M will seek to make t.
advisory committee, mandatory. The final divergent point concerns funding. Whereas,
the commission strongly suggested a feathered property tax with replacement funds
from the automobile excize tax, the bill leaves this issue to the RTB to study an~ make
recommendations. The AMM is strongly suggesting this be included in the bill.
-3-
Lastly, the bill does provide as ~r A3HM polic~ a continued and more flexible oRtout
provision and does strongly encourage development of local area planning boards'to
be involved in determining the service provisions for developing suburban or
subregional areas of the Metropolitan community. This bill will move rapidly
through the process.AMM staff will be following its progress and will call on local
officials from time to time for local input at the legislature. If you want to be
involved and need additional information, please contact Roger Peterson at the AMM
office f227-5600;. (A cop~ of the Board Policy attached).
1985 LGA DISTRIBUTION (AMM BOARD OF DIRECTORS POLICY)
The 1983 LGA formula changes coupled with the already growing dissatisfaction
over the 1979 LGA formula results have caused much dissension and bitterness
among city officials in the state resulting in various coalitions forming to
lobby extremely diverse points of view. There will almost certainly be major
LGA distribution changes considered in the 1985 legislative session for 1986
and beyond. The current distribution formula causes an accelerated differential
or disparity in aids to individual cities which will only be greatly increased
if left ~n place for 1985 distribution. Therefore, it is reasonable that until
long range policy decisions are made and formula changes are enacted in the
1985 legislative session, the current formula be suspended for 1985 distribution
and in its place a percentage increase be granted to all cities. This can most
certainly be justified to inhibit larger than necessary property tax increases
from occurring sporadically in some cities within the state.
THE ASSOCIATION OF METROPOLITAN MUNICIPALITIES URGES THE 1984 LEGISLATURE TO
ADOPT AN LGA DISTRIBUTION FOR 1985 THAT INSURES THAT ALL CITIES WILL RECEIVE
THE AMOUNT ALLOCATED FOR 1984 PLUS A 6% INCREASE.
70 ?
J~nua~j ~0, 19~4
Joint Chalrs: Sen. Steve ~ovak and Rep, I:athleen Ve~lenga
Association of t~etropolltan ~micipalttles
~etropolltan Transit Reco__~e__ndatlon - A~N Board of Directors Polic~ ..~
FUNDING. In the past 2. years there has be~n a great deal of discussion
~onc~rn~ng the appropriate level of property tax versus service in the
various areas of the Wetropolitan A'rea. Wany cities and organizations
Including the W~C and Wetropoli.ta~ Council have suggested thaC the level
of property tax and service availability should be more ~. igned as is the
current fare box policy.
THE ~ S~PPORTS A FEATHERED TRANSIT PROPERTY TAX SYSTEH WHEREBY
THE TAX RATE IS REDUCED IN PROPORTION TO SERVICE IN O~TLYING
AREAS. THE ~OSS OF PROPERTY TAX F~DS SHOULD BE REPLACED FROB
A PORTION OF THE HOTOR VEHICLE EXTISE TAX TRANSFER FUNDS.
ORGANIZATIONAL ~NITS *BY F~NCTION.* Cu~rentl~ ~ seperate la,ers or levels
of governmental agencies have. a direct but somewhat confusing and overlapping
role in providing He'tropolitan Transit. These are WNDOT, Hetropolitan Council,
and MTC. Ail .four proposed mode-ls suggest concentrati*ng t~e major polic~,
planning,and funding decisions in a single agency. Even Hodel .4, which uses
an expanded subregional mid range planning System places the major decision
making responsibilitv with the Hetropolitan Council.
IT SEEHS LOGICAL TO CONCENTRATE SPECIFIC ~UNCTIONS AS PROPOSED IN
ALL HODELS AND CREATE ONE RESPONSIBLE AGENCY WHICH WOULD COORDINATE
AL~ FOR~_g OF TRANSIT AND TRANSIT PROVIDERS: THIS ALSO IMPLIES AUTHORITY
FOR DISTRIBUTION OF FUNDS.
PLANNING. The four models discuss long range and mid range implementation
planning, neither of which is well defined. With the exception of Hodel 3,
long range planning is /eft to the*~etropolitan Council. Hid range and
imple~-ntation planning raise questions as to degree and content. It m~y be
possible that we should be 'discussing three rather t~n two levels of planning
activity, a theoretical level discussing needs of the area and providing
discussion that if X transit is provided then Y highways are needed but that
if 2 X transit can be achieved then only part Y is needed is one level. A
~lddle range adght provide more specific ~.eds with alternative modes for more
specific areas along with c~ordi~ation a~ng areas. Finally, the last level
or i~pl~ntatlon level would discuss specific equipment and alternatives to
satisf~ the de.rids as specified in long and ~tddle planning.
-2-
LOWG RAMCE PZAN~IZHG SHOULD RESIDE WITH T~ RETROPOLITA~ COUNCIL, AT
IMTERACT WITH OTHER PHYSICAL PLAMBI~G RESTRAIMTS SUCH AS HIGHWAYS,
MJD RA~CE PLANWING AND TRANSIT COORDIHATIO~ S~OULD RESIDE WITH.
THE AGENCF WHICH COORDINATES ALL TRAMSIT AND DETERMINES FUNDING.
IMPLEMEWTATION pLANNING SHOULD RESIDE WITH THE TRANSIT PROVIDER/OPERATOR
I~ COWJOWCTION WITH. THE OVERALL TRANSIT AUTHORITY.
SPECIFIC TRANSIT AUTHORITY ORGANIZATION. The alternatives for a Transit
'Authoritv *that controls the major*functions of planning, ~coordinating,
M~del:$ ~ and 4 designate the' .M~t.'ropolitan Council, "~odel 3 designates a 'new
agency, and it has been suggested the. current MTC assum~ an expanded 'role.
'Based on current data *and discussions; (a) ~t would seem that an expanded
current MTC is .unacceptable du~ to a perception that'operating vs other
func~iOns should be seperated; .(b) HNDOT is unacceptable because it is a
· Statewide agencV with a possible conflict of m~tro' vs non-metro; and (c)
Metropolitan Council is unacceptable baseu' on current .A~M policv of seperation
of area .pollcV making and anV cdnnection t~ actual service .provision. A 'do
nothing' position would continue the current fragmentation of authoritV,
responsibilitv, and accoun~ab~iitV. Finallv, a new superagencV *or Transit
aut.horitv raises questions' of appointment process, accounta, bilitw, and general.
hesitencg because of unknowns and creation of another laver of government. It
must be assun~d that an~ solution presents a problem of appointment and
acCOuntabilit~ which will be discussed' seperatelv.
THE OPTION WHICH SEEMS TO PROVIDE THE. EEWEST DRAWHAC~ ALONG WITH
THE GREATEST.FLExIBILITY TO SATISFY POLITICAL, PRACTICAL, ORGANIZATIONAL
AND PROCESS CONCERNS WOULD BE CREATION OF A SEPERATE TRANSIT AUTHORITY
AS BASICALLY DESCRIBED IN 'MODEL 3. A NEW AUTHORITY NEED NOT LOOK MUCH
DIFFERENT THAN THE CURRENT SITUATION. IT WOULD RE POSSIBLE TO UTILIZE
THE CURRENT MTC 'COMMISSION' CONSTITUTED 'AS IT IS OR EXPANDED ~O BECOME
THE MTA. IT MAY *NOT BE NECESSARY TO HAVE A FULL COMMISSION TO OVERSEE
T,~E MTC 'BUS~COHFANY' UNLESS AN OPERATIONAL '~OARD OF DIRECTORS' IS ·
FELT NECESSARY. ·
APPOINTMENT AMD AccOUNTABILITY. Local officials feel that ~re ~local input' is
needed in the appoint~nt process to gain accountability. '.
THE APPOINTMENT PROCESS SHOULD DIRECTLY INCLUDE LOCAL OFFICIAL~ IN
THE SELECT~ON PROCESS. '.
ADVISORY BOARD. Several of the models suggest an advisor~ board including local
offlcials similar to the current Transportat/on Advisorg Board.
REGARDLESS OF WHICHEVER ORGANIZATIONAL STRUCTURE IS PROPOSED OR ADOPTED,
A TAB WITH LOCAL ELECTED OFFICIALS AS SUGGESTED IN ~ODEL 2 WITH REAL
AUTHORITY SHOULD BE CREATED.
-3-
u~
ZZ
U~-
7//
U~UZU
Local Government Financing:
The Shirltails
or the
Alternatives
Given the panorama of new financing
approaches, local leaders need guidance
on various methods of financing.
By Harvey Goldman, Partner, and Sandra Mokuvos,
.'. Senior Consultant, Arthur 'Young & Co.
The decline of federally funded
programs, the tightening of fed-
eral and state purse strings, and
local concern over tax rates and user
fees have many communities seeking in-
novative financing alternatives to fund
needed capital intensive projects. What
local governments seek, professional
advisors are starting to provide.
The responses have ranged from cre2
alive applications of conventional fi-
nancing mechanisms, to relatively new
uses of leasing concepts and full-service
delivery methods such as privatization.
In some cases, private credit in the form
agreements has been used by
public sector to secure needed fi-
nancial resources.
Given the panorama of new financ-
ing approaches and resultant emergence
of new and often confusing terms de-
scribing them, local leaders need guid-
ance on various approaches to financ-
ing and providing delivery o~ needed
services. These include:
· Actions at the state government
level;
· short- and long-term financing op-
tions for local governments;
· leasing concepts;
· privatization.
An important point to note is tfi'at
often the most cost-effective project fi-
nancing method incorporates a combi-
nation of specific approaches from
within several of the above categories.
In a report prepared for Congress,
the money necessary to meet infrastruc-
ture needs through the early 1990s was
cited at $2.5 trillion to 5;3 trillion.
Among the capital intensive needs that
exist are municipal water systems,
wastewater treatment facilities, schools,
transportation networks and prisons.
According to statistics cited in the re-
port, at current expenditure levels,~less
than one-third of these needs ~vill be
met through conventional approaches.
Given the limitations~of capita/markets
to fund all the needed projects, new ap-
proaches to financing facilities must' be
developed.
As federal funds decrease, local gov-
ernments have traditionally looked to-
ward 'two places for assistance: their
state governments and their own credit
worthiness in terms of local access to
the bond market· There are traditional
and innovative alternatives available
under each of these options.
State assistance
At the state level, as less money
comes down the federal pipeline, more
responsibility for meeting statewide
needs falls to each individual state. With
an increasing fiscal burden on state
shoulders, the amount of money that
passes through to the local level will
American City & County/March 1984
continually decrease. HoweVer, the~e
are some alternatives available for com-
munities seeking local assistance from
their state governments.
Economic Development Funds -- The
purpose of these funds is to provide
state assistance to local governments or
private sponsors in the development of
projects. Assistance takes the form of
state loans, grants or below-market in-
terest rates for a portion or all Of the
costs of a local project.
General Fund Appropriations --
General use funds include property
taxes, sales tax, cigarette taxes and fed-
eral general revenue sharing funds.
Typically, these taxes and revenue
streams are dedicated for specific pur-
poses.
Direct Slate Purchase -- As an alter-
native to grants and loans, some states
buy municipal bonds for specific local
projects. Local governments benefit by
&m~rlean City & Count/March 1954
paying a lower interest rate. Another
alternative is for the state to use the
funds to pay for a portion of construc-
tion costs, take title to the project and
then sell it back to the sponsor over a
long period of time. '
Bond Banks -- A state or federal
bond bank could be empowered to issue
· bonds and notes in its own name; the
proceeds being used to purchase the
bonds and notes of local government
units, hopefully driving down the inter-
est costs by trading upon the credit of
the state or the credit of multiple rather
than individual projects. In addition,
state loan funds are also being con-
ceived. Commonly referred to as an
"Infrastructure Bank," the program
would combine state and federal grant
money and provide local government
with zero interest or low interest loans
that would eventually be repaid out of
project revenues.
Communities have traditionally used
bonds to finance construction of needed
facilities, although-in some portions of
the country "pay-as-you-go" ap-
proaches have been utilized. While pay-
as-you-go avoids interest charges by ac-
cumulating the capital requirements for
a project in advance of construction, it
· typically is limited to more affluent or
fiscally conservative arenas.
The volume of both short- and long-
term, tax-exempt debt offerings has in-
creased dramatically in recent years.
Long-term municipal debt issuance av-
eraged 5;45 billion per year between 1977
and 1981. In 1982, ]ong-terrfi financing
volume totaled 5;77 billion -- amount-
ing to a 67 percent increase in one year.
Short-term financing volume has simi-
larly risen, more than doubling from.
$21 billion in 1979 to $43 billion in
19827
Up until a few years ago, there were
relativ.eiy few options for a community
seeking to finance capital-intensive
projects with bonds, and credit worthi-
ness has always been a limiting factor.
Often, a community's ability to issue
ms is limited by a statutory ceiling
utstanding debt capacity or the
unity's credit rating is not high
enough to be competitive with other is-
sues at a given interest rate. Many
growing communities do not have cur-
rent revenues sufficient to meet debt
service requirements for the large vol-
ume of debt issuance needed for capital
projects.
While a number of new financing al-
ternatives have become available, with
them have come new problems associ-
ated with the complexities of the credit
market. Traditonal investors, banks and
insurance companies are being replaced
by money market funds and private in-
dividuals. Investors want more security
and more acceptance of risks, such as
interest rate fluctuations, by the issuer
instead of the investor.
An area that is still of concern to is-
suers is how to improve their credit rat-
ing, which has an impact on the interest
rate that will need to be offered to suc-
cessfully market the secur-ities. Finan-
cial analysts have provided local com-
munit.ies with a number of alternative
mechanisms to increase their ratings.
of municipal bond insurance
have the ability to repay debt,·
use MBI to enhance their credit rat-
ing, lower interest costs and expand
their access to the market. Prior to
marketing the bonds, an issuer obtains
an insurance policy for a one-time pre-
mium of approximately 0.6 percent to
1.5 percent of the aggregate principal
and interest due on the bonds from the
delivery date to the final maturity date.
The insurance, in effect, guarantees to
the bond holders timely payment of in-
terest and principal.
· There are several firms 'that provide
bond insurance with the American Mu-.
nicipal Bond Assurance Corporation
(AMBAC) and Municipal Bond Insur-
ance Association (MBIA) being the
most well known. Standard & Poor's
rates both AMBAC-insured and MBIA-
insured bonds as triple-A. Moody's
tends to ignore the insurance when as-
signing the rating.
Another method for a community to
improve its bond rating is to secure an
issue with a bank letter of credit. The
cost of obtaining a letter of credit is
usually an annual fee of approximately
3.4 percent to 1 ¼ percent of the amount
lores outstanding. If a letter of credit
to repay any or all of the issue,
then the obligation converts to a direct
bank loan.
These alternatives provide lower bor-
rowing costs, presently up to 500 basis
points, or 5 percent, lower than long-
32
term debt. While these alternatives usu-
ally provide lower initial costs, there are
important risks to consider. For exam-
ple, financial markets may change and
subsequent long-term borrowing costs
could be higher than if long-term fi-
nancing was initially used. An adequate
strategy to protect the issuer against this
potential risk should be developed be-
fore going forward. Some of the more
prevalent short-term financial ap-
proaches, which can later be convened
to long-term debt, include:
· Tax-exempt commercial paper; ·
Obond anticipation notes;
· variable rate demand notes.
Tax-Exempt Commercial Paper
(TECP) -- Can be used during con-
struction to allow the issuer to select a
better market for long-term financing.
TECP usually matures between 15 days
and 45 days. Additional costs associ-
ated with TECP should be given con-
sideration. These include a fee of 3A of
I percent or more for a letter of credit
and a fee of ¼ of I percent or more for
the agent who places the commercial
paper:
Bond Anticipation Notes (BAN) ~
These bonds are issued in anticipation
of a long-term bond issue. BANs typi-
cally mature in one year to three years
and are payable from the proceeds of
the long-term bond issue. Prior to the
refinancing, interest on the BANs may
be capitalized from the proceeds of the
notes or paid from revenues of the
project. The principal is payable in one
lump sum. Grant anticipation notes
(GANs) are a variation of this theme
and are used when a grant, rather than
a bond, is expected to provide long-term
financing.
Variable Rate- Demand Notes
(VRDN) -- Usually having a maturity
of two years or three years, the interest
rate on these notes fluctuates periodi-
cally with a prescribed municipal bond
market index or an alternative index
based on a major bank's prime lending
rate. As in any demand note, the holder
has the option of holding the note to
maturity or tendering the note to the is-
suer for redemption at the original par
value upon seven days notice.
LongLlerm financing
There have been a number of inno-
vative approaches and variations of tra-
ditional long-term financing methods.
General obligation bonds, revenue
bonds and special assessment bonds
have traditionally been used, but are
now being supplemented by creative
concepts to tailor repayment schedules
and renegotiation options to project-
specific and community-specific needs.
Care must be taken to ensure that the
proper long-term financing approach is
matched to the circumstances at hand.
General Obligation Bonds (GO
Bonds) ,- Backed by the general credit
and taxing authority of the issuing
agency, GO bonds are typically at
somewhat lower interest rates compared
to less conventional bonds. Their use
"draws down" a community's borrow-
ing capacity and credit standing, be-
cause they are backed by the full faith
and credit of the issuer. GO bonds are
becoming a limited source of funding
due to bond market fluctuations, inter-
est rate increases, statutory and consti-
tutional limitations on municipal debt,
and referendum requirements. ·
Revenue Bonds-- Revenue bonds are
repaid exclusively from the earnings of
a specific enterprise, e.g., a water sys-
tem, a toll road, etc., and are normally
used for capital .intensive projects,.
which generate their own revenue
streams from users served by the proj-
ect. The interest rate is generally not as
favorable as that of general obligation
bonds, although the security of the
project's revenue stream will influence
the rate. Limitations on revenue bond
issues are: 1) typical underwriters' re-
quirements that service charges be set at
120 percent to 150 percent of the level
required to meet annual debt service
costs, and 2) the capability of service
users to pay the user ~harges.
Industrial Development Bonds (IDBs)
-- IDBs are a specific type of bond used
to encourage private investment in a
particular area. A municipality, a non-
profit authority or other governmental
unit issues an IDB for a private sector
firm, which uses the proceeds of the
bond sale to build a facility. IDBs pro-
· 'vide private sector groups with tax-ex-
empt financing rates for projects.
Limitations exist on the size of the is-
sue allowable to still be eligible for the
tax-exempt status and on the types of
facilities for which IDBs can be used.
There has been recent concern about
potential abuses of the use of IDBs and
one should exercise due care when plan-
ning on their future use. Infrastructure
projects in the water, wastewater and
American City & County/March 1984
resource recovery field receive special
favorable treatment under current leg-
islation.
Special Assessment Bonds -- These
bonds are used to finance elements of a
project, e.g. the collection system of a
wastewater treatment facility, which
benefit individual properties. Usually,
these bonds are sold locally or region-
ally by the issuing political subdivision
and discharged by the individual prop-
erty owner over a five-year to 20-year
term. The issuer's taxpaying power may
or may not be pledged as additional se-
curity.
Innovative approaches
There are a number of creative con-
· cepts that have been applied in the field
of 'long-term financing. These innova-
tive, long-term bonding options in-
clude:
· Deferred interest approaches,
-- zero coupon bonds,
-- step coupon bonds;
· tender option bonds;
· floating rate bonds,
~-- floating rate bonds,
~ adjustable floating rate bonds,
--- floating fixed rate bonds.
Zero Coupon Bonds (Zeros) -- These
bonds pay no current interest coupon
and are sold at a deep discount. Inves-
tors in these bonds forego current inter-
est income for appreciation in princi~
pal. The attraction to investors is the
ability to lock in a guaranteed yield to
maturity based on the discounted price
at the time of purchase.
Stepped Coupon Bond -- Like zeros,
these bonds provide lower than normal
interest rates in the early years and
higher rates in later years. Their use can
produce a lower total debt service, be-
cause more principal is repaid earlier in
the term. The bonds attract investors
desiring an increasing rate of return. A
lower interest rate in eaHy years can
mean substantial savings on projects for
which interest is capitalized during the
construction period, because the capi-
talized interest is based on the lower
coupon rate. However, the call premi- '
urns are unusually high to offset the
investors' loss of coupon income in the
early years, making it costly to refi-
nance the debt.
Tender Option Bonds (Put Bonds) --
Having a maturity of 25 years to 30
years, these bonds also give the holder
the option to tender the bonds to the is-
suer for repayment at par value at the
end of a specified period, usually at
least three years to five years. There-
after, the option can be exercised pe-
riodically at either one-year or three-
year intervals. Because of this liquidity
feature, investors will accept signifi-
cantly lower yields on put bonds than
on standard 30-year bonds.
Floating Rale Bonds (FRBs) -- As
indicated in the name, these bonds bear
a varying or "floating" interest rate.
These are typically issued by those who
want to take advantage of current inter-
est expense savings, compared to long-
term rates. Issuers might expect interest
rates to decline in the near future,
whereas purchasers might anticipate
that rates may rise and do not want to
be locked into a fixed rate at the cur-
rent level.
Adjustable Floating Rate Bonds
(AFRB) ~ An AFRB, which functions
like a tender option bond, is a combi-
nation of the option bond and the
floating rate bond. If prior to any op-
tion date, the interest rate for short-
term bonds is higher than the coupon
rate on put bonds, it is very likely an is-
suer can expect that a large portion of
the outstanding put bonds Will be ten~t-
ered. At that time, a repricing commit-
tee will propose adjusting the rate on
· the put bonds so that the tendered
bonds can be remarketed.
Floating Fixed Rate Bonds (FFRBs)
-- Long-term floating rate financing
with the option of fixing the rate under.'
more favorable market conditions can
be obtained without the expense of re-.
funding through FFRBs. An FFRB is
issued for a maturity of 30 years to 40
years. During the floating rate period,
which can extend' to the entire term of
the bond, the interest rate floats relaiive
to a predetermined index.
Bonds with Warrants (Warrants) --
When a "warrant" is sold with a bond,
the purchaser of the bond is entitled to
buy an additional bond of the same
coupon rate at any time within a one-
year period. The investor is most likely
to exercise the option if interest rates on
alternative investments go down.
Leasing: using vs. owning
Leasing is another financing alterna-
tive available to municipalities. Leasing
is equivalent to borrowing; one borrows
physical assets instead of cash to ac-
quire the assets. Lease payments typi-
cally are a fixed obligation, just like
principal and interest payments on
· bonds.
A lease is a contract through which
an owner of property conveys the right
to use it to another party. The decision
to lease, from the perspective of the les-
see (the party to a lease agreement who
is obligated to pay the rentals is entitled
to use the property) is based on whether
it costs less to borrow the money to buy
the property or to acquire the use of the
property by leasing it. Other considera-
tions, which typically enter into the
lease or own decision, include the fol-
lowing:
-- Risk of obsolescence of the asset;
-- intended'period of use of the as-
set;
-- avoidance of restrictions accom:
partying debt financing;
-- preservation of debt capacity for
°ther needs.
In a tax-oriented lease, the potential
use of the investment tax credit (ITC)
and depreciation is transfered from the
user of the property (the lessee) to the
owner (the lessor) in return for lower
rental payments. Under the appropriate
conditions, leasing can offer advantages
to both the public and private sectors in
that the private sector is able to Use tax
benefits, and the public sector pays less
for needed property: There are numer-
ous types of leases, including:
Operating Lease -- An agreement be-
tween the lessee and the lessor for rental
of property for a specified period of
time. The lessor would probably take
certain tax benefits and be responsible
for maintenance in return for a pay-
ment of a periodic fee.
Financing Lease -- In this type of ar-
rangement, the lessee negotiates a pur-
chase with a supplier of property and
simultaneously arranges for a bank or
leasing company to buy the property.
The lessee then rents the property from
the bank or leasing company and is ob-
ligated to make periodic payments.
Sale/Leaseback -- The owner of an
existing facility or asset sells it to a fi-
nancing entity and enters into a lease
for use of the property. Because the new
owner realizes certain tax benefits, the
sale/leaseback approach may result in
savings to the user, compared to tradi-
tional financing approaches. The usage
fee covers the financing cost of the pur-
chase asset.
Leveraged Lease ~ A combination of
debt and equity is used to construct a
new facility or to obtain ownership of
an asset. The equity contributor obtains
the tax benefits of ownership and fi-
nances the bulk of the project employ-
ing tax-exempt bonds or other debt in-
struments. Leverage comes from using
a small percentage of equity, usually
about 20 percent, to acquire the tax
Circle No. 20 On Reader Service Card ~
American City & County/March 1984
bcnefit~ on thc larger value of the asset.
Levcraged leasing became a particu-
larly attractive option for partnerships
formed by municipalities and private
sector firms as a result of certain excep-
tions contained in the Tax and Fiscal
Responsibility Act of i982 (TEFRA).
Potential users of financing tech-
niques that combine leasing and tax
benefits should be wary of pending leg-
islation, which, if passed, may impose
limitations upon the use of these tech-
niques.
Privafization
'A financing and service delivery al-
ternative that combines many of the ad-
vantages of the approaches described
above is privatization. The privatization
concept is based on public/private part-
Derships. The key is that both sides
gain, but neither benefits at the expense
of the other. The private sector gets a
business opportunity, enhanced by the
use of taxx benefits. The public sector
gets a needed service at a lower cost
than otherwise possible and, if desired,
eventual ownership of the facility that
provides the service.
Certain types of projects can be con-
structed by 2_be private sector'more effi-
ciently and at a lower cost than if the
· identical project is constructed by the
public sector. This is because the pri-
vate sector does not have to abide by
the bureaucratic procedures and pro-
curement regulations of federal, state
and local funded proiects, and through
operational efficiencies realized through
economies of scale.
The private sector, pursuing a legiti-
mate "service contract" with a local
government unit, is also eligible for tax
benefits not available to tax-exempl
municipalities.. The benefits include
ACRS depreciation, tam credits and the
deductability of interest payments on
the debt used in the project financing.
When private sector cons.truction and
operational savings are combined with
available tax benefits, the lower project
costs which result can be shared with
the local community in the form of
lower user fees, while providing a fair
return on the investment to the private
sector.
While many loca] government ~ffi-
dais are still frowning over the cut-
backs in federal grants and state sup-
port for capital intensive infrastructure
projects, some see a brighter future.
Advisors to public officials are formu-
lating creative and innovative financinl~
approaches. Public officials and their
advisors are becoming familiar with
'. these alternative approaches, learning
where and when the different concepts
make sense. Equally important, they are
discovering how to blend the concepts
together to provide the most cost-cf icc-
tire form of'service delivery to the pub-
lic. []
7/7
March 20, 1984
CITY of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
TO: CITY COUNCIL
FROM: CITY MANAGER
RE:
REDESIGN PROJECT BULLETIN
Enclosed is the latest in Redesign Project Bulletins. This one is on
housing.
National Housing Policy has been in continual evolution since the first
National Housing Act was passed during the 1930's.
Like National Urban Development Policy, it has moved from "in thing" to
"in thing". Over the years, those communities and areas that have
"sophisticated" staff and meet program low-income eligibility requirements
have spawned an amazing array of projects and programs.
Fortunately or unfortunately, depending upon how you view it, your City
Manager has the urge to develop and promote the latest and "best" program
that comes along. Whether this is good or bad, time will tell.
Clearly, those that benefit like it and those that don't probably donlt,
since it's everyones tax dollars which are being used.
The "in" housing program is "Housing Allowances and the Rehabilitation
of Rental Housing". The latter of these we are moving toward implementation
this Summer. The allowance program is not yet being implemented in the
Twin Cities.
In the urban development area, downtowns are in.
What the next fad will be, time will tell. One thing for sure is that
there will be a new one.
The sad part to this evolution is, like everything else, all of this is
getting increasingly more complicated and sophisticated. That means,
only those who are interested in keeping on top of all of this can
benefit. That can be a major job in itself.
Hope you enjoy the attached memo.
JE:fc
enc.
Humphrey Institute
University of Minnesota '-"
909 Social Sciences ~",-
267 19th Avenue South --*:..
Minneapolis, Minnesota 55455
(612) 376-9855 "
Ted Ko'lderie Judy. Hauer
Project Director Associate
G
THE HOUSING PROBLEM: AFFORDIN THE RENT "-:'.-': -
In November of 1983 Congress authorized a $9.9 billion- "'-_ .~
housing package with a unique feature for low income renters. In
addition to the traditional funding that subsidizes buildings, ..
this legislation includes a demonstration program that pays a '".. .... .
share of the exorbitant rent burden borne by low income families.
With this "housing allowance" program, the federal "
government is shifting its emphasis from housing builders to
~:~.~:.~i-"~."i' ~ .... .:
housing buyers. Until now the federal role in housing was -
largely in th'e form of assistance to the "sellers" of housing--A..~ ~ i.~
those who built housing for low income people and landlords who :- . .-
rented to low income people. Subsidies were attached to the :; ......
housing unit. With an allowance program the government will-
redesign assistance to run to the household, the "buyers" of
housing.
Housing allowances allow the buyers to choose where to
live and how much to s~end, with the restriction that the housing ....
must meet quality standards set by HUD. Because the allowance is .
not tied to a particular building, the household is free to shop :
around the housing market. This 'creates an incentive for the - .
market to be responsive to the household. And the family has an_
incentive to shop prudently for housing: If the housing costs
more than the allotted allowance, the recipient pays the
additional cost; if the family selects less expensive housing the
family can reduce its housing expenses.
Housing policy has been evolving in response to changes in
housing problems. A growing consensus in the field of
housing now'views the affordability of housing as the central
-issue People are focusing their attention on enhancing tenants'
capacity to pay the rent, rather, than expanding the number of "' .....
housing units. This memo'explores the changes in our housing -:':'-:':"
problem and the redesign of housing policy resulting from them.
We are very much interested in hearing your thoughts and
reactions to this memo. We remind you th.e conclusions and
opinions expressed in this memo are those of the Public Services
Redesign Project, not those of the Institute, which does not take
positions on policy issues.
(JH 2/84)
The Hubert H. Humphrey Institute of Public Affairs
The Humphrey Institute fuses policy analysis, midcareer education for leadership, and training of your~jer students for roles in the policy process.
The Public Services Redesign Project is dedicated to creating diversity and choice, access and equity in the provision and production of public services.
2/7
~:'~""< much of the housing 'stock was.-poor~.~:.~: Legislation first targete
"',~? federal assistance t6:. n'ew'construd~:~°n"~and" t° the
-:'- of housing with the intent .to expand the housing supply - .
::~i~ ~ This traditional'L/federal'assi'st'ance' fulfills a dual mission:"-::~
-"~"J' It makes adequate housing physicall-:y'-avai'lable, that is, it.~-'.l '..~
...,, . ensures construction of low income dwelling units that might 'not' ~..-
otherwise be built. And it makes housing financially accessible
to low income households.. But'beta'use housing needs have changed
over. bime, the aim of housing affordability is gradually ' :
superseding this two-'fold mission..-~;, ...... : ..... . .'-- ' :'-
Public..Housing'kThe government's housing strategies have'
traditionally been construction-o~iented. With the United
Housing Act of 1937' Congress decided to inv'01ve government i-.
directly in the production of housing. 'Public housing is now the
largest and oldest federally supported housing program.'
As we think about th& financing, building and operation of
public housing, the extent of government involvement becomes . '.~>,.~.'
'' clear. The federal government finances and regulates the ~,'
development-of public housing; 'local" public housing auth°'rit'ies-L:'~.i'L:i:L.'-'i~,.'~i:~
.... t~- ... ar'range the development_ and construction of' the housing; new _.
units are built, in p~ojects, and 'Owned publicly; the PHA -' .....
operates and maintains the projects, partly with operating
subsidies provided bY. the fader-al 'government. i'---'-
section 236--The results of public ho'using production simply
did not.meet the ever-burgeoning demand for low income shelter.
'' There was difficulty in getting sites. There were problems with .....
projects,' per se: steering large groups of low income people
into locations carefully controlled.by local municipalities., and
in buildings where deferred maintenance often became the rule'.
The turnabout from projects is forever symbolized in the
televised taping of Pruitt-Igoe being dynamited. Public housing..'~L~'i-::
aut'horities had trouble meeting oPerating-expenses, partlY ". ---
because they maintained rents low enough to be affordable to low.
income families. -Although the government remained the provider
of low income housing, it gradually incorporated the private
sector into housing services.
Section 236 differs in that it provides subsidies for
private sector construction of multifamily housing projects,
reducing the interest rate paid by mortgagers and in turn,
lowering rents to tenants. HUD also insures the mortgages.
(Section 235 is similar except it assists homebuyers.)
Under this variation in housing strategy the federal
government still finances and regulates the development; new
projects are built, and owned privately; instead of the PHA, the
owner/landlord is resp~onsible for operati~n..and maintenance of
"' Section 8 New Construction--Enacted in the 197 Housing and-
Community Development~Act,- Section 8 continued the 'trend of
federally subsidized, but privately constructed and owned
housing. New units are built, or substantially rehabilitated, ....
on a scattered-site basis rather than on a project basis. Again,
the owner/landlord is responsible for operation and maintenance
of the building. The New Construction and Substantial Rehab
elements of Section 8 provide a guaranteed, long term rental
stream to developers who elect to build or reh@b dwelling units
under the program. State housing, agencies financed many of the
units. In some cases developers also obtain mortgage financing
from HUD through the Government National Mortgage Association,
and have HUD insure the mortgage through the Federal Housing
Administration. - .-~ ·
Section 8 Existing--Congress designed the Existing Housing
component of Section 8 for areas where the housing market was
open enough to allow cities to rely on the existing stock._ Thi~
reflects a further step in the evolving housing policy. The
program addresses housing affordability problems, not housing
supply. The federal government still-finances the program, but
existing housing, owned and operated privately is used. Local
PHAs contract with owners of existing dwelling units that meet
housing quality standards. HUD pays to the landlord the ~
difference between the tenant's rental contribution (now 30% of
adjusted income) and the actual 'rent, up to a maximum "fair
market rent" established by HUD.
By the end of fiscal year 1980 the number of publ·ic housing
units was just under 1.2 million. Section 236 accounted for
538,000 units, Section 8 New Construction and Substantial Rehab
accounted for 277,000 units, and the Section 8 Existing Housing
assistance accounted for 588,000 units.
Several other smaller scale, rental programs exist, such as
the Section 202 program which is designed to serve the elderly
and nonelderly-handicapped populations. These federal initiatives
all have had one thing in common: the direction in which the
assistance flows The aid is attached to the housing unit, not
to the household.
Section 8 Existing differs slightly in that its participants
are limited to living in those buildings whose owners agree not
to charge rents above the fair market rent established by HUD.
So although participants are theoretically free to look for
housing virtually anywhere, their choices are limited to
neighborhoods and buildings where rents qualify.
Favorable Financing Also Enhances Construction--Tax shelters
allowing apartment building o~ners to depreciate buildings in 15
years, to deduct mortgage interest and taxes from gross rental
income, to use capital gains tax advantages, and to receive these
3
benefzts on both the equity and.the-.-loan~, stlmulate.constructlon{:~-:.,~.
' - 'Large amounts' 0f'feder'~l ~0'6S'ihg''?a~sistan'c~' g°'..t~'''¥n'i~-~
and upper income families.
oriented policies. - Sinee~the~:1930s',the~'federal' gov
impacted th'e housing financiaI~'syste~"With:- a
insurance program with FHA and VA loans; long term,
mortgages; a secondary home mo'rtgage-finance progr'am
Federal National Mortgage Assoclatzon, the Federal Home Loan.... - -
Mortgage Corporation,- and- the 'Government: National -Mortgage.~..- ..... .':'-
Association; and the deduction of home .mortgage interest.-and~.
local property taxes from federal income taxes. ~The ..
Congressional Budget Office estimated the tax revenue loss-from.
'mortgage interest 'and Property 'tax' dedUctions at-about $29..~
billion for' 1981. -These prograi~s'gene~aily stimuiate ConstrUcti'on~".~:i~'~.~i~i
Availability. and Acc'~ssibility with Minimal ConStruction
Other strategies increase the availability and accessibility
of housing without relying on hew construct'ion. In the Twin-
Cities region a mismatch is evolving between the size of.the - ~..i.~.,>~ .
families in need of'housing and the siZe of the available'.~
housing. A 1982 Citizens League Study'reported that in
Minneapolis, the same number.and type' o'f-housing units -in[] 978
housed 60,000 fewer people than"in~1970:~-' According 'to the ~-'~ ....
Metropolitan Council. the metro area's' household size declined:
from 3.16 to 2.65 persons per housing-unit from 197'0 to 1980, and
-it is projected to decline still further. '.'
AlthOugh new housing construction is still needed, the
trends in household size and occupancy indicate we currently have
housing units that are simply-used inefficiently. This situation
arises when parents_ find themselves" living alone in a three-
bedroom house after their children move out. Or when a spouse
dies and the widow(er) remains in the same living space.
The"bigges% near-term demand 'for'~housing in the Twin Cities-.'
Metropolitan. Area' will 'be by families'needing two- and three~'!'' ~.~-:.~'[J'"
bedroom housing units acc°rd'lng to Metropolitan' Council ~--~ ./:':'~'~,
estimates. Over 355 of the housi'ng units needed by 1987 will be
three-bedroom and.another 32% will be two-bedroom. As of the
1980 census the metropolitan community occupied about 208,000
two-bedroom units and about 240,000 three-bedroom units.
According to the Metropolitan Council there is also a
sizable population of young people in their 20's who will be
searching for housing in the 1980's. This group is estimated to
create a significant but temporary demand for ~ental housing
that will decline at the end of the decade.
The demand for multiple bedroom units does not necessarily
mean we 'need to construct that many more new buildings. An
increasing share of the housing market is being met through the
reuse of existing structures; over'2~% of-the housing
across the country .from 1973 to' 1980 came from additions other
than new construction (such as loft renovation and older home-..-
cohversion). Before 1973, only 10%.came from such conversions.-
Indirect Production--Attempts' {0 r~medy the inefficient use~ ....
of housing increase the availability'and affordability of housing
units. One such attempt is the use of "accessory apartments". -
'An accessory apartment is a self contained rental unit created
within what was originally a single-family dwelling.. Without
constructing an entirely new house~ accessory apartments open up
more living space. Homeowners who might take advantage of adding.
accessory apartments are elderly people who want to stay in their
homes but can not afford the rising costs of upkeep; single
parents who need extra income or young coupies who need rental
income to help finance their single-family home~ or homeowners
making arrangements to house elderly relatives or adult children.
The Minnesota Housing Finance Agency is offering a ~ ~ .~
demonstration' low-interest-rate loan program for homeowners who'
want to create an accessory-apartment in their home. With MHFA
funds the' Metropolitan Housing and Redevelopment Authority at the
Metropolitan Council' awarded the first of these loans for an
accessory unit to a homeowner in Lexington last November.
There are approximately 25,000 single-family homes in areas~'~
zoned for higher density units within Minneapolis and St. Paul.
Adding accessory apartments to these homes is expected to be less
expensive than building new apartment units, would maintain the
character of the neighborhoods (since they are already zoned for
two-family residences), and would allow for relatively easy re-
conversion to a single-family residence should the future need
for accessory apartments decrease.
Another attempt to remedy the' inefficient use of housing
units is the concept of "rollover housing." This tactic
indirectly produces housing for large families: new units 'are
built to entice those smaller households currently living in
large homes into smaller, more suitable living quarters, thus
opening up the larger dwelling units for families needing the.
additional bedroom space. Successful rollover housings, proposals
use financing assistance to help the first,time homebuyer.
The city of Brooklyn Center developed Brookwood Residences
as part of a rollover housing project. Its design resulted from
a market analysis which revealed what features the potential
customers wanted. The development is designed to attract elderly
residents, both homeowners and renters. It is located in the
same neighborhood where many of its potential customers now live
and is near stores, medical facilities, a bus route and a park.
Amenities like garden plots, a workshop, a community room, an
exercise room and underground parking are available. No
neighborhood opposition to the development arose because from the
project's beginning, the city and the citizens committee under
the direction of local resident Duane Om, took care to solicit
5
input from neighborhood residents; ~-~!'-"'"'~-~'"~'~"?~'~"'~
The new develo ment should ~ttr~ct those older'-resxdent's-wh~.
are .still healthy'and like.the community, b~t prefer.'living~i~'~'
smaller ~nits less maintenance.. The larger.~
Mortgage money with lowered interest'~'rates is avail~bl'~ bot'~-.~O~~~'~
. . ~ . ' . "' , ~ ~ · : ' ~ ~ - -
A local ho~sxng ~assoc~atxon, Common Space, xs-us~ng a
share-loan' financing 'tool to finance cooperativ~ ho~sing for
incOme households. They take o~t~a second mortgage on the~'~-~.~
cooperatively owned build'ins, car.ye it up into "apartment-sized"
shares, and loan it to' people moving into the building. This
arrangement targets money to the neediest households.
' Increasing the Av.ailabilitY°f~ UnitS--Other
strategies ex~st to. ~ncrease the availability or housing.
such option is.simply, renting~0ut.-sp~e~
that currently have empty bedrooms. A simila~r strate haSr. gy .
elderly people sharing their homes with younger people who
place to live. Luth'eran Social SerViCes. of Minnesota sponsors
program called Share-A-Home which for a small fee matches an
older resident living 'in a single-family home with a younger.. -'~
person needing a place to stay. Many times the younger' live-i'n'.
receives accommodations in exchange for helping the homeown '~
w~th chores;- --..~.. ~
Another po~ble ~tr~teg7 to ~noKe~e the
l~v~n~ ~p~ees wou~d utilize ~truetures now ~t~nd~nR v~o~nt.- A~
or the 1980 oen~us over .1~700 rent~ housing un~t~ ~n the Twin
C~t~e~ ~re~ h~d been v~o~nt for at ~e~t ~x months. ~ny v~o~nt
bu~d~n~ require ~t least eosmet~o work to m~ke them ~v~b~e.
Making the Available units Financiall~ Accessible
Increasingly the real problem associated with housing the
nation's low income is to make"the housing that does exist and is
on the market more affordable~ and more financially accessible ....
The programs that construct new loW-income units have laudable -:'.
goals for those regions with housing shortages. However, in a- ..-.
growing number of .areas theY now represent solutions to the wrong
problem.
Deficient housing is no longer the problem it once was.
Overcrowded conditions and housing with incomplete facilities
have declined steadily since the 1940s. The 1977 Annual Housing
Survey reported that 97% of all occupied dwellings in the country
had complete bathrooms and kitchens, hot and cold running water,
and electricity. Only 5% were overcrowded. Even though
inadequate housing tends to be more common for very low income
families, the number of such families with inadequate housing is
about on'e-fourth the number with affordability problems.
Excessive rent burdens afflict-iow.income families hardest.
Almost one fourth of the very low income households pay more than.~
half of their income for adequate housing, according to the 1977
Annual Housing Survey. And over 50% of the very low income
households pay more than 30%.of their income towards housing.
Allowances Improve Accessibility
Because the problem in housing has substantially
shifted toward how to afford housing, the policy response should
be to bring the low income households into the range where they
are paying an appropriate rent burden. Housing allowances do
that. Allowances are cash payments for low income families
to pay for decent housing that they obtain from the privat, e
market through their own efforts.
The allowance pr°gram operates on a co-payment arrangement:
An eligible family pays..a portion of its housing costs and .
receives a subsidy for the other portion, usually the difference
between 30% of the family's income and a rent payment standard
set by HUD (adjusted for the area and type of unit rented.)
Households must agree to housing inspections that ensure the
units meet health and safety conditions.
As with the other housing programs, government finances the
allowances; however, the allowance program uses existing housing
stock, on scattered-sites; and it is up to the occupant to-
arrange to have the dwelling meet quality standards, or find
other housing.
Housing allowances offer the household a free choice of
vendor arrangement; the family can choose where to live and how
much to spend on housing. If the family shops around for less
expensive living quarters it pays less out of its own pocket on
housing; conversely if the 'family desires more expensive
accommodations it pays any rent above the allowance amount.
This choice arrangement is key to the incentives for
improved performance on the part of the vendor. When customers
have the option to leave a vendor and seek other competitors,
they create incentives for the vendor to work to retain his
customers and increase revenues.
Similarly,' the G.I. Bill uses the free choice of vendor
concept in the way it finances education for veterans. Colleges
and universities must attract the students. The veterans select
whichever educational institution best 'meets their needs. Then
the VA sends a monthly check to the student to cover some part of
the school costs. If students dislike the quality of the
education they receive they may spend their school dollars at a
different institution.
A housing allowance proposal relies on an open, functioning
market. Discrimination in housing restricts accessibility just
as seriously as affordability can. Without continuing efforts to
'combat discrimination, a free choic~ of vendOr system 'is
misleading. ~ -'~- ...... ~-'.~,~.~? -. '~ ·
AnY public system of prqduction is limited by its physical
system; hospital care .for veterans, is limited to the number of VA
hospital beds available. .The traditional government housing .
programs face the physical constraints of a limited number of
available housing units. Allowing the client a free choice of
vendor anywhere in the community opens up a much wider market of
housing; the physical limits to capacity ~no longer exist.- An
allowance system must therefore, ration its finite aid among
potential program participants through eligibility restrictions.
The Experimental Housing Allowance Program
Back in 1971 the U.S. Department of-Ho~sing and Urban
Development began a decade-long housing allowance experiment.
The Rand Corporation conducted the supply .component of the ~ -~
experiment, looking at the market and communi, ty effects of ....
housing allowances. -i . _~ -~
Rand operated the experimentai program~in two contrasting
housing markets. 'Brow~ County, Wisconsin was a metropolitan area
with a growing urban center, Green Bay. Its housing stock was
relatively new and in good condition; vacancy rates were low and
property values high. St. Joseph County in Indiana was an area
with a declining urban center, ~South Bend, and a segregated
minority population.- Besides its declining urban population
there was a price-dePressing surplus of older homes in the
central city. Rents for .comparable dwellings were equivalent for
the two different sites ....
To be eligible for housing allowances households could not
receive other federal housing assistance. A family's net assets
were limited to $32,500 for elderly hou.seholds.and $20,000 for
others (adjusted after 1978 to reflect changes in the consumer
price index.) Only 10% of the households authorized for
assistance could be one-person households.
After. determining a ~ousehold's eligibility, the Housing
AlIowanee Office (HAO) set the.f, ami~y's~ho.using allowance-i
according to its income level and the standard cost of housing in
the area. A typical renter family in Brown County had an
adjusted gross income of $3,551. during the second year of the
program; 25% of the income was subtracted from what the HAO
determined to be the cost of adequate h.ousing in the community.
This amounted to an allowance of. about $925 a year, or $77 a
month. The allowances took into account income and family size
so that larger payments went to lower income and bigger families.
Then families had a free choice of vendor; they could use
the allowance on any housing that met the quality standards.
Rather than a housing program administrator, the family, decided
how muc~ housing it would consume and where to live. They paid
for any rental~costs over the amount of the subsidy and paid less
out of their own p0ekets if they eh0se housing with lower rents., "
The units, were sub3e~t to regular inspections to ensure quality
standards; if the housing failed the inspection the family either
had to repair the defect (or. negotiate with the landlord for the
necessary repairs) or find dlfferent housing that met the standards.
Results of the Housing Allowance Experiment~
Housing allowances made housing more financially accessible.
Before receiving the allowance, eligible families spent excessive
shares of their ad3usted incomes on housing; renters paid an
average of 66% of their incomes on housing and homeowners paid an
average of 53%. With the help from the housing allowances, renters' '
and homeowners' housing expenditures declined to an average of
38% and 36% respectively of their adjusted gross incomes.
Instead of ensuring subsidies for~a fixed number of dwelIing
units the program helped lOw.income families meet the cost 'of
decent living quarters. ._ ' ' . ...... ~ _
The allowance program did not exorbitantly drive up housing.
prices as a result of increased demand, as some feared it would.
Renters increased their consumption of housing services 8%, but
. the price of those services inCreased-only 2% for allowance
recipients, and not at all for others. Comparatively, in the
early years of the Section 8 Existing .Housing program, rent
~ prices increased an average of 26%. _. ~-~
" Administrative costs for the allowance Program were
relatively., low. Rand estimated that 85% of each dollar directly
benefited the participants, with most of the remainder going to
program administration.. In the public housing and Section 8
Existing programs, only 34% and 57% respectively of the program
dollars directly benefited participants.
Moreover, it was administratively, easy to accommodate
households whose eligibility fluctuated; the subsidy checks easily
increased or decreased depending on household circumstances, with
little di. sruption to the family in its home, and sizable savings
in terms of t'he subsidies~
The program required households to live in "decent, safe, and
sanitary" housing. After households enrolled, the HAO inspected
the dwellings against standards for health and safety conditions,
sufficient living space, and basic facilities. With the housing
allowances as incentives, about 60% of the renters arranged to
repair their houses, 20% moved and abou.t 20% simply dropped out
of the program; about 80% of the homeowners repaired their homes,
and about 20% dropped the program. Overall, about 80% of the
households that enrolled eventually qualified for payments.
Many of the violations of the housing standards were
inexpensive to repair. The average amount spent on the repairs
needed to bring the house up to program standards was about $100.
Most defects were repaired by nonprofessional labor; owners and
their friends did four-fifths of the work on owner-occupied
dwellings; renters/and. their friends did over-half the '~ork on~--~?..','
rented dwellings, and their 'landlords did most of the rest.' .... ~.----
.-_ ..
About one fourth of the'repairs were done completely-with --..-~:.
materials on hand and unpaid .labor.- .._
There was virtually no neighborhood resistance to 'the. '-
program. -~ ~ ~ - ' - . ....
Allowances as a Housing Strategy .-__..'.. '- '- .~...~
The housing allowance experiment spanned a time period
during which we had several presidential 'administrations, of both
parties. Its results came in at ~bout the same time
federal government began substantial cutbacks in many domestic
programs.- The 1981 President's Commission on Housing reviewed
the results-of the experiments and' recommended that housing....-
allowances become_the main-form 0f ~federal housing assistance.'--<
Congress passed the-Housing and Urban-Rural Recovery_ Act_of
last November, which included a $242 million authorizatiOn
demonstration housing allowance program. The program will fund
over 15,000 allowances for five years. (The FY84 housing
allowance appropriation received approval last summer, prior to
the authorization.) -~ -- . - -
Among the recommendations by the President's Commission on
HoUsing was the suggestion that the--federal government' get 'out of
housing production programs except in regions with actual 'housing'
shortages~ In addition to the growing consensus that housing
affordability is now the main problem, many believe government' '-
simply can nOt afford to-continue the long-term subsidies for
construction. Although it authorizes money for development~ t'he
housing law repeals Section 8 New Construction and Substantial
Rehab beginning in FY84, except for the 202 program which funds
housing for the elderly and handicapped.
Specific amounts for fiscal year 1984 earmarked in the
authorization legislation include $1.290 billion for public
housing, $2.217 billion for Section 8 Existing housing, $540
million for Section 8 moderate rehab, and $350 million for a
new rental housing supply program.
The allowance idea faced opposition from housing' p~oducers
wanting subsidies run through the producer side. In a kind of
ingenious compromise worked out. in the legislation the allowance
program will be tied to the assistance for the rental housing
grant program, known as Section 17 in the new law.
Locally, St. Paul and Minneapolis are reviewing the Section
17 program regulations to determine whether they will apply for
the construction funds. Minneapolis' Community Development
Agency and St. Paul's Public Housing Authority would then be
responsible for administering the housing allowances to the
dwellings' residents or displaced tenants.
Whether or not we see housing allowances used in Minnesota
depends in part on.which communities qualify for and are
interested in the rental rehab grants of Section 17..
Approximately two-thirds of the 15,000 allowances are tied to
this rehab program. (Although the household will have a free
choice of vendor PHAs will pay the allowance subsidy directly to
landlords, for ease of administration.) To be eligible for the
$150-million rental rehab grants in FY84, cities must meet HUD
guidelines regarding 1) a low-income renter population, 2)
overcrowded rental housing, and 3) extensive physically
inadequate housing.
As a method of rationing the allowances tied to these rental
rehab grants, only families with incomes below 50% of the median
income will be eligible. Priority will be given to families now
occupying substandard housing, those involuntarily displaced by
the construction~projects, or those paying more than 50% of their
income towards housing. ~ In light,of limited program dollars,
some eligibility.requirements such as these arc'necessary'to
restrict the number of~program participants.
The remaining one-third of the allowances are to be part of
a freest~anding voucher experiment. HUD designed this controlled
experiment,for an effective comparisG_n between allowances and
Section 8· certificates; the two subsidies, will be administered at
the same time by local.PHAs. HUD will select 10 sites to test
variety of geographical locatiOns ~nd housing markets. The Twin
'.Cities are one of the sixty or so areas being considered.
Housi'ng Assistance' for. the Future'
Given current trends, allowances will play a lar.ger role in
the ~ federa l government's policy toward housing low-income people.
In the administration's 1985 budget proposal, the allowance
program is significantly expanded, up to 87,500 new allowances.
This would replace further growth in the Existing Housing
component of Section 8.
A common fear about''any proposal that funds users is
that some'eligible people simply would not have the information
base. or ability necessary to find their own housing and best use
the allowance. But' in effect the existing information network
would not have to change. PHAs would still administer~the
subsidies, as under Section 8; they would explain the allowance
program as they now explain the existing programs. The
information and referral services that today assist people in
need of housing could help allowance r.,ecipients in the same way.
Those households lacking the requisite capacities to locate
housing in the private market still have the option to aPply for
public housing, just as they do today. Moreover, R@nd's housing
allowance experiment showed that only a very few people who
applied to the program could not cope with it. Of the 20% or so
of the eligibles who did not go on to receive allowances, most
were households making conscious decisions that the trouble
involved with moving or repairing their place was not worth the
11
allowance they
Some areas of the country still need additional housing
unit's. Allowances will do little to increase the availability
low income housing, stock in those places. 'But increasingly th'e
housing problem for low-income people- is~ affording the rent and
the focus of housing policy will be on devices like the housing
Acknowledgements '
We would like to thank those people who answered our
questions and. shared .their ideas on housing policies, including
Dan Alesch who worked for Rand on the housing assistance supply
experiment in Green'Bay; Nancy Reeves, Housing Department :.
Director at the Metropolitan Council; Phil Cohen and Mike
Quaranta of 'Senator Durenberger's staff; Jim Solem and staff of
the Minnesota Housing Finance Agency; and members of the
Minneapolis Community Development Agency, the St. Paul Department
of Planning and Economic Development and St. Paul's Public
Housing Authority. Valuable written material included Rand's_
executive summary, Experimenting with Housing Allowances; James
P. Zais, et al, Housing Assistanc~r Older Americans; The
~eport of the President's Commission on Housing; as well as
various reports on the 1983 law from ~usin~ & Development '
Reporter, Housin~ Affairs Letter, and the Low Income Housing
~nforma~'ion Servi~
MINNESOTA CHAPTER
12TH FLOOR * CITY HALL ANNEX · 25 W. 4TH ST. · ST. PAUL, MN · 55102
March 12, 1984
TO: Mayors, Council Members, Planning Commissioners,
Planners, Interested Parties
On behalf of the Minnesota Chapter of the American Planning Association, I want
to extend this personal invitation to you to attend the 1984 national conference
of the American Planning Association, May 5 to 9. This year's conference will
be held at the Hyatt Regency Hotel in Minneapolis.
The national conference offers us a unique opportunity to showcase our Metropolitan
Area and state to a national audience.
The national APA organization selected the T~in Cities for this year's conference
in large part because we have used planning fully and in some novel ways to bring
about the kind of communities we have wanted.
The national conference will focus on how we do things in the Twin Cities. There
will be a full schedule of workshops at the hotel, plus 26 field trips (mobile
workshops) to see first hand the results of planning here and to talk to the
people that made it happen.
In addition, this year's conference will cover developments in p~anning nationally,
the planning experience in Canada and the role of computers and telecommunications
in planning. Several "get acquainted" receptions are also planned.
I can assure you that your attendance at the c~nference will be well worth the
investment. And by participating, you can play an important part in helping our
9uests feel welcome here.
The registration fee'is $250, if paid before April 6. But check with your city.
They may have already taken care of registration.
For more information about the conference, call me or A1Lovejoy at 292-1577.
I look forward to'seeing you there.
Cordially,
,Ya.~es J. Beq~us
PWesi dent
Minnesota Chapter of the American
Planning Association
JJB/lle
RUDY PERPICH
GOVERNOR
~TATE OF MINN. E~OTA
OFF1C_,E OF TI-IX GOVEK'~OI~
ST. PAUL 55155
Dear Local Government Official:
The 1984 Legislative Session is well underway 'with a number
of issues of concern to local and metropolitan officials.
Plans are still on course for an April 20th adjournment
which means that many of these key issues will be decided in
the next few weeks.
Governor Perpich would like to meet with metropolitan area
local officials to discuss these'issues along with such
items as the new Metropolitan Council Chair, metropolitan
governance, transit, etc. and whatever else concerns you.
As a result, we have set up a meeting on Monday, April 2
from 8:00-9:00 A.M. at the Transportation Building cafe-
teria. The setting and meeting will be very informal with
coffee and rolls being served. We hope you can take time
from your busy schedule to take advantage of this oppor-
tunity to meet with the governor. We hope further'to have-
several members of the governor's cabinet available also.
Please call my secretary at 296-0037 to give us an approxi-
mate headcount if you can attend. Thank you.
Sincerely,
AN EQUAL OPPORTUNITY EMPLOYER
~80S